1998 Summary of Legislation Published by the Iowa General Assembly -- Legislative Service Bureau

BUSINESS, BANKING AND INSURANCE

AGRICULTURE LEGISLATION

SENATE FILE 2109 - Mobile Home Dealers (full text of act)

BY BORLAUG. This Act amends Code Chapter 322B, relating to the licensing of mobile home dealers, to provide that licensing provisions also apply to dealers of manufactured homes. The term "mobile home" is amended to include a manufactured home. The amount of the surety bond for dealers is increased from $25,000 to $50,000.

This Act allows a dealer or an employee of a dealer to perform hookups to water, gas and electrical connections in a mobile home space, or within 10 feet of the space. The dealer or employee may also install a tie-down system on a mobile home in a mobile home park. The connections are subject to inspection and approval by local building code officials.

This Act removes requirements for the licensing of representatives of manufacturers and distributors of mobile homes or manufactured homes.

The Act also strikes a requirement that a dealer mail or deliver a signed purchase receipt of a mobile home to the county treasurer within 48 hours of the sale.

SENATE FILE 2162 - Consumer Credit Code -- Truth in Lending Act Definition (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends the definition of the federal "Truth in Lending Act" (15 U.S.C.  41) for purposes of the Consumer Credit Code to include amendments to that Act through January 1, 1998, and to also include regulations issued pursuant to that Act prior to January 1, 1998. The date used currently for purposes of this definition is January 1, 1995.

SENATE FILE 2188 - Debt Collection (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends a provision prohibiting a debt collector from using a fraudulent, deceptive or misleading representation or means to collect or attempt to collect a debt or to obtain information concerning a debtor. Currently, it is a fraudulent, deceptive or misleading representation for a debt collector to fail to disclose, in the initial written or oral communication with the debtor, that the debt collector is attempting to collect a debt and that information obtained will be used for that purpose. It is also a fraudulent, deceptive or misleading representation for the debt collector to fail to disclose in subsequent communications that the communication is from the debt collector. The Act provides that this provision does not apply if the communication to the debtor is issued directly by a state or national bank, state or national savings and loan association or savings bank, a state or federal credit union, a financial institution chartered by the Federal Home Loan Bank Board, a trust company, a national banking association, or an insurance company or association, or an officer, employee or agent of such company or association, so long as the communication does not deceptively conceal its origin or purpose.

SENATE FILE 2189 - Banks -- Offices in Municipal Corporations and Urban Complexes (full text of act)

BY COMMITTEE ON COMMERCE. This Act eliminates the restriction on the number of bank offices a state or national bank can open within a municipal corporation or urban complex in which the principal place of business of the bank is located.

SENATE FILE 2279 - Foreign Investments by Insurance Companies (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends provisions relating to authorized investments of domestic insurance companies in foreign governments and foreign corporations. The Act provides that investments in foreign government obligations must, at the time of acquisition, have predominantly investment qualities and characteristics as provided by rule of the Insurance Commissioner. The Act also provides that investments in foreign governments and foreign corporations are limited to an investment of 2 percent of the company's assets in any one foreign government or corporation, and limited to a total investment of 10 percent of the company's assets in foreign investments. The limitation is determined as a percentage of the reserves of a life insurance company or the admitted assets of a nonlife company. The limitation established does not include investments in the government of Canada or corporations incorporated under the laws of Canada.

SENATE FILE 2301 - Bank Regulation and Operation (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends provisions relating to the operation and regulation of banks in this state.

The Act requires a state or national bank to identify its principal place of business, any bank office, or any bank branch in a manner that includes its legally chartered name or a reasonable variation of such name at its Iowa locations. The Act also requires the state or national bank to use its legally chartered name in all legal documents of such bank.

The Act provides for the conversion of a federal savings association into a state bank and for the conversion of a state bank into a federal savings association.

SENATE FILE 2311 - Uniform Partnership Law (full text of act)

BY COMMITTEE ON COMMERCE. This Act rewrites Code Chapter 486 relating to partnerships in conformance with a draft prepared by the National Conference of Commissioners on Uniform State Laws. The Act generally takes effect January 1, 1999. Prior to January 1, 2001, the Act applies to a partnership formed on or after January 1, 1999, with the exception of a partnership continuing the business of dissolved partnership under Code Section 486.41, and to a partnership formed prior to January 1, 2001, if the partnership elects to be governed by the Act. On and after January 1, 2001, the Act applies to all partnerships and existing Code Chapter 486 is repealed. The Code Editor is directed to codify the provisions of the new chapter contained in the Act as a new Code Chapter 486A.

