FLOOR ACTION:

SF 2293 is based on recommendations by the Iowa Insurance Division (IID) to update and modify regulations in a variety of areas under their jurisdiction, including insurance and securities. The original proposal was amended by the Senate to provide that procedures for external review of health care coverage decisions also apply to external review of coverage for dental coverage, and to address irregularities in a federal program in Iowa, HIPIOWA-FED, which is a high-risk pool program for individuals who have pre-existing conditions and have not been able to find private health insurance. It requires HIPIOWA-FED to accept third-party payment of premiums for individuals enrolled in that program, allows HIPIOWA-FED to assess health insurance carriers in Iowa if the program incurs losses and additional federal funding is not provided to offset the losses, enhances Board membership and accountability, and strikes the third-party payer prohibition (514E.7). The House amended the bill by striking the HIPIOWA-Fed provisions, modifying dental review requirements, and adding navigator language applicable to the federal Affordable Care Act. The Senate further amended the House version by reinstating the HIPIOWA-FED provisions and adding language establishing a health insurance and cost containment bureau. [5/1: 26-23 party-line]

FLOOR ACTION:

SF 466 is designed to protect consumers and reputable business owners from unscrupulous residential exterior repair contractors, known as “storm chasers.” These “storm chasers”  typically travel from state to state following natural catastrophes, including severe wind and hail storms, floods and tornadoes that produce widespread property damages. The scammers then swoop in on towns and cities to take advantage of citizens by using high-pressure tactics, false promises and bogus endorsements, and often “advise” consumers as to what insurance policies “should” pay for exterior repairs. The bill bans these contractors from offering customers “rebates” on their insurance deductibles, or acting as adjustors or intermediaries between the customer and the insurance company. The bill passed the Senate and was amended by the House in 2011. The Attorney General’s Consumer Protection Division supported the Senate version, but maintained that the House amendment made homeowners more vulnerable to consumer fraud by contractors and strengthened the legal arguments of contractors who make oral promises to homeowners regarding financial liability. Consumers typically rely on what they are told face-to-face, then have difficulty proving oral misrepresentations. The Senate amended the House amendment to include recommendations by the Consumer Protection Division to strengthen penalties for violations and reinforce the current rights of Iowans under the Iowa Consumer Fraud Act. SF 466 now goes back to the House for further consideration. [4/11: 47-2 (Sorenson, Zaun “no”)]

FLOOR ACTION:

SF 2286, as approved by the Commerce Committee, specifies procedures applicable to claims asserting stray electric current or voltage negatively impacting dairy cows. It includes applicable definitions, including stray voltage or current. It requires the Iowa Utilities Board (IUB) to adopt rules establishing standard procedures and protocols for the measurement of stray current or voltage, directs the IUB to review the rules periodically to ensure that they remain accurate and reliable with regard to stray current or voltage measurement, and states that other forms of measurement may be considered by the IUB in appropriate cases. The standard procedures and protocols will be used by a utility in taking measurements of stray current or voltage, and by the IUB in preparing a determination of source document that may be used by either a dairy producer or a utility as evidence of the source and level of any stray current or voltage. The determination of source document must be based on qualified, measurable, scientific facts, and neither the IUB nor the document shall establish liability or civil damages in connection with such a civil lawsuit.

A dairy producer in Iowa who claims that their dairy cows are being affected may participate in a stray voltage program by providing written notice to the utility and, optionally, to the IUB containing a non-binding statement as to why they believe their dairy cows are being affected by electrical energy attributable to the utility. Within 14 business days after receipt of the notice, the utility must take or arrange to take measurements to identify the existence and magnitude of stray voltage or current. A civil action cannot begin by a dairy producer against a utility seeking damages or other relief allegedly due to injury caused by stray current or voltage unless the dairy producer has provided notice of its participation in the stray current or voltage program at least 90 days prior to filing the action. In such action, the written documentation prepared by or on behalf of the IUB is admissible as evidence, but the courts will determine civil damages based on evidence from both parties.

