1999 Summary of Legislation Published by the Iowa General Assembly -- Legislative Service Bureau

BUSINESS, BANKING AND INSURANCE

BUSINESS, BANKING AND INSURANCE LEGISLATION

SENATE FILE 8 - Health Insurance Coverage of Diabetes(full text of act)

BY JENSEN. This Act requires that a policy or contract providing for third-party payment or prepayment of health or medical expenses must provide coverage for the costs associated with certain equipment, supplies, and self-management training and education for the treatment of all types of diabetes mellitus when prescribed by certain licensed physicians. The Act is applicable to third-party payment provider contracts or policies delivered, issued for delivery, continued, or renewed in this state on or after July 1, 1999.

SENATE FILE 47 - Priority of Funding Agreement Claims Against Insurer Assets(full text of act)

BY COMMITTEE ON COMMERCE. This Act provides that a funding agreement issued by a life insurance company is a class 2 claim for purposes of the distribution of claims from the assets of an insurer under Code Chapter 507C, relating to the supervision, rehabilitation and liquidation of an insurer. The issuance of funding agreements by life insurance companies was specifically authorized during the 1998 Regular Session. Under the 1998 legislation, funding agreements were classified as a class 3 claim under Code Section 507C.42. Class 3 claims under that section are certain claims of the federal government. Class 2 claims are claims under insurance policies.

The Act takes effect February 10, 1999, and applies retroactively to July 1, 1998, the effective date of the 1998 legislation.

SENATE FILE 95 - Proof of Motor Vehicle Financial Liability Coverage - Parking Lots(full text of act)

BY COMMITTEE ON TRANSPORTATION. This Act provides that it is to be conclusively presumed that a motor vehicle, driven upon a parking lot available to the public without charge or which is available to customers or invitees of a business or facility without charge, was driven on the highways of this state in order to enter the parking lot and is subject to the state's mandatory proof of financial responsibility requirements.

SENATE FILE 233 - Records of Financial Institutions - Preservation(full text of act)

BY COMMITTEE ON COMMERCE. This Act amends provisions relating to the preservation and admissibility of records of banks, credit unions and savings and loan associations. Each type of financial institution is subject to substantially the same amendments with respect to the admissibility and effect of certain copies or reproductions.

The Act provides that a printout or other tangible output readable by sight which is shown to accurately reflect data contained in a record which is a promissory note, negotiable instrument or letter of credit, which contains a signature made or created by electronic or digital means such that it is stored by a computer or similar device, is deemed to be an original of such record for purposes of presenting the record for payment, acceptance or honor, or for purposes of a judicial proceeding involving a claim based upon such record.

With respect to banks and credit unions, the Act provides that a copy of a record is deemed to be an original and shall be treated as an original record in a judicial or administrative proceeding for purposes of admissibility in evidence. Language already exists concerning savings and loan associations regarding a copy of a record being deemed to be an original and treated as an original record in a judicial or administrative proceeding for purposes of admissibility in evidence.

SENATE FILE 249 - Operation and Regulation of Insurance Companies(full text of act)

BY COMMITTEE ON COMMERCE. This Act amends provisions relating to the regulation of insurance companies by the Insurance Division of the Department of Commerce. The Insurance Commissioner heads the division.

Code Section 505.17 is amended to provide that information, records and documents utilized for the purpose of, or in the course of, investigation, regulation or examination of an insurer or insurance holding company, received by the division from some other governmental entity which treats such information, records and documents as confidential, are confidential, cannot be disclosed by the division, and are not subject to subpoena. Such information, records and documents do not constitute a public record under Code Chapter 22.

Code Chapter 508B regulates conversion from mutual companies to stock companies. Code Section 508B.1 is amended by providing that the definition of a "reorganized company" includes, in addition to a mutual company which has been converted into a domestic stock life insurance company, a mutual company which has been converted and merged and a mutual company which has been converted and consolidated into such a stock company.

Code Section 508B.6 is amended by eliminating the requirement that a plan of conversion from a mutual life insurance company to a stock life insurance company be approved by the division prior to being submitted to the policyholders for approval.

Code Section 508B.12 is amended to provide that at any time prior to the conversion of a mutual company into a domestic stock life insurance company, the mutual company's board of directors may amend the conversion plan. An amendment to the conversion plan is subject to the prior approval of the division. Currently, a board of directors may amend such plan at any time before approval of the plan.

Code Section 508B.13 is amended to provide that a person, other than the reorganized company, an employee benefit plan or employee benefit trust sponsored by the reorganized company, or as otherwise specifically provided for in the plan of conversion, cannot directly or indirectly acquire or offer to acquire the beneficial ownership of more than 5 percent of any class of voting security of the reorganized company. In addition, the Act provides that a person, other than the reorganized company or other than an employee benefit plan or employee benefit trust sponsored by the reorganized company, who acquires 5 or more percent of any class of voting security of the reorganized company prior to the conversion or as specifically provided for in the plan of conversion, cannot directly or indirectly acquire or offer to acquire the beneficial ownership of additional voting securities of the reorganized company, unless the acquisition is approved by the commissioner as not being contrary to the interests of the policyholders of the reorganized company or its life insurance company subsidiary and by the board of directors of the reorganized company. Currently, a person is prohibited from acquiring or offering to acquire the beneficial ownership of a reorganized company unless the acquisition is made pursuant to a plan approved by the commissioner, made pursuant to the plan of conversion, or made after the initial public offering from a broker or dealer of registered securities with the Securities and Exchange Commission at the quoted price on the date of purchase.

Code Section 508B.14 is amended to provide that the commissioner's order approving or disapproving a plan of conversion is to be considered final agency action under Code Chapter 17A, the Iowa Administrative Procedure Act.

Code Sections 511.28 and 515.74 provide for the mailing of notice or process to the commissioner on behalf of a foreign insurance company. Notice or process received by the commissioner prior to 10 a.m. is to be forwarded the same working day, and notice or process received after 10 a.m. is to be forwarded the next working day. Currently, the time for determining when service or process is forwarded is 12 noon.

Code Section 513B.13 is amended to direct the board of the Iowa Small Employer Health Reinsurance Program to review the program on an ongoing basis and make recommendations as to the continued cost-effectiveness of the program.

Code Section 513C.7, relating to the availability of coverage to an individual under a basic or standard health benefit plan, is amended to exclude from the guarantee of coverage an individual who is covered, or is eligible for coverage, under a health benefit plan, provided by an employer, as a spouse or dependent of an employee. The section is also amended to exclude from qualifying coverage periods of coverage under medical assistance provided pursuant to Code Chapter 249A and Medicare coverage provided pursuant to Title XVIII of the federal Social Security Act.

