S.F. _____ H.F. _____ Section 1. Section 22.7, subsection 58, Code 2015, is 1 amended to read as follows: 2 58. Information filed with the commissioner of insurance 3 pursuant to sections 523A.204 and , 523A.205, 523A.206, 4 523A.207, 523A.401, 523A.502A , and 523A.803 . 5 Sec. 2. Section 502.103, Code 2015, is amended to read as 6 follows: 7 502.103 References to federal statutes. 8 “Securities Act of 1933” , 15 U.S.C. §77a et seq.; “Securities 9 Exchange Act of 1934” , 15 U.S.C. §78a et seq.; “Public Utility 10 Holding Company Act of 1935” , 15 U.S.C. §79 et seq.; “Investment 11 Company Act of 1940” , 15 U.S.C. §80a-1 et seq.; “Investment 12 Advisers Act of 1940” , 15 U.S.C. §80b-1 et seq.; “Employee 13 Retirement Income Security Act of 1974” , 29 U.S.C. §1001 et 14 seq.; “National Housing Act” , 12 U.S.C. §1701; “Commodity 15 Exchange Act” , 7 U.S.C. §1 et seq.; “Internal Revenue Code” , 16 26 U.S.C. §1 et seq.; “Securities Investor Protection Act 17 of 1970” , 15 U.S.C. §78aaa et seq.; “Securities Litigation 18 Uniform Standards Act of 1998” , 112 Stat. 3227; “Small Business 19 Investment Act of 1958” , 15 U.S.C. §661 et seq.; and “Electronic 20 Signatures in Global and National Commerce Act” , 15 U.S.C. 21 §7001 et seq. ; and “ Dodd-Frank Wall Street Reform and Consumer 22 Protection Act” , Pub. L. No. 111–203 mean those federal statutes 23 and the rules and regulations adopted under those federal 24 statutes, as in effect on January 1, 2005 2015 . 25 Sec. 3. Section 502.202, Code 2015, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 24. Intrastate crowdfunding. 28 a. Definitions. As used in this subsection, unless the 29 context otherwise requires: 30 (1) “Intermediary” means a broker-dealer that is subject 31 to the registration requirements of section 502.401 and that 32 facilitates the offer and sale of securities by issuers to 33 investors through an internet-based system that is open to 34 and accessible by the general public. If an intermediary’s 35 -1- LSB 1287XD (11) 86 av/nh 1/ 28

S.F. _____ H.F. _____ activity as a broker-dealer is limited to offerings conducted 1 in accordance with the exemption in this subsection, the 2 administrator shall by rule list the specific broker-dealer 3 requirements with which the intermediary must comply. 4 (2) “Intrastate crowdfunding” means the offer or sale of a 5 security by an issuer in a transaction that is available for 6 purchase only by Iowa residents and by business organizations 7 located in, and organized and registered under the laws of, 8 this state. 9 b. Exemption not available. The exemption in this 10 subsection is not available to any of the following: 11 (1) A foreign issuer. 12 (2) An investment company, as defined in section 3 of the 13 federal Investment Company Act of 1940. 14 (3) A development stage company that either has no specific 15 business plan or purpose or has indicated that the company’s 16 business plan is to engage in a merger or acquisition with an 17 unidentified company or companies, or other entity or person. 18 (4) A company with a class of securities registered under 19 the federal Securities Exchange Act of 1934. 20 (5) Any person who is subject to a disqualifying event as 21 described in the regulations adopted in accordance with section 22 926 of the federal Dodd-Frank Wall Street Reform and Consumer 23 Protection Act, Pub. L. No. 111-203, or in rules adopted by the 24 administrator pursuant to chapter 17A. 25 c. Aggregate sales limit. The aggregate amount of 26 securities sold to all investors by the issuer during the 27 twelve-month period preceding the date of the offer or sale, 28 including any amount sold in reliance upon the exemption in 29 this subsection, shall not exceed one million dollars other 30 than either of the following: 31 (1) Securities sold to Iowa resident institutional 32 investors. 33 (2) Securities sold to the Iowa resident issuer’s 34 management. 35 -2- LSB 1287XD (11) 86 av/nh 2/ 28

