Senate File 559 - Enrolled

PAG LIN



  1  1                                            SENATE FILE 559
  1  2
  1  3                             AN ACT
  1  4 RELATING TO CEMETERY AND FUNERAL MERCHANDISE, FUNERAL SERVICES,
  1  5    AND CEMETERIES AND PROVIDING FEES AND PENALTIES.
  1  6
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8
  1  9                           DIVISION I
  1 10                CEMETERY AND FUNERAL MERCHANDISE,
  1 11         FUNERAL SERVICES, AND CEMETERIES == REGULATION
  1 12    Section 1.  Section 22.7, Code 2007, is amended by adding
  1 13 the following new subsection:
  1 14    NEW SUBSECTION.  58.  Information filed with the
  1 15 commissioner of insurance pursuant to sections 523A.204 and
  1 16 523A.502A.
  1 17    Sec. 2.  Section 523A.102, subsection 6, Code 2007, is
  1 18 amended to read as follows:
  1 19    6.  "Commissioner" means the commissioner of insurance or
  1 20 the deputy administrator authorized in section 523A.801 to the
  1 21 extent the commissioner delegates functions to the deputy
  1 22 administrator commissioner's designee.
  1 23    Sec. 3.  Section 523A.102, subsection 11, Code 2007, is
  1 24 amended by striking the subsection.
  1 25    Sec. 4.  Section 523A.102, Code 2007, is amended by adding
  1 26 the following new subsection:
  1 27    NEW SUBSECTION.  26A.  "Sales agent" means a person,
  1 28 including an employee, who is authorized by a seller to sell
  1 29 cemetery merchandise, funeral merchandise, funeral services,
  1 30 or a combination thereof, on behalf of the seller.
  1 31    Sec. 5.  Section 523A.102, subsection 27, Code 2007, is
  1 32 amended to read as follows:
  1 33    27.  "Seller" or "preneed seller" means a person doing
  1 34 business within this state, including a person doing business
  1 35 within this state who sells insurance, who advertises, sells,
  2  1 promotes, or offers to furnish cemetery merchandise, funeral
  2  2 merchandise, funeral services, or a combination thereof when
  2  3 performance or delivery may be more than one hundred twenty
  2  4 days following the initial payment on the account whether the
  2  5 transaction is completed or offered in person, through the
  2  6 mail, over the telephone, by the internet, or through any
  2  7 other means of commerce.  "Seller" or "preneed seller"
  2  8 includes any person performing any term of a purchase
  2  9 agreement executed within this state, and any person
  2 10 identified under a burial account as the provider of cemetery
  2 11 merchandise, funeral merchandise, funeral services, or a
  2 12 combination thereof.
  2 13    Sec. 6.  Section 523A.201, subsection 3, Code 2007, is
  2 14 amended to read as follows:
  2 15    3.  If a purchase agreement for cemetery merchandise,
  2 16 funeral merchandise, funeral services, or a combination
  2 17 thereof provides that payments are to be made in installments,
  2 18 the seller shall deposit eighty percent of each payment in the
  2 19 trust fund until the full amount required to be placed in
  2 20 trust has been deposited.  If the purchase agreement is
  2 21 financed with or sold to a financial institution, the purchase
  2 22 agreement shall be considered paid in full and the trust
  2 23 requirements shall be satisfied within fifteen days after the
  2 24 close of the month in which the seller receives funds from the
  2 25 financial institution.
  2 26    Sec. 7.  Section 523A.201, subsection 5, Code 2007, is
  2 27 amended by striking the subsection and inserting in lieu
  2 28 thereof the following:
  2 29    5.  Unless a seller deposits all of each payment in a trust
  2 30 fund that meets the requirements of this section and section
  2 31 523A.202, the seller shall have a fidelity bond or similar
  2 32 insurance in an amount of not less than fifty thousand dollars
  2 33 to protect against the loss of purchaser payments not placed
  2 34 in trust within the time period required by this section and
  2 35 section 523A.202.  The commissioner may require a greater
  3  1 amount as the commissioner determines is necessary.  If the
  3  2 seller changes ownership, the fidelity bond or similar
  3  3 insurance shall continue in force for at least one year after
  3  4 the transfer of ownership.
  3  5    Sec. 8.  Section 523A.201, subsections 8 and 10, Code 2007,
  3  6 are amended to read as follows:
  3  7    8.  Interest or income earned on amounts deposited in trust
  3  8 shall remain in trust under the same terms and conditions as
  3  9 payments made under the purchase agreement, except that the
  3 10 seller a limited liability corporation that was formed in 2002
  3 11 for the purpose of purchasing a cemetery from a foreign entity
  3 12 reorganizing under bankruptcy and such corporation is
  3 13 comprised of six establishments all located within the same
  3 14 county may withdraw so much of the interest or income as
  3 15 represents the difference between the amount needed to adjust
  3 16 the trust funds for inflation as set by the commissioner based
  3 17 on the consumer price index and the interest or income earned
  3 18 during the preceding year not to exceed fifty percent of the
  3 19 total interest or income on a calendar=year basis.  The early
  3 20 withdrawal of interest or income under this provision does not
  3 21 affect the purchaser's right to a credit of such interest or
  3 22 income in the event of a nonguaranteed price agreement,
  3 23 cancellation, or nonperformance by the seller such limited
  3 24 liability corporation.
  3 25    10.  If a seller voluntarily or involuntarily ceases doing
  3 26 business and the seller's obligation to provide merchandise or
  3 27 services has not been assumed by another establishment seller
  3 28 holding a current establishment permit preneed seller's
  3 29 license, all trust funds, including accrued interest or
  3 30 income, shall be repaid to the purchaser within one hundred
  3 31 twenty thirty days following the seller's cessation of
  3 32 business or, in the event of circumstances where a payment is
  3 33 not possible within one hundred twenty days, as soon as is
  3 34 reasonably practicable.  A seller may petition the
  3 35 commissioner, upon a showing of good cause, for a longer
  4  1 period of time for repayment.  A seller shall notify the
  4  2 commissioner at least thirty days prior to ceasing business.
  4  3    Sec. 9.  Section 523A.202, subsection 4, Code 2007, is
  4  4 amended to read as follows:
  4  5    4.  This section does not prohibit moving trust funds from
  4  6 one financial institution to another if the commissioner is
  4  7 notified of the change within thirty days of the transfer of
  4  8 the trust funds.
  4  9    Sec. 10.  Section 523A.203, Code 2007, is amended by adding
  4 10 the following new subsection:
  4 11    NEW SUBSECTION.  7.  Unless proceeding under section
  4 12 523A.403, investment and management decisions for all trust
  4 13 funds shall be made in accordance with the provisions of
  4 14 section 633A.4302.
  4 15    Sec. 11.  Section 523A.204, Code 2007, is amended by
  4 16 striking the section and inserting in lieu thereof the
  4 17 following:
  4 18    523A.204  PRENEED SELLER ANNUAL REPORTING REQUIREMENTS.
  4 19    1.  A preneed seller shall file with the commissioner not
  4 20 later than April 1 of each year an annual report on a form
  4 21 prescribed by the commissioner.
  4 22    2.  A preneed seller filing an annual report shall pay a
  4 23 filing fee of ten dollars per purchase agreement sold during
  4 24 the year covered by the report.  Duplicate fees are not
  4 25 required for the same purchase agreement.  If a purchase
  4 26 agreement has multiple sellers, the fee shall be paid by the
  4 27 preneed seller actually providing the merchandise and
  4 28 services.
  4 29    3.  All records maintained by the commissioner under this
  4 30 section shall be confidential pursuant to section 22.7,
  4 31 subsection 58, and shall not be made available for inspection
  4 32 or copying except upon the approval of the commissioner or the
  4 33 attorney general.
  4 34    4.  The commissioner shall levy an administrative penalty
  4 35 in the amount of five hundred dollars against a preneed seller
  5  1 that fails to file the annual report when due, payable to the
  5  2 state for deposit in the general fund of the state.
  5  3    5.  A preneed seller that fails to file the annual report
  5  4 when due shall immediately cease soliciting or executing
  5  5 purchase agreements until the annual report is filed and any
  5  6 administrative penalty assessed has been paid.
  5  7    Sec. 12.  Section 523A.206, Code 2007, is amended by
  5  8 striking the section and inserting in lieu thereof the
  5  9 following:
  5 10    523A.206  EXAMINATIONS == AUTHORITY AND SCOPE.
  5 11    1.  The commissioner may conduct an examination under this
  5 12 chapter of any seller as often as the commissioner deems
  5 13 appropriate.  If a seller has a trust arrangement, the
  5 14 commissioner shall conduct an examination of such seller doing
  5 15 business in this state not less than once every three years
  5 16 unless the seller has provided to the commissioner, on an
  5 17 annual basis, a certified copy of an audit conducted by an
  5 18 independent certified public accountant verifying compliance
  5 19 with this chapter.  The commissioner may require an audit of a
  5 20 seller, or other person by a certified public accountant to
  5 21 verify compliance with the requirements of this chapter,
  5 22 including rules adopted and orders issued pursuant to this
  5 23 chapter.
  5 24    2.  A seller shall reimburse the division for the expense
  5 25 of conducting the examination, including an audit conducted by
  5 26 a certified public accountant, unless the commissioner waives
  5 27 this requirement, or the seller has previously provided to the
  5 28 commissioner a certified copy of an audit conducted by an
  5 29 independent certified public accountant verifying compliance
  5 30 with this chapter for each year in question and the
  5 31 examination conducted by the commissioner does not disclose
  5 32 that the seller has not complied with this chapter for the
  5 33 years in question.  The expense of an examination involving
  5 34 multiple sellers or other persons shall be prorated among them
  5 35 upon any reasonable basis as determined by the commissioner.
  6  1    3.  For purposes of completing an examination under this
  6  2 chapter, the commissioner may examine or investigate any
  6  3 person, or the business of any person, if the examination or
  6  4 investigation is, in the sole discretion of the commissioner,
  6  5 necessary or material to the examination of the seller.
  6  6    4.  Upon determining that an examination should be
  6  7 conducted, the commissioner may appoint one or more examiners
  6  8 to perform the examination and instruct those examiners as to
  6  9 the scope of the examination.
  6 10    5.  A seller, or other person from whom information is
  6 11 sought, and its officers, directors, employees, and agents
  6 12 shall provide to the examiners appointed under subsection 4,
  6 13 timely, convenient, and free access at their offices, at all
  6 14 reasonable hours, to all books, records, accounts, papers,
  6 15 documents, and all electronic or other recordings related to
  6 16 the property, assets, business, and affairs of the seller
  6 17 being examined and shall facilitate the examination as much as
  6 18 possible.
  6 19    a.  The refusal of a seller, by its officers, directors,
  6 20 employees, or agents, to submit to an examination or to comply
  6 21 with a reasonable written request of an examiner shall
  6 22 constitute grounds for the suspension, revocation, or
  6 23 nonrenewal of any license held by the seller to engage in
  6 24 business subject to the commissioner's jurisdiction.
  6 25    b.  If a seller declines or refuses to submit to an
  6 26 examination as provided in this chapter, the commissioner
  6 27 shall immediately suspend, revoke, or nonrenew any license
  6 28 held by the seller or business to engage in business subject
  6 29 to the commissioner's jurisdiction, and shall report the
  6 30 commissioner's action to the attorney general, who shall
  6 31 immediately apply to the district court for the appointment of
  6 32 a receiver to administer the final affairs of the seller.
  6 33    6.  The commissioner shall not make information obtained in
  6 34 the course of an examination public, except when a duty under
  6 35 this chapter requires the commissioner to take action against
  7  1 a seller or to cooperate with another law enforcement agency,
  7  2 or when the commissioner is called as a witness in a civil or
  7  3 criminal proceeding.
  7  4    7.  This section shall not be construed to limit the
  7  5 commissioner's authority to terminate or suspend any
  7  6 examination in order to pursue other legal or regulatory
  7  7 actions pursuant to this chapter.  Findings of fact and
  7  8 conclusions made pursuant to an examination are deemed to be
  7  9 prima facie evidence in any legal or regulatory action.
  7 10    Sec. 13.  NEW SECTION.  523A.207  AUDITS BY CERTIFIED
  7 11 PUBLIC ACCOUNTANTS.
  7 12    A purchase agreement shall not be sold or transferred, as
  7 13 part of the sale of a business or the assets of a business,
  7 14 until an audit has been performed by a certified public
  7 15 accountant and filed with the commissioner that expresses the
  7 16 auditor's opinion of the adequacy of funding related to the
  7 17 purchase agreements to be sold or transferred.
