HF 2634

House
File
2634
-
Enrolled
House
File
2634
AN
ACT
RELATING
TO
PRENEED
SELLERS,
SALES
AGENTS
AND
SALES
AGENT
APPLICANTS,
AND
GOVERNMENT
CEMETERIES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
22.7,
subsection
58,
Code
2026,
is
amended
to
read
as
follows:
58.
Information
filed
with
the
commissioner
of
insurance
pursuant
to
sections
523A.204
,
523A.205
,
523A.206
,
523A.207
,
523A.401
,
523A.502A
,
and
523A.803
.
Sec.
2.
Section
523A.102,
subsection
7,
Code
2026,
is
amended
by
striking
the
subsection.
Sec.
3.
Section
523A.201,
subsection
8,
Code
2026,
is
amended
to
read
as
follows:
8.
Interest
or
income
earned
on
amounts
deposited
in
trust
shall
remain
in
trust
under
the
same
terms
and
conditions
as
payments
made
under
the
purchase
agreement,
except
that
a
seller
may
withdraw
so
much
of
the
interest
or
income
as
represents
the
difference
between
the
amount
needed
to
adjust
the
trust
funds
for
inflation
as
set
by
the
commissioner
based
on
the
most
recently
released
consumer
price
index
for
all
urban
consumers
published
by
the
United
States
department
of
labor,
bureau
of
labor
statistics,
and
the
interest
or
income
earned
during
the
immediately
preceding
year
not
to
exceed
fifty
percent
of
the
total
interest
or
income
on
a
calendar-year
basis.
The
early
Early
withdrawal
of
interest
or
House
File
2634,
p.
2
income
under
this
provision
does
subsection
shall
not
affect
the
purchaser’s
right
to
a
credit
of
such
interest
or
income
in
the
event
of
a
nonguaranteed
price
agreement,
cancellation,
or
nonperformance
by
such
a
the
seller.
Sec.
4.
Section
523A.206,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
The
commissioner
may
conduct
an
examination
under
this
chapter
of
any
seller
as
often
as
the
commissioner
deems
appropriate.
If
a
seller
has
a
trust
arrangement,
the
commissioner
shall
conduct
an
examination
of
such
seller
doing
business
in
this
state
not
less
than
once
every
five
years
unless
the
seller
has
provided
to
the
commissioner,
on
an
annual
basis,
a
certified
copy
of
an
audit
conducted
by
an
independent
certified
public
accountant
verifying
compliance
with
this
chapter
.
The
commissioner
may
require
a
seller
to
provide
a
certified
copy
of
an
audit
of
a
the
seller
,
or
other
person
conducted
by
a
an
independent
certified
public
accountant
to
verify
compliance
with
the
requirements
of
this
chapter
,
including
rules
adopted
and
orders
issued
pursuant
to
this
chapter
.
Sec.
5.
Section
523A.502,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
a.
A
person
shall
not
advertise,
sell,
promote,
or
offer
to
furnish
cemetery
merchandise,
funeral
merchandise,
funeral
services,
or
a
combination
thereof
when
performance
or
delivery
may
be
more
than
one
hundred
twenty
days
following
initial
payment
on
the
account
unless
the
person
has
a
sales
license
and
is
a
sales
agent
of
a
person
holding
a
preneed
seller’s
license.
The
b.
A
preneed
seller
licensee
is
liable
for
the
acts
of
its
the
licensee’s
sales
agents
performed
in
advertising,
selling,
promoting,
or
offering
to
furnish,
upon
the
future
death
of
a
person
named
or
implied
in
a
purchase
agreement,
cemetery
merchandise,
funeral
merchandise,
funeral
services,
or
a
combination
thereof.
c.
(1)
Prior
to
being
issued
a
sales
license,
an
applicant
for
a
sales
license
shall
be
designated
by
at
least
one
preneed
seller
to
sell,
negotiate,
or
solicit
purchase
agreements
on
behalf
of
the
preneed
seller.
At
the
time
an
individual
House
File
2634,
p.
3
submits
an
application
for
a
sales
license,
the
preneed
seller
shall
file,
in
a
format
approved
by
the
commissioner,
documentation
of
the
designation
of
the
applicant
to
sell,
negotiate,
or
solicit
purchase
agreements
on
behalf
of
the
preneed
seller.
(2)
A
sales
license
shall
not
be
issued
to
a
sales
license
applicant
until
the
applicant
has
met
all
licensure
requirements
of
this
chapter.
(3)
The
preneed
seller
shall
disclose
to
the
commissioner
any
changes
made
to
the
designation
for
a
sales
agent
to
sell,
negotiate,
or
solicit
preneed
contracts
on
the
preneed
seller’s
behalf
within
thirty
calendar
days
of
the
date
of
the
change
in
designation.
d.
