Category: Commerce Committee

SF 567 – Loans originated by mortgage bankers – VETOED 

SF 567 adds certain Iowa-licensed or Iowa-registered mortgage bankers to CH. 535B provisions. It allows non-depository lenders (a.k.a. non-banks) that originate mortgage loans, including Rocket Mortgage/Quicken Loans, to charge the same points and fees as other financial institutions.

The Association of Business and Industry (ABI) and the Iowa Mortgage Association supported the proposal. They stated that these non-depository lenders were “omitted” from mortgage banker legislation passed a few years ago, and also asked the subcommittee to amend the original study bill to include mortgage bankers registered in Iowa. 

[3/22: 48-0 (Excused: Kinney, Nunn)] – VETOED

HF 235 – Service charges on consumer credit loans

HF 235 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, car purchases, 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 and had no objections.
[2/9: 48-0 (Excused: Hogg, Nunn)]

HF 236 – Reinvestments, collateralization by life insurance companies

HF 236 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. Current law requires such agreements to 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 change.
[4/7: 44-0 (Excused: Brown, Carlin, Dawson, Hogg, Nunn, Schultz)]

HF 283 – Defrauding drug, alcohol tests in employment

HF 283creates 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 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 suspects the other person used synthetic urine or a urine additive, to report that information to law enforcement.

A violation is a simple misdemeanor for a first offense and a serious misdemeanor for subsequent offenses. A simple misdemeanor is punishable by up to 30 days in jail, or a fine of $65 to $625, or by both. A serious misdemeanor is punishable by up to one year in jail and a fine of $315 to $1,875. The court may require a substance-abuse evaluation and treatment, to be completed at the defendant’s expense, through a program licensed by the Iowa Department of Public Health in lieu of or in addition to other penalties. The bill does not apply to synthetic urine or urine additive used solely for education or law enforcement purposes. HF 283 passed the House 61-30.
[2/17: 32-16 (Yes: Republicans, Kinney; Excused: Hogg, Nunn)]

HF 304 – Personal delivery devices

HF 304relates to personal delivery devices (PDD), such as Amazon’s “Scout” or FedEx’s “Roxo.” A PDD is a battery-powered land device that can operate autonomously but has human oversight and can be controlled remotely if necessary. A PDD can detect obstacles, change speeds and stop, and is used by companies to deliver goods to customers who choose to use their service. PDDs are primarily used in urban environments and are designed to be operated where a pedestrian can walk, including crosswalks.

The bill requires the business to maintain general liability insurance coverage of at least $500,000 for damages arising from the operation of the device. Each PDD must be clearly marked with a name, unique identification number and contact information of the business operating the device. It must also have a braking system that allows a controlled stop at a safe distance, lighted lamps visible on all sides and additional lighting systems relating to weather conditions. The operator must comply with pedestrian safety and traffic laws and ordinances. If there is no reasonable access to a pedestrian area, a PDD may travel on a road with a maximum speed limit of 40 miles per hour. However, the PDD speed cannot exceed 20 miles per hour or the speed limit of the road, whichever is lower. 

Penalties for violations are: 

• Excess speed: scheduled fine of $30 to $135, plus $5 for each mile over 20 miles per hour.
• Operators who fail to meet operation requirements: scheduled fine of $35 for each violation.
• Operators who fail to meet identification marker and braking-system specifications: fine of at least $100, but not more than $1,000 for each violation.
• Operators who fail to meet required lighting specifications: scheduled fine of $45.

The maximum speed of PDDs in pedestrian areas is limited to six miles per hour. They must travel as far right as practicable when on a roadway. Claims for personal injury or property damage are subject to the laws applicable to such claims arising from pedestrian conduct. A local authority may ban operation of PDDs on roads and pedestrian areas in its jurisdiction, if the operation constitutes a safety hazard.
[4/21: 46-0 (Excused: Mathis, Nunn, Schultz, Whiting)]

HF 555 – Natural gas, propane sales in cities, counties

HF 555prohibits a county or a city from regulating, adopting, enforcing or administering an ordinance, motion, resolution or amendment that bans, impedes, restricts or regulates the use of propane and natural gas as a power source. It grandfathers in current agreements, such LP tanks in counties, cities and municipal utilities, and exempts franchise agreements, which are subject to other state laws and regulations.

Supporters maintain this ensures that consumers have access to diverse energy options to keep the lights, power and heat on. They note that the National Propane Gas Association and the American Gas Association are working to position propane and natural gas as part of the clean energy future, and protect propane and natural gas from actions that would ban or curtail their use.

Opponents say the bill is unnecessary, that no city or county in Iowa has proposed restricting natural gas or propane, and that the proposal stifles flexibility and opportunities for innovation. Sen. Quirmbach offered an amendment (S-1698) that would allow regulation by counties and cities, and specified that the legislation must not be interpreted to restrict a county or city from promoting alternative energy. The amendment lost 18-27 (Yes: Democrats, Rozenboom).

Those registered in favor include ABI, Iowa Propane Gas Association, Iowa Utility Association, Alliant, MidAmerican, Iowa Home Builders Association, FUELIowa (Petroleum Marketers), Iowa Association of Municipal Utilities, Black Hills Energy and Iowa Association of Electric Cooperatives. Opponents include Iowa State Association of Counties, Association of County Supervisors, Iowa League of Cities, County Planning and Zoning Officials of Iowa, Iowa Environmental Council, Environmental Law and Policy Center, and Iowa Sierra Club. The bill passed the House 57-36 (most Democrats voting “no”).
[3/29: 29-16 (Yes: Republicans, Kinney, Lykam; No: Democrats, Lofgren; Excused: Driscoll, Hogg, Kraayenbrink, Nunn, Sweeney)]

HF 556 – Agricultural equipment dealership agreements

HF 556 clarifies the rights of agricultural equipment dealers to protections when an agreement with a supplier is terminated. It modifies current law regarding when a dealership agreement is terminated by cancellation or non-renewal. Regardless of which party terminated the agreement, the supplier must repurchase equipment and parts in the dealer’s inventory and must repurchase special tools and computer hardware or software required for the dealership.
[4/7: 44-0 (Excused: Brown, Carlin, Dawson, Hogg, Nunn, Schultz)]

HF 583 – Private flood insurance coverage 

HF 583 is a recommendation by the Iowa Insurance Division based on a model act by the National Council of Insurance Legislators. The goal is to help foster an environment for innovative flood insurance, and give consumers greater choice in purchasing flood insurance coverage. New Code Chapter 515J provides standard provisions for policies to create coverage similar to the federally-backed National Flood Insurance Policy (NFIP) plans. Consumer protections and notices are included to inform the consumer of the policy features. These new sections provide guidance for rate and form filings, use of surplus lines, NFIP notice to applicant, and cancellation and non-renewal requirements.

Flooding is the most frequent and expensive natural disaster in the United States, yet typically not covered through most homeowner’s and renter’s insurance policies. Federal regulatory changes have created an opening where private flood insurance could be less expensive for consumers than options offered through NFIP. Federal officials are working with individual states to facilitate the development of the private flood insurance market so that consumers have access to alternative options.
[4/7: 44-0 (Excused: Brown, Carlin, Dawson, Hogg, Nunn, Schultz)]

HF 693 – IUB Omnibus

HF 693, a recommendation by the Iowa Utilities Board (IUB), makes technical changes to Iowa Code; authorizes the IUB to again have an administrative law judge on staff to assist with ensuring compliance with legal requirements; codifies 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 hazardous 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. SF 347 modifies the method of computing year-end assessments for telecommunication providers that are registered with the IUB.
[4/13: 45-0 (Absent: Hogg, Lofgren, Nunn, Petersen, Rozenboom)]

HF 719 – IID data security, cybersecurity standards

HF 719 is an Iowa Insurance Division recommendation to address an increasing number of data breaches involving large insurers that have exposed and compromised sensitive personal information of millions of consumers. State insurance regulators made re-evaluation of the regulations around cybersecurity and consumer data protection a top priority.

The National Association of Insurance Commissioners drafted the Insurance Data Security Model Law, which was adopted after almost two years of deliberations and input from state insurance regulators, consumer representatives and the insurance industry. In an October 2017 report on the asset management and insurance industries, the U.S. Department of Treasury recommended states promptly adopt the model. If a state does not adopt and implement a model that results in uniform data security regulations within five years, Congress will pass legislation setting forth uniform requirements for insurer data security.

This bill exempts licensees with fewer than 10 employees and licensees compliant with the Health Insurance Portability and Accountability Act (HIPAA). It does not create a private cause of action, or limit an existing private right of action. The Commissioner may adopt rules to administer the law, which takes effect January 1, 2022.
[4/7: 44-0 (Excused: Brown, Carlin, Dawson, Hogg, Nunn, Schultz)]

HF 775 – Sampling, recording devices on private property/agricultural animals, crops

HF 775 establishes the crime of unauthorized sampling under Iowa Code section 716.14. A person commits unauthorized sampling if they enter private property without consent of the owner or any other person having real or apparent authority to grant consent, and obtain samples of any materials. A first offense is an aggravated misdemeanor. Second or subsequent offenses are Class “D” felonies. An aggravated misdemeanor is punishable by up to two years in prison and a fine of up to $8,450. A Class “D” felony is punishable by up to five years in prison and a fine of up to $10,245.

Agricultural animals include bovine (cows), caprine (goats), equine (horse), ovine (sheep), porcine (pigs), farm deer, ostriches, rheas, emus, turkeys, chickens, domestic geese or ducks, domestic fowl, honey bees, or fish or aquatic organisms confined to private waters for human consumption. Agricultural crops are any plant produced for food, animal feed, fiber, oil or fuel if the plant is classified as a forage or cereal plant. Agricultural crops specifically include alfalfa, barley, buckwheat, corn, flax, forage, hemp, millet, oats, popcorn, rye, sorghum, soybeans, sunflowers, wheat, or grasses used for forage or silage. Noxious weeds aren’t considered agricultural crops unless produced as research crops.

It also creates Iowa Code section 727.8A to provide that a person who trespasses and uses a camera or electronic surveillance that transmits or records images or data commits an aggravated misdemeanor for a first offense and a Class D felony for a second offense. HF 775 passed the House 72-24.
[4/6: 35-11 (No: Bolkcom, Celsi, Giddens, Jochum, Lykam, Mathis, Petersen, Quirmbach, Ragan, Trone Garriott, Wahls; Excused: Dawson, Hogg, Nunn, Schultz)]

HF 805 – ICN billing system update

HF 805, a recommendation by the Iowa Telecommunications and Technology Commission, creates efficiencies and reduces costs by eliminating a duplicative billing step.

The Iowa Communications Network (ICN) currently invoices customers for the services it provides to them. Some customer agencies require connections to locations where agencies provide services associated with their agency mission. The ICN has had discussions with stakeholders regarding the possibility of providing billing services on behalf of customer agencies, to eliminate the need for the ICN customer to issue a separate bill to their endpoint customer.

