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Legislature Adjourns 2020 Session of the Legislatu

Archived Industry News:Legislature Adjourns 2020 Session of the Legislature

Last Updated: 6/18/2020 4:16 PM

Legislature Adjourns 2020 Session of the Legislature

The Iowa Legislature finally adjourned its 2020 session on Sunday. When the Legislature suspended action in mid-March due to the pandemic, it was working on significant tax reform measures. While, most of those measures were abandoned when the Legislature returned for this abbreviated session, the IBA did manage to pass or help pass some meaningful legislative changes for the industry, including:

  • SF 2137 (ancient mortgages) — Current law provides a mortgage 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. This bill does not change any of these time frames but allows that the signing of the original mortgage authorizes the lender to file the extension on behalf of the borrower.
  • SF 2198 (open-end line of credit account notices) — Federal Regulations have timing requirements regarding changes in terms to certain open-end accounts that do not match the timing requirements in Iowa Code. This bill conforms Iowa law to federal law regarding consumer notice requirements for certain accounts.
  • SF 2338 (COVID-19 liability protection) — A bill that protects employers and organizations, including banks, from potential litigation relating to COVID-19.
  • HF 2641 (omnibus tax bill) — While this bill was scaled back drastically from the tax bills that were discussed prior to the suspension of the legislature, this bill did include provisions the banking industry sought. It included language that will help direct sales tax policy for the Iowa Department of Revenue as it relates to computers and computer peripherals. Specifically, the language clarifies that a peripheral includes such items that allow for the storage of data or information by an insurance company, financial institution or commercial enterprise. The IBA participated in a task force during the interim with the Department in an effort to ensure that ATMs remain sales tax exempt. Additionally, a provision was included that ensures loan forgiveness for Paycheck Protection Program loans will be tax exempt.

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