House File 2551 H-8131 Amend House File 2551 as follows: 1 1. Page 3, by striking lines 32 through 35 and inserting: 2 < Sec. ___. NEW SECTION . 510D.5 Summary enforcement. 3 1. Upon a determination by the commissioner that a 4 manufacturer or a manufacturer’s agent has violated a provision 5 of this chapter, a rule adopted by the commissioner, or an 6 order issued by the commissioner under this chapter, the 7 commissioner may do any of the following: 8 a. Issue a summary order, including a brief statement 9 of findings of fact and conclusions of law, and direct the 10 manufacturer or the manufacturer’s agent to cease and desist 11 engaging in the act or practice that is in violation of the 12 provisions of this chapter. 13 b. Take other affirmative action that in the judgment of the 14 commissioner is necessary to ensure that the manufacturer or 15 the manufacturer’s agent complies with the requirements of this 16 chapter. 17 2. a. A manufacturer or a manufacturer’s agent that has 18 been issued a summary order under this section may contest 19 the summary order by filing a request for a contested case 20 proceeding and hearing pursuant to chapter 17A, and in 21 accordance with rules adopted by the commissioner. The 22 manufacturer or the manufacturer’s agent shall have at least 23 thirty calendar days from the date that the summary order 24 is issued to file a request for a contested case proceeding 25 and hearing. If a contested case proceeding and hearing is 26 not timely requested the summary order shall become final by 27 operation of law. 28 b. Section 17A.18A shall not apply to a summary order issued 29 under this section. 30 c. A summary order issued pursuant to this section shall 31 remain effective from the date of issuance unless overturned 32 by a presiding officer of a contested case hearing, or by 33 a court following the manufacturer’s or the manufacturer’s 34 agent’s request for judicial review of a final action by the 35 -1- HF2551.3297 (5) 88 ko/rn 1/ 7 #1.

commissioner. 1 3. A manufacturer or a manufacturer’s agent violating 2 a summary order issued under this section shall be deemed 3 in contempt of the summary order. Upon request of the 4 commissioner, the attorney general shall petition the 5 district court to enforce the summary order as certified 6 by the commissioner. The district court shall adjudge the 7 manufacturer or the manufacturer’s agent in contempt of 8 the summary order if the court finds after hearing that the 9 manufacturer or the manufacturer’s agent is not in compliance 10 with the summary order. The court may assess a civil penalty 11 of not more than one thousand dollars for each day that the 12 manufacturer or the manufacturer’s agent is in violation of the 13 summary order and may issue further orders as the court deems 14 appropriate. 15 Sec. ___. NEW SECTION . 510D.6 Enforcement after hearing. 16 1. If, after a hearing pursuant to section 510D.5, the 17 commissioner determines that a manufacturer or a manufacturer’s 18 agent has violated a provision of this chapter, a rule adopted 19 by the commissioner, or an order issued by the commissioner 20 under this chapter, the commissioner shall reduce the findings 21 to writing and shall issue and cause to be served upon the 22 manufacturer or the manufacturer’s agent all of the following: 23 a. A copy of the commissioner’s findings. 24 b. An order requiring the manufacturer or the manufacturer’s 25 agent to cease and desist from violating the provisions of this 26 chapter. 27 2. The commissioner may take other affirmative action that 28 in the judgment of the commissioner is necessary to ensure that 29 the manufacturer or the manufacturer’s agent complies with 30 the requirements of this chapter. The commissioner may also, 31 at the commissioner’s discretion, order payment of a civil 32 penalty of not more than five thousand dollars for each of the 33 manufacturer’s or the manufacturer’s agent’s violations of this 34 chapter. 35 -2- HF2551.3297 (5) 88 ko/rn 2/ 7

3. A manufacturer or a manufacturer’s agent that violates 1 an order of the commissioner, and while such order is in 2 effect, may, after notice and hearing and upon order of the 3 commissioner, be subject to a civil penalty of not more than 4 ten thousand dollars for each violation of the commissioner’s 5 order. A manufacturer or a manufacturer’s agent violating an 6 order issued by the commissioner under this subsection shall 7 be deemed in contempt of the order. A civil penalty collected 8 pursuant to this section shall be deposited as provided in 9 section 505.7. 10 4. Judicial review of an action of the commissioner may be 11 sought by a manufacturer or a manufacturer’s agent pursuant to 12 chapter 17A. To the extent that a decision or order of the 13 commissioner is affirmed in a judicial review proceeding, the 14 court shall issue an order directing that the manufacturer 15 or the manufacturer’s agent comply with the terms of the 16 commissioner’s decision or order. 17 5. After the period for judicial review of an order of the 18 commissioner has expired and no petition for judicial review 19 has been filed, upon request of the commissioner, the attorney 20 general shall proceed in the district court to enforce the 21 order of the commissioner. The court shall issue an order 22 directing that the manufacturer or the manufacturer’s agent 23 comply with the terms of the commissioner’s order. 24 6. Upon request of the commissioner, the attorney general 25 shall petition the district court to enforce an order as 26 certified by the commissioner. The district court shall 27 adjudge the manufacturer or the manufacturer’s agent in 28 contempt of the commissioner’s order if the court finds after 29 hearing that the manufacturer or the manufacturer’s agent is 30 not in compliance with the commissioner’s order. The court may 31 order a civil penalty of not more than one thousand dollars per 32 day for each day of noncompliance against the manufacturer or 33 the manufacturer’s agent and may issue further orders as the 34 court deems appropriate. > 35 -3- HF2551.3297 (5) 88 ko/rn 3/ 7