S.F. _____ H.F. _____ d. Individual sales limit. The aggregate amount of 1 securities sold to an investor by the issuer during the 2 twelve-month period preceding the date of the offer or sale, 3 including any amount sold in reliance upon the exemption in 4 this subsection, shall not exceed five thousand dollars unless 5 the investor is an accredited investor who resides in Iowa. 6 For purposes of this individual sales limit, the following 7 investors shall be treated as one investor: 8 (1) A relative, spouse, or relative of the spouse of an 9 investor who has the same principal residence as the investor. 10 (2) A trust or estate in which an investor and any related 11 person collectively have more than fifty percent of the 12 beneficial interest, excluding contingent interests. 13 (3) A corporation or other organization of which an investor 14 and any related person collectively are beneficial owners of 15 more than fifty percent of the equity securities, excluding 16 directors’ qualifying shares, or equity interests. 17 e. Use of an intermediary. All offers and sales of 18 securities made in reliance upon the exemption in this 19 subsection shall be made through an intermediary’s internet 20 site. 21 f. Notice to administrator. Prior to the offer of any 22 security in this state made in reliance upon the exemption 23 in this subsection, the issuer shall file a notice with 24 the administrator in a form and format approved by the 25 administrator, and including the filing fee specified by rule, 26 if any. 27 g. Rulemaking. The administrator shall adopt all rules 28 necessary to implement the exemption in this subsection 29 including but not limited to all of the following: 30 (1) Mandatory disclosures. 31 (2) Restrictions on advertising and communications. 32 (3) Target amount, offering period, and escrow 33 requirements. 34 (4) Use and compensation of promoters. 35 -3- LSB 1287XD (11) 86 av/nh 3/ 28

S.F. _____ H.F. _____ (5) Restrictions on the sale of securities purchased under 1 the exemption in this subsection. 2 (6) Sales reports. 3 (7) Limitations on the offering price. 4 (8) Duties of an intermediary which shall include providing 5 the administrator with continuous investor-level access to the 6 intermediary’s internet site. 7 (9) Records maintenance. 8 (10) Duties and registration requirements for internet site 9 operators. 10 Sec. 4. Section 502.302, subsection 1, paragraph a, 11 subparagraph (1), Code 2015, is amended to read as follows: 12 (1) A person who is the issuer of a federal covered 13 security under section 18(b)(2) of the Securities Act of 14 1933 shall initially make a notice filing and annually renew 15 a notice filing in this state for an indefinite amount or a 16 fixed amount . The fixed amount must be for two hundred fifty 17 thousand dollars. 18 Sec. 5. Section 502.302, subsection 1, paragraph a, 19 subparagraph (2), unnumbered paragraph 1, Code 2015, is amended 20 to read as follows: 21 A notice filer shall pay a filing fee in the amount of 22 five hundred dollars when the notice is filed. If the amount 23 covered by the notice is indefinite, the notice filer shall pay 24 a filing fee of one thousand dollars. If the amount covered by 25 the notice is fixed, the notice filer shall pay a filing fee 26 of two hundred fifty dollars, and all of the following shall 27 apply: 28 Sec. 6. Section 502.302, subsection 1, paragraph a, 29 subparagraph (2), subparagraph divisions (a) and (b), Code 30 2015, are amended by striking the subparagraph divisions. 31 Sec. 7. Section 502.302, subsections 2 and 3, Code 2015, are 32 amended to read as follows: 33 2. Notice filing effectiveness and renewal. A notice filing 34 under subsection 1 is effective for one year commencing on 35 -4- LSB 1287XD (11) 86 av/nh 4/ 28

