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Commerce – week of Feb. 22, 2016

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SF 502 – Commercial animal breeding establishments     

SF 2221 – Expand IUB regulation to include sanitary sewage, storm water drainage

SF 2253 – Require LLC real estate transfers to disclose market value

SF 2254 – Insurance coverage for autism spectrum disorders

SF 2261 – Medication synchronization insurance coverage

SF 2279 – Credit Union Division omnibus

 

FLOOR ACTION:

SF 2221 gives the Iowa Utilities Board (IUB) the authority to regulate companies that provide sewer and storm water services to the public. The IUB will oversee rates and services for such utitlies. In addition to current exclusions from applicability, this does not apply to a municipally owned sanitary sewage or storm water drainage system, a sanitary district incorporated and organized pursuant to Code Chapter 358, or a levee and drainage district organized pursuant to Code Chapter 468.

[2/24: 50-0]

 

COMMITTEE ACTION:

SF 502 by Ways & Means was referred to Commerce Committee last year, where the legislation originated. The Committee unanimously approved an amendment that rewrites the bill regarding commercial breeders of dogs and cats. It establishes a quality assurance council within the Iowa Department of Agriculture & Land Stewardship composed of one member appointed by the Secretary of Agriculture, one member appointed by the Iowa Voters for Companion Animals, and one member appointed by the Iowa Pet Breeders Association. The council will review applications submitted by commercial breeders of dogs or cats who seek to receive a quality assurance certificate denoting the applicant as one of the leading commercial breeders in this state. The council can award quality assurance certificates to applicants who have demonstrated a long history of caring for dogs or cats in a manner that consistently exceeds the standard of care required under state and federal law. A commercial breeder is a person engaged in the business of breeding dogs or cats and who transfers, or offers to transfer, dogs or cats to another person in return for consideration. The bill returns to the Senate Calendar with the Commerce Committee amendment.

[2/18: short form]

 

SF 2253 (SSB 3148) requires a transfer of real estate involving a limited liability company or foreign limited liability company as transferor or transferee that is exempt from real estate transfer tax, to disclose the market value of the real estate being transferred in a statement prepared by the transferor. The statement must show the actual or fair market value of the real estate, as determined by an independent professional appraiser. The statement must be included with the instrument of transfer, and filed with the county recorder where the real estate is located. The value disclosed must not be used to determine real estate transfer tax liability under Code chapter 428A. The bill was approved to allow legislators and stakeholders to continue to work on a possible amendment.

[2/18: 10-5, without recommendation (Anderson, Bertrand, Sinclair, Smith, Zumbach “no”)

 

SF 2254 (SF 2072) requires certain health insurance policies and plans to provide coverage for diagnosis and evidence-based treatment for autism spectrum disorders for those under 22 when prescribed by a licensed physician or licensed psychologist as medically necessary. This includes pharmacy care; psychiatric care; psychological care; speech, occupational and physical therapy; and behavioral health treatment (applied behavior analysis up to $36,000 annually).

 

It applies to specified third-party payment provider policies, contracts or plans that are delivered, issued for delivery, continued or renewed in Iowa on or after January 1, 2017. Beginning February 1, 2018, the Insurance Commissioner will submit an annual report to the Legislature on implementation of the coverage. The report must include the number of insureds diagnosed with autism spectrum disorders in the preceding calendar year, the cost of all claims paid out for required coverage, the cost of such coverage per insured per month, and the average cost per insured per month for the required coverage of applied behavior analysis.

[2/18: 13-2 (Schneider, Sinclair “no”)]

 

SF 2261 (SF 2078) relates to insurance coverage for prescription drugs dispensed to facilitate medication synchronization. It requires that a group policy or contract providing for third-party payment or pre-payment for prescription drugs apply a prorated daily cost-sharing rate to prescription drugs that are dispensed for less than a 30-day supply, to synchronize the medications of the person covered under the policy or contract, if the prescriber or pharmacist determines the prorated filling or re-filling of the prescription drug to be in the best interest of the person and the person requests or agrees to less than a 30-day supply. The group policy or contract cannot use payment structures incorporating pro rata dispensing fees, and the dispensing fee for partially filled or refilled prescriptions must be paid based on the full supply of each prescription dispensed, regardless of any prorated copayment paid by the covered person for synchronization of medications.

 

The bill prohibits a group policy or contract providing for third-party payment or prepayment for prescription drugs from denying coverage for the dispensing of multiple prescriptions at one time for the purposes of synchronizing medications for a covered person under the policy or contract, if the person and the pharmacist or other prescriber agree to synchronizing the filling or refilling of multiple prescriptions. The group policy or contract must allow a pharmacy to override any denial codes indicating that a prescription drug is being refilled too soon for purposes of medication synchronization. The bill was approved to allow legislators and stakeholders to continue to work on a possible amendment.

[2/18: 9-6, without recommendation (Anderson, Bertrand, Schneider, Sinclair, Smith, Zumbach “no”)]

 

SF 2279 (SSB 3018) is based on recommendations by the Credit Union Division of the Department of Commerce. The bill includes non-controversial technical changes and updates. The original proposal included a provision to modify the current statute that allows a state-chartered credit union to engage in any activity authorized by the superintendent that would be permitted if the state-chartered credit union was federally chartered and which is consistent with state law. An amendment to strike this change was approved by a vote of 9-6 (Petersen, Bolkcom, Courtney, Schoenjahn, Seng, Sodders “no”). As amended, the bill passed unanimously.

[2/18: short form]


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