Code Section 514B.4 is amended to provide that if a health maintenance organization (HMO) is accredited by the National Committee on Quality Assurance, or another accreditation entity approved by the commissioner, an external peer review established under rules adopted of the commissioner shall not be applicable. However, at the discretion of the commissioner, an on-site inspection of the HMO may be conducted.

Code Section 515.26 is amended to eliminate the requirement that a director of a domestic stock property and casualty insurance company own stock in such company as a prerequisite to becoming and remaining a director.

Code Section 515.35 is amended to provide that cash used to collateralize a loan of stocks or obligations held by an insurance company may be reinvested in either individual securities or a pooled fund comprised of individual securities. If the reinvestment is made in individual securities, such securities must mature in less than 90 days. If the reinvestment is made in a pooled fund comprised of securities, the average maturity of such securities must be less than 90 days. Individual securities and securities comprising a pooled fund must be investment grade.

Code Section 518.2 is amended to provide that articles of incorporation of a county mutual insurance association and any amendments to such articles which are submitted to the commissioner must be approved by the commissioner and certified by the Attorney General.

Code Section 518.17, relating to reinsurance, is amended to add language currently contained in Code Section 518.25, which relates to reinsurance. Similar language is struck from Code Section 518.25.

New Code Section 518A.1A is created and provides that an entity seeking to organize as, or convert to, a state mutual association must submit a plan of organization to the commissioner for approval.

Code Section 518A.8 is amended by striking language that requires a state mutual insurance association to submit its articles of incorporation, bylaws and policy form to the commissioner, and inserting language relating to the submission and approval of such association's articles of incorporation, which is the same as that provided for county mutual insurance associations in Code Section 518.2, as amended in this Act.

Code Section 518A.37 is amended to provide that a state mutual insurance association must maintain a surplus, the greater of $100,000 or 0.1 percent of the gross property risk in force. Currently, such associations must maintain a surplus of $100,000. Additionally, the Act eliminates a provision regarding reinsurance. Similar reinsurance language is incorporated in the amendment to Code Section 518A.44.

Code Section 518A.44, relating to limitations on risks applicable to a state mutual insurance association, is eliminated and replaced by language relating to reinsurance. The new language provides that a state mutual insurance association may reinsure a part or all of its risks. The Act requires reinsurance sufficient to protect the financial stability of the state mutual association. Reinsurance coverage obtained by an association cannot expose the association to a loss of more than 15 percent from surplus in any calendar year. The commissioner is authorized to require additional reinsurance if necessary to protect the policyholders of the association.

The Act repeals several sections pertaining to state mutual insurance associations, including sections relating to advance assessments for losses and expenses, authorization for state mutual insurance associations to issue policies of fixed premiums, special assessments associated with damages paid for hail losses, and receivership of state mutual insurance associations (such receivership would be governed by Code Chapter 507C, relating to insurers supervision, rehabilitation and liquidation).

SENATE FILE 276 - Health Care Service and Treatment Coverage(full text of act)

BY COMMITTEE ON HUMAN RESOURCES. This Act creates several new Code sections and a new Code chapter relating to the provision of, and evaluation of, health care services provided to covered individuals in this state.

The Act provides for continuation of coverage by a carrier, organized delivery system, or plan established pursuant to Code Chapter 509A for public employees, of costs associated with a health care provider providing continued care to a covered person who is in the second or third trimester of pregnancy. Such coverage is to continue through postpartum care if the carrier, organized delivery system, or plan terminates its contract with the health care provider. The Act provides that a covered person who makes an involuntarily change in health plans may request that the new health plan cover services of the covered person's physician specialist, who is not a participating health care provider under the new health plan, if the covered person is in the second or third trimester of pregnancy. Such coverage shall continue through postpartum care related to the child birth and delivery. A carrier, organized delivery system, or plan which terminates the contract of a participating health care provider for cause is not liable for health care services provided to a covered person following the date of termination.

The Act provides that a carrier, an organized delivery system, or a plan shall not prohibit a participating provider from, or penalize a participating provider for, discussing treatment options with a covered individual, notwithstanding the carrier's, organized delivery system's, or plan's position on such treatment option; or advocating on behalf of a covered individual within a review or grievance process established by the carrier, organized delivery system, or plan, or established by a person contracting with the carrier, organized delivery system, or plan.

The Act provides that a carrier, an organized delivery system, or a plan which provides coverage for emergency services is responsible for charges for emergency services, as defined in the Act, provided to a covered individual, including services furnished outside the provider network. Coverage for emergency services is subject to the terms and conditions of the health care benefit plan or contract. Prior authorization for emergency services shall not be required and all services necessary to evaluate and stabilize the covered individual shall be considered covered emergency services.

The Act provides that if a carrier, an organized delivery system, or a plan terminates its contract with a participating health care provider, a covered individual undergoing a specified course of treatment for a terminal illness or a related condition, and with the recommendation of the covered individual's treating physician licensed under Code Chapter 148, 150 or 150A, may continue to receive treatment from the covered individual's physician for the terminal illness or a related condition, for a period of up to 90 days following the termination. Payment for covered benefits and the benefit level shall be according to the terms and conditions of the contract.

New Code Section 514F.4, created by the Act, provides that a third-party payor, which provides health care benefits to a covered individual residing in this state, shall not conduct utilization review, either directly or indirectly, under a contract with a third party who does not meet the requirements established for accreditation by the Utilization Review Accreditation Commission, National Committee on Quality Assurance, or another national accreditation entity recognized and approved by the Commissioner of Insurance. The new Code section does not apply to any utilization review performed solely under contract with the federal government for review of patients eligible for services under Title XVIII of the federal Social Security Act (Medicare), the Civilian Health and Medical Program of the uniformed services, or any other federal employee health benefit plan.

The Act provides that a carrier, an organized delivery system, or a plan that limits coverage for experimental medical treatment, drugs or devices shall develop and implement a procedure to evaluate experimental medical treatments and shall submit a description of the procedure to the Division of Insurance. The procedure shall be in writing and must describe the process used to determine whether the carrier, organized delivery system, or plan will provide coverage for new medical technologies and new uses of existing technologies. The procedure, at a minimum, shall require a review of information from appropriate government regulatory agencies and published scientific literature concerning new medical technologies and new uses of existing technologies.

