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PAG LIN 1 1 Section 1. Section 6A.4, subsection 4, Code 2003, is 1 2 amended to read as follows: 1 3 4. CEMETERYASSOCIATIONSCORPORATIONS. Upon anyprivate1 4 cemeteryor cemetery associationcorporation which is 1 5 incorporated under the laws of this state relating to 1 6 corporations not for pecuniary profit, and having its cemetery 1 7 located outside the limits of a city, for the purpose of 1 8 acquiring necessary grounds for cemetery use or reasonable 1 9 additions thereto. The right granted in this subsection shall 1 10 not be exercised until the board of supervisors, of the county 1 11 in which the land sought to be condemned is located, has, on 1 12 written application and hearing, on such reasonable notice to 1 13 all interested parties as it may fix, found that the land, 1 14 describing it, sought to be condemned, is necessary for 1 15 cemetery purposes. Theassociationcemetery corporation shall 1 16 pay all costs attending such hearing. 1 17 Sec. 2. Section 6A.7, Code 2003, is amended to read as 1 18 follows: 1 19 6A.7 CEMETERY LANDS. 1 20 No lands actually platted, used, and devoted to cemetery 1 21 purposes shall be taken for any railway purpose without the 1 22 consent of thepropercemetery corporation's officers or 1 23 owners thereof. 1 24 Sec. 3. Section 359.28, Code 2003, is amended to read as 1 25 follows: 1 26 359.28 CONDEMNATION. 1 27 The township trustees are hereby empowered to condemn, or 1 28 purchase and pay for out of the general fund, or the specific 1 29 fund voted for such purpose, and enter upon and take, any 1 30 lands within the territorial limits of such township for the 1 31 use of existing cemeteries, a community center or juvenile 1 32 playgrounds, in the same manner as is now provided for cities. 1 33 However, the board of supervisors or a cemetery commission 1 34 appointed by the board of supervisors shall control and 1 35 maintain pioneer cemeteries as defined in section 331.325. 2 1 Sec. 4. Section 359.29, Code 2003, is amended to read as 2 2 follows: 2 3 359.29 GIFTS AND DONATIONS. 2 4 Civil townships are hereby authorized and empowered to 2 5 receive by gift, devise, or bequest, money or property for the 2 6 purpose of establishing and maintaining libraries, township 2 7 halls, maintaining existing cemeteries, or for any other 2 8 public purpose. All such gifts, devises, or bequests shall be 2 9 effectual only when accepted by resolution of the board of 2 10 trustees of such township. 2 11 Sec. 5. Section 427.1, subsection 6, Code 2003, is amended 2 12 to read as follows: 2 13 6. PROPERTY OF CEMETERYASSOCIATIONSCORPORATIONS. Burial 2 14 grounds, mausoleums, buildings and equipment owned and 2 15 operated by cemeteryassociationscorporations incorporated as 2 16 a nonprofit corporation under chapter 504A and used 2 17 exclusively for the maintenance and care of the cemeteries 2 18 devoted to interment of human bodies and human remains. The 2 19 exemption granted by this subsection shall not apply to any 2 20 property used for the practice of mortuary science. 2 21 Sec. 6. Section 450.10, subsection 3, unnumbered paragraph 2 22 1, Code 2003, is amended to read as follows: 2 23 When the property or any interest therein or income 2 24 therefrom, taxable under the provisions of this chapter, 2 25 passes in any manner to societies, institutions or 2 26 associations incorporated or organized under the laws of any 2 27 other state, territory, province or country than this state, 2 28 for charitable, educational or religious purposes, or to 2 29 cemeteryassociationscorporations incorporated as a nonprofit 2 30 corporation under chapter 504A, including humane societies not 2 31 organized under the laws of this state, or to resident 2 32 trustees for uses without this state, the rate of tax imposed 2 33 shall be as follows: 2 34 Sec. 7. Section 459.102, subsection 9, Code 2003, is 2 35 amended to read as follows: 3 1 9. "Cemetery" means a space held for the purpose of 3 2 permanent burial, entombment, or interment of human remains 3 3 that is owned or managed by a political subdivision or private 3 4 entity, or a cemetery regulated pursuant to chapter 523Ior3 5566A. However, "cemetery" does not include a pioneer cemetery 3 6 as defined in section 331.325. 3 7 Sec. 8. Section 523A.203, subsection 6, paragraph b, Code 3 8 2003, is amended to read as follows: 3 9 b. Use any funds required to be held in trust under this 3 10 chapteror chapter 566Ato purchase an interest in any 3 11 contract or agreement to which a seller is a party. 3 12 SUBCHAPTER 1 3 13 SHORT TITLE AND DEFINITIONS 3 14 Sec. 9. NEW SECTION. 523I.101 SHORT TITLE. 3 15 This chapter may be cited as the "Iowa Cemetery Act". 3 16 Sec. 10. NEW SECTION. 523I.102 DEFINITIONS. 3 17 For purposes of this chapter, unless the context otherwise 3 18 requires: 3 19 1. "Authorized to do business within this state" means a 3 20 person licensed, registered, or subject to regulation by an 3 21 agency of the state of Iowa or who has filed a consent to 3 22 service of process with the commissioner for purposes of this 3 23 chapter. 3 24 2. "Burial site" means any area, except a cemetery, that 3 25 is used to inter or scatter remains. 3 26 3. "Capital gains" means appreciation in the value of 3 27 trust assets for which a market value may be determined with 3 28 reasonable certainty after deduction of investment losses, 3 29 taxes, expenses incurred in the sale of trust assets, any 3 30 costs of the operation of the trust, and any annual audit 3 31 fees. 3 32 4. "Care" means the maintenance of a cemetery's interment 3 33 spaces, niches, and mausoleums. 3 34 5. "Care fund" means money or real or personal property 3 35 impressed with a trust by the terms of this chapter, a gift, 4 1 grant, contribution, payment, legacy, or the terms of a 4 2 contract accepted by the cemetery corporation or any trustee 4 3 of the trust fund and any accumulated income allocated to 4 4 principal. 4 5 6. "Casket" means a rigid container which is designed for 4 6 the encasement of human remains and which is usually 4 7 constructed of wood, metal, fiberglass, plastic, or like 4 8 material and ornamented and lined with fabric. 4 9 7. "Cemetery" means an area dedicated to and used or 4 10 intended to be used to inter or scatter remains. 4 11 8. "Cemetery corporation" means a corporation that 4 12 operates one or more cemeteries. 4 13 9. "Columbarium" means a structure, room, or space in a 4 14 mausoleum or other building containing niches or recesses for 4 15 disposition of cremated remains. 4 16 10. "Commissioner" means the commissioner of insurance or 4 17 the deputy administrator authorized in section 523A.801 to the 4 18 extent the commissioner delegates functions to the deputy 4 19 administrator. 4 20 11. "Common business enterprise" means a group of two or 4 21 more business entities that share common ownership in excess 4 22 of fifty percent. 4 23 12. "Credit sale" means a sale of goods, services, or an 4 24 interest in land in which all of the following are applicable: 4 25 a. Credit is granted either under a seller credit card or 4 26 by a seller who regularly engages as a seller in credit 4 27 transactions of the same kind. 4 28 b. The buyer is a person other than an organization. 4 29 c. The goods, services, or interest in land are purchased 4 30 primarily for a personal, family, or household purpose. 4 31 d. Either the debt is payable in installments or a finance 4 32 charge is made. 4 33 e. For goods and services, the amount financed does not 4 34 exceed twenty-five thousand dollars. 4 35 13. "Cremated remains" means the bone fragments that 5 1 remain after the cremation process is completed. 5 2 14. "Cremation" means the technical process using heat and 5 3 flame that reduces human remains to bone fragments. The 5 4 reduction takes place through heat and evaporation. 5 5 "Cremation" shall include the processing, and may include the 5 6 pulverization, of the bone fragments. 5 7 15. "Disinterment" means to remove human remains from 5 8 their place of final disposition. 5 9 16. "Doing business in this state" means issuing or 5 10 performing wholly or in part any term of an interment rights 5 11 agreement executed within the state of Iowa. 5 12 17. "Financial institution" means a state or federally 5 13 insured bank, savings and loan association, credit union, 5 14 trust department thereof, or a trust company that is 5 15 authorized to do business within this state, that has been 5 16 granted trust powers under the laws of this state or the 5 17 United States, and that holds funds under a trust agreement. 5 18 "Financial institution" does not include a cemetery, a 5 19 cemetery corporation, or any person employed by or directly 5 20 involved with a cemetery. 5 21 18. "Garden" means an area within a cemetery established 5 22 by the cemetery as a subdivision for organizational purposes, 5 23 not for sale purposes. 5 24 19. "Grave space" means a space of ground in a cemetery 5 25 that is used or intended to be used for an in-ground burial. 5 26 20. "Gross selling price" means the aggregate amount a 5 27 purchaser is obligated to pay for interment rights, exclusive 5 28 of finance charges. 5 29 21. "Inactive cemetery" means a cemetery that is not 5 30 operating on a regular basis, is not offering to sell or 5 31 provide interments or other services reasonably necessary for 5 32 interment, and does not provide or permit reasonable ingress 5 33 or egress for the purposes of visiting interment spaces. 5 34 22. "Income" means the return in money or property derived 5 35 from the use of trust principal after deduction of investment 6 1 losses, taxes, and expenses incurred in the sale of trust 6 2 assets, any cost of the operation of the trust, and any annual 6 3 audit fees. "Income" includes but is not limited to: 6 4 a. Rent of real or personal property, including sums 6 5 received for cancellation or renewal of a lease and any 6 6 royalties. 6 7 b. Interest on money lent, including sums received as 6 8 consideration for prepayment of principal. 6 9 c. Cash dividends paid on corporate stock. 6 10 d. Interest paid on deposit funds or debt obligations. 6 11 e. Gain realized from the sale of trust assets. 6 12 23. "Insolvent" means the inability to pay debts as they 6 13 become due in the usual course of business. 6 14 24. "Interment rights" means the rights to place remains 6 15 in a specific location for use as a final resting place or 6 16 memorial. 6 17 25. "Interment rights agreement" means an agreement to 6 18 furnish memorials, memorialization, opening and closing 6 19 services, or interment rights. 6 20 26. "Interment space" means a space used or intended to be 6 21 used for the interment of remains including, but not limited 6 22 to, a grave space, lawn crypt, mausoleum crypt, and niche. 6 23 27. "Lawn crypt" means a preplaced enclosed chamber, which 6 24 is usually constructed of reinforced concrete and poured in 6 25 place, or a precast unit installed in quantity, either side- 6 26 by-side or at multiple depths, and covered by earth or sod. 6 27 28. "Lot" means an area in a cemetery containing more than 6 28 one interment space which is uniquely identified by an 6 29 alphabetical, numeric, or alphanumerical identification 6 30 system. 6 31 29. "Maintenance funds" means any money and real or 6 32 personal property held by a nonperpetual cemetery under the 6 33 terms of this chapter, and any accumulated income allocated to 6 34 principal. 6 35 30. "Mausoleum" means an aboveground structure designed 7 1 for the entombment of human remains. 7 2 31. "Mausoleum crypt" means a chamber in a mausoleum of 7 3 sufficient size to contain casketed human remains. 7 4 32. "Memorial" means any product, including any foundation 7 5 other than a mausoleum or columbarium, used for identifying an 7 6 interment space or for commemoration of the life, deeds, or 7 7 career of a decedent including, but not limited to, a 7 8 monument, marker, niche plate, urn garden plaque, crypt plate, 7 9 cenotaph, marker bench, and vase. 7 10 33. "Memorial care" means any care provided or to be 7 11 provided for the general maintenance of memorials including 7 12 foundation repair or replacement, resetting or straightening 7 13 tipped memorials, repairing or replacing inadvertently damaged 7 14 memorials and any other care clearly specified in the purchase 7 15 agreement. 7 16 34. "Memorial dealer" means any person offering or selling 7 17 memorials retail to the public. 7 18 35. "Memorialization" means any permanent system designed 7 19 to mark or record the names and other data pertaining to a 7 20 decedent. 7 21 36. "Merchandise" means any personal property offered or 7 22 sold for use in connection with the funeral, final 7 23 disposition, memorialization, or interment of human remains, 7 24 but which is exclusive of interment rights. 7 25 37. "Neglected cemetery" means a cemetery where there has 7 26 been a failure to cut grass or weeds or care for graves, 7 27 memorials or memorialization, walls, fences, driveways, and 7 28 buildings, or for which proper records of interments have not 7 29 been maintained. 7 30 38. "Niche" means a recess or space in a columbarium or 7 31 mausoleum used for placement of cremated human remains. 7 32 39. "Opening and closing services" means one or more 7 33 services necessarily or customarily provided in connection 7 34 with the interment or entombment of human remains or a 7 35 combination thereof. 8 1 40. "Outer burial container" means any container which is 8 2 designed for placement in the ground around a casket or an urn 8 3 including, but not limited to, containers commonly known as 8 4 burial vaults, urn vaults, grave boxes, grave liners, and lawn 8 5 crypts. 8 6 41. "Parent company" means a corporation that has a 8 7 controlling interest in a cemetery corporation. 8 8 42. "Perpetual care cemetery" includes all of the 8 9 following: 8 10 a. Any cemetery that was organized or commenced business 8 11 in this state on or after July 1, 1995. 8 12 b. Any cemetery that has established a care fund in 8 13 compliance with subchapter 12. 8 14 c. Any cemetery that represents that it is a perpetual 8 15 care cemetery in its interment rights agreement. 8 16 d. Any cemetery that represents in any other manner that 8 17 the cemetery provides perpetual, permanent, or guaranteed 8 18 care. 8 19 43. "Person" means an individual, firm, corporation, 8 20 partnership, joint venture, limited liability company, 8 21 association, trustee, government or governmental subdivision, 8 22 agency, or other entity, or any combination thereof. 8 23 44. "Pioneer cemetery" means a cemetery where there were 8 24 six or fewer burials in the preceding fifty years. 8 25 45. "Purchaser" means a person who purchases memorials, 8 26 memorialization, opening and closing services, scattering 8 27 services, interment rights, or a combination thereof. The 8 28 purchaser need not be a beneficiary of the interment rights 8 29 agreement. 8 30 46. "Religious cemetery" means a cemetery that is owned, 8 31 operated, or controlled by a recognized church or 8 32 denomination. 8 33 47. "Relocation" means the act of taking remains from the 8 34 place of interment or the place where the remains are being 8 35 held to another designated place. 9 1 48. "Remains" means the body of a deceased human or a body 9 2 part, or limb that has been removed from a living human, 9 3 including a body, body part, or limb in any stage of 9 4 decomposition, or cremated remains. 9 5 49. "Scattering" means the disposition of cremated remains 9 6 by lawful dispersion. 9 7 50. "Scattering services" means one or more services 9 8 necessarily or customarily provided in connection with 9 9 scattering human cremated remains. 9 10 51. "Scattering services provider" means a person in the 9 11 business of scattering human cremated remains. 9 12 52. "Seller" means a person doing business within this 9 13 state, including a person doing business within this state who 9 14 advertises, sells, promotes, or offers to furnish memorials, 9 15 memorialization, opening and closing services, scattering 9 16 services or interment rights, or a combination thereof, 9 17 whether the transaction is completed or offered in person, 9 18 through the mail, over the telephone, by the internet, or 9 19 through any other means of commerce. 9 20 53. "Special care" means any care provided or to be 9 21 provided that supplements or exceeds the requirements of this 9 22 chapter in accordance with the specific directions of any 9 23 donor of funds for such purposes. 9 24 54. "Undeveloped space" means a designated area or 9 25 building within a cemetery that has been mapped and planned 9 26 for future development but is not yet fully developed. 9 27 SUBCHAPTER 2 9 28 CEMETERY DEDICATION REQUIREMENTS AND PROCEDURES 9 29 Sec. 11. NEW SECTION. 523I.201 DEDICATION. 9 30 1. A person that dedicates property for a new cemetery on 9 31 or after July 1, 2003, and a cemetery corporation that 9 32 dedicates an additional garden on or after July 1, 2003, 9 33 shall: 9 34 a. In the case of land, survey and subdivide the property 9 35 into gardens with descriptive names or numbers and make a map 10 1 or plat of the property. Individual spaces do not need to be 10 2 set forth visually. The map or plat must include narrative 10 3 descriptions for each garden that allow individuals to 10 4 determine the location of each interment space. The narrative 10 5 descriptions must include appropriate compass directions, the 10 6 size of interment spaces in each defined area, and a 10 7 description of a progressive numbering system used to organize 10 8 individual spaces in each defined area. 10 9 b. In the case of a mausoleum or a columbarium, make a map 10 10 or plat of the property delineating sections or other 10 11 divisions with descriptive names and numbers. Individual 10 12 spaces do not need to be set forth visually. The map or plat 10 13 must include narrative descriptions for each section or 10 14 division that allow individuals to determine the location of 10 15 each interment space. The narrative descriptions must include 10 16 appropriate compass directions, the size of interment spaces 10 17 in each defined area, and a description of a progressive 10 18 numbering system used to organize individual spaces in each 10 19 defined area. 10 20 c. File the map or plat with the commissioner, including a 10 21 written certificate or declaration of dedication of the 10 22 property delineated by the map or plat, dedicating the 10 23 property to cemetery purposes. The certificate or declaration 10 24 shall include all of the following: 10 25 (1) Provision of information on a form prescribed by the 10 26 directors or officers of the cemetery corporation. 10 27 (2) The signature of two individuals authorized by the 10 28 cemetery corporation for that purpose. 10 29 (3) Verification by a notary public. 10 30 2. A map or plat and a certificate or declaration of 10 31 dedication that is filed pursuant to this section dedicates 10 32 the property for cemetery purposes and constitutes 10 33 constructive notice of that dedication. 10 34 3. A certificate or declaration of dedication may contain 10 35 a provision permitting a cemetery corporation to resurvey and 11 1 change the shape and size of the property for which the 11 2 associated map or plat is filed if that change does not 11 3 disturb any interred remains. If a change is made, the 11 4 cemetery corporation shall file an amended map or plat and 11 5 shall indicate any change in a specific unique number assigned 11 6 to an interment space. 11 7 4. A cemetery corporation is civilly liable to the state 11 8 in an amount not to exceed one thousand dollars for each map 11 9 or plat that fails to meet the requirements of this section. 11 10 5. A cemetery corporation shall not sell or convey 11 11 interment rights in a section or garden until a map or plat 11 12 and a certificate or declaration of dedication, if required by 11 13 this section, is filed with the commissioner. 11 14 Sec. 12. NEW SECTION. 523I.202 EFFECT OF DEDICATION. 11 15 1. Property may be dedicated for use as a cemetery, and 11 16 the dedication is permitted out of respect for the dead, to 11 17 provide for the disposition of remains, and in fulfillment of 11 18 a duty to and for the benefit of the public. 11 19 2. Dedication of property as a cemetery and a property 11 20 owner's title to the exclusive interment rights are not 11 21 affected by the dissolution of the corporation owning the 11 22 cemetery, nonuse, alienation, encumbrance, or forced sale of 11 23 the property. 11 24 3. Dedication of property as a cemetery may not be 11 25 invalidated because of a violation of the law against 11 26 perpetuities or the law against the suspension of the power of 11 27 alienation of title to or use of property. 11 28 4. All property located on land dedicated as a cemetery, 11 29 including a road, alley, or walk in the cemetery: 11 30 a. Is exempt from public improvements assessments, fees, 11 31 and public taxation. 11 32 b. Shall not be sold on execution or applied in payment of 11 33 debts due from individual owners. 11 34 5. If human remains are not interred in a garden, the 11 35 dedication of that portion of the property as a cemetery may 12 1 be removed if notice is filed with the commissioner. Property 12 2 dedicated as a cemetery shall continue to be used for cemetery 12 3 purposes until the dedication is removed by filing notice with 12 4 the commissioner, by court order, or until maintenance of the 12 5 cemetery is enjoined or abated as a nuisance under section 12 6 523I.804. 12 7 Sec. 13. NEW SECTION. 523I.203 REMOVAL OF DEDICATION. 12 8 A cemetery corporation may petition a district court of the 12 9 county in which a cemetery is located to remove the dedication 12 10 with respect to all or any portion of the cemetery if any of 12 11 the following occurs: 12 12 1. All remains have been removed from that portion of the 12 13 cemetery where the dedication is to be removed. 12 14 2. No interments were made in that portion of the cemetery 12 15 where the dedication is to be removed and that portion of the 12 16 cemetery is not used or necessary for interment purposes. 12 17 3. A court orders the removal of the dedication upon 12 18 notice and proof deemed satisfactory by the court. 12 19 SUBCHAPTER 3 12 20 CEMETERY CORPORATIONS 12 21 Sec. 14. NEW SECTION. 523I.301 FORMATION OF CORPORATION 12 22 TO MAINTAIN AND OPERATE A CEMETERY. 12 23 1. A person shall not operate as a cemetery except by 12 24 means of a corporation. 12 25 2. A corporation may, if authorized to do so by its 12 26 articles, establish, maintain, manage, improve, or operate a 12 27 cemetery either for or without profit to its members or 12 28 stockholders. A nonprofit cemetery corporation shall be 12 29 organized pursuant to chapter 504A, the Iowa nonprofit 12 30 corporation Act. A for-profit cemetery corporation shall be 12 31 organized pursuant to chapter 490, the Iowa business 12 32 corporation Act, or chapter 490A, the Iowa limited liability 12 33 company Act. 12 34 3. The powers, privileges, and duties conferred and 12 35 imposed upon any cemetery corporation doing business under 13 1 this chapter are hereby enlarged as each particular case may 13 2 require to conform to the provisions of this chapter. 13 3 4. Unless otherwise limited by law, a cemetery corporation 13 4 shall have the same powers granted to other corporations in 13 5 general, including the right to enter into contracts secured 13 6 by a mortgage, deed of trust, or other obligation upon the 13 7 cemetery corporation's property. 13 8 Sec. 15. NEW SECTION. 523I.302 PROPERTY ACQUISITION BY 13 9 CEMETERY CORPORATION. 13 10 1. A cemetery corporation may acquire by purchase, 13 11 donation, or devise property consisting of land or other 13 12 property in which remains may be interred under law. 13 13 2. A cemetery corporation that acquires property may 13 14 record title to its property with the county recorder of the 13 15 county in which the property is located if its president and 13 16 secretary or other authorized delegate of the cemetery 13 17 corporation sign and acknowledge a declaration executed by the 13 18 cemetery corporation that describes the property and declares 13 19 the cemetery corporation's intention to use the property or a 13 20 part of the property for interment purposes. 