Recently, Iowa’s General Assembly enacted amendments and revisions to specific code provisions relating to public funds, state banks, debt management services, the Uniform Money Services Act, currency exchanges, delayed deposits, mortgage licensing, professional engineers and land surveyors, real estate brokers and salespersons, appraisers, and architects. The changes focus on licensing requirements, education and examination of various license applicants, and the powers of the Board of Appraisers.

Section 1: Prior to the revisions reflected in the 2013 Code, a depository was prohibited from paying interest to a public officer on demand deposit, but now may pay interest on deposits of public funds. A public officer may now take or receive interest on deposits of public funds.

Section 2 strikes out language affecting State Banks’ treatment of borrowing groups and the 25% of aggregate capital limitation placed on extensions of credit to substantially interrelated borrowers. Prior to the deletion, state banks were to treat interrelated borrowers as a borrower group if the interests of the “group”-or more than one borrower-are so interrelated that they could not exist without one another, including having a common source of repayment or holding a significant interest in the other’s business.

Section 3: Section 533A.2 of the 2013 Code refers to debt management licensees and entities. The superintendent may authorize applicants and licensees to hold a license with a nationwide licensing system and to pay the corresponding fees. The superintendent may, at his or her discretion, create new requirements as necessary, including subjecting applicants, licensees, or either’s supervisors to fingerprinting and criminal history checks. In order to reduce the points of contacts with the FBI, the superintendent may use the nationwide licensing system as a channeling agent for handling the flow of information to the US Department of Justice or other governmental agency.

Section 4 and 5: License as a debt management servicer expires on December 31st following its issuance. Each licensee must apply for renewal of his or her license annually on or before December 1st, and the superintendent may assess a ten dollar a day late fee for applications submitted beyond the deadline having been accepted.

Section 6: The superintendent may receive documents and materials, including confidential or privileged information, in connection with license examinations and reporting, and such information will maintain its confidential or privileged status within its source jurisdiction. Applicants and licensees must be notified before transmitting such information to the superintendent or acceptance by the superintendent.

Section 7: Section 533C of the 2013 Code is Iowa’s Uniform Money Services Act and subsection 2 refers specifically to money transmission licenses. A nonrefundable application fee $1,000 and a license fee must accompany an application for a money transmission license. The license fee shall be $500 plus $10 for each location in the state where business is conducted, but shall not exceed $5000. If there are no business operations within the state, the superintendent shall set the license fee. The initial license fee is an annual fee, which shall be prorated, but the fee must be refunded if the application is denied.

Section 8: The superintended may establish new rules relating to money transmission services including those requiring applicants, licensees, and their managers to submit to fingerprinting and criminal history checks, and may use the nationwide licensing system as an information channeling agent to government agencies.

Section 9: Money Transmission Licensees are subject to an annual renewal fee of $500 plus $10 for each business location within the state, not to exceed $5000, and if the licensee does not file a renewal report or pay the fee by December 1st, absent an extension of time, the superintendent may assess a $100 late fee for each day.

Section 10: Section 533C.302 of the 2013 Code refers to a currency exchange license, which carries the nonrefundable $1000 application fee. The license fee shall be $500 plus $100 for each business location within the state, not to exceed $2000, and must be refunded if the application is denied. The initial license fee is considered biennial, expiring December 31st of an odd-ending year following issuance, and must be prorated.

Section 11 and 12: The superintendent may use the nationwide licensing system as a channeling agent and may require applicants, licensees, and their supervisors to submit to fingerprinting and criminal history checks. Licensees are subject to a biennial renewal fee following the same form and structure as the initial license fee that must be paid on or before December 1st, or the superintendent may assess a $100 per day late fee.

Section 13: The superintendent may receive documents and materials, regardless of confidentiality or privilege, when conducting its examinations and reporting, and such information received will maintain its confidential or privileged status within its source jurisdiction.