The Senate approved a “strike after”’ amendment [S-5147, voice vote]  that specifies procedures applicable to claims asserting stray electric current or voltage negatively impacting dairy cows and addresses the safety concerns that confront dairy farmers and utility workers. It replaces the stray voltage standard presented in the bill with a provision that directs the IUB to adopt rules governing the measurement of stray voltage. As amended, a dairy farmer must provide notice to the utility if the farmer believes damage is occurring on the property due to stray voltage, and the utility is required to respond to the notice within 14 days and coordinate a time to come on the farmstead to test for stray voltage. The dairy farmer must allow the utility or, if requested, the IUB representatives on the farm to conduct a test. [3/28: 35-14 (Anderson, Bacon, Behn, Bertrand, Bowman, Dix, Ernst, Greiner, Hahn, Johnson, Kapucian, Smith, Sorenson, Whitver “no”; Houser, excused)]

HF 2145 – Surplus lines insurance regulation

HF 2168 – Deposit of public funds

HF 2301 – Utility notice

FLOOR ACTION:

HF 2144 expands the definition of ownership of transmission facilities subject to a joint agreement between participants (e.g., city, electric cooperative, privately-owned utility company) to include facilities located outside of the state. Current law restricts ownership to facilities located in Iowa or contiguous states. A city or electric power agency may acquire ownership interest in a transmission facility, including ownership of the capacity of such facility, within Iowa or in any other state  to  participate with other utilities in transmission to be operated by a regional transmission organization or an independent transmission operator approved by the Federal  Energy Regulatory Commission. [3/21: 50-0]

HF 2145 allows more access to surplus lines insurance in Iowa. It creates a new Iowa Code Chapter which contains regulations that permit the sale of surplus lines insurance in the state by insurers who are not licensed to do insurance business in Iowa. Such insurers must be listed as eligible surplus lines insurers if they meet the requirements and are approved by the Iowa Insurance Commissioner. Surplus lines insurance producers already licensed to sell, solicit or negotiate surplus lines insurance are also subject to new regulations and must file reports and remit premium taxes to the state for all surplus lines insurance sold or delivered by the producer, as required by the Commissioner by rule. The bill takes effect upon enactment. [3/19: 50-0]

HF 2168 relates to the authorized investment of public funds. Currently, the uninsured portion of public funds invested through a depository may be invested in certificates of deposit arranged by the depository issued by one or more federally- insured banks or savings associations. The bill expands such authorized investments to include insured deposits and adds to the list of acceptable forms of collateral for the deposit of public funds. Collateral could include certificates of deposit issued by a Federal Deposit Insurance Corporation (FDIC) insured bank of which the principal and accrued interest are fully insured by the FDIC, and that have been assigned a CUSIP (Committee on Uniform Security Identification Procedures) number and deposited for the account of the public funds depository bank at the depository trust company.  The Senate unanimously amended the proposal to include recommendations by the Treasurer of State to further protect public funds. [3/21: 50-0]

FLOOR & COMMITTEE ACTION:

HF 2301 improves safety for electric utility line crews by requiring advance notice when renewable energy resources are connected to a distribution system. It applies to an owner of an alternate energy production facility that will be attached to, or connected to equipment that will be attached to, an electric transmission or distribution line who has not entered into a power purchase agreement with a public utility. The owner must provide written notice to the utility within whose service territory the facility is located no later than 30 days prior to construction or installation. The notice must include a statement that the facility is being constructed or installed, the type of facility and the date that facility expects to begin service. [3/21: 50-0] [3/15: short form]

SF 2293 – Insurance omnibus

SF 2294 – Real estate auctions

SF 2301 – Commercial breeder financial responsibility

HF 561 – Nuclear generation facilities

FLOOR ACTION:

SF 2128 expands the current requirement that state employee group health insurance policies, contracts or plans provide coverage benefits for the screening, diagnosis and treatment of autism spectrum disorders for individuals under 26 years of age. The new provision is applicable to group health policies, contracts or plans and to health plans for public employees. “Autism spectrum disorders” include autistic disorder, Asperger’s disorder and pervasive developmental disorders not otherwise specified, as defined by the Iowa Insurance Commissioner consistent with definitions provided in the American Psychiatric Association’s diagnostic and statistical manual of mental disorders. It states who can perform a diagnosis and who can provide treatment as prescribed by a physician or psychologist. It defines “rehabilitative care” as  professional services and treatment programs, including applied behavior analysis, that are provided by an autism service provider to produce socially significant improvements in human behavior or to prevent loss of  attained skills or functions. The bill does not require coverage by a group plan of any service solely based on inclusion of the service in an individualized education program (IEP). Consistent with federal or state law and with consent of a parent or guardian of a covered individual, the treatment may be coordinated with any services included in an IEP, but not contingent upon coordination of services with an IEP. [3/13 43-7 (Behn, Dix, Kettering, McKinley, Smith, Sorenson, Whitver “no”)]

