A bill for an act relating to the penalty for a second or subsequent violation of motor vehicle financial liability coverage requirements.

This bill increases penalties for drivers who repeatedly fail to maintain required motor vehicle insurance coverage. Specifically, it makes a second or subsequent violation of Iowa's financial liability coverage law within five years a class "D" felony (previously a misdemeanor), punishable by up to five years in prison and fines up to $10,245. Peace officers must arrest drivers without proof of coverage who have prior convictions for this violation, and may impound vehicles or remove registration plates. Drivers can still avoid charges by providing proof of coverage to the court before their hearing, leading to dismissal of the citation. The law applies to all drivers, regardless of vehicle registration or residency status.