13 21 3. Title recorded pursuant to subsection 2 constitutes 13 22 constructive notice as of the date of filing that the property 13 23 is intended to be used for interment. 13 24 4. A cemetery corporation may by condemnation acquire 13 25 property in which remains may be interred when the acquisition 13 26 of that property is for a public purpose. 13 27 Sec. 16. NEW SECTION. 523I.303 AUTHORITY OF CEMETERY 13 28 CORPORATION. 13 29 A cemetery corporation may do any of the following: 13 30 1. Divide the cemetery into interment spaces and 13 31 subdivisions for cemetery purposes. 13 32 2. Charge an assessment on cemetery property for the 13 33 purpose of general improvement and maintenance. 13 34 3. Take any action that is necessary to carry out the 13 35 cemetery's business purposes including those purposes that are 14 1 necessarily incidental to the final disposition of human 14 2 remains, including any of the following: 14 3 a. Convey property or other assets of the corporation. 14 4 b. Borrow money. 14 5 SUBCHAPTER 4 14 6 INTERMENT RIGHTS 14 7 Sec. 17. NEW SECTION. 523I.401 SALE OF INTERMENT RIGHTS. 14 8 1. A cemetery corporation may sell and convey exclusive 14 9 rights of interment in the cemetery under the following 14 10 conditions: 14 11 a. The sale or conveyance is allowed by the rules of the 14 12 cemetery and the restrictions in the certificate of interment 14 13 rights or other instrument of conveyance. 14 14 b. The purchase price for the interment rights has been 14 15 paid in full. 14 16 2. A certificate of interment rights or other instrument 14 17 evidencing the conveyance of exclusive rights of interment by 14 18 a cemetery corporation must be signed by the president or vice 14 19 president and the secretary or other officers authorized by 14 20 the cemetery corporation. 14 21 3. A conveyance of exclusive rights of interment must be 14 22 filed and recorded in the cemetery corporation's office. Any 14 23 transfer of the ownership of interment rights must be filed 14 24 and recorded in the cemetery corporation's office. The 14 25 cemetery corporation may charge a reasonable recording fee to 14 26 record the transfer of interment rights. 14 27 4. The interment rights in an interment space that is 14 28 conveyed by a certificate of ownership or other instrument 14 29 shall not be divided without the consent of the cemetery 14 30 corporation. 14 31 Sec. 18. NEW SECTION. 523I.402 INTERMENT RIGHTS. 14 32 1. An interment space in which exclusive rights of 14 33 interment are conveyed is presumed to be the separate property 14 34 of the person named as grantee in the certificate of interment 14 35 rights or other instrument of conveyance. 15 1 2. The spouse of a person to whom exclusive rights of 15 2 interment in an interment space are conveyed has a vested 15 3 right of interment of the spouse's remains in the interment 15 4 space while the spouse is married to the interment space owner 15 5 or if the spouse is married to the interment space owner at 15 6 the time of the owner's death. 15 7 Sec. 19. NEW SECTION. 523I.403 MULTIPLE OWNERS OF 15 8 INTERMENT RIGHTS. 15 9 Two or more owners of interment rights may designate a 15 10 person to represent the interment space and file notice of the 15 11 designation of a representative with the cemetery corporation. 15 12 If notice is not filed, the cemetery corporation may inter or 15 13 permit an interment in the space at the request or direction 15 14 of a registered co-owner of the interment space. 15 15 Sec. 20. NEW SECTION. 523I.404 RECORDS OF INTERMENT 15 16 RIGHTS AND INTERMENT. 15 17 1. A cemetery corporation shall keep complete records 15 18 identifying the owners of all interment rights sold by the 15 19 cemetery corporation and historical information regarding any 15 20 transfers of ownership. The records shall include all of the 15 21 following: 15 22 a. The name and last known address of each owner or 15 23 previous owner of interment rights. 15 24 b. The date of each purchase or transfer of interment 15 25 rights. 15 26 c. A unique numeric or alphanumeric identifier that 15 27 identifies the location of each interment space sold by the 15 28 cemetery corporation. 15 29 2. A cemetery corporation shall keep a record of each 15 30 interment in a cemetery. The records shall include all of the 15 31 following: 15 32 a. The date the remains are interred. 15 33 b. The name, date of birth, and date of death of the 15 34 decedent interred, if those facts can be conveniently 15 35 obtained. 16 1 c. A unique numeric or alphanumeric identifier that 16 2 identifies the location of the interment space where the 16 3 remains are interred. 16 4 Sec. 21. NEW SECTION. 523I.405 ABANDONED INTERMENT 16 5 SPACES. 16 6 1. REVERSION. The ownership or right in or to an 16 7 unoccupied interment space shall, upon abandonment, revert to 16 8 the cemetery corporation that owns the cemetery in which the 16 9 space is located. 16 10 2. PRESUMPTION OF ABANDONMENT. Unpaid care assessments 16 11 and fees for an unoccupied interment space not under perpetual 16 12 care shall create a lien by the cemetery corporation against 16 13 the applicable interment space. The continued failure of the 16 14 owner to maintain or care for an unoccupied interment space 16 15 not under perpetual care, for a period of ten years, or to pay 16 16 a lien for care assessments or care fees that exceed the 16 17 amount paid for the interment space, shall create the 16 18 presumption that the interment space has been abandoned. An 16 19 unused interment space under perpetual care in a lot which has 16 20 not had a burial for seventy-five years shall create a 16 21 presumption that the interment space has been abandoned. 16 22 3. NOTICE OF ABANDONMENT. Abandonment shall not be deemed 16 23 complete pursuant to subsection 2 until the cemetery 16 24 corporation gives notice declaring the interment space to be 16 25 abandoned, to the owner of record or, if the owner of record 16 26 is deceased or unknown, to the heirs of the owner of record. 16 27 4. SERVICE OF NOTICE. Notice of abandonment may be served 16 28 personally on the owner of record or the owner of record's 16 29 heirs, or may be served by mailing notice by certified mail to 16 30 the owner of record, or the owner of record's heirs, at the 16 31 last known address of the owner of record or owner of record's 16 32 heirs. If the address of the owner of record or the owner of 16 33 record's heirs cannot be ascertained, notice of such 16 34 abandonment shall be given by one publication of the notice of 16 35 abandonment in the official newspaper of the county in which 17 1 the cemetery is located. 17 2 5. OVERCOMING PRESUMPTION OF ABANDONMENT. If within one 17 3 year from the time of serving notice the owner of record or 17 4 the owner of record's heirs pay the past due annual care 17 5 charges assessed against the interment space, the presumption 17 6 of abandonment shall no longer exist and the owner of record 17 7 or the owner of record's heirs may be required to make full 17 8 payment for future perpetual care. 17 9 6. REVERSIONER'S RIGHT TO SELL. When the abandonment is 17 10 deemed complete, the reversionary owner of the abandoned 17 11 interment space, or a portion thereof, may sell and convey 17 12 title to the interment space. 17 13 7. USE OF FUNDS. Any funds realized from the sale of an 17 14 interment space not under perpetual care which has reverted to 17 15 the reversionary owner shall be allocated to the care fund or 17 16 to the fund paying the costs of cemetery operation. 17 17 8. ABANDONMENT – PERPETUAL CARE PROVIDED BY WILL, COURT 17 18 ORDER, CONTRACT, OR BY LAW. An unused interment space which 17 19 has not had a burial for seventy-five years, but whose 17 20 perpetual care has been provided for by will, court order, 17 21 contract, or by law, shall not be sold by the reversionary 17 22 owner until three years after the date notice was served on 17 23 the owner of record or the owner of record's heirs of the 17 24 presumed abandonment of the interment space. 17 25 SUBCHAPTER 5 17 26 INTERMENT RIGHTS AGREEMENTS 17 27 Sec. 22. NEW SECTION. 523I.501 STATEMENT BY PERPETUAL 17 28 CARE CEMETERY. 17 29 1. A perpetual care cemetery shall include the following 17 30 statement in the heading of each interment rights agreement: 17 31 "This cemetery is operated as a perpetual care cemetery, 17 32 which means that a care fund for its maintenance has been 17 33 established in conformity with the laws of the State of Iowa. 17 34 At least twenty percent of the purchase price for interment 17 35 rights must be placed in the care fund and the care fund's 18 1 income is used to maintain, repair, and care for the 18 2 cemetery." 18 3 2. If the care fund contains less than twenty-five 18 4 thousand dollars, the statement shall include a statement that 18 5 the balance of the care fund is less than twenty-five thousand 18 6 dollars or shall disclose the exact amount contained in the 18 7 care fund on a date not more than twelve months prior to the 18 8 date of execution of the interment rights agreement. 18 9 Sec. 23. NEW SECTION. 523I.502 STATEMENT BY NONPERPETUAL 18 10 CARE CEMETERY. 18 11 1. A nonperpetual care cemetery shall include the 18 12 following statement in the heading of each interment rights 18 13 agreement: 18 14 "This cemetery is a nonperpetual care cemetery and has not 18 15 established a perpetual trust fund for the cemetery's care." 18 16 2. A nonperpetual care cemetery shall not represent that 18 17 the cemetery is a perpetual care cemetery or use any similar 18 18 title, description, or term indicating that the cemetery 18 19 provides guaranteed or permanent maintenance and care. If a 18 20 nonperpetual care cemetery has a maintenance fund, trust fund, 18 21 or trust funds, any statements about those funds must be 18 22 factually accurate and explain any variances between the terms 18 23 of the applicable trust and this chapter in regard to the 18 24 twenty-five thousand dollar minimum corpus provision, any 18 25 provisions regarding invasion of principal, and the amount of 18 26 the purchase price placed in trust for each sale of interment 18 27 rights. 18 28 Sec. 24. NEW SECTION. 523I.503 INTERMENT RIGHTS 18 29 AGREEMENT REQUIREMENTS. 18 30 An agreement for interment rights shall be written in 18 31 clear, understandable language and shall contain all of the 18 32 following: 18 33 1. The name of the cemetery where the rights to interment 18 34 are located, the name of the cemetery corporation selling 18 35 interment rights or the name of a seller other than the 19 1 cemetery corporation, and the name of the purchaser. 19 2 2. The name and sales permit number of the salesperson. 19 3 3. A description of the interment rights to be provided 19 4 and the cost of merchandise or services to be provided. 19 5 4. The conditions under which substitutions will be 19 6 allowed. 19 7 5. The total purchase price and the terms under which the 19 8 purchase price is to be paid. 19 9 6. That the purchase of interment rights is an irrevocable 19 10 contract, except as otherwise specified in the cemetery 19 11 corporation's rules and regulations. 19 12 7. The amount or percentage of money to be placed in the 19 13 cemetery corporation's care fund or maintenance fund. 19 14 8. A statement explaining that the care fund or 19 15 maintenance fund is an irrevocable trust, that deposits cannot 19 16 be withdrawn even in the event of cancellation of the 19 17 agreement, and that the care fund or maintenance fund must be 19 18 used by the cemetery corporation for the care and maintenance 19 19 of the cemetery. 19 20 9. An explanation of any fees or expenses that may be 19 21 charged. 19 22 10. An explanation of whether the money to be placed in 19 23 the cemetery corporation's care fund or maintenance fund will 19 24 be deposited in trust upon payment in full or on an allocable 19 25 basis as payments are made. 19 26 11. An explanation of whether initial payments on 19 27 agreements for multiple items of merchandise or services, or 19 28 both, will be allocated first to the purchase of interment 19 29 rights. If such an allocation will be made, the agreement 19 30 shall provide for the immediate transfer of such interment 19 31 rights upon payment in full and prominently state that any 19 32 applicable trust deposits under chapter 523A will not be made 19 33 until the cemetery has received payment in full for the 19 34 interment rights. The transfer of interment rights in an 19 35 undeveloped space may be deferred until such space is ready 20 1 for burial. 20 2 12. A provision that if the transfer of an undeveloped 20 3 interment space will be deferred as set forth in subsection 20 4 11, there will be written acknowledgement when payment in full 20 5 is made, specification of a reasonable time period for 20 6 development of the space, a description of what happens in the 20 7 event of the purchaser's death prior to development of the 20 8 space, and immediate transfer of the interment rights when 20 9 development of the space is complete. 20 10 13. Specification of the purchaser's right to cancel the 20 11 agreement and liability for damages upon such cancellation, if 20 12 any. 20 13 14. A statement that the insurance division exercises 20 14 regulatory oversight over interment rights agreements set 20 15 forth in twelve point bold-faced type, in substantially the 20 16 following language: THIS AGREEMENT IS SUBJECT TO RULES 20 17 ADMINISTERED BY THE IOWA INSURANCE DIVISION. YOU MAY CALL THE 20 18 INSURANCE DIVISION AT (___)___________. WRITTEN INQUIRIES OR 20 19 COMPLAINTS SHOULD BE MAILED TO THE IOWA INSURANCE DIVISION, 20 20 (STREET ADDRESS), (CITY), IOWA (ZIP CODE). 20 21 15. If the cemetery corporation offers opening and closing 20 22 services, specification of whether opening and closing of 20 23 interment spaces are included in the interment rights 20 24 agreement, and, if not, the current prices for such opening 20 25 and closing services and a statement that these prices are 20 26 subject to change. 20 27 16. Signatures of the purchaser and the seller. 20 28 A seller shall furnish the purchaser with a completed copy 20 29 of the interment rights agreement at the time the agreement is 20 30 signed. 20 31 SUBCHAPTER 6 20 32 LAWN CRYPTS 20 33 Sec. 25. NEW SECTION. 523I.601 REQUIREMENTS FOR LAWN 20 34 CRYPTS. 20 35 A lawn crypt shall not be installed unless all of the 21 1 following apply: 21 2 1. The lawn crypt is constructed of concrete and 21 3 reinforced steel or other comparable durable material. 21 4 2. The lawn crypt is installed on not less than six inches 21 5 of rock, gravel, or other drainage material. 21 6 3. The lawn crypt provides a method to drain water out of 21 7 the lawn crypt. 21 8 4. The outside top surface of the lawn crypt at the time 21 9 of installation is at least one and one-half feet below the 21 10 surface of the ground and is capable of withstanding the 21 11 weight of the soil and sod above the top surface and the 21 12 weight of machinery and equipment normally used in the 21 13 maintenance of the cemetery. 21 14 5. Except as provided by section 523I.602, the lawn crypt 21 15 is installed in multiple units of ten or more. 21 16 6. To the extent that any provision of section 135.11 or 21 17 chapter 156 or any administrative rule adopted pursuant 21 18 thereto is inconsistent with this section, the provisions of 21 19 this section shall govern. 21 20 Sec. 26. NEW SECTION. 523I.602 REQUEST TO INSTALL LAWN 21 21 CRYPT IN FEWER THAN TEN UNITS. 21 22 1. A lawn crypt may be installed in fewer than ten units 21 23 if it is installed in an interment space pursuant to a written 21 24 request to the commissioner signed by the owner or owners of 21 25 the interment space. 21 26 2. The written request shall be filed on a form prescribed 21 27 by the commissioner and shall contain substantially all of the 21 28 following information: 21 29 a. The owner's name and address. 21 30 b. The name of the cemetery and the owner of the cemetery. 21 31 c. The number of lawn crypt units to be installed. 21 32 d. A description of the interment spaces. 21 33 e. A statement that the lawn crypt meets the requirements 21 34 of section 523I.601, including all of the following: 21 35 (1) A statement that the lawn crypt will be constructed of 22 1 concrete and reinforced steel or other comparable durable 22 2 materials. 22 3 (2) A statement that the lawn crypt will be installed on 22 4 not less than six inches of rock, gravel, or other drainage 22 5 material. 22 6 (3) A statement that the lawn crypt will provide a method 22 7 to drain water out of the lawn crypt. 22 8 (4) A statement that the outside top surface of the lawn 22 9 crypt at the time of installation will be at least one and 22 10 one-half feet below the surface of the ground and be capable 22 11 of withstanding the weight of the soil and sod above the top 22 12 surface and the weight of machinery and equipment normally 22 13 used in the maintenance of the cemetery. 22 14 f. A statement that the space in which the lawn crypt is 22 15 to be installed is located in a garden. 22 16 g. The date on which the owner or owners signed the form. 22 17 3. To the extent that any provision of section 135.11 or 22 18 chapter 156 or any administrative rule adopted pursuant 22 19 thereto is inconsistent with this section, the provisions of 22 20 this section shall govern. 22 21 Sec. 27. NEW SECTION. 523I.603 NEW CONSTRUCTION. 22 22 1. A person shall not offer to sell interment rights in a 22 23 mausoleum or columbarium that will be built or completed in 22 24 the future unless the person has submitted an application to 22 25 sell such interment rights with the commissioner on a form 22 26 prescribed by the commissioner and accompanied by a fee of one 22 27 hundred dollars. 22 28 2. The application to sell interment rights in a mausoleum 22 29 or columbarium must include the following information: 22 30 a. A description of the new facility or the proposed 22 31 expansion, including a description of the interment rights to 22 32 be offered to prospective purchasers. 22 33 b. A statement of the financial resources available for 22 34 the project. 22 35 c. A copy of the proposed interment rights agreement to be 23 1 used, which shall include the following: 23 2 (1) That purchase payments will be held in trust in 23 3 accordance with the requirements of chapter 523A until 23 4 construction of the mausoleum or columbarium is complete. 23 5 (2) That the purchaser may request a refund of the 23 6 purchase amount, if construction does not begin within five 23 7 years of the purchaser's first payment. 23 8 (3) That the new facility will operate as a perpetual care 23 9 cemetery in compliance with this chapter, even if the facility 23 10 is located at a nonperpetual care cemetery. 23 11 (4) That the purchaser will receive an ownership 23 12 certificate upon payment in full or, if later, when 23 13 construction is complete. 23 14 3. Unless financing has been secured that is adequate in 23 15 amount and terms to complete the facility proposed, new 23 16 construction of a mausoleum or columbarium shall not begin 23 17 until the application required by this section has been 23 18 approved by the commissioner. 23 19 SUBCHAPTER 7 23 20 PERMIT REQUIREMENTS 23 21 Sec. 28. NEW SECTION. 523I.701 CEMETERY PERMITS. 23 22 1. A cemetery corporation shall not advertise, sell, 23 23 promote, or offer to sell interment rights on or after July 1, 23 24 2003, without a permit as provided for in this subchapter. If 23 25 a cemetery corporation operates more than one cemetery, each 23 26 cemetery must have a cemetery permit. 23 27 2. A filing fee shall not be required. 23 28 3. An application for a cemetery permit shall be filed on 23 29 a form prescribed by the commissioner and include a copy of 23 30 each interment rights agreement form used by the cemetery. 23 31 4. The application shall contain all of the following: 23 32 a. The name and address of the cemetery. 23 33 b. The name and address of the cemetery corporation. 23 34 c. The name and address of each owner, officer, or other 23 35 official of the cemetery corporation, including, when 24 1 relevant, the chief executive officer and the members of the 24 2 board of directors. 24 3 d. A description of any common business enterprise or 24 4 parent company. 24 5 e. A list of the financial institutions used by the 24 6 cemetery corporation on a regular basis. 24 7 f. The name and address of any trustee holding trust funds 24 8 for the cemetery corporation, including the name and location 24 9 of the applicable trust account. 24 10 5. The commissioner shall grant or deny an application for 24 11 a cemetery permit within thirty days after receipt, but the 24 12 commissioner's failure to act within that time period shall 24 13 not be deemed approval of the application. If the 24 14 commissioner does not grant the permit, the commissioner shall 24 15 notify the person in writing of the reasons for denial. 24 16 6. A cemetery permit is valid for four years. 24 17 Sec. 29. NEW SECTION. 523I.702 SALES PERMITS. 24 18 1. A person shall not advertise, sell, promote, or offer 24 19 to sell interment rights without a sales permit. A person 24 20 holding a sales permit must be an employee or agent of a 24 21 cemetery corporation holding a cemetery permit. This section 24 22 shall not apply to a licensed funeral director who merely 24 23 collects cash advance payments for interment rights, an agent 24 24 or employee of a religious cemetery, or a cemetery owned or 24 25 operated by a political subdivision of this state. 24 26 2. A person must have a sales permit for each cemetery 24 27 corporation for which the person is employed or is an agent. 24 28 3. A cemetery corporation is liable for the acts of its 24 29 employees and agents performed in advertising, selling, 24 30 promoting, or offering to furnish interment rights. 24 31 4. An application for a sales permit shall be filed on a 24 32 form prescribed by the commissioner. 24 33 5. The application shall contain all of the following: 24 34 a. The name and address of the person. 24 35 b. The name and address of the cemetery and, if different, 25 1 the cemetery corporation on whose behalf the person will be 25 2 advertising, selling, promoting, or offering to furnish 25 3 interment rights. 25 4 6. A permit holder shall inform the commissioner of 25 5 changes in the information required to be provided by 25 6 subsection 5 in the initial application or in an application 25 7 for renewal within thirty days of the change. 25 8 7. An initial permit shall be accompanied by a five dollar 25 9 filing fee and shall expire one year from the date the 25 10 application is filed. The permit may be renewed for an 25 11 additional four years by filing the form prescribed by the 25 12 commissioner under this section, accompanied by a twenty 25 13 dollar filing fee. 25 14 8. The commissioner shall grant or deny a permit 25 15 application within thirty days after receipt, but the 25 16 commissioner's failure to act within that time period shall 25 17 not be deemed approval of the application. If the 25 18 commissioner does not grant the permit, the commissioner shall 25 19 notify the applicant in writing of the reasons for the denial. 25 20 9. The commissioner may, by rule, create or accept a 25 21 multijurisdiction sales permit. If the sales permit is issued 25 22 by another jurisdiction, the rules shall require the filing of 25 23 an application or notice form and payment of the applicable 25 24 filing fee of five dollars for each year. The application or 25 25 notice form utilized and the effective dates and terms of the 25 26 permit may vary from the provisions set forth in subsections 25 27 4, 5, 6, and 7. 25 28 10. The commissioner may create and accept a joint sales 25 29 permit for persons who are also required to hold a sales 25 30 permit under section 523A.502. Notwithstanding subsection 7 25 31 and section 523A.502, if a joint application is filed for both 25 32 sales permits, the fee for an initial joint permit shall be 25 33 five dollars and the fee for a renewed joint permit shall be 25 34 twenty dollars. 25 35 Sec. 30. NEW SECTION. 523I.703 DENIAL – SUSPENSION – 26 1 REVOCATION – SURRENDER OF PERMITS. 26 2 1. The commissioner may, subject to chapter 17A, deny any 26 3 permit application or immediately suspend or revoke a permit 26 4 issued under this chapter for several reasons, including but 26 5 not limited to: 26 6 a. Committing a fraudulent act, engaging in a fraudulent 26 7 practice, or violating any provision of this chapter, or any 26 8 implementing rule or order issued under this chapter. 