The services for which this billing process would occur are not ICN services, but services provided by the ICN’s customer agency and delivered across the ICN’s network. Specific requirements clarify that the billing service is not a means to provide or sell ICN services to entities that are not authorized to receive ICN services directly.
[4/7: 44-0 (Excused: Brown, Carlin, Dawson, Hogg, Nunn, Schultz)]

HF 838 – IID Omnibus 

HF 838is based on recommendations by the Iowa Insurance Division (IID). The bill:

• Imposes a monetary penalty on and provides for license suspension or revocation of a person who violates any order of the Insurance Commissioner, rather than limiting the penalty and suspension or revocation to those violating cease and desist orders.
• Allows the Insurance Commissioner to deposit revenue from penalties collected due to insurers’ failure to file a timely own risk and solvency assessment summary report into the Department of Commerce Revolving Fund and into the Insurance Division Regulatory Fund. Currently, these penalties are transferred to the General Fund.
• Clarifies that the licenses for advisory organizations are for three years and sets the fee at $100.
• Adds a new late fee of $5 (not to exceed $500) for each day after April 15 that a pre-need seller or pre-need sales agent fails to file their annual report, and establishes a late fee of $5 for each day after April 30 that a perpetual care cemetery fails to file its annual pre-need sales report.
• Eliminates the $500,000 cap for funds that may be retained in IID’s Regulatory Fund. 
• Eliminates the $50,000 cap for funds that may be retained in IID’s Enforcement Fund. 
• Increases the examination fee that is deposited into the Enforcement Fund from $5 to $10.
• Lowers the application fee for a motor vehicle service contract form and renewal application from $50 to $35.

The bill gives the Commissioner broad authority to develop a “state innovation waiver” under the Affordable Care Act that would be submitted to the federal government, and to implement changes approved by the federal government through emergency rule-making. The Legislative Council will establish a 15-member study committee to identify and analyze health insurance mandates, and submit its finding and recommendations to the Legislature by December 31. Note: SF 346 was referred to Senate Ways and Means, and the House companion was referred to House Appropriations.
[5/19: 35-11 (No: Bolkcom, Boulton, Celsi, Dotzler, Giddens, Hogg, Jochum, Petersen, Quirmbach, J. Smith, Trone Garriott; Excused: Johnson, Nunn, Sinclair, Williams)]

HF 839 – Financial exploitation of older adults

HF 839, an Iowa Insurance Division (IID) recommendation, addresses the financial exploitation of adults 65 or older, and dependent adults 18 or older who are unable to protect their own interests, or unable to perform or obtain services necessary to meet essential needs. It is based on model law from the North American Securities Administrators Association. The new Code sections deal with confidentiality of records, government and third-party disclosures and immunity, and training requirements brokers-dealers and investment advisers must provide to their employees on identifying and reporting financial exploitation. The IID must submit an annual report to the Governor and the Legislature that includes the number of notifications related to the potential financial exploitation, the amount of time IID employees spent investigating the notifications, and the number of founded cases of financial exploitation. Supporters include the Older Iowans Legislature, Principal Financial, Area Agencies on Aging, Hope Haven, Mosaic, Iowa Attorney General, Iowa CareGivers, Iowa Health Care Association, Iowa State Bar Association, and Wells Fargo.

The Administration and Regulation Appropriation bill includes funding for one FTE (complaint analyst level) to investigate complaints.
[4/21: 46-0 (Excused: Mathis, Nunn, Schultz, Whiting)]

HF 848 – Broadband service areas

HF 848 makes changes to Iowa’s broadband grant program administered by the Office of Chief Information Officer (OCIO). The bill sets up a framework for awarding grants but does not allocate funds. The goal is to expand broadband across the state, improve speeds and encourage rapid deployment by providers. The emphasis is on connecting Iowans who do not have a communications service provider that offers broadband internet access in their communities.

Highlights of the bill include:

• Expanding the use of money in the Empower Rural Iowa Broadband Grant Fund to include the Fiberoptic Network Conduit Installation Program. This program to install fiberoptic network conduit where it doesn’t exist. The bill ups the amount that may be used to administer and operate the Grant Program and the Fiberoptic Network Conduit Installation Program from 1% to 2.5% of money in the Fund at the start of the Fiscal Year.
• Eliminating certain public review provisions relating to the application process for grants.
• Requiring OCIO to devote one FTE position to evaluate applications for grants, and offer technical assistance to providers applying for federal and other public or private funds.
• Modifying the definition of “targeted service area” (TSA) with a three-tiered system: Tier 1-Maximum download speed of less than 25 megabits per second and a maximum upload speed of less than three megabits per second; Tier 2-Minimum download speed of greater than or equal to 25 megabits per second but less than 50 megabits per second; and Tier 3-Minimum download speed of greater than or equal to 50 megabits per second but less than 80 megabits per second. 
• Redefining “underserved area” to mean any portion of a TSA in which no communications service provider facilitates broadband service meeting the Tier 1 download and upload speeds. 
• Requiring that service providers awarded grants provide a minimum download speed of 100 megabits per second and a minimum upload speed of 100 megabits per second in targeted service areas, with exceptions in Tier 1 (areas where projects must be capable of 100/20 to receive a 50% match).
• OCIO is not required to make renewed determinations of whether a communications service provider facilitates broadband service at or above the Tier 1, Tier 2 or Tier 3 download and upload speeds more than once a year, as determined by broadband availability maps.
• OCIO will award grants not to exceed 50% of the total project cost to those that facilitate broadband service providing minimum download speeds of 100 megabits per second and minimum upload speeds of 20 megabits per second in a targeted service area in which no communications service provider offers or facilitates broadband service that provides download and upload speeds less than or equal to the Tier 1 speeds. At least 20% of the total grants must be awarded to projects in targeted service areas where no communications service provider offers speeds less than or equal to the Tier 1 speeds. Grant amounts are 75% of total costs for projects in a TSA where no provider offers or facilitates broadband service with download and upload speeds less than or equal to Tier 1; 50% for projects in a TSA where no provider offers or facilitates broadband service that provides download and upload speeds less than or equal to Tier 2; 35% for projects in a TSA where no provider offers or facilitates broadband service that provides download and upload speeds less than or equal to Tier 3.
• Setting criteria for the OCIO to consider when reviewing an application for a grant. OCIO must give the greatest weight to factors (1), (2), (3) and (6): 

(1) The relative need for broadband infrastructure in the area and the existing broadband service speeds, including whether the project serves a rural area.
(2) The applicant’s total proposed budget for the project, including (a) amount or percentage of local or federal matching funds and any funding obligations shared between public and private entities, and (b) percentage of funding provided directly from the applicant, including whether the applicant requested an amount less than the maximum the office could award and if so, the percentage of the project cost that the applicant is requesting.
(3) The relative download and upload speeds of proposed projects for all applicants.
(4) The specific product attributes resulting from the proposed project, including technologies that provide higher qualities of service, such as service levels, latency and other service attributes as determined by the office.
(5) The percentage of the homes, farms, schools and businesses in the targeted service area that will be provided access to broadband service.
(6) The proportion of proposed projects that will result in the installation of infrastructure in a TSA within which the only broadband service available provides the Tier 1 download and upload speeds.
(7) Other factors the office deems relevant.

• Eliminating the prohibition on awarding grants from the Empower Rural Iowa Broadband Grant Fund on or after July 1, 2025.
• Money in the Fund that has been awarded but not paid to a provider remains available to OCIO to administer the award.
• Requiring the OCIO to adopt rules relating to the Broadband Grant Program process, management and measurements.
• Authorizing the OCIO to adopt emergency rules.
• Requiring the OCIO to adopt rules establishing procedures to allow applicants an opportunity to challenge awards granted by OCIO.
• Effective upon enactment.
  [4/6: 47-0 (Excused: Hogg, Nunn, Schultz)]

HF 889 – Vaccine ‘passport’ ban

HF 889 is a leadership bill that: 

• Prohibits the state or any political subdivision from including on an identification card any information regarding whether the cardholder has received a COVID-19 vaccination. 
• Prohibits a business or governmental entity from requiring a customer, patron, client, patient or other person invited onto the premises to furnish proof of having received a COVID-19 vaccination, a.k.a. “vaccine passport.” 
• Allows a business or governmental entity to implement a COVID-19 screening protocol that does not require proof of a COVID-19 vaccination.
• Prohibits state grants or contracts from being awarded to or renewed with any business or governmental entity that requires proof of COVID-19 vaccination.

“Business” includes retailers required to obtain a sales tax permit, non-profit and not-for-profit organizations, and any establishment open to the public or where entrance is limited by a cover or membership charge. “Business” does not include a health care facility as defined in Ch. 686D.2, including hospitals (135B), a residential care or nursing facilities (135C), surgical or treatment centers (514J.102), residential treatment centers (514J.102), intermediate care facilities for persons with mental illness or intellectual disabilities, hospice programs, elder group homes and assisted living programs.

A “governmental entity” includes the state or any political subdivision that owns, leases or operates buildings under the control of the state or a political subdivision of the state. “Governmental entity” does not include health care facilities (686D.2).

HF 889 passed the House 58-35 on April 28. The bill takes effect upon enactment.
[5/5: 32-16 (Yes: Republicans, Giddens, J. Smith; No: Democrats, Carlin; Excused: Hogg, Nunn)]

SF 583 – Electric utility rates for private (solar) generation  

SF 583, which passed the Senate last year, allowed investor-owned utilities to set minimum infrastructure charges for private net-metered customer generation. It exempted certain large renewable energy producers from the requirements for utility infrastructure charges: (1) a cogeneration facility, including, without limitation, combined heat and power facilities; (2) a facility that manufactures renewable fuel registered with the U.S. Environmental Protection Agency; (3) a facility that uses a de minimus amount of biomass in its operations (less than 10% of all fuel used in the generation processes); and (4) a private generation facility with a nameplate generating capacity greater than one megawatt. Opponents maintained that the proposal protected the largest renewable energy producers, and would in essence eliminate solar energy companies that work with consumers and small businesses.

This controversial bill passed the Senate March 18, 2019, on a bipartisan vote of 28-19. It was placed on the House Unfinished Business Calendar and was re-referred to the House Commerce Committee.

During the interim, stakeholders, including MidAmerican Energy, Iowa’s solar industry, agricultural interests and environmentalists, worked to craft a compromise. The result was a re-working of the entire proposal. This version passed the House unanimously on March 3, 2020. Lobbyists in support include the Iowa Environmental Council, Iowa Pork Producers, MidAmerican Energy, Iowa Solar Energy Trade Association, Center for Rural Affairs, Environmental Law and Policy Center, The Nature Conservancy, North Central States Regional Council of Carpenters, Iowa Association of Business and Industry, Greater Des Moines Partnership, Citizens for a Healthy Iowa and the Iowa Conference of United Methodist Church.

The amended bill codifies net metering, grandfathers in the current plans of existing solar customers, and provides a transition to a “Value of Solar” utility rate in the future.