  7 18    Sec. 14.  Section 523A.404, subsection 1, unnumbered
  7 19 paragraph 1, Code 2007, is amended to read as follows:
  7 20    Trust requirements do not apply to payments made pursuant
  7 21 to a purchase agreement executed prior to July 1, 2007, for
  7 22 outer burial containers made of either polystyrene or
  7 23 polypropylene or cemetery merchandise delivered to the
  7 24 purchaser or stored in an independent third=party storage
  7 25 facility not owned or controlled by the seller when approved
  7 26 by the commissioner.  The seller or the storage facility must
  7 27 demonstrate that they will do all of the following:
  7 28    Sec. 15.  Section 523A.404, subsection 1, paragraphs f and
  7 29 h, Code 2007, are amended to read as follows:
  7 30    f.  Use a method of storage that allows for visual audits
  7 31 examinations of the merchandise.
  7 32    h.  File a consent to be audited examined and inspected by
  7 33 the commissioner.
  7 34    Sec. 16.  Section 523A.501, Code 2007, is amended to read
  7 35 as follows:
  8  1    523A.501  ESTABLISHMENT == PERMITS PRENEED SELLERS ==
  8  2 LICENSES.
  8  3    1.  A person shall not advertise, sell, promote, or offer
  8  4 to furnish cemetery merchandise, funeral merchandise, funeral
  8  5 services, or a combination thereof when performance or
  8  6 delivery may be more than one hundred twenty days following
  8  7 the initial payment on the account without an establishment
  8  8 permit a preneed seller's license.  Each establishment must
  8  9 have an establishment permit.
  8 10    2.  An application for an establishment permit a preneed
  8 11 seller's license shall be filed on a form prescribed by the
  8 12 commissioner, and be accompanied by a fifty dollar filing fee,
  8 13 and include a copy of each purchase agreement the person will
  8 14 use for sales of cemetery merchandise, funeral merchandise,
  8 15 funeral services, or a combination thereof.
  8 16    3.  The application shall contain:
  8 17    a.  The name and address of the establishment.
  8 18    b.  The name and address of any additional provider of
  8 19 cemetery merchandise, funeral merchandise, funeral services,
  8 20 or a combination thereof.
  8 21    c.  The name and address of each owner, officer, or other
  8 22 official of the establishment, including when relevant the
  8 23 chief executive officer and the members of the board of
  8 24 directors.
  8 25    d.  A description of any common business enterprise or
  8 26 parent company.
  8 27    e.  The types of cemetery merchandise, funeral merchandise,
  8 28 funeral services, or a combination thereof to be sold.
  8 29    f.  The types of trust or trust alternatives utilized by
  8 30 the establishment and a list of the financial institutions,
  8 31 storage facilities, surety companies, and insurance companies
  8 32 utilized by the establishment on a regular basis.
  8 33    4.  A permit holder shall inform the commissioner of
  8 34 changes in the information required to be provided by
  8 35 subsection 3 within thirty days of the change.
  9  1    3.  a.  The commissioner shall request and obtain,
  9  2 notwithstanding section 692.2, subsection 5, criminal history
  9  3 data for any applicant for an initial license issued pursuant
  9  4 to this section, any applicant for reinstatement of a license
  9  5 issued pursuant to this section, or any licensee who is being
  9  6 monitored as a result of a commission order or agreement
  9  7 resolving an administrative disciplinary action, for the
  9  8 purpose of evaluating the applicant's or licensee's
  9  9 eligibility for licensure or suitability for continued
  9 10 practice as a preneed seller.  The commissioner shall adopt
  9 11 rules pursuant to chapter 17A to implement this section.  The
  9 12 commissioner shall inform the applicant or licensee of the
  9 13 criminal history requirement and obtain a signed waiver from
  9 14 the applicant or licensee prior to submitting a criminal
  9 15 history data request.
  9 16    b.  A request for criminal history data shall be submitted
  9 17 to the department of public safety, division of criminal
  9 18 investigation, pursuant to section 692.2, subsection 1.  The
  9 19 commissioner may also require such applicants or licensees to
  9 20 provide a full set of fingerprints, in a form and manner
  9 21 prescribed by the commission.  Such fingerprints may be
  9 22 submitted to the federal bureau of investigation through the
  9 23 state criminal history repository for a national criminal
  9 24 history check.  The commissioner may authorize alternate
  9 25 methods or sources for obtaining criminal history record
  9 26 information.  The commissioner may, in addition to any other
  9 27 fees, charge and collect such amounts as may be incurred by
  9 28 the commissioner, the department of public safety, or the
  9 29 federal bureau of investigation in obtaining criminal history
  9 30 information.  Amounts collected shall be considered repayment
  9 31 receipts as defined in section 8.2.
  9 32    c.  Criminal history information relating to an applicant
  9 33 or licensee obtained by the commissioner pursuant to this
  9 34 section is confidential.  The commissioner may, however, use
  9 35 such information in a license denial proceeding.
 10  1    4.  The commissioner shall request and obtain a financial
 10  2 history for any applicant for an initial license issued
 10  3 pursuant to this section, any applicant for reinstatement of a
 10  4 license issued pursuant to this section, or any licensee who
 10  5 is being monitored as a result of a commission order or
 10  6 agreement resolving an administrative disciplinary action, for
 10  7 the purpose of evaluating the applicant's or licensee's
 10  8 eligibility for licensure or suitability for continued
 10  9 practice as a preneed seller.  "Financial history" means the
 10 10 record of a person's current loans, the date of a person's
 10 11 loans, the amount of the loans, the person's payment record on
 10 12 the loans, current liens against the person's property, and
 10 13 the person's most recent financial statement setting forth the
 10 14 assets, liabilities, and the net worth of the person.
 10 15    5.  An establishment permit A preneed seller's license is
 10 16 not assignable or transferable.  A permit holder licensee
 10 17 selling all or part of an establishment a business entity that
 10 18 has a preneed seller's license shall cancel the permit
 10 19 license, and the purchaser shall apply for a new permit
 10 20 license in the purchaser's name within thirty days of the
 10 21 sale.
 10 22    6.  If no denial order is in effect and no proceeding is
 10 23 pending under section 523A.503, the application becomes
 10 24 effective at noon of the thirtieth day after a completed
 10 25 application or an amendment completing the application is
 10 26 filed, unless waived by the applicant.  The commissioner may
 10 27 specify an earlier effective date.  Automatic effectiveness
 10 28 under this subsection shall not be deemed approval of the
 10 29 application.  If the commissioner does not grant the permit
 10 30 license, the commissioner shall notify the person in writing
 10 31 of the reasons for the denial.
 10 32    7.  An initial permit is valid for two years from the date
 10 33 the application is filed.  A permit may preneed seller's
 10 34 license shall be renewed for two every four years by filing
 10 35 the form prescribed by the commissioner under subsection 2,
 11  1 accompanied by a ten dollar renewal fee in an amount set by
 11  2 the commissioner by rule.  Submission of purchase agreements
 11  3 is not required for renewals unless the purchase agreements
 11  4 have been modified since the last filing.
 11  5    8.  The commissioner may by rule create or accept a
 11  6 multijurisdiction establishment permit preneed seller's
 11  7 license.  If the establishment permit preneed seller's license
 11  8 is issued by another jurisdiction, the rules shall require the
 11  9 filing of an application or notice form and payment of the
 11 10 applicable filing fee of fifty dollars for an initial
 11 11 application and ten dollars for a renewal application.  The
 11 12 application or notice form utilized and the effective dates
 11 13 and terms of the permit license may vary from the provisions
 11 14 set forth in subsections 2, 3, and 7 this section.
 11 15    Sec. 17.  Section 523A.502, Code 2007, is amended to read
 11 16 as follows:
 11 17    523A.502  SALES PERMITS AGENTS == LICENSES.
 11 18    1.  A person shall not advertise, sell, promote, or offer
 11 19 to furnish cemetery merchandise, funeral merchandise, funeral
 11 20 services, or a combination thereof when performance or
 11 21 delivery may be more than one hundred twenty days following
 11 22 initial payment on the account without unless the person has a
 11 23 sales permit.  A permit holder must be an employee or license
 11 24 and is a sales agent of a person holding an establishment
 11 25 permit who can deliver the cemetery merchandise, funeral
 11 26 merchandise, funeral services, or a combination thereof being
 11 27 sold a preneed seller's license.  A person must have a sales
 11 28 permit for each establishment at which the person works.
 11 29 However, a person may apply for a sales permit covering
 11 30 multiple establishments, if the establishments have common
 11 31 ownership.  The establishment permit holder preneed seller
 11 32 licensee is liable for the acts of its employees and sales
 11 33 agents performed in advertising, selling, promoting, or
 11 34 offering to furnish, upon the future death of a person named
 11 35 or implied in a purchase agreement, cemetery merchandise,
 12  1 funeral merchandise, funeral services, or a combination
 12  2 thereof.
 12  3    2.  This chapter does not permit a person to practice
 12  4 mortuary science without a license.  A person holding a
 12  5 current sales permit license may advertise, sell, promote, or
 12  6 offer to furnish a funeral director's services as an employee
 12  7 or agent of a funeral establishment furnishing the funeral
 12  8 services under chapter 156.
 12  9    3.  An application for a sales permit license shall be
 12 10 filed on a form prescribed by the commissioner and be
 12 11 accompanied by a five dollar filing fee in an amount set by
 12 12 the commissioner by rule.
 12 13    4.  The application shall contain:
 12 14    a.  The name and address of the person.
 12 15    b.  The name and address of the person's employer and each
 12 16 establishment on whose behalf the person will be advertising,
 12 17 selling, promoting, or offering to furnish cemetery
 12 18 merchandise, funeral merchandise, funeral services, or a
 12 19 combination thereof.
 12 20    c.  The name and address of the provider who will provide
 12 21 the cemetery merchandise, funeral merchandise, funeral
 12 22 services, or a combination thereof if different from the
 12 23 person's employer.
 12 24    4.  a.  The commissioner shall request and obtain,
 12 25 notwithstanding section 692.2, subsection 5, criminal history
 12 26 data for any applicant for an initial license issued pursuant
 12 27 to this section, any applicant for reinstatement of a license
 12 28 issued pursuant to this section, or any licensee who is being
 12 29 monitored as a result of a commission order or agreement
 12 30 resolving an administrative disciplinary action, for the
 12 31 purpose of evaluating the applicant's or licensee's
 12 32 eligibility for licensure or suitability for continued
 12 33 practice as a sales agent.  The commissioner shall adopt rules
 12 34 pursuant to chapter 17A to implement this section.  The
 12 35 commissioner shall inform the applicant or licensee of the
 13  1 criminal history requirement and obtain a signed waiver from
 13  2 the applicant or licensee prior to submitting a criminal
 13  3 history data request.
 13  4    b.  A request for criminal history data shall be submitted
 13  5 to the department of public safety, division of criminal
 13  6 investigation, pursuant to section 692.2, subsection 1.  The
 13  7 commissioner may also require such applicants or licensees, to
 13  8 provide a full set of fingerprints, in a form and manner
 13  9 prescribed by the commission.  Such fingerprints may be
 13 10 submitted to the federal bureau of investigation through the
 13 11 state criminal history repository for a national criminal
 13 12 history check.  The commissioner may authorize alternate
 13 13 methods or sources for obtaining criminal history record
 13 14 information.  The commissioner may, in addition to any other
 13 15 fees, charge and collect such amounts as may be incurred by
 13 16 the commissioner, the department of public safety, or the
 13 17 federal bureau of investigation in obtaining criminal history
 13 18 information.  Amounts collected shall be considered repayment
 13 19 receipts as defined in section 8.2.
 13 20    c.  Criminal history information relating to an applicant
 13 21 or licensee obtained by the commissioner pursuant to this
 13 22 section is confidential.  The commissioner may, however, use
 13 23 such information in a license denial proceeding.
 13 24    5.  An initial permit expires one year from the date the
 13 25 application is filed.  The permit may sales license shall be
 13 26 renewed for every four years by filing the form prescribed by
 13 27 the commissioner under subsection 3, accompanied by a twenty
 13 28 dollar filing renewal fee in an amount set by the commissioner
 13 29 by rule.
 13 30    6.  A sales agent licensed pursuant to this section shall
 13 31 satisfactorily fulfill continuing education requirements for
 13 32 the license as prescribed by the commissioner by rule.
 13 33    6.  7.  A permit holder sales licensee shall inform the
 13 34 commissioner of changes in the information required to be
 13 35 provided by subsection 4 in the application within thirty days
 14  1 of the change.
 14  2    7.  8.  A sales permit license is not assignable or
 14  3 transferable.  An establishment selling all or part of its
 14  4 business to a purchaser shall cancel the establishment's sales
 14  5 permit.  The purchaser shall apply for a new sales permit in
 14  6 the purchaser's name within thirty days of the sale.