Article 1 includes general provisions, including definitions, the effect of a partnership agreement, the law governing internal relations, and other general provisions.

Article 2 relates to the nature of the partnership and includes provisions relating to the partnership as an entity, the formation of the partnership, partnership property, and when property is property of the partnership.

Article 3 relates to the relations of partners to persons dealing with the partnership and includes provisions relating to a partner as agent of the partnership, tranhfer of partnership property, statement of partnership authority, statement of denial, liability of a partnership for a partner's actionable conduct, liability of a partner, legal actions by and against the partnership and partners, and the liability of a purported partner.

Article 4 relates to the relations of the partners to each other and to the partnership and includes provisions relating to a partner's rights and duties, distributions in kind, the partner's rights and duties with respect to partnership information, general standards of a partner's conduct, actions by the partnership and partners, and the continuation of the partnership beyond a definite term or particular undertaking.

Article 5 relates to tranhferees and creditors of a partner and includes provisions relating to partnership property and providing that a partner is not a co-owner of partnership property, a partner's tranhferable interest in a partnership, the tranhfer of a partner's tranhferable interest, and a partner's tranhferable interest being subject to a charging order.

Article 6 relates to a partner's dissociation with the partnership and includes provisions relating to events causing a partner's dissociation, a partner's power to dissociate and wrongful dissociation, and the effect of a partner's dissociation.

Article 7 relates to a partner's dissociation with the partnership when the business of the partnership is not wound up, and includes provisions relating to the purchase of the dissociated partner's interest, the dissociated partner's power to bind the partnership, the dissociated partner's liability to other persons, the statement of dissociation, and the continued use of the partnership name by the partners continuing the business.

Article 8 relates to the winding up of the partnership business and includes provisions relating to events causing dissolution and winding up of the partnership business, continuation of the partnership after dissolution, the right to wind up partnership business, a partner's power to bind the partnership after dissolution, statement of dissolution, a partner's liability to the other partners after dissolution, and the settlement of accounts and contributions among the partners.

Article 9 relates to conversions and mergers involving a partnership and includes provisions relating to the conversion of a partnership to a limited partnership, the conversion of a limited partnership to a partnership, the effect of a conversion, the merger of partnerships, the effect of a merger, and the statement of merger.

Article 10 relates to a partnership becoming a limited liability partnership and includes provisions relating to the statement of qualification and the name of the limited liability partnership.

Article 11 relates to foreign limited liability partnerships and includes provisions relating to the law governing foreign limited liability partnerships, the statement of foreign qualification, the effect of failing to qualify, activities not constituting transacting business, and authorizing an action by the Attorney General to restrain a foreign limited liability partnership from transacting business in violation of the article.

Article 12 relates to filing provisions, including filing requirements, filing fees, effective time and date of documents filed, correcting filed documents, duties of the Secretary of State, appeal from the Secretary of State's refusal to file a document, evidentiary effect of a copy of a filed document, certificates issued by the Secretary of State, penalty for signing a false document, powers of the Secretary of State, registered office and agent provisions, and service on a partnership.

Article 13 includes miscellaneous provisions, including a uniformity of application and construction provision and the short title of the Act, "the Uniform Partnership Act."

SENATE FILE 2316 - Industries Regulated by Regulated Industries Unit of Insurance Division (full text of act)

BY COMMITTEE ON COMMERCE. This Act relates to entities and subject matter under the regulatory authority of the Regulated Industries Unit of the Insurance Division of the Department of Commerce. Specifically, the Act amends provisions relating to business opportunities, cemeteries and cemetery merchandise, preneed funeral merchandise and services, motor vehicle service contracts, and residential service contracts.

MOTOR SERVICE VEHICLE CONTRACT. The Act provides that a person in the business of selling motor vehicle service contracts must promptly file copies of amended documents used by such person with the Insurance Division. The Act provides that the Insurance Division is to assess an additional filing fee twice the amount normally associated with an annual filing if the annual filing occurs after August 1 and sales of such service contracts have occurred after August 1 and prior to the filing of the annual statement.