The House “strike after” amendment:

• Creates new billing methods for distributed generation (solar) customers, including net metering billing or inflow-outflow billing. Solar customers would pay the retail rate for any kilowatt-hour (kWh) they import (inflow) while any kWh exported to the grid (outflow) is credited to the customer at an outflow rate.
• Codifies net metering as a single meter monitoring only the net amount of electricity delivered and exported to solar customers.
• Allows outflow credits to be credited monthly as dollar amounts to offset the customers’ monthly bill, which can be carried forward up to 12 months.
• Permits utilities to recover credited outflow amounts through an Energy Adjustment Clause or other rider mechanism.
• Initially sets the outflow rate at an applicable retail rate for each rate class.
• Creates a Value of Solar (VOS) study when distributed solar penetration reaches 5% of total peak demand, or by July 1, 2027, if the utilities petition the Iowa Utilities Board (IUB) to begin VOS process, whichever is sooner.
• Customers would receive a locked-in outflow rate for 20 years that is set: (1) equal to the retail rate prior to the VOS implementation; and (2) at the current VOS rate after VOS rate is determined.
• Allows any excess credits to revert to investor-owned utilities after 12 months to offset the rider mechanisms’ collections.

The Value of Solar (VOS) is created through a stakeholder process, overseen by the IUB, using an independent third-party consultant. The VOS rate must be unique to each utility based on the utility’s specific inputs. The tariff must be updated annually and the methodology must be updated every three years. The rate cannot fluctuate more than 5% annually.

Both net metering credit and outflow rate must cover all volumetric charges, including rider charges on a kWh basis. Existing net metering customers may retain their current net metering rate for the duration of their current contract.

Investor-owned utilities are prohibited from: (1) using customer’s demand instead of energy use to limit system size; (2) charging solar customers additional fees; and (3) placing solar customers in a separate class until VOS or 2027.
[3/4: CONCUR 48-0 (Absent: Rozenboom, Wahls)]

SF 2131 – Reinsurance collateral requirements 

SF 2131 is a recommendation from the Iowa Insurance Division (IID). It puts Iowa among the first states to adopt necessary federal provisions. All states have five years to act to reduce reinsurance collateral requirements for certified non-U.S. licensed reinsurers that are licensed and domiciled in qualified jurisdictions or face potential federal preemption by the Federal Insurance Office under the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. In exchange, the European Union and the United Kingdom will not impose local presence requirements on U.S. firms operating in the EU and the UK, and effectively must defer to U.S. group capital regulation for U.S. entities of EU-based and UK-based firms. The bill puts Iowa ahead in the insurance market, and alleviates concerns of insurance companies in the state, as well as for carriers looking to domicile in Iowa.
[2/25: 50-0]

SF 2132 – Life insurance companies legal reserve requirements

SF 2132 modifies the Iowa Code definition of highly effective hedging transactions to match the National Association of Insurance Commissioners accounting guidance.
[2/24: 48-0 (Absent: Feenstra, Shipley)] 

SF 2137 – Mortgage extension filing requirements 

SF 2137 modifies a requirement that a mortgage extension agreement be filed in the same way as the original instrument (a.k.a. “ancient mortgages”). Currently, a mortgage (which is the underlying collateral for a debt instrument or promissory note) is enforceable for either 20 years or 10 years beyond any stated maturity in the debt instrument, as long as the extension is filed of record. The bill does not change any timeframes, but allows that the signing of the original mortgage authorizes the lender to file the extension on behalf of the borrower. This is compatible with real estate law by establishing the same procedure for extending financing statements under the Iowa Uniform Commercial Code. It will make loan administration for mortgages much easier for both financial institutions and borrowers.
[2/25: 50-0]

SF 2196 – Extension of Iowa Cell Siting Act

SF 2196 extends the future repeal date of the Iowa Cell Siting Act from July 1, 2022, to July 1, 2025. The extension is effective upon enactment.
[2/24: 50-0]

SF 2198 – Notification requirements for open-end credit accounts

SF 2198 modifies notification requirements for an open-end credit account to mirror federal regulations. A creditor may make a change in the terms of an open-end credit account applying to any balance incurred after the effective date of the change, only if the creditor delivers or mails to the consumer a written disclosure of the change at least 60 days before the effective date of the change.
[2/25: 50-0]

HF 426 – IID background checks, fraud investigators

HF 426 is based on a non-controversial proposal recommended by the Iowa Insurance Division (IID) that clarifies the IID’s authority to review possible fraud cases in all areas regulated by the Insurance Commissioner. It also adds authorization of criminal history background checks for insurance producers and updates licensing requirements to meet the new standards. Almost all states require a criminal history background check (which includes fingerprints) for insurance producers. The IID worked with the Department of Public Safety’s Division of Criminal Investigation to ensure that the language would be acceptable to the FBI, which conducts the federal background checks. This will be applicable to new and out-of-state insurance producers, public adjusters and viatical settlement providers.

The House passed HF 426 last year on a vote of 94-0. The Senate amended the bill to include the additional language limiting two of the three investigators to reviewing only workers compensation issues. The Division was concerned that this stipulation is detrimental to its current fraud bureau staff, which consists of a director, three investigators and a criminal intelligence analyst. In 2018, 83 of the 1,046 investigation referrals were related to workers compensation issues (about 9%), consistent with the past three years of data. The bill, as amended, passed the Senate March 13, 2019, on a 32-17 party-line vote, Democrats voting no. The House took no further action. This year, the House refused to concur and the Senate receded.
[3/4: RECEDE 48-0 (Absent: Rozenboom, Wahls)]

HF 2452 – Acquisition of small water utilities

HF 2452 modifies legislation passed in 2018 that established a process for communities that may want to sell their water systems. Currently, the cities of Blue Grass and Dixon are using this process to sell their wastewater systems, but challenges for smaller systems, often the most in need of help, have been identified.

This bill creates a category of communities referred to as “at-risk” communities, defined as a community that meets the Department of Natural Resources’ (DNR) definition of “disadvantaged community,” which is based on the finances of the community; a system that has violations of federal or state regulations that impact the safety, adequacy or efficiency of the operations; or a system that has failed to have a certified operator for more than a 12-month period.

The bill allows the DNR to provide an alternate enforcement timeframe in the event of a sale, to give the new organization time for compliance without threat of penalties. It also gives the Iowa Utilities Board 180 days to review, approve or disapprove an acquisition. The bill passed the House 98-0.
[6/12: 49-0 (Absent: Hogg)]

SF 228 – Bioscience Development Corporation

SF 230 – Manufacturers of native distilled spirits, beer, wine

SF 337 – Child labor exceptions for volunteers

SF 402 – Credit Union Division “good faith” requirement

SF 403 – Credit Union Superintendent subpoena power

SF 412 – Insurance assignment of rights to contractors

SF 505 – Professional landscape architects licensure

SF 506 – Notification requirements for credit union mergers

SF 507 – Workers’ compensation for idiopathic falls

SF 528 – Self-service storage facilities

SF 534 – Gasification, pyrolysis facilities

SF 556 – Life and Health Insurance Guaranty Association membership

SF 558 – Domestic surplus lines insurance

SF 559 – Portable electronic insurance notifications

SF 619 – Regulation of service contract providers

HF 260 – Permissible interest rates

HF 263 – Consumer loan exemption from fee if applicant denied

HF 264 – Domestic stock insurers

HF 305 – Enhance Iowa Board

HF 327 – Franchisor-franchisee relationships

HF 487– Installation of wireless communications infrastructure

HF 537– Public utility right-of-way fee

HF 668 – Business interests of alcoholic beverages entities

 

SF 228 – Bioscience Development Corporation

SF 228 is a recommendation by the Iowa Economic Development Authority. It cleans up Code language relating to definitions in the Targeted Small Business Program. It also replaces the Iowa Innovation Corporation, which was created in 2011, with the Iowa Bioscience Development Corporation (IBDC). This new corporation’s structure as a non-profit and purpose are similar to the current Iowa Innovation Corporation. The Bioscience Development Corporation will be tasked with enhancing bioscience-based economic development. The corporation will focus on vaccines and immunotherapeutics; bio-based chemicals; precision and digital agriculture; and medical devices and medical diagnostics.

The proposal changes the number of members and type of members on the Innovation Council (which is different than Innovation Corporation): representatives from targeted industry businesses increase by seven; those who serve on the Technology Commercialization Committee and then serve on the Iowa Innovation Corporation is reduced by seven members. It does NOT change programs and funds, such as the Innovation and Commercialization Development Fund or the Strategic Infrastructure Fund. The Governor recommends a new general fund appropriation of $2 million for a joint effort by Iowa State University and the University of Iowa for a Biosciences Innovation Ecosystem, but no appropriation is in this policy bill.
[4/25: 49-0 (Absent: Chapman)]

 

SF 230 – Manufacturers of native distilled spirits, beer, wine

SF 230 relates to the authority of manufacturers of beer and native distilled spirits (Iowa Code Chapter 123). It amends the section concerning native distilleries by allowing a manufacturer of native distilled spirits to be issued a class “C” native distilled spirits liquor-control license, regardless of whether the manufacturer is also a manufacturer of beer; amends the section concerning limitations on business interests to provide that a manufacturer of beer may be granted one class “B” beer permit to sell beer at retail for consumption on or off the premises of the manufacturing facility regardless of whether the manufacturer also makes native distilled spirits; and amends the section concerning keeping liquor where beer is sold to allow liquor for beverage purposes to be used or kept at a premises for which both a class “B” beer permit and class “A” native distilled spirits license have been issued. The proposal was initiated by Toppling Goliath Brewing Company in Decorah. The Iowa Alcoholic Beverage Division has no objections to the legislation, noting that it offers parity for breweries and does not change the state’s three-tier system. Native wine manufacturers may hold similar multiple licenses/permits. Native wineries could sell beer for on-premises consumption or for carry-out sales, and wine and beer could be stored on premises where a native winery has a permit to sell beer.
[4/15: Concur, 49-1 (No: Costello)]

 

SF 337 – Child labor exceptions for volunteers

SF 337 is an Iowa Economic Development proposal supported by the Iowa Commission on Volunteers Service, United Ways of Iowa and the YMCA State Alliance. It modifies current provisions of Code Chapter 92, which are Iowa child labor regulations regarding hours, permits, prohibited occupations and permitted occupations for those under 18. The proposal establishes three new exceptions to the law: a child who willfully volunteers, as defined by federal regulation, for a charitable or public purpose; a child 12 or older who is employed by a charitable organization or unit of state or local government as a referee for a sports program sponsored by that charitable organization or unit of government; a child under 16 who serves in the Iowa Summer Youth Corps Program in Section 15H.5 or a child over 14 who serves in any other recognized program of Iowa National Service Corps Program, in accordance with Section 15H.9. These three new subsections must comply with prohibited hazardous occupations listed in Code section 92.8.
[3/26: 49-0 (Absent: Breitbach)]

 

SF 402 – Credit Union Division “good faith” requirement

SF 402 is a proposal by the Credit Union Division to add a new section to Code Ch. 533 – Credit Unions. It stipulates that any information, record, application or document provided to the division must be provided in good faith. A director, officer, agent or employee of a state credit union, a credit union service organization, or any other person must not intentionally publish, report, submit or file any information, record, application or document that is false or misleading by statement or omission. Any such information provided in the absence of good faith or in violation of the bill may be subject to revocation of prior approval or denial.
[4/8: 50-0]

 

SF 403 – Credit Union Superintendent subpoena power

SF 403 is a recommendation by the Credit Union Division of the Department of Commerce. Currently, the superintendent of credit unions can subpoena witnesses and compel the production of any relevant record only during the period of an examination of a state credit union. This bill expands the timeframe to include the examination period and time related to any report or filing made by or provided to the division. If a person subpoenaed by the superintendent fails to produce a record as required by the terms of the subpoena, the superintendent may apply to Polk County district court to issue an order compelling compliance. The refusal of any person to obey such an order without reasonable cause constitutes contempt of court.
[4/8: 50-0]

 

SF 412 – Insurance assignment of rights to contractors

SF 412 relates to post-loss assignment of rights to residential contractors for repair or services performed on residential real estate covered by property and casualty insurance. The Attorney General strongly opposed the original proposals but worked with legislators and stakeholders to craft legislation that included the recommended consumer protections.

