House
File
2349
-
Introduced
HOUSE
FILE
2349
BY
COMMITTEE
ON
ECONOMIC
GROWTH
(SUCCESSOR
TO
HSB
539)
(COMPANION
TO
SF
2206)
A
BILL
FOR
An
Act
concerning
the
Iowa
finance
authority
in
regard
to
the
1
title
guaranty
program
and
private
activity
bonds.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5186HV
(2)
85
ec/nh
H.F.
2349
DIVISION
I
1
TITLE
GUARANTY
2
Section
1.
Section
16.1,
subsection
1,
paragraph
af,
3
subparagraph
(7),
Code
2014,
is
amended
to
read
as
follows:
4
(7)
The
Iowa
title
guaranty
program.
5
Sec.
2.
Section
16.2A,
subsection
1,
Code
2014,
is
amended
6
to
read
as
follows:
7
1.
A
title
guaranty
division
is
created
within
the
8
authority.
The
division
may
also
be
referred
to
as
Iowa
title
9
guaranty.
The
powers
of
the
division
relating
to
the
issuance
10
of
title
guaranties
are
vested
in
and
shall
be
exercised
by
11
a
division
board
of
five
members
appointed
by
the
governor
12
subject
to
confirmation
by
the
senate.
The
membership
of
13
the
board
shall
include
an
attorney,
an
abstractor,
a
real
14
estate
broker,
a
representative
of
a
mortgage
lender,
and
15
a
representative
of
the
housing
development
industry.
The
16
executive
director
of
the
authority
shall
appoint
an
attorney
17
as
director
of
the
title
guaranty
division,
who
shall
serve
18
as
an
ex
officio
member
of
the
board.
The
appointment
of
and
19
compensation
for
the
division
director
are
exempt
from
the
20
merit
system
provisions
of
chapter
8A,
subchapter
IV
.
21
Sec.
3.
Section
16.91,
subsections
1,
3,
and
4,
Code
2014,
22
are
amended
to
read
as
follows:
23
1.
The
authority
through
the
title
guaranty
division
shall
24
initiate
and
operate
a
program
in
which
the
division
shall
25
offer
guaranties
of
real
property
titles
in
this
state.
The
26
terms,
conditions
,
and
form
of
the
guaranty
contract
shall
be
27
forms
approved
by
the
division
board.
The
division
shall
fix
28
a
charge
for
the
guaranty
in
an
amount
sufficient
to
permit
29
the
program
to
operate
on
a
self-sustaining
basis,
including
30
payment
of
administrative
costs
and
the
maintenance
of
an
31
adequate
reserve
against
claims
under
the
Iowa
title
guaranty
32
program.
A
title
guaranty
fund
is
created
in
the
office
of
33
the
treasurer
of
state.
Funds
collected
under
this
program
34
shall
be
placed
in
the
title
guaranty
fund
and
are
available
35
-1-
LSB
5186HV
(2)
85
ec/nh
1/
4
H.F.
2349
to
pay
all
claims,
necessary
reserves
and
all
administrative
1
costs
of
the
Iowa
title
guaranty
program.
Moneys
in
the
fund
2
shall
not
revert
to
the
general
fund
and
interest
on
the
3
moneys
in
the
fund
shall
be
deposited
in
the
housing
trust
4
fund
established
in
section
16.181
and
shall
not
accrue
to
the
5
general
fund.
If
the
authority
board
in
consultation
with
the
6
division
board
determines
that
there
are
surplus
funds
in
the
7
title
guaranty
fund
after
providing
for
adequate
reserves
and
8
operating
expenses
of
the
division,
the
surplus
funds
shall
be
9
transferred
to
the
housing
assistance
fund
created
pursuant
to
10
section
16.40
.
11
3.
With
the
approval
of
the
authority
board
the
division
12
and
its
board
shall
consult
with
the
insurance
division
of
13
the
department
of
commerce
in
developing
a
guaranty
contract
14
acceptable
to
the
secondary
market
and
developing
any
other
15
feature
of
the
program
with
which
the
insurance
division
may
16
have
special
expertise.
The
insurance
division
shall
establish
17
the
amount
for
a
loss
reserve
fund.
Except
as
provided
in
this
18
subsection
,
the
Iowa
title
guaranty
program
is
not
subject
to
19
the
jurisdiction
of
or
regulation
by
the
insurance
division
or
20
the
commissioner
of
insurance.
21
4.
Each
participating
attorney
and
abstractor
may
be
22
required
to
pay
an
annual
participation
fee
to
be
eligible
to
23
participate
in
the
Iowa
title
guaranty
program.
The
fee,
if
24
any,
shall
be
set
by
the
division,
subject
to
the
approval
of
25
the
authority.