2. Page 6, by striking lines 15 through 18 and inserting: 1 < Sec. ___. NEW SECTION . 510E.4 Summary enforcement. 2 1. Upon a determination by the commissioner that a health 3 carrier or a health carrier’s agent has violated a provision of 4 this chapter, a rule adopted by the commissioner, or an order 5 issued by the commissioner under this chapter, the commissioner 6 may do any of the following: 7 a. Issue a summary order, including a brief statement of 8 findings of fact and conclusions of law, and direct the health 9 carrier or the health carrier’s agent to cease and desist 10 engaging in the act or practice that is in violation of the 11 provisions of this chapter. 12 b. Take other affirmative action that in the judgment of the 13 commissioner is necessary to ensure that the health carrier or 14 the health carrier’s agent complies with the requirements of 15 this chapter. 16 2. a. A health carrier or a health carrier’s agent 17 that has been issued a summary order under this section may 18 contest the summary order by filing a request for a contested 19 case proceeding and hearing pursuant to chapter 17A, and in 20 accordance with rules adopted by the commissioner. The health 21 carrier or the health carrier’s agent shall have at least 22 thirty calendar days from the date that the summary order 23 is issued to file a request for a contested case proceeding 24 and hearing. If a contested case proceeding and hearing is 25 not timely requested the summary order shall become final by 26 operation of law. 27 b. Section 17A.18A shall not apply to a summary order issued 28 under this section. 29 c. A summary order issued pursuant to this section shall 30 remain effective from the date of issuance unless overturned 31 by a presiding officer of a contested case hearing, or by a 32 court following the health carrier’s or the health carrier’s 33 agent’s request for a judicial review of a final action by the 34 commissioner. 35 -4- HF2551.3297 (5) 88 ko/rn 4/ 7 #2.

3. A health carrier or a health carrier’s agent violating 1 a summary order issued under this section shall be deemed 2 in contempt of the summary order. Upon request of the 3 commissioner, the attorney general shall petition the district 4 court to enforce the summary order as certified by the 5 commissioner. The district court shall adjudge the health 6 carrier or the health carrier’s agent in contempt of the 7 summary order if the court finds after hearing that the health 8 carrier or the health carrier’s agent is not in compliance with 9 the summary order. The court may assess a civil penalty of 10 not more than one thousand dollars per day against the health 11 carrier or the health carrier’s agent for each day that the 12 health carrier or the health carrier’s agent is in violation of 13 the summary order, and may issue further orders as the court 14 deems appropriate. 15 Sec. ___. NEW SECTION . 510E.5 Enforcement after hearing. 16 1. If, after a hearing pursuant to section 510E.4, the 17 commissioner determines that a health carrier or a health 18 carrier’s agent has violated a provision of this chapter, a 19 rule adopted by the commissioner, or an order issued by the 20 commissioner under this chapter, the commissioner shall reduce 21 the findings to writing and shall issue and cause to be served 22 upon the health carrier or the health carrier’s agent all of 23 the following: 24 a. A copy of the commissioner’s findings. 25 b. An order requiring the health carrier or the health 26 carrier’s agent to cease and desist from violating the 27 provisions of this chapter. 28 2. The commissioner may take other affirmative action that 29 in the judgment of the commissioner is necessary to ensure that 30 the health carrier or the health carrier’s agent complies with 31 the requirements of this chapter. The commissioner may also, 32 at the commissioner’s discretion, order payment of a civil 33 penalty of not more than five thousand dollars for each of the 34 health carrier’s or the health carrier’s agent’s violations of 35 -5- HF2551.3297 (5) 88 ko/rn 5/ 7

this chapter. 1 3. A health carrier or a health carrier’s agent that 2 violates an order of the commissioner, and while such order is 3 in effect, may, after notice and hearing and upon order of the 4 commissioner, be subject to a civil penalty of not more than 5 ten thousand dollars for each violation of the commissioner’s 6 order. A health carrier or a health carrier’s agent violating 7 an order issued by the commissioner under this section shall 8 be deemed in contempt of the order. A civil penalty collected 9 pursuant to this subsection shall be deposited as provided in 10 section 505.7. 11 4. Judicial review of an action of the commissioner may be 12 sought by a health carrier or a health carrier’s agent pursuant 13 to chapter 17A. To the extent that a decision or order of the 14 commissioner is affirmed in a judicial review proceeding, the 15 court shall issue an order directing that the health carrier 16 or the health carrier’s agent comply with the terms of the 17 commissioner’s decision or order. 18 5. After the period for judicial review of an order of the 19 commissioner has expired and no petition for judicial review 20 has been filed, upon request of the commissioner, the attorney 21 general shall proceed in the district court to enforce the 22 order of the commissioner. The court shall issue an order 23 directing that the health carrier or the health carrier’s agent 24 comply with the terms of the commissioner’s order. 25 6. Upon request of the commissioner, the attorney general 26 shall petition the district court to enforce an order as 27 certified by the commissioner. The district court shall 28 adjudge the health carrier or the health carrier’s agent in 29 contempt of the commissioner’s order if the court finds after 30 hearing that the health carrier or the health carrier’s agent 31 is not in compliance with the commissioner’s order. The court 32 may order a civil penalty of not more than one thousand dollars 33 per day for each day of noncompliance against the health 34 carrier or the health carrier’s agent and may issue further 35 -6- HF2551.3297 (5) 88 ko/rn 6/ 7