The legislation allows the insured to cancel the contract at the later date of either the execution date or the date on which the insured receives the assignment; adds one additional notice provision that must be included in the contract/assignment (notice of the right to cancel and the process to do so); and makes a violation an unlawful practice under 714.16 – Consumer Frauds. The contract between the insured and the contractors is void if a contractor violates any requirement related to the post-loss assignment of rights or benefits by the insured to the contractor.

The post-loss assignment must include an itemized description of, and the materials, labor and fees for, the work to be performed, including a total itemized amount. It also requires that the post-loss assignment include a statement and a notice, in 14-point type, that the contractor has not represented that the claimed loss will be fully covered by insurance. After the post-loss assignment is executed, a copy must be provided to the insurer of the real estate within five business days. The insured has the right to cancel the assignment for any reason within those five business days. If the insured cancels, the contractor must return any payments made by the insured, the landowner or the possessor of the real estate.

Any written contract, estimate or work order prepared by the contractor must include a notice advising the insured that the insured is responsible for payment to the contractor for any goods or services provided by the contractor, even if the insured does not receive payment from the insurance policy. The notice also advises the insured that if the contractor advertises or promises to rebate the insured’s deductible, or represents or negotiates, or offers to represent or negotiate with the insured’s property and casualty insurer on behalf of the insured, the insured is not responsible for payment to the contractor under the contract, estimate or work order. A copy of the document, signed by the insured, must be sent to the insured’s insurance company prior to the contractor being paid from the proceeds of the insurance.
[3/18: 48-0: (Absent: Dawson; Vacant: Danielson)]

 

SF 505 – Professional landscape architects licensure

SF 505 is a recommendation by the Banking Division’s Professional Licensure Bureau that updates provisions relating to the licensure of professional landscape architects by the Landscape Architectural Examining Board. It includes a change to the board membership requirements. The seven-member board includes two public members and five professional members who must be actively engaged in the practice or teaching of landscape architecture for at least five years preceding appointment. The bill allows one of those five members to be actively engaged in the practice or teaching of landscape architecture for at least one year preceding appointment. It also allows the board to adopt a national standardized test, and give reciprocity to individuals who have passed the same standardized test in other states.
[3/21: 46-0 (Absent: Bisignano, Celsi, R. Taylor; Vacant: Danielson)] 

 

SF 506 – Notification requirements for credit union mergers

SF 506 is a recommendation by the Credit Union Division. Currently, a merging credit union must provide notice of balloting for voting members at least 20 days prior to the scheduled vote. It requires that at least 15 days before that notice is sent to members, a merging credit union must submit to the Superintendent of Credit Unions all materials that will be included in the notice. The Superintendent must review and approve those materials at least 10 days before the notice is sent to the members, and may direct other materials to be included in the notice.
[3/19: 49-0 (Vacant: Danielson)]

 

SF 507 – Workers’ compensation for idiopathic falls

SF 507 changes the definition of personal injuries arising out of and in the course of employment for purposes of workers’ compensation. It creates a blanket rule that personal injuries due to idiopathic or unexplained falls from a level surface onto the same level surface would not be compensable under workers’ compensation, rather than looking at such falls on a case-by-case basis and requiring the claimant to show proof that the condition of a floor, just like any other workplace condition, poses an increased risk of injury and should be compensated.
[3/19: 32-17, party line (Vacant: Danielson)]

 

SF 528 – Self-service storage facilities

SF 528 creates a new Code chapter on self-service storage facility liens and repeals the current chapter (578A). It includes updated definitions (e.g., “leased space” is individual storage space at a self-service storage facility rented to an occupant by a rental agreement; “occupant” is a person entitled to use that space under a rental agreement, or the person’s successors or assignees; “operator” means the owner, operator, lessor or sub-lessor of a self-service storage facility or an agent or other person authorized to manage the facility.)

It allows the operator and occupant to agree to use email to satisfy all notice requirements. If they do so, the rental agreement must contain a section outlining the rights and duties of both parties regarding use of email for all notices. There must be a brief, general description of the personal property subject to the lien. The description must be reasonably adequate to permit the occupant to identify the property. If any container includes a trunk, valise or box that is locked, fastened, sealed or tied in a manner that deters immediate access to its contents, it must be described as such, with no description of the contents. The operator must notify all they know of who claim a security interest in the personal property.

At least seven days before the sale, the operator must also advertise the time, place and terms of the sale in a commercially reasonable manner (i.e., likely to attract at least three independent bidders to attend or view the sale in person or online at the time and place advertised). The operator may buy the occupant’s personal property at this public sale.

The rental agreement must disclose if the facility is located in a flood zone (FEMA-defined “special flood hazard area”), and provisions the operator will follow if such a catastrophic event makes the storage space unusable for the occupant.
[3/28: 35-12 (No: Bolkcom, Boulton, Celsi, Dotzler, Giddens, Hogg, Jochum, Mathis, Petersen, J. Smith, T. Taylor, Wahls; Absent: Breitbach, Nunn, Sweeney)]

 

SF 534 – Gasification, pyrolysis facilities

SF 534 relates to the use of gasification and pyrolysis facilities for the conversion of certain recoverable waste materials. It excludes the facilities from the definition of “sanitary disposal project,” excludes certain post-use polymers and recoverable feedstocks from the definition of “solid waste,” and excludes certain gasification and pyrolysis facilities from the definition of “waste conversion technologies.” The proposal incorporates recommendations by the Iowa Department of Natural Resource’s Waste Management Bureau to include financial assurance provisions for proper disposal of any materials that remain at a facility due to the owner’s or operator’s failure to properly close the site within 60 days of termination of operations.
[3/13: 45-3 (No: Celsi, Hogg, R. Taylor; Absent: T. Taylor; Vacant: Danielson)]

 

SF 556 – Life and Health Insurance Guaranty Association membership

SF 556 updates Iowa Code relating to the membership of the Life and Health Insurance Guaranty Association (LHIGA) and assessments to member insurers for insurance written by impaired or insolvent member insurers. It more closely conforms Chapter 508C to the National Association of Insurance Commissioners’ (NAIC) model act, including provisions recently adopted by NAIC. Regardless of the state in which an insurance company is located, there are policyholders across the country. The bill provides that assessments to member insurers of the LHIGA for long-term care insurance written by an impaired or insolvent insurer must be allocated by the methodology included in the association’s plan of operation and must provide for 50 percent of the assessment to  accident and health member insurers and 50 percent to life and annuity member insurers. Current law does not provide for life and annuity members to be included in the assessment for long-term care insurance. The 50/50 split offers parity in those long-term care policies that may be categorized as a type of “life insurance” and/or “health insurance.” The bill takes effect upon enactment.
[3/20: 49-0 (Vacant: Danielson)]

 

SF 558 – Domestic surplus lines insurance

SF 558 allows insurers of surplus lines to be based in Iowa. It establishes requirements and defines “domestic surplus lines insurer” as an insurer that is domiciled in this state and authorized by the Insurance Commissioner to do business as such. Currently, a company with its main office in Iowa can write surplus lines insurance in every state except Iowa. The bill also specifies requirements that a non-admitted insurer domiciled in Iowa must meet to be considered a domestic surplus lines insurer. Surplus lines insurance (a.k.a. excess lines insurance) helps provide coverage of an unconventional nature (e.g., Ninja Gyms, underground storage tanks, long-haul trucking of high-value, hazardous or perishable cargo) when what needs to be insured makes it difficult to get insurance through regular lines because the insurance companies are unable or unwilling to accept the risk. The proposal, based on recommendations by the Iowa Insurance Institute working with the Iowa Insurance Division and other stakeholders, should enhance Iowa’s reputation as an insurance industry leader and could bring more jobs to the state. Similar legislation has been enacted in 18 other states.
[3/19: 49-0 (Vacant: Danielson)]

 

SF 559 – Portable electronic insurance notifications

SF 559 allows insurance carriers to electronically send notifications and documents to customers who purchased portable electronics insurance policies in a retail transaction. Prior to or at the point of sale, the consumer must provide an e-mail address and must be advised in a conspicuous disclosure that by providing the e-mail address, the consumer is giving affirmative consent for insurance notices and correspondence to be delivered by electronic means. The consumer must also be provided a conspicuous disclosure advising them of their right to have the notice or document in paper form, and of the right to cancel consent.
[3/20: 49-0 (Vacant: Danielson)]

 

SF 619 – Regulation of service contract providers

SF 619 combines two Code Chapters (516E Motor Vehicle Service Contracts and 523C Residential Service Contracts). The proposal is based on recommendations by the Service Contract Industry Council (SCIC), a national trade association that works with lawmakers across the country to develop fair and uniform regulation. SCIC member companies collectively offer approximately 80% of all appliance, consumer electronics, home and vehicle service contracts in the U.S.

The Iowa Insurance Division has worked on the proposal to incorporate recommendations based on the Model Act by the National Association of Insurance Commissioners. The Attorney General’s Consumer Protection Division has offered additional recommendations, such as cancellation notice provisions and a stipulation that if unlicensed service companies sell in Iowa, it is a violation of the Iowa Consumer Fraud Act and the customer’s contract is void.

