SF 2200 – Business Corporations Act Amendments
SF 2296 – Restoration of Competency Treatment Costs
SF 2297 – Transmission of contagious or Infectious Diseases
SF 2310 – Underage Possession or Consumption of Alcohol – “Social Host” bill
SF 2311 – Human Trafficking and Prostitution
SF 2312 – Terms, condition, Covenants Relating to Housing Cooperatives and Horizontal Property Regimes
SF 2313 – Hiring and Removal of District Court Clerks
SF 2315 – Definition of Use Restrictions Relating to Real Property
FLOOR ACTION:
SF 2200 amends the Iowa Business Corporations Act. It removes the 10-year limit on the duration of voting trust agreements and shareholder agreements. A voting trust is a device by which one or more shareholders retain ownership of the shares, but transfer voting rights to one or more trustees. The Senate adopted an amendment that clarifies that a corporation may fulfill the financial statement delivery requirement (to shareholders) not only by obtaining shareholder consent for e-mail delivery but also by notifying the shareholder that the financial statements are available on the Internet without charge and providing the shareholder with the instructions for access. In addition, the amendment makes it clear that certain regulated corporations (generally financial institutions) may fulfill their obligations to deliver financial statements by preparing and making their financial statements available as required by applicable regulations. Finally, the amendment restores the requirements of prior law (pre January 1, 2014) for corporations with fewer than 100 shareholders and for certain cooperatives. Financial statements are only required to be sent to shareholders who request a copy. [3/3: 48-0 (Ernst, Feenstra absent)]
SF 2296 clarifies that the State will pay for the costs of the treatment when a criminal defendant is ordered into the custody of the Department of Corrections or the Department of Human Services for treatment to restore the defendant to competency in order to stand trial. Currently, there is disagreement about who pays these costs. In some cases, counties have been paying and in other cases, the state has paid. [3/3: 48-0 (Ernst, Feenstra absent)]
SF 2297 creates the Contagious or Infectious Disease Transmission Act. Contagious or infectious disease means hepatitis in any form, meningococcal disease, AIDS or HIV, or tuberculosis. The bill establishes four offenses relating to intentionally or recklessly exposing an uninfected person to one of these diseases. Under the bill:
• It is a class “B” felony when a person, knowing they are infected with a contagious or infectious disease, exposes an uninfected person to that disease with the intent that they contract the disease and the uninfected person does contract the disease.
• It is a class “D” felony when a person, knowing they are infected with a contagious or infectious disease, exposes an uninfected person to the disease, but the uninfected person does not contract the disease. It is a class “D” felony when a person, knowing they are infected with a contagious or infectious disease, exposes an uninfected person with reckless disregard as to whether they contract the disease and the uninfected persons becomes infected.
• It is a serious misdemeanor to expose an uninfected person to a contagious or infectious disease with a reckless disregard as to whether they contract the disease, but the conduct does not result in the uninfected person becoming infected. In the bill, “exposes” is defined as “engaging in conduct that poses a substantial risk of transmission.”
Those convicted of transmitting a contagious or infectious disease will not be placed on the sex offender registry, and the bill retroactively requires the Department of Public Safety to expunge the registration of a person who was required to register on the sex offender registry as a result of a conviction under 709C.1 (1(a), the current Code section relating to Criminal Transmission of HIV. The bill repeals Code Chapter 709C – Criminal Transmission of human immunodeficiency virus. [2/27: 48-0 (Ernst, Houser absent)]
SF 2310 is commonly referred to as the “social host” bill. The bill provides that a person who has control over property that is not licensed to sell alcoholic beverages commits a simple misdemeanor if they knowingly permit others who are under the legal drinking age to consume or possess alcoholic beverages on the property. A first time violation is punishable by a fine of $200. Second and subsequent offenses are punishable by a fine of $500. The bill also prohibits the “consumption” of alcohol by those under the legal drinking age. Current specific Code sections prohibit the purchase, attempt to purchase, possession or control of alcoholic beverages by certain underage persons, but not the “consumption.” [3/3: 48-0 (Ernst, Feenstra absent)]
SF 2311 imposes a new criminal surcharge of $1,000 on those convicted of purchasing or offering to purchase the services of a prostitute, human trafficker, pimp or panderer. Revenue from the surcharge will be used to create the Human Trafficking Victim Fund, which will be administered by the Attorney General’s office. The fund will be used for grants to programs that provide services and support to victims of human trafficking, as well as public outreach and human trafficking awareness programs. The sections of the bill dealing with the surcharge take effect on January 1, 2015. The bill clarifies that methods of enticing a minor can include almost any method of communication, including mail, telephone, Internet, social media and text messages. It specifies that if a person under the age of 18 offers to sell or sells his or her services as a partner in a sex act, the county attorney may refer the child to the Department of Human Services for the possible filing of a child in need of assistance petition rather than filing prostitution charges against the child. The bill extends the statute of limitations for sexual exploitation of a minor from three to 10 years. The Iowa Law Enforcement Academy is required to include in its annual report to the Legislature information regarding resources devoted to the training, staffing and investigation of human trafficking cases. Under this legislation, the Iowa Attorney General is authorized to apply for an order to intercept communications relating to felony human trafficking. Current law only allows communication interception for investigations of specific crimes, not including human trafficking. [2/27: 48-0 (Ernst, Houser absent)]
SF 2312 clarifies that all the terms, conditions, covenants and provisions of documents creating and regulating a multiple housing cooperative (Chapter 499A) or a horizontal property regime (condominiums (499B)) will continue and remain in full force and effect for as long as the cooperative or horizontal property regime exists, unless the terms, conditions, covenants and any provisions of the documents creating and regulating the cooperative or horizontal property regime are amended pursuant to the respective Code Chapters. [2/27: 48-0 (Ernst, House absent)]
SF 2313 establishes that the district judges of a judicial election district can appoint clerks of court by majority vote of the judges, which is current law. However, the bill changes the procedure for the removal of clerks of court. Under this legislation, the chief judge, after consultation with the district judges of the judicial election district, will be able to remove a clerk from office for cause. Current law requires a majority vote of the district judges in the judicial election district in order to remove a clerk for cause. [2/27: 48-0 (Ernst, House absent)]
SF 2315 clarifies “use restrictions” relating to limitations or prohibitions on the rights of a landowner to make use of their real property. Examples of use restrictions include prohibitions on commercial uses, rental use, parking and storage of recreational vehicles, and building dimensions and colors. A use restriction is not an easement, which is an affirmative right granted to a person to use land in the possession of another person. Under Iowa law, Code Section 614.24, a use restriction in a deed, conveyance, contract or will extends for 21 years, and in order for the use restriction to remain after the 21 year period, the claimant of the restriction must file a verified claim within the initial 21 year period with the county recorder in the county where the real estate is located. [2/27: 48-0 (Ernst, House absent)]