Senate File 2153 S-5078 Amend Senate File 2153 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 505.17, subsection 1, paragraph a, Code 4 2024, is amended to read as follows: 5 a. Information, records, and documents utilized for the 6 purpose of, or in the course of, investigation, regulation, 7 or examination of an insurance company , or insurance holding 8 company, an individual insurance producer, or a business entity 9 producer received by the division from some other governmental 10 entity which treats such information, records, and documents 11 as confidential, are confidential and shall not be disclosed 12 by the division and are not subject to subpoena. Such 13 information, records, and documents do not constitute a public 14 record under chapter 22 . 15 Sec. 2. Section 522B.11, subsection 1, paragraph q, Code 16 2024, is amended to read as follows: 17 q. Is the subject of an order of the securities 18 administrator of this state or any other state, province, 19 district, or territory, denying, suspending, revoking, 20 or otherwise taking action against a registration as a 21 broker-dealer, agent, investment adviser, or investment adviser 22 representative issued by any of the following: 23 (1) The securities administrator of this state or any other 24 state, province, district, or territory. 25 (2) The federal securities and exchange commission. 26 (3) The financial industry regulatory authority . 27 Sec. 3. Section 523A.807, subsection 3, paragraph a, Code 28 2024, is amended to read as follows: 29 a. Payment of a civil penalty of not more than one thousand 30 dollars for each violation, but not exceeding an aggregate of 31 ten thousand dollars during any six-month period, except that 32 if the commissioner finds that the person knew or reasonably 33 should have known that the person was in violation of such 34 provisions a section or rules adopted pursuant thereto to a 35 -1- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 1/ 8 #1.

section , the penalty shall be not more than five thousand 1 dollars for each violation, but and not exceeding exceed an 2 aggregate of fifty thousand dollars during any six-month 3 period. The commissioner shall assess the penalty on the 4 employer of an individual and not on the individual, if 5 the commissioner finds that the violations committed by the 6 individual were directed, encouraged, condoned, ignored, or 7 ratified by the individual’s employer. Any civil penalties 8 collected under this subsection shall be deposited as provided 9 in section 505.7 . 10 Sec. 4. Section 523D.1, subsections 2, 3, 4, 8, and 9, Code 11 2024, are amended to read as follows: 12 2. “Continuing care” means housing together with a continuum 13 of supportive services, home health services, nursing services, 14 medical services, or other health related services, furnished 15 to a resident, regardless of whether or not the lodging and 16 services are provided at the same location, together with 17 housing for residents that elect to live in a facility of 18 a provider, with or without other periodic charges, and 19 pursuant to one or more contracts effective for the life of the 20 resident or a period in excess of one year, including mutually 21 cancelable contracts, and in consideration of an entrance fee. 22 3. “Continuing care retirement community” means a facility or 23 program which provides continuing care to residents other than 24 residents related by consanguinity or affinity to the person 25 furnishing their care. 26 4. “Entrance fee” means an initial or deferred transfer to 27 a provider of a sum of money or other property made or promised 28 to be made as full or partial consideration for acceptance of 29 a specified individual in into a facility or a program if the 30 amount exceeds either of the following: 31 a. Five thousand dollars. 32 b. The sum of the regular periodic charges for six months 33 of residency . 34 8. “Provider” means a person undertaking through a lease or 35 -2- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 2/ 8

other type of agreement to provide care in or from a continuing 1 care retirement community or senior adult congregate living 2 facility, even if that person does not own the facility. 3 9. “Resident” means an individual, sixty years of age or 4 older, entitled to receive care in from a continuing care 5 retirement community or a senior adult congregate living 6 facility. 7 Sec. 5. Section 523D.1, Code 2024, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 7A. “Program” means an organized set of 10 measures or activities undertaken by a provider to provide 11 continuing care services to an individual. 12 Sec. 6. Section 523D.2, Code 2024, is amended to read as 13 follows: 14 523D.2 Application of chapter. 15 This chapter applies to a provider who executes a contract 16 to provide continuing care or senior adult congregate living 17 services in a facility or program , or extend extends the term 18 of an existing contract to provide continuing care or senior 19 adult congregate living services in a facility or program , if 20 the contract requires or permits the payment of an entrance fee 21 to a person, and any of the following apply: 22 1. The facility or program is or will be located in this 23 state. 24 2. The provider or a person acting on the provider’s behalf 25 solicits the contract within this state for a facility or 26 program located in this state and the person to be provided 27 with continuing care or senior adult congregate living services 28 under the contract resides within this state at the time of the 29 solicitation. 30 Sec. 7. Section 523D.2A, unnumbered paragraph 1, Code 2024, 31 is amended to read as follows: 32 On or before March 1 of each year, a provider shall 33 file a certification with the commissioner in a manner and 34 according to requirements established by the commissioner. The 35 -3- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 3/ 8

