Senate
Study
Bill
1168
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LOCAL
GOVERNMENT
BILL
BY
CHAIRPERSON
SHIPLEY)
A
BILL
FOR
An
Act
relating
to
demolition
reserves
on
fire
and
casualty
1
claims
on
real
property
located
within
a
city
and
requesting
2
an
interim
study
on
such
reserves.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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S.F.
_____
Section
1.
Section
515.139,
subsection
1,
unnumbered
1
paragraph
1,
Code
2021,
is
amended
to
read
as
follows:
2
An
insurer
shall
reserve
ten
twenty
thousand
dollars
or
ten
3
twenty
percent,
whichever
amount
is
greater,
of
the
payment
for
4
damages
to
the
property
excluding
personal
property
on
which
5
the
insurer
has
issued
a
fire
and
casualty
insurance
policy
as
6
demolition
cost
reserve
if
the
following
are
applicable:
7
Sec.
2.
DEMOLITION
RESERVE
ON
FIRE
AND
CASUALTY
CLAIMS
8
ON
PROPERTY
——
STUDY
REQUEST.
The
legislative
council
is
9
requested
to
establish
an
interim
study
committee
for
the
10
purpose
of
reviewing
section
515.139
to
consider
whether
the
11
statute
adequately
meets
the
needs
of
cities
of
various
sizes
12
and
geographic
locations
within
the
state,
and
reporting
its
13
findings
and
recommendations,
if
any,
to
the
general
assembly.
14
EXPLANATION
15
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
16
the
explanation’s
substance
by
the
members
of
the
general
assembly.
17
This
bill
provides
that
an
insurer
that
has
issued
a
fire
18
and
casualty
insurance
policy
for
the
payment
of
damages
to
19
real
property
located
in
a
city
must
reserve
an
amount
equal
to
20
$20,000
or
20
percent
of
the
payment
for
damages,
whichever
is
21
greater,
as
a
demolition
cost
reserve.
Currently,
the
required
22
amount
is
$10,000
or
10
percent
of
the
payment,
whichever
is
23
greater.
24
A
city
can
claim
proceeds
from
the
reserve
if
the
city
incurs
25
costs
to
demolish
a
building
where
the
damage
to
the
property
26
renders
it
uninhabitable
or
unfit
for
its
purpose,
without
27
repair,
and
proof
of
loss
indicates
that
damage
to
the
insured
28
structure
or
building
exceeds
75
percent
of
the
face
value
of
29
the
policy
covering
the
building
or
structure.
30
The
bill
also
includes
a
request
that
the
legislative
31
council
establish
an
interim
study
committee
for
the
purpose
of
32
reviewing
the
demolition
reserve
statute
to
consider
whether
33
the
statute
adequately
meets
the
needs
of
cities
of
various
34
sizes
and
geographic
locations
within
the
state.
35
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