SF 2293 is based on recommendations by the Iowa Insurance Division and was amended by the Committee. It allows mutual companies to define the membership of their boards without consideration of policy ownership so that they may broaden the pool of expertise needed, and strikes language on surplus lines that is now covered in HF 2145. It provides that procedures for external review of health care coverage decisions also apply to external review of coverage for dental. It also addresses irregularities in a federal program in Iowa, HIPIOWA-FED, that is set up as a high-risk pool program for individuals who have pre-existing conditions and have not been able to find private health insurance. It requires HIPIOWA-FED to accept third-party payment of premiums for individuals enrolled in that program, and allows HIPIOWA-FED to assess health insurance carriers in Iowa if the program incurs losses and additional federal funding is not provided to offset the losses. It replaces current Board membership provisions with a broader base of seven voting members with specified interest and seven non-voting members including the Insurance Commissioner, directors of the Departments of Human Services and Public Health and four legislators. It limits what can be spent on administrative costs and requires the program to abide by Iowa’s open meetings and open records laws. The bill strikes the third party payer prohibition (514E.7) and sets effective upon enactment provisions. [3/13: 26-23 party-line]

SF 2294 addresses authorized activities of auctioneers who are not real estate licensees in conducting a public sale or auction of real estate. The auctioneer’s role must be limited to establishing the time, place and method of an auction; advertising the auction, which is limited to a brief description of the property for auction and the time and place for the auction; and crying the property at the auction. The auctioneer must include in any advertising the name and address of the real estate broker who is providing brokerage services for the transaction and the name of the real estate broker, attorney or closing company responsible for closing the sale of the property. The real estate broker providing brokerage services must be present at the time of the auction. The auctioneer cannot  independently show the  property or host open houses, make  material and substantive representations regarding title, financing or closings, discuss or explain a contract, lease, agreement or other real estate document, contract for conducting the auction, provide the property owners or prospective buyers or tenants with advice, recommendations or suggestions regarding the sale, purchase, exchange, rental or leasing of the real estate, or collect or hold deposit moneys, rent, other moneys or anything of value received from the owner or from a prospective or tenant except fees, commissions or other consideration paid in exchange for conducting the auction. [3/13: 47-3 (Boettger, Feenstra, Greiner “no”)]

SF 2301, known as the “Safe Harbor” bill, will provide for a special fund at the Iowa Department of Agriculture reserved for local authorities to tap into to pay for the care of non-agriculture animals in the event they need to be rescued. The Safe Harbor fund will be financed by the license fees already being paid by those who are licensed by the state as commercial establishments, breeders, shelters, kennels, pet shops, pounds, public auctions or research facilities. No new fees or fee increases will be needed. Currently, at least four USDA-licensed commercial breeders are under review by the USDA’s Investigation and Enforcement Services. If those licenses are cancelled, the disposition of more than 400 adult dogs and an unknown number of puppies will be in question. Law enforcement officials in Sac, Greene and Clinton counties noted the high cost to taxpayers and non-profit groups in recent months when rescues were necessary due to severe neglect and abandonment. The rescue fund will help local authorities recoup their costs for food, water and medical care in these instances. SF 2301 is patterned after SF 478, which set up a funding mechanism to provide for livestock deemed to be neglected and in need of immediate sustenance, which was signed into law in 2011. [3/12: 30-20 (Senator Sorenson inadvertently voted “aye” and in the Senate Journal stated that he intended to vote “nay” on the bill)]

COMMITTEE ACTION:

HF 561 addresses permitting, licensing, construction and operation of nuclear generation facilities in Iowa. The original proposal was amended and passed the House 68-30 on April 27, 2011. A committee amendment was approved on a 10-5 vote that includes provisions to strike legislative intent language, allow only the Iowa Utilities Board (IUB) — not the utility — to cancel a project, enhance the transparency of the business plan and specify that customers do not pay before the utility has demonstrated to the IUB that it has incurred costs before it may recover any costs from customers. A second proposed committee amendment was approved (short form, Seng “no”) that requires the IUB to conduct an annual review of the utility’s expenditures to make sure they fall within a predetermined cap and are rational and prudent. [3/13: 8-7 WITHOUT RECOMMENDATION (voting yes: McCoy, Rielly, Anderson, Bertrand, Feenstra, Kettering, Ward, Zaun; voting no: Beall, Bolkcom, Courtney, Mathis, Schoenjahn, Seng, Wilhelm)]

SF 2279 – Credit Union omnibus

SF 2280 – Boiler inspections

FLOOR ACTION:

SF 2171 provides that a policy, contract or plan providing for third-party payment or prepayment of health or medical expenses cannot impose a copayment or coinsurance amount on an insured for services provided by a chiropractor that is more than the amount imposed on the insured for services by a doctor of medicine and surgery or doctor of osteopathic medicine and surgery for the same or a similar diagnosed condition. The bill applies to specified individual and group policies, contracts and plans issued, continued or renewed in Iowa beginning July, 2012. [3/5: 40-9 (Boettger, Chelgren, Dix, Ernst, Kettering, McKinley, Seymour, Ward, Whitver “no”; Behn excused)]

SF 2279 is a recommendation by the Iowa Credit Union Division of the Iowa Department of Commerce. It streamlines current language regarding methods by which credit unions may conduct a vote of the membership (e.g., director elections, amendment to the bylaws or articles of incorporation, dissolution, merger) so that a credit union’s board of directors can more easily select from specific options. It codifies current practice regarding assessment of a single fee with supervision and examination components, which are paid in two installments each year. The examination fee language for Credit Union Service Organizations does not change. It lowers the minimum number of directors from 9 to 7 to assist smaller credit unions that have experienced difficulty in attracting sufficient volunteer directors. The bill also allows a credit union to charge fees against a share amount, according to the credit union’s policies, which may allow it to close  the account sooner than the three-year abandonment statute. Current Code prohibits credit unions from assessing fees against the ownership share, an amount (typically $5 to $25) that is required for membership in the credit union. In the case of inactive accounts, that share amount remains, and the credit union has to bear the cost of maintaining the account until the account can be declared abandoned and the amount turned over to the state as unclaimed property. [3/5: 49-0]

SF 2280 modifies the criteria for boilers or pressure vessels that must be inspected by the Labor Commissioner or designee at least once a year externally while under pressure, and at least once every four years internally while not under pressure, unless the Commissioner determines an earlier inspection is warranted. One of the criteria is that the owner or user is a participant in good standing in the Iowa Occupational Safety and Health voluntary protection program administered by the Labor Division of the Department of Workforce Development and has achieved star status within the program. The bill provides an alternative to that criterion, if  the object is an unfired steam pressure vessel and is part of or integral to the continuous operation of a process covered by and compliant with the federal Occupational Safety and Health Administration’s process safety management standard, and the owner demonstrates such compliance to a special inspector or the Labor Commissioner. The object must also be included as “process safety management process equipment” in the owner’s process safety management program. The original proposal was amended to include recommendations made by the Iowa Boiler and Pressure Vessel Board. [3/6: 49-0]

SF 2127 – Banking Division Professional Licensure technical

SF 2170 – Notice of property tax sale certificate

SF 2202 – Banking omnibus

SF 2279 – Credit Union omnibus

SF 2280 – Boiler inspections

SF 2286 – Stray voltage measurement, protocols, claims

SF 2293 – Insurance omnibus

SF 2294 – Real estate auctions

SF 2301 – Commercial breeder financial responsibility

HF 2168 – Deposit of public funds

FLOOR ACTION:

SF 2127 is a recommendation by the Banking Division’s Professional Licensing and Regulation Bureau. It updates provisions for land surveyors, including striking obsolete “registered” references to the current “licensed” land surveyors, and makes  references to “professional land surveyors” or “licensed professional land surveyors” consistent with provisions for professional engineers and licensed  professional engineers. The bill also removes provisions relating to staff communication by mail with professional engineers and land surveyors regarding licensure status, and references to license expiration in multiyear intervals in connection with professional engineers and land surveyors, registered architects and landscape architects. [2/27: 50-0]