certification shall be accompanied by a one hundred dollar 1 administrative fee which fee shall be deposited as provided in 2 section 505.7 . The certification shall attest that according 3 to the best knowledge and belief of the attesting party, 4 the facility or program administered by the provider is in 5 compliance with the provisions of this chapter , including 6 rules adopted by the commissioner or orders issued by the 7 commissioner as authorized under this chapter . The attesting 8 person may be any of the following: 9 Sec. 8. Section 523D.3, subsection 1, paragraph c, 10 unnumbered paragraph 1, Code 2024, is amended to read as 11 follows: 12 With respect to each person covered by paragraph “b” , and 13 if the facility or program will be managed on a day-to-day 14 basis by a person identified pursuant to paragraph “b” , or with 15 respect to the proposed manager, the following information: 16 Sec. 9. Section 523D.3, subsection 1, paragraphs f, h, and 17 k, Code 2024, are amended to read as follows: 18 f. The services provided or proposed to be provided under 19 contracts for continuing care or senior adult congregate living 20 services at the facility , including the extent to which medical 21 care is furnished. The disclosure statement shall clearly 22 state which services are included in basic contracts and which 23 services are made available at or by the facility at extra 24 charge. 25 h. The provisions which have been made or will be made, 26 if any, to provide reserve funding or security to enable the 27 provider to fully perform its obligations under contracts to 28 provide continuing care or senior adult congregate living 29 services at the facility , including the establishment of escrow 30 accounts, trusts, or reserve funds, together with the manner in 31 which the funds will be invested and the names and experience 32 of persons who will make the investment decisions. 33 k. Other material information concerning the facility , 34 program, or the provider required by the division of insurance 35 -4- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 4/ 8

or which the provider wishes to include. 1 Sec. 10. Section 523D.6, subsection 1, paragraphs b, c, f, 2 g, h, j, k, m, and p, Code 2024, are amended to read as follows: 3 b. The name and address of the facility or facilities , or 4 of the program . 5 c. The If a prospective resident elects to reside in housing 6 at the facility of a provider, the identification of the living 7 unit which the prospective resident will occupy. 8 f. A statement of the policy of the facility or program with 9 regard to any health or financial conditions upon which the 10 provider may require the resident to relinquish the resident’s 11 space in the designated facility or program . 12 g. A statement of the policy of the facility or program with 13 regard to the health and financial conditions required for a 14 person to continue as a resident or an enrollee in a program . 15 h. A statement of the policy of the facility or program with 16 regard to the conditions under which the resident is permitted 17 to remain in the facility or program in the event of financial 18 difficulties affecting the resident. 19 j. A statement of the policy of the facility or program 20 with regard to changes in accommodations and a description 21 of the procedures to be followed by the provider when the 22 provider temporarily or permanently changes the resident’s 23 accommodations within the facility or program , transfers the 24 resident from one level of care to another, or transfers the 25 resident to another health facility or program . 26 k. A description in clear and understandable language, in at 27 least ten point type, of the terms governing the refund of any 28 portion of the entrance fee in the event of discharge by the 29 provider, or cancellation by the resident, and a statement that 30 the provider shall not dismiss or discharge a resident from 31 a facility or program prior to the expiration of a resident 32 contract without just cause and sixty days written notice of 33 intent to cancel. The notice of dismissal or discharge shall 34 only be given upon a good faith determination that just cause 35 -5- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 5/ 8

