The bill amends various sections of the Iowa Code related to motor vehicle financial liability coverage. A new requirement is introduced whereby vehicle owners must certify that financial liability coverage is in effect when applying for vehicle registration, and they must provide proof of this coverage. Additionally, the bill establishes that if a driver is cited for not having financial liability coverage but can provide proof that coverage was in effect at the time of the citation, the court will dismiss the charge. The bill also includes provisions for penalties, specifying that violations of financial liability coverage will incur scheduled fines that vary based on whether the violation occurred in connection with a motor vehicle accident.

Furthermore, the bill modifies the penalties for violations of financial liability coverage, establishing a tiered fine system for repeat offenses. It specifies that fines collected will be distributed to the victim compensation fund, the county, and the state general fund. The effective date for the new provisions regarding financial liability coverage certification and registration is set for December 1, 2028.

Statutes affected:
Introduced: 321.20, 321.20B, 805.8A, 321.40
Reprinted: 321.20, 321.20B, 805.8A, 321.40