With advice from the service contract providers, the Insurance Division and the Consumer Protection Division, the bill ensures that existing consumer protections in the two chapters are contained in the new merged chapter.
[4/22: 49-0 (Absent: Segebart)]

 

HF 260 – Permissible interest rates

HF 260 allows the Iowa Superintendent of Banking to set interest rates on a tiered basis and finance charges for certain loans of $30,000 or less. It applies to non-depository lenders who acquire financing on the open market (banks and credit unions are depository lenders). These lenders offer installment loans to consumers, typically small loans for appliances or vehicles. Customers may prefer this local financing option to apply for a loan rather than another financial institution, delayed deposit companies (payday loans), or out-of-state online lenders that charge higher rates and fees. Currently, the Superintendent can establish the maximum rate of interest or charges for regulated loans (Code Ch. 536, Regulated Loans) with unpaid principal balances of $10,000 or less. This increases that amount to $30,000. The maximum interest rate is capped at 36 percent. For loans with unpaid principal balances in excess of $30,000, the maximum interest rate or charges remains the greater of the rate permitted in Code Ch. 535 or the rate authorized for supervised financial organizations in Code Ch. 537. The bill authorizes a creditor to contract for and receive, for an interest-bearing consumer credit transaction, a service charge (a.k.a. loan origination fee) in an amount not to exceed 10 percent of the amount financed or $30, whichever is less. If the creditor has received such a service charge, the creditor cannot collect or retain a minimum charge upon prepayment as authorized under Code section 537.2510; rebate upon prepayment does not apply to service charges collected pursuant to the bill.

Stakeholders worked with the Banking Division and Attorney General’s office to proper ensure regulation and consumer protection. The companies will continue to be regulated and licensed by the Superintendent of Banking and be under the jurisdiction of the Attorney General via the Uniform Consumer Credit Code.
[4/8: 40-10 (No: Bolkcom, Celsi, Dotzler, Giddens, Hogg, Jochum, Lykam, J. Smith, T. Taylor, Wahls)]

 

HF 263 – Consumer loan exemption from fee if applicant denied

HF 263 is designed to clarifying the Iowa Consumer Credit Code. Code section 537.2501 lists permissible fees that banks and credit unions may charge on consumer loans, and those fees are excluded from the finance charge, which is capped at 21 percent. Current law allows a financial institution to charge an application fee on loans for less than $3,000 with terms less than a year. The fee is limited to 10 percent of the amount loaned or $30, whichever is less.

A southeast Iowa credit union is starting a “payday loan alternative” program for these small-dollar loans and does not want to charge the application fee if applicants are denied. The legislation gives financial institutions flexibility to waive the fee if clearly stated in the application, and the waiver is applied to all who are denied a loan. The Attorney General’s office has provided guidance to clarify that credit unions and banks can charge this fee only to those approved for the loan and still have it excluded from the finance charge.
[4/24: 50-0]

 

HF 264 – Domestic stock insurers

HF 264 allows Iowa domestic stock companies to divide into two or more insurers, and provides a process for regulatory approval for such actions. The insurer must file its plan with the Iowa Insurance Division and meet various requirements. The Division will determine whether to approve the plan. The proposal is modeled after Connecticut law and does not apply to mutual insurance companies.
[3/25: 50-0] 

 

HF 305 – Enhance Iowa Board

HF 305 is an Iowa Economic Development Authority (IEDA) proposal. It increases the term of voting members on the Enhance Iowa Board from two years to three years; and provides a transition from the current two-year, staggered terms to three-year, staggered terms. The bill directs the Board, rather than the IEDA, to adopt rules to administer the programs established in Code Chapter 15F. It also eliminates the requirement that the Board, at the beginning of each fiscal year, allocate $100,000 from the Community Attraction and Tourism fund to market projects receiving money from the fund.
[4/24: 50-0]

 

HF 327 – Franchisor-franchisee relationships

HF 327 specifies that a franchisor is not defined as an “employer” for certain purposes. It exempts franchisors from liabilities under Iowa Code chapters applicable to workers’ compensation, wages, unemployment compensation and civil rights.

• Workers’ Compensation: A franchisor is not an employer for workers’ compensation purposes unless there is a written agreement or the workers’ compensation commissioner finds the franchisor exerts control over the franchisee that is not customary for the purpose of protecting the franchisor’s trademarks and brand.
• Wage Payment: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the commissioner finds the franchisor exerts control over the franchisee that is not customary.
• Minimum Wage: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the labor commissioner finds the franchisor exerts control over the franchisee that is not customary.
• Unemployment Compensation: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the department finds the franchisor exerts control over the franchisee that is not customary.
• Civil Rights Commission: A franchisor is not an employer for the purposes of wages unless there is a written agreement or the commission finds the franchisor exerts control over the franchisee that is not customary.
  [3/25: 32-18, party line]

 

HF 487– Installation of wireless communications infrastructure

HF 487, the Iowa Cell Siting Act, provides uniform rules and limitations and requires authorities to approve an application for a tower in compliance with the Nationwide Public Safety Broadband Network in counties with populations of less than 15,000 people. An authority or governing body authorized to make decisions relative to a cell siting cannot reject an application for the installation of a tower or transmission equipment in the unincorporated area of a county with a population of less than 15,000 (except on property zoned as single-family residential or property of historic significance). It requires written confirmation from the Statewide Interoperable Communications System Board that the tower or equipment will be installed and used as part of the state plan approved under the federal law for the deployment of the public safety broadband and radio access networks. The State of Iowa opted in to “FirstNet,” and it is in the first year of a five-year build-out that will cover 99.5 percent of the Iowa population, including 99.2 percent of our rural areas. FirstNet’s public safety mission is to build and deploy a high-speed nationwide wireless broadband network dedicated to first responders to help them better communicate and collaborate across local, state, tribal and national jurisdictions. The bill, which is designed to address a controversial plan to construct a cell phone tower in Allamakee County, takes effect upon enactment and sunsets in two years.
[3/14: 38-10 (No: Bisignano, Bolkcom, Celsi, Dotzler, Hogg, Jochum, Quirmbach, J. Smith, R. Taylor, Wahls; Absent: Miller-Meeks; Vacant: Danielson)]

 

HF 537– Public utility right-of-way fee

HF 537 relates to certain fees imposed on public utilities for the use of public rights-of-way [Ch. 480A]. Currently, local governments may impose fees on public utilities for operating facilities in public rights-of-way. A local government may only impose a fee for management costs that are caused by the utility’s activity in the right-of-way, and cannot require in-kind services in lieu of a fee. The bill modifies the definition of “management costs” and requires that such costs be direct and fully documented. It specifies that a local government may only recover a permit fee for management costs attributable to the utilities requested use of an available public right-of-way, instead of management costs caused by the utility’s activity in the right-of-way. It provides that Code section 480A.3, relating to permissible fees imposed on public utilities, not prohibit voluntary agreements between a public utility and local government to share services to reduce costs and preserve public rights-of-way for future public safety purposes, and allows in-kind services in lieu of a fee for such voluntary agreements. The Legislative Services Agency (LSA) fiscal note indicated that the legislation may decrease revenue to local governments by more than $100,000, but, at the time of bill passage, LSA had not received data to identify the total fees collected under Iowa Code chapter 480A, and so could not estimate the fiscal impact at that time.
[4/23: 32-18 (Yes: Republicans, Kinney, Ragan; No: Democrats, Rozenboom, Zaun)]

 

HF 668 – Business interests of alcoholic beverages entities

HF 668 relates to limitations on business interests of certain manufacturers, wholesalers and retailers of alcoholic beverages. In 2017, the Legislature passed SF 516, which required the Iowa Alcoholic Beverages Division to extensively  review Iowa’s “tied house” laws (limitations on business interests of manufacturers, wholesalers and retailers of alcoholic beverages) to assist legislators in determining if current laws adequately meet the needs of the modern marketplace and protect public health, safety and welfare. The Alcoholic Beverage Control Study was submitted to the Legislature on July 1, 2018. The bill allows employees to engage in cross-tier employment as long as they are not in a position to influence; provides an exception to allow alcoholic beverage retail sales at the principal office of a retailer; allows beer manufacturers to sell, at wholesale, no more than 30,000 barrels of beer annually for off-premise consumption; and defines “institutional investor” to clarify that a person who has investments in businesses that manufacture, bottle, wholesale or sell alcoholic beverages at retail may maintain a diversified portfolio of investments (such as deferred compensation, stocks, retirement plans) that includes alcoholic beverages, if the majority of investments are in other businesses.

The bill makes changes related to tied house and the three-tier system:

• Allows an alcoholic beverages manufacturer or wholesaler to have an interest in an alcoholic beverages retailer, provided the retailer does not sell the manufacturer’s or wholesaler’s product.
• Creates an exception to the limitation above, allowing a person engaged in the business of manufacturing wine that is not native wine to sell that person’s wine products at their principal office by obtaining a special class “C” liquor control license and a class “B” wine permit. Another retail licensee or permittee operating at the principal office of a person engaged in the business of manufacturing wine that is not native wine would also be able to sell that person’s wine.
• Allows cross-tier ownership through investments, provided the majority of investments in a person’s portfolio are not in businesses that manufacture, bottle, wholesale or sell at retail alcoholic beverages.
• Allows for cross-tier employment, provided the employee is not an officer, owner, director, or in a position to exercise any control or influence over the types of sales or the purchasing of alcoholic beverages in either position of employment.
• Limits the ability for a native brewery to sell at wholesale no more than 30,000 barrels of beer on an annual basis to retailers authorized to sell beer in Iowa.
  [3/13: 38-11 (No: Bolkcom, Celsi, Hogg, Jochum, Kinney, Mathis, Petersen, Quirmbach, Ragan, J. Smith, R. Taylor; Vacant: Danielson)]

All bills passed by the Legislature and sent to the Governor for her signature during the 2018 session. 

SF 2169 – Alcoholic beverages licensee liability
SF 2177 – CRA security freezes
SF 2257 – Marketplace contractors
SF 2262 – Final-stage motor vehicle manufacturers
SF 2311 – Public utilities regulation
SF 2316 – Domestic stock insurers; insurance transactions VETOED
SF 2349 – MEWAs; Health benefit plans
HF 2171 – Electronic ‘stop payment’ option
HF 2175 – Mezzanine loans in life insurance legal reserve
HF 2234 – Foreclosure timeline; judgment on rent claims
HF 2236 – Insurance Division ‘service of process’ clean-up
HF 2237 – Insurance Division Code clean-up
HF 2238 – Insurers as victims of fraud
HF 2239 – Insurance Division regulated industries clean-up
HF 2286 – ‘Time of Sale’ real estate ordinances
HF 2305 – Telemedicine health insurance coverage
HF 2307 – Process for certain utility sales
HF 2382 – Engineering, Land Surveying Examination Board
HF 2446 – IUB omnibus
HF 2458 – Future Ready Iowa

 

SF 2169 limits the liability of an alcoholic beverage license or permit holder for certain alcohol-related injuries, commonly known as Dram Shop. Currently, the holder, regardless of whether the license or permit was issued by the Iowa Alcoholic Beverages Division (ABD) or by the licensing authority of any other state, is liable for all damages caused by an intoxicated person if the holder served alcohol to them when the holder knew or should have known the person was intoxicated, or who sold to and served the person to a point where the holder knew or should have known the person would become intoxicated. Under the bill, damages are available to an innocent third party, and a license or permit holder is liable only if the establishment sold and served beer, wine or intoxicating liquor directly to the intoxicated person, provided the person was visibly intoxicated at the time of sale or service.