exists, and the notice shall be given in writing, signed by the 1 medical director, if any, and the administrator of the facility 2 or program . In an emergency situation only such notice as is 3 reasonable under the circumstances is required. 4 m. A description of the facility’s or program’s policies 5 and procedures for handling grievances between the provider and 6 residents. 7 p. A statement that if a resident dies or through illness, 8 injury, or incapacity is precluded from becoming a resident 9 under the terms of the contract before occupying the living 10 unit , or precluded from commencing a continuing care services 11 program under the terms of the contract , the contract is 12 automatically rescinded and the resident or the resident’s 13 legal representative shall receive a full refund of all 14 payments of money or transferred property to the facility 15 or program , except those costs specifically incurred by the 16 facility or program at the request of the resident or program 17 enrollee and set forth in writing in a separate addendum, 18 signed by both parties to the contract. 19 Sec. 11. Section 523D.6, subsection 2, Code 2024, is amended 20 to read as follows: 21 2. Cancellation. The contract required by this section 22 shall state the terms under which the contract can be canceled 23 by the provider , or the resident, or a program enrollee, 24 including a statement of the refund rights of a resident, 25 or a program enrollee, and shall include a completed, 26 easily detachable form in duplicate, captioned “Notice 27 of Cancellation”, as an attachment, in ten point boldface 28 type, containing the following information and statements in 29 substantially the following form and language: 30 NOTICE OF CANCELLATION 31 ........ 32 Date contract was executed. 33 ........ 34 Date disclosure statement was provided 35 -6- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 6/ 8

to resident or program enrollee . 1 You may rescind and cancel your contract, without any penalty 2 or obligation, within three business days of the date the 3 contract was executed or within thirty days after the date 4 you received the disclosure statement required by Iowa Code 5 section 523D.3 , whichever is later. You are not required to 6 move into the facility or commence continuing care services 7 from the program before the expiration of this cancellation 8 period. However, if you do, the provider may retain the 9 reasonable value of care and services actually provided to you, 10 the resident, prior to your vacating the provider’s facility 11 or terminating continuing care services from the program . If 12 you cancel this contract and you have already moved into the 13 provider’s facility, you must vacate your living unit within 14 ten days after receipt by the provider of your cancellation 15 notice. 16 If you cancel this contract, any payments of money or 17 transfers of property you made to the provider must be returned 18 as soon as reasonably possible by the provider following 19 receipt by the provider of your cancellation notice, and any 20 security interest arising out of the transaction is canceled, 21 except that, as stated above, the provider may retain the 22 reasonable value of care and services actually provided to you 23 prior to your vacating the provider’s facility or terminating 24 continuing care services from the program . 25 To cancel this contract, mail by certified mail or hand 26 deliver a signed and dated copy of this cancellation notice 27 or any other written notice clearly indicating your intent to 28 cancel the contract, or send a telegram, to ........ (name 29 of provider) at ........ (address of provider’s place of 30 business). Your cancellation is effective upon mailing by 31 certified mail, when transmitted by telegraph, or when actual 32 notice is given to the provider, whichever is earlier. 33 I hereby cancel this contract. 34 ...... 35 -7- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 7/ 8

(Date) 1 ............ 2 (Resident’s signature) 3 Sec. 12. Section 523D.7, subsection 1, paragraphs a and b, 4 Code 2024, are amended to read as follows: 5 a. Enters into a contract to provide continuing care or 6 senior adult congregate living services at a facility without 7 having first delivered a disclosure statement meeting the 8 requirements of this chapter to the person contracting for 9 continuing care or senior adult congregate living services and 10 to the person’s personal representative if one is appointed by 11 the person. 12 b. Enters into a contract to provide continuing care or 13 senior adult congregate living services at a facility with a 14 person who has relied on a disclosure statement which contains 15 any untrue statement of a material fact or omits to state a 16 material fact necessary in order to make the statements made, 17 in light of the circumstances under which they are made, not 18 misleading. > 19 2. Title page, by striking line 3 and inserting < and preneed 20 sellers, continuing care retirement facilities, and continuing 21 care retirement programs. > 22 ______________________________ DAVID D. ROWLEY -8- SF 2153.3196 (1) 90 (amending this SF 2153 to CONFORM to HF 2263) nls/ko 8/ 8 #2.