 14  7    8.  9.  If no denial order is in effect and no proceeding
 14  8 is pending under section 523A.503, the application becomes
 14  9 effective at noon of the thirtieth day after a completed
 14 10 application or an amendment completing the application is
 14 11 filed, unless waived by the applicant.  The commissioner may
 14 12 specify an earlier effective date.  Automatic effectiveness
 14 13 under this subsection shall not be deemed approval of the
 14 14 application.  If the commissioner does not grant the permit
 14 15 license, the commissioner shall notify the applicant in
 14 16 writing of the reasons for the denial.
 14 17    9.  10.  The commissioner may by rule create or accept a
 14 18 multijurisdiction sales permit license.  If the sales permit
 14 19 license is issued by another jurisdiction, the rules shall
 14 20 require the filing of an application or notice form and
 14 21 payment of the applicable filing fee of five dollars for each
 14 22 year.  The application or notice form utilized and the
 14 23 effective dates and terms of the permit license may vary from
 14 24 the provisions set forth in subsections 3 and 5.
 14 25    Sec. 18.  NEW SECTION.  523A.502A  SALES AGENT ANNUAL
 14 26 REPORTING REQUIREMENTS.
 14 27    1.  A sales agent shall file with the commissioner not
 14 28 later than April 1 of each year an annual report on a form
 14 29 prescribed by the commissioner describing each purchase
 14 30 agreement sold by the sales agent during the year.
 14 31    2.  All records maintained by the commissioner under this
 14 32 section shall be confidential pursuant to section 22.7,
 14 33 subsection 58, and shall not be made available for inspection
 14 34 or copying except upon the approval of the commissioner or the
 14 35 attorney general.
 15  1    3.  The commissioner shall levy an administrative penalty
 15  2 in the amount of five hundred dollars against a sales agent
 15  3 who fails to file an annual report when due, payable to the
 15  4 state for deposit in the general fund.
 15  5    4.  A sales agent who fails to file the annual report when
 15  6 due shall immediately cease soliciting or executing purchase
 15  7 agreements until the annual report is filed and any
 15  8 administrative penalty assessed has been paid.
 15  9    Sec. 19.  Section 523A.503, Code 2007, is amended to read
 15 10 as follows:
 15 11    523A.503  DENIAL, SUSPENSION, REVOCATION, AND SURRENDER OF
 15 12 PERMITS LICENSES.
 15 13    1.  The commissioner may, pursuant to chapter 17A, deny any
 15 14 permit license application, or immediately suspend, revoke, or
 15 15 otherwise impose disciplinary action related to any permit
 15 16 license issued under this chapter section 523A.501 or 523A.502
 15 17 for several reasons, including but not limited to:
 15 18    a.  Committing a fraudulent act, engaging in a fraudulent
 15 19 practice, or violating any provision of this chapter or any
 15 20 implementing rule or order issued under this chapter.
 15 21    b.  Violating any other state or federal law applicable to
 15 22 the conduct of the applicant's or permit holder's licensee's
 15 23 business.
 15 24    c.  Insolvency or financial condition.
 15 25    d.  The permit holder licensee, for the purpose of avoiding
 15 26 the trust requirement for funeral services, attributes amounts
 15 27 paid under the purchase agreement to cemetery merchandise or
 15 28 funeral merchandise that is delivered under section 523A.404
 15 29 rather than to funeral services sold to the purchaser.  The
 15 30 sale of funeral services at a lower price when the sale is
 15 31 made in conjunction with the sale of cemetery merchandise or
 15 32 funeral merchandise to be delivered under section 523A.404
 15 33 than the services are regularly and customarily sold for when
 15 34 not sold in conjunction with cemetery merchandise or funeral
 15 35 merchandise is evidence that the permit holder licensee is
 16  1 acting with the purpose of avoiding the trust requirement for
 16  2 funeral services under section 523A.201.
 16  3    e.  Engaging in a deceptive act or practice or deliberately
 16  4 misrepresenting or omitting a material fact regarding the sale
 16  5 of cemetery merchandise, funeral merchandise, funeral
 16  6 services, or a combination thereof under this chapter.
 16  7    f.  Conviction of a criminal offense involving dishonesty
 16  8 or a false statement including but not limited to fraud,
 16  9 theft, misappropriation of funds, falsification of documents,
 16 10 deceptive acts or practices, or other related offenses.
 16 11    g.  Inability to provide the cemetery merchandise, funeral
 16 12 merchandise, funeral services, or a combination thereof which
 16 13 the applicant or permit holder licensee purports to sell.
 16 14    h.  The applicant or permit holder licensee sells the
 16 15 business without filing a prior notice of sale with the
 16 16 commissioner.  The permit license shall be revoked thirty days
 16 17 following such sale.
 16 18    i.  Selling by a person who is not an employee or agent of
 16 19 the applicant or permit holder a licensed sales agent.
 16 20    j.  The applicant or licensee is named in an order issued
 16 21 pursuant to section 523A.807, subsection 3, paragraph "b".
 16 22    2.  The commissioner may, for good cause shown, suspend any
 16 23 permit license for a period not exceeding thirty days, pending
 16 24 investigation.
 16 25    3.  Except as provided in subsection 2, a permit license
 16 26 shall not be revoked, suspended, or otherwise be the subject
 16 27 of disciplinary action except after notice and hearing under
 16 28 chapter 17A.
 16 29    4.  Any permit holder licensee may surrender a permit
 16 30 license by delivering to the commissioner written notice that
 16 31 the permit holder licensee surrenders the permit license, but
 16 32 the surrender shall not affect the permit holder's licensee's
 16 33 civil or criminal liability for acts committed before the
 16 34 surrender.
 16 35    5.  Denial, revocation, suspension, or surrender of a
 17  1 permit license does not impair or affect the obligation of any
 17  2 preexisting lawful agreement between the permit holder
 17  3 licensee and any person.
 17  4    6.  The commissioner may impose a civil penalty in an
 17  5 amount not exceeding ten thousand dollars per violation
 17  6 against any person violating this chapter.  Each day of a
 17  7 continuing violation constitutes a separate offense.
 17  8    Sec. 20.  NEW SECTION.  523A.504  APPOINTMENT OF SALES
 17  9 AGENTS.
 17 10    1.  A person shall not sell or offer to furnish cemetery
 17 11 merchandise, funeral merchandise, funeral services, or a
 17 12 combination thereof when performance or delivery may be more
 17 13 than one hundred twenty days following initial payment on the
 17 14 account except through a sales agent who holds a sales license
 17 15 issued pursuant to section 523A.502.  If a person holding a
 17 16 preneed seller's license appoints a sales agent to act on
 17 17 behalf of the preneed seller, the person shall file a notice
 17 18 of such appointment with the commissioner within thirty days
 17 19 of the appointment, in a format approved by the commissioner,
 17 20 and annually thereafter.
 17 21    2.  A preneed seller shall pay an annual fee of five
 17 22 dollars for each sales agent appointed by the preneed seller,
 17 23 which fee shall be submitted with the annual report.
 17 24    Sec. 21.  Section 523A.601, subsection 1, paragraph a, Code
 17 25 2007, is amended to read as follows:
 17 26    a.  Identify the seller preneed seller by name and license
 17 27 number, the salesperson's permit and establishment sales agent
 17 28 by name and permit license number, the expiration date of the
 17 29 salesperson's permit, the purchaser, and the person for whom
 17 30 the cemetery merchandise, funeral merchandise, funeral
 17 31 services, or a combination thereof is purchased, if other than
 17 32 the purchaser.
 17 33    Sec. 22.  Section 523A.601, Code 2007, is amended by adding
 17 34 the following new subsection:
 17 35    NEW SUBSECTION.  6.  a.  A purchase agreement that is
 18  1 funded by a trust shall include a conspicuous statement in
 18  2 language substantially similar to the following language:
 18  3    "For your prearranged funeral agreement, we will deposit
 18  4 not less than eighty percent of your payments in trust at
 18  5 (name of financial institution), (street address), (city),
 18  6 (state) (zip code) within fifteen days following receipt of
 18  7 the funds.  For your protection, you have the right to contact
 18  8 the financial institution directly to confirm that the deposit
 18  9 of these funds occurred as required by law.  If you are unable
 18 10 to confirm the deposit of these funds in trust, you may
 18 11 contact the Iowa insurance division for assistance by calling
 18 12 the insurance division at (telephone number) or by mail at
 18 13 (street address), (city), Iowa (zip code)."
 18 14    b.  A purchase agreement that is funded with an insurance
 18 15 policy or an annuity shall include a conspicuous statement in
 18 16 language substantially similar to the following language:
 18 17    "An (insurance policy or annuity) will be purchased from
 18 18 (name of issuer of the policy or annuity), (street address),
 18 19 (city), (state) (zip code).  You should receive confirmation
 18 20 of the purchase of an insurance policy or certificate, or an
 18 21 annuity within sixty days of making payment.  Delivery of the
 18 22 actual insurance policy or certificate or annuity shall also
 18 23 constitute confirmation.  For your protection, you have the
 18 24 right to confirm that the insurance policy or annuity is
 18 25 issued as required by law.  If you do not receive confirmation
 18 26 that an insurance policy or certificate or an annuity has been
 18 27 purchased or receive the insurance policy or certificate or
 18 28 the annuity, you should report this fact to the Iowa insurance
 18 29 division, by calling the insurance division at (telephone
 18 30 number).  Written reports should be mailed to the Iowa
 18 31 insurance division at (street address), (city), Iowa (zip
 18 32 code)."
 18 33    c.  A purchase agreement that is funded with a surety bond
 18 34 shall include a conspicuous statement in language
 18 35 substantially similar to the following language:
 19  1    "Coverage under a surety bond in the amount of $(amount)
 19  2 will be purchased from (name of issuer of surety bond),
 19  3 (street address), (city), (state) (zip code) to fund your
 19  4 purchase.  If you pay pursuant to your purchase agreement with
 19  5 a single payment, you should receive confirmation of the
 19  6 purchase of a surety bond within sixty days of making the
 19  7 payment.  If you pay pursuant to your purchase agreement with
 19  8 multiple, periodic payments, you should receive confirmation
 19  9 of the purchase of a surety bond within sixty days of making
 19 10 the first payment and within sixty days of making the last
 19 11 payment pursuant to the agreement.  For your protection, you
 19 12 have the right to confirm that the surety bond is issued as
 19 13 required by law.  If you do not receive confirmation of
 19 14 coverage under a surety bond within sixty days of making the
 19 15 first payment and within sixty days of making the last
 19 16 payment, you should report this fact to the Iowa insurance
 19 17 division, by calling the insurance division at (telephone
 19 18 number).  Written reports should be mailed to the Iowa
 19 19 insurance division at (street address), (city), Iowa (zip
 19 20 code)."
 19 21    Sec. 23.  NEW SECTION.  523A.603  SECURITY AND NOTICE
 19 22 REQUIREMENTS.
 19 23    1.  If a purchase agreement is funded with an insurance
 19 24 policy or an annuity, the purchaser shall receive a notice
 19 25 thereof from the insurance company within sixty days of making
 19 26 payment.  The notice shall include the name and address of the
 19 27 insurance company, the policy number of the insurance policy
 19 28 that secures the agreement, the name of the insured under the
 19 29 insurance policy or annuity, and the amount of the accumulated
 19 30 death benefit.  Delivery of the insurance policy or
 19 31 certificate or annuity shall satisfy this notice requirement.
 19 32    2.  If a purchase agreement is funded by a surety bond, the
 19 33 purchaser shall receive a notice from the surety company that
 19 34 evidences coverage under the bond, the name of the purchaser
 19 35 or beneficiary, and the amount of coverage.  If the purchase
 20  1 agreement is paid with a single payment, the purchaser shall
 20  2 receive notice of the surety bond within sixty days of making
 20  3 the payment.  If the purchase agreement is being paid with
 20  4 multiple, periodic payments, the purchaser shall receive
 20  5 notice of the surety bond within sixty days of making the last
 20  6 payment.  Compliance with this notice requirement does not
 20  7 require a seller to purchase individual surety bonds for each
 20  8 purchaser and beneficiary.  A seller may file a single bond
 20  9 with the commissioner.
 20 10    Sec. 24.  NEW SECTION.  523A.604  PURCHASE AGREEMENTS ==
 20 11 NUMBERING.
 20 12    Purchase agreements for cemetery merchandise, funeral
 20 13 merchandise, funeral services, or a combination thereof shall
 20 14 be sequentially numbered by each seller in compliance with
 20 15 procedures specified by the commissioner by rules adopted
 20 16 under chapter 17A.
 20 17    Sec. 25.  Section 523A.703, Code 2007, is amended to read
 20 18 as follows:
 20 19    523A.703  FRAUDULENT PRACTICES.
 20 20    A Except as otherwise provided in section 523A.704, a
 20 21 person who willfully commits any of the following acts commits
 20 22 a fraudulent practice and is punishable as provided in chapter
 20 23 714:
 20 24    1.  Knowingly fails Fails to comply with any requirement of
 20 25 this chapter, or any rule adopted or order issued under this
 20 26 chapter.