As passed by the Legislature, the bill also:

• Adds a cap of $250,000 in a civil action for each plaintiff, unless a jury determines that there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement or death, and such limitation would deprive the plaintiff of just compensation for injuries sustained.
• Directs *ABD to conduct a study every two years on minimum coverage requirements, including a comparison of Dram Shop requirements in other states, other relevant issues, and ABD findings and recommendations. The first report to the Legislature is due January 31, 2019.

NOTE: HF 2502 – Standings, Division VIII – Dram Shop: Implements changes requested by LSA on ambiguity of the cap on non-economic damages, so as not to be perceived to be the cap on all recoverable damages. It also states that the liability insurance evaluation will be done by the Insurance Division, not by ABD.

 

SF 2177 eliminates fees to place, temporarily lift or remove a credit freeze, and creates communication methods other than certified mail that credit reporting agencies (CRAs) must accept, including first-class mail, telephone and secure electronic methods. The legislation also shortens the time from five to three days for the CRA to put the freeze in place, and requires the CRA to provide the customer with contact information for the other CRAs (e.g., Equifax, Experian and TransUnion). The Iowa Attorney General strongly supports the proposal, which is similar to legislation in many other states. Provisions to expedite and process security freeze requests must be in place by January 1, 2019. Other provisions would take effect July 1.

 

SF 2257 defines a marketplace contractor as an independent contractor who enters into a written agreement with a marketplace platform (e.g., online booking) to use its digital network to connect with those who want to hire a contractor for services, such as home repairs. The most notable is Handy Technologies, a company that offers a variety of services, including residential cleaning, handyman repair, furniture assembly, and plumbing and electrical work. It exempts real estate brokers and real estate agents, as well as delivery service providers (e.g., UPS, FedEx) who only transport sealed boxes, parcels, freight and envelopes for a fee. When providing services that require an Iowa license, the marketplace contractor must obtain the license and make it available to customers.

 

SF 2262 allows a final-stage motor vehicle manufacturer to be licensed as a motor vehicle dealer of incomplete motor vehicles only, if it manufactures multi-stage manufactured vehicles. This streamlines the sales process for dealers of special manufactured equipment, such as service trucks, cranes, concrete pumpers, garbage trucks, and other construction and municipal vehicles.

 

SF 2311 significantly deregulates gas and electric public utilities in Iowa. It removes or restricts oversight by the Iowa Utilities Board (IUB) on a wide range of issues, including energy efficiency, rate increases, coal plant emissions controls and consumer protections. It requires the IUB to review energy efficiency plan modification requests within 60 days of filing; issue orders approving or rejecting regulated emissions management projects within 90 days of filing; review any tariffs or rates imposed by rate-regulated public utilities within 30 days of filing; and specify in advance the ratemaking principles that will apply whenever a rate-regulated public utility requests advanced ratemaking for construction, investment or implementation of an emerging energy technology. It also authorizes the IUB to initiate a formal proceeding if reasonable grounds exist for investigating a public utility’s request to modify an energy efficiency plan to achieve projected annual costs below a two-percent threshold. To perform the duties associated with the legislation, including the shorter time frame for existing duties under current law, the IUB would need to hire two additional technical staff, at a cost of $228,924 annually.

The bill exempts electric cooperative corporations and electric public utilities with fewer than 10,000 customers from regulated rates. It also prohibits the IUB from requiring gas and electric public utilities to adopt energy efficiency plans that result in projected annual costs in excess of two percent of the utility’s annual rate revenue.

The energy efficiency caps will result in fewer programs offered, such as popular rebate programs to install efficient commercial lighting or replace inefficient commercial heating and cooling systems, fewer measures in programs, or fewer incentives available for measures and programs, or a combination of all of these. Caps could also result in cancellation of incentives or programs mid-year and create significant uncertainty about the availability of rebates for efficient equipment, such as a new HVAC system (residential or commercial). Making efficiency programs lower quality and less workable will mean lower participation and higher energy costs for consumers and businesses.

The bill takes solar price discrimination oversight of municipal utilities away from the IUB and makes other kinds of discrimination legal. While there is a section in the code that prohibits municipal utilities from discriminating against solar by charging higher rates, there are no parameters defined or bases to challenge a municipal utility for discriminating against a person who wants to install solar as it relates to time to respond or inter-connection fees for solar customers to connect with the utility. The only recourse for the solar customer is to challenge the action of the municipal utility in court.

Iowa has some of the lowest energy rates in the Midwest and the country, while developing one of the strongest clean energy economies. Energy efficiency and rebate programs have saved Iowa consumers billions of dollars, avoided the need to build costly new power plants, attracted businesses looking for low electric rates and created thousands of Iowa jobs. This bill undermines many of the policies that have led to Iowa’s cost-effective clean energy leadership. For example, it separates energy efficiency and demand-response programs. The Iowa Consumer Advocate (Utilities) has expressed concerns about many facets of the proposal, and Iowa families and businesses will likely see substantial utility rate increases.

 

SF 2316 applies to transactions by domestic stock insurers, small employer group health insurers, and universal life insurance. The bill allows them to divide into two or more insurers, and provides a process for regulatory approval for such actions. The insurer must file its plan with the Iowa Insurance Division and meet various requirements. The Division will determine whether to approve the plan. The proposal is modeled after Connecticut law, and does not apply to mutual insurance companies.

As passed by the Legislature, the bill:

• Prohibits requiring a W-2 and tax statement for employee eligibility, and sole proprietors, partnerships and independent contractors are not required to have a W-2 to receive a medical plan as a small employer.
• Requires a written notice to a policyholder at least 30 calendar days prior to termination of a universal life insurance policy, in an envelope that indicates it contains important information. VETOED

 

SF 2349 relates to association health plans, a type of multiple employer welfare arrangement (MEWA). The arrangement is established by a trade, industry or professional association of employers that has a constitution or by-laws, is organized and maintained in good faith with membership stability. In the 1980s, there were significant problems with MEWAs across the country. Many were not properly capitalized and failed, leaving people with millions of dollars in unpaid health care claims. As a result, Congress gave states authority to regulate MEWAs. Under current Iowa law, no new MEWAs can be created. The only ones that exist are run by the Iowa Bankers Association and the Iowa Petroleum Marketers. The U.S. Department of Labor is in a lengthy rule-making and public-comment period on a proposal to modify MEWAs. The bill loosens Iowa law and directs the Iowa Insurance Commissioner to promulgate rules for association health plans consistent with U.S. Department of Labor regulations. Some believe that, while MEWA options are promising for Iowa, it would be prudent to wait until federal rules and guidelines are complete.

NOTE: HF 2502 – Standings, Division XII – Multiple Employer Welfare Arrangements: Requires those forming a MEWA to be a non-profit entity; repeals the emergency rulemaking authority; exempts MEWAs in Iowa from having to comply with Department of Labor changes; and states that a MEWA registered before January 1, 2018, (applicable to  the Iowa Bankers Association and the Iowa Petroleum Marketers) is not considered a MEWA unless all members elect to be treated as such (May 5, 2018). – ITEM VETO

The House passed the bill 69-30 with an amendment that incorporates SF 2329, relating to health benefit plans, which passed the Senate 40-9 and was on the House Unfinished Business Calendar. The amendment allows certain agricultural organizations to offer their members “health benefit plans” and requires any plan be provided through a self-funded arrangement and administered by a domestic third-party administrator that holds a certificate of registration from the Iowa Insurance Commissioner. This allows those who do not qualify for a health insurance subsidy to join the Iowa Farm Bureau and, as a benefit of membership, buy health coverage plans that are not ACA-compliant. The third-party administrator must have provided more than 10 consecutive years of previous health care administrative services for the agricultural organization, which limits this to health plans provided through Wellmark Blue Cross and Blue Shield. The plans “shall be deemed to not be insurance” and so are not subject to state and federal insurance regulations. One concern is that Farm Bureau and Wellmark could cherry-pick younger, healthier customers, leaving less healthy and older Iowans in the individual market, where Medica is the only provider in Iowa. This could further increase Medica premiums and further destabilize Iowa’s individual health insurance market.

 

HF 2171 allows a person to electronically stop payment on a check. In Iowa, a customer’s “stop payment” order is effective for six months, but lapses if the original order is verbal and not confirmed in writing within 14 days. The stop payment can also be renewed for another six months if the bank receives written notice that the order is effective. Email is a dorm of written notice. The bill was supported by the Iowa Bankers Association, Iowa Credit Union League and Community Bankers of Iowa.

 

HF 2175 modifies the maximum value of a life insurance company’s or life insurance association’s investments in CM3 classified mezzanine loans as a percentage of its legal reserve. Iowa law allows companies to invest up to 3 percent of their legal reserve in mezzanine loans. Currently, no more than 2 percent can be invested in CM3 loans, requiring companies to invest in riskier CM4 mezzanine loans. The bill increases the cap on CM3 loans from 2 percent to 3 percent.

 

HF 2234 shortens the timeframe for residential foreclosures. The federal Dodd-Frank Act added a 120-day waiting period before a financial institution can start a foreclosure proceeding. Taking that into account, this proposal shortens Iowa’s foreclosure waiting periods (12 months to six months, and six months to three months.) The three-month waiting period applies to foreclosures in which the financial institution agrees to forgive the debt, which is the situation in most Iowa foreclosures. The six-month waiting period applies to the few foreclosure cases in which the financial institution does not waive the debt. The three-month and six-month wait times do not begin until the 120-day Dodd-Frank waiting period has expired. Even with this legislation, Iowa will continue to have one of the longer foreclosure timeframes in the country.

As passed by the Legislature, the bill removes the five-year limit on claims for executing judgments for rent, leaving the limit on judgements of record at 20 years. If the judgement comes from a court not of record, the statute of limitations is 10 years. A landlord could bring a claim for rent within five years and would have 20 years to collect the judgment if the court that decided the case was a district court. A landlord could bring a claim for rent within five years and would have 10 years to collect the judgement if the court was a small-claims court. The statutory limit of two years for claims transferred to a third party remains.

 

HF 2236 provides greater clarity and consistency in the “service of process” provisions under the Iowa Insurance Division’s regulatory authority. The changes were made following the Division’s five-year review of its administrative rules. Supporters include the Iowa State Bar Association, the Federation of Iowa Insurers and the Independent Insurance Agents of Iowa.

 

HF 2237 is a recommendation by the Iowa Insurance Division that eliminates the words “or long-term care” from Iowa code section 507B.4 to be consistent with Iowa code section 514G.102, and repeals an outdated requirement in 505.32 to establish a clearinghouse. The healthcare.gov website fulfills this function and is linked to as needed throughout the Insurance Division website.