The Act provides that motor vehicle service contracts and residential service contracts must clearly state the terms and conditions of a deductible amount, if one exists.

The Act eliminates the 10-day notice requirement that currently must be given prior to an order being issued by the Insurance Division instructing the service contract provider to cease selling such contracts.

The Act provides that it is deceptive or misleading to use any combination of words, symbols or physical materials which are so similar to such combinations used by a manufacturer or which tend to mislead a person into believing that the solicitation is in some manner connected with the manufacturer, unless such use is authorized by the manufacturer. The Act also requires a motor vehicle service contract provider to include copies of all materials relating to denied claims in the provider's records.

FUNERAL MERCHANDISE AND SERVICES. The Act prohibits delivery in lieu of trusting with respect to concrete burial vaults and caskets sold after July 1, 1995. The Act provides that the Insurance Division may also prohibit delivery in lieu of trusting with respect to additional types of inner burial containers and merchandise, or may establish standards for the approval of storage facilities for such containers and merchandise. Currently, except for caskets and other types of inner burial containers or concrete burial vaults sold after July 1, 1995, delivery includes storage in a warehouse under the control of the seller or any other warehouse approved by the Insurance Division when a receipt of ownership naming the purchaser is delivered to the purchaser, the merchandise is insured and protected against damage, title has been tranhferred to the purchaser, the merchandise is appropriately identified and distinguishable from any other similar items, and the annual reporting requirements are satihfied.

The Act changes language required to be included in a funeral merchandise or funeral services agreement. Currently, the language provides that the contract (agreement) must be reported to the Insurance Division by the first day of March of the following year and that the individual purchasing such merchandise or services may call the Insurance Division to confirm that the contract has been reported. The language is amended by striking the reporting language and inserting language providing that the contract is subject to rules administered by the Insurance Division. The Act also strikes the specific reason for calling the Insurance Division (to confirm the contract has been reported) but leaves the general language indicating that the individual may call the division.

The Act provides that neither the Attorney General nor the Insurance Commissioner is required to post bond when seeking an injunction to restrain a person from engaging in conduct deemed contrary to the public interest with respect to the selling of funeral services or merchandise.

BUSINESS OPPORTUNITY REQUIREMENTS. The Act increases the time period after which a business opportunity registration becomes automatically effective from 10 to 15 days (the effectiveness of registration amendments may also be deferred for 15 days), and by providing that the Insurance Division may issue an order denying effectiveness to, or suspending or revoking the effectiveness of, a registration if the Insurance Division finds that the seller does not have a minimum net worth of $25,000. The Act provides that the business opportunity seller may submit a surety bond in lieu of the net worth requirement.

The Act establishes several other categories of offers or sales of business opportunities which are exempt from existing registration requirements. These include the offer or sale of a business opportunity to an ongoing business operated by the seller which is to be sold in its entirety, or by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator, or a judicial offer or sale. The Act also provides that the Insurance Division may deny or revoke an exemption from the registration requirement with respect to a particular offering if the public interest or the protection of purchasers requires such action. The Act permits the Insurance Division to directly bring an action to enjoin acts or practices, rather than notifying the Attorney General who would then bring the action, and identifies acts that are deemed to be misrepresentations, omissions and misleading conduct associated with business opportunities.

CEMETERIES AND CEMETERY MERCHANDISE. The Act changes language required to be included in a cemetery merchandise agreement. Currently, the language provides that the contract (agreement) must be reported to the Insurance Division by the first day of March of the following year and that the individual purchasing such merchandise may call the Insurance Division to confirm that the contract has been reported. The language is amended by striking the reporting language and inserting language that the contract is subject to rules administered by the Insurance Division. The Act also strikes the specific reason for calling the Insurance Division (to confirm the contract has been reported) but leaves the general language indicating that the individual may call the division. The Act provides that neither the Attorney General nor the Insurance Division is required to post bond when seeking an injunction to restrain a person from engaging in conduct deemed contrary to the public interest with respect to the selling of cemetery merchandise.

The Act provides that a cemetery, within the boundaries of the cemetery lands, may offer the nonexclusive preneed and at-need sale of the installation of monuments, memorials or markers.