 20 27    2.  Knowingly makes Makes, causes to be made, or subscribes
 20 28 to a false statement or representation in a report or other
 20 29 document required under this chapter, implementing rules, or
 20 30 orders, or renders such a report or document misleading
 20 31 through the deliberate omission of information properly
 20 32 belonging in the report or document.
 20 33    3.  Conspires to defraud in In connection with the sale of
 20 34 cemetery merchandise, funeral merchandise, funeral services,
 20 35 or a combination thereof under this chapter, directly or
 21  1 indirectly makes an untrue statement of a material fact or
 21  2 omits to state a material fact that is necessary to make the
 21  3 statements made, in light of the circumstances under which
 21  4 they were made, not misleading.
 21  5    4.  Fails to deposit funds under sections 523A.201 and
 21  6 523A.202 or withdraws any funds in a manner inconsistent with
 21  7 this chapter.  Unless the purchase agreement expressly
 21  8 provides otherwise, excludes in the sale of cemetery
 21  9 merchandise, funeral merchandise, or a combination thereof,
 21 10 funeral services that are necessary for the delivery, use, or
 21 11 installation of the cemetery merchandise or funeral
 21 12 merchandise at the time of the burial or funeral.
 21 13    5.  Knowingly sells or offers cemetery merchandise, funeral
 21 14 merchandise, funeral services, or a combination thereof
 21 15 without an establishment permit.
 21 16    6.  Deliberately misrepresents or omits a material fact
 21 17 relative to the sale of cemetery merchandise, funeral
 21 18 merchandise, funeral services, or a combination thereof under
 21 19 this chapter.  When selling cemetery merchandise or funeral
 21 20 merchandise, a seller shall not exclude the funeral services
 21 21 necessary for the delivery, use, or installation of the
 21 22 cemetery merchandise or funeral merchandise at the time of the
 21 23 funeral or burial unless the purchase agreement expressly
 21 24 provides otherwise.
 21 25    Sec. 26.  NEW SECTION.  523A.704  VIOLATIONS.
 21 26    A person who willfully violates section 523A.501,
 21 27 subsection 1, or section 523A.502, subsection 1, is guilty of
 21 28 a class "D" felony.
 21 29    Sec. 27.  Section 523A.801, subsection 1, Code 2007, is
 21 30 amended to read as follows:
 21 31    1.  This chapter shall be administered by the commissioner.
 21 32 The deputy administrator appointed pursuant to section 502.601
 21 33 shall be the principal operations officer responsible to the
 21 34 commissioner for the routine administration of this chapter
 21 35 and management of the administrative staff.  In the absence of
 22  1 the commissioner, whether because of vacancy in the office due
 22  2 to absence, physical disability, or other cause, the deputy
 22  3 administrator shall, for the time being, have and exercise the
 22  4 authority conferred upon the commissioner.  The commissioner
 22  5 may by order from time to time delegate to the deputy
 22  6 administrator any or all of the functions assigned to the
 22  7 commissioner in this chapter.  The deputy administrator shall
 22  8 employ officers, attorneys, accountants, and other employees
 22  9 as needed for administering this chapter.
 22 10    Sec. 28.  Section 523A.801, Code 2007, is amended by adding
 22 11 the following new subsection:
 22 12    NEW SUBSECTION.  3.  The commissioner shall submit an
 22 13 annual report to the legislative oversight committee by
 22 14 October 1 of each year reporting on the administration of this
 22 15 chapter.  The report shall set forth any recommendations for
 22 16 changes in the law that the commissioner deems necessary or
 22 17 desirable to prevent abuses or evasions of this chapter or
 22 18 rules implementing this chapter or to rectify undesirable
 22 19 conditions in connection with the administration of this
 22 20 chapter or rules implementing this chapter.
 22 21    Sec. 29.  Section 523A.807, Code 2007, is amended by adding
 22 22 the following new subsections:
 22 23    NEW SUBSECTION.  3.  If the commissioner finds that a
 22 24 person has violated section 523A.201, 523A.202, 523A.401,
 22 25 523A.402, 523A.403, 523A.404, 523A.405, 523A.501, or 523A.502
 22 26 or any rule adopted pursuant thereto, the commissioner may
 22 27 order any or all of the following:
 22 28    a.  Payment of a civil penalty of not more than one
 22 29 thousand dollars for each violation, but not exceeding an
 22 30 aggregate of ten thousand dollars during any six=month period,
 22 31 except that if the commissioner finds that the person knew or
 22 32 reasonably should have known that the person was in violation
 22 33 of such provisions or rules adopted thereto, the penalty shall
 22 34 be not more than five thousand dollars for each violation, but
 22 35 not exceeding an aggregate of fifty thousand dollars during
 23  1 any six=month period.  The commissioner shall assess the
 23  2 penalty on the employer of an individual and not on the
 23  3 individual, if the commissioner finds that the violations
 23  4 committed by the individual were directed, encouraged,
 23  5 condoned, ignored, or ratified by the individual's employer.
 23  6    b.  Issuance of an order prohibiting the person committing
 23  7 a violation from selling funeral merchandise, cemetery
 23  8 merchandise, funeral services, or a combination thereof, and
 23  9 from managing, operating, or otherwise exercising control over
 23 10 any business entity that is subject to regulation under this
 23 11 chapter or chapter 523I.  A person who has been named in such
 23 12 an order may contest the order by filing a request for a
 23 13 contested case proceeding as provided in chapter 17A and in
 23 14 accordance with rules adopted by the commissioner.  The
 23 15 commissioner may, pursuant to chapter 17A, deny any
 23 16 application filed under section 523A.501 or 523A.502 if the
 23 17 applicant, or an officer, director, or owner of the applicant
 23 18 is named in a final order issued pursuant to this subsection.
 23 19    NEW SUBSECTION.  4.  The commissioner shall post on the
 23 20 website of the division of insurance of the department of
 23 21 commerce a list of all persons licensed under chapter 523A and
 23 22 an index of orders issued by the commissioner pertaining to
 23 23 such persons.
 23 24    Sec. 30.  Section 523A.811, subsection 1, Code 2007, is
 23 25 amended by adding the following new paragraph:
 23 26    NEW PARAGRAPH.  f.  A receivership has been established for
 23 27 a cemetery subject to chapter 523I that is owned or operated
 23 28 by a seller who is subject to this chapter.
 23 29    Sec. 31.  Section 523A.811, Code 2007, is amended by adding
 23 30 the following new subsection:
 23 31    NEW SUBSECTION.  3.  If a seller who is subject to this
 23 32 chapter owns or operates a cemetery subject to chapter 523I,
 23 33 for which a receivership has been established, the
 23 34 receivership provisions of section 523I.212 shall apply to any
 23 35 receivership established under this section.
 24  1    Sec. 32.  Section 523A.812, Code 2007, is amended to read
 24  2 as follows:
 24  3    523A.812  INSURANCE DIVISION REGULATORY FUND.
 24  4    The insurance division may authorize the creation of a
 24  5 special revenue fund in the state treasury, to be known as the
 24  6 insurance division regulatory fund.  The commissioner shall
 24  7 allocate annually from the fees paid pursuant to section
 24  8 523A.204, two dollars for each purchase agreement reported on
 24  9 an establishment permit holder's a preneed seller's annual
 24 10 report filed pursuant to section 523A.204 for deposit to the
 24 11 regulatory fund.  The remainder of the fees collected pursuant
 24 12 to section 523A.204 shall be deposited into the general fund
 24 13 of the state.  The commissioner shall also allocate annually
 24 14 the audit examination fees paid pursuant to section 523A.814
 24 15 and any examination expense reimbursement for deposit to the
 24 16 regulatory fund.  The moneys in the regulatory fund shall be
 24 17 retained in the fund.  The moneys are appropriated and,
 24 18 subject to authorization by the commissioner, may be used to
 24 19 pay auditors, audit examiners, examination expenses,
 24 20 investigative expenses, the expenses of mediation ordered by
 24 21 the commissioner, consumer education expenses, the expenses of
 24 22 a toll=free telephone line to receive consumer complaints, and
 24 23 the expenses of receiverships established under section
 24 24 523A.811.  If the commissioner determines that funding is not
 24 25 otherwise available to reimburse the expenses of a person who
 24 26 receives title to a cemetery subject to chapter 523I, pursuant
 24 27 to such a receivership, the commissioner shall use moneys in
 24 28 the regulatory fund as necessary to preserve, protect,
 24 29 restore, and maintain the physical integrity of that cemetery
 24 30 and to satisfy claims or demands for cemetery merchandise,
 24 31 funeral merchandise, and funeral services based on purchase
 24 32 agreements which the commissioner determines are just and
 24 33 outstanding.  An annual allocation to the regulatory fund
 24 34 shall not be imposed if the current balance of the fund
 24 35 exceeds two five hundred thousand dollars.
 25  1    Sec. 33.  Section 523A.814, Code 2007, is amended to read
 25  2 as follows:
 25  3    523A.814  AUDIT EXAMINATION FEE.
 25  4    In addition to the filing fee paid pursuant to section
 25  5 523A.204, subsection 5 2, an establishment a seller filing an
 25  6 annual report shall pay an audit examination fee in the amount
 25  7 of five dollars for each purchase agreement subject to a
 25  8 filing fee that is sold between July 1, 2005, and December 31,
 25  9 2007, and in the amount of ten dollars for each purchase
 25 10 agreement subject to a filing fee that is sold after December
 25 11 31, 2007.
 25 12    Sec. 34.  Section 523I.102, subsections 3 and 8, Code 2007,
 25 13 are amended to read as follows:
 25 14    3.  "Capital gains" means appreciation in the value of
 25 15 trust assets for which a market value may be determined with
 25 16 reasonable certainty after deduction of investment losses,
 25 17 taxes, expenses incurred in the sale of trust assets, any
 25 18 costs of the operation of the trust, examination expenses, and
 25 19 any annual audit fees expenses.
 25 20    8.  "Commissioner" means the commissioner of insurance or
 25 21 the deputy administrator authorized in section 523A.801 to the
 25 22 extent the commissioner delegates functions to the deputy
 25 23 administrator commissioner's designee authorized in section
 25 24 523A.801.
 25 25    Sec. 35.  Section 523I.102, subsection 17, unnumbered
 25 26 paragraph 1, Code 2007, is amended to read as follows:
 25 27    "Income" means the return in money or property derived from
 25 28 the use of trust principal after deduction of investment
 25 29 losses, taxes, and expenses incurred in the sale of trust
 25 30 assets, any cost of the operation of the trust, examination
 25 31 expenses or fees, and any annual audit fees expenses.
 25 32 "Income" includes but is not limited to:
 25 33    Sec. 36.  Section 523I.201, subsection 1, Code 2007, is
 25 34 amended to read as follows:
 25 35    1.  This chapter shall be administered by the commissioner.
 26  1 The deputy administrator appointed pursuant to section 502.601
 26  2 shall be the principal operations officer responsible to the
 26  3 commissioner for the routine administration of this chapter
 26  4 and management of the administrative staff.  In the absence of
 26  5 the commissioner, whether because of vacancy in the office due
 26  6 to absence, physical disability, or other cause, the deputy
 26  7 administrator shall, for the time being, have and exercise the
 26  8 authority conferred upon the commissioner.  The commissioner
 26  9 may by order from time to time delegate to the deputy
 26 10 administrator any or all of the functions assigned to the
 26 11 commissioner in this chapter.  The deputy administrator shall
 26 12 employ officers, attorneys, accountants, and other employees
 26 13 as needed for administering this chapter.
 26 14    Sec. 37.  Section 523I.201, Code 2007, is amended by adding
 26 15 the following new subsection:
 26 16    NEW SUBSECTION.  3.  The commissioner shall submit an
 26 17 annual report to the legislative oversight committee by
 26 18 October 1 of each year reporting on the administration of this
 26 19 chapter.  The report shall set forth any recommendations for
 26 20 changes in the law that the commissioner deems necessary or
 26 21 desirable to prevent abuses or evasions of this chapter or
 26 22 rules implementing this chapter or to rectify undesirable
 26 23 conditions in connection with the administration of this
 26 24 chapter or rules implementing this chapter.
 26 25    Sec. 38.  Section 523I.212, subsection 1, Code 2007, is
 26 26 amended by adding the following new paragraph:
 26 27    NEW PARAGRAPH.  d.  A receivership has been established for
 26 28 a seller subject to chapter 523A who owns or operates a
 26 29 cemetery that is subject to this chapter.
 26 30    Sec. 39.  Section 523I.212, subsection 2, Code 2007, is
 26 31 amended to read as follows:
 26 32    2.  The commissioner or attorney general may apply to the
 26 33 district court in any county of the state for the
 26 34 establishment of a receivership.  Upon proof that any of the
 26 35 conditions described in this section have occurred, the court
 27  1 may grant a receivership.  The commissioner may request that
 27  2 the insurance division be named as a receiver or that the
 27  3 court appoint a third party as a receiver.  If the division is
 27  4 appointed as a receiver, the division shall not be subject to
 27  5 the requirements concerning an oath and surety bond contained
 27  6 in section 680.3.