26 9 b. Violating any other state or federal law applicable to 26 10 the conduct of the applicant's or permit holder's business. 26 11 c. Insolvency or financial condition. 26 12 d. Engaging in a deceptive act or practice or 26 13 misrepresenting or omitting a material fact regarding the sale 26 14 of interment rights under this chapter. 26 15 e. Conviction of a criminal offense involving dishonesty 26 16 or a false statement. 26 17 f. Inability to provide the interment rights which the 26 18 applicant or permit holder purports to sell. 26 19 g. Selling the cemetery without filing a prior notice of 26 20 the sale with the commissioner. A cemetery permit shall be 26 21 revoked thirty days following such sale. 26 22 h. Allowing a person who is not an employee or agent of 26 23 the applicant or permit holder to sell interment rights. 26 24 i. Inadequate care and maintenance of the cemetery, 26 25 including but not limited to the following: 26 26 (1) Failure to adequately mow grass. 26 27 (2) Failure to adequately edge and trim bushes, trees, and 26 28 memorials. 26 29 (3) Failure to keep walkways and sidewalks free of 26 30 obstructions. 26 31 (4) Failure to adequately maintain the cemetery's 26 32 equipment and fixtures. 26 33 2. The commissioner may, for good cause shown, suspend any 26 34 permit for a period not exceeding thirty days, pending 26 35 investigation. 27 1 3. Except as provided in subsection 2, a permit shall not 27 2 be revoked or suspended except after notice and hearing under 27 3 chapter 17A. 27 4 4. Any permit holder may surrender a permit by delivering 27 5 to the commissioner written notice that the permit holder 27 6 surrenders the permit, but the surrender shall not affect the 27 7 permit holder's civil or criminal liability for acts committed 27 8 before the surrender. 27 9 5. Denial, revocation, suspension, or surrender of a 27 10 permit does not impair or affect the obligation of any 27 11 preexisting lawful agreement between the permit holder and any 27 12 person. 27 13 Sec. 31. NEW SECTION. 523I.704 ASSIGNMENTS AND TRANSFERS 27 14 PROHIBITED. 27 15 Permits issued pursuant to this chapter are not assignable 27 16 or transferable. This section does not apply to a religious 27 17 cemetery if it remains a religious cemetery after the 27 18 assignment or transfer of a permit. 27 19 Sec. 32. NEW SECTION. 523I.705 TRANSFER OF OWNERSHIP. 27 20 If an applicant or permit holder sells a cemetery, the 27 21 applicant or holder of a cemetery permit for that cemetery 27 22 shall notify the commissioner no later than thirty days after 27 23 the sale of the cemetery. 27 24 SUBCHAPTER 8 27 25 GENERAL PROVISIONS 27 26 Sec. 33. NEW SECTION. 523I.801 LIEN AGAINST CEMETERY 27 27 PROPERTY. 27 28 1. A cemetery corporation, by contract, may incur 27 29 indebtedness as necessary to conduct its business and may 27 30 secure the indebtedness by mortgage, deed of trust, or other 27 31 lien against its property. 27 32 2. A mortgage, deed of trust, or other lien placed on 27 33 dedicated cemetery property, or on cemetery property that is 27 34 later dedicated with the consent of the holder of the lien, 27 35 does not affect the dedication and is subject to the 28 1 dedication. A sale on foreclosure of the lien is subject to 28 2 the dedication of the property for cemetery purposes. 28 3 Sec. 34. NEW SECTION. 523I.802 DEPTH OF GROUND BURIALS 28 4 – CRIMINAL PENALTY. 28 5 1. The outside top surface of a container holding human 28 6 remains shall not be buried as follows: 28 7 a. Less than two feet below the surface of the ground if 28 8 the container is biodegradable. 28 9 b. Less than one and one-half feet below the surface of 28 10 the ground if the container is made of nonbiodegradable 28 11 material. 28 12 2. The governing body of a political subdivision of this 28 13 state may, because of subsurface soil conditions or other 28 14 relevant considerations, allow, by ordinance, order, or rule, 28 15 burials in that political subdivision at a depth shallower 28 16 than that required by subsection 1. 28 17 3. This section does not apply to lawn crypts. 28 18 4. If the cemetery is in a floodplain or within one mile 28 19 of a river, lake, or similar body of water and flooding is a 28 20 significant risk, the surface level of the ground above the 28 21 grave at its shallowest point shall be at least three feet 28 22 from the top of the burial container. 28 23 5. A person who buries human remains in violation of this 28 24 section or an ordinance or rule adopted pursuant to this 28 25 section commits a simple misdemeanor. 28 26 6. To the extent that any provision of section 135.11 or 28 27 chapter 156 or any administrative rule adopted pursuant 28 28 thereto is inconsistent with this section, the provisions of 28 29 this section shall apply. 28 30 Sec. 35. NEW SECTION. 523I.803 REMOVAL OF REMAINS FROM 28 31 NEGLECTED CEMETERY. 28 32 1. If a neglected cemetery for which no care fund has been 28 33 regularly and legally established is abated as a nuisance, the 28 34 court abating the nuisance and enjoining its continuance or 28 35 the governing body of the municipality in which the cemetery 29 1 is located may authorize the removal of all human remains, 29 2 monuments, tombs, and other similar items from the cemetery to 29 3 another religious cemetery of the same denomination, if 29 4 applicable, or to a perpetual care cemetery in the same 29 5 county. 29 6 2. If a county does not have a perpetual care cemetery 29 7 that under its rules permits the interment of human remains 29 8 that have been removed from another cemetery, the human 29 9 remains, monuments, tombs, and other similar items may be 29 10 removed to a nonperpetual care cemetery in the county that has 29 11 provided for assessments for the cemetery's future care. 29 12 Sec. 36. NEW SECTION. 523I.804 NUISANCE – ABATEMENT – 29 13 INJUNCTION. 29 14 1. A district court of the county in which a cemetery is 29 15 located may, by order, abate the cemetery as a nuisance and 29 16 enjoin its continuance if the cemetery is either: 29 17 a. Maintained, located, or used in violation of this 29 18 chapter. 29 19 b. Neglected so that it is offensive to the inhabitants of 29 20 the surrounding area. 29 21 2. A proceeding for abatement may be brought by the county 29 22 attorney, the attorney general, or the commissioner. 29 23 3. The court shall grant a permanent injunction against 29 24 each person responsible for the nuisance if a cemetery 29 25 nuisance exists or is threatened. 29 26 4. If a cemetery nuisance under subsection 1, paragraph 29 27 "b", is located in a municipality, the governing body of the 29 28 municipality may authorize the removal of all human remains, 29 29 monuments, tombs, or other similar items from the cemetery to 29 30 a perpetual care cemetery. 29 31 Sec. 37. NEW SECTION. 523I.805 RULEMAKING AND 29 32 ENFORCEMENT. 29 33 1. A cemetery corporation may adopt, amend, and enforce 29 34 rules for the use, care, control, management, restriction, and 29 35 protection of the cemetery, as necessary for the proper 30 1 conduct of the business of the cemetery, including, but not 30 2 limited to, the use, care, and transfer of any space or right 30 3 of interment. 30 4 2. A cemetery corporation may restrict and limit the use 30 5 of all property within the cemetery by rules that do all of 30 6 the following: 30 7 a. Prohibit the placement of memorials or memorialization, 30 8 buildings, or other types of structures within any portion of 30 9 the cemetery. 30 10 b. Regulate the uniformity, class, and kind of memorials 30 11 and memorialization and structures within the cemetery. 30 12 c. Regulate the scattering or placement of cremated 30 13 remains within the cemetery. 30 14 d. Prohibit or regulate the placement of nonhuman remains 30 15 within the cemetery. 30 16 e. Prohibit or regulate the introduction or care of trees, 30 17 shrubs, and other types of plants within the cemetery. 30 18 f. Regulate the right of third parties to open, prepare 30 19 for interment, and close interment spaces. 30 20 g. Prohibit interment in any part of the cemetery not 30 21 designated as an interment space. 30 22 h. Prevent the use of space for any purpose inconsistent 30 23 with the use of the property as a cemetery. 30 24 3. A cemetery corporation shall not adopt or enforce a 30 25 rule that prohibits interment because of the race, color, or 30 26 national origin of a decedent. A provision of a contract or a 30 27 certificate of ownership or other instrument conveying 30 28 interment rights that prohibits interment in a cemetery 30 29 because of the race, color, or national origin of a decedent 30 30 is void. 30 31 4. A cemetery corporation's rules shall be plainly printed 30 32 or typewritten and maintained for inspection in the office of 30 33 the cemetery or, if the cemetery does not have an office, in 30 34 another suitable place within the cemetery. The cemetery's 30 35 rules shall be provided to owners of interment spaces upon 31 1 request. 31 2 5. A cemetery corporation's rules shall specify the 31 3 cemetery corporation's obligations in the event that memorials 31 4 or memorialization are damaged or defaced by acts of 31 5 vandalism. The rules may specify a multiyear restoration of a 31 6 memorial or memorialization when the damage is extensive or 31 7 when money available from the cemetery's trust fund is 31 8 inadequate to complete repairs immediately. The owner of a 31 9 memorial or memorialization that has been damaged or defaced 31 10 shall be notified by the cemetery corporation by restricted 31 11 certified mail at the owner's last known address within sixty 31 12 days of the discovery of the damage or defacement. The rules 31 13 shall specify whether the owner is liable, in whole or in 31 14 part, for the cost to repair or replace a damaged or defaced 31 15 memorial or memorialization. 31 16 6. The cemetery corporation shall not approve any bylaw 31 17 which unreasonably restricts competition, or which 31 18 unreasonably increases the cost to the owner of interment 31 19 rights in utilizing these rights. 31 20 Sec. 38. NEW SECTION. 523I.806 PROTECTION OF CEMETERIES 31 21 AND BURIAL SITES. 31 22 1. EXISTENCE OF CEMETERY OR BURIAL SITE – NOTIFICATION. 31 23 If a governmental subdivision or agency is notified of the 31 24 existence of a cemetery, or a marked burial site that is not 31 25 located in a dedicated cemetery, within its jurisdiction and 31 26 the cemetery or burial site is not otherwise provided for 31 27 under this chapter, the governmental subdivision or agency 31 28 shall, as soon as is practicable, notify the owner of the land 31 29 upon which the cemetery or burial site is located of the 31 30 cemetery's or burial site's existence and location. The 31 31 notification shall include an explanation of the provisions of 31 32 this section. If there is a basis to believe that interment 31 33 may have occurred more than one hundred fifty years earlier, 31 34 the governmental subdivision or agency shall also notify the 31 35 state archeologist. 32 1 2. DISTURBANCE OF INTERMENT SPACES – PENALTY. A person 32 2 who knowingly and without authorization damages, defaces, 32 3 destroys, or otherwise disturbs an interment space commits 32 4 criminal mischief in the third degree. Criminal mischief in 32 5 the third degree is an aggravated misdemeanor. 32 6 3. DUTY TO PRESERVE AND PROTECT. A governmental 32 7 subdivision or agency having a cemetery, or a burial site that 32 8 is not located within a dedicated cemetery, within its 32 9 jurisdiction, for which preservation is not otherwise 32 10 provided, shall preserve and protect the cemetery or burial 32 11 site as necessary to restore or maintain its physical 32 12 integrity as a cemetery or burial site. The governmental 32 13 subdivision or agency may enter into an agreement to delegate 32 14 the responsibility for the preservation and protection of the 32 15 cemetery or burial site to a person interested in historical 32 16 preservation. A cemetery corporation shall be formed to 32 17 operate the cemetery, if applicable. 32 18 4. CONFISCATION AND RETURN OF MEMORIALS. A law 32 19 enforcement officer having reason to believe that a memorial 32 20 or memorialization is in the possession of a person without 32 21 authorization or right to possess the memorial or 32 22 memorialization may take possession of the memorial or 32 23 memorialization from that person and turn it over to the 32 24 officer's law enforcement agency. If a law enforcement agency 32 25 determines that a memorial or memorialization the agency has 32 26 taken possession of rightfully belongs on an interment space, 32 27 the agency shall return the memorial or memorialization to the 32 28 interment space, or make arrangements with the person having 32 29 jurisdiction over the interment space for its return. 32 30 5. INTERMENT SPACES LOCATED ON PRIVATE PROPERTY. 32 31 a. A person shall notify a governmental subdivision or 32 32 agency if an interment of the person's ancestor exists on 32 33 property owned by another person within the jurisdiction of 32 34 the governmental subdivision or agency. The owner of the 32 35 property shall be notified by the governmental subdivision or 33 1 agency that the interment exists and that the owner must 33 2 permit the person reasonable ingress and egress for the 33 3 purposes of visiting the interment space of the person's 33 4 ancestor. 33 5 b. Pursuant to section 558.69, a declaration of value 33 6 submitted to a county recorder pursuant to chapter 428A shall 33 7 also include information concerning the existence of any known 33 8 private interment space situated on the property. 33 9 6. DISCOVERY OF HUMAN REMAINS. Any person discovering 33 10 human remains shall notify the county or state medical 33 11 examiner or a city, county, or state law enforcement agency as 33 12 soon as is reasonably possible unless the person knows or has 33 13 good reason to believe that such notice has already been given 33 14 or the discovery occurs in a cemetery. If there is reason to 33 15 believe that interment may have occurred more than one hundred 33 16 fifty years earlier, the governmental subdivision or agency 33 17 notified shall also notify the state archeologist. A person 33 18 who does not provide notice required pursuant to this 33 19 subsection commits a serious misdemeanor. 33 20 Sec. 39. NEW SECTION. 523I.808 COMPLIANCE WITH IOWA 33 21 CONSUMER CREDIT CODE. 33 22 A seller of credit sales agreements pursuant to this 33 23 chapter shall comply with the requirements of chapter 537, and 33 24 is subject to the remedies and penalties provided for in that 33 25 chapter. 33 26 Sec. 40. NEW SECTION. 523I.809 DISCLOSURE REQUIREMENTS. 33 27 1. A cemetery corporation shall disclose, prior to the 33 28 sale of interment rights, whether opening and closing of the 33 29 interment space is included in the purchase of the interment 33 30 rights. If opening and closing services are not included in 33 31 the sale and the cemetery corporation offers opening and 33 32 closing services, the cemetery corporation must disclose that 33 33 the price for this service is subject to change and disclose 33 34 the current prices for opening and closing services provided 33 35 by the cemetery corporation. 34 1 2. The cemetery corporation shall fully disclose all fees 34 2 required for interment, entombment, or inurnment of human 34 3 remains. 34 4 3. A person owning interment rights may sell those rights 34 5 to third parties. The cemetery corporation shall fully 34 6 disclose, in the cemetery corporation's rules, any 34 7 requirements necessary to transfer title of interment rights 34 8 to a third party. 34 9 Sec. 41. NEW SECTION. 523I.810 INSTALLATION OF OUTER 34 10 BURIAL CONTAINERS. 34 11 A cemetery corporation shall provide services necessary for 34 12 the installation of outer burial containers or other similar 34 13 merchandise sold by the cemetery corporation. This section 34 14 shall not require the cemetery corporation to provide for 34 15 opening and closing of interment or entombment space, unless 34 16 an agreement executed by the cemetery corporation expressly 34 17 provides otherwise. 34 18 Sec. 42. NEW SECTION. 523I.811 ACCESS BY FUNERAL 34 19 DIRECTORS. 34 20 A licensed funeral director shall not be denied access by a 34 21 cemetery corporation to conduct a funeral for or to supervise 34 22 interment or disinterment of human remains. 34 23 Sec. 43. NEW SECTION. 523I.812 COUNTY AUDITOR AS 34 24 TRUSTEE. 34 25 1. In the absence of a trustee for care funds, unless 34 26 otherwise provided by law, the care funds shall be placed in 34 27 the hands of the county auditor, who shall receipt for, loan, 34 28 and make annual reports of the care funds. 34 29 2. The county auditor shall not be required to post a 34 30 bond. 34 31 3. The county auditor shall serve without compensation, 34 32 but may, out of the income received, pay all proper items of 34 33 expense incurred in the performance of the auditor's duties as 34 34 trustee, if any. 34 35 4. The county auditor shall make a full report of the 35 1 trustee's actions and trust funds annually in January. The 35 2 net proceeds for care funds received by the county auditor as 35 3 trustee shall be apportioned and credited to each of any 35 4 separate care funds assigned to the auditor. 35 5 5. The county auditor shall turn over the accrued income 35 6 from each care fund annually to the person having control of 35 7 the cemetery. 35 8 Sec. 44. NEW SECTION. 523I.813 MEMORIALS AND 35 9 MEMORIALIZATION. 35 10 1. AUTHORIZATION. A cemetery corporation is entitled to 35 11 determine whether that a person requesting installation of a 35 12 memorial is authorized to do so, to the extent that this can 35 13 be determined from the records of the cemetery corporation, as 35 14 is consistent with the cemetery corporation's rules. The 35 15 owner of an interment space or the owner's agent may authorize 35 16 a memorial dealer or independent third party to perform all 35 17 necessary work related to preparation and installation of a 35 18 memorial. 35 19 2. CONFORMITY WITH CEMETERY CORPORATION RULES. A person 35 20 selling a memorial shall review the rules of the cemetery 35 21 corporation for the cemetery where the memorial is to be 35 22 installed to ensure that the memorial will comply with those 35 23 rules prior to ordering or manufacturing the memorial. 35 24 3. SPECIFICATIONS. Upon request, a cemetery corporation 35 25 shall provide reasonable written specifications and 35 26 instructions governing installation of memorials, which shall 35 27 apply to all installations whether performed by the cemetery 35 28 corporation or another person. The written specifications 35 29 shall include provisions governing hours of installation or 35 30 any other relevant administrative requirements of the 35 31 cemetery. A copy of these specifications and instructions 35 32 shall be provided upon request, without charge, to the owner 35 33 of the interment space, next of kin, or a personal 35 34 representative or agent of the owner, including the person 35 35 installing the memorial. The person installing the memorial 36 1 shall comply with the cemetery corporation's written 36 2 installation specifications and instructions. A cemetery 36 3 corporation shall not adopt or enforce any rule prohibiting 36 4 the installation of a memorial by a memorial dealer or 36 5 independent third party, unless the rule is adopted and 36 6 enforced uniformly for all memorials installed in the 36 7 cemetery. 36 8 4. WRITTEN NOTICE. A memorial dealer or independent third 36 9 party shall provide the cemetery corporation with at least 36 10 seven days' prior written notice of intent to install a 36 11 memorial at the cemetery, or such lesser notice as the 36 12 cemetery corporation deems acceptable. The notice shall 36 13 contain the full name, address, and relationship of the 36 14 memorial's purchaser to the person interred in the interment 36 15 space or the owner of the interment space, if different. The 36 16 notice shall also contain the color, type, and size of the 36 17 memorial, the material, the inscription, and the full name and 36 18 interment date of the person interred in the interment space. 36 19 5. PREPARATION AND INSTALLATION. 36 20 a. A person installing a memorial shall be responsible to 36 21 the cemetery corporation for any damage caused to the cemetery 36 22 grounds, including roadways, other than normal use during 36 23 installation of the memorial. 36 24 b. Installation work shall cease during any nearby funeral 36 25 procession or committal service. 36 26 c. Installation work shall be done during the cemetery's 36 27 normal weekday hours or at such other times as may be arranged 36 28 with the cemetery corporation. 36 29 d. A memorial must comply with the cemetery corporation's 36 30 rules and regulations for the cemetery. In the event of 36 31 noncompliance, the person installing a memorial is responsible 36 32 for removal of the memorial and shall pay any reasonable 36 33 expenses incurred by the cemetery in connection with the 36 34 memorial's removal. 36 35 e. The cemetery corporation shall, without charge, provide 37 1 information as described on the cemetery's map or plat 37 2 necessary to locate the place where a memorial is to be 37 3 installed and any other essential information the person 37 4 installing the memorial needs to locate the proper interment 37 5 space. 37 6 f. A person installing a memorial shall follow the 37 7 cemetery corporation's instructions regarding the positioning 37 8 of the memorial. 37 9 g. During the excavation, all sod and dirt shall be 37 10 carefully removed with no sod or dirt left on the interment 37 11 space except the amount needed to fill the space between the 37 12 memorial and the adjacent lawn. 37 13 h. A person installing a memorial shall carefully fill in 37 14 any areas around the memorial with topsoil or sand, in 37 15 accordance with the cemetery corporation's written 37 16 instructions. 37 17 i. A person installing a memorial shall remove all 37 18 equipment and any debris which has accumulated during 37 19 installation of the memorial. 37 20 j. A person installing a memorial shall check to see if 37 21 any adjacent memorials have become soiled or dirty during 37 22 installation of the memorial and, if so, clean the adjacent 37 23 memorials. 37 24 k. If the person who is installing a memorial damages any 37 25 cemetery property, the person shall notify the cemetery 37 26 corporation immediately. The person installing the memorial 37 27 shall then repair the damage as soon as possible, upon 37 28 approval by the cemetery corporation. The cemetery 37 29 corporation may require a person installing a memorial to 37 30 provide current proof of workers' compensation insurance as 37 31 required by state law and current proof of liability 37 32 insurance, sufficient to indemnify the cemetery corporation 37 33 against claims resulting from installation of the memorial. 37 34 Proof of liability insurance in an amount of one million 37 35 dollars or more shall preclude the cemetery corporation from 38 1 requiring a person installing a memorial to obtain a 38 2 performance bond. 38 3 l. If a cemetery has an office, a person installing a 38 4 memorial shall immediately leave notice at the cemetery office 38 5 when the memorial has been installed and all work related to 38 6 the installation is complete. 38 7 6. INSPECTION. A cemetery corporation may inspect the 38 8 installation site of a memorial at any time. If the cemetery 38 9 corporation determines that cemetery corporation rules are not 38 10 being followed during the installation, the cemetery 38 11 corporation may order the installation to stop until the 38 12 infraction is corrected. The cemetery corporation shall 38 13 provide written notice to the installer within seven days if 38 14 the cemetery corporation believes that any of the following 38 15 have occurred: 38 16 a. The memorial has not been installed correctly. 38 17 b. The person installing the memorial has damaged property 38 18 at the cemetery. 38 19 c. Other cemetery corporation requirements for 38 20 installation have not been met, such as removal of debris or 38 21 equipment. 