House File 606 - Reprinted
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 514)
(SUCCESSOR TO HSB 97)
(As Amended and Passed by the House April 8, 2015)
A BILL FOR
1 An Act establishing a motor vehicle insurance verification
2 program, establishing fees, and including penalty and
3 effective date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
HF 606 (4) 86
ns/nh/md
PAG LIN
1 1 Section 1. Section 321.11, subsection 3, Code 2015, is
1 2 amended to read as follows:
1 3 3. Notwithstanding other provisions of this section to the
1 4 contrary, the department shall not release personal information
1 5 to a person, other than to an officer or employee of a law
1 6 enforcement agency, an employee of a federal or state agency
1 7 or political subdivision in the performance of the employee's
1 8 official duties, a contract employee of the department of
1 9 inspections and appeals in the conduct of an investigation, or
1 10 a licensed private investigation agency or a licensed security
1 11 service or a licensed employee of either, if the information is
1 12 requested by the presentation of a registration plate number.
1 13 However, the department may release personal information to the
1 14 department's designated agent for the purposes of chapter 321B.
1 15 In addition, an officer or employee of a law enforcement agency
1 16 may release the name, address, and telephone number of a motor
1 17 vehicle registrant to a person requesting the information by
1 18 the presentation of a registration plate number if the officer
1 19 or employee of the law enforcement agency believes that the
1 20 release of the information is necessary in the performance of
1 21 the officer's or employee's duties.
1 22 Sec. 2. NEW SECTION. 321B.1 Short title.
1 23 This chapter shall be known and may be cited as the "Motor
1 24 Vehicle Insurance Verification Act".
1 25 Sec. 3. NEW SECTION. 321B.2 Definitions.
1 26 As used in this chapter, unless the context otherwise
1 27 requires:
1 28 1. "Database" means the motor vehicle insurance verification
1 29 database created under this chapter.
1 30 2. "Department" means the department of transportation.
1 31 3. "Designated agent" means the third party with which the
1 32 department contracts under section 321B.3.
1 33 4. "Financial institution" means financial institution as
1 34 defined in 18 U.S.C. {20.
1 35 5. "Motor vehicle" means motor vehicle as defined in section
2 1 321.1.
2 2 6. "Program" means the motor vehicle insurance verification
2 3 program created under this chapter.
2 4 Sec. 4. NEW SECTION. 321B.3 Motor vehicle insurance
2 5 verification program.
2 6 1. A motor vehicle insurance verification program is
2 7 created within the department to be administered by the
2 8 department. The purposes of the program include all of the
2 9 following:
2 10 a. To establish a motor vehicle insurance verification
2 11 database to verify compliance with the requirements of section
2 12 321.20B.
2 13 b. To assist in reducing the number of uninsured motor
2 14 vehicles on the highways of the state.
2 15 c. To assist in increasing compliance with motor vehicle
2 16 registration requirements and for other law enforcement
2 17 purposes.
2 18 d. To assist in protecting the bona fide security interests
2 19 of financial institutions in motor vehicles.
2 20 2. The department shall contract with a third party to act
2 21 as the department's designated agent for administration of this
2 22 chapter for a period of four years. For the period of the
2 23 contract, the designated agent shall establish and maintain a
2 24 computer database containing the following information:
2 25 a. Information provided by insurers under section 321B.5.
2 26 b. Information provided by the department under subsection
2 27 5.
2 28 c. Any other information provided by the department pursuant
2 29 to this chapter.
2 30 3. The database shall be developed and maintained in
2 31 accordance with guidelines established by the department by
2 32 rule to allow authorized state and local law enforcement
2 33 agencies and financial institutions to efficiently access the
2 34 records of the database, including reports useful for the
2 35 implementation of this chapter.
3 1 a. Database reports shall be in a form and contain
3 2 information approved by the department.
3 3 b. Database reports may be made available through the
3 4 department's internet site or through other electronic media
3 5 if the department determines that sufficient security is
3 6 provided to ensure compliance with the provisions of this
3 7 chapter regarding limitations on disclosure of information in
3 8 the database.
3 9 4. At least twice monthly, the designated agent shall do the
3 10 following, using information provided by the department:
3 11 a. Update the database with motor vehicle insurance
3 12 information provided by insurers in accordance with section
3 13 321B.5.
3 14 b. Compare all current motor vehicle registrations against
3 15 the database.
3 16 5. On or before the seventh day of each calendar month, the
3 17 department shall provide the designated agent with the make,
3 18 model, year, and vehicle identification number of each vehicle
3 19 in the department's motor vehicle database, and the name and
3 20 address of each person listed on each vehicle's registration.
3 21 6. The department shall adopt rules in accordance with
3 22 chapter 17A establishing procedures for using the department's
3 23 motor vehicle database for the purposes of administering and
3 24 enforcing this chapter.
3 25 7. a. The designated agent shall archive database files at
3 26 least semiannually for auditing purposes.