The Act creates new Code Chapter 514J, relating to an external review process, to provide an appeal process for an individual receiving health care coverage who is denied covered health care services or treatment. The new Code chapter includes all of the following:

• The intent of the General Assembly to provide a mechanism for the appeal of a denial of coverage based on medical necessity.
• A provision permitting an enrollee or the enrollee's treating health care provider to file a written request for external review of a denial of coverage. The request must be filed within 60 days of the receipt of the denial of coverage and accompanied by a $25 filing fee. The fee may be waived by the commissioner for good cause. The filing fee is to be refunded to the enrollee if the enrollee prevails in the external review process.
• Eligibility requirements for the certification of the external review request. The commissioner shall have two business days from receipt of the request for external review to certify the request. The commissioner must certify the request if the enrollee was covered by the carrier or organized delivery system at the time the service or treatment was proposed, the enrollee has been denied coverage based on a determination that the proposed service or treatment does not meet the definition of medical necessity as defined in the enrollee's evidence of coverage, the enrollee or the enrollee's treatment provider has exhausted all internal appeal mechanisms, and the written request for external review was filed within 60 days of receipt of the coverage denial.
• Provisions relating to independent review entities. Independent review entities that may perform external review are to meet certain criteria and be certified by the commissioner, and may include medical peer review organizations and nationally recognized health experts or institutions.
• An external review process. The Act provides that the carrier or organized delivery system, within three business days of receipt of an eligible request for external review, shall select an independent review entity from the list certified by the commissioner; notify the enrollee and the enrollee's treatment provider of the independent review entity, and of the enrollee's and the enrollee's treatment provider's right to submit additional information; provide any information submitted to the carrier or organized delivery system by the enrollee or the enrollee's treating health care provider in support of the request for coverage of a service or treatment; and provide any other relevant documents used by the carrier or organized delivery system in determining whether the proposed service or treatment should have been provided. The independent review entity is to submit its decision as soon as possible, but not more than 30 days from the independent review entity's receipt of the request for review.
• A requirement that an expedited review be conducted within 72 hours if the enrollee's treating health care provider states that delay would pose an imminent or serious threat to the enrollee.
• A requirement that all reasonable fees and costs of the independent review entity be paid by the carrier or organized delivery system.
• A provision directing each carrier and organized delivery system to file, with the commissioner, an annual report including the number of external reviews requested, the number of external review requests certified by the commissioner, and the number of coverage decisions upheld by an independent review entity.
• Immunity for an independent review entity from liability for damages arising out of a determination, unless the determination is made in bad faith or involves gross negligence.
• That the standard of review to be used by an independent review entity is whether the health care service or treatment denied by the carrier or organized delivery system was medically necessary as evidenced by the enrollee's evidence of coverage, and consistent with clinical standards of medical practice.
• That the review decision by the independent review entity is binding upon the carrier and the organized delivery system and that the findings of fact by the independent review entity are conclusive and binding on appeal and in any subsequent proceeding or action involving the same facts. The enrollee or the enrollee's treating health care provider may appeal the independent review entity's decision in Polk County District Court or the district court in the county in which the enrollee resides. A petition for judicial review must be filed within 15 business days after issuance of the review decision.

The Act requires a health maintenance organization, an organized delivery system, or an insurer using a preferred provider arrangement to provide enrollees at the time of enrollment, and prospective enrollees upon request, written information as specified by rule of the commissioner and Director of Public Health. The Act enumerates information that must be included by rule, but to which the rules are not limited. The Act also requires the commissioner and the Director of Public Health to publish an annual consumer guide to provide key information relating to plan differences.

The Act provides that new Code Chapter 514J, relating to the external review process, takes effect January 1, 2000.

SENATE FILE 404 - Real Estate Licensees and Clients - Payment for Services(full text of act)

BY COMMITTEE ON COMMERCE. This Act relates to the relationship between a real estate licensee and a client, and the payment of a commission, portion of a commission, or other valuable consideration to certain persons.

This Act amends Code Section 543B.34 and provides that the Real Estate Commission may suspend or revoke a real estate license if the licensee is found to be guilty of paying a commission, or other valuable consideration for performing any acts of a real estate broker or salesperson, to another licensed person knowing that such person will pay a portion or all of such commission or consideration to a person who is not licensed by the Real Estate Commission.

The Act creates new Code Section 543B.60A to provide that a licensee shall not require that a person, party, client, or customer negotiate a listing or purchase agreement or contract of real estate through a particular broker or group of brokers, salesperson or group of salespersons, or agent or group of agents; pay a commission, or portion of a commission, or other valuable consideration to a person or other licensee; request a referral fee after a bona fide offer to purchase is accepted; or request a referral fee after a bona fide listing agreement has been signed. A licensee who violates this section is subject to license suspension or revocation. Additionally, a person found guilty of a first offense is guilty of a simple misdemeanor.

SENATE FILE 405 - Year 2000 Liability Limitation - VETOED BY THE GOVERNOR(full text of act)

BY COMMITTEE ON COMMERCE. This bill would have limited the liability, for a claim based upon a year 2000 problem, of financial institutions, public utilities, and other persons, except for persons who have manufactured or produced for sale or modified for resale any information technology.

The bill defined "year 2000 problem" as an event, circumstance, disruption, or other problem that prevents information technology from accurately processing, calculating, comparing, or sequencing date or time data or information from, into or between the 20th and 21st centuries; from, into or between the years 1999 and 2000; or with respect to leap year calculations. The bill also provided that a year 2000 problem includes an inability of a financial institution to perform its intended or requested functions because of a problem that is the result of a year 2000 problem encountered by a third party, including, but not limited to, the failure of a governmental entity to provide data or information, transportation delays, energy failure, or communications failure.

The bill would have established an affirmative defense for financial institutions and public utilities, and a "reasonable efforts" defense for all defendants.

The bill would have limited certain adverse actions that would directly or indirectly affect real or personal property, including a foreclosure proceeding, default or other adverse action against a person due to a failure of payment or performance caused by a year 2000 problem.

SENATE FILE 406 - Entities and Subject Matter Regulated by Insurance Division(full text of act)

BY COMMITTEE ON COMMERCE. This Act amends a number of provisions regulating entities under the authority of the Insurance Division of the Department of Commerce, including securities, business opportunities, cemetery merchandise, and residential service contracts.

Code Section 502.202 exempts certain entities from registration and filing requirements of the Securities Law. The Act exempts cooperatives organized under Code Chapter 501.

Code Section 502.302 imposes a registration fee upon investment advisers and investment adviser representatives. The Act provides that in the case of a sole proprietorship, an investment adviser representative is not required to pay a fee if the person is also the investment adviser.

Code Section 502.304 provides for the denial, revocation or suspension of registration as a broker-dealer or agent. The section permits the division to institute a revocation or suspension proceeding following withdrawal from registration within one year after withdrawal. The Act provides that the disciplinary action may be based on any action that could have supported disciplinary action prior to the withdrawal.

Code Section 502.304 is amended to provide that a person directly or indirectly controlling a broker-dealer or agent is subject to the same penalties as the broker-dealer or agent guilty of committing a violation, unless the person proves that the person did not know the facts creating the violation and was not grossly negligent in failing to know the facts.