38 22 7. LOCATION AND SERVICE CHARGE. A cemetery corporation 38 23 may charge a reasonable service charge for allowing the 38 24 installation of a memorial purchased or obtained from and 38 25 installed by a person other than the cemetery corporation or 38 26 its agents. This service charge shall be based on the 38 27 cemetery corporation's actual labor costs, including fringe 38 28 benefits, of those employees whose normal duty is to inspect 38 29 the installation of memorials, in accordance with generally 38 30 accepted accounting practices. General administrative and 38 31 overhead costs and any other functions not related to actual 38 32 inspection time shall be excluded from the service charge. 38 33 8. FAULTY INSTALLATION. If a memorial sinks, tilts, or 38 34 becomes misaligned within twelve months of its installation 38 35 and the cemetery corporation believes the cause is faulty 39 1 installation, the cemetery corporation shall notify the person 39 2 who installed the memorial in writing and the person who 39 3 installed the memorial shall be responsible to correct the 39 4 damage, unless the damage is caused by inadequate written 39 5 specifications and instructions from the cemetery corporation 39 6 or acts of the cemetery corporation and its agents or 39 7 employees, including but not limited to running a backhoe over 39 8 the memorial, carrying a vault or other heavy equipment over 39 9 the memorial, or opening or closing an interment space 39 10 adjacent to the memorial. 39 11 9. PERPETUAL CARE. A cemetery corporation may require 39 12 contributions from the purchaser of a memorial for perpetual 39 13 care, if a perpetual care fund deposit is uniformly charged on 39 14 every memorial installed in the cemetery. 39 15 Sec. 45. NEW SECTION. 523I.814 INTERMENT, RELOCATION, OR 39 16 DISINTERMENT OF REMAINS. 39 17 1. Unless a decedent has left directions in writing for 39 18 the disposition of the decedent's remains as provided in 39 19 subsection 2, the following persons, in the priority listed, 39 20 shall have the right to control the interment, relocation, or 39 21 disinterment of the decedent's remains within or from a 39 22 cemetery: 39 23 a. The person designated in a written instrument signed by 39 24 the decedent. 39 25 b. The surviving spouse of the decedent. 39 26 c. A surviving adult child of the decedent. 39 27 d. A surviving parent of the decedent. 39 28 e. A surviving adult sibling of the decedent. 39 29 f. Any adult person in the next degree of kinship in the 39 30 order named by law to inherit the estate of the decedent under 39 31 the rules of inheritance for intestate succession. 39 32 2. The written instrument referred to in subsection 1, 39 33 paragraph "a", shall be in substantially the following form: 39 34 DIRECTIONS FOR DISPOSITION OF MY REMAINS 39 35 Name of person whose remains are to be disposed of as 40 1 directed (decedent): 40 2 Address: 40 3 Telephone Number: 40 4 Acceptance of Appointment: (signature of agent) 40 5 Date of Signature: 40 6 SUCCESSORS 40 7 If my agent dies, becomes legally disabled, resigns, or 40 8 refuses to act, I hereby appoint the following persons (each 40 9 to act alone and successively, in the order named) to serve as 40 10 my agent (attorney-in-fact) to control the disposition of my 40 11 remains as authorized by this document: 40 12 First Successor 40 13 Name: 40 14 Address: 40 15 Telephone Number: 40 16 Acceptance of Appointment: (signature of first successor) 40 17 Date of Signature: 40 18 Second Successor 40 19 Name: 40 20 Address: 40 21 Telephone Number: 40 22 Acceptance of Appointment: (signature of second successor) 40 23 Date of Signature: 40 24 DURATION 40 25 This appointment becomes effective upon my death. 40 26 PRIOR APPOINTMENTS REVOKED 40 27 I hereby revoke any prior appointment of any person to 40 28 control the disposition of my remains. 40 29 RELIANCE 40 30 I hereby agree that any cemetery corporation, business 40 31 operating a crematory or columbarium or both, funeral director 40 32 or embalmer, or funeral establishment that receives a copy of 40 33 this document may act under it. Any modification or 40 34 revocation of this document is not effective as to any such 40 35 party until that party receives actual notice of the 41 1 modification or revocation. No such party shall be liable 41 2 because of reliance on a copy of this document. 41 3 ASSUMPTION 41 4 THE AGENT, AND EACH SUCCESSOR AGENT, BY ACCEPTING THIS 41 5 APPOINTMENT, ASSUMES THE OBLIGATIONS PROVIDED IN, AND IS BOUND 41 6 BY THE PROVISIONS OF, SECTION 523I.814. Signed this _____ day 41 7 of _____________, ____. 41 8 3. A written instrument referred to in subsection 1, 41 9 paragraph "a", is legally sufficient if the wording of the 41 10 instrument complies substantially with subsection 2, the 41 11 instrument is properly completed, the instrument is signed by 41 12 the decedent, the agent, and each successor agent, and the 41 13 signature of the decedent is acknowledged. Such written 41 14 instrument may be modified or revoked only by a subsequent 41 15 written instrument that complies with the requirements of this 41 16 subsection. 41 17 4. A person who represents that the person knows the 41 18 identity of a decedent and, in order to procure the interment, 41 19 relocation, or disinterment of the decedent's remains, signs 41 20 an order or statement, other than a death certificate, that 41 21 warrants the identity of the decedent is liable for all 41 22 damages that result, directly or indirectly, from that 41 23 representation. 41 24 5. A person may provide written directions for the 41 25 interment, relocation, or disinterment of the person's own 41 26 remains in a will, prepaid funeral or cemetery contract, or 41 27 written instrument signed and acknowledged by the person. The 41 28 directions may govern the inscription to be placed on a grave 41 29 marker attached to any interment space in which the decedent 41 30 had the right of interment at the time of death and in which 41 31 interment space the decedent is subsequently interred. The 41 32 directions may be modified or revoked only by a subsequent 41 33 writing signed and acknowledged by the person. A person other 41 34 than a decedent who is entitled to control the interment, 41 35 relocation, or disinterment of a decedent's remains under this 42 1 section shall faithfully carry out the directions of the 42 2 decedent to the extent that the decedent's estate or the 42 3 person controlling the interment, relocation, or disinterment 42 4 is financially able to do so. 42 5 6. If the decedent's directions for the interment of the 42 6 decedent's remains are in a will, the directions shall be 42 7 carried out immediately without the necessity of probate. If 42 8 a will is not probated or is declared invalid for testamentary 42 9 purposes, the directions for the interment of the decedent's 42 10 remains are valid to the extent that they have been acted upon 42 11 in good faith. 42 12 7. A cemetery corporation shall not be liable for carrying 42 13 out the written directions of a decedent or the directions of 42 14 any person entitled to control the interment, relocation, or 42 15 disinterment of the decedent's remains. 42 16 8. A dispute among any of the persons listed in subsection 42 17 1 concerning their right to control the interment, relocation, 42 18 or disinterment of a decedent's remains may be resolved by a 42 19 court of competent jurisdiction. A cemetery corporation shall 42 20 not be liable for refusing to accept the decedent's remains, 42 21 relocate or disinter, inter or otherwise dispose of the 42 22 decedent's remains, until the cemetery corporation receives a 42 23 court order or other suitable confirmation that the dispute 42 24 has been resolved or settled. 42 25 9. a. If good cause exists to relocate or disinter 42 26 remains interred in a cemetery, the remains may be removed 42 27 from the cemetery with the written consent of the cemetery 42 28 corporation, the current interment rights owner and the person 42 29 entitled by this section to control the interment, relocation, 42 30 or disinterment of the decedent's remains. 42 31 b. If the consent required by this subsection cannot be 42 32 obtained, the remains may be relocated by permission of the 42 33 district court of the county in which the cemetery is located. 42 34 Before the date of application to the court for permission to 42 35 relocate remains under this subsection, notice must be given 43 1 to the cemetery corporation that operates the cemetery in 43 2 which the remains are interred, each person whose consent is 43 3 required for relocation of the remains under subsection 1, and 43 4 any other person that the court requires to be served. 43 5 c. For the purposes of this subsection, personal notice 43 6 must be given not later than the eleventh day before the date 43 7 of application to the court for permission to relocate the 43 8 remains, or notice by certified mail or restricted certified 43 9 mail must be given not later than the sixteenth day before the 43 10 date of application. 43 11 d. This subsection does not apply to the removal of 43 12 remains from one interment space to another interment space in 43 13 the same cemetery to correct an error, or relocation of the 43 14 remains by the cemetery from an interment space for which the 43 15 purchase price is past due and unpaid, to another suitable 43 16 interment space. 43 17 10. A person who removes remains from a cemetery shall 43 18 keep a record of the removal, and provide a copy to the 43 19 cemetery, that includes all of the following: 43 20 a. The date the remains are removed. 43 21 b. The name of the decedent and age at death if those 43 22 facts can be conveniently obtained. 43 23 c. The place to which the remains are removed. 43 24 d. The name of the cemetery and the location of the 43 25 interment space from which the remains are removed. 43 26 11. A cemetery corporation may disinter and relocate 43 27 remains interred in the cemetery for the purpose of correcting 43 28 an error made by the cemetery corporation. The cemetery 43 29 corporation shall provide written notice to the commissioner 43 30 and to the person by restricted certified mail describing who 43 31 has the right to control the interment, relocation, or 43 32 disinterment of the remains erroneously interred, at the 43 33 person's last known address and sixty days prior to the 43 34 disinterment. The notice shall include the location where the 43 35 disinterment will occur and the location of the new interment 44 1 space. A cemetery corporation is not civilly or criminally 44 2 liable for an erroneously made interment that is corrected in 44 3 compliance with this subsection unless the error was the 44 4 result of gross negligence or intentional misconduct. 44 5 12. To the extent that any provision of section 135.11 or 44 6 chapter 156 or any administrative rule adopted pursuant 44 7 thereto is inconsistent with this, the provisions of this 44 8 section shall apply. 44 9 Sec. 46. NEW SECTION. 523I.815 FEE AND CARE ASSESSMENTS 44 10 AND MAINTENANCE FUNDS AT NONPERPETUAL CARE CEMETERIES. 44 11 1. a. On or after July 1, 2003, a cemetery corporation 44 12 that operates a nonperpetual care cemetery shall, prior to 44 13 selling any interment rights, establish a maintenance fund to 44 14 provide funding for the maintenance of the cemetery. 44 15 Maintenance fund income shall be applied in the manner the 44 16 directors of the cemetery corporation determine is in the best 44 17 interests of the cemetery, provided that, maintenance fund 44 18 income shall be used only for the care described in a 44 19 resolution, bylaw, or other action or instrument establishing 44 20 the maintenance fund, including the general care and 44 21 maintenance of memorials, memorialization, and the cemetery. 44 22 Maintenance fund income may be used for any of the following 44 23 purposes: 44 24 (1) Cutting and trimming lawns, shrubs, and trees at 44 25 reasonable intervals. 44 26 (2) Maintaining drains, water lines, roads, buildings, 44 27 fences, and other structures. 44 28 (3) Maintaining machinery, tools, and equipment. 44 29 (4) Compensating maintenance employees, paying insurance 44 30 premiums, and making payments to employees' pension and 44 31 benefit plans. 44 32 (5) Paying overhead expenses incidental to such payments. 44 33 (6) Paying expenses necessary to maintain ownership, 44 34 transfer, and interment records of the cemetery. 44 35 b. The cemetery corporation's maintenance fund shall be 45 1 established as a separate fund. The principal of the 45 2 maintenance fund is intended to remain available perpetually 45 3 as a funding source for the care of the cemetery. The 45 4 principal of the maintenance fund shall not be reduced 45 5 voluntarily and must remain inviolable, except as provided in 45 6 this section. The cemetery corporation shall maintain the 45 7 principal of the maintenance fund separate from all operating 45 8 funds of the cemetery corporation. 45 9 c. A cemetery corporation shall be responsible for the 45 10 deposit of all moneys required to be placed in the maintenance 45 11 fund. These moneys shall be invested or deposited in a 45 12 financial account or accounts, unless the cemetery is a 45 13 religious cemetery or a cemetery owned or operated by a 45 14 political subdivision of this state. The maintenance fund may 45 15 receive and hold as a part of the maintenance fund or as an 45 16 incident to the maintenance fund any property contributed to 45 17 the maintenance fund. Moneys to be deposited in a maintenance 45 18 funds shall be deposited at a financial institution no later 45 19 than the fifteenth day after the close of the month when the 45 20 cemetery corporation receives the final payment from the 45 21 purchaser. 45 22 d. The maintenance fund and contributions to the 45 23 maintenance fund are for charitable purposes. The care 45 24 financed by the maintenance fund constitutes the discharge of 45 25 a duty due by the cemetery corporation to persons interred and 45 26 to be interred in the cemetery and for the benefit and 45 27 protection of the public by preserving and keeping the 45 28 cemetery from becoming a place of disorder, reproach, and 45 29 desolation in the community in which the cemetery is located. 45 30 e. A contribution to a maintenance fund is not invalid 45 31 because of the following: 45 32 (1) Indefiniteness or uncertainty as to the identity of 45 33 the person designated as a beneficiary in the instrument 45 34 establishing the maintenance fund. 45 35 (2) A violation of the law against perpetuities or the law 46 1 against the suspension of the power of alienation of title to 46 2 or use of property. 46 3 2. A financial institution holding moneys in a maintenance 46 4 fund for a cemetery corporation shall not do any of the 46 5 following: 46 6 a. Be owned, under the control of, or affiliated with a 46 7 cemetery corporation. 46 8 b. Use any funds required to be deposited pursuant to this 46 9 chapter to purchase an interest in a contract or agreement in 46 10 which the cemetery corporation is a party. 46 11 c. Otherwise invest moneys in a maintenance fund, directly 46 12 or indirectly, in a cemetery corporation's business 46 13 operations. 46 14 3. A cemetery corporation shall make reasonable investment 46 15 decisions and properly oversee and manage moneys in a 46 16 maintenance fund. A cemetery corporation shall use the 46 17 judgment and care, under the circumstances then prevailing, 46 18 that a person of prudence, discretion, and intelligence 46 19 exercises in the management of the person's own affairs, 46 20 without speculation in the permanent disposition of the 46 21 person's own funds, to ensure the probable safety of the 46 22 person's capital. The commissioner may take enforcement 46 23 action against a cemetery corporation for a breach of 46 24 fiduciary duty proven under this chapter. 46 25 4. Moneys deposited in a maintenance fund may be 46 26 commingled for investment purposes if separate accounting of 46 27 principal, interest, and income is maintained for each 46 28 cemetery and each deposit includes a detailed listing of the 46 29 amount deposited in trust for each purchaser. A cemetery 46 30 corporation may establish a common maintenance fund for two or 46 31 more cemeteries into which deposits required under this 46 32 chapter are made, provided that separate records of principal 46 33 and income are maintained for each cemetery for the benefit of 46 34 which the common maintenance fund is established. 46 35 5. A cemetery corporation may appoint an independent 47 1 investment adviser to advise the financial institution about 47 2 investment of the moneys in a maintenance fund. 47 3 6. Subject to agreement between the parties, a financial 47 4 institution may receive a reasonable fee from the maintenance 47 5 fund for services performed on behalf of the maintenance fund. 47 6 The maintenance fund shall pay the operation costs and any 47 7 annual audit fees. 47 8 7. All moneys required to be deposited by the cemetery 47 9 corporation shall be deposited in the name of the maintenance 47 10 fund, pursuant to the terms of a written agreement and the 47 11 cemetery corporation shall invest, reinvest, exchange, retain, 47 12 sell, and otherwise manage the maintenance fund for the 47 13 benefit and protection of the cemetery. 47 14 8. This section does not prohibit a cemetery corporation 47 15 from moving moneys in a maintenance fund from one financial 47 16 institution to another. 47 17 9. A cemetery corporation that operates a nonperpetual 47 18 care cemetery shall collect a care assessment equal to or 47 19 greater than the lesser of fifty dollars or twenty percent of 47 20 the gross selling price received by the cemetery corporation 47 21 for the sale of interment rights. The cemetery corporation 47 22 shall also collect a five dollar fee assessment from each 47 23 purchaser of interment rights. The fee assessments collected 47 24 by the cemetery corporation shall be submitted to the 47 25 commissioner no later than April 1 of the calendar year 47 26 following collection and shall be deposited in the insurance 47 27 division's cemetery fund. The care assessments shall be 47 28 deposited in the cemetery corporation's maintenance fund. 47 29 SUBCHAPTER 9 47 30 ACCESS TO CEMETERIES 47 31 Sec. 47. NEW SECTION. 523I.901 ACCESS TO INACTIVE 47 32 CEMETERIES BY HISTORICAL COMMISSIONS AND CEMETERY PRESERVATION 47 33 ASSOCIATIONS. 47 34 1. After reasonable written notice sent to a property 47 35 owner at the property owner's last known address, 48 1 representatives of local historical commissions and 48 2 associations dedicated to the preservation of cemeteries shall 48 3 have an easement for ingress and egress for purposes of 48 4 visiting a cemetery at reasonable times and in a reasonable 48 5 manner and may enter upon the land of a private or family 48 6 cemetery for the purpose of conducting official business. 48 7 2. Entry onto the property to visit a cemetery pursuant to 48 8 subsection 1 shall not unreasonably interfere with the 48 9 enjoyment of the property by the property owner. The property 48 10 owner may specify a reasonable route which visitors to a 48 11 cemetery pursuant to subsection 1 must use in all entries and 48 12 exits from the property. 48 13 Sec. 48. NEW SECTION. 523I.902 ACCESS TO CEMETERIES BY 48 14 INDIVIDUALS – MAINTENANCE BY RELATIVES AND DESCENDANTS. 48 15 1. A person who wishes to visit a cemetery or private 48 16 burial ground for which no public ingress or egress is 48 17 available shall have the right to reasonable ingress and 48 18 egress for the purpose of visiting a cemetery or private 48 19 burial grounds. This right of access extends only to 48 20 visitation during reasonable hours and only for purposes 48 21 usually associated with cemetery visits. 48 22 2. Relatives and descendants of a person interred in a 48 23 cemetery, or a designee, shall have an easement for ingress 48 24 and egress for the purpose of visiting the cemetery at 48 25 reasonable times and in a reasonable manner. 48 26 3. A property owner may specify a reasonable route which 48 27 the visitors must use in all entries and exits from the 48 28 property. If a cemetery is abandoned or otherwise not being 48 29 maintained, relatives or descendants of a person interred in 48 30 the cemetery may ask the property owner to provide for 48 31 reasonable maintenance of the cemetery. 48 32 4. If a property owner fails to care for an occupied 48 33 interment space within two weeks after a request by the 48 34 relatives or decedents of a person interred in the interment 48 35 space, the relatives and descendants of a person interred in 49 1 the interment space, or their designees, shall have the right 49 2 to maintain the occupied interment space. 49 3 Sec. 49. NEW SECTION. 523I.903 ACCESS TO CEMETERIES FOR 49 4 BURIALS AND THE USE OF MOTORIZED VEHICLES OR MAINTENANCE 49 5 EQUIPMENT. 49 6 1. Upon reasonable written notice sent to a property owner 49 7 at the property owner's last known address, a property owner 49 8 shall not unreasonably interfere with access to a cemetery by 49 9 anyone involved with or attending a memorial service or burial 49 10 at the cemetery or involved with the installation of a 49 11 memorial or memorialization. A property owner may specify a 49 12 reasonable route which visitors must use in all entries and 49 13 exits from the property. 49 14 2. The right of ingress and egress provided by this 49 15 subchapter shall include access by motorized vehicles involved 49 16 with funeral and burial processions. If notice to the 49 17 landowner is provided by September 1 of the prior year, the 49 18 right of ingress and egress provided by this subchapter shall 49 19 include access by motorized vehicles and equipment necessary 49 20 for repairs and maintenance. The landowner may specify a 49 21 reasonable route which the visitors must use in all entries 49 22 and exits from the property. 49 23 SUBCHAPTER 10 49 24 GOVERNMENTAL SUBDIVISIONS 49 25 Sec. 50. NEW SECTION. 523I.1001 CEMETERY AUTHORIZED. 49 26 The governing body of a governmental subdivision may 49 27 purchase, establish, operate, enclose, improve, or regulate a 49 28 cemetery. A cemetery owned or operated by a governmental 49 29 subdivision may sell interment rights subject to the 49 30 provisions of this chapter. 49 31 Sec. 51. NEW SECTION. 523I.1002 TRUST FOR CEMETERY. 49 32 1. A governmental subdivision that owns or operates a 49 33 cemetery or has control of cemetery property may act as a 49 34 permanent trustee for the perpetual maintenance of interment 49 35 spaces in the cemetery. 50 1 2. To act as a trustee, a majority of the governmental 50 2 subdivision's governing body must adopt an ordinance or 50 3 resolution stating the governmental subdivision's willingness 50 4 and intention to act as a trustee for the perpetual 50 5 maintenance of cemetery property. When the ordinance or 50 6 resolution is adopted and the trust is accepted, the trust is 50 7 perpetual. 50 8 Sec. 52. NEW SECTION. 523I.1003 AUTHORITY TO RECEIVE 50 9 GIFTS AND DEPOSITS FOR CARE – CERTIFICATES. 50 10 1. A governmental subdivision that is a trustee for the 50 11 perpetual maintenance of a cemetery may adopt reasonable rules 50 12 governing the receipt of a gift or grant from any source. 50 13 2. A governmental subdivision that is a trustee for a 50 14 person shall accept the amount the governmental subdivision 50 15 requires for permanent maintenance of an interment space on 50 16 behalf of that person or a decedent. 50 17 3. A governmental subdivision's acceptance of a deposit 50 18 for permanent maintenance of an interment space constitutes a 50 19 perpetual trust for the designated interment space. 50 20 4. Upon acceptance of a deposit, a governmental 50 21 subdivision's secretary, clerk, or mayor shall issue a 50 22 certificate in the name of the governmental subdivision to the 50 23 trustee or depositor. The certificate shall state all of the 50 24 following: 50 25 a. The depositor's name. 50 26 b. The amount and purpose of the deposit. 50 27 c. The location, with as much specificity as possible, of 50 28 the interment space to be maintained. 50 29 d. Other information required by the governmental 50 30 subdivision. 50 31 5. An individual, association, foundation, or corporation 50 32 that is interested in the maintenance of a neglected cemetery 50 33 in a governmental subdivision's possession and control may 50 34 donate funds to the cemetery's perpetual trust fund to 50 35 beautify and maintain the entire cemetery or burial grounds 51 1 generally. 