legislative update - c.ymcdn.comc.ymcdn.com/.../legislative_update_rob_hogg.pdf · 2015 legislative...

24
2015 YLD Bridge the Gap Seminar Legislative Update 1:45 p.m.-2:15 p.m. Presented by: Sen. Robert Hogg District 19 Senator Elderkin & Pirnie PLC PO Box 1968 Cedar Rapids, IA 52406 Phone: 319-286-2336 Friday, May 15, 2015

Upload: hahanh

Post on 20-May-2018

218 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

2015 YLD Bridge the Gap Seminar

Legislative Update

1:45 p.m.-2:15 p.m.

Presented by:Sen. Robert HoggDistrict 19 Senator Elderkin & Pirnie PLC PO Box 1968 Cedar Rapids, IA 52406Phone: 319-286-2336

Friday, May 15, 2015

Page 2: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

2015 BRIDGE THE GAP SEMINAR

IOWA LEGISLATIVE UPDATE

May 15, 2015

Prepared by:

JENNIFER TYLER Assistant Legislative Counsel Iowa State Bar Association

400 Homestead Building

303 Locust Street Des Moines, IA 50309

Ph. 515/282-6803 Fax 515/282-4700

E-Mail: [email protected]

Because of the voluminous nature of this material, it is not possible to provide copies of these bills. You can obtain copies by contacting the Secretary of the Senate for Senate Bills and the Chief Clerk of the House for House Bills at the State Capitol Building or by contacting the Public Information Office at the State Capitol Building, Des Moines, Iowa 50319. Legislative information, including copies of Bills, is also available via the internet at http://www.legis.iowa.gov.

Page 3: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

2

TABLE OF CONTENTS Page I. LEGISLATORS AND COMMITTEE INFORMATION ..................................................... 3 II. ISBA AFFIRMATIVE LEGISLATIVE AGENDA ............................................................... 5 III. BILLS OF INTEREST PASSED DURING 2015 LEGISLATIVE SESSION ..................... 9

A. Business Law .............................................................................................................. 9 B. Commercial & Bankruptcy Law .............................................................................. 10 C. Criminal Law .............................................................................................................. 12 D. Elder Law .................................................................................................................... 13 E. Family & Juvenile Law .............................................................................................. 14 F. Health Law .................................................................................................................. 15 G. Judicial Administration ............................................................................................. 16 H. Litigation ..................................................................................................................... 17 I. Probate & Trust Law .................................................................................................. 18 J. Real Estate & Title Law ............................................................................................. 19 K. Tax Law ....................................................................................................................... 19 L. Workers Compensation Law .................................................................................... 20

IV. BILLS OF INTEREST NOT PASSED DURING 2015 LEGISLATIVE SESSION ........... 20 V. PENDING BILL OF INTEREST ........................................................................................... 23

Page 4: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

3

2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION A. Political Composition of the Iowa General Assembly

SENATE

1. 26 Democrats, 24 Republicans 2. Senate Leadership:

a. Pam Jochum (D-Dubuque), President b. Michael Gronstal (D-Council Bluffs), Majority Leader c. Bill Dix (R-Shell Rock), Minority Leader

HOUSE OF REPRESENTATIVES

1. 57 Republicans, 43 Democrats 2. House Leadership:

a. Kraig Paulsen (R-Hiawatha), Speaker b. Matt Windschitl (R- Missouri Valley), Speaker Pro Tempore c. Linda Upmeyer (R-Garner), Majority Leader d. Mark Smith (D-Marshall), Minority Leader

B. Lawyer Legislators

SENATE

1. District 13: Julian Garrett (Republican), Indianola; Warren County. 2. District 19: Jack Whitver (Republican), Ankeny; Polk County. 3. District 22: Charles Schneider (Republican), West Des Moines; Dallas County. 4. District 33: Rob Hogg (Democrat), Cedar Rapids; Linn County.

HOUSE OF REPRESENTATIVES

1. District 47: Chip Baltimore (Republican), Boone; Boone and Greene Counties. 2. District 55: Darrel Branhagen (Republican), Decorah; Winneshiek, Clayton, Fayette

Counties. 3. District 14: Dave Dawson (Democrat), Sioux City; Woodbury County. 4. District 25: Stan Gustafson (Republican), Cumming; Madison and Warren Counties. 5. District 43: Chris Hagenow (Republican), Windsor Heights; Polk County. 6. District 2: Megan Jones (Republican), Sioux Rapids; Clay, Dickinson and Palo Alto

Counties. 7. District 33: Brian Meyer (Democrat), Des Moines; Polk County. 8. District 9: Helen Miller (Democrat), Fort Dodge; Webster County. 9. District 41: Jo Oldson (Democrat), Des Moines; Polk County. 10. District 31: Rick Olson (Democrat), Des Moines; Polk County. 11. District 67: Kraig Paulsen (Republican), Hiawatha; Linn County. 12. District 52: Todd Prichard (Democrat), Charles City; Floyd, Chickasaw, Cerro Gordo

Counties. 13. District 98: Mary Wolfe (Democrat), Clinton; Clinton County.

Page 5: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

4

C. Judiciary Committee Members

SENATE

Steve Sodders, Chair Rob Hogg, Vice-Chair Charles Schneider, Ranking Member Tony Bisignano Julian Garrett

Wally Horn Kevin Kinney Janet Petersen Herman Quirmbach Tom Shipley

Rich Taylor Jack Whitver Brad Zaun

HOUSE OF REPRESENTATIVES Chip Baltimore, Chair Stan Gustafson, Vice-Chair Mary Wolfe, Ranking Member Marti Anderson Terry Baxter Deborah Berry Darrel Branhagen

Dave Dawson Chris Hagenow Greg Heartsill Dave Heaton Megan Hess-Jones Bobby Kaufmann Brian Meyer

Zach Nunn Jo Oldson Rick Olson Todd Prichard Ken Rizer Walt Rogers Matt Windschitl

D. Justice Systems Appropriations Subcommittee Members

SENATE Tom Courtney, Chair Julian Garrett, Ranking Member Rob Hogg, Vice-Chair Rich Taylor Mark Chelgren

HOUSE OF REPRESENTATIVES Gary Worthan, Chair Todd Taylor, Ranking Member Darrel Branhagen, Vice-Chair Steven Holt Marti Anderson Jerry Kearns Chip Baltimore Brian Meyer

Stan Gustafson

Page 6: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

5

II. IOWA STATE BAR ASSOCIATION 2015 Affirmative Legislative Program

Bill No.

Subject Bill Description Bill Status

HF 172

Revised Iowa Nonprofit Corporation Act Update Amendments (Code Chapter 504)

Based upon the ABA Model Nonprofit Corporation Act, Third Edition, amends sections in Code Chapter 504 pertaining to: Filing requirements; Definitions of “electronic” and “signature to permit electronic signatures”; nonprofit corporations serving as trustee of a trust where the corporation is the beneficiary of a charitable trust; Directors quorum and voting; Annual meetings of delegates; Simplification of the rules for member voting; Clarification of the rules re: terms of directors; Duties of directors to disclose information; Loans to directors and officers; and Articles of merger.