SF 2170 relates to notices made by a holder of a property tax sale certificate of purchase following a tax sale. It requires that service of the notice of expiration of right of redemption made on specified lienholders and interest holders be made by both regular mail and certified mail. Service of the notice must be made by both regular mail and certified mail on any mortgagee having a lien upon the parcel, a vendor of the parcel under a recorded contract of sale, a lessor who has a recorded lease or recorded memorandum of a lease, and any other person who has an interest of record, at the person’s last known address. Service of the notice is completed when the notice is deposited in the mail and postmarked for delivery. The U.S. Postal Service provides a mailer with a receipt of proof of certified mail. The law in effect at the time of tax sale governs redemption. [2/29: 50-0]

SF 2202 is a recommendation from the Iowa Division of Banking (IDOB) that authorizes mutual ownership as a potential option for state-chartered banks and bank holding companies. The Dodd-Frank Act has prompted several federally-chartered thrifts to convert to state-chartered bank. Some Iowa thrifts with mutual ownership either at the bank or the holding company level face an obstacle to conversion because Iowa law currently does not recognize mutual ownership for state banks. The bill also:

** Authorizes state banks to own additional Federal Home Loan Bank (FHLB) stock within set limits without seeking prior Superintendent of Banking approval when additional stock is necessary to allow the bank to participate in FHLB mortgage programs.

** Makes Iowa law consistent with federal regulations regarding affiliate transactions by allowing the Superintendent to give  a state bank an exemption from the restrictions on affiliate transactions when there is a legitimate reason for the exemption and the exemption is in the public interest and consistent with the purposes of the restrictions on affiliate transactions.

** Changes receivership procedures in a bank failure to make appointment of the FDIC as receiver automatic.

** Eliminates duplication of efforts between the IDOB and the Title Guaranty Division of the Iowa Finance Authority by authorizing the IDOB to share its closing company exam reports with Title Guaranty for its reinsurance purposes, so only one entity is examining or auditing the closing companies.

** Repeals obsolete and outdated laws covering Savings and Loan Associations (Chapter 534 and various Iowa Code references) because there have been no state-chartered savings and loan associations for many years. [2/28: 50-0]

COMMITTEE ACTION:

SF 2042 creates the Iowa Health Benefit Marketplace, a statewide health insurance exchange through which individuals and small employers could buy health insurance. It would be established as a non-profit corporation within the Iowa Insurance Division. It also sets up a 13-member governing board to allow input from all stakeholders. The Marketplace would consolidate all the available plans sold in Iowa and give consumers a”one-stop shop” to choose an affordable plan. The legislation does not preempt or supersede the regulatory authority of the Iowa Insurance Commissioner. The bill would take effect upon enactment. [2/23: short form (Anderson, Bertrand, Feenstra, Ward, Zaun “no”)]

SF 2279 (SSB 314) is a recommendation by the Iowa Credit Union Division of the Iowa Department of Commerce. It streamlines current language regarding methods by which credit unions may conduct a vote of the membership (such as director elections, amendment to the bylaws or articles of incorporation, dissolution, merger) so that a credit union’s board of directors can more easily select from specific options. It codifies current practice regarding assessment of a single fee with supervision and examination components, which are paid in two installments each year. The examination fee language for Credit Union Service Organizations does not change. It lowers the minimum number of directors from 9 to 7 to assist smaller credit unions that have experienced difficulty in attracting sufficient volunteer directors. The bill also allows a credit union to charge fees against a share amount, according to the credit union’s policies, which may allow it to close  the account sooner than the three-year abandonment statute. Current Code prohibits credit unions from assessing fees against the ownership share, an amount (typically $5 to $25) that is required for membership in the credit union. In the case of inactive accounts, that share amount remains, and the credit union has to bear the cost of maintaining the account until the account can be declared abandoned and the amount turned over to the state as unclaimed property. [2/23: short form]

SF 2280 (SSB 3158) modifies the criteria for boilers or pressure vessels that must be inspected by the Labor Commissioner or designee at least once a year externally while under  pressure, and at least once every four years internally while not under pressure, unless the Commissioner determines an earlier inspection is warranted. One of the criteria is that the owner or user is a participant in good standing in the Iowa Occupational Safety and Health voluntary protection program administered by the Labor Division of the Department of Workforce Development and has achieved star status within the program. The bill provides an alternative to that criterion, if the object is an unfired steam pressure vessel and is part of or integral to the continuous operation of a process covered by and compliant with the federal occupational safety and health administration’s process safety management standard, and the owner demonstrates such compliance to a special inspector or the Labor Commissioner. The object must also be included as “process safety management process equipment” in the owner’s process safety management program. [2/23: short form]