The Act strikes language that permits a political subdivision to commingle perpetual care funds for purposes of investment and administration if each cemetery is appropriately identified and separate records are maintained for each cemetery.

The Act increases, from $50,000 to $100,000, the amount a perpetual care cemetery must deposit in an irrevocable trust fund prior to being able to withdraw the initial $25,000 that must be deposited before the perpetual care cemetery can commence doing business. The withdrawal must be made within one year after the fund reaches $100,000 unless otherwise approved by the Insurance Commissioner.

The Act provides that the Insurance Division may apply to the district court for a receivership with respect to a perpetual care cemetery. The Insurance Division may apply to the district court for an injunction to restrain a perpetual care cemetery from engaging in conduct or practices deemed to be in violation of Code Chapter 566A, which regulates cemeteries. The Act provides that neither the Insurance Division nor the Attorney General is required to post a bond when seeking such injunction.

The Act repeals the requirement that a seller, in connection with an offer or sale of a business opportunity, must have at all times a minimum net worth of $25,000 or obtain a surety bond.

SENATE FILE 2325 - Investment Advisers (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends Code Chapter 502, the Iowa Uniform Securities Act. Specifically, the Act regulates investment advisers. The Act provides that an investment adviser is a person who is engaged in the business of providing investment advice to persons in return for compensation. The Act provides exemptions for federally registered advisers, financial institutions, and professionals such as attorneys, accountants, engineers, and teachers who provide advice incidentally to their profession. The Act also regulates investment adviser representatives who are individuals employed by or associated with an investment adviser and who are involved in managing investments.

The Act establishes the licensure, registration and examination provisions for investment advisers and investment adviser representatives, establishes notice filing requirements for federal covered advisers, provides for filing fees, and authorizes rules to set minimum financial requirements and bonds for investment advisers.

The Act establishes postregistration requirements, such as recordkeeping, financial reports, corrective amendments, and bureau inspection authority.

The Act prohibits certain conduct. The Act lists prohibited advisory transactions, including fraud or deceit, unethical or dishonest business practices, and limits certain types of compensation arrangements. The Act creates civil liability for fraud or deceit, failure to register, and violations of rules or orders. The Act provides for filing certain sales and advertising literature. The Act provides that public records may be maintained in electronic, microfilm or other format.

The Act requires the Securities Bureau of the Insurance Division of the Department of Commerce to commence rulemaking as soon as possible. The Act provides for a delayed effective date of January 1, 1999, except for the rulemaking authority, which takes effect April 16, 1998.

SENATE FILE 2351 - Time for Review of Public Utility Reorganization (full text of act)

BY COMMITTEE ON COMMERCE. This Act provides that the Utilities Board, for good cause shown, may extend the deadline for acting on an application for the reorganization of a public utility for an additional period not to exceed 90 days. Currently, a proposal for reorganization is deemed to be approved unless the board disapproves the proposal within 90 days after filing.

The Act takes effect April 15, 1998.

SENATE FILE 2380 - Price Regulation for Telecommunications Services Providers (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends portions of Code Section 476.97 applicable to a local exchange carrier with 500,000 or more access lines electing to operate under price regulation. The Act provides that the Utilities Board must approve, modify or reject the plan of any local exchange carrier to elect price regulation by no later than 90 days after such plan is filed with the board. The Act provides that a price regulation plan for a local exchange carrier with 500,000 or more access lines must provide for the reduction of its average intrastate access service rates by at least 100 percent of the difference between average intrastate access service rates and average interstate access service rates as of the date the plan becomes effective. Currently, such rates must be reduced by 50 percent of such difference between intrastate and interstate access service rates with a further reduction to the average interstate access service rates within 90 days of the date the plan becomes effective.

The Act provides that initial prices for basic communications services must be 3 percent less than rates in effect at the time a local exchange carrier with 500,000 or more access lines files its plan. Currently, such reduction in prices is 6 percent less than such rates.

The Act provides that the Utilities Board, for purposes of determining increases and decreases in prices for basic communications services under the plan reflecting annual changes in inflation and productivity, is to use the gross domestic product price index until January 1, 2000, after which the board is to adopt current measures of inflation and productivity. Currently, the board is to use the gross domestic product price index for such determinations until January 1, 1998.

