SF 375 – Subdivided real property assessments
SF 386 – Geothermal energy system tax credit for corporations
SF 387 – Geothermal energy system tax credit for franchises
SF 400 – Insurance benefits for autism treatment
SF 404 – Experimental treatments
SSB 1045 – IUB omnibus
SSB 1098 – Credit Union omnibus
SSB 1118 – Consumer Credit Code update
SSB 1122 – Architect licensure
SSB 1138 – Siting of small wireless facilities
COMMITTEE ACTION
SF 375 (SSB 1116) relates to the assessment of certain subdivided real property. Currently, a platted lot for which a subdivision plat was recorded is assessed for property tax purposes as acreage or unimproved property for five years or until the lot is actually improved with permanent construction, whichever occurs first. However, for subdivision plats recorded on or after January 1, 2004, but before January 1, 2011, the time limit is eight years. The bill strikes the portions of Code section 441.72 relating to the five-year limitation and the eight-year limitation and provides that when a subdivision plat is recorded, the individual lots within the subdivision plat will not be assessed in excess of the total assessment of the land as acreage or unimproved property until the lot is sold for construction or occupancy of housing.
The bill stipulates that this legislation must not be construed to require the refund or modification of property taxes that are attributable to assessment years beginning before January 1, 2018, or the adjustment of property assessments for assessment years beginning before January 1, 2018. The bill also provides that local ordinances adopted under existing Code section 405.1 in effect on the effective date of the bill are invalid for purposes of assessment years beginning on or after January 1, 2018. The bill applies to assessment years beginning on or after January 1, 2018.
[2/27: short form]
SF 386 (SSB 1121) creates a geothermal tax credit available against the corporate income tax equal to 10 percent of the expenditures made by a taxpayer for a qualifying geothermal energy system property if depreciation or amortization is allowable to the taxpayer under the Internal Revenue Code with respect to the property, and if the property is installed on or in connection with a structure located in Iowa.
For purposes of the tax credit, expenditures are deemed to be made on the date the installation is complete or, in the case of new construction or reconstruction, the date the original use of the structure begins. The tax credit is non-refundable, but any amount in excess of the taxpayer’s tax liability may be carried forward for up to 10 years. The bill takes effect upon enactment and applies retroactively to January 1, 2017, for tax years beginning on or after that date. The bill will be referred to Ways & Means for further review.
[2/27: short form]
SF 387 (SSB 1120) creates a geothermal tax credit available against the franchise tax equal to 10 percent of the expenditures made by a taxpayer for a qualified geothermal energy system property if depreciation or amortization is allowable to the taxpayer under the Internal Revenue Code with respect to the property, and if the property is installed on or in connection with a structure located in Iowa.
For purposes of the tax credit, expenditures are deemed to be made on the date the installation is complete or, in the case of new construction or reconstruction, the date the original use of the structure begins. The tax credit is non-refundable, but any amount in excess of the taxpayer’s tax liability may be carried forward for up to 10 years. The bill takes effect upon enactment and applies retroactively to January 1, 2017, for tax years beginning on or after that date. The bill will be referred to Ways & Means for further review.
[2/27: short form]
SF 400 (SSB 1043) creates new Code section 514C.31 that requires certain individual and group health insurance policies, contracts or plans, and plans established pursuant to Code chapter 509A for public employees other than state employees to provide coverage benefits for applied behavior analysis for the treatment of autism spectrum disorders in children. The applied behavior analysis must be provided by a board-certified behavior analyst or by a licensed physician or psychologist. The required maximum benefit for coverage for applied behavior analysis for an individual diagnosed with an autism spectrum disorder is $36,000 per year through age 6; $25,000 per year from age 7 through age 13; and $12,500 per year from age 14 through age 18. Required coverage can be subject to preauthorization, prior approval or other care management requirements, including limits on the number of visits an individual may make for applied behavior analysis. Required coverage can be subject to dollar limits, deductibles, copayments, coinsurance provisions or any other general exclusions or limitations of the coverage that apply to other covered medical or surgical services.
This new Code section does not limit benefits otherwise available to an individual under a group policy, contract or plan, and does not affect any obligation to provide services to an individual under an individualized family service plan, education program or service plan. A carrier, organized delivery system or plan may request to review a treatment plan not more than once every three months during the first year of the treatment plan and not more than once every six months during every year thereafter, unless the insurer and the individual’s treating physician or psychologist execute an agreement that more frequent review is necessary. Such an agreement applies only to that individual and does not apply to other individuals receiving applied behavior analysis from a board-certified behavior analyst, a physician or a psychologist. The cost of conducting the review of a treatment plan is paid by the insurer. The provisions of a treatment plan cannot be changed until the completion of a review of the plan.