Section 14: The revisions strike out the old savings and transitional provisions, replacing them with an applicability provision, which applies the chapter to money services on or after October, 2003.

Section 15 and 16: Section 533D.3 of the 2013 Code refers to delayed deposit services. A delayed deposit service license must be conspicuously posted at the licensee’s place of business, and will remain in effect until the next January 1st. The license must be annually renewed by December 1st for a $250 renewal fee, and the superintendent may assess a $10 a day late fee.

Section 17 and 18: The superintendent may require delayed deposits service licensees be licensed through a nationwide licensing system, may require fingerprinting and criminal checks, and may receive confidential or privileged information without the information losing such status within its source jurisdiction.

Section 19: Under the Mortgage Licensing Act confidentiality provisions all documents and other writings relating to the supervision of licensees are not public nor subject to disclosure under chapter 22. Such information may be shared with any state or federal regulatory official with mortgage industry oversight authority without loss of protections.

Section 20 and 21: Under the general licensing requirements of professional engineers and land surveyors one must first obtain a certificate as an engineer intern, which requires successfully passing an examination in fundamental engineering subjects. Then the applicant must successfully pass an examination designed to determine the proficiency and qualifications of engineers, which may only be taken once the applicant shows the necessary practical experience in engineering. Land surveyors, similarly, must pass a fundamental subjects test as well as proficiency and qualifications test.

Section 22: Examinations for licensure as a professional engineer or land surveyor must be given as often as necessary, but at least once per year; scope and method of examination to be determined by the Board. Any applicant that fails the exam once may immediately apply for the next examination; however, should the applicant fail again they may only retake the exam at the discretion of the Board.

Section 23: Applicants for licensure as a real estate broker or salesperson must pass an examination administered by the commission. Real estate brokers must be tested more exactly than a salesperson and are subject to a higher standard of real estate knowledge and understanding. The same considerations for an examination failure apply as in the section above.

Section 24: Section 543D.4 of the 2013 Code establishes the Iowa Real Estate Appraiser Board, an examining board within the banking division of the department of commerce, consisting of seven members-five certified appraisers and two public members. Public members of the Board may not engage in real estate appraising, but certified appraiser members of the Board must actively engage in practice as a certified real estate appraiser, having done so for at least five years preceding the appointment, with the last two years in Iowa. Any vacancies shall be filled by appointment by the governor, but no member may serve more than three terms, providing that appointments to fill an unexpired term shall not constitute a complete term.

Section 25 and 26: Powers of the Board. The Board adopts rules establishing uniform standards and certification requirements, and may consider any standards required for or recommended by the appraisal foundation or relevant federal agency. The uniform standards must require compliance with federal law and appraisal standards adopted by federal authorities, develop principles for the scope and practice for certified appraisers, and require compliance with the uniform standards of professional appraisal practice in all appraisal assignments. The Board shall require demonstration of an applicant’s working knowledge of all appraiser certification requirements, principles, and practices, as no original certification may be issued to any person that has not yet passed a Board examination. The Board must maintain a registry of names, certificate numbers, and registration numbers of all certified appraisers.

Section 27: Certified appraisers are subject to a continuing education requirement that mandates completion, before June 30th, of a number of instructional hours in courses or seminars that have been preapproved by the Board.

Section 28: The Board may require criminal background checks, fingerprinting, or collection of criminal history data regarding any applicant or licensee. The Board must inform applicants and licensees of the any criminal history check and obtain a signed waiver. Any information gathered pursuant to such inquiries is confidential, but may be used by the Board in a certificate denial or disciplinary action.

Section 29: The Board also adopts rules to govern the practice of architecture to protect the public from misleading advertising and unlicensed practice of architecture.

 

 

Louis Danastorg, J.D., M.B.A. is Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Vanderbilt University and earned his Juris Doctor and Masters of Business Administration from Suffolk University. He can be reached at Louis@bankersadvisory.com