SF 2286 (SF 2072) specifies procedures applicable to claims asserting stray electric current or voltage impacting dairy cows. It requires the Iowa Utilities Board (IUB) to adopt rules establishing standard procedures and protocols for the measurement of stray current or voltage, and directs the IUB to review the rules periodically to ensure that they remain accurate and reliable with regard to stray current or voltage measurement, and states that other forms of measurement may be considered by the IUB in appropriate cases. The purpose for the standard procedures and protocols will be used by a utility in taking measurements of stray current or voltage, and by the IUB in preparing a determination of source document that may be used by either a dairy producer or a utility as evidence of the source and level of any stray current or voltage. The determination of source document must be based on qualified, measurable, scientific facts, and neither the IUB nor the document shall establish liability or civil damages in connection with such a civil lawsuit. A dairy producer in Iowa who claims that its dairy cows are being affected may participate in a stray voltage program by providing written notice to the utility and, optionally, to the IUB containing a non-binding statement as to why the dairy producer believes its dairy cows are being affected by electrical energy attributable to the utility. Within 14 business days after receipt of the notice, the utility must take or arrange to take measurements to identify the existence and magnitude of stray voltage or current. A civil action cannot begin by a dairy producer against a utility seeking damages or other relief allegedly due to injury caused by stray current or voltage unless the dairy producer has provided notice of its participation in the stray current or voltage program at least 90 days prior to filing the action. In such an action, the written documentation prepared by or on behalf of the IUB may be admissible in evidence, but civil damages must be determined by a court of law based on evidence provided by both parties. [2/23: 10-3 (Anderson, Bertrand, Seng “no”)]

SF 2293 (SSB 3066) is based on recommendations by the Iowa Insurance Division and was amended by the Committee. It allows mutual companies to define the membership of their boards without consideration of policy ownership so that they may broaden the pool of expertise needed, and strikes language on surplus lines that is now covered in HF 2145 (amendment 4154: short form). It provides that procedures for external review of health care coverage decisions also apply to external review of coverage for dental care (amendment 4286: short form, Rielly “no”). It also  addresses irregularities in a federal program in Iowa, HIPIOWA-FED, that is set up as a high-risk pool program for individuals who have pre-existing conditions and have not been able to find private health insurance. It requires HIPIOWA-FED to accept third-party payment of premiums for individuals enrolled in that program, and allows HIPIOWA-FED to assess health insurance carriers in Iowa if the program incurs losses and additional federal funding is not provided to offset the losses. It replaces current Board membership provisions with a broader base of seven voting members with specified interest and seven non-voting members including the Insurance Commissioner, directors of the Departments of Human Services and Public Health and four legislators. It limits what can be spent on administrative costs and requires the program to abide by Iowa’s open meetings and open records laws (amendment 4185: short form, Rielly, Anderson, Bertrand, Feenstra, Ward, Zaun “no”). [2/23: short form (Rielly, Feenstra “no”)]

SF 2294 (SSB 3064) modifies the authorized activities of auctioneers in conducting a public sale or auction of real estate. The legislation lists prohibited activities (e.g. independently showing a property, hosting open houses, providing substantive representations regarding title, financing or closing)  which, if  performed by an auctioneer, will subject the auctioneer to the licensing provisions governing real estate brokers and salespersons. [2/23: short form]

SF 2301 (SSB 3159) requires commercially licensed breeders of dogs and cats to carry a surety bond to cover the costs of care to animals should rescue be necessary. Rescue may be required in cases where the owner is unable or unwilling to dispose of the animals, the owner is found to be neglecting or abusing the animals, or in cases of natural disasters such as tornadoes or flooding.

Surety bonds are similar to comprehensive insurance on one’s vehicle or home and are meant to ensure that the taxpaying public isn’t “stuck” with the bills. Surety bonds typically cost $1 for every $1,000 in coverage. SF 2301 sets the coverage range based on the number of breeding animals: 20-50=$10,000; 51-100=$20,000; 101-250=$40,000; and more than 250=$100,000. Those parties responsible for the costs will be held accountable to ensure that the burden of paying for the unintended consequences associated with the business falls on the business owner and not the general public.