 

HF 2238 specifies that an insurer can be a victim for purposes of restitution if insurance fraud has been committed against the insurer. It clarifies that when an insurer pays a victim’s insurance claim, the insurer is not the victim and has no right of subrogation.

 

HF 2239 updates the Securities and Regulated Industries Bureau at the Iowa Insurance Division. It removes an unnecessary Iowa Code reference to NASDAQ; aligns Iowa’s crowdfunding portal law to reflect rule changes at the federal level; and updates references to the Financial Industry Regulatory Authority in Iowa Code covering viatical settlements.

The bill also amends Iowa Code (523A.207) that covers pre-need funeral arrangements. Changes will provide consumer protections and simplify the reporting process to make it more workable for businesses. Previously, a CPA report was required for the sale of a business or the assets of a business involving pre-need funeral arrangements. Now, the Insurance Division can waive the report for good cause, and an agreed-upon procedures methodology may satisfy the requirement instead.

 

HF 2286 deals with “time of sale” mandates that local municipalities may impose on home sales. Some local governments in Iowa have passed ordinances that create mandates for homeowners and/or buyers during a real estate transaction. Examples include sump pump hook-up inspections, utility inspections, energy efficiency audits and home inspections. This bill prohibits time-of-sale mandates for real property transactions. The legislation does not completely restrict a city’s ability to require certain inspections, but it specifies that these inspections cannot hinge on the point of sale.

 

HF 2305 relates to insurance coverage for health care services delivered by telehealth, health care services delivered through interactive audio and video. Telehealth does not include services delivered through an audio-only telephone call, e-mail or fax. A health insurer must provide the same coverage for services, including for mental health conditions, illnesses, injuries and diseases, whether in person or by telehealth. The Insurance Commissioner may adopt rules to administer the Code section. The new law applies to third-party payment provider policies, contracts or plans delivered, issued for delivery, continued or renewed in Iowa on or after January 1, 2019.

 

HF 2307 establishes a process for selling a city utility to another party, and requires the Iowa Utilities Board (IUB) to approve the acquisition of a water utility by an investor-owned utility already regulated by the IUB. Iowa American Water Company is the only investor-owned, rate-regulated water utility currently in the state. It provides water in most of Scott County, including Davenport and Bettendorf, as well as in the city of Clinton.

The Utilities Board must approve any acquisition in the interest of existing and new ratepayers. A community can receive fair market value for those acquisitions. Previously, the Utilities Board only reimbursed for book value (depreciated value of the assets), which is often much less than current debt. A sale of a municipal utility requires voter approval. The process ensures transparency so that the community has the information necessary for a thorough review prior to any action.

Key stakeholders, including the Iowa Association of Municipal Utilities, Iowa Rural Water Association, the IUB and the Iowa American Water Company helped craft the proposal. The Office of Consumer Advocate (Utilities) sees no problem with the legislation.

 

HF 2382 allows for three licensed professional engineers and two licensed professional land surveyors on the Engineers and Land Surveyors Board. The board includes seven members, two of whom are lay people. An individual licensed as both a professional engineer and a professional land surveyor can only satisfy the requirements for one seat on the board. The Iowa Banking Division’s Professional Licensing Bureau includes the Engineers and Land Surveyors Board.

 

HF 2446 clarifies and updates Iowa Code by deleting references in Utilities Board regulatory sections that are obsolete and repeals requirements for studies that have been completed and the reports properly filed with the Legislature.

 

HF 2458 is an initiative known as “Future Ready Iowa,” which aims to build the state’s “talent pipeline.” It was created after Iowa received a National Governor’s Association grant, and a “Future Ready Iowa Alliance” developed and recommended a plan to ensure 70 percent of Iowa’s workforce has education or training beyond high school by 2025. Currently, 55 percent of jobs available in Iowa are “middle-skill” jobs that require more than a high school diploma but not a four-year degree: an associate’s degree, a training certificate or an apprenticeship. Only 32 percent of Iowa workers meet this skill level.

The legislation creates a new program under the Economic Development Authority to encourage more small- and medium-sized apprenticeship programs. It also creates a volunteer mentor program; a summer youth intern pilot program for at-risk youth; an Iowa Employer Innovation Program focused on training for high-demand jobs; and a Skilled Workforce Grant Program for state universities or accredited private colleges. The Department of Workforce Development and community colleges will identify and create a list of high-demand jobs for these programs.

—

NOTE: health care coverage for peace officers’ surviving families

HF 2351 addressed health care coverage for peace officers’ surviving families. It was funneled on March 15 in Senate Commerce, when Sen. Chapman cancelled the committee meeting.

HF 2502 – Standings, Division XVII – Health Care Coverage for Surviving Spouse & Children: Requires the continuation of existing health care coverage or reenrollment for surviving spouse and surviving children of an eligible peace officer or fire fighter. The city or county may pay the cost of the coverage. Otherwise, the surviving spouse may the cost.

The following bills were passed by the Legislature and signed into law by the Governor.

SF 1 – Administrative rules for jobs impact statements
SF 230 – Legislative Branch health insurance premiums
SF 331 – Filing requirements for energy efficiency reports
SF 355 – Municipal utilities, regulations regarding service disconnection, discontinuation
SF 404 – Experimental treatments
SF 408 – Architect licensure
SF 409 – Credit Union omnibus
SF 431 – Siting of small wireless facilities
SF 502 – Consumer Credit Code update
SF 503 – Deferral of unpaid installments on certain consumer credit loans
HF 215 – Insurance benefits for autism treatment
HF 303 – IID update to pre-need funeral, cemetery receivership requirements
HF 309 – IID insurance certificates
HF 311 – IID technical updates
HF 445 – IUB omnibus
HF 518 – Workers’ Compensation
HF 586 – IFA rent subsidy program; filing requirement modification; mechanics’ liens
HF 621 – EDA technical update
HF 626 – IID long-term-care insurance filing fee elimination

SF 1 requires that every proposed rule under a notice of intended action or publication without notice contain a jobs impact statement outlining the purpose and statutory authority of the rule, and analyzes and describes the impact on state agencies, local governments, the public and regulated entities, including businesses and self-employed individuals. The statement must indicate if a proposed rule would have a positive or negative impact on private sector jobs and employment opportunities. Before proposing a rule, an agency must minimize any adverse impact on jobs and developing new employment opportunities, and must accept comments from stakeholders prior to the final jobs impact statement. The administrative rules coordinator may waive the jobs impact statement for emergency rules.
[2/22: 50-0]

 

SF 230 concerns state health insurance plans for legislators and full-time legislative employees. Those enrolled in a state group insurance plan for state employees follow the enrollment rules for the largest number of non-contract full-time state employees of the Executive Branch (other than employees of the State Board of Regents) and must pay a portion of the premium on the same basis. The bill strikes language relating to premium rates in Code section 2.40(1)(a)(4). The bill is effective upon enactment.
[2/13: 50-0]

 

SF 331 streamlines federal and state energy efficiency reporting by giving electric cooperatives the option of filing their mandatory annual federal report (Form EIA-861) with the Iowa Utilities Board to fulfill state energy efficiency reporting requirements. This eliminates duplication and reduces regulatory costs. The Iowa Association of Electric Cooperatives estimates a collective savings of $75,000 to $100,000 annually for cooperatives statewide. Electric cooperatives still must offer energy efficiency programs to member-owners, and data and information about energy efficiency programs must be reported.
[3/9: 48-0 (Anderson, Bertrand excused)]

 

SF 355 adds “disconnection of service” to Code section 384.84(3), which relates to discontinuing services by municipally owned utilities. Currently, a municipally owned utility is not regulated by the Iowa Utilities Board except in specified instances, including disconnection of service. Board authority to establish rules relating to deposits, which may be required by a utility for the initiation or reinstatement of service, would not apply to municipal utilities. Current Code section 476.20(5) requires the board to establish uniform rules for public utilities with respect to deposits required for the initiation or reinstatement of service. This would not apply to municipal utilities, which are governed by Code section 384.84, and municipal utilities are not subject to the board’s rules regarding deposits and payment plans for delinquent amounts owed and repayment of past-due debt. A city utility may require a deposit not exceeding the usual cost of 60 days of gas and electric service.
[3/9: 48-0 (Anderson, Bertrand excused)]

 

SF 404 relates to the use of experimental treatments for terminally-ill patients, known as “Right to Try.” 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 provide 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; the specific treatment sought and the potential best, worst and expected results from the treatment; that the patient’s insurance is not required to pay for the treatment and that hospice service may refuse to accept the patient after receiving the treatment; and 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 for harm done to the patient if they comply in good faith with the law and exercise reasonable care. The new law does not allow a treating physician to assist the patient in committing or attempting to commit suicide.
[4/17: Concur, 49-0 (McCoy excused)]

 

SF 408 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 (i.e., those involving education, training and examination). “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 (except Wisconsin) require architect licensure.
[3/28: 49-0 (Rozenboom excused)]

 

SF 409 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.

It 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 penalty provision, will make the language printed on the examination report enforceable. In addition, the Division has formalized a process for authorizing delivery of examination reports to third parties, such as auditors, the Federal Home Loan Bank and potential merger partners, via the completion of a confidentiality agreement by all parties.

Previously, the board of directors had to meet after receiving the report of examination and whenever the superintendent deemed it necessary and advisable. Recognizing there may be circumstances where the superintendent finds it necessary to call a meeting not directly related to an examination, the Division’s Assistant Attorney General advised moving this provision to a section calling for a meeting of the board. Subsections 4 and 7 from section 533.113 are combined, placed in new section 533.113A, and deleted from section 533.113.
[3/9: 48-0 (Anderson, Bertrand excused)]

 

SF 431 relates to siting small wireless communication facilities and expands 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 and deployment of small wireless facilities (SWF). 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 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 if it 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 it contains the same terms and conditions provided for other commercial projects or uses in the public right-of-way.