 27  7    Sec. 40.  Section 523I.212, Code 2007, is amended by adding
 27  8 the following new subsections:
 27  9    NEW SUBSECTION.  3.  In addition to the powers granted to
 27 10 receivers under chapter 680, a receiver appointed under this
 27 11 section shall be granted all powers necessary to locate and to
 27 12 temporarily preserve and protect perpetual care trust funds,
 27 13 consumer and business assets, interment records, records of
 27 14 consumer purchases of interment rights, and records of
 27 15 consumer purchases of funeral services and funeral or cemetery
 27 16 merchandise as defined in chapter 523A.  The receiver shall
 27 17 also be granted such powers as are necessary in the course of
 27 18 the receivership to temporarily preserve and protect a
 27 19 cemetery or burial site and to temporarily restore or sustain
 27 20 cemetery operations, including interments, as operating funds
 27 21 or trust funds become available.
 27 22    NEW SUBSECTION.  4.  The commissioner may petition the
 27 23 court to terminate a receivership at any time and to enter
 27 24 such orders as are necessary to transfer the duty to preserve
 27 25 and protect the physical integrity of the cemetery or burial
 27 26 site, the interment records, and other records documenting
 27 27 consumer purchases of interment rights to the applicable
 27 28 governmental subdivision, as provided in section 523I.316,
 27 29 subsection 3.  The court shall grant the petition if following
 27 30 the first one hundred twenty days of the receivership such
 27 31 duty to preserve and protect cannot be reasonably assumed by a
 27 32 private entity, association, or by other means.
 27 33    Sec. 41.  Section 523I.213, Code 2007, is amended to read
 27 34 as follows:
 27 35    523I.213  INSURANCE DIVISION'S ENFORCEMENT FUND.
 28  1    A special revenue fund in the state treasury, to be known
 28  2 as the insurance division's enforcement fund, is created under
 28  3 the authority of the commissioner.  The commissioner shall
 28  4 allocate annually from the audit examination fees paid
 28  5 pursuant to section 523I.808, an amount not exceeding fifty
 28  6 thousand dollars, for deposit to the insurance division's
 28  7 enforcement fund.  The moneys in the enforcement fund shall be
 28  8 retained in the fund.  The moneys are appropriated and,
 28  9 subject to authorization by the commissioner, shall be used to
 28 10 pay auditors, audit examiners, examination expenses,
 28 11 investigative expenses, the expenses of consumer education,
 28 12 compliance, and education programs for filers and other
 28 13 regulated persons, and educational or compliance program
 28 14 materials, the expenses of a toll=free telephone line for
 28 15 consumer complaints, and the expenses of receiverships of
 28 16 perpetual care cemeteries established under section 523I.212.
 28 17    Sec. 42.  NEW SECTION.  523I.213A  EXAMINATIONS ==
 28 18 AUTHORITY AND SCOPE.
 28 19    1.  The commissioner or the commissioner's designee may
 28 20 conduct an examination under this chapter of any cemetery as
 28 21 often as the commissioner deems appropriate.  If a cemetery
 28 22 has a trust arrangement, the commissioner shall conduct an
 28 23 examination not less than once every three years.
 28 24    2.  A cemetery shall reimburse the division for the expense
 28 25 of conducting the examination unless the commissioner waives
 28 26 this requirement or the seller has previously provided to the
 28 27 commissioner a certified copy of an audit conducted by an
 28 28 independent certified public accountant verifying compliance
 28 29 with this chapter for each year in question and the
 28 30 examination conducted by the commissioner does not disclose
 28 31 that the seller has not complied with this chapter for the
 28 32 years in question.  The expense of an examination involving
 28 33 multiple cemeteries or other persons shall be prorated among
 28 34 them upon any reasonable basis as determined by the
 28 35 commissioner.
 29  1    3.  For purposes of completing an examination pursuant to
 29  2 this chapter, the commissioner may examine or investigate any
 29  3 person, or the business of any person, if the examination or
 29  4 investigation is, in the sole discretion of the commissioner,
 29  5 necessary or material to the examination of the cemetery.
 29  6    4.  Upon determining that an examination should be
 29  7 conducted, the commissioner or the commissioner's designee may
 29  8 appoint one or more examiners to perform the examination and
 29  9 instruct them as to the scope of the examination.
 29 10    5.  A cemetery or person from whom information is sought,
 29 11 and its officers, directors, and agents shall provide to the
 29 12 examiners appointed under subsection 4, timely, convenient,
 29 13 and free access at their offices, at all reasonable hours, to
 29 14 all books, records, accounts, papers, documents, and all
 29 15 electronic or other recordings related to the property,
 29 16 assets, business, and affairs of the cemetery being examined
 29 17 and shall facilitate the examination as much as possible.  If
 29 18 a cemetery, by its officers, directors, employees, or agents,
 29 19 refuses to submit to an examination as provided in this
 29 20 chapter, the commissioner shall immediately report the refusal
 29 21 to the attorney general, who shall then immediately apply to
 29 22 district court for the appointment of a receiver to administer
 29 23 the final affairs of the cemetery.
 29 24    6.  This section shall not be construed to limit the
 29 25 commissioner's authority to terminate or suspend any
 29 26 examination in order to pursue other legal or regulatory
 29 27 actions pursuant to this chapter.  Findings of fact and
 29 28 conclusions made pursuant to an examination are deemed to be
 29 29 prima facie evidence in any legal or regulatory action.
 29 30    Sec. 43.  NEW SECTION.  523I.213B  VENUE.
 29 31    All actions relating to the enforcement of this chapter
 29 32 shall be governed by the laws of the state of Iowa.  Venue of
 29 33 any action relating to enforcement of this chapter may be in a
 29 34 court of competent jurisdiction in Polk county, at the
 29 35 discretion of the commissioner.
 30  1    Sec. 44.  Section 523I.304, Code 2007, is amended by adding
 30  2 the following new subsection:
 30  3    NEW SUBSECTION.  7.  A cemetery owned and controlled by a
 30  4 governmental subdivision shall adopt and enforce a rule
 30  5 allowing any veteran who is a landowner or who lives within
 30  6 the governmental subdivision to purchase an interment space
 30  7 and to be interred within the cemetery.  For the purposes of
 30  8 this section, "veteran" means the same as defined in section
 30  9 35.1 or a resident of this state who served in the armed
 30 10 forces of the United States, completed a minimum aggregate of
 30 11 ninety days of active federal service, and was discharged
 30 12 under honorable conditions.
 30 13    Sec. 45.  Section 523I.305, subsection 3, Code 2007, is
 30 14 amended to read as follows:
 30 15    3.  SPECIFICATIONS.  Upon request, a cemetery shall provide
 30 16 reasonable written specifications and instructions governing
 30 17 installation of memorials, which shall apply to all
 30 18 installations whether performed by the cemetery or another
 30 19 person.  The written specifications shall include provisions
 30 20 governing hours of installation or any other relevant
 30 21 administrative requirements of the cemetery.  A copy of these
 30 22 specifications and instructions shall be provided upon
 30 23 request, without charge, to the owner of the interment space,
 30 24 next of kin, or a personal representative or agent of the
 30 25 owner, including the person installing the memorial.  The
 30 26 person installing the memorial shall comply with the
 30 27 cemetery's written installation specifications and
 30 28 instructions.  In order to verify that a memorial is installed
 30 29 on the proper interment space in accordance with cemetery
 30 30 rules and regulations, the cemetery shall mark the place on
 30 31 the interment space where the memorial is to be installed and
 30 32 shall inspect the installation when completed.  This
 30 33 subsection shall not be construed to require that a cemetery
 30 34 lay out or engineer an interment space for the installation of
 30 35 a memorial.  A cemetery shall not adopt or enforce any rule
 31  1 prohibiting the installation of a memorial by a memorial
 31  2 dealer or independent third party, unless the rule is adopted
 31  3 applicable to all memorials from whatever source obtained and
 31  4 enforced uniformly for all memorials installed in the
 31  5 cemetery.
 31  6    Sec. 46.  NEW SECTION.  523I.314A  STANDARDS FOR INTERMENT
 31  7 SPACES.
 31  8    1.  A standard interment space for full body interment
 31  9 developed on or after July 1, 2007, shall measure at least
 31 10 forty inches in width and ninety=six inches in length.
 31 11    2.  Prior to the sale of interment rights in an undeveloped
 31 12 area of a cemetery, internal reference markers shall be
 31 13 installed and maintained no more than one hundred feet apart.
 31 14 The internal reference markers shall be established with
 31 15 reference to survey markers that are no more than two hundred
 31 16 feet apart, have been set by a surveyor and mapper, and have
 31 17 been documented in a land survey.  Both the map and the land
 31 18 survey shall be maintained by the cemetery and made available
 31 19 upon request to the commissioner and to members of the public.
 31 20    Sec. 47.  Section 523I.808, Code 2007, is amended to read
 31 21 as follows:
 31 22    523I.808  AUDIT EXAMINATION FEE.
 31 23    An audit examination fee shall be submitted with the
 31 24 cemetery's annual report in an amount equal to five dollars
 31 25 for each certificate of interment rights issued during the
 31 26 fiscal year covered by the report.  The cemetery may charge
 31 27 the audit examination fee directly to the purchaser of the
 31 28 interment rights.
 31 29    Sec. 48.  Section 523I.810, subsection 9, Code 2007, is
 31 30 amended to read as follows:
 31 31    9.  A cemetery may, by resolution adopted by a vote of at
 31 32 least two=thirds of the members of its board at any authorized
 31 33 meeting of the board, authorize the withdrawal and use of not
 31 34 more than twenty percent of the principal of the care fund to
 31 35 acquire additional land for cemetery purposes, to repair a
 32  1 mausoleum or other building or structure intended for cemetery
 32  2 purposes, or to build, improve, or repair roads and walkways
 32  3 in the cemetery, or to purchase recordkeeping software used to
 32  4 maintain ownership records or interment records.  The
 32  5 resolution shall establish a reasonable repayment schedule,
 32  6 not to exceed five years, and provide for interest in an
 32  7 amount comparable to the care fund's current rate of return on
 32  8 its investments.  However, the care fund shall not be
 32  9 diminished below an amount equal to the greater of twenty=five
 32 10 thousand dollars or five thousand dollars per acre of land in
 32 11 the cemetery.  The resolution, and either a bond or proof of
 32 12 insurance to guarantee replenishment of the care fund, shall
 32 13 be filed with the commissioner thirty days prior to the
 32 14 withdrawal of funds.
 32 15    Sec. 49.  Section 523I.813, subsection 1, Code 2007, is
 32 16 amended by striking the subsection and inserting in lieu
 32 17 thereof the following:
 32 18    1.  A perpetual care cemetery shall file an annual report
 32 19 at the end of each fiscal year of the cemetery.
 32 20    Sec. 50.  Section 523I.813, Code 2007, is amended by adding
 32 21 the following new subsection:
 32 22    NEW SUBSECTION.  3.  The commissioner shall levy an
 32 23 administrative penalty in the amount of five hundred dollars
 32 24 against a cemetery that fails to file the annual report when
 32 25 due, payable to the state for deposit in the general fund of
 32 26 the state.
 32 27                           DIVISION II
 32 28                     COORDINATING AMENDMENTS
 32 29    Sec. 51.  Section 523A.102, subsection 9, paragraphs b and
 32 30 c, Code 2007, are amended to read as follows:
 32 31    b.  If authorized by a purchaser under a purchase
 32 32 agreement, cemetery merchandise has been permanently
 32 33 identified with the name of the purchaser or the beneficiary
 32 34 and delivered to a bonded warehouse or storage facility
 32 35 approved by the commissioner and both title to the merchandise
 33  1 and a warehouse receipt have been delivered to the purchaser
 33  2 or beneficiary and a copy of the warehouse receipt has been
 33  3 delivered to the establishment seller for retention in its
 33  4 files.
 33  5    c.  If authorized by a purchaser under a purchase
 33  6 agreement, a polystyrene or polypropylene outer burial
 33  7 container has been permanently identified with the name of the
 33  8 purchaser or the beneficiary and delivered to a bonded
 33  9 warehouse or storage facility approved by the commissioner and
 33 10 both title to the merchandise and a warehouse receipt have
 33 11 been delivered to the purchaser or beneficiary and a copy of
 33 12 the warehouse receipt has been delivered to the establishment
 33 13 seller for retention in its files.
 33 14    Sec. 52.  Section 523A.102, subsection 21, Code 2007, is
 33 15 amended to read as follows:
 33 16    21.  "Parent company" means a corporation that has a
 33 17 controlling interest in an establishment a seller.