51 2 Sec. 53. NEW SECTION. 523I.1004 INVESTMENT OF CARE 51 3 FUNDS. 51 4 Notwithstanding section 12B.10, a cemetery corporation 51 5 owned by a governmental subdivision may invest and reinvest 51 6 deposits under this subchapter as set forth in section 51 7 523I.1203. The trustee of the trust funds has a fiduciary 51 8 duty to make reasonable investment decisions and to properly 51 9 oversee and manage the funds entrusted to the trust fund. 51 10 Sec. 54. NEW SECTION. 523I.1005 APPOINTMENT OF SUCCESSOR 51 11 TRUSTEE. 51 12 A district judge of a county in which a cemetery is located 51 13 shall appoint a suitable successor or trustee to faithfully 51 14 execute a trust in accordance with this subchapter if a 51 15 governmental subdivision renounces a trust assumed under this 51 16 subchapter, fails to act as its trustee, a vacancy occurs, or 51 17 the appointment of a successor or trustee is otherwise 51 18 necessary. 51 19 Sec. 55. NEW SECTION. 523I.1006 PRIVATE CARE OF GRAVES. 51 20 This subchapter does not affect the right of a person who 51 21 has an interest in an interment space, or who is related to a 51 22 decedent interred in a cemetery, to beautify or maintain an 51 23 interment space individually or at the person's own expense in 51 24 accordance with reasonable rules established by the 51 25 governmental subdivision. 51 26 SUBCHAPTER 11 51 27 COUNTY CEMETERY COMMISSIONS AND NEGLECTED CEMETERIES 51 28 Sec. 56. NEW SECTION. 523I.1101 NEGLECTED CEMETERIES. 51 29 The commissioner shall create a form that interested 51 30 persons may use to report neglected cemeteries to the 51 31 commissioner and the county board of supervisors. The board 51 32 of supervisors of each county shall accept any neglected 51 33 cemetery report forms filed with the board and submit copies 51 34 of such report forms received during calendar years 2004, 51 35 2005, and 2006 to the commissioner no later than March 1 of 52 1 the year following receipt. The commissioner shall prepare an 52 2 annual summary of the report forms received, organized by 52 3 county. 52 4 Sec. 57. NEW SECTION. 523I.1102 CONDEMNATION OF 52 5 NEGLECTED CEMETERIES. 52 6 1. When a nonreligious cemetery within a county has been 52 7 neglected in whole or in part by the owners, the county may 52 8 acquire title to the cemetery by condemnation proceedings, to 52 9 be instituted and conducted in the manner prescribed in the 52 10 statutes providing for the exercise of the power of eminent 52 11 domain by counties. A court with jurisdiction over such 52 12 proceedings may, in its discretion, require the county to 52 13 acquire the entire cemetery, in which event the county may use 52 14 such part of the cemetery as may be necessary for its purposes 52 15 and sell the residue. Upon a showing of good cause, the court 52 16 may direct that, if possible, remains interred in the cemetery 52 17 be removed to another cemetery. 52 18 2. In the event that the proceeds from the condemnation 52 19 proceedings are insufficient to defray the costs of the suit 52 20 and removal and reinterment of the remains, then any 52 21 additional funds needed shall be paid by the county 52 22 instituting the suit. After payment of proper costs, any 52 23 residue of the proceeds shall be paid to the parties entitled 52 24 thereto. If there are any unknown parties who are entitled to 52 25 a portion of the proceeds, the county shall hold such amount 52 26 in trust for those parties, without any accrual of interest or 52 27 income. If any amount held in trust is not claimed within 52 28 seven years from the date of condemnation or sale of the 52 29 cemetery, or a portion thereof, title to the unclaimed funds 52 30 shall pass pursuant to the statute of escheats. 52 31 Sec. 58. NEW SECTION. 523I.1103 REMOVAL OF REMAINS. 52 32 1. Upon a showing of good cause, a county cemetery 52 33 commission may file suit in a district court in that county to 52 34 have remains interred in a cemetery owned and operated by the 52 35 commission removed to another cemetery. All persons in 53 1 interest, known or unknown, other than the plaintiffs, shall 53 2 be made defendants to the suit. If any parties are unknown, 53 3 notice may be given by publication. After hearing and a 53 4 showing of good cause for the removal, the court may order the 53 5 removal of the remains and the remains shall be properly 53 6 interred in another cemetery, at the expense of the county. 53 7 The removal and reinterment of the remains shall be done 53 8 pursuant to a disinterment permit issued under section 144.34 53 9 with due care and decency. 53 10 2. In deciding whether to order the removal of interred 53 11 remains, a court shall consider present or future access to 53 12 the cemetery, the historical significance of the cemetery, and 53 13 the wishes of the parties concerned if they are brought to the 53 14 court's attention, including the desire of any beneficiaries 53 15 to reserve their rights to waive a reservation of rights in 53 16 favor of removal, and shall exercise the court's sound 53 17 discretion in granting or refusing the removal of interred 53 18 remains. 53 19 3. Any heir at law or descendent of a deceased person 53 20 interred in a neglected cemetery may file suit in a district 53 21 court in the county where the cemetery is located, to have the 53 22 deceased person's remains interred in the cemetery removed to 53 23 another cemetery. The owner of the land, any beneficiaries of 53 24 any reservation of rights, and any other persons in interest, 53 25 known or unknown, other than the plaintiffs shall be made 53 26 defendants. If any parties are unknown, notice may be given 53 27 by publication. After hearing and upon a showing of good 53 28 cause, the court may order removal and the proper interment of 53 29 the remains in another cemetery, at the expense of the 53 30 petitioner. The removal and reinterment shall be done with 53 31 due care and decency. 53 32 SUBCHAPTER 12 53 33 PERPETUAL CARE CEMETERIES 53 34 Sec. 59. NEW SECTION. 523I.1201 APPLICABILITY. 53 35 1. All cemeteries are designated as either "perpetual care 54 1 cemeteries" or "nonperpetual care cemeteries" for the purposes 54 2 of this chapter. 54 3 2. A cemetery corporation organized or commencing business 54 4 in this state on or after July 1, 1995, shall operate as a 54 5 perpetual care cemetery and is subject to this subchapter. 54 6 3. A cemetery corporation that represents that it is 54 7 offering perpetual care is subject to this subchapter. 54 8 4. A cemetery corporation that operates a nonperpetual 54 9 care cemetery may elect to become a perpetual care cemetery by 54 10 complying with the terms of section 523I.1202, if at all times 54 11 subsequent to the date of the election, the cemetery 54 12 corporation complies with the other requirements of this 54 13 subchapter except section 523I.1203, subsection 1. 54 14 Sec. 60. NEW SECTION. 523I.1202 TRUST AGREEMENT – 54 15 IRREVOCABLE TRUST. 54 16 1. A cemetery corporation operating as a perpetual care 54 17 cemetery shall execute a trust instrument and establish an 54 18 irrevocable trust fund to provide for the care and maintenance 54 19 of the cemetery. 54 20 2. The trust agreement shall provide for the appointment 54 21 of at least one trustee, with perpetual succession, in case 54 22 the cemetery corporation is dissolved or ceases to be 54 23 responsible for the cemetery's care and maintenance. 54 24 3. A cemetery corporation and the trustee or trustees of 54 25 the trust fund may, by agreement, amend the instrument that 54 26 established the fund to include any provision that is 54 27 necessary to comply with the requirements of this chapter. 54 28 4. A cemetery corporation shall be responsible for the 54 29 deposit of all moneys required to be placed in a trust fund. 54 30 5. The commissioner may require amendments to a trust 54 31 agreement that is not in accord with the provisions of this 54 32 chapter. 54 33 Sec. 61. NEW SECTION. 523I.1203 TRUST FUND REQUIREMENTS. 54 34 1. A religious cemetery or a cemetery owned or operated by 54 35 a political subdivision of this state is not required to make 55 1 a minimum initial deposit in a trust fund. A cemetery 55 2 corporation organized or commencing business in this state on 55 3 or after July 1, 1995, shall not commence operations as a 55 4 perpetual care cemetery unless the cemetery corporation has a 55 5 trust fund of at least twenty-five thousand dollars in cash. 55 6 2. If an initial deposit is made by a cemetery corporation 55 7 to satisfy subsection 1, the initial twenty-five thousand 55 8 dollar deposit may be withdrawn by the cemetery corporation 55 9 when the trust fund balance reaches one hundred thousand 55 10 dollars. An affidavit shall be filed with the commissioner 55 11 providing prior notice of the intended withdrawal of the 55 12 initial deposit and attesting that the money has not 55 13 previously been withdrawn. Upon a showing by the cemetery 55 14 corporation that the initial deposit has not previously been 55 15 withdrawn, the commissioner shall approve withdrawal of the 55 16 money and the withdrawal shall take place within one year 55 17 after the trust fund balance reaches one hundred thousand 55 18 dollars. 55 19 3. The trust fund shall be administered under the 55 20 jurisdiction of the district court of the county where the 55 21 cemetery is located. Notwithstanding chapter 633, annual 55 22 reports shall not be required unless specifically required by 55 23 the district court. Reports shall be filed with the court 55 24 when necessary to receive approval of appointments of 55 25 trustees, trust agreements and amendments, changes in fees or 55 26 expenses, and other matters within the court's jurisdiction. 55 27 A court having jurisdiction over a trust fund shall have full 55 28 jurisdiction to approve the appointment of trustees, the 55 29 amount of surety bond required, and investment of funds. 55 30 4. A trust fund must be established at a financial 55 31 institution, unless the cemetery is a religious cemetery or a 55 32 cemetery owned or operated by a governmental subdivision of 55 33 this state. 55 34 a. A financial institution may serve as a trustee if 55 35 granted those powers under the laws of this state or of the 56 1 United States. A financial institution acting as a trustee of 56 2 trust funds under this chapter shall invest the funds in 56 3 accordance with applicable law. 56 4 b. A financial institution acting as a trustee of trust 56 5 funds under this chapter has a fiduciary duty to make 56 6 reasonable investment decisions and to properly oversee and 56 7 manage the funds entrusted to the financial institution. A 56 8 trustee shall use the judgment and care, under the 56 9 circumstances then prevailing, that a person of prudence, 56 10 discretion, and intelligence exercises in the management of 56 11 the person's own affairs, without speculation, in the 56 12 permanent disposition of a person's own funds to ensure the 56 13 probable safety of the person's capital. The commissioner may 56 14 take enforcement action against a financial institution in its 56 15 capacity as trustee for a breach of fiduciary duty proven 56 16 under this chapter. 56 17 c. Moneys deposited under a master trust agreement may be 56 18 commingled by the financial institution for investment 56 19 purposes if separate accounting of principal, interest, and 56 20 income is maintained for each cemetery and each deposit 56 21 includes a detailed listing of the amount deposited in trust 56 22 for each purchaser. The trustors of two or more care funds 56 23 may establish a common trust fund in which deposits required 56 24 under this chapter are made, provided that separate records of 56 25 principal and income are maintained for each perpetual care 56 26 cemetery for the benefit of which the common trust fund is 56 27 established. 56 28 d. Subject to a master trust agreement, the cemetery 56 29 corporation may appoint an independent investment adviser to 56 30 advise the financial institution about investment of the trust 56 31 fund. 56 32 e. Subject to an agreement between the cemetery 56 33 corporation and the financial institution, the financial 56 34 institution may receive a reasonable fee from the trust fund 56 35 for services rendered as trustee. The trust fund shall pay 57 1 the trust operation costs and any annual audit fees. 57 2 f. If the amount of the trust funds exceeds two hundred 57 3 thousand dollars, the cemetery corporation or any officer, 57 4 director, agent, employee, or affiliate of the cemetery 57 5 corporation shall not serve as trustee unless the cemetery is 57 6 a religious cemetery or a cemetery owned or operated by a 57 7 governmental subdivision of this state. A financial 57 8 institution holding trust funds shall not do any of the 57 9 following: 57 10 (1) Be owned, under the control of, or affiliated with a 57 11 cemetery corporation. 57 12 (2) Use any funds required to be held in trust under this 57 13 chapter to purchase an interest in a contract or agreement in 57 14 which the cemetery corporation is a party. 57 15 (3) Otherwise invest trust funds, directly or indirectly, 57 16 in a cemetery corporation's business operations. 57 17 5. Moneys shall be deposited in the trust fund no later 57 18 than the fifteenth day after the close of the month when the 57 19 cemetery corporation receives the final payment from a 57 20 purchaser of interment rights in an amount equal to or greater 57 21 than either of the following: 57 22 a. The greater of fifty dollars or twenty percent of the 57 23 gross selling price received by the cemetery for the sale of 57 24 interment rights. 57 25 b. The amount charged for the perpetual care and special 57 26 care of a memorial or memorialization placed in the cemetery. 57 27 A fee for memorial care shall be uniformly charged on every 57 28 installation of a memorial in the cemetery based upon the size 57 29 of the memorial, using the height and width of the memorial or 57 30 the size of the ground surface area used for the memorial. A 57 31 fee for special care of a memorial may be collected if the 57 32 terms of the special care items and arrangements are clearly 57 33 specified in the interment rights purchase agreement. A 57 34 cemetery corporation's liability for acts of God and vandalism 57 35 is limited to income available from the care fund. 58 1 6. All moneys required to be deposited in the trust fund 58 2 by the cemetery corporation shall be deposited in the name of 58 3 the trustee, as trustee, under the terms of a trust agreement 58 4 and the trustee may invest, reinvest, exchange, retain, sell, 58 5 and otherwise manage the trust for the benefit and protection 58 6 of the cemetery. 58 7 7. This section does not prohibit a cemetery corporation 58 8 from moving trust funds from one financial institution to 58 9 another. 58 10 8. A trust fund may receive and hold as a part of the fund 58 11 or as an incident to the fund any property contributed to the 58 12 fund. 58 13 9. The trust fund and contributions to the trust fund are 58 14 for charitable purposes. The care financed by the fund is for 58 15 the following purposes: 58 16 a. The discharge of a duty due from the cemetery 58 17 corporation to persons interred and to be interred in the 58 18 cemetery. 58 19 b. The benefit and protection of the public by preserving 58 20 and keeping the cemetery in a dignified condition so that the 58 21 cemetery does not become a nuisance or a place of disorder, 58 22 reproach, and desolation in the community in which the 58 23 cemetery is located. 58 24 10. A contribution to a trust fund is not invalid because 58 25 of any of the following: 58 26 a. Indefiniteness or uncertainty as to the person 58 27 designated as a beneficiary in the instrument establishing the 58 28 fund. 58 29 b. A violation of the law against perpetuities or the law 58 30 against the suspension of the power of alienation of title to 58 31 or use of property. 58 32 Sec. 62. NEW SECTION. 523I.1204 PURPOSES OF CARE FUND. 58 33 1. The principal of a care fund is intended to remain 58 34 available perpetually as a funding source for care of the 58 35 cemetery. The principal of the fund shall not be reduced 59 1 voluntarily and shall remain inviolable, except as provided in 59 2 this section. The trustee or trustees of the care fund shall 59 3 maintain the principal of the care fund separate from all 59 4 operating funds of the cemetery corporation. 59 5 2. In establishing a care fund, the cemetery corporation 59 6 may adopt plans for the care of the cemetery and installed 59 7 memorials and memorialization. 59 8 3. A cemetery corporation may, by resolution adopted by a 59 9 vote of at least two-thirds of the members of its board at any 59 10 authorized meeting of the board, authorize the withdrawal and 59 11 use of not more than twenty percent of the principal of the 59 12 care fund to acquire additional land for cemetery purposes, to 59 13 repair a mausoleum or other building or structure intended for 59 14 cemetery purposes, or to build, improve, or repair roads and 59 15 walkways in the cemetery. The resolution shall establish a 59 16 reasonable repayment schedule, not to exceed five years, and 59 17 provide for interest in an amount comparable to the care 59 18 fund's current rate of return on its investments. However, 59 19 the care fund shall not be diminished below an amount equal to 59 20 the greater of one hundred thousand dollars or five thousand 59 21 dollars per acre of land in the cemetery. The resolution, and 59 22 either a bond or proof of insurance to guarantee replenishment 59 23 of the care fund, shall be filed with the commissioner thirty 59 24 days prior to the withdrawal of funds. 59 25 Sec. 63. NEW SECTION. 523I.1205 USE OF CARE FUND INCOME 59 26 AND CAPITAL GAINS. 59 27 1. Care fund income may be used in a manner determined by 59 28 the directors of the cemetery corporation to be in the best 59 29 interests of the cemetery, provided that care fund income 59 30 shall be used only for care that is described in a resolution, 59 31 bylaw, or other action or instrument establishing the fund, 59 32 including the general care and maintenance of memorials, 59 33 memorialization, and the cemetery. Fund income may be used 59 34 for any of the following purposes: 59 35 a. Cutting and trimming lawns, shrubs, and trees at 60 1 reasonable intervals. 60 2 b. Maintaining drains, water lines, roads, buildings, 60 3 fences, and other structures. 60 4 c. Maintaining machinery, tools, and equipment. 60 5 d. Compensating maintenance employees, paying insurance 60 6 premiums, and making payments to employees' pension and 60 7 benefit plans. 60 8 e. Paying overhead expenses incidental to such purposes. 60 9 f. Paying expenses necessary to maintain ownership, 60 10 transfer, and interment records of the cemetery corporation. 60 11 2. A cemetery corporation may, by amending the cemetery 60 12 corporation trust agreement, elect to withdraw capital gains 60 13 from the care fund, subject to the following conditions: 60 14 a. The amount of principal in the care fund shall be 60 15 adjusted annually by allocating income or capital gains as 60 16 necessary to adjust the principal of the care fund for 60 17 inflation, based on the consumer price index as set by the 60 18 commissioner and the amount of principal in the care fund at 60 19 the beginning of the prior year. The amount of principal in 60 20 the care fund shall also be adjusted by adding the amount of 60 21 the deposits received during the prior year, as required by 60 22 section 523I.1203, subsection 5. 60 23 b. For purposes of this section, "adjusted basis" means 60 24 the total of the market value of the care fund on the date of 60 25 the conversion, the aggregate amount of the inflation 60 26 adjustments required by this section, and the aggregate amount 60 27 of deposits received as required by section 523I.1203, 60 28 subsection 5, since the date of the conversion. 60 29 c. If the adjusted basis of the care fund is more than the 60 30 market value of the care fund at the end of the prior year, 60 31 the cemetery corporation shall not withdraw capital gains. If 60 32 the adjusted basis of the care fund is less than the market 60 33 value of the care fund at the end of the prior year, an amount 60 34 equal to fifty percent of the excess may be withdrawn and used 60 35 for the cemetery's care. 61 1 Sec. 64. NEW SECTION. 523I.1206 SUIT BY OWNERS OR 61 2 COMMISSIONER. 61 3 1. If the directors of a cemetery corporation do not care 61 4 for and maintain the cemetery, the district court of the 61 5 county in which the cemetery is located may do the following: 61 6 a. By injunction compel the directors to expend the net 61 7 income of the care fund as required by this chapter. 61 8 b. Appoint a receiver to take charge of the care fund and 61 9 expend the net income of the care fund as required by this 61 10 chapter. 61 11 2. Grant relief on a petition for relief filed pursuant to 61 12 this section by the commissioner or by at least five owners of 61 13 interment rights in the cemetery. 61 14 Sec. 65. NEW SECTION. 523I.1207 ADVERTISING. 61 15 1. A cemetery corporation shall not advertise, represent, 61 16 guarantee, promise, or contract to provide or offer perpetual 61 17 care or use terms or phrases like permanent care, permanent 61 18 maintenance, care forever, continuous care, eternal care, or 61 19 everlasting care to imply that a certain level of care and 61 20 financial security will be furnished or is guaranteed except 61 21 in compliance with the provisions of this subchapter. 61 22 2. A cemetery corporation or person advertising or selling 61 23 interment rights shall not represent that the purchase of the 61 24 interment rights is or will be a desirable speculative 61 25 investment for resale purposes. 61 26 Sec. 66. NEW SECTION. 523I.1208 PERPETUAL CARE REGISTRY. 61 27 1. A cemetery corporation that operates a perpetual care 61 28 cemetery shall maintain a registry of individuals who have 61 29 purchased interment rights in the cemetery subject to the 61 30 trust fund requirements of this subchapter. 61 31 2. The registry shall include the amount deposited in 61 32 trust for each interment rights agreement entered into on or 61 33 after July 1, 1995. 61 34 Sec. 67. NEW SECTION. 523I.1209 USE OF GIFT FOR SPECIAL 61 35 CARE. 62 1 A trustee may accept and hold money or property transferred 62 2 to the trustee in trust for the purpose of applying the 62 3 principal or income of the money or property transferred for a 62 4 purpose consistent with the purpose of a perpetual care 62 5 cemetery, including the following: 62 6 1. Improvement or embellishment of any part of the 62 7 cemetery. 62 8 2. Erection, renewal, repair, or preservation of a 62 9 monument, fence, building, or other structure in the cemetery. 62 10 3. Planting or cultivation of plants in or around the 62 11 cemetery. 62 12 4. Special care of or embellishment of an interment space, 62 13 section, or building in the cemetery. 62 14 Sec. 68. NEW SECTION. 523I.1210 GOVERNMENTAL 62 15 SUBDIVISIONS. 62 16 A governmental subdivision subject to this section may 62 17 commingle care funds for the purposes of investment and 62 18 administration and may file a single report, if each cemetery 62 19 is appropriately identified and separate records are 62 20 maintained for each cemetery. 62 21 Sec. 69. NEW SECTION. 523I.1211 ANNUAL REPORT BY 62 22 PERPETUAL CARE CEMETERIES. 62 23 1. A cemetery corporation that operates a perpetual care 62 24 cemetery corporation shall file a written report at the end of 62 25 each fiscal year of the cemetery that includes the following: 62 26 a. The name and address of the cemetery. 62 27 b. The name and address of the cemetery corporation. 62 28 c. An affidavit that the cemetery is in compliance with 62 29 this chapter. 62 30 d. Copies of all sales agreement forms used by the 62 31 cemetery. 62 32 e. The amount of the principal of the cemetery 62 33 corporation's care funds at the end of the fiscal year. 62 34 f. The number of interments made and interment spaces sold 62 35 during the fiscal year. 63 1 2. The report and a five-dollar filing fee for each 63 2 certificate of interment rights issued during the fiscal year 63 3 of the cemetery shall be filed with the commissioner within 63 4 four months following the end of the cemetery corporation's 63 5 fiscal year in the form required by the commissioner. The 63 6 filing fee may be charged directly to the purchaser of the 63 7 interment rights. 