The Act provides that the Utilities Board, during the term of the plan for a local exchange carrier with 500,000 access lines in this state, may consider further reductions toward economic costs in the local exchange carrier's average intrastate access service rates. The board may consider offsetting such reductions by an explicit subsidy replacement to the extent that such offsets are competitively neutral. In determining economic costs of access service, the board shall consider all relevant costs of the service, including shared and common costs of the local exchange carrier.

The Act provides that the Office of Consumer Advocate, in calculating an estimate of the return of a local exchange carrier operating under price regulation as if the carrier were subject to rate-of-return regulation, is to make two calculations with one calculation considering the investment, revenues and expenses associated with the sale of classified directory advertising, and one calculation not considering such investment, revenues and expenses.

The Act provides that a telecommunications carrier, as defined in the federal Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996), shall not use customer information in a manner that is not in compliance with 47 U.S.C.  222; disparage the services offered by another telecommunications carrier through false or misleading statements; take any action that disadvantages a customer who has chosen to receive services through false or misleading statements; or take any action that disadvantages a customer who has chosen to receive services from another telecommunications carrier.

SENATE FILE 2397 - Insurance Companies -- Regulation and Operation -- Miscellaneous Provisions (full text of act)

BY COMMITTEE ON COMMERCE. This Act amends provisions relating to the operation of insurance companies.

The Act directs the Insurance Commissioner to examine the tax return of an insurance company for purposes of determining the tax within five years after the return is filed or within five years after the tax return became due, whichever is later. The Act provides that an assessment for tax or a claim for refund must be made within five calendar years after the annual tax filing is made. The Act also provides that a company may apply for a credit and the commissioner may make an assessment for the five-year period preceding the current calendar year.

The Act provides that a reinsurer's obligation to the insurer's estate is not reduced as a result of delinquency proceedings except when the agreement provides for another payee of the reinsurance to make payment or when an assuming insurer has assumed the policy obligations of the ceding insurer.

The Act provides that a stock life insurance company must have $5 million in capital and surplus paid in cash or invested as permitted. Currently, such company must have $2.5 million capital stock fully paid for in cash and $2.5 million of surplus paid in cash or invested as permitted.

The Act authorizes a life insurance company to issue funding agreements. A funding agreement is an agreement for an insurer to accept and accumulate funds and to make one or more payments at future dates in amounts that are not based on mortality or morbidity contingencies. The Act provides that such agreement is not life insurance, but is deemed to be doing insurance business. The Act provides that a funding agreement may be issued to a person authorized by a state or foreign country to engage in an insurance business or a subsidiary of such business, or by an individual for the purpose of funding any of the following: benefits under an employee benefit plan as defined in the federal Employee Retirement Income Security Act of 1974, 29 U.S.C.  1001 et seq., maintained in the United States or in a foreign country; activities of an organization exempt from taxation pursuant to  501c of the Internal Revenue Code, or any similar organization in any foreign country; a program of the United States government, another state government or political subdivision of such state, or a foreign country, or any agency or instrumentality of any such government, political subdivision or foreign country; an agreement providing for periodic payments in satihfaction of a claim; or a program of an institution that has assets in excess of $25 million. The Act excludes the application of Code Chapter 508C, Iowa Life and Health Insurance Guaranty Association, to a funding agreement.

The Act includes a short-term limited duration policy in the definition of "creditable coverage" for purposes of small group health coverage.

The Act provides that a stock insurance company, other than a stock life insurance company, must have $5 million in capital and surplus paid in cash or invested as permitted. Current Code provides that such company must have $2.5 million capital stock fully paid for in cash.

The Act provides that an agreement among licensed insurers to offer workers' compensation insurance for applicants unable to procure workers' compensation insurance through ordinary methods must be administered by a workers' compensation rating organization licensed under Code Chapter 515A.

The Act provides that the commencement of an action by an insured under a provision included in an automobile liability or motor vehicle liability insurance policy pursuant to Code Section 516A.1 tolls the statute of limitations for purposes of the insurer's subrogated cause of action against a "party," as defined in Code Section 668.2.