The bill only applies to commercial breeders holding either a U.S. Department of Agriculture (USDA) certificate or a State of Iowa license to breed and sell companion animals. It does not change current licensing requirements that anyone who keeps more than three intact breeding dogs or cats and breeds them to sell the offspring must be licensed with the USDA or the Iowa Department of Agriculture and Land Stewardship. In Committee discussion, it was suggested that the bill be amended to more closely be the companion-animal equivalent to legislation [SF 478] that was unanimously passed and signed into law last year that provides for reasonable and responsible financial resources to cover the cost of caring for “livestock deemed to be neglected.” [2/23: short form (Anderson, Bertrand, Feenstra, Kettering “no”)]

HF 2168 relates to the authorized investment of public funds. Currently, the uninsured portion of public funds invested through a depository may be invested in certificates of deposit arranged by the depository issued by one or more federally- insured banks or savings associations. The bill expands such authorized investments to include insured deposits and adds to the list of acceptable forms of collateral for the deposit of public funds. Collateral could include certificates of deposit issued by a Federal Deposit Insurance Corporation (FDIC) insured bank of which the principal and accrued interest are fully insured by the FDIC, and that have been assigned a CUSIP (Committee on Uniform Security Identification Procedures) number and deposited for the account of the public funds depository bank at the depository trust company. [2/23: short form]

HF 2144 – Transmission facility ownership

HF 2145 – Surplus lines insurance regulation

COMMITTEE ACTION:

SF 2128 expands the current requirement that state employee group health insurance policies, contracts or plans provide coverage benefits for the screening, diagnosis and treatment of autism spectrum disorders for individuals under 26 years of age. The new provision is applicable to group health policies, contracts or plans and to health plans for public employees. “Autism spectrum disorder” includes autistic disorder, Asperger’s disorder and pervasive developmental disorders not otherwise specified, as defined by the Iowa Insurance Commissioner consistent with definitions provided in the American Psychiatric Association’s diagnostic and statistical manual of mental disorders. The bill was moved forward to continue discussions and consider amendment options. [2/21: short form]

HF 2144 expands the definition of ownership of transmission facilities subject to a joint agreement between participants (e.g.,city, electric cooperative, privately-owned utility company) to include facilities located outside of the state. Current law restricts ownership to facilities located in Iowa or contiguous states. A city or electric power agency may acquire ownership interest in a transmission facility, including ownership of the capacity of such facility, within Iowa or in any other state  to  participate with other utilities in transmission to be operated by a regional transmission organization or an independent transmission operator approved by the Federal  Energy Regulatory Commission. The bill passed the House 97-0. [2/21: short form]

HF 2145 allows more access to surplus lines insurance in Iowa. It creates a new Iowa Code Chapter which contains regulations that permit the sale of surplus lines insurance in the state by insurers who are not licensed to do insurance business in Iowa. Such insurers must be listed as eligible surplus lines insurers if they meet the requirements and are approved by the Iowa Insurance Commissioner. Surplus lines insurance producers already licensed to sell, solicit or negotiate surplus lines insurance are also subject to new regulations and must file reports and remit premium taxes to the state for all surplus lines insurance sold or delivered by the producer, as required by the Commissioner by rule. The bill takes effect upon enactment. HF 2145 passed the House on a vote of 97-0. [2/21: short form]

SF 2171 –Chiropractic services third-party payment

SSB 3101 — ABD criminal history records access

SSB 3125 – Banking omnibus

COMMITTEE ACTION:

SF 2170 (SSB 3098) relates to notices made by a holder of a property tax sale certificate of purchase following a tax sale. It requires that service of the notice of expiration of right of redemption made on specified lienholders and interest holders be made by both regular mail and certified mail. Service of the notice must be made by both regular mail and certified mail on any mortgagee having a lien upon the parcel, a vendor of the parcel under a recorded contract of sale, a lessor who has a recorded lease or recorded memorandum of a lease, and any other person who has an interest of record, at the person’s last known address. Service of the notice is completed when the notice is deposited in the mail and postmarked for delivery. The U.S. Postal Service provides a mailer with a receipt of proof of certified mail. The law in effect at the time of tax sale governs redemption. [2/9: short form]