Passed by the Legislature and signed by the Governor 4-14-15. Effective 7-1-15.

HF 661

Probate & Trust Law Updates

Amends Iowa Probate Code Section 633.238 to provide that a surviving spouse’s elective share includes 1/3 of the value of property held in deceased spouse’s revocable trust unless the trust was created during the spouses’ marriage and transfer of the property into the trust included a statutory waiver signed by the surviving spouse. Amends Probate Code Section 633D.8 and Code Section 524.805 to allow personal representatives, surviving spouses, children, or creditors to assert liability for debts, taxes, and estate-administration expenses against pay-on-death or transfer-on-death beneficiaries. Amends Probate Code Section 633.78 to give conservators and personal representatives authority to gather information and property for the estates they are administering. Amends Code Section 422.7 to permit full deduction of administrative expenses on the IA fiduciary income tax return. Amends Code Section 450.9 to exempt descendants of stepchildren from liability for IA inheritance tax.

Approved by House Judiciary Committee and referred to House Ways & Means Committee, 2-20-15. Approved by House Ways & Means Committee 4-29-15. Placed on House Calendar.

Page 7: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

6

HF 569

Amendments to Garnishment Statute

Amends Code Chapter 642 to provide for the following:

1. Requires garnishors (in lieu of sheriff’s office) to serve due process notice.

2. Allows creditors to serve notices as an alternative for due process purposes.

3. Requires sheriff’s office to provide timely filings of answers from garnishees.

4. Changes references in statute to distinguish between employers and non-employers vs. earnings and non-earnings.

5. Removes redundancy of serving the same notices at the time of condemnation.

6. Provides a mechanism for claiming exemptions to the sheriff’s office in addition to the judicial process.

7. Removes requirement of service on “attorney of record”.

Passed by the Legislature and signed by the Governor 4/24/15. Effective 7/1/15.

SF 376 Calculation of Probate Court Costs

Relates to how the clerk of probate court determines and collects charges in connection with services provided in probate matters. Excludes from the determination of court costs property over which the court lacks probate jurisdiction and for which the clerk renders no services. Specifies that for purposes of calculating the costs for other services performed by the court in the settlement of the estate of any decedent, minor, person with mental illness, or other persons laboring under legal disability, the value of such a person’s personal property and real estate is equal to the gross assets of the estate listed in the probate inventory minus, unless the proceeds of the gross assets are payable to the estate, joint tenancy property, transfers made during such person’s lifetime such as to a revocable trust, and assets payable to beneficiaries.

Approved by Senate Judiciary Committee. Referred to Senate Ways & Means Committee, 3-16-15.

Page 8: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

7

SF 223

Code Chapter 252 (“Support of the Poor”) Update

Updates Chapter 252 to clarify that after enactment of Medicaid and Medicare, counties can no longer seek support for a poor person from family members.

Passed by the Legislature and signed by the Governor 3/31/15. Effective 7/1/15.

SF 220 Expert Witness Fees Amends Code Section 622.72 to remove the $150 per day cap on expert witness fees and to permit the district court to tax as costs a fair and reasonable expert witness fee in an amount not to exceed $2,500 for the expert’s time testifying at trial or in depositions used at trial.

Senate passed on 3-10-15, 48-2. Referred to House Judiciary Committee.

HSB 192

Redemption from Tax Sale of Property Owned by Persons with Disabilities

Remedies issues arising from Iowa Court of Appeals decision Firestone v. FT13 (Filed 4-30-14) relating to redemption issues arising from ownership of property by minors or persons of unsound mind.

Introduced, but not advancing this session.

HSB 192

Requirements for Timely Filing & Effective Releases or Satisfactions of Mortgages

Remedies ambiguities and inconsistencies in existing statutes & provides remedies for failure of mortgagees to issue releases of mortgages.

Introduced, but not advancing this session.

SSB 1238

Uniform Fiduciary Access to Digital Assets Act (UFADAA)

Adopted by the Uniform Law Commissioners in July 2014, the Act ensures that legally appointed fiduciaries can access, delete, preserve, and pass along a person’s digital assets (i.e., documents, photographs, e-mail, and social media accounts) as appropriate.

Introduced, but not advancing this session.

SF 451

Chapter 232 “Bridge Orders” Amendment

Amends Code Chapter 232, “Juvenile Justice” to allow for Bridge Orders, which would facilitate the closure of certain cases under Code Chapter 232 by transferring jurisdiction to the district court upon the occurrence of certain criteria.

Passed by the Legislature and signed by the Governor 4-17-15. Effective 7-1-15.

Page 9: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

8

SSB 1229

Post-Secondary Education Subsidy

Amends Code Section 598.21F(5) to provide for the termination of a post-secondary education subsidy upon the completion of the first calendar year of course instruction if the child fails to maintain a cumulative GPA in the median range or above during that first calendar year.

Introduced, but not advancing this session to allow for further drafting work.

HF 572 Appointment of Guardian Ad Litem in Adoption Proceedings

Amends Code Section 600.5 to require the Court, at the time of the filing of an adoption petition, to make a determination as to whether a guardian ad litem will be appointed.

Approved by House Judiciary Committee and placed on House Calendar. 4/3/15- Re-referred to House Judiciary Committee 4/3/15.

Appeal Deadline for Private Termination of Parental Rights Actions

Amends Code Section 600A.9(2) to reduce the 30-day appeal deadline for private termination of parental rights (TPR) actions to a 15-day appeal deadline to be consistent with Chapter 232, which governs TPR actions initiated by the State.

In drafting.

Proceedings to Establish Paternity

Amends Code Section 600B.8 to allow fathers to initiate actions to establish paternity consistent with the Iowa Supreme Court’s decision in Callender v. Skiles, 591 N.W.2d 182 (Iowa 1999).

In drafting.

In addition to the above legislative proposals, The Iowa State Bar Association supports the following positions as a part of its 2015 Affirmative Legislative Program:

• Full funding of indigent defense and adoption of legislation providing for an automatic, periodic increase in indigent defense fees.

• Full funding of the Judicial Branch. • Full funding for Legal Services. • Full funding for the Office of Substitute Decision Maker to protect the interests of Iowans who

have no one else to manage their financial and health care needs. • Support child abuse prevention and treatment efforts and funding for child abuse prevention

and treatment. • Oppose the legalization of title insurance. • Will monitor issues regarding lawyer abstracting under Iowa Title Guaranty. • Oppose absolute immunity legislation.

Updated 5/12/15

III. BILLS OF INTEREST PASSED DURING 2015 LEGISLATIVE SESSION

Page 10: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

9

Italicized bills are Iowa State Bar Association Affirmative Legislative Proposals BUSINESS LAW HF 172 Revised Iowa Nonprofit Corporation Act Update (ISBA Affirmative Legislation).

