Relating to motor vehicle insurance, including requiring owners of registered motor vehicles to maintain financial liability coverage, establishing a motor vehicle insurance verification database, authorizing the use of automated registration plate reader systems, and authorizing county enforcement and diversion programs, establishing fees, providing penalties, and including effective date and applicability provisions

18, a lienholder who has a security interest in a motor vehicle so long as the lienholder maintains financial liability coverage for any motor vehicle driven or moved by the lienholder in which the lienholder has an interest, or a motor vehicle owned by a licensed motor vehicle dealer or wholesaler. INSURANCE VERIFICATION DATABASE. The bill establishes a motor vehicle insurance verification program within the department of transportation (DOT) for purposes of administering a motor vehicle insurance verification database. The bill requires the DOT to establish an advisory council with members as provided in the bill for purposes of making recommendations to, assisting, and reporting to the DOT on matters related to the database. The bill requires the DOT to either designate a position within the DOT or, following competitive bidding procedures, contract with a third party to act as the DOT’s designated agent for administering the database. The designated agent is required to update the database, compare information in the database, and archive database files as provided in the bill. The bill requires the DOT to audit the program at least annually. The bill sets forth certain reporting requirements under which insurers must submit records to the designated agent. The bill authorizes the DOT to assess a civil penalty of not more than $250 for each day an insurer fails to comply with the bill. The bill sets forth certain limitations on the disclosure of information in the database. Such information may be disclosed to governmental agencies and courts for purposes of investigating, litigating, or enforcing motor vehicle financial liability requirements, and to certain other persons as described in the bill. The bill provides that the designated agent or any other person who knowingly discloses the information in violation of the bill is guilty of a class “D” felony. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $750 but not more than $7,500. AUTOMATED REGISTRATION PLATE READER SYSTEMS.20B. The bill allows a county attorney or law enforcement agency to enter into a contractual agreement with a provider for purposes of providing the necessary technology, equipment, and maintenance of a system. The bill provides that a law enforcement agency using a system shall have access to the motor vehicle insurance verification database for purposes of determining whether a motor vehicle which has had its registration plate number recorded by a system is operating with the required financial liability coverage. The bill specifies the persons who may have access to a system, and provides for the collection, retention, and destruction of data.20B at the time of operation.20B. The bill prohibits a law enforcement agency from selling data collected by a system or sharing such data for any purpose not authorized by the bill. The bill requires county attorneys who implement and administer an uninsured vehicle enforcement program to, in association with the Iowa county attorneys association, collectively submit a report to the general assembly by September of each year consisting of an evaluation of the uninsured vehicle enforcement programs in the state, including any information relating to or recommendations for improvement of the programs. DIVERSION PROGRAMS.20B by owners of motor vehicles. The county attorney may, at the county attorney’s discretion, defer a person’s prosecution and refer the person to the diversion program. The bill specifies factors the county attorney must consider to make the determination. The bill requires a notice to be mailed to a person upon referral to a diversion program. If the person fails to comply with the notice, the county attorney may proceed with the prosecution of the person as provided by law. The bill allows a county attorney to enter into a written agreement with the person to defer prosecution on the complaint for a period to be determined by the county attorney, not to exceed two years. The bill specifies certain conditions that must be included in an agreement to defer prosecution. Each diversion agreement must include a provision requiring the owner to pay to the county attorney’s office a fee of between $250 and $500. The fees must be deposited in a special county attorney fund with the county treasurer to be known as the uninsured vehicle enforcement diversion program fund.20B, including automated registration plate reader systems, and payment of reasonable compensation to authorized and participating law enforcement agencies as may be agreed upon between the entities, law enforcement agencies, and the county attorney. The county treasurer must keep records of all moneys deposited in and disbursed from the fund, and records of the moneys must be audited at the same time the records of the county treasurer are audited. If a person furnishes proof to the satisfaction of the county attorney that financial liability coverage was in effect at the time of the alleged violation, no fee is required. The bill requires county attorneys who implement and administer a diversion program to, in association with the Iowa county attorneys association, collectively submit a report to the general assembly by September of each year consisting of an evaluation of the diversion programs in the state, including any information relating to or recommendations for improvement of the programs, and the amounts deposited in and disbursed from uninsured vehicle enforcement diversion program funds in the state. EFFECTIVE DATE AND APPLICABILITY. The bill takes effect July 1, 2021. The provisions of the bill relating to automated registration plate reader systems and diversion programs apply on and after the date on which the motor vehicle insurance verification database contains information on at least percent of the registered motor vehicles in the state, as determined by the DOT.