63 8 Sec. 70. NEW SECTION. 523I.1212 UNIFIED ANNUAL REPORTS. 63 9 The commissioner shall permit the filing of a unified 63 10 report in the event of commonly owned or affiliated 63 11 cemeteries. 63 12 SUBCHAPTER 13 63 13 FRAUDULENT PRACTICES 63 14 Sec. 71. NEW SECTION. 523I.1301 MISLEADING FILINGS. 63 15 It is unlawful for a person to make or cause to be made, in 63 16 any document filed with the commissioner, or in any proceeding 63 17 under this chapter, any statement of material fact which is, 63 18 at the time and in the light of the circumstances under which 63 19 it is made, false or misleading, or, in connection with such 63 20 statement, to omit to state a material fact necessary in order 63 21 to make the statements made, in the light of the circumstances 63 22 under which they are made, not misleading. 63 23 Sec. 72. NEW SECTION. 523I.1302 MISREPRESENTATIONS OF 63 24 GOVERNMENT APPROVAL. 63 25 It is unlawful for a seller under this chapter to represent 63 26 or imply in any manner that the seller has been sponsored, 63 27 recommended, or approved, or that the seller's abilities or 63 28 qualifications have in any respect been passed upon by the 63 29 commissioner. 63 30 Sec. 73. NEW SECTION. 523I.1303 FRAUDULENT PRACTICES. 63 31 A person who commits any of the following acts commits a 63 32 fraudulent practice and is punishable as provided in chapter 63 33 714: 63 34 1. Knowingly fails to comply with any requirement of this 63 35 chapter. 64 1 2. Knowingly makes, causes to be made, or subscribes to a 64 2 false statement or representation in a report or other 64 3 document required under this chapter, implementing rules, or 64 4 orders, or renders such a report or document misleading 64 5 through the deliberate omission of information properly 64 6 belonging in the report or document. 64 7 3. Conspires to defraud in connection with the sale of 64 8 memorials, memorialization, opening and closing services, 64 9 scattering services, interment rights, or a combination 64 10 thereof under this chapter. 64 11 4. Fails to deposit funds under section 523I.815 or 64 12 section 523I.1203 or withdraws funds in a manner inconsistent 64 13 with this chapter. 64 14 5. Knowingly sells memorials, memorialization, opening and 64 15 closing services, scattering services, interment rights, or a 64 16 combination thereof without the permits required under this 64 17 chapter. 64 18 6. Deliberately misrepresents or omits a material fact 64 19 relative to the sale of memorials, memorialization, opening 64 20 and closing services, scattering services, interment rights, 64 21 or a combination thereof. 64 22 SUBCHAPTER 14 64 23 ADMINISTRATION AND ENFORCEMENT 64 24 Sec. 74. NEW SECTION. 523I.1401 ADMINISTRATION. 64 25 1. This chapter shall be administered by the commissioner. 64 26 The deputy administrator appointed pursuant to section 502.601 64 27 shall be the principal operations officer responsible to the 64 28 commissioner for the routine administration of this chapter 64 29 and management of the administrative staff. In the absence of 64 30 the commissioner, whether because of vacancy in the office due 64 31 to absence, physical disability, or other cause, the deputy 64 32 administrator shall, for the time being, have and exercise the 64 33 authority conferred upon the commissioner. The commissioner 64 34 may by order from time to time delegate to the deputy 64 35 administrator any or all of the functions assigned to the 65 1 commissioner in this chapter. The deputy administrator shall 65 2 employ officers, attorneys, accountants, and other employees 65 3 as needed for administering this chapter. 65 4 2. It is unlawful for the commissioner or any 65 5 administrative staff to use for personal benefit any 65 6 information which is filed with or obtained by the 65 7 commissioner and which is not made public. This chapter does 65 8 not authorize the commissioner or any staff member to disclose 65 9 any such information except among themselves or to other 65 10 cemetery and funeral administrators, regulatory authorities, 65 11 or governmental agencies, or when necessary and appropriate in 65 12 a proceeding or investigation under this chapter or as 65 13 required by chapter 22. This chapter neither creates nor 65 14 derogates any privileges that exist at common law or otherwise 65 15 when documentary or other evidence is sought under a subpoena 65 16 directed to the commissioner or any administrative staff. 65 17 Sec. 75. NEW SECTION. 523I.1402 SCOPE. 65 18 1. This chapter applies to cemeteries, to any person 65 19 advertising or offering memorials, memorialization, opening 65 20 and closing services, scattering services at a cemetery, 65 21 interment rights, or a combination thereof for sale, and to 65 22 interments made in areas not dedicated as a cemetery by a 65 23 person other than the state archaeologist. 65 24 2. This chapter applies when a purchase agreement is 65 25 executed within this state or an advertisement, promotion, or 65 26 offer to furnish memorials, memorialization, opening and 65 27 closing services, scattering services, interment rights, or a 65 28 combination thereof is made or accepted within this state. An 65 29 offer to furnish memorials, memorialization, opening and 65 30 closing services, scattering services, interment rights, or a 65 31 combination thereof is made within this state, whether or not 65 32 either party is then present in this state, when the offer 65 33 originates from this state or is directed by the offeror to 65 34 this state and received by the offeree in this state through 65 35 the mail, over the telephone, by the internet, or through any 66 1 other means of commerce. 66 2 3. If a foreign person does not have a registered agent or 66 3 agents in the state of Iowa, doing business within this state 66 4 shall constitute the person's appointment of the secretary of 66 5 state of the state of Iowa to be its true and lawful attorney 66 6 upon whom may be served all lawful process of original notice 66 7 in actions or proceedings arising or growing out of any 66 8 contract or tort. 66 9 Sec. 76. NEW SECTION. 523I.1403 INVESTIGATIONS AND 66 10 SUBPOENAS. 66 11 1. The commissioner may, for the purpose of discovering 66 12 violations of this chapter, or implementing rules or orders 66 13 issued under this chapter: 66 14 a. Make such public or private investigations within or 66 15 outside of this state as the commissioner deems necessary to 66 16 determine whether any person has violated or is about to 66 17 violate this chapter, implementing rules, or orders issued 66 18 under this chapter, or to aid in enforcement of this chapter, 66 19 or in the prescribing of rules and forms under this chapter. 66 20 b. Require or permit any person to file a statement in 66 21 writing, under oath or otherwise as the commissioner or 66 22 attorney general determines, as to all the facts and 66 23 circumstances concerning the matter to be investigated. 66 24 c. Notwithstanding chapter 22, keep confidential the 66 25 information obtained in the course of an investigation. 66 26 However, if the commissioner determines that it is necessary 66 27 or appropriate in the public interest or for the protection of 66 28 the public, the commissioner may share information with other 66 29 administrators, regulatory authorities, or governmental 66 30 agencies, or may publish information concerning a violation of 66 31 this chapter, implementing rules, or orders issued under this 66 32 chapter. 66 33 d. Investigate the cemetery corporation and examine the 66 34 books, accounts, papers, correspondence, memoranda, purchase 66 35 agreements, files, or other documents or records used by every 67 1 applicant and permit holder under this chapter. 67 2 e. Administer oaths and affirmations, subpoena witnesses, 67 3 compel their attendance, take evidence, and require the 67 4 production of any books, accounts, papers, correspondence, 67 5 memoranda, purchase agreements, files, or other documents or 67 6 records which the commissioner deems relevant or material to 67 7 any investigation or proceeding under this chapter and 67 8 implement rules, all of which may be enforced under chapter 67 9 17A. 67 10 f. Apply to the district court for an order requiring a 67 11 person's appearance before the commissioner or attorney 67 12 general, or a designee of either or both, in cases where the 67 13 person has refused to obey a subpoena issued by the 67 14 commissioner or attorney general. The person may also be 67 15 required to produce documentary evidence germane to the 67 16 subject of the investigation. Failure to obey a court order 67 17 under this subsection constitutes contempt of court. 67 18 2. The commissioner may issue and bring an action in 67 19 district court to enforce subpoenas within this state at the 67 20 request of an agency or administrator of another state, if the 67 21 activity constituting an alleged violation for which the 67 22 information is sought would be a violation of this chapter had 67 23 the activity occurred in this state. 67 24 Sec. 77. NEW SECTION. 523I.1404 MEDIATION. 67 25 1. The commissioner may order a cemetery corporation to 67 26 participate in mediation in any dispute regarding a purchase 67 27 agreement. Mediation performed under this section shall be 67 28 conducted by a mediator appointed by the commissioner and 67 29 shall comply with the provisions of chapter 679C. 67 30 2. Mediation of disputes pursuant to subsection 1 shall 67 31 include attendance at a mediation session with a mediator and 67 32 the parties to the dispute, listening to the mediator's 67 33 explanation of the mediation process by the mediator, 67 34 presentation of each party's view of the dispute, and 67 35 listening to the response by the other party. Participation 68 1 in mediation does not require that the parties reach a 68 2 mediation agreement. 68 3 3. Parties to the mediation shall have the right to advice 68 4 and presence of counsel at all times. The parties to the 68 5 mediation shall present any mediation agreement reached 68 6 through the mediation to the commissioner. If a mediation 68 7 agreement is not reached, the mediator shall file a report 68 8 with the commissioner. The costs of the mediation shall be 68 9 approved by the commissioner and shall be borne by the 68 10 insurance division's cemetery fund created pursuant to section 68 11 523I.1413. 68 12 Sec. 78. NEW SECTION. 523I.1405 CEASE AND DESIST ORDERS 68 13 – INJUNCTIONS. 68 14 If it appears to the commissioner that a person has engaged 68 15 or is about to engage in an act or practice constituting a 68 16 violation of this chapter, or implementing rules or orders 68 17 issued under this chapter, the commissioner or the attorney 68 18 general may do any of the following: 68 19 1. Issue a summary order directed to the person that 68 20 requires the person to cease and desist from engaging in such 68 21 act or practice. A person may request a hearing within thirty 68 22 days of issuance of the summary order. If a hearing is not 68 23 timely requested, the summary order shall become final by 68 24 operation of law. The order shall remain effective from the 68 25 date of issuance until the date the order becomes final by 68 26 operation of law or is overturned by a presiding officer 68 27 following a request for hearing. Section 17A.18A is 68 28 inapplicable to summary cease and desist orders issued under 68 29 this section. 68 30 2. Bring an action in the district court in any county of 68 31 the state for an injunction to restrain a person subject to 68 32 this chapter and any agents, employees, or associates of the 68 33 person from engaging in conduct or practices deemed contrary 68 34 to the public interest. In any proceeding for an injunction, 68 35 the commissioner or attorney general may apply to the court 69 1 for a subpoena to require the appearance of a defendant and 69 2 the defendant's agents, employees, or associates and for the 69 3 production of any books, accounts, papers, correspondence, 69 4 memoranda, purchase agreements, files, or other documents or 69 5 records germane to the hearing upon the petition for an 69 6 injunction. Upon a proper showing, a permanent or temporary 69 7 injunction, restraining order, or writ of mandamus shall be 69 8 granted and a receiver may be appointed for the defendant or 69 9 the defendant's assets. The commissioner or attorney general 69 10 shall not be required to post a bond. 69 11 Sec. 79. NEW SECTION. 523I.1406 COURT ACTION FOR FAILURE 69 12 TO COOPERATE. 69 13 1. If a person fails or refuses to file a statement or 69 14 report or to produce any books, accounts, papers, 69 15 correspondence, memoranda, purchase agreements, files, or 69 16 other documents or records, or to obey a subpoena issued by 69 17 the commissioner, the commissioner may refer the matter to the 69 18 attorney general, who may apply to a district court to enforce 69 19 compliance. The court may order any or all of the following: 69 20 a. Injunctive relief restricting or prohibiting the offer 69 21 or sale of memorials, memorialization, opening and closing 69 22 services, scattering services, interment rights, or a 69 23 combination thereof. 69 24 b. Revocation or suspension of a permit issued under this 69 25 chapter. 69 26 c. Production of documents or records including but not 69 27 limited to books, accounts, papers, correspondence, memoranda, 69 28 purchase agreements, files, or other documents or records. 69 29 d. Such other relief as may be required. 69 30 2. A court order issued pursuant to subsection 1 is 69 31 effective until the person files the statement or report or 69 32 produces the documents requested, or obeys the subpoena. 69 33 Sec. 80. NEW SECTION. 523I.1407 PROSECUTION FOR 69 34 VIOLATIONS OF LAW. 69 35 1. A violation of this chapter or rules adopted or orders 70 1 issued under this chapter is a violation of section 714.16, 70 2 subsection 2, paragraph "a". The remedies and penalties 70 3 provided by section 714.16, including but not limited to 70 4 injunctive relief and penalties, apply to violations of this 70 5 chapter. 70 6 2. If the commissioner believes that grounds exist for the 70 7 criminal prosecution of persons subject to this chapter for 70 8 violations of this chapter or any other law of this state, the 70 9 commissioner may forward to the attorney general or the county 70 10 attorney the grounds for the belief, including all evidence in 70 11 the commissioner's possession, so that the attorney general or 70 12 the county attorney may proceed with the matter as deemed 70 13 appropriate. At the request of the attorney general, the 70 14 county attorney shall appear and prosecute the action when 70 15 brought in the county attorney's county. 70 16 Sec. 81. NEW SECTION. 523I.1408 COOPERATION WITH OTHER 70 17 AGENCIES. 70 18 1. The commissioner may cooperate with any governmental 70 19 law enforcement or regulatory agency to encourage uniform 70 20 interpretation and administration of this chapter and 70 21 effective enforcement of this chapter and effective regulation 70 22 of the sale of memorials, memorialization, and cemeteries. 70 23 2. Cooperation with other agencies may include but is not 70 24 limited to: 70 25 a. Making a joint examination or investigation. 70 26 b. Holding a joint administrative hearing. 70 27 c. Filing and prosecuting a joint civil or administrative 70 28 proceeding. 70 29 d. Sharing and exchanging personnel. 70 30 e. Sharing and exchanging relevant information and 70 31 documents. 70 32 f. Formulating, in accordance with chapter 17A, rules or 70 33 proposed rules on matters such as statements of policy, 70 34 regulatory standards, guidelines, and interpretive opinions. 70 35 Sec. 82. NEW SECTION. 523I.1409 RULES, FORMS, AND 71 1 ORDERS. 71 2 1. Under chapter 17A, the commissioner may from time to 71 3 time make, amend, and rescind such rules, forms, and orders as 71 4 are necessary or appropriate for the protection of purchasers 71 5 and the public and to administer the provisions of this 71 6 chapter, its implementing rules, and orders issued under this 71 7 chapter. 71 8 2. A rule, form, or order shall not be made, amended, or 71 9 rescinded unless the commissioner finds that the action is 71 10 necessary or appropriate to protect purchasers and the public 71 11 and is consistent with the policies and provisions of this 71 12 chapter, its implementing rules, and orders issued under this 71 13 chapter. 71 14 3. A provision of this chapter imposing any liability does 71 15 not apply to an act done or omitted in good faith in 71 16 conformity with any rule, form, or order of the commissioner, 71 17 notwithstanding that the rule, form, or order may later be 71 18 amended or rescinded or be determined by judicial or other 71 19 authority to be invalid for any reason. 71 20 Sec. 83. NEW SECTION. 523I.1410 DATE OF FILING – 71 21 INTERPRETIVE OPINIONS. 71 22 1. A document is filed when it is received by the 71 23 commissioner. 71 24 2. Requests for interpretive opinions may be granted in 71 25 the commissioner's discretion. 71 26 Sec. 84. NEW SECTION. 523I.1411 RECEIVERSHIPS. 71 27 1. The commissioner shall notify the attorney general of 71 28 the potential need for establishment of a receivership if the 71 29 commissioner finds that a cemetery subject to this chapter 71 30 meets one or more of the following conditions: 71 31 a. Is insolvent. 71 32 b. Has utilized trust funds for personal or business 71 33 purposes in a manner inconsistent with this chapter. 71 34 c. The amount of care funds currently held in trust for 71 35 perpetual care is less than the amount required by this 72 1 chapter. 72 2 2. The commissioner or attorney general may apply to the 72 3 district court in any county of the state for the 72 4 establishment of a receivership. Upon proof that any of the 72 5 conditions described in this section have occurred, the court 72 6 may grant a receivership. 72 7 Sec. 85. NEW SECTION. 523I.1412 LIQUIDATION PROCEDURES. 72 8 1. GROUNDS FOR LIQUIDATION. The commissioner may petition 72 9 the district court for an order directing the commissioner to 72 10 liquidate a cemetery corporation on any of the following 72 11 grounds: 72 12 a. The cemetery corporation did not deposit funds pursuant 72 13 to subchapter 12 or withdrew funds in a manner inconsistent 72 14 with this chapter and is insolvent. 72 15 b. The cemetery corporation did not deposit funds pursuant 72 16 to subchapter 12 or withdrew funds in a manner inconsistent 72 17 with this chapter and the condition of the cemetery 72 18 corporation is such that further transaction of business would 72 19 be hazardous, financially or otherwise, to purchasers or the 72 20 public. 72 21 2. LIQUIDATION ORDER. 72 22 a. An order to liquidate the business of a cemetery 72 23 corporation shall appoint the commissioner as liquidator and 72 24 shall direct the liquidator to immediately take possession of 72 25 the assets of the cemetery corporation and to administer them 72 26 under the general supervision of the court. The liquidator is 72 27 vested with the title to the property, contracts, rights of 72 28 action, and the books and records of the cemetery corporation, 72 29 wherever located, that is ordered liquidated as of the entry 72 30 of the final order of liquidation. The filing or recording of 72 31 the order with the clerk of court and the recorder of deeds of 72 32 the county in which the principal office or place of business 72 33 of the cemetery corporation is located, or, in the case of 72 34 real estate with the recorder of deeds of the county where the 72 35 property is located, constitutes the same notice as a deed, 73 1 bill of sale, or other evidence of title duly filed or 73 2 recorded with the recorder of deeds. 73 3 b. Upon issuance of an order, the rights and liabilities 73 4 of a cemetery corporation and of the cemetery corporation's 73 5 creditors, purchasers, owners, and other persons interested in 73 6 the cemetery corporation's estate shall become fixed as of the 73 7 date of the entry of the order of liquidation, except as 73 8 provided in subsection 14. 73 9 c. At the time of petitioning for an order of liquidation, 73 10 or at any time after the time of petitioning, the 73 11 commissioner, after making appropriate findings of a cemetery 73 12 corporation's insolvency, may petition the court for a 73 13 declaration of insolvency. After providing notice and hearing 73 14 as it deems proper, the court may make the declaration. 73 15 d. An order issued under this section shall require 73 16 accounting to the court by the liquidator. Accountings, at a 73 17 minimum, must include all funds received or disbursed by the 73 18 liquidator during the current period. An accounting shall be 73 19 filed within one year of the liquidation order and at such 73 20 other times as the court may require. 73 21 e. Within five days after the initiation of an appeal of 73 22 an order of liquidation, which order has not been stayed, the 73 23 commissioner shall present for the court's approval a plan for 73 24 the continued performance of the cemetery corporation's 73 25 obligations during the pendency of an appeal. The plan shall 73 26 provide for the continued performance of interment rights 73 27 agreements in the normal course of events, notwithstanding the 73 28 grounds alleged in support of the order of liquidation 73 29 including the ground of insolvency. If the defendant cemetery 73 30 corporation's financial condition, in the judgment of the 73 31 commissioner, will not support the full performance of all 73 32 obligations during the appeal pendency period, the plan may 73 33 prefer the claims of certain purchasers and claimants over 73 34 creditors and interested parties as well as other purchasers 73 35 and claimants, as the commissioner finds to be fair and 74 1 equitable, considering the relative circumstances of such 74 2 purchasers and claimants. The court shall examine the plan 74 3 submitted by the commissioner and if it finds the plan to be 74 4 in the best interests of the parties, the court shall approve 74 5 the plan. An action shall not lie against the commissioner or 74 6 any of the commissioner's deputies, agents, clerks, 74 7 assistants, or attorneys by any party based on preference in 74 8 an appeal pendency plan approved by the court. 74 9 3. POWERS OF LIQUIDATOR. 74 10 a. The liquidator may do any of the following: 74 11 (1) Appoint a special deputy to act for the liquidator 74 12 under this chapter, and determine the special deputy's 74 13 reasonable compensation. The special deputy shall have all 74 14 the powers of the liquidator granted by this section. The 74 15 special deputy shall serve at the pleasure of the liquidator. 74 16 (2) Hire employees and agents, legal counsel, accountants, 74 17 appraisers, consultants, and other personnel as the 74 18 commissioner may deem necessary to assist in the liquidation. 74 19 (3) With the approval of the court, fix reasonable 74 20 compensation of employees and agents, legal counsel, 74 21 accountants, appraisers, and consultants. 74 22 (4) Pay reasonable compensation to persons appointed and 74 23 defray from the funds or assets of the cemetery corporation 74 24 all expenses of taking possession of, conserving, conducting, 74 25 liquidating, disposing of, or otherwise dealing with the 74 26 business and property of the cemetery corporation. If the 74 27 property of the cemetery corporation does not contain 74 28 sufficient cash or liquid assets to defray the costs incurred, 74 29 the commissioner may advance the costs so incurred out of the 74 30 insurance division's cemetery fund. Amounts so advanced for 74 31 expenses of administration shall be repaid to the insurance 74 32 division's cemetery fund for the use of the division out of 74 33 the first available moneys of the cemetery corporation. 74 34 (5) Hold hearings, subpoena witnesses, and compel their 74 35 attendance, administer oaths, examine a person under oath, and 75 1 compel a person to subscribe to the person's testimony after 75 2 it has been correctly reduced to writing, and in connection to 75 3 the proceedings require the production of books, accounts, 75 4 papers, correspondence, memoranda, purchase agreements, files, 75 5 or other documents or records which the liquidator deems 75 6 relevant to the inquiry. 