Makes update changes to the Revised Iowa Nonprofit Corporation Act, Iowa Code Chapter 504 ("Act"). Most of the amendments are based on the Model Nonprofit Corporation Act, Third Edition ("MNCA"), published by the American Business Law Section Nonprofit Organizations Committee. Following is a summary of the amendments.

SECTIONS 1 and 4, Registered Agents- Iowa Code Section 490.501(2)(b),(c) and 504.501(2)(b),(c). Make corrective changes to the Iowa Business Corporation Act (Code Chapter 490) and the Revised Iowa Nonprofit Corporation Act (Chapter 504) concerning who can serve as registered agents for corporations organized under these chapters. Currently, there is an inconsistency in the Code with regard to registered agents. Code Section 489.113 provides that both a corporation and a limited liability company may serve as the registered agent for a limited liability company. However, the Business Corporation Act and Nonprofit Corporation Act do not provide for a limited liability company to serve as the registered agent for these types of corporations. The amendments clarify that a limited liability company can be the registered agent for a business corporation organized under Chapter 490 or a nonprofit corporation organized under Chapter 504.

SECTION 2, Filing Requirements - Iowa Code Section 504.111. Amends the Act to incorporate the language in the MNCA regarding filing requirements.

SECTION 3, General Powers of a Nonprofit Corporation - Iowa Code Section 504.302. Amends the Act to expressly provide that a nonprofit corporation may serve as a trustee of a trust for which the corporation is a beneficiary. The purpose of this amendment is to make clear that a nonprofit corporation may serve as a trustee in the situation where it is a beneficiary of a charitable trust.

SECTION 5, Annual Meeting - Iowa Code Section 504.701. Amends the Act to provide that annual meetings of members can be replaced by annual meetings of delegates (to the extent a nonprofit corporation has both members and delegates).

SECTION 6, Member Voting - Iowa Code Section 504.712. Amends the Act to simplify the rules for member voting.

SECTION 7, Terms of Directors- Iowa Code Section 504.805. Amends the Act to clarify the rules with regard to terms for directors.

SECTION 8, Directors Quorum and Voting- Iowa Code Section 504.825. Amends the Act to provide that a director is presumed to have assented to an action if present at a meeting and the director either does not object at the beginning of the meeting to holding it or transacting business, or dissents or abstains from the action. The proposed amendment is similar to the Iowa Business Corporation Act.

SECTION 9, Duties of Directors to Disclose Information- Iowa Code Sections 504.831. Amends the Act to incorporate the recently adopted Iowa Business Corporation Act provisions that make clear that directors must disclose information to other directors that is not already

Page 11: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

10

known to such other directors when such information is material to the discharge of their decision-making and oversight functions.

SECTION 10, Loans to Directors and Officers- Iowa Code Section 504.834. Amends the Act to incorporate exceptions to the prohibition on loans to directors and officers. The exceptions, which are based on the MNCA, describe situations where there should not be an issue with loans made by the corporation. The proposed amendment departs from the MNCA by limiting the exceptions only to fulltime employees.

In researching what other states have done in this area, it appears that 28 states and the District of Columbia either have no prohibition to such loans or have statutes that allow loans in certain circumstances. Minnesota, Missouri, Illinois, and Wisconsin permit loans to officers and directors in certain circumstances.

SECTION 11, Iowa Code Section 504.854. Corrects a reference to a subsection number in Code Section 504.825.

SECTION 12, Articles of Merger- Iowa Code Section 504.1104. The Act would be amended to make the requirements for articles of merger more consistent with the Iowa Business Corporation Act requirements. Signed by the Governor 4/17/15. Effective 7/1/15.

COMMERCIAL LAW & BANKRUPTCY HF 569 Notice of Garnishment & Levy (ISBA Affirmative Legislation). Revises the notice

requirements implemented in the 2014 statutory changes to the Garnishment Chapter. In 2014, the legislature passed a new provision, Iowa Code § 642.14A, in an effort to address the federal district court decision in New v. Gemini, which held that Iowa Code Section 642.14 was unconstitutional. Under 642.14A, seven days after the garnishee (typically a lending institution) is served with the garnishment, the sheriff must send a Notice of Garnishment to the debtor informing them that certain assets may be exempt from the garnishment and that a hearing is available to them in order to claim these exemptions. Iowa Code § 642.14A (2014). The notice must be served either by personal service or restricted certified mail and first class mail to both the debtor and the debtor’s attorney of record. Id. This notice was in addition to what was typically known as the “precondemnation” notice.

Although Iowa Code § 642.14A offered some solutions to Gemini, four main concerns remained: First, the law currently requires the sheriff’s office to notify the debtor seven days after executing the garnishment, not after the garnishee (bank) responds. In practice, debtors may be given a heads up about the process before the bank even checks the account or implements the levy leading to a debtor removing his/her funds from the account before the freeze is in place. Creditors were also unnecessarily paying for notices of garnishment even when debtor’s funds were not at that bank.

• Second, creditors are not timely receiving notice of the sheriff’s service of the debtor with this pregarnishment notice. Creditors and attorneys were exposed for this lack of notice, so considering the lack of notice may still be occurring, the Gemini issue remains despite the 2014 legislation. In short, the creditor is on the hook for ensuring this is accomplished and with the notice service requirement currently the sheriff’s duty, the creditor lacked any control over the process or costs. The new legislation puts this duty to deliver timely notice on the creditor.

Page 12: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

11

• Third, the 2014 legislation is leading to inconsistent fees, burdens and procedures among the sheriff’s offices that now are faced with serving both pregarnishment and postgarnishment notices. The 2015 legislation consolidates these notices into one. When polling the county sheriffs this summer, some are charging over $100.00 for garnishment services, where another county may be charging $30.00. This inconsistency costs debtors and hurts Iowans because the creditors will incur the fees and time that it takes to determine a particular county’s procedures and charge that back to the underlying judgment debtor.

• It was unclear whether the new 2014 procedure (642.14A Notice of Garnishment) applied only to bank garnishments or whether wage garnishments were also subject. New Code Section 642.14B is added in the 2015 legislation to separate these situations. In response to constituent concerns and confusion throughout the state, the ISBA Commercial and Bankruptcy Law Section formed a subcommittee in the summer 2014 representing both debtors’ and creditors’ interests. The Iowa Attorney General’s Office and the Iowa Bankers Association also provided input into the final legislation. HF 569 contains the following main changes:

1. Requires one “Notice of Garnishment” to the judgment debtor per garnishment. Requires the

one Notice to be served on the debtor based on the timing of the sheriff’s filing of the responses from the Garnishee (typically the bank or employer). Addressing issue 1 above.