3 27 b. The department shall audit the program at least annually.
3 28 The audit shall include verification of:
3 29 (1) Billings made by the designated agent.
3 30 (2) The accuracy of the designated agent's matching of
3 31 vehicle registration records with insurance data.
3 32 Sec. 5. NEW SECTION. 321B.4 Enforcement of financial
3 33 responsibility requirements ==== penalty.
3 34 1. If records in the database indicate that a registered
3 35 motor vehicle is not covered under an owner's policy of
4 1 liability insurance for three consecutive months, at the
4 2 direction of the department, the designated agent shall provide
4 3 notice by first=class mail to the owner of the motor vehicle
4 4 that the owner has fifteen days from the date the notice was
4 5 mailed to provide one of the following:
4 6 a. Proof of financial liability coverage as defined in
4 7 section 321.1, subsection 24B.
4 8 b. Proof that the owner is exempt from the requirement to
4 9 maintain proof of financial liability coverage under section
4 10 321.20B.
4 11 2. If, after fifteen days, the owner of the motor vehicle
4 12 fails to provide satisfactory proof of financial liability
4 13 coverage, the designated agent shall provide a second notice
4 14 by first=class mail to the owner of the motor vehicle allowing
4 15 the owner an additional fifteen days from the date the second
4 16 notice was mailed to provide the information requested under
4 17 subsection 1.
4 18 3. a. The designated agent shall update the database
4 19 regarding each notice sent to a motor vehicle owner under
4 20 subsections 1 and 2, indicating the information provided by the
4 21 motor vehicle owner or the owner's failure to provide proof of
4 22 financial liability coverage, as applicable.
4 23 b. If the owner of a motor vehicle provides proof to the
4 24 department or the designated agent that the owner's motor
4 25 vehicle is covered by an acceptable form of financial liability
4 26 coverage described in section 321.1, subsection 24B, paragraph
4 27 "b", "c", or "d", the information shall be recorded in the
4 28 database.
4 29 4. a. If the owner of a motor vehicle fails to provide
4 30 proof of financial liability coverage following receipt of the
4 31 second notice under subsection 2, the designated agent shall
4 32 notify the department, and the department shall revoke the
4 33 registration of the motor vehicle.
4 34 b. The department shall provide to the owner of the motor
4 35 vehicle appropriate notice of the revocation, order the owner
5 1 to surrender the registration plates and registration receipt
5 2 for the vehicle to the county treasurer, advise the owner of
5 3 the legal consequences of operating a vehicle with revoked
5 4 registration and without financial liability coverage, and
5 5 instruct the owner on how to reinstate the vehicle registration
5 6 once the owner has obtained financial liability coverage for
5 7 the vehicle.
5 8 5. a. A person shall not provide a false or fraudulent
5 9 statement to the department or the department's designated
5 10 agent in regard to proceedings under this chapter.
5 11 b. In addition to any other penalties, a person who violates
5 12 paragraph "a" is guilty of a simple misdemeanor.
5 13 6. A revocation of registration under this chapter is in
5 14 addition to any other penalty imposed by law. This chapter
5 15 does not affect other actions or penalties that may be taken or
5 16 imposed for a violation of section 321.20B or other law.
5 17 7. a. A registration that has been revoked under this
5 18 section shall not be reinstated and a new registration shall
5 19 not be issued to the holder of the revoked registration until
5 20 the person does all of the following:
5 21 (1) Pays to the department an administrative reinstatement
5 22 fee of one hundred dollars, in addition to any other penalty
5 23 imposed by law.
5 24 (2) Complies with the requirements of section 321.20B and
5 25 this chapter.
5 26 b. Reinstatement fees collected under this subsection shall
5 27 be retained by the department as repayment receipts as defined
5 28 in section 8.2 and shall be used exclusively to offset the
5 29 costs of administering the program, including payments made by
5 30 the department to the department's designated agent.
5 31 Sec. 6. NEW SECTION. 321B.5 Motor vehicle insurance
5 32 reporting ==== penalty.
5 33 1. a. Except as provided in paragraph "b", each insurer
5 34 that issues a policy to a motor vehicle owner in this state
5 35 that includes motor vehicle liability coverage, uninsured
6 1 motorist coverage, underinsured motorist coverage, or
6 2 personal injury coverage shall, on or before the seventh
6 3 and twenty=first days of each calendar month, submit to the
6 4 department's designated agent a record of each motor vehicle
6 5 insurance policy that was issued by the insurer and in effect
6 6 for a vehicle registered or garaged in this state as of the
6 7 date of the previous submission.
6 8 b. An insurer is not required to provide a record of a motor
6 9 vehicle insurance policy under paragraph "a" if the policy
6 10 covers a vehicle that is registered under chapter 326.
6 11 c. This subsection does not preclude more frequent
6 12 reporting.