The Act repeals the requirement that in addition to the paid-up capital requirements, an insurance company other than a life insurance company must have $2.5 million of surplus paid in cash or invested as permitted.

The Act repeals Code Sections 515.22, 515.52 through 515.61, and 515E.6, relating to the participation, compensation and duties of a resident countersigning agent required to be utilized by an insurance company issuing a policy or contract of insurance in this state.

SENATE FILE 2399 - Limited Partnership Mergers (full text of act)

BY COMMITTEE ON JUDICIARY. This Act provides provisions relating to the merger of limited partnerships with and into other limited partnerships, limited liability companies and corporations.

The Act establishes basic authority for a limited partnership to merge into one or more limited partnerships, limited liability companies or corporations; establishes the requirements for a plan of merger; establishes the manner in which a merger is to be approved by the various entities to a merger with a limited partnership; provides that after a plan of merger is approved, the surviving entity must deliver the articles of merger to the Secretary of State for filing; sets forth the effects of a merger with respect to the assets and liabilities of the parties to the merger and the surviving entity; and establishes a manner in which a limited partnership may merge with a foreign entity.

HOUSE FILE 2189 - Regulation of Multiple Employer Welfare Arrangements (full text of act)

BY MYERS AND LAMBERTI. This Act extends the repeal date for the exemption of certain multiple employer welfare arrangements from regulation by the Insurance Division of the Department of Commerce, when specified requirements are met, from July 1, 1998, to July 1, 2001.

The Act takes effect March 17, 1998.

HOUSE FILE 2429 - Physical Exercise Clubs -- Definition (full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act excludes from the definition of "physical exercise club" a facility owned and operated on a not-for-profit basis by a person or contractor of a person if operated solely for the purpose of serving the person's employees and family members of the employees. The result of this exclusion is to make the various requirements that relate to physical exercise clubs, such as requirements relating to contracts with members, membership contract cancellation requirements, and registration of the club with the Attorney General's Consumer Protection Division, inapplicable to these facilities.

HOUSE FILE 2454 - Motor Vehicle Proof of Financial Responsibility (full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act amends provisions relating to motor vehicle mandatory financial liability coverage legislation passed during the 1997 Legislative Session.

The Act corrects inconsistencies with respect to the applicable fine for driving a motor vehicle on the highways of this state without financial liability coverage. The Act clarifies that the scheduled fine for a violation is $100. The fine is increased to $250 effective July 1, 1999, unless there is an accident, in which the case the fine will be $500, pursuant to the 1997 legislation.

The Act provides that the mandatory financial liability coverage requirements apply to all motor vehicles driven on the highways of this state rather than just those vehicles registered in this state.

The Act provides that, in addition to other current enforcement options, a driver of a motor vehicle who is unable to provide proof of financial liability coverage shall only be issued a citation, if a citation is issued instead of a warning memorandum, unless the driver has been previously charged and cited for a violation. Currently, the peace officer may issue a memorandum; issue a citation; issue a citation and remove the motor vehicle's license plates and registration receipt; or issue a citation, remove the plates and registration receipt, and impound the motor vehicle.

The Act provides that an owner or driver of a vehicle registered in this state who is charged with a violation resulting in the removal of the license plates of the motor vehicle, and who provides proof that financial liability coverage was in effect for the motor vehicle at the time the person was stopped and cited, or, if the driver is not the owner of the motor vehicle, proof that financial liability coverage was in effect for the driver with respect to the motor vehicle, shall be given a receipt indicating that such proof was provided. Upon providing a copy of such receipt to the county treasurer and the payment of a $15 administrative fee, the county treasurer shall issue new license plates and registration to the person.

The Act provides that if the motor vehicle is not registered in this state and the driver is a nonresident, the peace officer shall issue a warning memorandum or a citation. A nonresident driver issued a citation who provides proof to the clerk of court within 30 days of the issuance of the citation that financial liability coverage was in effect at the time the person was stopped and cited shall be given a receipt indicating that such proof was provided, and the citation shall be dismissed.

The Act provides that the holder of a security interest in a motor vehicle that is impounded is to be notified of the impoundment within 72 hours of the impoundment and has the right to claim the motor vehicle upon the payment of all fees. The Act provides that if the value of the motor vehicle is less than the security interest, all fees are to be divided equally between the lienholder and the political subdivision impounding the motor vehicle.