S.F. _____ H.F. _____ the later of the notice filing or the effectiveness of the 1 offering filed with the securities and exchange commission. 2 On or before expiration, the issuer may renew a notice filing 3 by filing a copy of those records filed by the issuer with 4 the securities and exchange commission that are required by 5 rule or order under this chapter to be filed and by paying 6 the a renewal fee required by subsection 1 , paragraph “a” of 7 five hundred dollars . A previously filed consent to service 8 of process complying with section 502.611 may be incorporated 9 by reference in a renewal. A renewed notice filing becomes 10 effective upon the expiration of the filing being renewed. 11 3. Notice filings for federal covered securities under 12 section 18(b)(4)(D). With respect to a security that is a 13 federal covered security under section 18(b)(4)(D) of the 14 Securities Act of 1933, 15 U.S.C. §77r(b)(4)(D), a rule under 15 this chapter may require a notice filing by or on behalf of an 16 issuer to include a copy of form D, including the appendix, 17 as promulgated by the securities and exchange commission, 18 and a consent to service of process complying with section 19 502.611 signed by the issuer not later than fifteen days after 20 the first sale of the federal covered security in this state 21 and the payment of a fee of one two hundred dollars; and the 22 payment of a fee of two hundred fifty dollars for any late 23 filing. 24 Sec. 8. Section 502.412, subsection 9, Code 2015, is amended 25 to read as follows: 26 9. Limit on investigation or proceeding. The administrator 27 shall not institute a proceeding under subsection 1, 2, 28 or 3 based solely on material facts actually known by the 29 administrator unless an investigation or the proceeding is 30 instituted within one year two years after the administrator 31 actually acquires knowledge of the material facts. 32 Sec. 9. Section 511.8, subsection 5, paragraphs a and b, 33 Code 2015, are amended to read as follows: 34 a. (1) If fixed interest-bearing obligations, the net 35 -5- LSB 1287XD (11) 86 av/nh 5/ 28

S.F. _____ H.F. _____ earnings of the issuing, assuming, or guaranteeing corporation 1 available for its fixed charges for a period of five fiscal 2 years next preceding the date of acquisition of the obligations 3 by such insurance company shall have averaged per year not 4 less than one and one-half times such average annual fixed 5 charges of the issuing, assuming, or guaranteeing corporation 6 applicable to such period, and, during at least one of the last 7 two years of such period, its net earnings shall have been 8 not less than one and one-half times its fixed charges for 9 such year; or if, at the date of acquisition, the obligations 10 are adequately secured and have investment qualities and 11 characteristics wherein the speculative elements are not 12 predominant investment grade as defined by the commissioner by 13 rule . 14 (2) However, with respect to fixed interest-bearing 15 obligations which are issued, assumed, or guaranteed by a 16 financial company, the net earnings by the financial company 17 available for its fixed charges for the period of five fiscal 18 years preceding the date of acquisition of the obligations by 19 the insurance company shall have averaged per year not less 20 than one and one-fourth times such average annual fixed charges 21 of the issuing, assuming, or guaranteeing financial company 22 applicable to such period, and, during at least one of the last 23 two years of the period, its net earnings shall have been not 24 less than one and one-fourth times its fixed charges for such 25 year; or if, at the date of acquisition, the obligations are 26 adequately secured and speculative elements are not predominant 27 in their investment qualities and characteristics investment 28 grade as defined by the commissioner by rule . As used in 29 this subparagraph (2), “financial company” means a corporation 30 which on the average over its last five fiscal years preceding 31 the date of acquisition of its obligations by the insurer, 32 has had at least fifty percent of its net income, including 33 income derived from subsidiaries, derived from the business 34 of wholesale, retail, installment, mortgage, commercial, 35 -6- LSB 1287XD (11) 86 av/nh 6/ 28