The
license
of
a
sales
agent
shall
not
be
effective
during
any
time
period
during
which
the
sales
agent
is
not
employed
by
or
associated
with
a
preneed
seller
licensed
under
this
chapter.
Sec.
6.
Section
523A.502,
subsection
5,
Code
2026,
is
amended
to
read
as
follows:
5.
A
sales
license
shall
expire
annually
on
April
30.
If
a
sales
agent
has
filed
an
annual
report
pursuant
to
section
523A.502A,
subsection
1
,
and
has
fulfilled
the
continuing
education
requirements
pursuant
to
subsection
6
and
has
paid
the
required
renewal
fee
,
the
commissioner
shall
renew
the
sales
agent’s
sales
license
until
April
30
of
the
following
year
.
Sec.
7.
Section
523A.601,
subsection
1,
paragraph
i,
Code
2026,
is
amended
to
read
as
follows:
i.
Include
an
explanation
of
regulatory
oversight
by
the
insurance
division
in
twelve
point
boldface
type,
in
substantially
the
following
language:
This
agreement
is
subject
to
rules
administered
by
the
Iowa
insurance
division.
You
may
call
contact
the
Iowa
insurance
division
with
inquiries
or
complaints
at
(telephone
number).
Written
inquiries
or
complaints
should
be
mailed
to
the
Iowa
securities
and
regulated
industries
bureau,
(street
address),
(city),
Iowa
(zip
code)
iid.iowa.gov
.
Sec.
8.
Section
523A.602,
subsection
2,
paragraph
b,
subparagraph
(1),
Code
2026,
is
amended
to
read
as
follows:
House
File
2634,
p.
4
(1)
If
a
purchase
agreement
is
canceled,
a
purchaser
requests
a
transfer
of
the
trust
assets
upon
cancellation
of
a
purchase
agreement,
or
another
seller
provides
merchandise
or
services
designated
in
a
purchase
agreement,
the
seller
shall
refund
or
transfer
within
thirty
days
of
receiving
a
written
demand
no
less
than
the
purchase
price
of
the
applicable
cemetery
merchandise,
funeral
merchandise,
and
funeral
services
adjusted
for
inflation,
using
the
most
recently
released
consumer
price
index
amounts
announced
by
the
commissioner
annually
for
all
urban
consumers
published
by
the
United
States
department
of
labor,
bureau
of
labor
statistics
,
less
any
actual
expenses
incurred
by
the
seller
pursuant
to
the
purchase
agreement
as
set
forth
in
the
purchase
agreement
under
section
523A.601,
subsection
1
,
paragraph
“f”
.
The
amount
of
the
actual
expenses
deducted
by
the
seller
shall
not
exceed
ten
percent
of
the
purchase
price
of
the
applicable
cemetery
merchandise,
funeral
merchandise,
and
funeral
services.
The
seller
may
also
deduct
the
value
of
the
cemetery
merchandise,
funeral
merchandise,
and
funeral
services
already
received
by,
delivered
to,
or
warehoused
for
the
purchaser.
Sec.
9.
Section
523A.602,
subsection
2,
paragraph
c,
Code
2026,
is
amended
to
read
as
follows:
c.
A
purchase
agreement
must
include
a
statement
that
the
purchaser
is
entitled
to
a
refund
of
the
purchase
price
of
the
applicable
funeral
merchandise
adjusted
for
inflation,
using
the
most
recently
released
consumer
price
index
amounts
announced
by
the
commissioner
annually
for
all
urban
consumers
published
by
the
United
States
department
of
labor,
bureau
of
labor
statistics,
for
any
item
of
funeral
merchandise
that
cannot
be
delivered
to
the
location
specified
in
the
purchase
agreement
within
forty-eight
hours
of
notice
of
the
individual’s
death,
unless
the
delay
is
caused
by
weather
conditions
or
a
natural
disaster.
The
seller
must
return
such
refund
to
the
purchaser
within
thirty
days
of
receiving
the
written
demand.
Sec.
10.
Section
523A.807,
subsection
3,
unnumbered
paragraph
1,
Code
2026,
is
amended
to
read
as
follows:
If
the
commissioner
finds
that
a
person
has
violated
section
523A.201
,
523A.202
,
523A.203
,
523A.204
,
523A.207
,
House
File
2634,
p.
5
523A.401
,
523A.402
,
523A.403
,
523A.404
,
523A.405
,
523A.501
,
523A.502
,
523A.502A
,
523A.505
,
or
523A.605
,
or
any
rule
adopted
pursuant
thereto,
the
commissioner
may
order
any
or
all
of
the
following:
Sec.
