April 13, 2000

Michael Marshall
Secretary of the Senate
State Capitol Building
L O C A L

Dear Mr. Marshall:

I hereby transmit Senate File 2220, an act relating to forcible entry and detainer actions in small claims court following a default on a contract for deed, pursuant to Article III, section 16, of the Constitution of Iowa.

I have a number of concerns with the impact of this legislation on Iowa consumers utilizing real estate contracts that compel me to disapprove it. This legislation is inconsistent with current practices regarding the involvement of the district courts in disputed forfeiture claims. I am not persuaded that changing current small claims court jurisdiction levels is appropriate. I feel that current requirements for a completed forfeiture action in real estate contract cases provides broader procedural protections for consumers than the provisions of this bill. As an example, the current forfeiture process allows those representing consumers in these cases to use a "discovery" process to obtain more information for their clients. Such would not be allowed under the provisions of Senate File 2220. In consultation with the Attorney General, I have also found that this legislation also could expose unwary Iowans to other unscrupulous practices which could result in some individuals losing both their equity and their homes. In short, this legislation proposes to reduce a number of current legal protections extended to Iowans who are purchasing real estate on contract.

For the above reasons, I hereby respectfully disapprove Senate File 2220.

Sincerely,

Thomas J. Vilsack
Governor

TJV:jmc

cc: Secretary of State
   Chief Clerk of the House

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Last update: MON Apr 17 2000
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