S.F. _____ H.F. _____ industrial or consumer financing, or from banking or factoring, 1 or from similar or related lines of business. 2 b. If adjustment, income, or other contingent interest 3 obligations, the net earnings of the issuing, assuming, or 4 guaranteeing corporation available for its fixed charges 5 for a period of five fiscal years next preceding the date 6 of acquisition of the obligations by such insurance company 7 shall have averaged per year not less than one and one-half 8 times such average annual fixed charges of the issuing, 9 assuming, or guaranteeing corporation and its average annual 10 maximum contingent interest applicable to such period and, 11 during at least one of the last two years of such period, its 12 net earnings shall have been not less than one and one-half 13 times the sum of its fixed charges and maximum contingent 14 interest for such year, or if, at the date of acquisition, 15 the obligations are adequately secure and have investment 16 qualities and characteristics and speculative elements are not 17 predominant investment grade as defined by the commissioner by 18 rule . 19 Sec. 10. Section 511.8, subsection 6, paragraph a, 20 subparagraph (1), subparagraph division (b), unnumbered 21 paragraph 1, Code 2015, is amended to read as follows: 22 The net earnings available for fixed charges and preferred 23 dividends of the issuing corporation shall have been, for 24 each of the five fiscal years immediately preceding the date 25 of acquisition, not less than one and one-half times the sum 26 of the annual fixed charges and contingent interest, if any, 27 and the annual preferred dividend requirements as of the date 28 of acquisition; or at the date of acquisition the preferred 29 stock has is investment qualities and characteristics wherein 30 speculative elements are not predominant grade as defined by 31 the commissioner by rule . 32 Sec. 11. Section 511.8, subsection 8, unnumbered paragraph 33 1, Code 2015, is amended to read as follows: 34 Securities included under subsections 5, 6, and 7 , and 35 -7- LSB 1287XD (11) 86 av/nh 7/ 28

S.F. _____ H.F. _____ subsection 9, paragraph “h” , shall not be eligible: 1 Sec. 12. Section 511.8, subsection 8, paragraph b, 2 unnumbered paragraph 1, Code 2015, is amended to read as 3 follows: 4 The investments of any company or association in such the 5 securities of a corporation shall not be eligible in excess of 6 exceed the following percentages of the legal reserve of such 7 company or association: 8 Sec. 13. Section 511.8, subsection 8, paragraph b, 9 subparagraphs (1) and (2), Code 2015, are amended to read as 10 follows: 11 (1) With the exception of public securities For any one 12 corporation other than a public utility company , two percent 13 of the legal reserve in the securities of any one corporation . 14 Five For any one public utility company, five percent of the 15 legal reserve in the securities of any one public utility 16 corporation . 17 (2) Seventy-five percent of the legal reserve in the 18 securities described in subsection 5 issued by other than 19 public utility corporations. Fifty percent of the legal 20 reserve in the For securities described in subsection 5 issued 21 by public utility corporations companies, fifty percent of the 22 legal reserve . 23 Sec. 14. Section 511.8, subsection 9, Code 2015, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . h. Mezzanine real estate loans subject to 26 the following conditions: 27 (1) The terms of the mezzanine real estate loan agreement 28 shall do all of the following: 29 (a) Require that each pledgor abstain from granting 30 additional security interests in the equity interest pledged. 31 (b) Set forth techniques to minimize the likelihood or 32 impact of a bankruptcy filing on the part of the real estate 33 owner or the mezzanine real estate loan borrower consistent 34 with the national association of insurance commissioners’ 35 -8- LSB 1287XD (11) 86 av/nh 8/ 28