Code Section 502.305 requires that a person registered as an investment adviser representative between January 1, 1999, and December 31, 2000, is not required to pass an examination in order to be registered. The Act reduces that period to December 31, 1999.

Code Section 502.503 is amended to provide that a person who aids and abets in an effort to commit fraud is liable to the same extent as the person who commits the fraud.

Code Section 502.504 provides time limits for rights of action brought under the chapter. The Act provides that the section does not apply to actions filed by the division necessary to enjoin the act or practice and to enforce compliance with Code Chapter 502 or a rule or order adopted or issued pursuant to the chapter.

Code Section 502.604 provides that the district court may enjoin an act or practice and enforce compliance with Code Chapter 502 or rules adopted under that chapter. The Act provides that the court may grant an asset freeze, accounting, writ of attachment, writ of general or special execution, or other equitable or ancillary relief. The Act also provides that the court may order the division to take charge and control of a party's property, including but not limited to managing rents and profits, collecting debts, and acquiring and disposing of property.

Code Section 523A.6 provides that the seller of funeral services or funeral merchandise must comply with Code Chapter 555A (regulating door-to-door sales). This Act provides that the provisions of Code Chapter 555A apply to prepaid contracts for the sale of funeral services or merchandise.

Code Section 523B.2 provides that it is unlawful to offer or sell a business opportunity in this state unless the business opportunity is registered or exempt from registration under Code Chapter 523B. The section permits the division to issue an order suspending or revoking the registration if the administrator finds that the seller does not have a minimum net worth of $25,000. The Act increases the net worth requirement to $50,000.

Code Section 523C.6 requires a service company to maintain a minimum net worth, and defines "net worth" as the excess of all assets over all liabilities including required reserves computed in accordance with generally accepted accounting principles. The Act eliminates this definition.

Code Section 523C.8 prohibits a service company from paying a commission or other consideration as an inducement or compensation for the issuance, purchase or acquisition of a residential service contract. The Act permits the division to adopt rules identifying types of fees, payments or reimbursements that would not be determined to constitute an inducement or compensation.

Code Section 523E.6 requires the seller of cemetery merchandise to comply with Code Chapter 555A. Code Section 523E.1 provides that certain requirements, relating to placing funds in trust from the sale of cemetery merchandise, do not apply to payments for merchandise delivered to the purchaser. The Act eliminates a number of conditions required for delivery.

Code Section 523I.6 provides for the powers and duties of perpetual care cemeteries. The Act requires the cemetery to provide services necessary for the installation or burial of vaults or other similar merchandise sold by the cemetery.

SENATE FILE 410 - Viatical Settlement Contracts - Sale as Investments(full text of act)

BY COMMITTEE ON COMMERCE. This Act provides specific authority for the regulation of viatical settlement contracts when they are sold as investments.

Code Section 502.102 is amended to provide a definition of "viatical settlement contract." The Code section is amended to provide that, with respect to a viatical settlement contract, "issuer" means a person involved in creating, transferring or selling to an investor any interest in such a contract, including but not limited to fractional or pooled interests, but does not include an agent or a broker-dealer. The Code section is also amended to define a viatical settlement contract as a security.

Code Section 502.202 is amended to establish new exemptions for certain sales of viatical settlement contracts, including sales to licensed insurance companies, an isolated assignment to a family member or other individual, an assignment to a financial institution as collateral, or the acceleration of benefits under the terms of the policy or contract.

SENATE FILE 413 - Safe Deposit Box Access - Death of Owner or Lessee(full text of act)

BY COMMITTEE ON COMMERCE. This Act establishes requirements for the opening of a safe deposit box of a deceased owner or lessee of such safe deposit box. The Act requires a state bank or credit union to permit a person named in and authorized by a court order to open, examine and remove the contents contained in a safe deposit box. If a court order is not delivered to the state bank or credit union, the Act authorizes certain other persons to have access to the safe deposit box, including a co-owner or co-lessee of the safe deposit box; a person designated in the safe deposit box agreement or lease to have access to the safe deposit box upon the death of the lessee; an executor or administrator of the estate of a deceased owner or lessee upon delivery to the state bank or credit union of a certified copy of letters of appointment; a person named as an executor in a purported will; and a trustee of a trust created by the deceased owner or lessee upon proof of the validity of the trust, that the trustee is the duly authorized and acting trustee under the trust, that the trust property includes property in the safe deposit box, and that to the knowledge of the trustee, the trust has not been revoked.

The Act provides that if the state bank or credit union has knowledge of the death of the owner or lessee of the safe deposit box, and if a person authorized access to the safe deposit box does not request such access within the 30-day period immediately following the date of death of the owner or lessee of a safe deposit box, the safe deposit box may be opened by or in the presence of two employees of the state bank or credit union. If the safe deposit box is opened, the bank or credit union employees present at such opening must remove any purported will of the deceased owner or lessee; unseal, copy and retain in the records of the state bank a copy of a purported will removed from the safe deposit box, place an additional copy back in the safe deposit box, and reseal the safe deposit box; and send the original of a purported will by registered or certified mail or personally deliver such will to the district court in the county of the last known residence of the deceased owner or lessee. If the residence is unknown or last known and not in this state, the purported will shall be sent by registered or certified mail or personally delivered to the district court in the county where the safe deposit box is located.

The Act also provides that a state bank or credit union has no duty to inquire about the death of the owner or lessee of a safe deposit box and has no duty to open or cause to be opened a safe deposit box of a deceased owner or lessee. Upon compliance with the requirements established, the state bank or credit union is not liable to any person as a result of the opening of the safe deposit box, removal and delivery of the purported will, or retention of the unopened safe deposit box and contents.

HOUSE FILE 210 - Business Opportunity Promotions - Excluded Transactions(full text of act)

BY COMMITTEE ON JUDICIARY. This Act excludes certain business transactions from the definition of "business opportunity" under the Business Opportunity Law in Code Chapter 523B. These transactions include the following:

• The offer or sale of a business opportunity to an ongoing business where the seller provides a line of goods or services to the purchaser.
• The offer or sale of a business opportunity that involves a marketing plan made in conjunction with the licensing of a federally registered trademark or federally registered service mark provided the seller has a minimum net worth of $1 million.
• The offer or sale of a business opportunity by an executor, administrator, sheriff, receiver, trustee in bankruptcy, guardian, or conservator, or a judicial offer or sale of a business opportunity.
• The offer or sale of an ongoing business, operated by the seller, which is to be sold in its entirety.
• The renewal or extension of a business opportunity contract or agreement entered into under Code Chapter 523B or prior to July 1, 1981.

