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House Amendment 1331

House Amendment 1331

PAG LIN
1 1 Amend the Senate amendment, H=1265, to House File
1 2 635, as amended, passed, and reprinted by the House, as
1 3 follows:
1 4 #1. Page 1, after line 3 by inserting:
1 5 <___. Page 11, after line 6 by inserting:
1 6 <Sec. ___. NEW SECTION. 307.27A Insurance
1 7 verification program.
1 8 1. The department shall adopt rules for the
1 9 creation and administration of an insurance
1 10 verification program to electronically verify
1 11 compliance with the requirements of section 321.20B.
1 12 The department may revoke the registration of a
1 13 motor vehicle for which compliance cannot be verified
1 14 electronically pursuant to the program, and may refuse
1 15 to reinstate the registration for the motor vehicle
1 16 until the owner of the motor vehicle has provided proof
1 17 of financial liability coverage, as defined in section
1 18 321.1, and has paid to the department an administrative
1 19 reinstatement fee of one hundred dollars, which shall
1 20 be in addition to any other penalty imposed by law.
1 21 Administrative reinstatement fees collected pursuant
1 22 to this subsection shall be retained by the department
1 23 as repayment receipts, as defined in section 8.2,
1 24 and shall be used exclusively to offset the costs of
1 25 administering the program, including any payments made
1 26 to a third=party vendor.
1 27 2. Rules adopted by the department pursuant to
1 28 this section shall include a notification schedule
1 29 for registration revocation and a procedure by which
1 30 a revoked registration may be reinstated. Rules
1 31 adopted by the department pursuant to this section
1 32 shall require each insurer that issues a motor vehicle
1 33 liability policy, as defined in section 321A.21, to the
1 34 owner of a motor vehicle registered in this state to
1 35 submit to the department twice per month information
1 36 that demonstrates that financial liability coverage
1 37 is in effect for the insured vehicle, including each
1 38 insured's name, date of birth, and driver's license
1 39 number if available, the make, model, year, and vehicle
1 40 identification number of the vehicle, the policy
1 41 number and effective date of each policy, and any other
1 42 information necessary to administer the program. An
1 43 insurer that fails to provide information as required
1 44 shall be subject to a civil penalty as determined by
1 45 the department by rule, which shall not exceed one
1 46 thousand dollars per day.
1 47 3. a. The department shall contract with a
1 48 third=party vendor to act as the department's
1 49 designated agent for administration of the insurance
1 50 verification program. The department shall select the
2 1 vendor through a competitive bidding process.
2 2 b. Notwithstanding section 321.11, the department
2 3 may provide data and information to the third=party
2 4 vendor as may be necessary for administration of
2 5 the program. Any data or information received by
2 6 the third=party vendor in the administration of the
2 7 program, whether from the department or an insurer,
2 8 shall be confidential and shall not be used for any
2 9 other purpose.
2 10 4. The insurance verification program implemented
2 11 by the department pursuant to this section shall not
2 12 take effect until July 1, 2016, and shall not operate
2 13 after June 30, 2020.
2 14 5. This section is repealed June 30, 2020. >>
2 15 #2. Page 1, by striking lines 4 through 6.
2 16 #3. Page 1, by striking lines 24 through 39.
2 17 #4. By renumbering as necessary.

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