House File 192

                                       HOUSE FILE       
                                       BY  KLEMME


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act prohibiting a cancellation penalty upon cancellation of a
  2    purchase agreement for cemetery merchandise, funeral
  3    merchandise, and funeral services.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1605HH 80
  6 av/sh/8

PAG LIN

  1  1    Section 1.  Section 523A.602, subsection 2, paragraph b,
  1  2 Code 2003, is amended to read as follows:
  1  3    b.  If a purchase agreement is canceled, a purchaser
  1  4 requests a transfer of the trust assets upon cancellation of a
  1  5 purchase agreement, or another establishment provides
  1  6 merchandise or services designated in a purchase agreement,
  1  7 the seller shall refund or transfer within thirty days of
  1  8 receiving a written demand no less than the purchase price of
  1  9 the applicable cemetery merchandise, funeral merchandise, and
  1 10 funeral services adjusted for inflation, using the consumer
  1 11 price index amounts announced by the commissioner annually,
  1 12 less any cancellation penalty actual expenses incurred by the
  1 13 seller pursuant to the purchase agreement as set forth in the
  1 14 purchase agreement under section 523A.601, subsection 1,
  1 15 paragraph "f".  The amount of the cancellation penalty actual
  1 16 expenses deducted by the seller shall not exceed ten percent
  1 17 of the purchase price of the applicable cemetery merchandise,
  1 18 funeral merchandise, and funeral services.  The seller may
  1 19 also deduct the value of the cemetery merchandise, funeral
  1 20 merchandise, and funeral services already received by,
  1 21 delivered to, or warehoused for the purchaser.
  1 22                           EXPLANATION
  1 23    This bill prohibits a cancellation penalty upon
  1 24 cancellation of a purchase agreement for cemetery merchandise,
  1 25 funeral merchandise, funeral services, or a combination
  1 26 thereof by providing that when such a purchase agreement is
  1 27 canceled, the seller of the purchase agreement must refund or
  1 28 transfer, upon a written demand, no less than the purchase
  1 29 price of the applicable cemetery merchandise, funeral
  1 30 merchandise, and funeral services adjusted for inflation,
  1 31 using the consumer price index amounts announced by the
  1 32 commissioner annually, less any actual expenses incurred by
  1 33 the seller which have been specified in the purchase
  1 34 agreement.  The bill also provides that the amount of actual
  1 35 expenses deducted from the purchase price by the seller cannot
  2  1 exceed 10 percent of the purchase price of the applicable
  2  2 cemetery merchandise, funeral merchandise, and funeral
  2  3 services.
  2  4 LSB 1605HH 80
  2  5 av/sh/8