The Act takes effect April 29, 1999, and applies retroactively to July 1, 1998.

HOUSE FILE 330 - Bank Holding Company Acquisitions - State Bank Loans(full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act amends provisions relating to the regulation and operation of banks in this state. Code Section 524.544 is amended to require a person that would become a bank holding company upon the acquisition of a state bank to make written application to the Superintendent of Banking for a certificate of approval for the proposed acquisition. Currently, such person would not have to make an application to the superintendent in the same manner as any other person proposing to make an acquisition when the person would not become a bank holding company.

Code Section 524.904 is amended to permit additional amounts of a loan or extension of credit to one borrower to be secured by existing permissible methods.

HOUSE FILE 345 - Demand Deposit Accounts With Lines of Credit - Fees(full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act amends Code Section 537.2501 to provide that in addition to other permissible charges under the Consumer Credit Code, a creditor may charge a reasonable annual account maintenance fee, payable in advance, for the privilege of maintaining a demand deposit account with a line of credit that may be accessed by the account holder writing a check.

HOUSE FILE 375 - Open-End Credit and Credit Card Disclosures - Reports Eliminated(full text of act)

BY ALONS. This Act repeals Code Section 12.27, which requires the Treasurer of State to adopt rules to implement the filing of information relating to open-end credit accounts and credit cards.

The Act also repeals Code Section 535.15, which requires a financial institution that accepts an application for open-end credit from a person who resides in this state to annually disclose for each type of open-end account granted the annual percentage rate charged on the open-end credit account; the amount of fee charged or assessed, if any, by the person as a condition for granting or opening the open-end credit account and the frequency the fee is assessed; and a description of when the finance charge begins to accrue against charges made on the open-end credit account. The Code section also requires a person who accepts an application for a credit card from a person who resides in this state to annually disclose for each type of credit card granted the annual percentage rate charged on the credit card; the amount of the fee charged or assessed, if any, by the person as a condition for issuing the credit card and the frequency by which the fee is assessed; and a description of when the finance charge begins to accrue against charges made on the credit card. The Code section requires a person who is obligated to disclose the above information to file a written report disclosing the information with the Treasurer of State by July 1 of each year.

HOUSE FILE 443 - Consumer Credit Transactions - Fees and Charges(full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act amends Code Chapters 535 and 537 with respect to permissible fees and charges that may be assessed and collected with regard to certain consumer credit transactions, and with respect to crediting payments to consumer credit accounts. Code Section 535.10 is amended to provide that the parties to a home equity line of credit which is not a consumer credit transaction may contract for a delinquency charge under terms no more favorable than those permitted for open-end credit under Code Section 537.2502. The Act provides that a delinquency charge associated with an interest-bearing transaction may be contracted for in an amount not exceeding 5 percent of the unpaid amount of the installment due, up to a maximum of $15.

The Act also provides for crediting payments to a consumer account as of the date of receipt of the payment, unless such payment does not conform to specific requirements established by the creditor for making payments. If the creditor accepts a payment that does not conform to such requirements, the payment must be credited within two days of receipt of that payment.

HOUSE FILE 445 - Rights of Dissenting Shareholders of Banks(full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act establishes certain shareholders' rights with respect to determining the value of shares held by a shareholder who is dissenting to a proposed merger plan by a state bank or to a plan which will result in a state bank becoming a national bank.

The Act provides that in determining the fair value of the shareholder's shares, due consideration shall be given to valuation issues acknowledged and authorized by the Internal Revenue Code, including discounts for minority interests and discounts for lack of marketability.

The Act provides that prior to giving notice of a meeting at which a shareholder would be entitled to assert dissenter's rights, the state bank may seek a declaratory judgment to establish the fair value of shares held by the shareholders. The Act provides the manner in which such value is to be determined and provides for the assessment of court costs, appraiser's fees, and the fees and expenses of the attorney appointed to represent minority shareholders against the bank.

The Act provides that the judgment in the action shall not determine fair value for a share to be less than the stockholders' equity in the bank in its last statement of condition divided by the number of shares outstanding. The fair value determined shall be disclosed to the shareholders in the notice to shareholders of the meeting to approve the transaction that gives rise to dissenters' rights. If the proposed transaction is approved by the shareholders, upon consummation of the proposed transaction, the fair value shall be paid to all shareholders entitled to payment for their shares upon receipt of such shareholders' share certificates.

A corrective amendment to this Act is included in H.F. 782 (see Appropriations).

HOUSE FILE 458 - Auctioneer's Role in Public Sale or Auction of Real Property(full text of act)

BY DIX. This Act provides that an auctioneer must include in an advertisement for an auction of real property, in addition to other required information, the name and address of the real estate broker or attorney who is providing brokerage services for the transaction and who is also responsible for closing the sale of the property.

HOUSE FILE 571 - Deposit of Public Funds - Depository Standards(full text of act)

BY COMMITTEE ON COMMERCE AND REGULATION. This Act amends Code Chapter 12C, relating to the deposit of public funds and the conditions that must be met by a financial institution to be eligible to receive such deposits. The Act subjects a savings and loan association, a savings bank, and any branch of a savings and loan association or savings bank, to substantially the same requirements as a bank. Currently such financial institutions are treated in the same manner as a credit union.

The Act takes effect May 11, 1999. Corrective amendments to this Act are made in H.F. 782 (see Appropriations).

HOUSE FILE 624 - Electronic Commerce Security(full text of act)

BY JACOBS. This Act creates new Code Chapter 554C, relating to electronic commerce security. The purpose of the chapter is to facilitate and promote the use of electronic commerce by providing for the reliable, secure and standardized use, storage and transmission of electronic records. The Act provides that the chapter must be construed consistent with what is commercially reasonable under the circumstances and to effectuate the purposes by eliminating certain barriers; facilitating the electronic filing of documents with state and local government agencies; minimizing the incidence of forged electronic records; establishing uniformity of regulations and standards; and promoting public confidence in the integrity, reliability and legality of electronic records and electronic commerce.

The Act provides that parties may depart from certain requirements of the Act by executing an agreement. However, parties may not depart from certain provisions protecting against fraud. The Act provides that its provisions are not to be construed to require a person to engage in electronic commerce.

The Act provides that information cannot be denied legal effect solely on the grounds that it is in the form of an electronic record or an electronic signature. The Act provides that where a rule of law requires information or a signature to be written, or in writing, an electronic record satisfies that rule of law. This requirement does not apply to the construction of a rule of law that would be inconsistent with its purpose. The Act sets out specific exceptions when an electronic record or electronic signature is inadequate, including the execution of wills, negotiable instruments, deeds, mortgages, and consumer transactions.

