Senate File 227 - Introduced SENATE FILE BY HOGG Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to agreements to pay compensation to recover or 2 assist in the recovery of certain unclaimed property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2557XS 82 5 av/je/5 PAG LIN 1 1 Section 1. Section 556.2C, subsection 2, Code 2007, is 1 2 amended to read as follows: 1 3 2. An agreement to pay compensation to recover or assist 1 4 in the recovery of an outstanding warrant made within 1 5 twenty=four months after the date the warrant is canceled is 1 6 unenforceable. However, an agreement made after twenty=four 1 7 months from the date the warrant is canceled is valid if the 1 8 fee or compensation agreed upon is not more thanfifteen1 9 twenty percent of the recoverable property, the agreement is 1 10 in writing and signed by the payee, and the writing discloses 1 11 the nature and value of the property and the name and address 1 12 of the person in possession. This subsection does not apply 1 13 to a payee who has a bona fide fee contract with a practicing 1 14 attorney regulated under chapter 602, article 10. 1 15 Sec. 2. Section 556.11, subsection 10, Code 2007, is 1 16 amended to read as follows: 1 17 10. All agreements to pay compensation to recover or 1 18 assist in the recovery of property reported under this 1 19 section, made within twenty=four months after the date payment 1 20 or delivery is made under section 556.13, are unenforceable. 1 21 However, such agreements made after twenty=four months from 1 22 the date of payment or delivery are valid if the fee or 1 23 compensation agreed upon is not more thanfifteentwenty 1 24 percent of the recoverable property, the agreement is in 1 25 writing and signed by the owner, and the writing discloses the 1 26 nature and value of the property and the name and address of 1 27 the person in possession. A person shall not attempt to 1 28 collect or collect a fee or compensation for discovering 1 29 property presumed abandoned under this chapter unless the 1 30 person is licensed as a private investigation business 1 31 pursuant to chapter 80A. This section does not prevent an 1 32 owner from asserting, at any time, that an agreement to locate 1 33 property is based upon excessive or unjust consideration. 1 34 This section does not apply to an owner who has a bona fide 1 35 fee contract with a practicing attorney and counselor as 2 1 described in chapter 602, article 10. 2 2 EXPLANATION 2 3 This bill relates to agreements to pay compensation to 2 4 recover or assist in the recovery of certain property that has 2 5 been reported as unclaimed or abandoned. 2 6 Code section 556.2C is amended to increase the amount of 2 7 the fee or compensation that can be agreed upon in such an 2 8 agreement from 15 percent to 20 percent of the recoverable 2 9 amount of certain unpaid, outdated state warrants. 2 10 Code section 556.11 is amended to increase the amount of 2 11 the fee or compensation that can be agreed upon in such an 2 12 agreement from 15 percent to 20 percent of the recoverable 2 13 amount of certain funds or property, tangible or intangible, 2 14 that have been reported abandoned. 2 15 LSB 2557XS 82 2 16 av:rj/je/5