26
Sec.
4.
Section
16.91,
subsection
5,
paragraph
a,
27
subparagraph
(2),
Code
2014,
is
amended
to
read
as
follows:
28
(2)
Additionally,
each
participating
abstractor
is
required
29
to
own
or
lease,
and
maintain
and
use
in
the
preparation
of
30
abstracts,
an
up-to-date
abstract
title
plant
including
tract
31
indices
for
real
estate
for
each
county
in
which
abstracts
are
32
prepared
for
real
property
titles
guaranteed
by
the
division.
33
The
tract
indices
shall
contain
a
reference
to
all
instruments
34
affecting
the
real
estate
which
are
recorded
in
the
office
of
35
-2-
LSB
5186HV
(2)
85
ec/nh
2/
4
H.F.
2349
the
county
recorder,
and
shall
commence
not
less
than
forty
1
years
prior
to
the
date
the
abstractor
commences
participation
2
in
the
Iowa
title
guaranty
program.
However,
a
participating
3
attorney
providing
abstract
services
continuously
from
November
4
12,
1986,
to
the
date
of
application,
either
personally
or
5
through
persons
under
the
attorney’s
supervision
and
control
is
6
exempt
from
the
requirements
of
this
subparagraph.
7
Sec.
5.
Section
16.91,
subsection
8,
Code
2014,
is
amended
8
to
read
as
follows:
9
8.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
10
that
are
necessary
for
the
implementation
of
the
Iowa
title
11
guaranty
program
as
established
by
the
division
and
that
have
12
been
approved
by
the
authority.
13
Sec.
6.
Section
16.92,
subsection
1,
paragraph
i,
Code
2014,
14
is
amended
to
read
as
follows:
15
i.
“Participating
abstractor”
means
an
abstractor
16
participating
in
the
Iowa
title
guaranty
program.
17
Sec.
7.
Section
447.13,
subsection
1,
Code
2014,
is
amended
18
to
read
as
follows:
19
1.
The
cost
of
serving
the
notice,
including
the
cost
of
20
sending
certified
mail
notices,
and
the
cost
of
publication
21
under
section
447.10
,
if
publication
is
required,
shall
be
22
added
to
the
amount
necessary
to
redeem.
The
cost
of
a
record
23
search
shall
also
be
added
to
the
amount
necessary
to
redeem.
24
However,
if
the
certificate
holder
is
other
than
a
county,
the
25
search
must
be
performed
by
an
abstractor
who
is
an
active
26
participant
in
the
Iowa
title
guaranty
program
under
section
27
16.91
or
by
an
attorney
licensed
to
practice
law
in
the
state
28
of
Iowa,
and
the
amount
of
the
cost
of
the
record
search
that
29
may
be
added
to
the
amount
necessary
to
redeem
shall
not
exceed
30
three
hundred
dollars.
31
DIVISION
II
32
PRIVATE
ACTIVITY
BOND
ALLOCATIONS
33
Sec.
8.
Section
7C.4A,
subsection
7,
paragraph
a,
Code
2014,
34
is
amended
to
read
as
follows:
35
-3-
LSB
5186HV
(2)
85
ec/nh
3/
4
H.F.
2349
a.
The
amount
of
the
state
ceiling
which
is
not
otherwise
1
allocated
under
subsections
1
through
5
,
and
after
June
30,
2
the
amount
of
the
state
ceiling
reserved
under
subsection
6
3
and
not
allocated,
shall
be
allocated
to
all
bonds
requiring
4
an
allocation
under
section
146
of
the
Internal
Revenue
Code
5
without
priority
for
any
type
of
bond
over
another,
except
6
as
otherwise
provided
in
sections
7C.5
and
7C.11.
A
single
7
project
allocated
a
portion
of
the
state
ceiling
pursuant
to
8
this
subsection
shall
not
receive
an
allocation
in
excess
of
9
ten
fifty
million
dollars
in
any
calendar
year.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
concerns
the
Iowa
finance
authority.
14
Division
I
renames
the
title
guaranty
program
as
the
Iowa
15
title
guaranty
program.
The
bill
also
allows
the
title
16
guaranty
division
to
be
referred
to
as
Iowa
title
guaranty.
17
Division
II
concerns
bond
activity
and
the
Iowa
finance
18
authority.
Code
section
7C.4A(7),
concerning
the
allocation
of
19
the
state
ceiling
on
bonds
which
is
not
otherwise
allocated,
20
is
amended
to
increase
the
current
$10
million
yearly
cap
on
21
the
amount
any
single
project
may
receive
from
the
unused
22
allocation
of
the
state
ceiling
on
bonds
to
$50
million.
23
-4-
LSB
5186HV
(2)
85
ec/nh
4/
4