The Act provides that in any legal proceeding, the rules of evidence do not deny the admissibility of an electronic record or electronic signature into evidence based on the sole ground that it is an electronic record or electronic signature or is not in its original form. The Act provides that information in the form of an electronic record must be given due evidential weight by the trier of fact.

The Act provides that when a rule of law requires the retention of records, the records may be retained in an electronic format as long as its authenticity can be verified. The Act provides for securing electronic records by utilizing a qualified security procedure that detects changes in the information's content. The Act provides for secure electronic signatures. It provides that an electronic signature shall be considered to be a secure electronic signature if executed utilizing a qualified security procedure. The electronic signature must be authenticated by ensuring that it is unique to the signer, created by the signer, and linked to the electronic record.

The Act provides for a rebuttable presumption when resolving a civil dispute involving a secure electronic record. The Act provides for a rebuttable presumption relating to alterations of an electronic record and the legitimacy of an electronic signature. The effect of the presumption is to place on the party challenging the integrity of a secure electronic record or challenging the genuineness of a secure electronic signature both the burden of going forward with evidence to rebut the presumption and the burden of persuading the trier of fact that the falsity of the presumed fact is more probable than the truth of its existence.

The Act provides that a secure electronic signature is attributable to the person to whom it correlates. The attribution may apply, whether or not authorized, when the signature resulted from the acts of a person who obtained from a source under the control of the alleged signer the information needed to create the signature and the appearance that it came from the person to whom it correlates, access occurred under circumstances constituting a failure to exercise reasonable care, and the recipient reasonably relied, to the recipient's detriment, on the apparent source of the electronic record. Consumer transactions are excluded from this provision.

The Act provides that a security procedure may be certified by the Commissioner of Insurance if the technology utilized by the security procedure is completely open and fully disclosed to the public, the certification is in accordance with the rules adopted by the commissioner, and the certification complies with requirements relating to its trustworthiness.

The Act prohibits a person from publishing or making available a certificate if that person knows that the certification authority listed in the certificate has not issued the certificate, the subscriber listed in the certificate has not accepted the certificate, or the certificate has been revoked or suspended. The Act prohibits a person from knowingly creating, publishing, altering, or otherwise using a certificate for a fraudulent or other unlawful purpose. A person convicted of violating this section is guilty of a serious misdemeanor. A person convicted of a second or subsequent violation is guilty of a class "D" felony. The Act prohibits a person from knowingly misrepresenting the person's identity or authorization in requesting or accepting a certificate or in requesting suspension or revocation of a certificate. A person convicted of violating this section is guilty of a serious misdemeanor. A person convicted of a second or subsequent violation is guilty of a class "D" felony. In addition, a person who suffers a loss resulting from the violation has a civil cause of action.

The Act provides that a certification authority may issue a certificate to a prospective subscriber for purposes of verifying digital signatures. The certificate authority must maintain a trustworthy system for performing its services. The Act provides that a certificate authority must disclose to parties relying upon a certification its certification practice statement, its certification authority certificate, and a notice of a revocation or suspension of its certification authority certificate.

The Act provides that a certification authority may issue a certificate to a prospective subscriber for purposes of verifying digital signatures. The Act provides that by issuing a certificate, a certification authority represents to any person who reasonably relies on the certificate or a digital signature verifiable by the public key listed in the certificate, that the certification authority has issued the certificate in accordance with any applicable certification practice statement. The statement shall provide that the certification authority has complied with all applicable requirements of the Act and that all information in the certificate is accurate. The Act provides for the suspension or revocation of a certificate by the certification authority that issues a certificate.

The Act provides that if a subscriber generates the key pair whose public key is to be listed in a certificate issued by a certification authority and accepted by the subscriber, the subscriber must generate that key pair and maintain and store the private key using a trustworthy system.

The Act provides that by accepting a certificate issued by a certification authority, the subscriber identified in the certificate assumes a duty to persons who reasonably rely on the certificate to exercise reasonable care to retain control of the private key corresponding to the public key listed in the certificate and to prevent its disclosure to an unauthorized person. However, this provision does not apply to consumer transactions.

The Act provides that each government agency must determine if, and the extent to which, it will send and receive electronic records and electronic signatures to and from other persons.

The Act provides that the Commissioner of Insurance, in consultation with the Office of the Attorney General and the Division of Information Technology Services of the Department of General Services, must adopt rules setting forth standards, procedures and policies for the use of electronic records and electronic signatures by government agencies. Rules adopted by the commissioner or a government agency relating to the use of electronic records or electronic signatures must be drafted in a manner designed to encourage and promote consistency and interoperability with similar requirements adopted by government agencies of other states and the federal government. The commissioner must adopt rules by July 1, 2000.

The Act provides that it is the intent of the General Assembly that if the National Conference of Commissioners on Uniform State Laws proposes a Uniform Electronic Commerce Act, the General Assembly shall consider the proposed uniform Act during the session in which it is submitted to the states for consideration or during the next regular session.

HOUSE FILE 777 - Sale of Certain Insurance Products by Motor Vehicle Rental Companies(full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides for the limited licensure of vehicle rental companies that offer and sell certain types of insurance with the rental of vehicles.

The Act provides that a signed, written application for a limited license must be filed with the Commissioner of Insurance. The Act provides that, among other things, the application shall list all intended rental locations of the applicant. The Act provides that the commissioner may revoke or suspend a limited license or impose other penalties for a violation of the provisions of this new Code Chapter 522A, relating to the limited licensure of vehicle companies.

The Act provides that a limited licensee may offer or sell insurance issued by an insurance carrier authorized to do business in this state and only in connection with and incidental to the rental of a vehicle. The Act provides that a limited licensee may offer or sell certain personal accident insurance, certain liability insurance, certain personal effects insurance, and roadside assistance and emergency sickness insurance protection programs.

The Act provides that insurance shall only be sold by a limited licensee if the rental period does not exceed 90 days, certain information is provided and disclosed to prospective renters, evidence of coverage in the rental agreement is disclosed to every renter who elects to purchase such coverage, and a fee, compensation or commission is not paid to an employee by a rental company based solely on the sale of insurance.

The Act provides that a counter employee of a rental company must successfully pass an examination covering the insurance products offered for sale by the rental company. The Act provides that the examination shall be approved and administered by the Insurance Division of the Department of Commerce or an approved vendor. The Act provides that a counter employee shall file an application with the commissioner for an individual license. The Act provides that an individual license, authorization and certification shall expire when the counter employee's employment terminates with the rental company.

