SF 495 – Boxing, MMA, wrestling regulations

SF 495 relates to the regulation of boxing, mixed martial arts and wrestling under Iowa Code 90A. The Iowa Athletic Commissioner regulates these matches. The Athletic Commissioner is the Iowa Labor Commissioner. The bill changes the definition of “promoter” to add some updates to the type of competitions. The bill clarifies that “promoter” does not include an organizer of a private youth martial arts tournament, private test for martial arts belts, development contests with private gyms, amateur wrestling, Jiu Jitsu or amateur boxing. The bill makes numerous changes to 90A to update the Code from “boxing,” “wrestling,” “mixed martial arts” and “match” to broader terms.

The bill strikes 90A.10, which required that taxes and examination costs charged from a professional boxing event be used for grants to organizations that promote amateur boxing matches in Iowa. The fund only allows moneys in excess of $20,000 to be used for grants. Currently, 90A also allows for the Labor Commissioner to use moneys in the fund for administrative purposes of this chapter. Currently, 90A has a committee that advises the Labor Commissioner on grant awards. The bill strikes the current fund, the boxing grants and the advisory committee. The bill creates a new Athletics Commissioner Revolving Fund under the control of the Commissioner. The fund consists of any fees the Commissioner collects. The moneys in the fund are appropriated to Iowa Workforce Development to be used by the Commissioner to pay the actual costs and expenses necessary to perform the duties of 90A. [3/24: short form]

SF 566 – Banking Omnibus

SF 566 is a recommendation by the Division of Banking to modernize the Iowa Banking Act [Ch. 524], which has not been comprehensively reviewed since 1995. Portions of the Act are outdated, and fail to reflect current conditions and practices in the banking industry at both the state and national levels. Subjects requiring updates or more extensive statutory treatment include interstate banking, online banking, financial technology and innovation.

In developing the proposal, the Division thoroughly reviewed the Act with input from stakeholders to streamline provisions, eliminate outdated and unnecessary regulatory requirements (e.g., multiple filings, newspaper publications), and accommodate ongoing developments in the banking and financial services industries. Specific changes include:

• Repealing several outdated Code provisions.
• Increasing flexibility for Iowa-chartered banks to adopt innovative financial products and technologies, including authority to engage in electronic activities and invest in innovative financial technology firms.
• Facilitating bank lending and investing in community, economic and rural development efforts throughout Iowa, including in locations that may currently be ineligible.
• Reflecting broad changes to interstate banking activity, including redefining the terms “bank” and “business of banking” and adding the term “out-of-state bank.”
• Streamlining statutory procedures for closing a bank and appointing FDIC as receiver.
• Modernizing corporate procedures applicable to banks, such as notice requirements and electronic and/or digital options for meetings, notices.  
• Removing never-used authority to organize Iowa-chartered banks as LLCs.
• Clarifying application processes for voluntary dissolution and merger.
• Updating provisions for transfer of fiduciary accounts between financial institutions.
• Strengthening and codifying safeguards and procedures for when the superintendent of banking is a shareholder, member, partner, owner, director, officer or employee of a supervised entity.

The Committee unanimously adopted an amendment to strike a controversial section of the bill that would allow the Superintendent to impose an initial civil penalty of up to $500,000 on a state bank (or its directors or officers) that closes a transaction without receiving the approval of the Superintendent, and impose a civil penalty of up to $10,000 per day on which the state bank operates after closing such a transaction without prior approval. [3/24: short form]

SF 583/SF 391 – Financial Exploitation of Designed Eligible Adults

SF 583/SF 391 is an Iowa Insurance Division (IID) recommendation to address the financial exploitation of adults 65 or older, or dependent adults age 18 or older who are unable to protect their own interests, or unable to adequately 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, governmental and third-party disclosures and immunity, and training requirements brokers-dealers and investment advisers must provide to their employees focusing 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 of eligible adults. It appropriates $75,000 annually from the Commerce Revolving Fund for one FTE (complaint analyst level) to investigate complaints. Supporters include the Older Iowans Legislature, Principal Financial, Area Agencies on Aging, Hope Haven, Mosaic, Iowa Attorney General, Iowa CareGivers, Iowa Health Care Association and Wells Fargo. [3/18: short form (Absent: Koelker, Reichman)]

SF 584/SF 175 – Changes to the Iowa Economic Emergency Fund

SF 584/SF 175 makes changes to the use of moneys in the Iowa Economic Emergency Fund (EEF). Current law states that the funds from the EEF can be used:

• Via appropriation from the Legislature for emergency expenditures.
• For cash flow purposes as long as the money is returned by the end of the fiscal year.
• To reduce or prevent an overdraft or deficit of the general fund and the moneys are not returned by June 30.

The appropriation must not exceed 1% of the adjusted revenue estimate for the fiscal year in which the appropriation is made. To do this, all these  must occur: (a) the General Fund must be negative at the end of the fiscal year; and (b) the Governor must issue an official proclamation notifying the Legislative Services Agency and Legislative Fiscal Committee.

In Iowa Code, 8.55 subsection 2, the Code shows how the excess funds of the maximum balance of EEF are distributed to the Taxpayer Relief Fund and the General Fund. SF 584 makes some word changes to the subsection, but no substantive changes.  

As amended in committee, the bill rewrites 8.55, subsection 3, paragraph c relating to reducing or preventing an overdraft or deficit. The changes are meant to be clarifying changes. Instead of an “official proclamation,” the Governor will issue an “executive order.” In addition, the moneys in the fund can be used when the balance of the General Fund “will be negative,” not necessarily already negative. The bill is effective upon enactment. [3/18: short form (Absent: Koelker, Reichman)]

HF 707 – Court Interpreters

HF 707 would authorize state court administration to pay all oral language court interpreters from Judicial Branch Revolving Fund established for payment of jury, witness and court interpreter fees. Currently, oral language interpreters are paid by four sources depending on the case type and economic status of the person requiring an interpreter. The four different sources are: 1. State Public Defender; 2. Local public defender; 3. Counties; and 4. State Court Administrator. Since there are four different sources, this can cause confusion and delays in payment processing. The move to one source for payment will streamline this process.

Funding appropriated to the Indigent Defense Fund in the current fiscal year is to be used by the State Public Defender for payment of costs and fees of interpreters and translators prior to the effective date of the bill, which is July 1, 2021. House File 707 is estimated to increase funding and costs to the Jury and Witness Revolving Fund by approximately $500,000 beginning in FY22. Currently, the State Public Defender pays these interpreter fees from the Indigent Defense Fund. The bill would transfer those costs to the Revolving Fund. As a result, the Indigent Defense Fund would experience a savings of approximately the same amount. [3/24: short form]

HF 722 – Teach Iowa Scholar Fund

HF 722 allows the transfer of all available funds in the Teacher Shortage Forgivable Loan Repayment Fund and the Teacher Shortage Loan Forgiveness Repayment Fund to the Teach Iowa Scholar Fund. The Teacher Shortage Loan Forgiveness and Forgivable Loan Programs are no longer supported by state funding. The Iowa College Student Aid Commission estimates that approximately $146,000 is available to transfer to the Teach Iowa Scholar Fund along with a limited number of additional repayments that are received each month. Under the bill, approximately $191,000 will be transferred to the Teach Iowa Scholar Fund in FY22. [3/18: short form (Absent: Koelker, Reichman)]