75 7 (6) Collect debts and moneys due and claims belonging to 75 8 the cemetery corporation, wherever located. Pursuant to this 75 9 subparagraph, the liquidator may do any of the following: 75 10 (a) Institute timely action in other jurisdictions to 75 11 forestall garnishment and attachment proceedings against 75 12 debts. 75 13 (b) Perform acts as are necessary or expedient to collect, 75 14 conserve, or protect its assets or property, including the 75 15 power to sell, compound, compromise, or assign debts for 75 16 purposes of collection upon terms and conditions as the 75 17 liquidator deems best. 75 18 (c) Pursue any creditor's remedies available to enforce 75 19 claims. 75 20 (7) Conduct public and private sales of the property of 75 21 the cemetery corporation. 75 22 (8) Use assets of the cemetery corporation under a 75 23 liquidation order to transfer obligations of purchase 75 24 agreements to a solvent cemetery corporation, if the transfer 75 25 can be accomplished without prejudice to the applicable 75 26 priorities under subsection 18. 75 27 (9) Acquire, hypothecate, encumber, lease, improve, sell, 75 28 transfer, abandon, or otherwise dispose of or deal with 75 29 property of the cemetery corporation at its market value or 75 30 upon terms and conditions as are fair and reasonable. The 75 31 liquidator shall also have power to execute, acknowledge, and 75 32 deliver deeds, assignments, releases, and other instruments 75 33 necessary to effectuate a sale of property or other 75 34 transaction in connection with the liquidation. 75 35 (10) Borrow money on the security of the cemetery 76 1 corporation's assets or without security and execute and 76 2 deliver documents necessary to that transaction for the 76 3 purpose of facilitating the liquidation. Money borrowed 76 4 pursuant to this subparagraph shall be repaid as an 76 5 administrative expense and shall have priority over any other 76 6 class 1 claims under the priority of distribution established 76 7 in subsection 18. 76 8 (11) Enter into contracts as necessary to carry out the 76 9 order to liquidate and affirm or disavow contracts to which 76 10 the cemetery corporation is a party. 76 11 (12) Continue to prosecute and to institute in the name of 76 12 the cemetery corporation or in the liquidator's own name any 76 13 and all suits and other legal proceedings, in this state or 76 14 elsewhere, and to abandon the prosecution of claims the 76 15 liquidator deems unprofitable to pursue further. 76 16 (13) Prosecute an action on behalf of the creditors, 76 17 purchasers, or owners against an officer of the cemetery 76 18 corporation or any other person. 76 19 (14) Remove records and property of the cemetery 76 20 corporation to the offices of the commissioner or to other 76 21 places as may be convenient for the purposes of efficient and 76 22 orderly execution of the liquidation. 76 23 (15) Deposit in one or more banks in this state sums as 76 24 are required for meeting current administration expenses and 76 25 distributions. 76 26 (16) Unless the court orders otherwise, invest funds not 76 27 currently needed. 76 28 (17) File necessary documents for recording in the office 76 29 of the recorder of deeds or record office in this state or 76 30 elsewhere where property of the cemetery corporation is 76 31 located. 76 32 (18) Assert defenses available to the cemetery corporation 76 33 against third persons, including statutes of limitations, 76 34 statutes of fraud, and the defense of usury. A waiver of a 76 35 defense by the cemetery corporation after a petition in 77 1 liquidation has been filed shall not bind the liquidator. 77 2 (19) Exercise and enforce the rights, remedies, and powers 77 3 of a creditor, purchaser, or owner, including the power to 77 4 avoid transfer or lien that may be given by the general law 77 5 and that is not included within subsections 7 through 9. 77 6 (20) Intervene in a proceeding wherever instituted that 77 7 might lead to the appointment of a receiver or trustee, and 77 8 act as the receiver or trustee whenever the appointment is 77 9 offered. 77 10 (21) Exercise powers now held or later conferred upon 77 11 receivers by the laws of this state which are not inconsistent 77 12 with this chapter. 77 13 b. This subsection does not limit the liquidator or 77 14 exclude the liquidator from exercising a power not listed in 77 15 paragraph "a" that may be necessary or appropriate to 77 16 accomplish the purposes of this chapter. 77 17 4. NOTICE TO CREDITORS AND OTHERS. 77 18 a. Unless the court otherwise directs, the liquidator 77 19 shall give notice of the liquidation order as soon as possible 77 20 by doing both of the following: 77 21 (1) Mailing notice, by first-class mail, to all persons 77 22 known or reasonably expected to have claims against the 77 23 cemetery corporation, including purchasers, at their last 77 24 known address as indicated by the records of the cemetery 77 25 corporation. 77 26 (2) Publication of notice in a newspaper of general 77 27 circulation in the county in which the cemetery corporation 77 28 has its principal place of business and in other locations as 77 29 the liquidator deems appropriate. 77 30 b. Notice to potential claimants under paragraph "a" shall 77 31 require claimants to file with the liquidator their claims 77 32 together with proofs of the claim under subsection 13 on or 77 33 before a date the liquidator shall specify in the notice. 77 34 Claimants shall keep the liquidator informed of their changes 77 35 of address, if any. 78 1 c. If notice is given pursuant to this subsection, the 78 2 distribution of assets of the cemetery corporation under this 78 3 chapter shall be conclusive with respect to claimants, whether 78 4 or not a claimant actually received notice. 78 5 5. ACTIONS BY AND AGAINST LIQUIDATOR. 78 6 a. After issuance of an order appointing a liquidator of a 78 7 cemetery corporation, an action at law or equity shall not be 78 8 brought against the cemetery corporation within this state or 78 9 elsewhere, and existing actions shall not be maintained or 78 10 further presented after issuance of the order. Whenever in 78 11 the liquidator's judgment, protection of the estate of the 78 12 cemetery corporation necessitates intervention in an action 78 13 against the cemetery corporation that is pending outside this 78 14 state, the liquidator may intervene in the action. The 78 15 liquidator may defend, at the expense of the estate of the 78 16 cemetery corporation, an action in which the liquidator 78 17 intervenes under this section. 78 18 b. Within two years or such additional time as applicable 78 19 law may permit, the liquidator, after the issuance of an order 78 20 for liquidation, may institute an action or proceeding on 78 21 behalf of the estate of the cemetery corporation upon any 78 22 cause of action against which the period of limitation fixed 78 23 by applicable law has not expired at the time of the filing of 78 24 the petition upon which the order is entered. If a period of 78 25 limitation is fixed by agreement for instituting a suit or 78 26 proceeding upon a claim, or for filing a claim, proof of 78 27 claim, proof of loss, demand, notice, or the like, or if in a 78 28 proceeding, judicial or otherwise, a period of limitation is 78 29 fixed in the proceeding or pursuant to applicable law for 78 30 taking an action, filing a claim or pleading, or doing an act, 78 31 and if the period has not expired at the date of the filing of 78 32 the petition, the liquidator may, for the benefit of the 78 33 estate, take any action or do any act, required of or 78 34 permitted to the cemetery corporation, within a period of one 78 35 hundred eighty days subsequent to the entry of an order for 79 1 liquidation, or within a further period as is shown to the 79 2 satisfaction of the court not to be unfairly prejudicial to 79 3 the other party. 79 4 c. A statute of limitations or defense of laches shall not 79 5 run with respect to an action against a cemetery corporation 79 6 between the filing of a petition for liquidation against the 79 7 cemetery corporation and the denial of the petition. An 79 8 action against the cemetery corporation that might have been 79 9 commenced when the petition was filed may be commenced for at 79 10 least sixty days after the petition is denied. 79 11 6. COLLECTION AND LIST OF ASSETS. 79 12 a. As soon as practicable after the liquidation order but 79 13 not later than one hundred twenty days after such order, the 79 14 liquidator shall prepare in duplicate a list of the cemetery 79 15 corporation's assets. The list shall be amended or 79 16 supplemented as the liquidator may determine. One copy shall 79 17 be filed in the office of the clerk of court, and one copy 79 18 shall be retained for the liquidator's files. Amendments and 79 19 supplements shall be similarly filed. 79 20 b. The liquidator shall reduce the assets to a degree of 79 21 liquidity that is consistent with the effective execution of 79 22 the liquidation. 79 23 c. A submission of a proposal to the court for 79 24 distribution of assets in accordance with subsection 11 79 25 fulfills the requirements of paragraph "a". 79 26 7. FRAUDULENT TRANSFERS PRIOR TO PETITION. 79 27 a. A transfer made and an obligation incurred by a 79 28 cemetery corporation within one year prior to the filing of a 79 29 successful petition for liquidation under this chapter is 79 30 fraudulent as to then existing and future creditors if made or 79 31 incurred without fair consideration, or with actual intent to 79 32 hinder, delay, or defraud either existing or future creditors. 79 33 A fraudulent transfer made or an obligation incurred by a 79 34 cemetery corporation ordered to be liquidated under this 79 35 chapter may be avoided by the liquidator, except as to a 80 1 person who in good faith is a purchaser, lienor, or obligee 80 2 for a present fair equivalent value. A purchaser, lienor, or 80 3 obligee, who in good faith has given consideration that is 80 4 less than the present fair equivalent value for such transfer, 80 5 lien, or obligation may retain the transfer, lien, or 80 6 obligation as security for repayment. The court may, on due 80 7 notice, order any such transfer, lien, or obligation to be 80 8 preserved for the benefit of the cemetery corporation and in 80 9 that event, the receiver shall succeed to and may enforce the 80 10 rights of the purchaser, lienor, or obligee. 80 11 b. (1) A transfer of property other than real property is 80 12 made when it becomes perfected so that a subsequent lien 80 13 obtainable by legal or equitable proceedings on a simple 80 14 contract could not become superior to the rights of the 80 15 transferee under subsection 9, paragraph "c". 80 16 (2) A transfer of real property is made when it becomes 80 17 perfected so that a subsequent bona fide purchaser from the 80 18 cemetery corporation could not obtain rights superior to the 80 19 rights of the transferee. 80 20 (3) A transfer that creates an equitable lien is not 80 21 perfected if there are available means by which a legal lien 80 22 could be perfected. 80 23 (4) A transfer not perfected prior to the filing of a 80 24 petition for liquidation is deemed to be made immediately 80 25 before the filing of the successful petition. 80 26 (5) This subsection applies whether or not there are or 80 27 were creditors who might have obtained a lien or persons who 80 28 might have become bona fide purchasers. 80 29 8. FRAUDULENT TRANSFER AFTER PETITION. 80 30 a. After a petition for liquidation has been filed, a 80 31 transfer of real property of the cemetery corporation made to 80 32 a person acting in good faith is valid against the liquidator 80 33 if made for a present fair equivalent value. If the transfer 80 34 is not made for a present fair equivalent value, the transfer 80 35 is valid to the extent of the present consideration actually 81 1 paid for which amount the transferee shall have a lien on the 81 2 property transferred. The commencement of a proceeding in 81 3 liquidation is constructive notice upon the recording of a 81 4 copy of the petition for or order of liquidation with the 81 5 recording of deeds in the county where any real property in 81 6 question is located. The exercise by a court of the United 81 7 States or a state or jurisdiction to authorize a judicial sale 81 8 of real property of the cemetery corporation within a county 81 9 in a state shall not be impaired by the pendency of a 81 10 proceeding unless the copy is recorded in the county prior to 81 11 the consummation of the judicial sale. 81 12 b. After a petition for liquidation has been filed and 81 13 before either the liquidator takes possession of the property 81 14 of the cemetery corporation or an order of liquidation is 81 15 granted: 81 16 (1) A transfer of the property, other than real property, 81 17 of the cemetery corporation made to a person acting in good 81 18 faith is valid against the liquidator if made for a present 81 19 fair equivalent value. If the transfer was not made for a 81 20 present fair equivalent value, then the transfer is valid to 81 21 the extent of the present consideration actually paid for 81 22 which amount the transferee shall have a lien on the property 81 23 transferred. 81 24 (2) If acting in good faith, a person indebted to the 81 25 cemetery corporation or holding property of the cemetery 81 26 corporation may pay the debt or deliver the property, or any 81 27 part of the property, to the cemetery corporation or upon the 81 28 cemetery corporation's order as if the petition were not 81 29 pending. 81 30 (3) A person having actual knowledge of the pending 81 31 liquidation is not acting in good faith. 81 32 (4) A person asserting the validity of a transfer under 81 33 this subsection has the burden of proof. Except as provided 81 34 in this subsection, a transfer by or on behalf of the cemetery 81 35 corporation after the date of the petition for liquidation by 82 1 any person other than the liquidator is not valid against the 82 2 liquidator. 82 3 c. A person receiving any property from the cemetery 82 4 corporation or any benefit of the property of the cemetery 82 5 corporation which is a fraudulent transfer under paragraph "a" 82 6 is personally liable for the property or benefit and shall 82 7 account to the liquidator. 82 8 d. This chapter does not impair the negotiability of 82 9 currency or negotiable instruments. 82 10 9. VOIDABLE PREFERENCES AND LIENS. 82 11 a. (1) A preference is a transfer of the property of a 82 12 cemetery corporation to or for the benefit of a creditor for 82 13 an antecedent debt made or suffered by the cemetery 82 14 corporation within one year before the filing of a successful 82 15 petition for liquidation under this chapter, the effect of 82 16 which transfer may be to enable the creditor to obtain a 82 17 greater percentage of this debt than another creditor of the 82 18 same class would receive. If a liquidation order is entered 82 19 while the cemetery corporation is already subject to a 82 20 receivership, then the transfers are preferences if made or 82 21 suffered within one year before the filing of the successful 82 22 petition for the receivership, or within two years before the 82 23 filing of the successful petition for liquidation, whichever 82 24 time is shorter. 82 25 (2) A preference may be avoided by the liquidator if any 82 26 of the following exist: 82 27 (a) The cemetery corporation was insolvent at the time of 82 28 the transfer. 82 29 (b) The transfer was made within four months before the 82 30 filing of the petition. 82 31 (c) At the time the transfer was made, the creditor 82 32 receiving the transfer or to be benefited by the transfer or 82 33 the creditor's agent acting with reference to the transfer had 82 34 reasonable cause to believe that the cemetery corporation was 82 35 insolvent or was about to become insolvent. 83 1 (d) The creditor receiving the transfer was an officer, or 83 2 an employee, attorney, or other person who was in fact in a 83 3 position of comparable influence in the cemetery corporation 83 4 to an officer whether or not the person held the position of 83 5 an officer, owner, or other person, firm, corporation, 83 6 association, or aggregation of persons with whom the cemetery 83 7 corporation did not deal at arm's length. 83 8 (3) Where the preference is voidable, the liquidator may 83 9 recover the property. If the property has been converted, the 83 10 liquidator may recover its value from a person who has 83 11 received or converted the property. However, if a bona fide 83 12 purchaser or lienor has given less than the present fair 83 13 equivalent value, the purchaser or lienor shall have a lien 83 14 upon the property to the extent of the consideration actually 83 15 given. Where a preference by way of lien or security interest 83 16 is voidable, the court may on due notice order the lien or 83 17 security interest to be preserved for the benefit of the 83 18 estate, in which event the lien or title shall pass to the 83 19 liquidator. 83 20 b. (1) A transfer of property other than real property is 83 21 made when it becomes perfected so that a subsequent lien 83 22 obtainable by legal or equitable proceedings on a simple 83 23 contract could not become superior to the rights of the 83 24 transferee. 83 25 (2) A transfer of real property is made when it becomes 83 26 perfected so that a subsequent bona fide purchaser from the 83 27 cemetery corporation could not obtain rights superior to the 83 28 rights of the transferee. 83 29 (3) A transfer which creates an equitable lien is not 83 30 perfected if there are available means by which a legal lien 83 31 could be created. 83 32 (4) A transfer not perfected prior to the filing of a 83 33 petition for liquidation is deemed to be made immediately 83 34 before the filing of the successful petition. 83 35 (5) This subsection applies whether or not there are or 84 1 were creditors who might have obtained liens or persons who 84 2 might have become bona fide purchasers. 84 3 c. (1) A lien obtainable by legal or equitable 84 4 proceedings upon a simple contract is one arising in the 84 5 ordinary course of the proceedings upon the entry or docketing 84 6 of a judgment or decree, or upon attachment, garnishment, 84 7 execution, or like process, whether before, upon, or after 84 8 judgment or decree and whether before or upon levy. It does 84 9 not include liens which under applicable law are given a 84 10 special priority over other liens which are prior in time. 84 11 (2) A lien obtainable by legal or equitable proceedings 84 12 may become superior to the rights of a transferee, or a 84 13 purchaser may obtain rights superior to the rights of a 84 14 transferee within the meaning of paragraph "b", if such 84 15 consequences follow only from the lien or purchase itself, or 84 16 from the lien or purchase followed by a step wholly within the 84 17 control of the respective lienholder or purchaser, with or 84 18 without the aid of ministerial action by public officials. 84 19 However, a lien does not become superior and a purchase does 84 20 not create superior rights for the purpose of paragraph "b" 84 21 through an act subsequent to the obtaining of a lien or 84 22 subsequent to a purchase which requires the agreement or 84 23 concurrence of any third party or which requires further 84 24 judicial action or ruling. 84 25 d. A transfer of property for or on account of a new and 84 26 contemporaneous consideration, which is under paragraph "b", 84 27 made or suffered after the transfer because of delay in 84 28 perfecting it, does not become a transfer for or on account of 84 29 an antecedent debt if any acts required by the applicable law 84 30 to be performed in order to perfect the transfer as against 84 31 liens or a bona fide purchaser's rights are performed within 84 32 twenty-one days or any period expressly allowed by the law, 84 33 whichever is less. A transfer to secure a future loan, if a 84 34 loan is actually made, or a transfer which becomes security 84 35 for a future loan, shall have the same effect as a transfer 85 1 for or on account of a new and contemporaneous consideration. 85 2 e. If a lien which is voidable under paragraph "a", 85 3 subparagraph (2), has been dissolved by the furnishing of a 85 4 bond or other obligation, the surety of which has been 85 5 indemnified directly or indirectly by the transfer or the 85 6 creation of a lien upon property of a cemetery corporation 85 7 before the filing of a petition under this chapter which 85 8 results in the liquidation order, the indemnifying transfer or 85 9 lien is also voidable. 85 10 f. The property affected by a lien voidable under 85 11 paragraphs "a" and "e" is discharged from the lien. The 85 12 property and any of the indemnifying property transferred to 85 13 or for the benefit of a surety shall pass to the liquidator. 85 14 However, the court may on due notice order a lien to be 85 15 preserved for the benefit of the estate and the court may 85 16 direct that the conveyance be executed to evidence the title 85 17 of the liquidator. 85 18 g. The court shall have summary jurisdiction of a 85 19 proceeding by a liquidator to hear and determine the rights of 85 20 the parties under this section. Reasonable notice of hearing 85 21 in the proceeding shall be given to all parties in interest, 85 22 including the obligee of a releasing bond or other like 85 23 obligation. Where an order is entered for the recovery of 85 24 indemnifying property in kind or for the avoidance of an 85 25 indemnifying lien, upon application of any party in interest, 85 26 the court shall in the same proceeding ascertain the value of 85 27 the property or lien. If the value is less than the amount 85 28 for which the property is indemnified or less than the amount 85 29 of the lien, the transferee or lienholder may elect to retain 85 30 the property or lien upon payment of its value, as ascertained 85 31 by the court, to the liquidator within the time as fixed by 85 32 the court. 85 33 h. The liability of a surety under a releasing bond or 85 34 other like obligation is discharged to the extent of the value 85 35 of the indemnifying property recovered or the indemnifying 86 1 lien nullified and avoided by the liquidator. Where the 86 2 property is retained under paragraph "g", the liability of the 86 3 surety is discharged to the extent of the amount paid to the 86 4 liquidator. 86 5 i. If a creditor has been preferred for property which 86 6 becomes a part of the cemetery corporation's estate, and 86 7 afterward in good faith gives the cemetery corporation further 86 8 credit without security of any kind, the amount of the new 86 9 credit remaining unpaid at the time of the petition may be set 86 10 off against the preference which would otherwise be 86 11 recoverable from the creditor. 86 12 j. If within four months before the filing of a successful 86 13 petition for liquidation under this chapter, or at any time in 86 14 contemplation of a proceeding to liquidate, a cemetery 86 15 corporation, directly or indirectly, pays money or transfers 86 16 property to an attorney for services rendered or to be 86 17 rendered, the transaction may be examined by the court on its 86 18 own motion or shall be examined by the court on petition of 86 19 the liquidator. The payment or transfer shall be held valid 86 20 only to the extent of a reasonable amount to be determined by 86 21 the court. The excess may be recovered by the liquidator for 86 22 the benefit of the estate. However, where the attorney is in 86 23 a position of influence in a cemetery corporation of an 86 24 affiliate, payment of any money or the transfer of any 86 25 property to the attorney for services rendered or to be 86 26 rendered shall be governed by the provisions of paragraph "a", 86 27 subparagraph (2), subparagraph subdivision (d). 86 28 k. (1) An officer, manager, employee, shareholder, 86 29 subscriber, attorney, or other person acting on behalf of the 86 30 cemetery corporation who knowingly participates in giving any 86 31 preference when the person has reasonable cause to believe the 86 32 cemetery corporation is or is about to become insolvent at the 86 33 time of the preference is personally liable to the liquidator 86 34 for the amount of the preference. There is an inference that 86 35 reasonable cause exists if the transfer was made within four 87 1 months before the date of filing of the successful petition 87 2 for liquidation. 