The Act provides that a limited licensee shall not be required to treat moneys collected from renters purchasing insurance when renting vehicles as moneys received in a fiduciary capacity. The Act prohibits a limited licensee or a counter employee from advertising, representing or otherwise holding themselves out as a licensed insurer, insurance agent or insurance broker. The Act requires limited licensees to maintain certain records regarding counter employees and sales records. The Act prohibits illegal sales practices as defined in the Code and the Administrative Code.

The Act provides that a limited license issued under new Code Chapter 522A shall be for a term of three years. The Act provides that the fee for a counter employee license shall be $50. The Act provides that combined fees shall not exceed $1,000 in any calendar year.

The Act provides that a vendor qualifies to administer examinations to counter employees if the vendor has at least two years' teaching experience relating to the topic of insurance products.

RELATED LEGISLATION

SENATE FILE 68 -- Mid-America Port Commission - Counties Included (Complete summary under ECONOMIC DEVELOPMENT.)

This Act includes Jefferson, Van Buren and Wapello Counties in the jurisdiction of the Mid-America Port Commission.

SENATE FILE 136 -- Tax Administration and Related Matters (Complete summary under TAXATION.)

This Act, which amends various provisions of state and local tax law, does the following:

• Provides that limited liability companies may join the filing of a composite return. This provision applies retroactively to January 1, 1999, for tax years beginning on or after that date.
• Provides that the 30- or 60-day appeal period, as applicable for the income taxes, sales and use taxes, death taxes, cigarette and tobacco taxes, and the environmental protection charge, commences on the date of the notice.
• Removes the provision that imposes the Iowa corporate income tax upon a corporation whose legal domicile is in Iowa, and instead imposes it on all corporations doing business in Iowa.
• Provides that an Iowa-based corporation, whose only activity outside Iowa is the ownership of intangible assets, and which has acquired a business situs outside Iowa, may apportion its income to determine the portion which is subject to Iowa income tax. This provision applies retroactively to January 1, 1999, for tax years beginning on or after that date.
• Makes the exemption from Iowa sales tax for services performed on tangible property delivered into interstate commerce, the same as the exemption from Iowa sales tax on tangible personal property delivered to a point outside of Iowa.
• Requires the Department of Economic Development to submit a report to the General Assembly on the phaseout of the machinery, equipment and computer property tax, including estimated economic impact and recommendations for modification of the reimbursement formula.

Provisions of the Act that do not specify an effective or applicability date take effect May 20, 1999.

SENATE FILE 149 -- Motor Vehicle Warranty Claims - Service or Warranty Facilities (Complete summary under TRANSPORTATION.)

This Act prohibits a motor vehicle manufacturer, distributor or importer of motor vehicles, or an agent thereof, from reducing compensation or disallowing a claim for warranty parts, repairs or service supplied by a motor vehicle dealer if 12 months or more have passed since the claim was submitted. Violators are guilty of a simple misdemeanor. The Act also provides that an additional motor vehicle dealership includes a facility providing manufacturer-authorized or distributor-authorized service or warranty work for motor vehicles of a line-make in a community in which the same line-make is represented.

SENATE FILE 221 -- Public Assistance - Family Investment Program - Individual Development Accounts (Complete summary under HUMAN SERVICES.)

This Act allows funding available in the Self-Employment Loan Program account of the Strategic Investment Fund administered by the Department of Economic Development to be used as matching funding for individual development accounts held by low-income Iowans. These accounts are held in banks and other financial institutions.

SENATE FILE 224 -- Utilities - Cost of Board Proceedings - Competitive Utility Services (Complete summary under ENERGY & PUBLIC UTILITIES.)

This Act amends provisions related to proceedings before the Utilities Board, the provision of competitive utility services, and the allocation of costs incurred by the Utilities Board and the Office of Consumer Advocate to participants in certain proceedings before the Utilities Board. The Act takes effect April 14, 1999.

SENATE FILE 230 -- Internal Revenue Code References and Income Tax Provisions (Complete summary under TAXATION.)

This Act updates the references to the Internal Revenue Code to make the federal income tax revisions enacted by Congress in 1998 applicable for Iowa income tax purposes. The Act takes effect May 6, 1999, and applies retroactively to January 1, 1998, for tax years beginning on or after that date.

SENATE FILE 280 -- Financial Institutions Investments in Iowa Agricultural Industry Finance Corporations (Complete summary under ECONOMIC DEVELOPMENT.)

This Act allows financial institutions to meet requirements for participation in local community and rural development projects by investment in Iowa agricultural industry finance corporations formed pursuant to Code Chapter 15E.

SENATE FILE 335 -- Real Estate Transfers - Mortgage Releases (Complete summary under STATE GOVERNMENT.)

This Act provides that, under certain circumstances, a duly authorized officer or employee of the Title Guaranty Division in the Iowa Finance Authority may execute and record a certificate of release in each county in which a mortgage is recorded.

SENATE FILE 429 -- Mechanics' Liens (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act amends sections of Code Chapter 572, regarding mechanics' liens, by providing that if written demand on a claimant for acknowledgment of satisfaction of a mechanic's lien is personally served and the claimant neglects to acknowledge satisfaction for 30 days after the demand, the claimant shall forfeit and pay damages; providing notice procedures; creating an action to challenge a mechanic's lien which may be commenced in either district court or small claims court; and providing for the awarding of reasonable attorney fees or actual damages in certain circumstances.

SENATE FILE 437 -- Notification of Mechanics' Liens (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act amends Code Section 572.33, regarding mechanics' liens on labor and materials furnished to a subcontractor.

SENATE FILE 473 -- Tax Administration - Additional Related Matters (Complete summary under TAXATION.)

This Act amends various provisions of state tax law relating to the administration of the state individual income tax, corporate income tax, sales and use taxes, franchise tax, replacement taxes on electric and natural gas providers, motor fuel taxes, inheritance and estate taxes, property taxes, and collection of taxes and debts owed to or collected by the state.

HOUSE FILE 242 -- Substantive Code Corrections (Complete summary under STATE GOVERNMENT.)

This Act contains statutory corrections that adjust language to reflect current practices, insert earlier omissions, delete redundancies and inaccuracies, delete temporary language, resolve inconsistencies and conflicts, update ongoing provisions, or remove ambiguities. The Act does the following: Deletes language in the Department of Economic Development chapter relating to coordination of the Job Training Partnership Program with the Self-Employment Program; amends the Workers' Compensation Liability Insurance chapter to specify that financial statements are to be provided to and are subject to examination and rules of the Commissioner of Insurance; amends child abuse record check provisions to specify that if the Department of Human Services determines that an applicant for employment with a health care facility has a record of founded child abuse, the department is to notify the licensee that an evaluation will be conducted to determine whether the person's employment is warranted; prescribes a uniform bond amount for each place of business of a dealer in biological products; amends animal feeding operation provisions to specify which persons are restricted from constructing or expanding animal feeding operations structures; amends Uniform Partnership Act provisions to specify that in the case of a merger, certain obligations incurred prior and subsequent to the merger are to be satisfied out of the assets of the surviving entity; deletes an exception to the former limitation on state bank offices, along with an internal reference to a former restriction on the retention of former bank offices by a resulting bank of a merger or consolidation.