The Act also provides a specific financial responsibility requirement for motor vehicle wholesalers.

The Act takes effect April 17, 1998, and is retroactively applicable to July 1, 1997.

HOUSE FILE 2517 - Healthy and Well Kids in Iowa Program (full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act establishes the Healthy and Well Kids in Iowa (HAWK-I) Program, beginning January 1, 1999, to provide health insurance for children under 19 years of age who are eligible under Title XXI of the federal Social Security Act. The Act establishes a board to adopt rules for, establish policy for, and direct the program.

The Act designates the Director of the Department of Human Services to implement the program and establishes the duties and powers of the director and the department under the program. The Act provides that an administrative contractor is to be selected through a request for proposals process to administer the program and lists the duties of the administrative contractor, defines participating insurers and designates their duties, and describes the benefit package to be provided under the program. The Act also provides that a child is eligible for the program if the adjusted gross income of the child's family does not exceed 185 percent of the federal poverty level and provides for cost-sharing by certain participants in the program. A participant whose adjusted gross income is at or below 150 percent of the federal poverty level is subject to cost-sharing which does not exceed cost-sharing under the Medical Assistance Program. A participant whose family's adjusted gross income is between 150 and 185 percent of the federal poverty level is subject to a minimum amount of cost-sharing, not to exceed 5 percent of the family's adjusted gross income.

The Act also expands the Medical Assistance (Medicaid) Program, beginning July 1, 1998, to include children whose family income does not exceed 133 percent of the federal poverty level.

The Act repeals the Iowa Healthy Kids Program, Code Chapter 514H, as the HAWK-I Program replaces such a program.

The Act takes effect May 14, 1998.

RELATED LEGISLATION

SENATE FILE 2113 -- Driver and Motor Vehicle Licensing, Reporting, and Registration (Complete summary under TRANSPORTATION.)

This Act changes the terminology for motor vehicle license, allows an operator's liability insurance information to be made available to certain persons, and changes the purpose for which the department inspects specially constructed and reconstructed vehicles.

SENATE FILE 2321 -- Confidentiality of Records and Reports of Labor Commissioner (Complete summary under STATE GOVERNMENT.)

This Act makes confidential certain records and reports held by the Labor Commissioner of the Division of Labor Services of the Department of Workforce Development relating to safety or health violations inspections requests, consultation records, and citation and noncompliance notices.

SENATE FILE 2404 -- Cooperatives (Complete summary under AGRICULTURE)

This Act amends Code Chapter 501, which provides for cooperative corporations that hold agricultural land in this state. The Act changes a number of terms used in the chapter, including changing "cooperative corporation" to "cooperative," provides for persons eligible to hold an interest in a cooperative organized under the chapter, and specifically includes a number of provisions which are similar to provisions governing corporations and, prior to the enactment of the Act, were incorporated within Code Chapter 501 by reference.

SENATE FILE 2410 -- Human Services Appropriations and Related Provisions (Complete summary under APPROPRIATIONS.)

This Act makes appropriations to the Department of Human Services and includes provisions involving the Healthy and Well Kids - Iowa (HAWK-I) Program.

SENATE FILE 2416 -- Utilities -- Property Tax Replacement and Statewide Property Tax (Complete summary under TAXATION.)

This Act generally replaces the current central property tax assessment procedures utilized by the Director of Revenue and Finance in valuing property of entities involved primarily in the production, delivery and transmission of electricity and natural gas within this state, with excise taxes on electricity and natural gas, and a statewide property tax on certain property of such entities. The Act generally takes effect January 1, 1999, and is applicable to property tax assessment years beginning on or after January 1, 1999, and to replacement tax years beginning on or after January 1, 1999. Effective May 14, 1998, the Act creates a task force to study the effects of the replacement tax.

HOUSE FILE 382 -- Validity of Certain Marriages (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act requests that the Legislative Council establish a task force to review issues facing domestic partners including, but not limited to, property rights, contract rights, employment benefits, insurance coverage, and retirement benefits.