 33 18    Sec. 53.  Section 523A.205, subsection 1, Code 2007, is
 33 19 amended to read as follows:
 33 20    1.  A financial institution shall file with the
 33 21 commissioner not later than March 1 of each year an annual
 33 22 report on a form prescribed by the commissioner showing all
 33 23 funds deposited by an establishment a seller under a trust
 33 24 agreement during the previous year.  Each report shall contain
 33 25 all information requested.
 33 26    Sec. 54.  Section 523A.401, subsection 5, paragraphs a and
 33 27 b, Code 2007, are amended to read as follows:
 33 28    a.  Except as necessary and appropriate to satisfy the
 33 29 requirements regarding burial trust funds under Title XIX of
 33 30 the federal Social Security Act, the policy shall not be owned
 33 31 by the establishment seller, the policy shall not be
 33 32 irrevocably assigned to the establishment seller, and the
 33 33 assignment of proceeds from the insurance policy to the
 33 34 establishment seller shall be limited to the establishment's
 33 35 seller's interests as they appear in the purchase agreement,
 34  1 and conditioned on the establishment's seller's delivery of
 34  2 cemetery merchandise, funeral merchandise, and funeral
 34  3 services pursuant to a purchase agreement.
 34  4    b.  The policy shall provide that any assignment of
 34  5 benefits is contingent upon the establishment's seller's
 34  6 delivery of cemetery merchandise, funeral merchandise, and
 34  7 funeral services pursuant to a purchase agreement.
 34  8    Sec. 55.  Section 523A.401, subsection 6, unnumbered
 34  9 paragraph 1, Code 2007, is amended to read as follows:
 34 10    With the written consent of the purchaser, an existing
 34 11 prepaid purchase agreement with trust=funded benefits may be
 34 12 converted to a prepaid purchase agreement with
 34 13 insurance=funded benefits provided the establishment seller
 34 14 and the insurance benefits comply with the following
 34 15 provisions:
 34 16    Sec. 56.  Section 523A.401, subsection 6, paragraph d, Code
 34 17 2007, is amended to read as follows:
 34 18    d.  The establishment seller shall maintain a copy of any
 34 19 prepaid trust=funded purchase agreement that was converted to
 34 20 a prepaid insurance=funded purchase agreement and retain the
 34 21 payment history records for each converted purchase agreement
 34 22 prior to conversion until the cemetery merchandise, funeral
 34 23 merchandise, and funeral services have been delivered.
 34 24    Sec. 57.  Section 523A.401, subsection 8, Code 2007, is
 34 25 amended to read as follows:
 34 26    8.  An insurance company issuing policies funding purchase
 34 27 agreements subject to this chapter shall file an annual report
 34 28 with the commissioner on a form prescribed by the
 34 29 commissioner.  The report shall list the applicable insurance
 34 30 policies outstanding for each establishment seller.  Computer
 34 31 printouts may be submitted so long as each legibly provides
 34 32 the same information required in the prescribed form.
 34 33    Sec. 58.  Section 523A.402, subsection 5, paragraphs a and
 34 34 b, Code 2007, are amended to read as follows:
 34 35    a.  Except as necessary and appropriate to satisfy the
 35  1 requirements regarding burial trust funds under Title XIX of
 35  2 the federal Social Security Act, the annuity shall not be
 35  3 owned by the establishment seller or irrevocably assigned to
 35  4 the establishment seller and any designation of the
 35  5 establishment seller as a beneficiary shall not be made
 35  6 irrevocable.
 35  7    b.  The annuity shall provide that any assignment of
 35  8 benefits is contingent upon the establishment's seller's
 35  9 delivery of cemetery merchandise, funeral merchandise, and
 35 10 funeral services pursuant to a purchase agreement.
 35 11    Sec. 59.  Section 523A.402, subsection 6, unnumbered
 35 12 paragraph 1, Code 2007, is amended to read as follows:
 35 13    With the written consent of the purchaser, an existing
 35 14 prepaid purchase agreement with trust=funded benefits may be
 35 15 converted to a prepaid purchase agreement with annuity=funded
 35 16 benefits provided the establishment seller and the annuity
 35 17 benefits comply with the following provisions:
 35 18    Sec. 60.  Section 523A.402, subsection 6, paragraph d, Code
 35 19 2007, is amended to read as follows:
 35 20    d.  The establishment seller shall maintain a copy of any
 35 21 prepaid trust=funded purchase agreement that was converted to
 35 22 a prepaid annuity=funded purchase agreement and retain the
 35 23 payment history records for each converted purchase agreement
 35 24 prior to conversion until the cemetery merchandise, funeral
 35 25 merchandise, and funeral services have been delivered.
 35 26    Sec. 61. Section 523A.402, subsection 8, Code 2007, is
 35 27 amended to read as follows:
 35 28    8.  An insurance company issuing annuities funding purchase
 35 29 agreements subject to this chapter shall file an annual report
 35 30 with the commissioner on a form prescribed by the
 35 31 commissioner.  The report shall list the applicable annuities
 35 32 outstanding for each establishment seller.  Computer printouts
 35 33 may be submitted so long as each legibly provides the same
 35 34 information required in the prescribed form.
 35 35    Sec. 62.  Section 523A.404, subsection 4, Code 2007, is
 36  1 amended to read as follows:
 36  2    4.  An establishment A seller is prohibited from requiring
 36  3 delivery as a condition of the sale.
 36  4    Sec. 63.  Section 523A.405, subsection 9, unnumbered
 36  5 paragraph 1, Code 2007, is amended to read as follows:
 36  6    With the consent of the purchaser, an existing prepaid
 36  7 purchase agreement with trust=funded benefits may be converted
 36  8 to a prepaid purchase agreement funded by a surety bond
 36  9 provided the establishment seller and the surety bond comply
 36 10 with the following provisions:
 36 11    Sec. 64.  Section 523A.405, subsection 9, paragraph c, Code
 36 12 2007, is amended to read as follows:
 36 13    c.  The establishment seller shall maintain a copy of any
 36 14 prepaid trust=funded agreement that was converted to a prepaid
 36 15 purchase agreement funded by a surety bond and retain the
 36 16 payment history records for each converted purchase agreement
 36 17 prior to conversion until the cemetery merchandise, funeral
 36 18 merchandise, and funeral services have been delivered.
 36 19    Sec. 65.  Section 523A.601, subsection 2, paragraph e, Code
 36 20 2007, is amended to read as follows:
 36 21    e.  State clearly that the purchaser is entitled to
 36 22 transfer the trust funding, insurance funding, or other trust
 36 23 assets or select another establishment seller to receive the
 36 24 trust funding, insurance funding, or any other trust assets.
 36 25    Sec. 66.  Section 523A.601, subsection 5, paragraph h, Code
 36 26 2007, is amended to read as follows:
 36 27    h.  If the funding is being transferred from another
 36 28 establishment seller, any material facts related to the
 36 29 revocation of the prior purchase agreement and the transfer of
 36 30 the existing trust funds.
 36 31    Sec. 67.  Section 523A.602, subsection 2, paragraph b,
 36 32 subparagraphs (1) and (2), Code 2007, are amended to read as
 36 33 follows:
 36 34    (1)  If a purchase agreement is canceled, a purchaser
 36 35 requests a transfer of the trust assets upon cancellation of a
 37  1 purchase agreement, or another establishment seller provides
 37  2 merchandise or services designated in a purchase agreement,
 37  3 the seller shall refund or transfer within thirty days of
 37  4 receiving a written demand no less than the purchase price of
 37  5 the applicable cemetery merchandise, funeral merchandise, and
 37  6 funeral services adjusted for inflation, using the consumer
 37  7 price index amounts announced by the commissioner annually,
 37  8 less any actual expenses incurred by the seller pursuant to
 37  9 the purchase agreement as set forth in the purchase agreement
 37 10 under section 523A.601, subsection 1, paragraph "f".  The
 37 11 amount of the actual expenses deducted by the seller shall not
 37 12 exceed ten percent of the purchase price of the applicable
 37 13 cemetery merchandise, funeral merchandise, and funeral
 37 14 services.  The seller may also deduct the value of the
 37 15 cemetery merchandise, funeral merchandise, and funeral
 37 16 services already received by, delivered to, or warehoused for
 37 17 the purchaser.
 37 18    (2)  If a purchase agreement is canceled before the
 37 19 purchase price is paid in full, a purchaser requests a
 37 20 transfer of the trust assets upon cancellation of a purchase
 37 21 agreement before the purchase price is paid in full, or
 37 22 another establishment seller provides cemetery merchandise,
 37 23 funeral merchandise, funeral services, or a combination
 37 24 thereof, designated in a purchase agreement before the
 37 25 purchase price is paid in full, the seller shall refund or
 37 26 transfer within thirty days of receiving a written demand no
 37 27 less than the amount paid by the purchaser, less any actual
 37 28 expenses incurred by the seller pursuant to the purchase
 37 29 agreement as set forth in the purchase agreement under section
 37 30 523A.601, subsection 1, paragraph "f".  The amount of the
 37 31 actual expenses deducted by the seller shall not exceed ten
 37 32 percent of the total original purchase price of the applicable
 37 33 cemetery merchandise, funeral merchandise, funeral services,
 37 34 or a combination thereof.  The seller may also deduct the
 37 35 value of the cemetery merchandise, funeral merchandise, and
 38  1 funeral services already received by, delivered to, or
 38  2 warehoused for the purchaser.
 38  3    Sec. 68.  Section 523A.602, subsection 2, paragraph b,
 38  4 subparagraph (3), unnumbered paragraph 1, Code 2007, is
 38  5 amended to read as follows:
 38  6    For the purposes of this paragraph "b", "actual expenses"
 38  7 means all reasonable business expenses of an establishment a
 38  8 seller that are associated with the sale of cemetery
 38  9 merchandise, funeral merchandise, funeral services, or a
 38 10 combination thereof.  "Actual expenses" includes but is not
 38 11 limited to the following:
 38 12    Sec. 69.  Section 523A.602, subsection 2, paragraph b,
 38 13 subparagraph (3), subparagraph subdivisions (d) and (g), Code
 38 14 2007, are amended to read as follows:
 38 15    (d)  Licensing fees of the establishment seller.
 38 16    (g)  Expenses related to employees of the establishment
 38 17 seller such as licensing fees, continuing education, and
 38 18 salaries and commissions.
 38 19    Sec. 70.  Section 523A.802, subsection 1, Code 2007, is
 38 20 amended to read as follows:
 38 21    1.  This chapter applies to any advertisement, sale,
 38 22 promotion, or offer made by a person to furnish, upon the
 38 23 future death of a person named or implied in a purchase
 38 24 agreement, cemetery merchandise, funeral merchandise, funeral
 38 25 services, or a combination thereof.  Burial accounts and
 38 26 insurance policies are included if the account records or
 38 27 related documents identify the establishment seller that will
 38 28 provide the cemetery merchandise, funeral merchandise, funeral
 38 29 services, or a combination thereof.
 38 30    Sec. 71.  Section 523A.803, subsection 1, paragraph d, Code
 38 31 2007, is amended to read as follows:
 38 32    d.  Investigate the establishment seller and examine the
 38 33 books, accounts, papers, correspondence, memoranda, purchase
 38 34 agreements, files, or other documents or records used by every
 38 35 applicant and permit holder licensee under this chapter.
 39  1    Sec. 72.  Section 523A.804, unnumbered paragraph 1, Code
 39  2 2007, is amended to read as follows:
 39  3    The commissioner may order an establishment a seller to
 39  4 participate in mediation in any dispute regarding a purchase
 39  5 agreement.  Mediation performed under this section shall be
 39  6 conducted by a mediator appointed by the commissioner and
 39  7 shall comply with the provisions of chapter 679C.
 39  8    Sec. 73.  Section 523A.806, subsection 2, Code 2007, is
 39  9 amended to read as follows:
 39 10    2.  Revocation or suspension of any permit license issued
 39 11 under this chapter.
 39 12    Sec. 74.  Section 523A.901, subsection 1, Code 2007, is
 39 13 amended to read as follows:
 39 14    1.  GROUNDS FOR LIQUIDATION.  The commissioner may petition
 39 15 the district court for an order directing the commissioner to
 39 16 liquidate an establishment the business of a seller on either
 39 17 of the following grounds:
 39 18    a.  The establishment seller did not deposit funds pursuant
 39 19 to section 523A.201 or withdrew funds in a manner inconsistent
 39 20 with this chapter and is insolvent.
 39 21    b.  The establishment seller did not deposit funds pursuant
 39 22 to section 523A.201 or withdrew funds in a manner inconsistent
 39 23 with this chapter and the condition of the establishment
 39 24 seller is such that further transaction of business would be
 39 25 hazardous, financially or otherwise, to purchasers or the
 39 26 public.