2. Distinguishes the notice requirements between employer and nonemployer garnishments. Addressing issue 4 above.

3. Shifts the burden of serving the Notice of Garnishment away from the sheriff’s office and to the creditor or employer garnishee. Addressing issues 2 and 3 above and saving costs.

4. Requires the sheriff’s office to file the garnishee’s answers to sheriff examination questions with the court within 7 business days of receipt by the sheriff. Because filing in most counties is electronic, this will prevent additional costs and time from both the sheriffs’ staff and creditors to track down the status of service and the process. Addressing issues 2 and 3 above.

5. Requires the creditor to serve Notice of the Garnishment on the judgment debtor within 7 business days of the sheriff’s filing of the garnishee’s answers to the examination. Addressing issue 1 above and saving on costs.

6. Removes the redundancy of serving the Notice on the “attorney of record.” The debtor’s attorneys on the subcommittee agreed with creditors that this additional service was redundant, costly and irrelevant as most attorneys only represented their clients through the judgment phase of litigation or were receiving electronic notice of the proceedings anyway through the electronic filings.

7. Adds new Code Section 642.25, which provides that a sheriff’s actions under Code Chapter 642,

including service of notice, shall not be construed to be that of an agent of any person or party in the garnishment proceedings. Signed by the Governor 4/24/15. Effective 7/1/15.

Page 13: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

12

CRIMINAL LAW SF 150 Criminal Penalty for Sexually Violent Predator Escapees. Under current law, a

sexually violent predator who is civilly committed pursuant to Code Chapter 229A or a person who is detained pending a determination of whether the person is a sexually violent predator, who escapes or attempts to escape from custody commits a simple misdemeanor or may be subject to punishment for contempt. SF 150 amends Code Section 229A.5B to provide that such a violation is a serious misdemeanor or may be punishable as contempt. Signed by the Governor 3/31/15. Effective 7/1/15.

SF 385 Expungement of Not-Guilty Verdicts and Dismissed Criminal Charge Records.

Provides that upon application of a defendant or a prosecutor, or upon the court’s own motion in a criminal case, the court shall enter an order expunging the record of the criminal case if the court finds that the defendant has established certain conditions have occurred, as applicable: 1) The criminal case contains one or more criminal charges in which an acquittal was

entered for all criminal charges, or in which all criminal charges were otherwise dismissed.

2) All court costs, fees, and other financial obligations ordered by the court or assessed by the clerk of court have been paid.

3) A minimum of 180 days have passed since entry of the judgment of acquittal or of the order dismissing the case relating to all criminal charges, unless the court finds good cause to waive this requirement for reasons including but not limited to the fact that the defendant was the victim of identity theft or mistaken identity.

4) The case was not dismissed due to the defendant being found not guilty by reason of insanity.

5) The defendant was not found incompetent to stand trial in the case. Provides that the court shall not enter an order expunging the record of a criminal case unless all the parties have had time to object on the grounds that one or more of the conditions have not been established. Specifies that an expunged record is a confidential record but shall be made available by the clerk of the district court, upon request and without court order, to the defendant or to an agency or person granted access to the deferred judgment docket under Code Section 907.4(2). This Chapter applies to all public offenses as defined in Code Section 692.1, and does not apply to dismissals related to a deferred judgment under Code Section 907.9. Requires the court to advise the defendant of the provisions of this chapter upon either the acquittal or the dismissal of all criminal charges in a case. The Iowa Supreme Court may prescribe rules to implement the legislation. The legislation applies to criminal cases that occurred prior to, on, or after the effective date of the Act. Signed by the Governor 5/1/15. Effective 1/1/16.

SF 448 Sentencing of Juveniles for Commission of Class “A” Felonies. Current Iowa

statutory law provides that a person under 18 years of age who commits a class “A” felony, other than First Degree Murder, shall be eligible for parole after serving a minimum term of confinement of 25 years. A person under 18 years of age who commits First Degree Murder must serve a life sentence without the possibility of parole, which equals the sentences of adult felons. In 2012, the United States Supreme Court decision in Miller v. Alabama, 132 S. Ct. 2455 (2012), held that a mandatory life sentence without the possibility of parole for a juvenile who commits murder is

Page 14: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

13

unconstitutional. In State v. Lyle, 854 N.W.2d 378 (Iowa 2014), the Iowa Supreme Court ruled that the Iowa Constitution forbids a mandatory minimum sentencing scheme for juvenile offenders that deprives the district court of the discretion to consider youth and its attendant circumstances as mitigating factors. SF 448 provides that a person who commits First Degree Murder and who was under the age of 18 at the time the offense was committed shall be sentenced to serve one of the following three sentencing options: 1. Confinement for the rest of the juvenile’s life with no possibility of parole unless

the governor commutes the sentence to a term of years. 2. Confinement for the rest of the juvenile’s life with the possibility of parole after

serving a minimum term of confinement as determined by the court. 3. Confinement for the rest of the person’s life with the possibility of parole. The legislation lists numerous circumstances for the court to consider prior to sentencing. SF 448 provides that a person who commits a class “A” felony, other than Murder in the First Degree, and who was under the age of 18 at the time the offense was committed shall be sentenced to serve one of two sentencing options: 1. Confinement for the rest of the juvenile’s life with the possibility of parole after

serving a minimum term of confinement as determined by the court. 2. Confinement for the rest of the juvenile’s life with the possibility of parole. The bill lists numerous circumstances for the court to consider prior to sentencing.

A person paroled pursuant to this legislation is subject to the same set of procedures set out in Code chapters 901B, 905, 906, and 908, and rules adopted under those Code chapters for persons on parole. The legislation prohibits earned time from reducing any mandatory minimum sentence imposed under Code Section 902.1. SF 448 takes effect upon enactment and applies to a person who was convicted of a class “A” felony prior to, on, or after the effective date of the bill and who was under the age of 18 at the time the offense was committed. Signed by the Governor 4/24/15. Effective 4/24/15.

ELDER LAW HF 579 Regulation of Elder Group Homes, Health Care Facilities, Assisted Living Programs,

& Adult Day Services Programs. Contains various provisions relating to regulation by the Department of Inspections & Appeals of health care facilities, elder group homes, assisted living programs, and adult day services programs. Provides that the court may not appoint the same attorney to serve as both legal counsel and guardian ad litem for the dependent adult in a dependent adult abuse case. Also amends a Code reference relating to dependent adult abuse that occurs in elder group homes and adult day services programs to refer to the definition of dependent adult abuse that occurs in facilities and programs rather than the definition of elder abuse that occurs outside facilities and programs. Signed by the Governor 4/24/15. Effective 7/1/15.