6 13 2. A record provided by an insurer under subsection 1,
6 14 paragraph "a", shall include all of the following:
6 15 a. The name, date of birth, and driver's license number, if
6 16 the insured provides a driver's license number to the insurer,
6 17 of each insured owner or operator, and the address of the named
6 18 insured.
6 19 b. The make, year, and vehicle identification number of each
6 20 insured vehicle.
6 21 c. The policy number and effective date of each policy.
6 22 3. An insurer shall provide the information required under
6 23 this section via electronic means or via another means the
6 24 designated agent agrees to accept.
6 25 4. a. The department may assess a civil penalty of not more
6 26 than two hundred fifty dollars for each day an insurer fails to
6 27 comply with this section.
6 28 b. If an insurer shows that the failure to comply with this
6 29 section was inadvertent, accidental, or the result of excusable
6 30 neglect, the department may waive the civil penalty.
6 31 c. An insurer that discloses records to the department's
6 32 designated agent in a reasonable, good=faith effort to comply
6 33 with the requirements of this section shall not be subject to a
6 34 civil penalty under paragraph "a".
6 35 Sec. 7. NEW SECTION. 321B.6 Disclosure of database
7 1 information ==== penalty.
7 2 1. Information provided to the designated agent and
7 3 information contained in the database under this chapter are
7 4 confidential. Such information may not be disclosed, except
7 5 as follows:
7 6 a. For the purpose of investigating, litigating, or
7 7 enforcing the financial liability coverage requirements
7 8 of section 321.20B, the designated agent shall provide an
7 9 electronic record to a state or local government agency or
7 10 court verifying motor vehicle financial liability coverage
7 11 information.
7 12 b. For the purpose of investigating, litigating, or
7 13 enforcing the financial liability coverage requirements of
7 14 section 321.20B, the designated agent shall, upon request,
7 15 issue to any state or local government agency or court a
7 16 certificate documenting motor vehicle financial liability
7 17 coverage, according to the database, of a specific individual
7 18 or motor vehicle for the time period designated by the
7 19 government agency or court.
7 20 c. Upon request, the department or its designated agent
7 21 shall disclose whether an individual is covered under a motor
7 22 vehicle insurance policy and the insurance company name to:
7 23 (1) The individual or, if the individual is deceased,
7 24 any person who is an interested party in the estate of the
7 25 individual as provided under chapter 633.
7 26 (2) The parent or legal guardian of the individual if the
7 27 individual is an unemancipated minor.
7 28 (3) The legal guardian of the individual if the individual
7 29 is legally incapacitated.
7 30 (4) A person who has power of attorney for the individual.
7 31 (5) A person who submits a notarized release from the
7 32 individual dated no more than ninety days before the date the
7 33 request is made.
7 34 (6) A person suffering loss or injury in a motor vehicle
7 35 accident in which the individual was involved, but only as part
8 1 of an accident report as authorized in section 321.271 relating
8 2 to access to accident reports.
8 3 d. For the purpose of investigating, enforcing, or
8 4 prosecuting laws or issuing citations, information related to a
8 5 motor vehicle owner or operator's financial liability coverage
8 6 under section 321.20B may be provided to state or local law
8 7 enforcement agencies.
8 8 e. Upon request of a peace officer acting in an official
8 9 capacity under the provisions of paragraph "d", the department
8 10 or the designated agent shall, upon request, disclose relevant
8 11 information contained in the database.
8 12 f. For the purpose of the state auditor conducting audits
8 13 of the program.
8 14 g. Upon request of a financial institution for the purpose
8 15 of protecting the financial institution's bona fide security
8 16 interest in a motor vehicle.
8 17 2. a. The department may allow the designated agent to
8 18 prepare and deliver, upon request, a report on the insurance
8 19 information of a person or motor vehicle in accordance with
8 20 this section. The report may be in the form of:
8 21 (1) A certified copy that is considered admissible in any
8 22 court proceeding in the same manner as the original.
8 23 (2) Information accessible through the internet or through
8 24 another electronic medium if the department determines that
8 25 sufficient security is provided to ensure compliance with this
8 26 section.
8 27 b. The department may allow the designated agent to charge a
8 28 fee established by the department for each of the following:
8 29 (1) Authenticating a document, including preparation and
8 30 delivery of a certified copy.
8 31 (2) Accessing a record through the internet or through
8 32 another electronic medium.
8 33 (3) Providing a record to a financial institution under
8 34 subsection 1, paragraph "g".
8 35 3. Any person who knowingly releases or discloses
9 1 information from the database for a purpose other than those
9 2 authorized in this section or to a person who is not entitled
9 3 to such information is guilty of a class "D" felony.
9 4 4. Neither the state nor the department's designated agent
9 5 is liable to any person for gathering, managing, or using the
9 6 information in the database in compliance with this chapter.
9 7 Sec. 8. EFFECTIVE DATE. This Act takes effect July 1, 2016.
HF 606 (4) 86
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