House Study Bill 594
SENATE/HOUSE FILE
BY (PROPOSED ATTORNEY
GENERAL BILL)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating the homeowners' consumer protection fund,
2 providing for the assessment of a surcharge, and making an
3 appropriation.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5263DP 82
6 rh/jp/8
PAG LIN
1 1 Section 1. NEW SECTION. 558.41A RECORDING MORTGAGE AND
1 2 DEED OF TRUST == SURCHARGE.
1 3 1. Except as provided in subsection 3, a surcharge of five
1 4 dollars shall be collected by the county recorder at the time
1 5 of recording a mortgage or deed of trust in addition to any
1 6 other fees required by law.
1 7 2. Moneys collected pursuant to this section shall be
1 8 transferred monthly to the treasurer of state for deposit in
1 9 the homeowners' consumer protection fund created in section
1 10 714.16D except that the county recorder may retain up to one
1 11 percent of the funds collected as necessary to administer
1 12 collection of the surcharge pursuant to this section.
1 13 3. The surcharge imposed pursuant to this section shall
1 14 not apply to an assignment or substitution of a previously
1 15 recorded mortgage or deed of trust.
1 16 Sec. 2. NEW SECTION. 714.16D HOMEOWNERS' CONSUMER
1 17 PROTECTION FUND == SURCHARGE.
1 18 1. A homeowners' consumer protection fund is created as a
1 19 separate fund in the state treasury to be administered by the
1 20 attorney general for purposes of the investigation and
1 21 prosecution of, and consumer education about, frauds relating
1 22 to mortgage lending.
1 23 2. The fund shall consist of moneys collected by the
1 24 county recorder from the surcharge imposed pursuant to section
1 25 558.41A, except to the extent that such moneys are permitted
1 26 to be used for administration of the fund as specified in
1 27 section 558.41A.
1 28 3. Notwithstanding section 8.33, moneys credited to the
1 29 fund from any source shall not revert to any other fund.
1 30 Notwithstanding section 12C.7, interest or earnings on the
1 31 moneys in the fund shall be credited to the fund. Moneys
1 32 available in the fund for a fiscal year are appropriated to
1 33 the department of justice to be used for the purposes of this
1 34 section.
1 35 EXPLANATION
2 1 This bill creates the homeowners' consumer protection fund,
2 2 provides for the assessment of a surcharge, and makes an
2 3 appropriation.
2 4 The bill provides that a surcharge of $5 shall be collected
2 5 by the county recorder at the time of recording a mortgage or
2 6 deed of trust in addition to any other fees required by law.
2 7 Moneys collected shall be transferred monthly to the treasurer
2 8 of state for deposit in the homeowners' consumer protection
2 9 fund created in the bill except that the county recorder may
2 10 retain up to 1 percent of the funds collected as necessary to
2 11 administer collection of the surcharge. The surcharge shall
2 12 not apply to an assignment or substitution of a previously
2 13 recorded mortgage or deed of trust.
2 14 The bill creates the homeowners' consumer protection fund
2 15 as a separate fund in the state treasury to be administered by
2 16 the attorney general for purposes of the investigation and
2 17 prosecution of, and consumer education about, frauds relating
2 18 to mortgage lending. The fund shall consist of moneys
2 19 collected by the county recorder from the surcharge imposed
2 20 pursuant to the bill except to the extent that such moneys are
2 21 permitted to be used for administration of the fund.
2 22 Notwithstanding Code section 8.33, moneys credited to the
2 23 fund from any source shall not revert to any other fund.
2 24 Notwithstanding Code section 12C.7, interest or earnings on
2 25 the moneys in the fund shall be credited to the fund. Moneys
2 26 available in the fund for a fiscal year are appropriated to
2 27 the department of justice to be used for the purposes of the
2 28 fund.
2 29 LSB 5263DP 82
2 30 rh/jp/8.1