Relating to motor vehicle financial liability coverage, providing penalties, and including effective date provisions

20B. Under current law, a person driving a motor vehicle on a highway is required to have financial liability coverage in effect for the motor vehicle and have the proof of financial liability coverage card issued for the motor vehicle in the motor vehicle, unless specifically excepted. For a violation of these provisions, a peace officer is required to issue a warning memorandum; issue a citation; issue a citation and remove the motor vehicle’s license plates and registration receipt; or issue a citation, remove the motor vehicle’s license plates and registration receipt, and impound the motor vehicle, when the officer stops a driver whose vehicle is registered in Iowa. If the vehicle is not registered in Iowa and the driver is a nonresident, the peace officer must issue a warning memorandum or a citation. A person who does not have financial liability coverage in effect for the vehicle or who does not carry proof of such coverage in the vehicle commits a simple misdemeanor punishable as a scheduled violation. If in connection with a motor vehicle accident, the scheduled fine is $645; otherwise, the scheduled fine is $325. A fine collected must be submitted to the state court administrator and distributed percent to the victim compensation fund, percent to the county in which such fine is imposed, and percent to the general fund of the state.20B(1) within five years an aggravated misdemeanor. For the penalty enhancement, the bill does not distinguish between vehicles registered in Iowa, or not, or drivers who are residents of Iowa, or not. A peace officer is required to arrest the driver if the driver cannot provide proof of financial liability coverage and was previously convicted for the same violation within five years. A peace officer may remove the motor vehicle’s registration plates and registration receipt, or impound the motor vehicle, in which case associated procedures under current law apply. In accordance with current law, a person cited for a violation, including a person arrested for a second or subsequent violation under the bill, may provide proof that financial liability coverage was in effect at the time the person was stopped and the court must dismiss the citation or charge and assess costs to the person. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $855 but not more than $8,540.8108. Financial liability coverage is generally required to be in effect for every motor vehicle driven on Iowa highways.18); a lienholder with a security interest in a motor vehicle that does not drive or move the vehicle; and motor vehicles owned by a motor vehicle dealer or wholesaler licensed pursuant to Code chapter 322.20B.