SF 223 Support of the Poor by Relatives (ISBA Affirmative Legislation). Updates Iowa Code

Section 252 (”Support of the Poor”) by repealing obsolete sections and making clarifying changes. Code Chapter 252 is a holdover from years ago before federal Medicare and Medicaid laws were enacted in the 1960s. The chapter permits counties to seek support from parents, children, grandparents, and grandchildren of a poor person. After enactment of Medicaid and

Page 15: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

14

Medicare in the 1960s, family members were no longer responsible for the care and maintenance of a poor person. SF 223 updates Iowa law so it is in keeping with actual practice and consistent with federal law. Under the bill, only the poor person is liable for repayment of money expended by the county on behalf of the poor person. The county may recover money expended for the assistance or support of a poor person from the poor person while living if the person becomes able to pay and the action to recover is filed within two years after the person becomes able. If the poor person is deceased, moneys may be recovered from the person’s estate by filing a claim as provided by law (i.e., Upon the death of a person who received Medicaid, consistent with federal law, Iowa has an estate recovery law which seeks recovery from the estate of the Medicaid recipient). Signed by the Governor 3/31/15. Effective 7/1/15.

FAMILY AND JUVENILE LAW SF 292 Confidentiality of Juvenile Court Records. Amends Code Section 232.147, subsection

1, to provide that juvenile court “social” records shall be kept confidential and shall not be inspected or disclosed except as authorized by Iowa Code Chapter 232. Amends Code Section 232.147, subsection 2, to provide that official juvenile court records containing a dismissal of a delinquency complaint or an informal adjustment of a complaint when no petition shall not be available to the public and may only be inspected by or disclosed to the following:

(1) The judge and professional court staff, including juvenile court officers. (2) The child’s counsel or guardian ad litem. (3) The county attorney and county attorney’s assistants. (4) The superintendent or the superintendent’s designee of the school district for the

school attended by the child or the authorities in charge of an accredited nonpublic school attended by the child.

(5) A member of the armed forces of the United States who is conducting a background investigation of an individual pursuant to federal law.

(6) The statistical analysis center for the purposes stated in section 216A.136. (7) The state public defender. Juvenile court records in cases not alleging delinquency are confidential records. Signed by the Governor 4/24/15. Effective 7/1/15. SF 412 Child in Need of Assistance & Delinquency Cases. Delinquency: Amends Code

Section 232.8 to allow juvenile court services to provide follow-up services for a child adjudicated by the court to have committed a delinquent act upon the child reaching 18 years of age until the child is 21 years of age, if the child and juvenile court services determine the child should remain under the guidance of a juvenile court officer. Follow-up services shall be made available to the child, as necessary, to meet the long-term needs of the child aging into adulthood. A child who remains under the guidance of juvenile court services who is alleged to have committed a subsequent public offense shall be prosecuted as an adult. Child in Need of Assistance: Under current law, a court cannot make a disposition of a petition in a child in need of assistance case until two working days after a social report has been submitted to the court and counsel for the child, and the social report has been considered by the court. However, the court may waive the two-day requirement upon agreement by all the parties. SF 412 increases this time period to five working days and requires the court, at least five days before a dispositional hearing, to send a copy of the social report to the child’s counsel, counsel for the child’s parent, guardian, or custodian, and the guardian ad litem.

Signed by the Governor 4/24/15. Effective 7/1/15.

Page 16: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

15

SF 451 Bridge Orders (ISBA Affirmative Legislation). Facilitates the closure of Child in Need of

Assistance (CINA) cases in the juvenile court by allowing for the transfer of jurisdiction over the child’s custody, physical care, and visitation from the juvenile court to the district court through a “Bridge Order” when certain criteria are met. Frequently, there are CINA cases in juvenile court in which no custody orders have been established between the parents, usually because the parents were never married. During the time the Juvenile Court has jurisdiction through an open CINA case, the Court can enter orders regarding custody, physical care, and visitation. However, when the juvenile case is closed, any juvenile court orders establishing custody, physical care, and visitation cease to exist. There are numerous CINA cases that languish in juvenile court in order to provide continued oversight and supervision because of the lack of District Court orders concerning custody, physical care and visitation. SF 451 allows for a direct transfer of the juvenile court orders through a Bridge Order to maintain the safety and stability of the juvenile that was established in Juvenile Court. Custody, physical care, and visitation at the time of closure in juvenile court is maintained through the Bridge Order transfer to District Court, and the CINA case can be closed. The District Court will have access to the juvenile file to better understand how and why stability was reached in that way. Also, SF 451 preserves the parents’ ability and right to present their case in District Court to have custody and visitation orders modified. Allowing for the safe case closure of these cases without needless oversight will provide judicial economy and cost savings to the Juvenile and District Associate Courts. Signed by the Governor 4/17/15. Effective 7/1/15.

HEALTH LAW HF 468 Appointment of Mental Health Advocates. Current law provides that the

appointment of a mental health advocate to represent the interests of a person involuntarily hospitalized under Code Chapter 229 is made by either the county board of supervisors in a patient’s county of residence if the county has a population of 300,000 or more, or by the chief judge of the judicial district if the patient’s county of residence has a population under 300,000. A mental health advocate is paid by the appropriate county. HF 468 amends Code Chapter 229 to eliminate the court appointment of mental health advocates and specifies that all mental health advocate appointments shall be made by the county board of supervisors. The court that involuntarily commits a person under Code Chapter 229 is required to assign to the person the advocate for the county where the patient is located. A county or region may seek reimbursement from the patient’s county of residence or from the region in which the patient’s county of residence is located. Reasonable compensation for the advocate’s services shall be based upon the duties performed by the advocate and in accordance with county personnel policies. All advocates are considered to be county employees. Provides that an advocate appointed by the court or by a county board of supervisors prior to July 1, 2015, shall be considered to be appointed by the county board of supervisors on July 1, 2015. These advocates will be compensated, at a minimum, at the advocate’s wage and benefit level in place immediately prior to July 1, 2015. Signed by the Governor 4/24/15. Effective 7/1/15.

SF 201 Findings of an Examining Physician Assistant in an Emergency Situation for a

Person Believed to be Seriously Mentally Impaired. Under current Code Section 229.22, upon delivery of a person to a facility or hospital, if the examining physician,

Page 17: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

16

physician assistant, or psychiatric advanced registered nurse practitioner finds that there is reason to believe that the person is seriously mentally impaired, and because of that impairment is likely to physically injure the themselves or others if not immediately detained, the examining physician, physician assistant, or psychiatric advanced registered nurse practitioner is required to contact the nearest available magistrate. The findings of the examining physician assistant must be approved by the physician assistant’s supervising physician before the examining physician assistant communicates with the nearest available magistrate. SF 201 eliminates the requirement that the findings of the examining physician assistant be approved by the examining physician assistant’s supervising physician before the physician assistant communicates with the nearest available magistrate in these circumstances. Signed by the Governor 4/17/15. Effective 7/1/15.

