Senate File 527 - Introduced SENATE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 227) 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 2557SV 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 oftherecoverable property whose value is one 1 10 thousand dollars or less and not more than fifteen percent of 1 11 recoverable property whose value is more than one thousand 1 12 dollars, the agreement is in writing and signed by the payee, 1 13 and the writing discloses the nature and value of the property 1 14 and the name and address of the person in possession. This 1 15 subsection does not apply to a payee who has a bona fide fee 1 16 contract with a practicing attorney regulated under chapter 1 17 602, article 10. 1 18 Sec. 2. Section 556.11, subsection 10, Code 2007, is 1 19 amended to read as follows: 1 20 10. All agreements to pay compensation to recover or 1 21 assist in the recovery of property reported under this 1 22 section, made within twenty=four months after the date payment 1 23 or delivery is made under section 556.13, are unenforceable. 1 24 However, such agreements made after twenty=four months from 1 25 the date of payment or delivery are valid if the fee or 1 26 compensation agreed upon is not more thanfifteentwenty 1 27 percent oftherecoverable property whose value is one 1 28 thousand dollars or less and not more than fifteen percent of 1 29 recoverable property whose value is more than one thousand 1 30 dollars, the agreement is in writing and signed by the owner, 1 31 and the writing discloses the nature and value of the property 1 32 and the name and address of the person in possession. A 1 33 person shall not attempt to collect or collect a fee or 1 34 compensation for discovering property presumed abandoned under 1 35 this chapter unless the person is licensed as a private 2 1 investigation business pursuant to chapter 80A. This section 2 2 does not prevent an owner from asserting, at any time, that an 2 3 agreement to locate property is based upon excessive or unjust 2 4 consideration. This section does not apply to an owner who 2 5 has a bona fide fee contract with a practicing attorney and 2 6 counselor as described in chapter 602, article 10. 2 7 EXPLANATION 2 8 This bill relates to agreements to pay compensation to 2 9 recover or assist in the recovery of certain property that has 2 10 been reported as unclaimed or abandoned. 2 11 Code section 556.2C is amended to provide that the amount 2 12 of the fee or compensation that can be agreed upon in such an 2 13 agreement is 20 percent of the recoverable amount of certain 2 14 unpaid, outdated state warrants whose value is $1,000 or less 2 15 and 15 percent if the value is more than $1,000. 2 16 Code section 556.11 is amended to provide that the amount 2 17 of the fee or compensation that can be agreed upon in such an 2 18 agreement is 20 percent of the recoverable amount of certain 2 19 funds or property, tangible or intangible, that have been 2 20 reported abandoned whose value is $1,000 or less and 15 2 21 percent if the value is more than $1,000. 2 22 LSB 2557SV 82 2 23 av:rj/je/5