SF 466 – Residential exterior construction contracts
SF 2127 – Banking Division Professional Licensure technical
SF 2170 – Notice of property tax sale certificate
SF 2202 – Banking omnibus
SF 2279 – Credit Union omnibus
SF 2280 – Boiler inspections
SF 2294 – Real estate auctions
HF 2144 – Transmission facility ownership
HF 2145 – Surplus lines insurance regulation
HF 2168 – Deposit of public funds
HF 2301 – Alternate energy production facility notification to utility
SF 466 was proposed to protect consumers and reputable business professionals from scam artists known as “stormchasers,” who travel from state to state after natural disasters. The legislation applies to individuals or businesses who contract for exterior residential repair or replacement of roof systems (including coverings, sheathing, weatherproofing and insulation) or perform any other exterior repair, exterior replacement or exterior reconstruction work resulting from a natural catastrophe (including fire, earthquake, tornado, windstorm, flood, hail storm) that damages or destroys residential real estate. “Residential real estate” is defined as a new or existing building, including a detached garage, constructed for habitation by one to four families. The Conference Committee negotiated a compromise that replaces “Notice of Binding Contract” with “Notice of Contract Obligations and Rights” and modifies the notice language, as recommended by the Attorney General, and stipulates that failure to give notice does not result in a violation of the consumer frauds statute, but does give the customer a right to void the contract with a contractor. The bill addresses promises of rebates and misrepresentation as an insurance/claims adjuster by stipulating that a violation of any of the following is an unlawful practice under Ch. 714.16 — Consumer frauds: 1) a residential contractor cannot advertise or promise to rebate any portion of an insurance deductible as an inducement to the sale of goods or services. A promise to rebate any insurance deductible includes granting any allowance or offering any discount against the fees to be charged, or paying a person directly or indirectly associated with the residential real estate any form of compensation, except for items of nominal value. A residential contractor may display a sign or other advertisement on a person’s premises if the person consents to the display and the person receives no compensation from the residential contractor for such placement. 2) A residential contractor cannot represent or negotiate on behalf of, or offer or advertise to represent or negotiate on behalf of, an owner or possessor of residential real estate on any insurance claim in connection with the repair or replacement of roof systems, or the performance of any other exterior repair, exterior replacement, or exterior reconstruction work on the property. The legislation applies to contracts entered into on or after the effective date. [5/8: Conference Committee 45-1 (Zaun “no;” Bacon, Behn, Chelgren, McKinley excused)]
SF 2127 is a recommendation by the Banking Division’s Professional Licensing and Regulation Bureau. It updates provisions for land surveyors, including striking obsolete “registered” references to the current “licensed” land surveyors, and makes references to “professional land surveyors” or “licensed professional land surveyors” consistent with provisions for professional engineers and licensed professional engineers. The bill also removes provisions relating to staff communication by mail with professional engineers and land surveyors regarding licensure status, and references to license expiration in multiyear intervals in connection with professional engineers and land surveyors, registered architects and landscape architects. [2/27: 50-0]
SF 2170 relates to notices made by a holder of a property tax sale certificate of purchase following a tax sale. It requires that service of the notice of expiration of right of redemption made on specified lienholders and interest holders be made by both regular mail and certified mail. Service of the notice must be made by both regular mail and certified mail on any mortgagee having a lien upon the parcel, a vendor of the parcel under a recorded contract of sale, a lessor who has a recorded lease or recorded memorandum of a lease, and any other person who has an interest of record, at the person’s last known address. Service of the notice is completed when the notice is deposited in the mail and postmarked for delivery. The U.S. Postal Service provides a mailer with a receipt of proof of certified mail. The law in effect at the time of tax sale governs redemption. [2/29: 50-0]
SF 2202 is a recommendation from the Iowa Division of Banking (IDOB) that authorizes mutual ownership as a potential option for state-chartered banks and bank holding companies. The Dodd-Frank Act has prompted several federally-chartered thrifts to convert to state-chartered bank. Some Iowa thrifts with mutual ownership either at the bank or the holding company level face an obstacle to conversion because Iowa law currently does not recognize mutual ownership for state banks. The bill also authorizes state banks to own additional Federal Home Loan Bank (FHLB) stock within set limits without seeking prior Superintendent of Banking approval when additional stock is necessary to allow the bank to participate in FHLB mortgage programs; makes Iowa law consistent with federal regulations regarding affiliate transactions by allowing the Superintendent to give a state bank an exemption from the restrictions on affiliate transactions when there is a legitimate reason for the exemption and the exemption is in the public interest and consistent with the purposes of the restrictions on affiliate transactions; changes receivership procedures in a bank failure to make appointment of the FDIC as receiver automatic; eliminates duplication of efforts between the IDOB and the Title Guaranty Division of the Iowa Finance Authority by authorizing the IDOB to share its closing company exam reports with Title Guaranty for its reinsurance purposes, so only one entity is examining or auditing the closing companies, and repeals obsolete and outdated laws covering Savings and Loan Associations (Chapter 534 and various Iowa Code references) because there have been no state-chartered savings and loan associations for many years. [2/28: 50-0]