SF 335 Release of Information to Organ Procurement Organization. Provides that

preliminary reports of investigations by the medical examiner and autopsy reports for a decedent by whom an anatomical gift was made shall be released to an organ procurement organization upon the request of the organ procurement organization unless disclosure would jeopardize an investigation or pose a clear and present danger to the public safety or safety of an individual. Requires a hospital, licensed or certified health care professional, or medical examiner to release patient information to a procurement organization as part of a referral or retrospective review of the patient as a potential donor unless disclosure would jeopardize an investigation or pose a clear and present danger to the public safety or safety of an individual. Signed by the Governor 4/24/15. Effective 7/1/15.

JUDICIAL ADMINISTRATION SF 404 Certification & Regulation of Shorthand Reporters. Current law provides that a

shorthand reporter shall not engage in the profession of shorthand reporting unless the person is certified. SF 404 expands the criteria for obtaining certification: The Board of Examiners of Shorthand Reporters may issue a certificate to a person of good moral character and fitness who makes application on a form prescribed and furnished by the Board and who satisfies the education, experience, examination requirements, and rules prescribed by the Supreme Court. Specifies that the Board may consider the applicant’s past record of any felony conviction and the applicant’s past record of disciplinary action with respect to certification. Specifies that the Board may deny certification if the Board finds the applicant has committed any of the acts listed in Code Section 602.3203 or has made a false statement of material fact on the application for certification. Expands the conditions under which the Board may revoke or suspend the certification of a shorthand reporter to include noncompliance with new Code Section 602.3204 relating to transcript integrity as created in the legislation. New Code Section 602.3204 is created to prohibit a shorthand reporting services agreement from requiring a certified shorthand reporter to relinquish control of an original deposition transcript and copies of the transcript before it is certified and delivered to the custodial attorney. New Code Section 602.3205 is created to specify that a shorthand reporter’s audio recordings used solely to provide a written transcript of a court proceeding or a proceeding conducted in anticipation of use in a court proceeding are considered the shorthand reporter’s personal property and private work product. Signed by the Governor 5/1/15. Effective 7/1/15.

Page 18: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

17

LITIGATION HF 496 Military Victim Advocate Privilege. With the exception of certain circumstances, HF

496 provides that a military victim advocate is privileged from examination and is not required to give evidence in civil or criminal proceedings relating to confidential communications between a victim and the military victim advocate provided that the victim advocate has completed a military victim advocate course. For purposes of this legislation, “victim” is defined as “a person who consults a military victim advocate for the purpose of securing advice, advocacy, counseling, or assistance concerning a mental, physical, or emotional condition caused by a sexual crime committed against the person”. Signed by the Governor 4/8/15. Effective 7/1/15.

HF 570 Muncipal Tort Liability Exemption. Provides that the current municipal tort liability

exemption for claims related to the negligent design, specification, construction, or reconstruction of a public facility designed for specific recreational activities be extended to public facilities designed for any recreational activity. Extends the municipal tort liability exemption from injuries a person suffers while participating in one of the recreational activities enumerated in the current statute to injuries a person suffers while participating in any recreational activity, provided that the injury results from the normal and expected risks inherent in the recreational activity. Signed by the Governor 4/1/15. Effective 7/1/15.

SF 426 Privileged Communications Between a Health Care Provider/Health Facility and

Patient Following an Adverse Health Care Incident. Allows a health care provider, or a health care provider jointly with a health facility, to engage in an open, confidential discussion with a patient related to an adverse health care incident. Defines “adverse health care incident” as an objective and definable outcome of patient care that results in the death or serious physical injury of a patient. Defines “health care provider” as a licensed physician, licensed physician assistant, licensed podiatrist, or a licensed advanced registered nurse practitioner. Defines “patient” as a person who receives medical care from a health care provider, or if the person is a minor, deceased, or incapacitated, the person’s legal representative. Defines “health facility” as an institutional health facility as defined in Code section 135.61, licensed hospice, home health agency, certified assisted living program, clinic, or community health center, and includes any corporation, professional corporation, partnership, limited liability company, limited liability partnership, or other entity comprised of such facilities. If an adverse health care incident occurs, the bill allows a health care provider, or a health care provider jointly with a health facility, to offer to engage in an open discussion with the patient. The notice of an offer to engage in an open discussion must be sent to the patient within 180 days after the date on which the health care provider knew, or through the use of diligence should have known, of the adverse health care incident. If the patient agrees to proceed with an open discussion, the health care provider or health facility may investigate the adverse health care incident, disclose the results to the patient, and discuss steps the health care provider or health facility will take to prevent similar adverse health care incidents. The health care provider or health facility may also communicate to the patient that either the health care provider or health facility has determined that an offer of compensation is not warranted or that an offer of compensation is warranted. An offer of compensation may be conditioned upon the patient executing a release of future liability as to the adverse health care

Page 19: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

18

incident. All communications made under the Code Chapter are privileged and confidential, are not subject to discovery, subpoena, or other means of legal compulsion for release, and are not admissible in evidence in a judicial, administrative, or arbitration proceeding. Provides that a payment made under the Code Chapter is not a written claim or demand for payment, a claim that must be submitted to a licensing board under Code Section 272C.9, or a medical malpractice insurance claim that must be reported to the Commissioner of Insurance under Code Section 505.27. Signed by the Governor 4/14/15. Effective 7/1/15.

SF 462 Maintenance/Administration of Epinephrine in Schools and Other

Facilities. Permits the school district Boards of Directors and authorities in charge of an accredited nonpublic school to maintain in a secure location at each school a supply of epinephrine auto-injectors for use as provided in the bill. Permits a licensed health care professional to prescribe epinephrine auto-injectors in the name of a school district or accredited nonpublic school to be maintained for use. Allows personnel authorized to administer epinephrine to provide or administer an epinephrine auto-injector from a school’s supply to a student or other individual if such personnel reasonably and in good faith believe the student or other individual is having an anaphylactic reaction. Provides immunity from legal liability for any injury arising from the provision, administration, or assistance in the administration of an epinephrine auto-injector for the following persons, provided they have acted reasonably and in good faith: 1) Any personnel authorized to administer epinephrine who provide, administer, or assist in the administration of an epinephrine auto-injector to a student or other individual present at the school who such personnel believe to be having an anaphylactic reaction; 2) A school district or accredited nonpublic school employing the personnel; 3) The school district Board of Directors or authorities in charge of the accredited nonpublic school; 4) The prescriber of the epinephrine auto-injector. SF 462 additionally permits a food establishment, carnival, recreational camp, youth sports facility, or a sports area to maintain a supply of epinephrine auto-injectors at locations where members of the public may be present, with the same duties, powers, and immunities. Permits a student with a written statement from a licensed health care professional on file to possess and use an epinephrine auto-injector while in school, at school-sponsored activities, under the supervision of school personnel, and before or after normal school activities, such as while in before-school or after-school care on school-operated property. Requires a school district or nonpublic school to notify a student’s parent or guardian before withdrawing the privilege to use an epinephrine auto-injector. Signed by the Governor 4/24/15. Effective 7/1/15.