HOUSE FILE 281 -- Bail Enforcement Limitations - Exempt Agents (Complete summary under CRIMINAL LAW, PROCEDURE & CORRECTIONS.)

This Act entitles an individual who works as a bail enforcement agent exclusively for one employer, in connection with the bail bond business of that employer, to operate as a bail enforcement agent, although not individually licensed.

HOUSE FILE 311 -- Foster Care-Related Damages - State Liability (Complete summary under CHILDREN & YOUTH.)

This Act relates to state compensation of claims for damages involving individuals providing foster family home, guardian or conservator services for children.

HOUSE FILE 312 -- Grain Industry Regulation (Complete summary under AGRICULTURE.)

This Act amends provisions regulating grain dealers and warehouse operators licensed by the Department of Agriculture and Land Stewardship, by increasing the amount of grain that a person may purchase without being considered a grain dealer, eliminating references to "registered feed," providing for the cancellation of bonds, requiring the department to establish civil penalties for violations by grain dealers or warehouse operators, establishing a Grain Industry Peer Review Panel to assist the department in establishing and assessing civil penalties, increasing the time allowed for the issuance of warehouse receipts for grain held in open storage, and requiring incidental warehouse operators to have grain to cover obligations to depositors.

HOUSE FILE 322 -- Production of Agricultural Commodities (Complete summary under AGRICULTURE.)

This Act provides for the production and purchasing of agricultural commodities by regulating contracts for the production of agricultural commodities. The Act establishes a new Code Chapter 579B, which creates a lien upon commodities produced at the contract producer's contract operation under a production contract in favor of the contract producer. The Act also amends Code Chapter 579A, which establishes a lien on cattle maintained at a custom cattle feedlot in favor of the custom cattle feedlot operator. The Act takes effect May 24, 1999.

HOUSE FILE 448 -- Electronic Mail Transmissions - Advertisements (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act prohibits a person from using an interactive computer service to initiate the sending of certain bulk electronic mail, frequently referred to as "spamming." The Act provides for recovery of civil damages by individual computer users and interactive computer services, and for prosecution by the Attorney General.

HOUSE FILE 498 -- Fraudulent Retail Sales Receipts and Universal Price Code Labels (Complete summary under CRIMINAL LAW, PROCEDURE & CORRECTIONS.)

This Act defines certain acts related to the creation, possession or use of fraudulent retail sales receipts or universal price code labels (UPCs) as fraudulent practices under the Code when knowingly done with intent to defraud another person engaged in the business of retailing.

HOUSE FILE 584 -- Estates and Trusts - Determination and Distribution of Principal and Income (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act enacts the Uniform Principal and Interest Act, as revised by the National Conference of Commissioners on Uniform State Laws in 1997.

HOUSE FILE 588 -- Telecommunications - Service Changes (Complete summary under ENERGY & PUBLIC UTILITIES.)

This Act creates new Code Section 476.103 and new Code Chapter 714D, relating to unauthorized provision of or changes in telecommunications services, and to fraudulent acts associated with the lease, sale or advertisement of telecommunications service or with the solicitation of authority to provide or execute a change of telecommunications service or provider.

HOUSE FILE 660 -- Property Exempt From Execution (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act makes exempt from execution certain retirement benefits and any public assistance benefits of the debtor. The Act takes effect May 17, 1999.

HOUSE FILE 663 -- Probate - Iowa Trust Code (Complete summary under CIVIL LAW, PROCEDURE & COURT ADMINISTRATION.)

This Act creates a new division in Code Chapter 663, regarding trusts. The provisions of the new division are known as the Iowa Trust Code. The Act takes effect July 1, 2000.

HOUSE FILE 676 -- Iowa Agricultural Industry Finance Act - Miscellaneous Provisions (Complete summary under ECONOMIC DEVELOPMENT.)

This Act makes several changes to the Iowa Agricultural Industry Finance Act relating to ownership in the corporation by agricultural producers.

HOUSE FILE 700 -- Unpaid Charges for City Water, Sewage, and Solid Waste Services (Complete summary under ENERGY & PUBLIC UTILITIES.)

This Act amends provisions relating to city utility or enterprise service accounts that become delinquent. The Act provides for withholding service from a delinquent account holder and eliminates the lien on residential rental property for unpaid rates or charges associated with water service to such property under certain circumstances.

HOUSE FILE 748 -- State Sales, Services, and Use Tax Exemption for Internet Access (Complete summary under TAXATION.)

This Act exempts from the state sales tax access charges paid to a provider for access to the Internet.

HOUSE FILE 760 -- Appropriations - Human Services (Complete summary under APPROPRIATIONS.)

This Act provides appropriations to the Department of Human Services (DHS) for FY 1999-2000, and includes provisions related to human services and health care. The Act provides for expenditure of not more than $60,000 to continue the previously established AIDS/HIV Health Insurance Premium Payment Program; provides a very slight decrease in the appropriation as compared with FY 1998-1999 for the Health Insurance Premium Payment Program; appropriates $10.25 million to DHS for maintenance of the state Children's Health Insurance Program and receipt of federal financial participation; authorizes DHS to transfer funds appropriated for medical assistance (MA) to be used to expand health care coverage to children under the MA Program; and codifies the creation of the HAWK-I Trust Fund in Code Section 514I.11.

HOUSE FILE 773 -- Child Support Enforcement - Miscellaneous Provisions (Complete summary under HUMAN SERVICES.)

This Act includes a provision which specifies the means by which the Child Support Recovery Unit may pay financial institutions for the costs associated with conducting data matches, including the costs of automation programming development necessary to conduct data matches.

HOUSE FILE 779 -- Linked Investment Programs (Complete summary under AGRICULTURE.)

This Act amends provisions in Code Chapter 12 that allow the Treasurer of State to invest up to $68 million or 10 percent of the balance of the State Pooled Money Fund in certificates of deposit in eligible lending institutions. The state receives a lower interest rate as part of an agreement in which the lending institution loans moneys to eligible persons, under programs specified in the chapter, at a reduced rate of interest. The Act increases the amount that the Treasurer of State may invest to $108 million, but provides that the additional moneys must be used to support a program for traditional livestock producers and a program for value-added agricultural projects. The Act takes effect May 24, 1999.

© 1998 Cornell College and League of Women Voters of Iowa

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: SAT July 10 1999
sw/sam