HOUSE FILE 721 -- New Jobs and Income Program -- Insurance Premium Tax Credit (Complete summary under ECONOMIC DEVELOPMENT. )

This Act authorizes an eligible business under the New Jobs and Income Program to claim an insurance premium tax credit of up to a maximum of 10 percent of the new investment directly related to new jobs created by the location or expansion of an eligible business under the program. A similar insurance premium tax credit is allowed for a business that adds new jobs as a result of a training program handled by a community college.

HOUSE FILE 2120 -- Self-Service Displays for Cigarettes and Tobacco Products (Complete summary under HEALTH & SAFETY.)

This Act provides legislative intent relative to access of a minor to cigarettes and tobacco products. Beginning January 1, 1999, the Act also prohibits the use of self-service displays, which allow the buyer to take possession of the product without the seller being present, for the sale of, or offering for sale of, cigarettes or tobacco products in a quantity of less than a carton. Vending machine sales allowed by law are not affected. The Act provides that a retailer who violates the Act is subject to revocation of the retail permit.

HOUSE FILE 2135 -- Mid-America Port Commission Agreement (Complete summary under ECONOMIC DEVELOPMENT.)

This Act provides that the Mid-America Port Commission Agreement is entered into and enacted into law with the State of Illinois and the State of Missouri if those states join the agreement in substantially the same form. The agreement provides that the Mid-America Port Commission shall be governed by a nine-member port commission and provides a list of certain powers and duties the port commission shall have related to the operation of the port commission. The Act provides that the Iowa counties of Lee, Henry and Des Moines shall be included in the jurisdiction of the agreement.

HOUSE FILE 2168 -- Sale of Interest in Corporation Under Iowa Business Development Finance Act (Complete summary under ECONOMIC DEVELOPMENT.)

This Act provides the Business Development Finance Corporation with the power and authority to sell any stock or ownership interest of any corporation formed under Code Chapter 15E, "Development Activities"; Division 13, "Business Development Finance." Any proceeds of the sale of stock or ownership interest shall be deposited in the Strategic Investment Fund to be allocated by the Iowa Economic Development Board to programs for which the assets of the fund may be used.

HOUSE FILE 2331 -- Public Utilities -- Cost Reviews (Complete summary under ENERGY & PUBLIC UTILITIES.)

This Act amends provisions relating to the natural gas supply and cost review, and the electric energy supply and cost review, of rate-regulated public utilities.

HOUSE FILE 2335 -- Agricultural Landholding Restrictions and Reporting Requirements (Complete summary under AGRICULTURE.)

This Act creates a new Code chapter providing additional ways for corporate entities to acquire and hold agricultural land, including corporations, limited for liability companies, and cooperative associations. Under the Act, a business can hold agricultural land if it qualifies as a farmers entity, including a networking farmers entity, a farmers cooperative association, or a farmers cooperative limited liability company.

HOUSE FILE 2400 -- Mechanic's Liens (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act amends Code provisions regarding mechanic's liens, adding liens for rented material used in the course of alteration or construction of an owner's building, improvement or land; and for labor furnished to a subcontractor. The Act also amends mechanic's lien notification procedures for labor or materials furnished to a subcontractor, and the amount of a lien in the case of an owner-occupied dwelling.

HOUSE FILE 2498 -- Appropriations -- Administration and Regulation (Complete summary under APPROPRIATIONS.)

This Act provides for the phase-out of the Community Health Information System and repeals a provision relating to recommendations from the Insurance Division of the Department of Commerce for implementation of, and a financing mechanism for, health care coverage for Iowans. Funds are also provided for a Health Insurance Reform Program and a Health Insurance Oversight Program.

HOUSE FILE 2513 -- Taxation -- Miscellaneous Provisions (Complete summary under TAXATION.)

Division I of this Act eliminates the taxation for individual income tax purposes of certain qualifying net capital gains, including gains from the sale of certain livestock and timber and business real property. Prior law allowed only a 45 percent deduction. This Division also eliminates the material participation requirement from sales of businesses to lineal descendants for purposes of the taxation of net capital gains from these sales; and provides for complete exemption from the state individual income tax of capital gains from each capital asset when it is part of a sale of the taxpayer's business if the sale is made to a lineal descendant of the taxpayer. This Division takes effect May 6, 1998, and applies retroactively to January 1, 1998, for tax years beginning on or after that date.

© 1998 Cornell College and League of Women Voters of Iowa

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Last update: THU July 30 1998
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