I floor managed three bills on the house floor this past week.  On Monday, March 15, I managed HF 2435.  This bill dealt with an act relating to immunity from third-party liability for claims resulting from contaminated property.  Presently if a person holds indicia of ownership of owns contaminated property, he cannot find a buyer for the property, because the buyer could be held liable, even if the person did not cause or permit any contamination to take place.  Often these properties are abandoned and taken off the tax rolls.  If this bill is signed into law, then contaminated property held by foreclosing lenders or deed holders will be sold, cleaned up, improved and kept on the tax rolls.

The second bill changed some of the technical language that will assist retailers and the Alcoholic Beverage Division in determining when the clock starts ticking on violations. This has been a problem for them in the past.

The bill that took the most time and was very important for the financial services of Iowans was House File 2484.  The banks and credit unions worked together to pass a financial services bill on Tuesday night, and the Iowa House witnessed a significant moment in the history of financial services in Iowa.  Iowa's banking and credit union groups came together to develop an amendment that was agreeable to both sides and worked together for the passage of House File 2484 - the Banking Division restructuring bill.

For the credit unions, major revisions to their Code chapter - 533 - were adopted.  Among these was a provision that allows state chartered credit unions to exercise many of the powers that Congress has granted to federal credit unions.  This will allow many Iowa-chartered credit unions to be competitive with their federal brethren, and also allow them to remain state-chartered.  That preserves several million dollars in revenue to the state.

Iowa banks got a number of changes, including allowing examinations by federal supervisory agencies to count as state exams.  This change will reduce the number of duplicative examinations and reduce costs for both government and the banks.  The bill also increased the time between exams from 18 to 24 months.  Under House File 2484 as amended, the banks could have the ability to organize as limited liability companies once Congress instructs the IRS to permit this.

The most controversial part of the bill was a provision supported by the banks, credit unions, and insurance companies to allow state-regulated entities to disclose all the costs included in a real estate loan.  The Iowa Bar Association opposed this provision, as they felt it would allow the state agencies to charge additional fees as federally chartered entities are permitted to do.  Others contend that the provision is for consumer protection because many of the closing costs on a house are now lumped together and the consumer has a right to know exactly what they are paying for.

The bill is now headed to the Senate, where most of the provisions enjoy strong support. The last provision dealing with the real estate loan cost disclosure will be the most contentious part of the bill in the other chamber, as the age old struggle between the bar and the financial services industries continues.

This past week we were reminded of what is the most important to us in our lives. Representative Gene Manternach received word during debate on Tuesday night that his wife had collapsed.  While Gene was in route home, we got word that his wife had died. We should never take for granted the time we have and share with our family and friends. I believe that there were several phone calls made that night from the legislators who had spouses back home.

Until next time,

Tom Sands