Senate Study Bill 1171 - IntroducedA Bill ForAn Act 1relating to the issuance and suspension of motor vehicle
2registrations and certificates of title.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 321.30, subsection 1, paragraph d, Code
22023, is amended to read as follows:
   3d.  That the registration of the vehicle stands suspended
4or revoked, or the person applying for registration is
5prohibited from registering a motor vehicle,
for any reason
6as provided in the motor vehicle laws of this state, except
7that the department and the county treasurer shall not refuse
8registration and issuance of a certificate of title or transfer
9of title as provided in section 321A.5 or 321A.17, or in
10accordance with rules adopted by the department
.
11   Sec. 2.  Section 321A.5, Code 2023, is amended by adding the
12following new subsection:
13   NEW SUBSECTION.  5.  Notwithstanding any provision of this
14section to the contrary, the department and a county treasurer
15shall not refuse registration and issuance or transfer of a
16certificate of title to a person required by this section to
17deposit security, but the registration, once issued, shall be
18immediately suspended and the suspension shall remain in effect
19unless and until the owner deposits security in accordance with
20this section.
21   Sec. 3.  Section 321A.17, Code 2023, is amended by adding the
22following new subsection:
23   NEW SUBSECTION.  10.  Notwithstanding any provision of this
24section to the contrary, the department and a county treasurer
25shall not refuse registration and issuance or transfer of
26a certificate of title to a person required to give and
27thereafter maintain proof of financial responsibility under
28this section, but the registration, once issued, shall be
29immediately suspended and the suspension shall remain in effect
30unless and until the person gives and thereafter maintains
31proof of financial responsibility as required by this section.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35Under current law, the department of transportation (DOT)
-1-1or a county treasurer is required to refuse registration and
2issuance of a certificate of title or transfer of title for a
3motor vehicle if, among other reasons, the registration of the
4vehicle stands suspended or revoked for any reason as provided
5in the motor vehicle laws of this state.
   6The DOT is required to suspend a vehicle registration for
7a variety of reasons. Among other circumstances, under Code
8section 321A.5, the DOT must suspend a registration within
960 days after receiving a report of a motor vehicle accident
10within this state which resulted in bodily injury to, death
11of, or damage to the property in the amount of $1,500 or more
12of, any one person. Under Code section 321A.17, the DOT
13is required to suspend the registration of a person who is
14convicted for a violation of Code chapter 321J (operating while
15intoxicated), whose driver’s license was suspended or revoked,
16or who forfeits bail after operating while intoxicated. The
17registration remains suspended until the person gives and
18maintains proof of financial responsibility. The proof of
19financial responsibility must include one of a list of options,
20including form SR-22, pursuant to the DOT’s administrative
21rules.
   22In such circumstances, this bill requires the DOT and
23a county treasurer to issue a registration for a vehicle
24and, if registration is issued, requires the DOT or a county
25treasurer to immediately suspend the registration, unless
26the person deposits security in accordance with Code section
27321A.5 or gives and thereafter maintains proof of financial
28responsibility in accordance with Code section 321A.17, as
29applicable.
   30A person who operates any motor vehicle upon the highways
31if the certificate of title has been canceled, or while
32the registration is suspended or revoked, commits a simple
33misdemeanor punishable by a scheduled fine of $135.
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th/ns