The new Code section applies to third-party provider payment contracts, policies or plans specified in the bill, or plans established for state and other public employees that are delivered, issued for delivery, continued or renewed in Iowa on or after January 1, 2018. Individuals who are eligible for coverage of applied behavior analysis treatment under this new Code section are not eligible to participate in the state autism support program (Code sections 225D.1, 225D.2) effective January 1, 2018.
[2/27: short form]
SF 404 (SSB 1115) relates to the use of experimental treatments for terminally-ill patients. Also known as the “Right to Try” bill, it allows manufacturers of investigational drugs, biological products or devices to make available, and eligible patients with terminal illnesses to attempt treatment with, an investigational drug, biological product or device, as long as they provided written informed consent. An eligible patient’s physician must acknowledge that the patient’s illness is terminal and recommend the patient try an investigational drug, biological product or device. The patient’s written informed consent must acknowledge that treatments currently approved by the U.S. Food & Drug Administration are unlikely to prolong the patient’s life. It must identify the specific treatment sought and the potential best, worst and expected results from the treatment. It must acknowledge that the patient’s insurance is not required to pay for the treatment and that any hospice service may refuse to accept the patient after receiving the treatment. It must also acknowledge that expenses will be credited to the patient, including the patient’s estate, unless otherwise stated in an agreement with the manufacturer. If the patient dies during treatment, the patient’s heirs are not liable for any remaining debts unless otherwise required by law.
The manufacturer may charge an eligible patient or provide the treatment free of charge. Governmental entities are not required to pay costs associated with the use, care or treatment of a patient with an investigational drug, biological product or device. The bill does not require hospitals licensed under Code chapter 135B or other health care facilities to provide new or additional services. Consistent with existing law, the Board of Medicine cannot take an adverse action against a physician’s license solely for recommending an investigational drug, biological product or device for the physician’s eligible patient. The bill does not create a new private cause of action against any person or entity involved in the care of an eligible patient for any harm done to the patient resulting from the treatment if the person or entity is complying in good faith with the terms of the bill and has exercised reasonable care.
[2/27: short form]
SSB 1045 is a recommendation by the Iowa Utilities Board (IUB). Currently, rate-regulated utilities may collect different rates on a temporary basis, subject to refund, while a rate review is pending. There are two options under which this occurs. The utility may ask the Board to approve temporary rates based upon previously-established regulatory principles and the Board must rule on that request within 90 days. If the final rates include rate design changes that result in over-collection from some customer classes and under-collection from others, the utility is not typically required to make refunds on a class-by-class basis.
The second option allows the utility to implement temporary rates without Board review or approval within 10 days after the rate case is filed. If the Board later determines that the temporary rates were not based on previously established regulatory principles, the Board must consider requiring refunds based on the overpayments made by each individual customer class, rate zone, or customer group.
In recent rate cases, the utilities have tended to use the second option, which allows the utility to begin collecting temporary rates sooner and allows the Board and the other parties to avoid devoting resources to temporary rate issues, while retaining the right to review the temporary rates at a later date. The bill strikes language allowing utilities to implement Board approved temporary rates within 90 days of filing, leaving the alternative of automatic implementation of temporary rates 10 days after filing as the only option.
The bill adds an exception to Code Chapter 22 that would apply to the IUB and the Department of Homeland Security & Emergency Management (HSEMD). As amended by the Committee, it would cover the confidentiality of certain information and records relating to cybersecurity or critical infrastructure, the disclosure of which could expose or create vulnerability to critical systems for purposes relating to the safeguarding of telecommunications, electric, water, sanitary sewage, storm water drainage, energy, hazardous liquid, natural gas systems or other critical infrastructure. It also strikes a requirement that the director of HSEMD make available for examination a list of critical assets as used in the critical asset protection plan. The IUB has worked with HSEMD on this proposal.
Iowa Code requires a Board member, Board counsel, “or a hearing examiner designated by the board” to “serve as the presiding officer” at each informational meeting on an electric transmission franchise petition. “Hearing examiner” is an undefined phrase that appears in only three other Code chapters. Other provisions in Iowa Code pertaining to the IUB and its interactions with intrastate gas pipelines and hazardous liquid pipelines prescribe an informational meeting, with a “presiding officer” who must be a Board member “or a person designated by the board.” The bill replaces the reference to “hearing examiner” with “presiding officer.”
