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FLOOR ACTION:
HF 235 – Service charges on consumer credit loans
HF 235 (SF 229) modifies legislation enacted in 2019 that allows a service charge to be applied on certain types of regulated loans that are interest-bearing. The service charge is capped at $30, or 10% of the loan, not to exceed $30. Regulated companies such as Town Financial, headquartered in Des Moines, use pre-computed loans, which are not considered interest-bearing under current law. The typical loans are small loans for appliances, auto repair, purchases of cars, home repairs and emergency circumstances that impact families. This bill allows a service charge to be applied to both interest-bearing and non-interest-bearing loan products. The Division of Banking and the Consumer Protection Division of the Attorney General’s Office oversee regulated loan companies. Representatives from both offices reviewed the proposed language over the interim and have no objections.
[2/9: 48-0 (Excused: Hogg, Nunn)]
COMMITTEE ACTION:
SSB 1047 – Defrauding drug, alcohol test in employment
SSB 1047 creates a new criminal offense of defrauding a drug or alcohol test in employment. It defines a drug or alcohol test given in a private-sector workplace and a drug or alcohol test given by a public employer. It prohibits a person from manufacturing, marketing, selling, distributing, using or possessing synthetic urine, or a urine additive to defraud a drug or alcohol test, and prohibits a person from knowingly using their own urine expelled or withdrawn prior to the collection of a urine sample for a test or from using the urine of another person to defraud a drug or alcohol test. It allows a person who collects a urine sample from another person for a drug or alcohol test, who knows or has a reasonable suspicion that the other person used synthetic urine or a urine additive in violation of the bill to report that information to law enforcement authorities. A violation is a simple misdemeanor for a first offense and a serious misdemeanor for subsequent offenses. A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of $65 to $625, or by both. A serious misdemeanor is punishable by confinement for no more than one year and a fine of $315 to $1,875. The companion, HF 283 by Judiciary, is on the House Calendar.
[2/10: 10-5-2 (No: Bisignano, Klimesh, Lykam, Mathis, Petersen; Present: Quirmbach, Wahls)]
SSB 1086 – Reinvestments, collateralization by life insurance companies
SSB 1086 allows life insurance companies and associations to reinvest cash or cash equivalent collateral for loans from securities held in their legal reserves in repurchase agreements collateralized by securities in U.S. government obligations maturing in 270 days or more, rather than the current law that states such agreements must mature in less than 270 days. It applies to reinvestments on or after January 1, 2022. The Federation of Iowa Insurers and Principal Financial Group support the measure. The companion, HF 236, passed the House 88-0.
[2/10: short form]
SSB 1127 – Calculation of finance charges on open-end consumer loans
SSB 1127 is a recommendation by the Iowa Attorney General. The proposal adds an additional daily calculation option
on the calculation of finance charges on open-end consumer loans. The Iowa Bankers Association worked with the Attorney General’s staff over the interim to craft a modification for banks that want to have this option while maintaining the integrity of the Iowa Consumer Credit Code. The bill establishes that the actual balance on a day is determined by adding to the unpaid balance as of the beginning of that day all purchases and other debits and deducting all payments and other credits made or received as of that day. The companion is assigned to the House Judiciary Committee.
[2/10: short form]
SSB 1128 – IUB Omnibus
SSB 1128is a departmental recommendation by the Iowa Utilities Board (IUB). It makes technical changes to current Code; authorizes the IUB to again have an administrative law judge on staff to assist with ensuring compliance with legal requirements; codifies current practices on advanced estimated assessments; allows the IUB to assess and bill interstate pipeline companies in the same manner as intrastate pipeline companies; aligns civil penalties with federal levels regarding pipeline and hazard waste safety to eliminate the need for IUB to continually file legislation to match the U.S. Department of Transportation Pipeline and Hazard Materials Safety Administration dollar amounts for fines; and allows the Board to identify when payments will be remitted to the Dual Party Relay Fund.
[2/10: short form]
SSB 1130 – IID Omnibus
SSB 1130isa departmental recommendation by the Iowa Insurance Division (IID). It includesclean-up language, clarifications requested by the Legislative Services Agency, and updates to correspond with recent federal laws and regulations. It also strengthens consumer protections in the Division’s regulatory authority of pre-need funeral arrangements, and raises an enforcement fee for cemeteries that are in receivership. IID currently is the receiver of three cemeteries (Fort Dodge, Dubuque and Clinton) and, with financial stresses and aging ownerships, likely will see more.
[2/10: short form]