PROBATE & TRUST LAW HF 159 Combined Guardianship-Conservatorship Proceedings. Under current law, the

administration of a combined petition for a conservatorship and a guardianship is treated as separate proceedings with separate docket numbers. HF 159 amends current law to provide that a combined petition for a conservatorship and a guardianship is treated as one proceeding, with one docket number. While a combined petition for a conservatorship and a guardianship is administered in the same proceeding, separate reporting requirements still apply to each. Signed by the Governor 3/5/15. Effective 7/1/15.

Page 20: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

19

SF 306 Communication/Visitation Between Adult Ward and Another Person. Amends the Iowa Probate Code to provide that an adult ward under a guardianship has the right to communicate, visit or interact with other persons; however, a guardian may deny an adult ward’s communication, visitation or interaction with other persons with court approval for good cause shown. The guardian may impose reasonable time, place and manner restrictions upon the ward’s communication, visitation or interaction with other persons without court approval. Creates new Code Section 633.637A which provides that an adult ward has the right of communication, visitation, or interaction with other persons upon the adult ward’s consent. If the adult ward is unable to express consent, consent may be presumed by a guardian or a court based on a ward’s prior relationship with such person. Signed by the Governor 4/24/15. Effective 7/1/15.

REAL ESTATE & TITLE LAW SF 217 Title Guaranty Board. Amends Code Section 16.2A, concerning the Title Guaranty

Division of the Iowa Finance Authority, to allow the designee of the Executive Director of the Iowa Finance Authority to serve as Secretary of the Iowa Title Guaranty Board.

Signed by the Governor 4/8/15. Effective 7/1/15. TAX LAW SF 126 IRC Update. Updates the Iowa Code references to the Internal Revenue Code to make

federal income tax revisions enacted by Congress in 2014 applicable for Iowa income tax purposes and decouples with certain bonus depreciation provisions.

Division I- Internal Revenue Code References. Amends Code sections 422.3 and 422.32, general definition sections in the Code chapter that governs corporate and individual income tax and the franchise tax on financial institutions, to update the references to the Internal Revenue Code. Amends Code sections 15.335, 422.10, and 422.33 to update the references to the Internal Revenue Code for the state research activities credit for individuals, corporations, and corporations in economic development areas to include the federal changes to the research activities credit and the alternative simplified research activities credit. Code Section 422.9 provides individuals a deduction from net income for state sales and use taxes if the individual chose to deduct sales and use tax in lieu of state income taxes or the standard deduction for federal income tax purposes. This deduction was scheduled to expire under both federal and Iowa law for tax years beginning on or after January 1, 2014. The federal Tax Increase Prevention Act of 2014 extended the federal deduction for the 2014 tax year. Division I of SF 126 extends the Iowa deduction for the 2014 tax year. Division II- Bonus Depreciation. For purposes of Iowa income tax, this division decouples from the federal additional first-year depreciation allowance in section 168(k) of the Internal Revenue Code which was extended through 2014 by the federal Tax Increase Prevention Act of 2014. Signed by the Governor 2/17/15. Division I takes effect upon enactment and applies retroactively to January 1, 2014, for tax years beginning on or after that date. Division II takes effect upon enactment and applies retroactively to January 1, 2014, for tax years ending on or after that date.

Page 21: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

20

WORKERS’ COMPENSATION LAW HF 259 Exclusions from Workers’ Compensation Coverage. Requires the Workers’

Compensation Commissioner to maintain a list of corporate officers that reject workers’ compensation coverage or that terminate their rejection of the coverage. The list will be a public record that is open to public inspection. Provides that when a corporate officer terminates a rejection of workers’ compensation coverage by filing a notice of termination with the Workers’ Compensation Commissioner, the notice of termination restores the officer to the same status as if the rejection of coverage had not occurred. The termination of rejection is not effective as to any injury sustained or disease incurred less than one week after the notice is filed.

Requires a proprietor, limited liability company member or partner, or a partner, who does not elect workers’ compensation coverage by purchasing valid coverage that specifically includes that person, to sign a nonelection of that coverage which must be attached to the workers’ compensation or employer’s liability policy or filed with the Workers’ Compensation Commissioner. The Commissioner is required to maintain a list of persons who do not elect such coverage or that terminate that nonelection of coverage. The list will be a public record that is open to public inspection. HF 259 provides a form to indicate that the person is not electing workers’ compensation coverage. A proprietor, limited liability company member or partner, or partner, may terminate a nonelection of workers’ compensation coverage by filing a notice of termination with the Workers’ Compensation Commissioner. The notice of termination restores that person to the same status as if the nonelection of coverage had not occurred, and the person may elect to be covered by the workers’ compensation law by purchasing valid workers’ compensation insurance specifically including that person, as provided in Code section 85.1A. The election of coverage is not effective as to any injury sustained or disease incurred less than one week after the notice is filed. Signed by the Governor 4/17/15. Effective 7/1/15.

IV. BILLS OF INTEREST THAT DID NOT PASS DURING 2015 LEGISLATIVE SESSION HF 85 Abuse of Elders. Eliminates a listing of persons who are exempt from the

“confidential relationship” requirement in order to be considered as standing in a position of trust or confidence with a vulnerable elder and thereby potentially subject to an allegation of financial exploitation under the Elder Abuse Code Chapter (Chapter 235F), enacted in 2014. Provides instead that the determination of the existence of a “confidential relationship” is an issue of fact to be determined by the court based upon the totality of the circumstances. Referred to House Human Resources Committee and did not advance. The ISBA opposes HF 85.

HF 87 Financial Exploitation of Older Individuals. Establishes the crime of “financial

exploitation of an older individual”. A person commits “financial exploitation of an older individual” when the person stands in a position of trust or confidence with the older individual and knowingly and by undue influence, deception, coercion, fraud, breach of fiduciary duty, or extortion, obtains control over or otherwise uses the benefits, property, resources, belongings, or assets of the older individual. The criminal penalties range from a simple misdemeanor to a class “C” felony based on the amount of benefits, property, resources, belongings, or assets of the older individual

Page 22: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

21

involved. Referred to House Judiciary Committee & did not advance. The ISBA opposes HF 87.

HF 184/SF 109 Abuse & Financial Exploitation of Elders. Identical bills that contain the provisions of

HF 85 and HF 87 and additionally redefine “substitute petitioner” by eliminating as a potential substitute petitioner any other interested person, and instead include a person who has a demonstrated interest in the vulnerable elder. Provides that if a substitute petitioner files a petition for relief from elder abuse, the clerk of court shall provide notice to the vulnerable elder. Also authorizes the court, in its discretion, to limit the number of petitions filed and the timeframe within which multiple filings of petitions may be made involving the same vulnerable elder. HF 184 was referred to House Judiciary Committee, and SF 109 was referred to Senate Judiciary Committee. Neither bill advanced. The ISBA opposes HF 184 and SF 109.