[2/27: short form]
SSB 1098 is a recommendation by the Iowa Credit Union Division in the Iowa Department of Commerce. It makes technical changes and conforms the statute to current Division practice.
The bill adds language to Code section 533.113 regarding exam confidentiality to codify what has been noted on each examination report for many years. These additions, along with the penalty provision, will make the language printed on the examination report enforceable. In addition, the Division has formalized a process for authorizing the delivery of examination reports to authorized third parties such as auditors, the Federal Home Loan Bank and potential merger partners via the completion of a confidentiality agreement by all parties.
Current law provides for both a meeting of the board of directors after receiving the report of examination, and for a meeting of the board whenever the superintendent deems it necessary and advisable. Recognizing there may be circumstances where the superintendent finds it necessary to call a meeting of the credit union board members not directly related to an examination, the Division’s Assistant Attorney General advised the Division to move this provision from the examination section to a section calling for a meeting of the board. Subsections 4 and 7 from section 533.113 are combined in new section 533.113A, and those subsections are deleted from section 533.113.
[2/27: short form]
SSB 1118 updates the Iowa Consumer Credit Code. The bill, as amended unanimously by the Committee, represents an agreement among the Iowa Attorney General, Iowa Bankers Association and Iowa Credit Union League to modernize the Iowa Consumer Credit Code. Many of these fees for creditors and remedy awards for debtors have not been adjusted since the Code was passed in 1974.
The legislation:
- Allows the Attorney General greater latitude to declare supervised loans void when made by parties who do not have proper authorization to make such loans.
- Provides for credit reporting charge and a $30 charge for returned checks and over limit violations on credit cards.
- Increases the allowable late payment charge cap from $15 to $30 on all consumer credit and changes the rebate rules for deposit taking lenders which will make it easier to make smaller consumer loans.
- Raises the remedy award for a consumer’s private right of action for violations of the consumer credit code along with violations of disclosure provisions from a minimum of $100 to $200 and from a maximum of $1,000 to $2,000. It also raises the civil remedy for the attorney general to bring an action against a creditor from no more than $5,000 to no more than $10,000.
- Raises the annual notification fee for credit sellers and debt collectors from $10 to $50, and increases the allowable charge for late filing by these credit sellers and debt collectors from $20 to $75.
[2/28: short form]
SSB 1122 requires licensure rather than registration of architects practicing in Iowa and makes conforming changes to Code sections that reference registration as an architect. The term “licensure” is used when a professional’s actions are regulated by a Practice Act, and the credentials are more rigorous – involving minimum education, training and examination requirements. “Registration” refers to a state roster that may include regulation by a Title Act, which does not apply in Iowa. The Iowa Chapter of the American Institute of Architects requested the legislation to better reflect the occupational regulation based on public health, safety and welfare. In Iowa, engineers and landscape engineers are licensed rather than certified, and all states bordering Iowa (with the exception of Wisconsin) require architect licensure.
[2/27: short form]
SSB 1138 relates to the siting of small wireless communication facilities and would expand current law (Code chapter 8C) that provides a series of uniform rules and limitations for the deployment of and applications for wireless communications facilities and infrastructure. Wireless companies want to deploy services to their customers that may include access to rights-of-way, public facilities, traffic signals and utility poles. The proposal adds specific rules and limitations for the application for and deployment of small wireless facilities. It prohibits an authority, such as a city, from restricting the siting of small wireless facilities. An authority with planning and zoning regulations must authorize such facilities in zoning districts where the facilities are located on public rights-of-way or authority property, or where the facilities are sited on certain existing structures. Facilities not sited on such property or sited in such a manner may be classified as special or conditional uses. An authority may also require a person to obtain a special or conditional land use permit to install new utility poles or wireless support structures on certain property. An authority may require a person to obtain building, electrical or public way use permits for the siting of small wireless facilities if such permit is of general applicability and does not deny a facility access to a public right-of-way. However, an authority cannot require a person to obtain a permit for the routine maintenance or replacement of a previously approved facility unless such permit contains the same terms and conditions provided for other commercial projects or uses in the public right-of-way.
The Committee unanimously adopted an amendment to strike provisions regarding authorization of joint financing of telecommunications facilities. Other concerns were raised regarding safety concerns and repair costs, and there may be additional amendments brought forward.
[2/28: short form (Petersen “no”)]