S.F. _____ H.F. _____ accounting practices and procedures manual. 1 (c) Require the real estate owner or mezzanine real estate 2 loan borrower to do all of the following: 3 (i) Hold no assets other than, in the case of the real 4 estate owner, the real property, and in the case of the 5 mezzanine real estate loan borrower, the equity interest of the 6 real estate owner. 7 (ii) Not engage in any business other than, in the case 8 of the real estate owner, the ownership and operation of the 9 real estate, and in the case of the mezzanine real estate loan 10 borrower, holding an ownership interest in the real estate 11 owner. 12 (iii) Not incur additional debt, other than limited trade 13 payables, a first mortgage loan, or mezzanine real estate 14 loans. 15 (2) At the time of purchase, the sum of the first mortgage 16 and the mezzanine real estate loans shall not exceed ninety 17 percent of the value of the real estate evidenced by a 18 current appraisal and the mezzanine real estate loan shall be 19 classified as CM4 or better in accordance with the national 20 association of insurance commissioners’ rating methodology, or 21 an equivalent or successor rating. 22 (3) The value of a company’s or association’s total 23 investments qualified under this paragraph “h” shall not exceed 24 three percent of the legal reserve subject to the following 25 conditions: 26 (a) The value of a company’s or association’s total 27 investments qualified under this paragraph “h” in mezzanine 28 real estate loans classified as CM3 in accordance with the 29 national association of insurance commissioners’ rating 30 methodology or an equivalent or successor rating at the time of 31 purchase shall not exceed two percent of the legal reserve. 32 (b) The value of a company’s or association’s total 33 investments qualified under this paragraph “h” in mezzanine 34 real estate loans classified as CM4 in accordance with the 35 -9- LSB 1287XD (11) 86 av/nh 9/ 28

S.F. _____ H.F. _____ national association of insurance commissioners’ rating 1 methodology or an equivalent or successor rating at the time of 2 purchase shall not exceed one percent of the legal reserve. 3 (4) For purposes of this paragraph “h” , “mezzanine real 4 estate loan” means a loan secured by a pledge of a direct or 5 indirect equity interest in an entity that owns real estate. 6 Sec. 15. Section 511.8, subsection 13, Code 2015, is amended 7 to read as follows: 8 13. Collateral loans. Loans secured by collateral 9 consisting of any securities assets or investments qualified in 10 under this section , provided the amount of the loan is not in 11 excess of ninety percent of the value of the securities assets 12 or investments . Provided further that subsection 8 shall apply 13 to the collateral securities assets or investments pledged 14 to the payment of loans authorized in qualified under this 15 subsection . 16 Sec. 16. Section 511.8, subsection 18, paragraph a, Code 17 2015, is amended to read as follows: 18 a. (1) Common stocks , or shares , or equity interests issued 19 by solvent corporations or institutions are eligible if the 20 total investment in the common stocks , or shares in , or equity 21 interests of the corporations or institutions does not exceed 22 ten percent of legal reserve, provided not more than one-half 23 percent of the legal reserve is invested in common stocks , 24 or shares , or equity interests of any one corporation or 25 institution . However, the not more than four percent of legal 26 reserve shall be invested in common stocks , or shares shall be 27 , or equity interests which do not meet one of the following 28 requirements: 29 (a) Are listed or admitted to trading on an established 30 foreign securities exchange or a securities exchange in the 31 United States or shall be . 32 (b) Are publicly held and traded in the “over-the-counter 33 market” and , provided that market quotations shall be readily 34 available , and further, the investment . 35 -10- LSB 1287XD (11) 86 av/nh 10/ 28