87 3 (2) A person receiving property from the cemetery 87 4 corporation or the benefit of the property of the cemetery 87 5 corporation as a preference voidable under paragraph "a" is 87 6 personally liable for the property and shall account to the 87 7 liquidator. 87 8 (3) This subsection shall not prejudice any other claim by 87 9 the liquidator against any person. 87 10 10. CLAIMS OF HOLDER OF VOID OR VOIDABLE RIGHTS. 87 11 a. A claim of a creditor who has received or acquired a 87 12 preference, lien, conveyance, transfer, assignment, or 87 13 encumbrance, voidable under this chapter, shall not be allowed 87 14 unless the creditor surrenders the preference, lien, 87 15 conveyance, transfer, assignment, or encumbrance. If the 87 16 avoidance is effected by a proceeding in which a final 87 17 judgment has been entered, the claim shall not be allowed 87 18 unless the money is paid or the property is delivered to the 87 19 liquidator within thirty days from the date of the entering of 87 20 the final judgment. However, the court having jurisdiction 87 21 over the liquidation may allow further time if there is an 87 22 appeal or other continuation of the proceeding. 87 23 b. A claim allowable under paragraph "a" by reason of a 87 24 voluntary or involuntary avoidance, preference, lien, 87 25 conveyance, transfer, assignment, or encumbrance may be filed 87 26 as an excused late filing under subsection 12, if filed within 87 27 thirty days from the date of the avoidance or within the 87 28 further time allowed by the court under paragraph "a". 87 29 11. LIQUIDATOR'S PROPOSAL TO DISTRIBUTE ASSETS. 87 30 a. From time to time as assets become available, the 87 31 liquidator shall make application to the court for approval of 87 32 a proposal to disburse assets out of marshaled assets. 87 33 b. The proposal shall at least include provisions for all 87 34 of the following: 87 35 (1) Reserving amounts for the payment of all the 88 1 following: 88 2 (a) Expenses of administration. 88 3 (b) To the extent of the value of the security held, the 88 4 payment of claims of secured creditors. 88 5 (c) Claims falling within the priorities established in 88 6 subsection 18, paragraphs "a" and "b". 88 7 (2) Disbursement of the assets marshaled to date and 88 8 subsequent disbursement of assets as they become available. 88 9 c. Action on the application may be taken by the court 88 10 provided that the liquidator's proposal complies with 88 11 paragraph "b". 88 12 12. FILING PROOFS OF CLAIMS. 88 13 a. Proof of all claims shall be filed with the liquidator 88 14 in the form required by subsection 13 on or before the last 88 15 day for filing specified in the notice required under 88 16 subsection 4. 88 17 b. The liquidator may permit a claimant making a late 88 18 filing to share in distributions, whether past or future, as 88 19 if the claimant were not late, to the extent that the payment 88 20 will not prejudice the orderly administration of the 88 21 liquidation under any of the following circumstances: 88 22 (1) The existence of the claim was not known to the 88 23 claimant and the claimant filed the claim as promptly as 88 24 reasonably possible after learning of it. 88 25 (2) A transfer to a creditor was avoided under subsections 88 26 7 through 9, or was voluntarily surrendered under subsection 88 27 10, and the filing satisfies the conditions of subsection 10. 88 28 (3) The valuation under subsection 17 of security held by 88 29 a secured creditor shows a deficiency, which is filed within 88 30 thirty days after the valuation. 88 31 c. The liquidator may consider any claim filed late and 88 32 permit the claimant to receive distributions which are 88 33 subsequently declared on any claims of the same or lower 88 34 priority if the payment does not prejudice the orderly 88 35 administration of the liquidation. The late-filing claimant 89 1 shall receive at each distribution the same percentage of the 89 2 amount allowed on the claim as is then being paid to claimants 89 3 of any lower priority. This shall continue until the claim 89 4 has been paid in full. 89 5 13. PROOF OF CLAIM. 89 6 a. Proof of claim shall consist of a statement signed by 89 7 the claimant that includes all of the following that are 89 8 applicable: 89 9 (1) The particulars of the claim, including the 89 10 consideration given for it. 89 11 (2) The identity and amount of the security on the claim. 89 12 (3) The payments, if any, made on the debt. 89 13 (4) A statement that the sum claimed is justly owing and 89 14 that there is no setoff, counterclaim, or defense to the 89 15 claim. 89 16 (5) Any right of priority of payment or other specific 89 17 right asserted by the claimant. 89 18 (6) A copy of the written instrument which is the 89 19 foundation of the claim. 89 20 (7) The name and address of the claimant and the attorney 89 21 who represents the claimant, if any. 89 22 b. A claim need not be considered or allowed if it does 89 23 not contain all the information identified in paragraph "a" 89 24 which is applicable. The liquidator may require that a 89 25 prescribed form be used and may require that other information 89 26 and documents be included. 89 27 c. At any time the liquidator may request the claimant to 89 28 present information or evidence supplementary to that required 89 29 under paragraph "a", and may take testimony under oath, 89 30 require production of affidavits or depositions, or otherwise 89 31 obtain additional information or evidence. 89 32 d. A judgment or order against a cemetery corporation 89 33 entered after the date of filing of a successful petition for 89 34 liquidation, or a judgment or order against the cemetery 89 35 corporation entered at any time by default or by collusion 90 1 need not be considered as evidence of liability or of the 90 2 amount of damages. A judgment or order against a cemetery 90 3 corporation before the filing of the petition need not be 90 4 considered as evidence of liability or of the amount of 90 5 damages. 90 6 14. SPECIAL CLAIMS. 90 7 a. A claim may be allowed even if contingent, if it is 90 8 filed pursuant to subsection 12. The claim may be allowed and 90 9 the claimant may participate in all distributions declared 90 10 after it is filed to the extent that it does not prejudice the 90 11 orderly administration of the liquidation. 90 12 b. Claims that are due except for the passage of time 90 13 shall be treated as absolute claims are treated. However, the 90 14 claims may be discounted at the legal rate of interest. 90 15 c. Claims made under employment contracts by directors, 90 16 principal officers, or persons in fact performing similar 90 17 functions or having similar powers are limited to payment for 90 18 services rendered prior to the issuance of an order of 90 19 liquidation under subsection 2. 90 20 15. DISPUTED CLAIMS. 90 21 a. If a claim is denied in whole or in part by the 90 22 liquidator, written notice of the determination shall be given 90 23 to the claimant or the claimant's attorney by first-class mail 90 24 at the address shown in the proof of claim. Within sixty days 90 25 from the mailing of the notice, the claimant may file 90 26 objections with the liquidator. Unless a filing is made, the 90 27 claimant shall not further object to the determination. 90 28 b. If objections are filed with the liquidator and the 90 29 liquidator does not alter the denial of the claim as a result 90 30 of the objections, the liquidator shall ask the court for a 90 31 hearing as soon as practicable and give notice of the hearing 90 32 by first-class mail to the claimant or the claimant's attorney 90 33 and to any other persons directly affected. The notice shall 90 34 be given not less than ten nor more than thirty days before 90 35 the date of hearing. The matter shall be heard by the court 91 1 or by a court-appointed referee. The referee shall submit 91 2 findings of fact along with a recommendation. 91 3 16. CLAIMS OF OTHER PERSON. If a creditor, whose claim 91 4 against a cemetery corporation is secured in whole or in part 91 5 by the undertaking of another person, fails to prove and file 91 6 that claim, then the other person may do so in the creditor's 91 7 name and shall be subrogated to the rights of the creditor, 91 8 whether the claim has been filed by the creditor or by the 91 9 other person in the creditor's name to the extent that the 91 10 other person discharges the undertaking. However, in the 91 11 absence of an agreement with the creditor to the contrary, the 91 12 other person is not entitled to any distribution until the 91 13 amount paid to the creditor on the undertaking plus the 91 14 distributions paid on the claim from the cemetery 91 15 corporation's estate to the creditor equal the amount of the 91 16 entire claim of the creditor. An excess received by the 91 17 creditor shall be held by the creditor in trust for the other 91 18 person. 91 19 17. SECURED CREDITOR'S CLAIMS. 91 20 a. The value of the security held by a secured creditor 91 21 shall be determined in one of the following ways, as the court 91 22 may direct: 91 23 (1) By converting the security into money according to the 91 24 terms of the agreement pursuant to which the security was 91 25 delivered to the creditors. 91 26 (2) By agreement, arbitration, compromise, or litigation 91 27 between the creditor and the liquidator. 91 28 b. The determination shall be under the supervision and 91 29 control of the court with due regard for the recommendation of 91 30 the liquidator. The amount so determined shall be credited 91 31 upon the secured claim. A deficiency shall be treated as an 91 32 unsecured claim. If the claimant surrenders the security to 91 33 the liquidator, the entire claim shall be allowed as if 91 34 unsecured. 91 35 18. PRIORITY OF DISTRIBUTION. The priority of 92 1 distribution of claims from the cemetery corporation's estate 92 2 shall be in accordance with the order in which each class of 92 3 claims is set forth. Claims in each class shall be paid in 92 4 full or adequate funds retained for the payment before the 92 5 members of the next class receive any payment. Subclasses 92 6 shall not be established within a class. The order of 92 7 distribution of claims is as follows: 92 8 a. CLASS 1. The costs and expenses of administration, 92 9 including but not limited to the following: 92 10 (1) Actual and necessary costs of preserving or recovering 92 11 assets of the cemetery corporation. 92 12 (2) Compensation for all authorized services rendered in 92 13 the liquidation. 92 14 (3) Necessary filing fees. 92 15 (4) Fees and mileage payable to witnesses. 92 16 (5) Authorized reasonable attorney fees and other 92 17 professional services rendered in the liquidation. 92 18 b. CLASS 2. Reasonable compensation to employees for 92 19 services performed to the extent that they do not exceed two 92 20 months of monetary compensation and represent payment for 92 21 services performed within one year before the filing of the 92 22 petition for liquidation. Officers and directors are not 92 23 entitled to the benefit of this priority. The priority is in 92 24 lieu of any other similar priority which may be authorized by 92 25 law as to wages or compensation of employees. 92 26 c. CLASS 3. Claims under purchase agreements. 92 27 d. CLASS 4. Claims of general creditors. 92 28 e. CLASS 5. Claims of the federal or of any state or 92 29 local government. Claims, including those of a governmental 92 30 body for a penalty or forfeiture, are allowed in this class 92 31 only to the extent of the pecuniary loss sustained from the 92 32 act, transaction, or proceeding out of which the penalty or 92 33 forfeiture arose, with reasonable and actual costs incurred. 92 34 The remainder of such claims shall be postponed to the class 92 35 of claims under paragraph "g". 93 1 f. CLASS 6. Claims filed late or any other claims other 93 2 than claims under paragraph "g". 93 3 g. CLASS 7. The claims of shareholders or other owners. 93 4 19. LIQUIDATOR'S RECOMMENDATIONS TO THE COURT. 93 5 a. The liquidator shall review claims duly filed in the 93 6 liquidation and shall make further investigation as necessary. 93 7 The liquidator may compound, compromise, or in any other 93 8 manner negotiate the amount for which claims will be 93 9 recommended to the court except where the liquidator is 93 10 required by law to accept claims as settled by a person or 93 11 organization. Unresolved disputes shall be determined under 93 12 subsection 15. As soon as practicable, the liquidator shall 93 13 present to the court a report of the claims against the 93 14 cemetery corporation with the liquidator's recommendations. 93 15 The report shall include the name and address of each claimant 93 16 and the amount of the claim finally recommended. 93 17 b. The court may approve, disapprove, or modify the report 93 18 on claims by the liquidator. Reports not modified by the 93 19 court within sixty days following submission by the liquidator 93 20 shall be treated by the liquidator as allowed claims, subject 93 21 to later modification or to rulings made by the court pursuant 93 22 to subsection 15. A claim under a policy of insurance shall 93 23 not be allowed for an amount in excess of the applicable 93 24 policy limits. 93 25 20. DISTRIBUTION OF ASSETS. Under the direction of the 93 26 court, the liquidator shall pay distributions in a manner that 93 27 will ensure the proper recognition of priorities and a 93 28 reasonable balance between the expeditious completion of the 93 29 liquidation and the protection of unliquidated and 93 30 undetermined claims, including third-party claims. 93 31 Distribution of assets in kind may be made at valuations set 93 32 by agreement between the liquidator and the creditor and 93 33 approved by the court. 93 34 21. UNCLAIMED AND WITHHELD FUNDS. 93 35 a. Unclaimed funds subject to distribution remaining in 94 1 the liquidator's hands when the liquidator is ready to apply 94 2 to the court for discharge, including the amount distributable 94 3 to a creditor, owner, or other person who is unknown or cannot 94 4 be found, shall be deposited with the treasurer of state, and 94 5 shall be paid without interest, except as provided in 94 6 subsection 18, to the person entitled or to the person's legal 94 7 representative upon proof satisfactory to the treasurer of 94 8 state of the right to the funds. Any amount on deposit not 94 9 claimed within six years from the discharge of the liquidator 94 10 is deemed to have been abandoned and shall become the property 94 11 of the state without formal escheat proceedings and be 94 12 transferred to the insurance division's cemetery fund. 94 13 b. Funds withheld under subsection 14 and not distributed 94 14 shall upon discharge of the liquidator be deposited with the 94 15 treasurer of state and paid pursuant to subsection 18. Sums 94 16 remaining which under subsection 18 would revert to the 94 17 undistributed assets of the cemetery corporation shall be 94 18 transferred to the insurance division's cemetery fund and 94 19 become the property of the state as provided under paragraph 94 20 "a", unless the commissioner in the commissioner's discretion 94 21 petitions the court to reopen the liquidation pursuant to 94 22 subsection 23. 94 23 c. Notwithstanding any other provision of this chapter, 94 24 funds as identified in paragraph "a", with the approval of the 94 25 court, shall be made available to the commissioner for use in 94 26 the detection and prevention of future insolvencies. The 94 27 commissioner shall hold these funds in the insurance 94 28 division's cemetery fund and shall pay without interest, 94 29 except as provided in subsection 18, to the person entitled to 94 30 the funds or to the person's legal representative upon proof 94 31 satisfactory to the commissioner of the person's right to the 94 32 funds. The funds shall be held by the commissioner for a 94 33 period of two years at which time the rights and duties to the 94 34 unclaimed funds shall vest in the commissioner. 94 35 22. TERMINATION OF PROCEEDINGS. 95 1 a. When all assets justifying the expense of collection 95 2 and distribution have been collected and distributed under 95 3 this chapter, the liquidator shall apply to the court for 95 4 discharge. The court may grant the discharge and make any 95 5 other orders, including an order to transfer remaining funds 95 6 that are uneconomical to distribute, as appropriate. 95 7 b. Any other person may apply to the court at any time for 95 8 an order under paragraph "a". If the application is denied, 95 9 the applicant shall pay the costs and expenses of the 95 10 liquidator in resisting the application, including a 95 11 reasonable attorney fee. 95 12 23. REOPENING LIQUIDATION. At any time after the 95 13 liquidation proceeding has been terminated and the liquidator 95 14 discharged, the commissioner or other interested party may 95 15 petition the court to reopen the proceedings for good cause, 95 16 including the discovery of additional assets. The court shall 95 17 order the proceeding reopened if it is satisfied that there is 95 18 justification for the reopening. 95 19 24. DISPOSITION OF RECORDS DURING AND AFTER TERMINATION OF 95 20 LIQUIDATION. If it appears to the commissioner that the 95 21 records of a cemetery corporation in the process of 95 22 liquidation or completely liquidated are no longer useful, the 95 23 commissioner may recommend to the court and the court shall 95 24 direct what records shall be retained for future reference and 95 25 what records shall be destroyed. 95 26 25. EXTERNAL AUDIT OF LIQUIDATOR'S BOOKS. The court may 95 27 order audits to be made of the books of the commissioner 95 28 relating to a liquidation established under this chapter, and 95 29 a report of each audit shall be filed with the commissioner 95 30 and with the court. The books, records, and other documents 95 31 of the liquidation shall be made available to the auditor at 95 32 any time without notice. The expense of an audit shall be 95 33 considered a cost of administration of the liquidation. 95 34 26. APPLICABILITY. This section shall not apply to a 95 35 religious cemetery or a cemetery owned or operated by a 96 1 governmental subdivision of this state. 96 2 Sec. 86. NEW SECTION. 523I.1413 INSURANCE DIVISION'S 96 3 CEMETERY FUND. 96 4 A special revenue fund in the state treasury, to be known 96 5 as the insurance division's cemetery fund, is created under 96 6 the authority of the commissioner of insurance. The 96 7 commissioner shall allocate annually from the fees paid 96 8 pursuant to section 523I.1211, four dollars for each sale of 96 9 interment rights reported by a cemetery corporation on the 96 10 cemetery corporation's annual report, for deposit to the 96 11 insurance division's cemetery fund. The commissioner shall 96 12 also deposit four dollars into the insurance division's 96 13 cemetery fund for each care assessment submitted, as provided 96 14 in section 523I.815. The moneys in the cemetery fund shall be 96 15 retained in the fund. The moneys are appropriated and, 96 16 subject to authorization by the commissioner, shall be used to 96 17 pay auditors, audit expenses, investigative expenses, the 96 18 expenses of mediation ordered by the commissioner, consumer 96 19 education expenses, the expenses of a toll-free telephone line 96 20 for consumer complaints, and the expenses of receiverships 96 21 established under section 523I.1411. The commissioner shall 96 22 not make an annual allocation to the cemetery fund if the 96 23 current balance of the fund exceeds two hundred thousand 96 24 dollars. 96 25 Sec. 87. Sections 359.37, 359.40, and 359.41, Code 2003, 96 26 are repealed. 96 27 Sec. 88. Chapters 523I, 566 and 566A, Code 2003, are 96 28 repealed. 96 29 EXPLANATION 96 30 This bill repeals Code chapter 523I concerning cemeteries, 96 31 Code chapter 566 concerning cemetery management, and Code 96 32 chapter 566A concerning cemetery regulation and creates a new 96 33 Code chapter 523I concerning cemeteries, cemetery regulation, 96 34 and administration and enforcement procedures relating to 96 35 cemeteries. 97 1 The bill contains a procedure to dedicate new cemeteries or 97 2 subdivisions of cemeteries with a public filing with the 97 3 insurance division. 97 4 The bill requires all persons currently operating as 97 5 cemeteries to form a corporation to own and operate the 97 6 cemetery property and prohibits unincorporated cemetery 97 7 associations. 97 8 The bill establishes requirements for recording ownership 97 9 of interment rights at each cemetery location rather than just 97 10 with the county recorder. The bill requires cemeteries to 97 11 maintain complete interment records that identify the owners 97 12 of all interment rights sold by the cemetery corporation and 97 13 contain historical information concerning any changes of 97 14 ownership of interment rights. The bill sets forth 97 15 requirements for interment rights agreements. 97 16 The bill sets forth requirements for lawn crypts and their 97 17 installation. The bill sets forth requirements for the depth 97 18 of ground burials. 97 19 The bill requires a public filing with the insurance 97 20 division before the construction of new mausoleums and 97 21 columbariums. The bill sets forth procedures governing the 97 22 installation of memorials and memorialization by third 97 23 parties. 97 24 The bill requires all cemetery corporations that sell 97 25 interment rights to have a cemetery permit issued by the 97 26 insurance division. The bill requires all sales personnel of 97 27 cemetery corporations to have a sales permit issued by the 97 28 insurance division, with the exception of employees or agents 97 29 of a religious cemetery or a political subdivision that 97 30 operates a cemetery. 97 31 The bill requires cemetery corporations to make disclosures 97 32 to a buyer of interment rights when grave opening and closing 97 33 fees are not included in the agreement. The bill authorizes a 97 34 cemetery corporation to accept written instructions of a 97 35 decedent concerning interment, relocation, or disinterment of 98 1 remains. The bill contains provisions for making a 98 2 determination of who has the right to control interment, 98 3 relocation, or disinterment of remains. 98 4 The bill contains a procedure for the removal of remains 98 5 from a neglected cemetery. The bill provides a procedure for 98 6 obtaining access to inactive cemeteries. The bill provides a 98 7 procedure for reporting neglected cemeteries to the insurance 98 8 division and to the appropriate board of supervisors. 98 9 The bill increases the penalty for disturbing an interment 98 10 site from a simple misdemeanor to an aggravated misdemeanor. 98 11 A simple misdemeanor is punishable by confinement for no more 98 12 than 30 days or a fine of at least $50 but not more than $500 98 13 or by both. An aggravated misdemeanor is punishable by 98 14 confinement for no more than two years and a fine of at least 98 15 $500 but not more than $5,000. 98 16 The bill requires a nonperpetual care cemetery to create a 98 17 maintenance fund to pay for the upkeep of the cemetery 98 18 property and to deposit at least $50 into the maintenance fund 98 19 for each sale along with a $5 fee assessment to be deposited 98 20 in the insurance division's cemetery fund. 98 21 The bill authorizes governmental subdivisions to commingle 98 22 care funds for the purposes of investment and administration. 98 23 The bill authorizes governmental subdivisions that operate 98 24 cemeteries to invest their maintenance and care funds in the 98 25 same manner as other cemetery corporations notwithstanding 98 26 Code section 12B.10. 98 27 The bill authorizes civil lawsuits brought by owners of 98 28 interment spaces or the insurance division against a cemetery 98 29 corporation that fails to use care funds to maintain the 98 30 cemetery property. The bill also creates a procedure that 98 31 allows the insurance division to order mediation of a 98 32 complaint paid for with funds from the insurance division's 98 33 cemetery fund. 98 34 The bill defines certain acts committed in violation of 98 35 Code chapter 523I as fraudulent practices. 99 1 The bill provides for the establishment of a receivership 99 2 and for liquidation of a cemetery corporation under certain 99 3 circumstances. 99 4 LSB 1047DP 80 99 5 av/cf/24
Text: SSB01122 Text: SSB01124 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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