A House amendment:

• Limits use of traffic signal poles for SWFs to the vertical portion, not any horizontal cable or arm.
• Gives local governing authority over placement of new poles in right-of-way.
• Limits the size of micro wireless facilities to a very small size (12” x 15” x 24”). They are self-contained, requiring no equipment, electric source or meter.
• Allows placement of a micro wireless facility on operator-owned overhead lines, as long as it complies with national safety codes, without a permit or fee.
• Preserves pre-existing ordinances requiring a permit for micro wireless facilities.
• Allows an authority to require a right-of-way use permit if the work to install or maintain the micro wireless facility requires closure of a highway lane or otherwise disturbs a highway.
• Details a process for modification or relocation of an SWF due to road widening or other authority projects.
• Extends time for the authority to act on permit from 60 days to 90 days.
• Clarifies that authority can obtain additional time to process a large volume of applications by providing notice rather than a request.
• Adds more details to the process for determining that a proposed SWF would compromise the safety of a structure.
• Limits the duration of a permit for SWF on an authority structure outside of the right-of-way to 10 years with a five-year renewal.
• Eliminates the flat $100 per year option (one of three) for establishing the annual rate for placement on an authority structure.
• Provides additional flexibility for an authority to remove SWFs in an emergency.
  [4/18: Concur, 50-0]

 

SF 502 is an agreement among the Iowa Attorney General, Iowa Bankers Association and Iowa Credit Union League to modernize the Iowa Consumer Credit Code. Many fees for creditors and remedy awards for debtors have not been adjusted since the Code was created 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 them.
• Provides for a credit reporting charge, 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 provide 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.
  [4/12: 49-0 (Bertrand excused)]

 

SF 503 clarifies the Iowa Consumer Credit Code related to deferred payment on a closed-end, simple interest loan. Currently, the parties to a pre-computed consumer credit transaction may agree in writing to a partial or full deferral of any unpaid installments and the creditor may receive a deferral charge. The bill adds deferrals with respect to interest-bearing consumer credit transactions that are not pursuant to open-end credit arrangements, and other than consumer lease or consumer rental purchase agreements. The parties may agree in writing to a partial or full deferral of any unpaid installments in addition to any interest accrued, pursuant to the terms of the transaction. The creditor may receive a deferral charge not to exceed $30 (this mirrors the fee language in SF 502).
[4/12: 49-0 (Bertrand excused]

 

HF 215 creates Code section 514C.31, requiring state-regulated health insurance policies, contracts and plans for large employers (more than 50 employees) and those covering public employees other than state employees (Code chapter 509A) to provide coverage benefits for applied behavior analysis to treat autism spectrum disorders in children. This does not include individual health insurance plans or small employer group plans. Treatment must be provided by a board-certified behavior analyst or licensed physician or psychologist. The required maximum benefit for coverage is $36,000 per year through age six; $25,000 per year from seven to 13; and $12,500 per year from 14 to 18. Required coverage can be subject to preauthorization, prior approval or other care management requirements, including limits on number of visits. Required coverage can be subject to dollar limits, deductibles, copayments, coinsurance provisions or any limitations 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 every year thereafter, unless the insurer and the treating physician or psychologist agree that more frequent review is necessary. The cost of the review is paid by the insurer. The provisions of a treatment plan cannot be changed until the completion of a review.

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 in Iowa on or after January 1, 2018. Those eligible for coverage are not eligible to participate in the state autism support program (Code sections 225D.1, 225D.2) effective January 1, 2018.
[3/23: 48-0 (Shipley, Zaun excused)]

 

HF 303 is a recommendation by the Iowa Insurance Division (IID). It allows the Insurance Commissioner to notify the Iowa Attorney General of a potential need for a receivership for both a pre-need seller of cemetery and funeral merchandise or funeral services and for a cemetery itself. This eliminates the red tape of meeting a list of requirements in those situations where the pre-need seller or cemetery has consented to a receivership, and allows the Commissioner to move more quickly to protect the remaining funds held by either the pre-need seller or cemetery.
[3/13: 49-0 (Bertrand excused)]

 

HF 309 codifies current practice that prohibits a person from preparing, issuing, requesting or requiring a “certificate of insurance” that contains false or misleading information about the policy or purports to amend, extend or alter the policy’s coverage. A “certificate of insurance” is evidence of property and causality insurance coverage. A certificate does not include a policy, insurance binder, policy endorsement or automobile insurance identification or information card.

A certificate does not warrant that the insurance policy complies with the insurance or indemnification requirements of a contract, and the inclusion of a contract number or description in a certificate cannot be interpreted as warranting compliance. A person is entitled to notice of cancellation, non-renewal or material changes in an insurance policy if they have such rights under the terms of the policy. A certificate does alter those rights.

The Iowa Insurance Commissioner may examine and investigate anyone they believe violates the law. Enforcement may include cease and desist orders and a $500 penalty per violation. The Commissioner may adopt rules to administer the law, which takes effect upon enactment and applies to certificates of insurance prepared, issued, requested or required beginning 90 days after that date.
[4/4: 50-0]

 

HF 311 is an Iowa Insurance Division (IID) recommendation that makes technical updates based on the National Association of Insurance Commissioners (NAIC) models, including conforming language with federal regulations. NAIC is the U.S. standard-setting and regulatory support organization. The IID proposal was widely circulated to interested parties and stakeholders for review and comment.
[3/8: 49-0 (Chelgren excused)]

 

HF 445 is a recommendation by the Iowa Utilities Board (IUB). Rate-regulated utilities have collected different rates on a temporary basis, subject to refund, while a rate review is pending. There were two options under which this occurred. The utility could ask the Board to approve temporary rates based regulatory principles, and the Board would 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 was not typically required to make refunds on a class-by-class basis.

The second option allowed the utility to implement temporary rates without Board review or approval within 10 days after the rate case is filed. If the Board later determined that the temporary rates were not based on established regulatory principles, the Board would consider requiring refunds based on overpayment made by each individual customer class, rate zone or customer group.

In recent rate cases, the utilities tended to use the second option, which allowed the utility to begin collecting temporary rates sooner, and allowed the Board and the other parties to avoid devoting resources to temporary rate issues, while retaining the right to review the rates at a later date. The law strikes first option (allowing utilities to implement Board-approved temporary rates within 90 days of filing), leaving automatic implementation of temporary rates 10 days after filing as the only option.

The law adds an exception to Code Chapter 22 that would apply to the IUB and the Department of Homeland Security & Emergency Management (HSEMD). 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 safeguarding telecommunications, electric, water, sanitary sewage, storm water drainage, energy, hazardous liquid, natural gas systems or other critical infrastructure. It also strikes a requirement that HSEMD provide a list of critical assets used in the critical asset protection plan.

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. This replaces the undefined term “hearing examiner.”
[3/21: 49-0 (Shipley excused)]

 

HF 518 makes sweeping changes to Iowa’s Workers’ Compensation law. The new law:

• Cuts benefits to Iowa workers who get injured on the job:
  • It reduces benefits for workers who suffer a shoulder injury. Previous law treated shoulder injuries as an injury to the body as a whole. The law now treats shoulder injuries as a scheduled member injury. A workers’ loss of earning capacity would no longer be taken into account when calculating benefits for a shoulder injury. Shoulder injury compensation would be for 400 weeks.
  • If the shoulder injury results in permanent partial disability and the employee cannot return to gainful employment, the employee can be evaluated by Iowa Workforce Development (IWD) to see if they would benefit from new career vocational training and education programs offered through an area community college. The employer would be responsible for up to $15,000 in tuition and fees that will result in (at the minimum) an associate’s degree or completion of certificate program.
  • There are a lot of requirements on the Workers’ Compensation Commissioner for evaluating and monitoring this new vocational rehabilitation section. This education funding does not address employees who would need adult basic education. The law eliminates benefits based on an employee’s loss of earning power because of an injury if the employer returns the employee to work for a short time, but then terminates the employee, leaving the employee with no compensation for lost access to other employment because of the injury.
• Reduces an employer’s liability to provide benefits to injured workers:
  • It makes a positive drug or alcohol test grounds for an employer to deny benefits for an injury without regard to whether drugs or alcohol caused the injury. The worker must prove the injury was not caused by drugs or alcohol.
  • It changes the point at which an employee must report an injury or lose the right to claim benefits for an injury. It defines the “date of the occurrence of the injury” to mean the date that the employee knew or should have known the injury was work related. It does not take into account whether the worker discovers the seriousness of the injury during the time limitation enforced by the law.
  • It forces injured workers to move and work at the company headquarters for light duty or be terminated. An injured worker who is offered work by the employer while recovering from an injury must decline the offer in writing if the employee believes the work is not suitable, or lose the right to continue receiving benefits while recovering.
  • It changes an employer’s liability for compensating an employee’s preexisting disability that arose because of prior employment-related injury with the employer to the extent the injury has already been compensated. Previously, employers were considered fully responsible for a workers’ injury, regardless of previous injuries. The law eliminates the ability of injured workers to seek payment of future weekly benefits owed in a lump sum without the agreement of the employer and its insurance carrier.
• Encourages employers and insurance carriers to avoid on-time payment of benefits: It allows employers to avoid payment of benefits awarded by the Commissioner while the employer seeks a judicial review of the award, leaving the injured worker without benefits for two to three years; eliminates the current rate of 10 percent interest on late-paid weekly benefits; reduces the interest rate on benefits to the one-year treasury rate plus 2 percent (currently less than 3 percent total). This rewards insurance carriers and employers who do not comply with the law for timely payments.

The law is effective July 1, and applies to injuries on or after that date. The law applies to commutation applications filed on or after that date.
[3/27: 29-21 (party-line, with D. Johnson voting “no” with Democrats)]

 

HF 586 revises antiquated language concerning bonds and notes that require a copy of each agreement be filed with the Secretary of State to be valid. A pledge made in respect of bonds or notes will be valid and binding from the time the pledge is made; and the resolution, trust agreement or any other instrument by which a pledge is created does not need to be recorded or filed to be valid, binding or effective. It also eliminates a requirement that IFA award grants from the shelter assistance fund on an annual basis. IFA must establish and administer a rent subsidy program to help approved participants under a home and community-based services Medicaid waiver and approve participants in the federal “money follows the person” grant program under the medical assistance program. The law adds “an owner-builder” who contracts to provide labor or furnish material for the property to those who must post a notice on the Mechanics’ Notice and Lien Registry no later than 10 days after work begins.

This language was proposed after IFA, the Iowa Bankers Association, Iowa Credit Union League, Real Estate Section of the Iowa State Bar Association, Iowa Association of Realtors and the Iowa Land Title Association worked to restore the intent of the 2012 mechanics’ lien changes in light of an Iowa Court of Appeals case in 2016. It ruled that because of the grammatical construction of the statute, only general contractors who use subcontractors must post a notice with the Secretary of State as a prerequisite to filing a mechanics’ lien on residential property.

This new law allows a general contractor to post a notice with the Secretary of State within 10 days of beginning work regardless of whether they use subcontractors so that real estate professionals can see if money is owed the contractor before closing. This is a prerequisite to filing a lien, and restores the intent of the 2012 legislation. It ensures contractors and subcontractors receive payment prior to closing a loan and clear title is preserved for the new homeowner.
[3/30: 46-0 (Anderson, Bertrand, D. Johnson, Kapucian excused)]

 

HF 621 makes technical changes to eligibility for financial assistance from the sports tourism program; transfers responsibility for certifying targeted small businesses (and associated reporting requirements) from the Department of Inspections & Appeals to the Economic Development Authority (EDA), and allows EDA to establish standards for public access to information under the program.
[4/19: 50-0]

 

HF 626 eliminates a $25 filing fee for independent review of a benefit trigger determination under a long-term-care insurance policy. Previously, the Insurance Commissioner could waive this fee, which became the practice 100 percent of the time for the past five years. The IID routinely helps Iowans with insurance issues without charging a fee, and removing the provision eliminates confusion.
[4/11: 49-0 (Allen excused]