SF 2171 (SSB 3063) provides that a policy, contract or plan providing for third-party payment or prepayment of health or medical expenses cannot impose a copayment or coinsurance amount on an insured for services provided by a chiropractor that is more than the amount imposed on the insured for services by a doctor of medicine and surgery or doctor of osteopathic medicine and surgery for the same or a similar diagnosed condition. The bill applies to specified individual and group policies, contracts and plans issued, continued or renewed in Iowa beginning in July 2012. [2/9: short form (Kettering, Ward “no”)]

SSB 3101 is an Alcoholic Beverage Division (ABD) recommendation that gives it the statutory authorization it needs to access state and national criminal history records when it has reasonable cause to question the information provided on an application for a license or permit.

Alcoholic beverages retailers, wholesalers, manufacturers, importers and brokers are required to apply for and obtain a license or permit from the ABD prior to conducting business in Iowa. The process to obtain a license or permit begins with the completion of the online application. The application collects information necessary to determine if the applicant and the proposed premises meets the state’s legal licensing requirements. The names and addresses of all persons owning or controlling ten percent of the business must be disclosed on the application. Individuals listed in the ownership section of the application are required to disclose if they have been charged, arrested, indicted, convicted or received a deferred judgment for any violation of state, county, city, federal or foreign law. The application includes an electronic signature page which plainly states that providing false information may result in license denial.

Once submitted, the application is forwarded to the city or county where the business is located for local review. If approved at the local level, the application is forwarded to the ABD for state review and approval. When an application containing false information is approved, it can result in a license or permit being issued to an individual who does not meet the legal requirements to hold one. The bill also codifies the consequences an individual may face if false information is provided on an application.

The National Crime Information Center (NCIC) is a computerized criminal justice information system maintained by the Federal Bureau of Investigation. Currently, three Iowa non-criminal justice agencies—Iowa Racing and Gaming Commission, Iowa Real Estate Commission, and Iowa Division of Banking—have access to NCIC data for use in connection with licensing. ABD will pay the actual cost of all fingerprinting and criminal history checks. [2/14: short form]

SSB 3125 is a recommendation from the Iowa Division of Banking (IDOB) that authorizes mutual ownership as a potential option for state-chartered banks and bank holding companies. The Dodd-Frank Act has prompted several federally-chartered thrifts to convert to state-chartered bank. Some Iowa thrifts with mutual ownership either at the bank or the holding company level face an obstacle to conversion because Iowa law currently does not recognize mutual ownership for state banks. The bill also:

** Authorizes state banks to own additional Federal Home Loan Bank (FHLB) stock within set limits without seeking prior Superintendent of Banking approval when additional stock is necessary to allow the bank to participate in FHLB mortgage programs.

** Makes Iowa law consistent with federal regulations regarding affiliate transactions by allowing the Superintendent to give  a state bank an exemption from the restrictions on affiliate transactions when there is a legitimate reason for the exemption and the exemption is in the public interest and consistent with the purposes of the restrictions on affiliate transactions.

** Changes receivership procedures in a bank failure to make appointment of the FDIC as receiver automatic.

** Eliminates duplication of efforts between the IDOB and the Title Guaranty Division of the Iowa Finance Authority by authorizing the IDOB to share its closing company exam reports with Title Guaranty for its reinsurance purposes, so only one entity is examining or auditing the closing companies.

** Repeals obsolete and outdated laws covering Savings and Loan Associations [Chapter 534 and various Iowa Code references] because there have been no state-chartered savings and loan associations for many years. [2/14: short form]

COMMITTEE ACTION:

SF 2127 (SSB 3067) is a recommendation by the Banking Division’s Professional Licensing and Regulation Bureau. It updates provisions for land surveyors, including striking obsolete “registered” references to the current “licensed” land surveyors, and makes  references to “professional land surveyors” or “licensed professional land surveyors” consistent with provisions for professional engineers and licensed  professional engineers. The bill also removes provisions relating to staff communication by mail with professional engineers and land surveyors regarding licensure status, and references to license expiration in multiyear intervals in connection with professional engineers and land surveyors, registered architects and landscape architects. [2/2: short form]