 39 27    Sec. 75.  Section 523A.901, subsection 2, paragraphs a, b,
 39 28 c, and e, Code 2007, are amended to read as follows:
 39 29    a.  An order to liquidate the business of an establishment
 39 30 a seller shall appoint the commissioner as liquidator and
 39 31 shall direct the liquidator to immediately take possession of
 39 32 the assets of the establishment seller and to administer them
 39 33 under the general supervision of the court.  The liquidator is
 39 34 vested with the title to the property, contracts, and rights
 39 35 of action and the books and records of the establishment
 40  1 seller ordered liquidated, wherever located, as of the entry
 40  2 of the final order of liquidation.  The filing or recording of
 40  3 the order with the clerk of court and the recorder of deeds of
 40  4 the county in which its principal office or place of business
 40  5 is located, or in the case of real estate, with the recorder
 40  6 of deeds of the county where the property is located, is
 40  7 notice as a deed, bill of sale, or other evidence of title
 40  8 duly filed or recorded with the recorder of deeds.
 40  9    b.  Upon issuance of an order, the rights and liabilities
 40 10 of an establishment a seller and of the establishment's
 40 11 seller's creditors, purchasers, owners, and other persons
 40 12 interested in the establishment's seller's estate shall become
 40 13 fixed as of the date of the entry of the order of liquidation,
 40 14 except as provided in subsection 14.
 40 15    c.  At the time of petitioning for an order of liquidation,
 40 16 or at any time after the time of petitioning, the
 40 17 commissioner, after making appropriate findings of an
 40 18 establishment's a seller's insolvency, may petition the court
 40 19 for a declaration of insolvency.  After providing notice and
 40 20 hearing as it deems proper, the court may make the
 40 21 declaration.
 40 22    e.  Within five days after the initiation of an appeal of
 40 23 an order of liquidation, which order has not been stayed, the
 40 24 commissioner shall present for the court's approval a plan for
 40 25 the continued performance of the establishment's seller's
 40 26 obligations during the pendency of an appeal.  The plan shall
 40 27 provide for the continued performance of purchase agreements
 40 28 in the normal course of events, notwithstanding the grounds
 40 29 alleged in support of the order of liquidation including the
 40 30 ground of insolvency.  If the defendant establishment's
 40 31 seller's financial condition, in the judgment of the
 40 32 commissioner, will not support the full performance of all
 40 33 obligations during the appeal pendency period, the plan may
 40 34 prefer the claims of certain purchasers and claimants over
 40 35 creditors and interested parties as well as other purchasers
 41  1 and claimants, as the commissioner finds to be fair and
 41  2 equitable considering the relative circumstances of such
 41  3 purchasers and claimants.  The court shall examine the plan
 41  4 submitted by the commissioner and if it finds the plan to be
 41  5 in the best interests of the parties, the court shall approve
 41  6 the plan.  An action shall not lie against the commissioner or
 41  7 any of the commissioner's deputies, agents, clerks,
 41  8 assistants, or attorneys by any party based on preference in
 41  9 an appeal pendency plan approved by the court.
 41 10    Sec. 76.  Section 523A.901, subsection 3, paragraph a,
 41 11 subparagraphs (4), (6), (7), (8), (9), (10), (11), (12), (13),
 41 12 (14), (17), and (18), Code 2007, are amended to read as
 41 13 follows:
 41 14    (4)  Pay reasonable compensation to persons appointed and
 41 15 defray from the funds or assets of the establishment seller
 41 16 all expenses of taking possession of, conserving, conducting,
 41 17 liquidating, disposing of, or otherwise dealing with the
 41 18 business and property of the establishment seller.  If the
 41 19 property of the establishment seller does not contain
 41 20 sufficient cash or liquid assets to defray the costs incurred,
 41 21 the commissioner may advance the costs so incurred out of the
 41 22 insurance division regulatory fund.  Amounts so advanced for
 41 23 expenses of administration shall be repaid to the insurance
 41 24 division regulatory fund for the use of the division out of
 41 25 the first available moneys of the establishment seller.
 41 26    (6)  Collect debts and moneys due and claims belonging to
 41 27 the establishment seller, wherever located.  Pursuant to this
 41 28 subparagraph, the liquidator may do any of the following:
 41 29    (a)  Institute timely action in other jurisdictions to
 41 30 forestall garnishment and attachment proceedings against
 41 31 debts.
 41 32    (b)  Perform acts as are necessary or expedient to collect,
 41 33 conserve, or protect its assets or property, including the
 41 34 power to sell, compound, compromise, or assign debts for
 41 35 purposes of collection upon terms and conditions as the
 42  1 liquidator deems best.
 42  2    (c)  Pursue any creditor's remedies available to enforce
 42  3 claims.
 42  4    (7)  Conduct public and private sales of the property of
 42  5 the establishment seller.
 42  6    (8)  Use assets of the establishment seller under a
 42  7 liquidation order to transfer obligations of purchase
 42  8 agreements to a solvent establishment seller, if the transfer
 42  9 can be accomplished without prejudice to the applicable
 42 10 priorities under subsection 18.
 42 11    (9)  Acquire, hypothecate, encumber, lease, improve, sell,
 42 12 transfer, abandon, or otherwise dispose of or deal with
 42 13 property of the establishment seller at its market value or
 42 14 upon terms and conditions as are fair and reasonable.  The
 42 15 liquidator shall also have power to execute, acknowledge, and
 42 16 deliver deeds, assignments, releases, and other instruments
 42 17 necessary to effectuate a sale of property or other
 42 18 transaction in connection with the liquidation.
 42 19    (10)  Borrow money on the security of the establishment's
 42 20 seller's assets or without security and execute and deliver
 42 21 documents necessary to that transaction for the purpose of
 42 22 facilitating the liquidation.  Money borrowed pursuant to this
 42 23 subparagraph shall be repaid as an administrative expense and
 42 24 shall have priority over any other class 1 claims under the
 42 25 priority of distribution established in subsection 18.
 42 26    (11)  Enter into contracts as necessary to carry out the
 42 27 order to liquidate and affirm or disavow contracts to which
 42 28 the establishment seller is a party.
 42 29    (12)  Continue to prosecute and to institute in the name of
 42 30 the establishment seller or in the liquidator's own name any
 42 31 and all suits and other legal proceedings, in this state or
 42 32 elsewhere, and to abandon the prosecution of claims the
 42 33 liquidator deems unprofitable to pursue further.
 42 34    (13)  Prosecute an action on behalf of the creditors,
 42 35 purchasers, or owners against an officer of the establishment
 43  1 seller or any other person.
 43  2    (14)  Remove records and property of the establishment
 43  3 seller to the offices of the commissioner or to other places
 43  4 as may be convenient for the purposes of efficient and orderly
 43  5 execution of the liquidation.
 43  6    (17)  File necessary documents for recording in the office
 43  7 of the recorder of deeds or record office in this state or
 43  8 elsewhere where property of the establishment seller is
 43  9 located.
 43 10    (18)  Assert defenses available to the establishment seller
 43 11 against third persons including statutes of limitations,
 43 12 statutes of fraud, and the defense of usury.  A waiver of a
 43 13 defense by the establishment seller after a petition in
 43 14 liquidation has been filed shall not bind the liquidator.
 43 15    Sec. 77.  Section 523A.901, subsection 4, paragraph a,
 43 16 subparagraphs (1) and (2), Code 2007, are amended to read as
 43 17 follows:
 43 18    (1)  Mailing notice, by first=class mail, to all persons
 43 19 known or reasonably expected to have claims against the
 43 20 establishment seller, including purchasers, at their last
 43 21 known address as indicated by the records of the establishment
 43 22 seller.
 43 23    (2)  Publication of notice in a newspaper of general
 43 24 circulation in the county in which the establishment seller
 43 25 has its principal place of business and in other locations as
 43 26 the liquidator deems appropriate.
 43 27    Sec. 78.  Section 523A.901, subsection 4, paragraph c, Code
 43 28 2007, is amended to read as follows:
 43 29    c.  If notice is given pursuant to this subsection, the
 43 30 distribution of assets of the establishment seller under this
 43 31 chapter shall be conclusive with respect to claimants, whether
 43 32 or not a claimant actually received notice.
 43 33    Sec. 79.  Section 523A.901, subsection 5, Code 2007, is
 43 34 amended to read as follows:
 43 35    5.  ACTIONS BY AND AGAINST LIQUIDATOR.
 44  1    a.  After issuance of an order appointing a liquidator of
 44  2 an establishment the business of a seller, an action at law or
 44  3 equity shall not be brought against the establishment seller
 44  4 within this state or elsewhere, and existing actions shall not
 44  5 be maintained or further presented after issuance of the
 44  6 order.  Whenever in the liquidator's judgment, protection of
 44  7 the estate of the establishment seller necessitates
 44  8 intervention in an action against the establishment seller
 44  9 that is pending outside this state, the liquidator may
 44 10 intervene in the action.  The liquidator may defend, at the
 44 11 expense of the estate of the establishment seller, an action
 44 12 in which the liquidator intervenes under this section.
 44 13    b.  Within two years or such additional time as applicable
 44 14 law may permit, the liquidator, after the issuance of an order
 44 15 for liquidation, may institute an action or proceeding on
 44 16 behalf of the estate of the establishment seller upon any
 44 17 cause of action against which the period of limitation fixed
 44 18 by applicable law has not expired at the time of the filing of
 44 19 the petition upon which the order is entered.  If a period of
 44 20 limitation is fixed by agreement for instituting a suit or
 44 21 proceeding upon a claim, or for filing a claim, proof of
 44 22 claim, proof of loss, demand, notice, or the like, or if in a
 44 23 proceeding, judicial or otherwise, a period of limitation is
 44 24 fixed in the proceeding or pursuant to applicable law for
 44 25 taking an action, filing a claim or pleading, or doing an act,
 44 26 and if the period has not expired at the date of the filing of
 44 27 the petition, the liquidator may, for the benefit of the
 44 28 estate, take any action or do any act, required of or
 44 29 permitted to the establishment seller, within a period of one
 44 30 hundred eighty days subsequent to the entry of an order for
 44 31 liquidation, or within a further period as is shown to the
 44 32 satisfaction of the court not to be unfairly prejudicial to
 44 33 the other party.
 44 34    c.  A statute of limitations or defense of laches shall not
 44 35 run with respect to an action against an establishment a
 45  1 seller between the filing of a petition for liquidation
 45  2 against the establishment business of a seller and the denial
 45  3 of the petition.  An action against the establishment seller
 45  4 that might have been commenced when the petition was filed may
 45  5 be commenced within sixty days after the petition is denied.
 45  6    Sec. 80.  Section 523A.901, subsection 6, paragraph a, Code
 45  7 2007, is amended to read as follows:
 45  8    a.  As soon as practicable after the liquidation order but
 45  9 not later than one hundred twenty days after such order, the
 45 10 liquidator shall prepare in duplicate a list of the
 45 11 establishment's seller's assets.  The list shall be amended or
 45 12 supplemented as the liquidator may determine.  One copy shall
 45 13 be filed in the office of the clerk of court, and one copy
 45 14 shall be retained for the liquidator's files.  Amendments and
 45 15 supplements shall be similarly filed.
 45 16    Sec. 81.  Section 523A.901, subsection 7, paragraph a, Code
 45 17 2007, is amended to read as follows:
 45 18    a.  A transfer made and an obligation incurred by an
 45 19 establishment a seller whose business is within one year prior
 45 20 to the filing of a successful petition for liquidation under
 45 21 this chapter is fraudulent as to then existing and future
 45 22 creditors if made or incurred without fair consideration, or
 45 23 with actual intent to hinder, delay, or defraud either
 45 24 existing or future creditors.  A fraudulent transfer made or
 45 25 an obligation incurred by an establishment a seller whose
 45 26 business is ordered to be liquidated under this chapter may be
 45 27 avoided by the liquidator, except as to a person who in good
 45 28 faith is a purchaser, lienor, or obligee for a present fair
 45 29 equivalent value.  A purchaser, lienor, or obligee, who in
 45 30 good faith has given a consideration less than present fair
 45 31 equivalent value for such transfer, lien, or obligation, may
 45 32 retain the property, lien, or obligation as security for
 45 33 repayment.  The court may, on due notice, order any such
 45 34 transfer, lien, or obligation to be preserved for the benefit
 45 35 of the estate, and in that event, the receiver shall succeed
 46  1 to and may enforce the rights of the purchaser, lienor, or
 46  2 obligee.
 46  3    Sec. 82.  Section 523A.901, subsection 7, paragraph b,
 46  4 subparagraph (2), Code 2007, is amended to read as follows:
 46  5    (2)  A transfer of real property is made when it becomes
 46  6 perfected so that a subsequent bona fide purchaser from the
 46  7 establishment seller could not obtain rights superior to the
 46  8 rights of the transferee.
 46  9    Sec. 83.  Section 523A.901, subsection 8, paragraphs a, b,
 46 10 and c, Code 2007, are amended to read as follows:
 46 11    a.  After a petition for liquidation has been filed, a
 46 12 transfer of real property of the establishment seller made to
 46 13 a person acting in good faith is valid against the liquidator
 46 14 if made for a present fair equivalent value.  If the transfer
 46 15 is not made for a present fair equivalent value, then the
 46 16 transfer is valid to the extent of the present consideration
 46 17 actually paid for which amount the transferee shall have a
 46 18 lien on the property transferred.  The commencement of a
 46 19 proceeding in liquidation is constructive notice upon the
 46 20 recording of a copy of the petition for or order of
 46 21 liquidation with the recorder of deeds in the county where any
 46 22 real property in question is located.  The exercise by a court
 46 23 of the United States or a state or jurisdiction to authorize a
 46 24 judicial sale of real property of the establishment seller
 46 25 within a county in a state shall not be impaired by the
 46 26 pendency of a proceeding unless the copy is recorded in the
 46 27 county prior to the consummation of the judicial sale.
 46 28    b.  After a petition for liquidation has been filed and
 46 29 before either the liquidator takes possession of the property
 46 30 of the establishment seller or an order of liquidation is
 46 31 granted:
 46 32    (1)  A transfer of the property, other than real property,
 46 33 of the establishment seller made to a person acting in good
 46 34 faith is valid against the liquidator if made for a present
 46 35 fair equivalent value.  If the transfer was not made for a
 47  1 present fair equivalent value, then the transfer is valid to
 47  2 the extent of the present consideration actually paid for
 47  3 which amount the transferee shall have a lien on the property
 47  4 transferred.
 47  5    (2)  If acting in good faith, a person indebted to the
 47  6 establishment seller or holding property of the establishment
 47  7 seller may pay the debt or deliver the property, or any part
 47  8 of the property, to the establishment seller or upon the
 47  9 establishment's seller's order as if the petition were not
 47 10 pending.
 47 11    (3)  A person having actual knowledge of the pending
 47 12 liquidation is not acting in good faith.
 47 13    (4)  A person asserting the validity of a transfer under
 47 14 this subsection has the burden of proof.  Except as provided
 47 15 in this subsection, a transfer by or on behalf of the
 47 16 establishment seller after the date of the petition for
 47 17 liquidation by any person other than the liquidator is not
 47 18 valid against the liquidator.
 47 19    c.  A person receiving any property from the establishment
 47 20 seller or any benefit of the property of the establishment
 47 21 seller which is a fraudulent transfer under paragraph "a" is
 47 22 personally liable for the property or benefit and shall
 47 23 account to the liquidator.
 47 24    Sec. 84.  Section 523A.901, subsection 9, paragraph a,
 47 25 subparagraphs (1) and (2), Code 2007, are amended to read as
 47 26 follows:
 47 27    (1)  A preference is a transfer of the property of an
 47 28 establishment a seller to or for the benefit of a creditor for
 47 29 an antecedent debt made or suffered by the establishment
 47 30 seller within one year before the filing of a successful
 47 31 petition for liquidation under this chapter, the effect of
 47 32 which transfer may be to enable the creditor to obtain a
 47 33 greater percentage of this debt than another creditor of the
 47 34 same class would receive.  If a liquidation order is entered
 47 35 while the establishment seller is already subject to a
 48  1 receivership, then the transfers are preferences if made or
 48  2 suffered within one year before the filing of the successful
 48  3 petition for the receivership, or within two years before the
 48  4 filing of the successful petition for liquidation, whichever
 48  5 time is shorter.
 48  6    (2)  A preference may be avoided by the liquidator if any
 48  7 of the following exist:
 48  8    (a)  The establishment seller was insolvent at the time of
 48  9 the transfer.
 48 10    (b)  The transfer was made within four months before the
 48 11 filing of the petition.
 48 12    (c)  At the time the transfer was made, the creditor
 48 13 receiving it or to be benefited by the transfer or the
 48 14 creditor's agent acting with reference to the transfer had
 48 15 reasonable cause to believe that the establishment seller was
 48 16 insolvent or was about to become insolvent.
 48 17    (d)  The creditor receiving the transfer was an officer, or
 48 18 an employee, attorney, or other person who was in fact in a
 48 19 position of comparable influence in the establishment seller
 48 20 to an officer whether or not the person held the position of
 48 21 an officer, owner, or other person, firm, corporation,
 48 22 association, or aggregation of persons with whom the
 48 23 establishment seller did not deal at arm's length.
 48 24    Sec. 85.  Section 523A.901, subsection 9, paragraph b,
 48 25 subparagraph (2), Code 2007, is amended to read as follows:
 48 26    (2)  A transfer of real property is made when it becomes
 48 27 perfected so that a subsequent bona fide purchaser from the
 48 28 establishment seller could not obtain rights superior to the
 48 29 rights of the transferee.
 48 30    Sec. 86.  Section 523A.901, subsection 9, paragraphs e, i,
 48 31 and j, Code 2007, are amended to read as follows:
 48 32    e.  If a lien which is voidable under paragraph "a",
 48 33 subparagraph (2), has been dissolved by the furnishing of a
 48 34 bond or other obligation, the surety of which has been
 48 35 indemnified directly or indirectly by the transfer or the
 49  1 creation of a lien upon property of an establishment a seller
 49  2 before the filing of a petition under this chapter which
 49  3 results in the liquidation order, the indemnifying transfer or
 49  4 lien is also voidable.
 49  5    i.  If a creditor has been preferred for property which
 49  6 becomes a part of the establishment's seller's estate, and
 49  7 afterward in good faith gives the establishment seller further
 49  8 credit without security of any kind, the amount of the new
 49  9 credit remaining unpaid at the time of the petition may be set
 49 10 off against the preference which would otherwise be
 49 11 recoverable from the creditor.
 49 12    j.  If within four months before the filing of a successful
 49 13 petition for liquidation under this chapter, or at any time in
 49 14 contemplation of a proceeding to liquidate, an establishment a
 49 15 seller, directly or indirectly, pays money or transfers
 49 16 property to an attorney for services rendered or to be
 49 17 rendered, the transaction may be examined by the court on its
 49 18 own motion or shall be examined by the court on petition of
 49 19 the liquidator.  The payment or transfer shall be held valid
 49 20 only to the extent of a reasonable amount to be determined by
 49 21 the court.  The excess may be recovered by the liquidator for
 49 22 the benefit of the estate.  However, where the attorney is in
 49 23 a position of influence in the establishment business of the
 49 24 seller or an affiliate, payment of any money or the transfer
 49 25 of any property to the attorney for services rendered or to be
 49 26 rendered shall be governed by the provisions of paragraph "a",
 49 27 subparagraph (2), subparagraph subdivision (d).
 49 28    Sec. 87.  Section 523A.901, subsection 9, paragraph k,
 49 29 subparagraphs (1) and (2), Code 2007, are amended to read as
 49 30 follows:
 49 31    (1)  An officer, manager, employee, shareholder,
 49 32 subscriber, attorney, or other person acting on behalf of the
 49 33 establishment seller who knowingly participates in giving any
 49 34 preference when the person has reasonable cause to believe the
 49 35 establishment seller is or is about to become insolvent at the
 50  1 time of the preference is personally liable to the liquidator
 50  2 for the amount of the preference.  There is an inference that
 50  3 reasonable cause exists if the transfer was made within four
 50  4 months before the date of filing of this successful petition
 50  5 for liquidation.
 50  6    (2)  A person receiving property from the establishment
 50  7 seller or the benefit of the property of the establishment
 50  8 seller as a preference voidable under paragraph "a" is
 50  9 personally liable for the property and shall account to the
 50 10 liquidator.
 50 11    Sec. 88.  Section 523A.901, subsection 13, paragraph d,
 50 12 Code 2007, is amended to read as follows:
 50 13    d.  A judgment or order against an establishment a seller
 50 14 entered after the date of filing of a successful petition for
 50 15 liquidation, or a judgment or order against the establishment
 50 16 seller entered at any time by default or by collusion need not
 50 17 be considered as evidence of liability or of the amount of
 50 18 damages.  A judgment or order against an establishment a
 50 19 seller before the filing of the petition need not be
 50 20 considered as evidence of liability or of the amount of
 50 21 damages.
 50 22    Sec. 89.  Section 523A.901, subsection 16, Code 2007, is
 50 23 amended to read as follows:
 50 24    16.  CLAIMS OF OTHER PERSON.  If a creditor, whose claim
 50 25 against an establishment a seller is secured in whole or in
 50 26 part by the undertaking of another person, fails to prove and
 50 27 file that claim, then the other person may do so in the
 50 28 creditor's name and shall be subrogated to the rights of the
 50 29 creditor, whether the claim has been filed by the creditor or
 50 30 by the other person in the creditor's name to the extent that
 50 31 the other person discharges the undertaking.  However, in the
 50 32 absence of an agreement with the creditor to the contrary, the
 50 33 other person is not entitled to any distribution until the
 50 34 amount paid to the creditor on the undertaking plus the
 50 35 distributions paid on the claim from the establishment's
 51  1 seller's estate to the creditor equal the amount of the entire
 51  2 claim of the creditor.  An excess received by the creditor
 51  3 shall be held by the creditor in trust for the other person.
 51  4    Sec. 90.  Section 523A.901, subsection 18, unnumbered
 51  5 paragraph 1, Code 2007, is amended to read as follows:
 51  6    The priority of distribution of claims from the
 51  7 establishment's seller's estate shall be in accordance with
 51  8 the order in which each class of claims is set forth.  Claims
 51  9 in each class shall be paid in full or adequate funds retained
 51 10 for the payment before the members of the next class receive
 51 11 any payment.  Subclasses shall not be established within a
 51 12 class.  The order of distribution of claims is as follows:
 51 13    Sec. 91.  Section 523A.901, subsection 18, paragraph a,
 51 14 subparagraph (1), Code 2007, is amended to read as follows:
 51 15    (1)  Actual and necessary costs of preserving or recovering
 51 16 the assets of the establishment seller.
 51 17    Sec. 92.  Section 523A.901, subsection 19, paragraph a,
 51 18 Code 2007, is amended to read as follows:
 51 19    a.  The liquidator shall review claims duly filed in the
 51 20 liquidation and shall make further investigation as necessary.
 51 21 The liquidator may compound, compromise, or in any other
 51 22 manner negotiate the amount for which claims will be
 51 23 recommended to the court except where the liquidator is
 51 24 required by law to accept claims as settled by a person or
 51 25 organization.  Unresolved disputes shall be determined under
 51 26 subsection 15.  As soon as practicable, the liquidator shall
 51 27 present to the court a report of the claims against the
 51 28 establishment seller with the liquidator's recommendations.
 51 29 The report shall include the name and address of each claimant
 51 30 and the amount of the claim finally recommended.
 51 31    Sec. 93.  Section 523A.901, subsection 21, paragraph b,
 51 32 Code 2007, is amended to read as follows:
 51 33    b.  Funds withheld under subsection 14 and not distributed
 51 34 shall upon discharge of the liquidator be deposited with the
 51 35 treasurer of state and paid pursuant to subsection 18.  Sums
 52  1 remaining which under subsection 18 would revert to the
 52  2 undistributed assets of the establishment seller shall be
 52  3 transferred to the insurance division regulatory fund and
 52  4 become the property of the state as provided under paragraph
 52  5 "a", unless the commissioner in the commissioner's discretion
 52  6 petitions the court to reopen the liquidation pursuant to
 52  7 subsection 23.
 52  8    Sec. 94.  Section 523A.901, subsection 24, Code 2007, is
 52  9 amended to read as follows:
 52 10    24.  DISPOSITION OF RECORDS DURING AND AFTER TERMINATION OF
 52 11 LIQUIDATION.  If it appears to the commissioner that the
 52 12 records of an establishment the business of a seller in the
 52 13 process of liquidation or completely liquidated are no longer
 52 14 useful, the commissioner may recommend to the court and the
 52 15 court shall direct what records shall be retained for future
 52 16 reference and what records shall be destroyed.
 52 17
 52 18
 52 19                                                             
 52 20                               JOHN P. KIBBIE
 52 21                               President of the Senate
 52 22
 52 23
 52 24                                                             
 52 25                               PATRICK J. MURPHY
 52 26                               Speaker of the House
 52 27
 52 28    I hereby certify that this bill originated in the Senate and
 52 29 is known as Senate File 559, Eighty=second General Assembly.
 52 30
 52 31
 52 32                                                             
 52 33                               MICHAEL E. MARSHALL
 52 34                               Secretary of the Senate
 52 35 Approved                , 2007
 53  1
 53  2
 53  3                                
 53  4 CHESTER J. CULVER
 53  5 Governor