SF 2279 is a recommendation by the Iowa Credit Union Division of the Iowa Department of Commerce. It streamlines current language regarding methods by which credit unions may conduct a vote of the membership (e.g., director elections, amendment to the bylaws or articles of incorporation, dissolution, merger) so that a credit union’s board of directors can more easily select from specific options. It codifies current practice regarding assessment of a single fee with supervision and examination components, which are paid in two installments each year. The examination fee language for Credit Union Service Organizations does not change. It lowers the minimum number of directors from 9 to 7 to assist smaller credit unions that have experienced difficulty in attracting sufficient volunteer directors. The bill also allows a credit union to charge fees against a share amount, according to the credit union’s policies, which may allow it to close the account sooner than the three-year abandonment statute. Current Code prohibits credit unions from assessing fees against the ownership share, an amount (typically $5 to $25) that is required for membership in the credit union. In the case of inactive accounts, that share amount remains, and the credit union has to bear the cost of maintaining the account until the account can be declared abandoned and the amount turned over to the state as unclaimed property. [3/5: 49-0 (Behn excused)]
SF 2280 modifies the criteria for boilers or pressure vessels that must be inspected by the Labor Commissioner or designee at least once a year externally while under pressure, and at least once every four years internally while not under pressure, unless the Commissioner determines an earlier inspection is warranted. One of the criteria is that the owner or user is a participant in good standing in the Iowa Occupational Safety and Health voluntary protection program administered by the Labor Division of the Department of Workforce Development and has achieved star status within the program. The bill provides an alternative to that criterion, if the object is an unfired steam pressure vessel and is part of or integral to the continuous operation of a process covered by and compliant with the federal Occupational Safety and Health Administration’s process safety management standard, and the owner demonstrates such compliance to a special inspector or the Labor Commissioner. The object must also be included as “process safety management process equipment” in the owner’s process safety management program. The original proposal was amended to include recommendations made by the Iowa Boiler and Pressure Vessel Board. [3/6: 49-0 (Bacon excused)]
SF 2294 addresses authorized activities of auctioneers who are not real estate licensees in conducting a public sale or auction of real estate. The auctioneer’s role must be limited to establishing the time, place and method of an auction; advertising the auction, which is limited to a brief description of the property for auction and the time and place for the auction; and crying the property at the auction. The auctioneer must include in any advertising the name and address of the real estate broker who is providing brokerage services for the transaction and the name of the real estate broker, attorney or closing company responsible for closing the sale of the property. The real estate broker providing brokerage services must be present at the time of the auction. The auctioneer cannot independently show the property or host open houses, make material and substantive representations regarding title, financing or closings, discuss or explain a contract, lease, agreement or other real estate document, contract for conducting the auction, provide the property owners or prospective buyers or tenants with advice, recommendations or suggestions regarding the sale, purchase, exchange, rental or leasing of the real estate, or collect or hold deposit moneys, rent, other moneys or anything of value received from the owner or from a prospective or tenant except fees, commissions or other consideration paid in exchange for conducting the auction. [3/13: 47-3 (Boettger, Feenstra, Greiner “no”)]
HF 2144 expands the definition of ownership of transmission facilities subject to a joint agreement between participants (e.g., city, electric cooperative, privately-owned utility company) to include facilities located outside of the state. Current law restricts ownership to facilities located in Iowa or contiguous states. A city or electric power agency may acquire ownership interest in a transmission facility, including ownership of the capacity of such facility, within Iowa or in any other state to participate with other utilities in transmission to be operated by a regional transmission organization or an independent transmission operator approved by the Federal Energy Regulatory Commission. [3/21: 50-0]
HF 2145 allows more access to surplus lines insurance in Iowa. It creates a new Iowa Code chapter containing regulations that permit the sale of surplus lines insurance in the state by insurers who are not licensed to do insurance business in Iowa. Such insurers must be listed as eligible surplus lines insurers if they meet the requirements and are approved by the Iowa Insurance Commissioner. Surplus lines insurance producers already licensed to sell, solicit or negotiate surplus lines insurance are also subject to new regulations and must file reports and remit premium taxes to the state for all surplus lines insurance sold or delivered by the producer, as required by the Commissioner by rule. The bill takes effect upon enactment. [3/19: 50-0]
HF 2168 relates to the authorized investment of public funds. Currently, the uninsured portion of public funds invested through a depository may be invested in certificates of deposit arranged by the depository issued by one or more federally-insured banks or savings associations. The bill expands such authorized investments to include insured deposits and adds to the list of acceptable forms of collateral for the deposit of public funds. Collateral could include certificates of deposit issued by a Federal Deposit Insurance Corporation (FDIC) insured bank of which the principal and accrued interest are fully insured by the FDIC, and that have been assigned a CUSIP (Committee on Uniform Security Identification Procedures) number and deposited for the account of the public funds depository bank at the depository trust company. The Senate unanimously amended the proposal to include recommendations by the Treasurer of State to further protect public funds. [3/21: 50-0]
HF 2301 improves safety for electric utility line crews by requiring advance notice when renewable energy resources are connected to a distribution system. It applies to an owner who has not entered into a power purchase agreement with a public utility for an alternate energy production facility that will be attached or connected to equipment that will be attached to an electric transmission or distribution line. The owner must provide written notice to the utility within whose service territory the facility is located no later than 30 days prior to construction or installation. The notice must include a statement that the facility is being constructed or installed, the type of facility and the date that facility expects to begin service. [3/21: 50-0]