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 than fifteen
  1  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 than fifteen twenty
  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