HF 328 Elder Abuse, Financial Exploitation of Elders, and the Development of an Elder

Abuse Prevention System. Similar to HF 184 and SF 109, but additionally directs the Department on Aging, Department of Human Services, Department of Inspections and Appeals, Department of Public Health, the Office of Long-Term Care Ombudsman, and the Office of the Attorney General to collaborate to develop draft legislation to develop an elder abuse prevention system for the state. Referred to House Judiciary Committee and did not advance. The ISBA opposes HF 328.

HF 161 Authority of Cities to Regulate & Restrict Occupancy of Residential Rental

Property. Provides that a city shall not, after January 1, 2016, adopt or enforce any regulation or restriction related to the occupancy of residential rental property based upon the familial or nonfamilial relationships of occupants. House passed on a 73-26 vote. Referred to Senate Judiciary Committee and did not advance. The ISBA took a monitor position on HF 161.

SF 458 Authority of Cities to Regulate & Restrict Occupancy of Residential Rental

Property. Provides that a city council may adopt and enforce an ordinance to regulate and restrict use or occupancy of property based upon familial and nonfamilial status in accordance with Code Chapter 414. Provides that such an adopted ordinance shall require the Board of Adjustment to make a special exception to the ordinance if the owner of an owner-occupied property petitions for a special exception and if making the special exception would not be contrary to the public interest. Provides that the ordinance must require that the Board of Adjustment grant a variance from the terms of the ordinance if the owner of an owner-occupied property makes an appeal for such a variance and if granting the variance would not be contrary to the public interest. Approved by Senate State Government Committee, but did not advance. The ISBA took a monitor position on SF 458.

HF 194 Statute-of-Repose Periods for Improvements to Real Property. Under current law, a case arising out of the unsafe or defective condition of an improvement to real property, whether residential or nonresidential construction, is subject to a 15-year statute-of-repose. Such cases are based upon an injury to property or an injury or death of a person. HF 194 reduces the period of the statute-of-repose for cases relating to nonresidential construction from 15 years to 10 years. The statute-of-repose period for cases relating to residential construction remains at 15 years. The bill defines “residential construction” by cross reference to the definition of the term contained in

Page 23: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

22

Code Chapter 572, which relates to mechanic’s liens. Code section 572.1 defines “residential construction” as construction on single-family or two-family dwellings occupied or used, or intended to be occupied or used, primarily for residential purposes. The bill defines “nonresidential construction” as any construction that is not residential construction. House passed on a 60-39 vote. Referred to Senate Judiciary Committee and did not advance. The ISBA opposes HF 194.

HF 260 Nomination & Qualifications of District Judges. Separates the nomination process and qualifications of a district judge from the nomination process and qualifications of a Court of Appeals judge or Supreme Court justice and creates new Code subsection 46.14(1A) for the district judge application and nomination process. Requires a district judge appointee to be a resident of the judicial district to which the appointment is made before assuming office. If the judicial district is divided into judicial election districts, HF 260 specifies that the appointee shall be a resident of the judicial election district to which the appointment is made before commencing judicial duties. House passed on a 59-40 vote. Referred to Senate Judiciary Committee and did not advance. The ISBA opposes HF 260.

HF 533 Failure to Wear Safety Belt. Current law provides that evidence of failure to wear a

motor vehicle safety belt or safety harness, as required by Code section 321.445(2), may be used to mitigate damages in a civil case upon a showing of substantial evidence that the failure to wear a seat belt contributed to the injuries claimed. Current law provides that the maximum amount which damages may be reduced for failure to wear a motor vehicle safety belt or safety harness is 5% of the damages awarded. HF 533 eliminates the statutory 5% limitation on such damages reduction for persons who are 16 years or older and for persons who have an instruction permit under Code Section 321.180B(1) or a special minors’ license under Code Section 321.194. As a result, a jury may decide to reduce damages awarded by more than 5% for failure to wear a motor vehicle safety belt or safety harness. Current law provides that evidence of a failure to use a child restraint system, safety belts, or safety harnesses for persons under the age of 18, as required by Code Section 321.446(6), does not constitute negligence nor is such evidence admissible in a civil action. HF 533 eliminates the prohibition on introducing such evidence for persons who are 16 years of age or older, for persons who have an instruction permit under Code Section 321.180B(1) or a special minors’ license under Code Section 321.194. Approved by House Judiciary Committee, but did not advance. The ISBA opposes HF 533.

SF 184 Jurisdictional Changes to Small Claims Court Cases. Current law provides that a

small claims court case shall not involve damages or value in excess of $5,000. SF 184 increases this jurisdictional limit to $10,000 for small claims court cases commenced on or after July 1, 2015. Provides that the jurisdictional amount shall revert to $5,000 if a court finds the $10,000 amount unconstitutional. By increasing the jurisdictional amount for small claims court, the bill expands the jurisdiction of a magistrate or district associate judge to hear and assess judgment on certain actions, including county and city violations. Referred to Senate Judiciary Committee and did not advance. The ISBA opposes SF 184.

SF 466 Authorization Procedures for County Projects involving Real Property. Generally, indebtedness incurred for an essential county purpose does not require approval of the

Page 24: Legislative Update - c.ymcdn.comc.ymcdn.com/.../Legislative_Update_Rob_Hogg.pdf · 2015 LEGISLATIVE UPDATE I. LEGISLATORS AND COMMITTEE INFORMATION ... Tom Courtney, Chair Julian

23

voters. SF 466 increases the threshold amounts that determine whether a project can be undertaken using the procedures for essential county purpose bonds when the project involves a lease contract or lease-purchase contract. Amends the definition of “essential county purpose” relating to the issuance of bonds for public buildings by increasing the threshold amounts on the principal amount of the bonds if at least 25 percent of the public building and grounds will be used or occupied by the Judicial Branch in a county with a population of 200,000 or less, or when at least 50 percent of the public building and grounds will be used or occupied by the Judicial Branch in a county with a population of more than 200,000. Under current law, the threshold amounts are linked to the cost of the project. The bill links the threshold amounts to the principal amount of the bonds. Senate passed on a 36-14 vote. Referred to House Local Government Committee and did not advance. The ISBA supports SF 466.

V. PENDING BILL OF INTEREST SF 497 Justice System Appropriations/ Indigent Defense Funding. SF 497 makes

appropriations from the General Fund of the State to the Office of the State Public Defender, Departments of Justice, Corrections, Public Defense, Public Safety, the Iowa Law Enforcement Academy, Office of Consumer Advocate, Board of Parole, and Iowa State Civil Rights Commission. At present, the House and Senate have passed different versions of the Justice System Appropriations bill, thus, SF 497 has been sent to conference committee. The House version of the bill contains language in response to the recent Iowa Supreme Court decision in State v. Young, No. 13-0983 (Iowa 2015). This language reduces court appointed attorney fees to $25 per hour for all simple misdemeanors and simple misdemeanors punishable as scheduled violations. The ISBA is working to remove this language from the bill.