11.
Section
523I.102,
subsections
9,
16,
and
45,
Code
2026,
are
amended
by
striking
the
subsections.
Sec.
12.
Section
523I.102,
Code
2026,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
13A.
“Government
cemetery”
means
a
cemetery
that
is
owned,
operated,
or
controlled
by
a
governmental
subdivision.
NEW
SUBSECTION
.
13B.
“Governmental
subdivision”
means
a
city,
county,
or
township.
Sec.
13.
Section
523I.102,
subsection
37,
Code
2026,
is
amended
to
read
as
follows:
37.
a.
“Perpetual
care
cemetery”
includes
all
of
the
following:
a.
(1)
Any
cemetery
that
was
organized
or
commenced
business
in
this
state
on
or
after
July
1,
1995.
b.
(2)
Any
cemetery
that
has
established
a
care
fund
in
compliance
with
section
523I.810
.
c.
(3)
Any
cemetery
that
represents
that
it
is
a
perpetual
care
cemetery
in
its
interment
rights
agreement.
d.
(4)
Any
cemetery
that
represents
in
any
other
manner
that
the
cemetery
provides
perpetual,
permanent,
or
guaranteed
care.
b.
“Perpetual
care
cemetery”
does
not
include
a
government
cemetery.
Sec.
14.
Section
523I.213A,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
The
commissioner
or
the
commissioner’s
designee
may
conduct
an
examination
under
this
chapter
of
any
cemetery
as
often
as
the
commissioner
deems
appropriate.
If
a
cemetery
has
a
trust
arrangement,
the
commissioner
shall
conduct
an
examination
not
less
than
once
every
five
years.
Sec.
15.
Section
523I.312,
subsection
2,
paragraph
n,
Code
2026,
is
amended
to
read
as
follows:
n.
Include
an
explanation
of
regulatory
oversight
by
the
insurance
division
in
twelve
point
boldface
type,
in
House
File
2634,
p.
6
substantially
the
following
language:
This
agreement
is
subject
to
rules
administered
by
the
Iowa
insurance
division.
You
may
call
contact
the
Iowa
insurance
division
with
inquiries
or
complaints
at
(insert
telephone
number).
Written
inquiries
or
complaints
should
be
mailed
to:
Iowa
Securities
and
Regulated
Industries
Bureau,
(insert
address)
iid.iowa.gov
.
Sec.
16.
Section
523I.501,
Code
2026,
is
amended
to
read
as
follows:
523I.501
Cemetery
authorized.
The
governing
body
of
a
governmental
subdivision
may
purchase,
establish,
operate,
enclose,
improve,
or
regulate
a
cemetery.
A
government
cemetery
owned
or
operated
by
a
governmental
subdivision
may
sell
interment
rights
subject
to
the
provisions
of
this
chapter
.
Sec.
17.
Section
523I.801,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
All
cemeteries
are
designated
as
either
“perpetual
care
cemeteries”
,
or
“nonperpetual
care
cemeteries”
,
or
“government
cemeteries”
for
the
purposes
of
this
chapter
.
A
cemetery
that
represents
that
it
is
offering
perpetual
care
on
or
after
July
1,
2005,
is
subject
to
this
subchapter
.
This
subchapter
shall
not
apply
to
government
cemeteries.
Sec.
18.
Section
523I.805,
subsection
1,
Code
2026,
is
amended
to
read
as
follows:
1.
A
cemetery
owned
or
operated
by
a
political
subdivision
of
this
state
is
not
required
to
make
a
minimum
initial
deposit
in
a
care
fund.
Any
other
cemetery
commencing
business
in
this
state
on
or
after
July
1,
2005,
shall
not
sell
interment
spaces
unless
the
cemetery
has
a
care
fund
of
at
least
twenty-five
thousand
dollars
in
cash
.
Sec.
19.
Section
523I.810,
subsection
1,
paragraph
f,
unnumbered
paragraph
1,
Code
2026,
is
amended
to
read
as
follows:
If
the
amount
of
a
care
fund
exceeds
two
hundred
thousand
dollars,
the
cemetery
or
any
officer,
director,
agent,
employee,
or
affiliate
of
the
cemetery
shall
not
serve
as
trustee
unless
the
cemetery
is
a
cemetery
owned
or
operated
by
a
governmental
subdivision
of
this
state
.
A
financial
House
File
2634,
p.
7
institution
holding
care
funds
shall
not
do
any
of
the
following:
Sec.
20.
REPEAL.
Sections
523A.502A
and
523I.401,
Code
2026,
are
repealed.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2634,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor