Volume 27, Issue 10 -May 9, 2008

Guest Column

IBA 2008 Top 10 List of State Legislative Accomplishments

Sharon Presnall
Senior Vice President and Lobbyist, Iowa Bankers Association

The Iowa Bankers Association wrestled with a number of difficult issues this session in light of all the negative media surrounding the mortgage industry and economy. But when the gavel fell in the early morning hours of April 26, the industry was successful in passing our top priorities and defeating or amending in a satisfactory way all the issues we opposed. The following is a list of the Association’s top 10 legislative accomplishments for 2008. A complete summary of industry issues, along with any necessary compliance guidance, will be available on the IBA Web site at www.iowabankers.com following action by the Governor.

Data Security – Passed legislation requiring retailers to notify customers in the event of a data breach. Under the new law, retailers will be subject to similar requirements that financial institutions comply with under GLB.
Mortgage Brokers – Passed legislation providing additional statutory authority for the Division of Banking to regularly audit brokers, provides statutory sanctions for noncompliance, defines brokers as a “lender” for purposes of allowable fees, and doubles their bonding requirement.
College 529 Savings Plans – Passed legislation preventing the Iowa Department of Revenue from assessing inheritance tax on students’ 529 College Savings Plans (both in-state and out-of-state purchased plans).
Expansion of Credit Union Powers – Prevented legislation granting state chartered credit unions a “self-executing” wild card which would, without a vote of the Iowa Legislature, give them all the powers Congress grants a federal credit union in addition to all the powers they have as a state charter.
Private Cause of Action – Prevented passage of an Iowa Attorney General proposal allowing individuals a private cause of action to sue business under the Consumer Fraud Act – which has a lower intent standard than other consumer statutes.
Jurisdictional Limit of the Iowa Consumer Credit Code – Prevented passage of legislation offered by the Iowa Attorney General that would have increased the jurisdictional limit of the Iowa Consumer Credit Code from $25,000 to $75,000.
Fee to Record a Mortgage – Prevented passage of legislation offered by the Iowa Attorney General that would have imposed a $5 fee on every recorded mortgage to be put in a fund the Attorney General could use to prosecute lenders.
Gift Cards – Prevented passage of legislation offered by the Iowa Treasurer of State that would have negatively impacted banks’ ability to issue “open system” prepaid gift cards.
Student Loan Bill – Amended a proposed student lending bill that would have negatively impacted the ability of lenders to provide, either directly or indirectly, loans to students.
Combined Reporting – Prevented passage of legislation offered by the Governor that would have required combined reporting of income for corporations doing business in Iowa.