S.F. _____ H.F. _____ (2) An investment in common stocks, shares, or equity 1 interests shall not create a conflict of interest for an 2 officer or director of the company between the insurance 3 company and the corporation whose common stocks , or shares , or 4 equity interests are purchased. 5 Sec. 17. Section 511.8, subsection 22, paragraphs c and d, 6 Code 2015, are amended to read as follows: 7 c. Investments in financial instruments used in hedging 8 transactions are not eligible in excess of two percent of 9 the legal reserve in the financial instruments of any one 10 corporation, less any securities of that corporation owned 11 by the company or association and in which its legal reserve 12 is invested, except insofar as the financial instruments are 13 collateralized by cash, United States government obligations 14 as authorized by subsection 1 , or obligations of or guaranteed 15 by a United States government-sponsored enterprise which on 16 the date they are pledged as collateral are adequately secured 17 and have investment qualities and characteristics wherein the 18 speculative elements are not predominant investment grade as 19 defined by the commissioner by rule , which are deposited with a 20 custodian bank as defined in subsection 21 , and held under a 21 written agreement with the custodian bank that complies with 22 subsection 21 and provides for the proceeds of the collateral, 23 subject to the terms and conditions of the applicable 24 collateral or other credit support agreement, to be remitted to 25 the legal reserve deposit of the company or association and to 26 vest in the state in accordance with section 508.18 whenever 27 proceedings under that section are instituted. 28 d. Investments in financial instruments used in hedging 29 transactions are not eligible in excess of ten percent of the 30 legal reserve, except insofar as the financial instruments are 31 collateralized by cash, United States government obligations 32 as authorized by subsection 1 , or obligations of or guaranteed 33 by a United States government-sponsored enterprise which on 34 the date they are pledged as collateral are adequately secured 35 -11- LSB 1287XD (11) 86 av/nh 11/ 28

S.F. _____ H.F. _____ and have investment qualities and characteristics wherein the 1 speculative elements are not predominant investment grade as 2 defined by the commissioner by rule , which are deposited with a 3 custodian bank as defined in subsection 21 , and held under a 4 written agreement with the custodian bank that complies with 5 subsection 21 and provides for the proceeds of the collateral, 6 subject to the terms and conditions of the applicable 7 collateral or other credit support agreement, to be remitted to 8 the legal reserve deposit of the company or association and to 9 vest in the state in accordance with section 508.18 whenever 10 proceedings under that section are instituted. 11 Sec. 18. Section 511.8, subsection 22, paragraph e, 12 subparagraph (1), Code 2015, is amended to read as follows: 13 (1) Investments in financial instruments of foreign 14 governments or foreign corporate obligations, other than 15 Canada, used in hedging transactions shall be included 16 in the limitation contained in subsection 19 that allows 17 only twenty percent of the legal reserve of the company or 18 association to be invested in such foreign investments, except 19 insofar as the financial instruments are collateralized by 20 cash, United States government obligations as authorized by 21 subsection 1 , or obligations of or guaranteed by a United 22 States government-sponsored enterprise which on the date 23 they are pledged as collateral are adequately secured and 24 have investment qualities and characteristics wherein the 25 speculative elements are not predominant investment grade as 26 defined by the commissioner by rule , which are deposited with a 27 custodian bank as defined in subsection 21 , and held under a 28 written agreement with the custodian bank that complies with 29 subsection 21 and provides for the proceeds of the collateral, 30 subject to the terms and conditions of the applicable 31 collateral or other credit support agreement, to be remitted to 32 the legal reserve deposit of the company or association and to 33 vest in the state in accordance with section 508.18 whenever 34 proceedings under that section are instituted. 35 -12- LSB 1287XD (11) 86 av/nh 12/ 28

S.F. _____ H.F. _____ Sec. 19. Section 514G.102, Code 2015, is amended to read as 1 follows: 2 514G.102 Scope. 3 The requirements of this chapter apply to policies delivered 4 or issued for delivery in this state on or after July 1, 2008. 5 The requirements of this chapter related to independent review 6 of benefit trigger determinations apply to all claims made on 7 or after January 1, 2009. The requirements of this chapter 8 related to prompt payment of claims and the payment of interest 9 apply to all long-term care insurance policies. This chapter 10 is not intended to supersede the obligations of entities 11 subject to this chapter to comply with the substance of other 12 applicable insurance laws not in conflict with this chapter , 13 except that laws and regulations designed and intended to apply 14 to Medicare supplement insurance policies shall not be applied 15 to long-term care insurance. 16 Sec. 20. Section 521A.5, subsection 4, paragraph d, Code 17 2015, is amended to read as follows: 18 d. The board of directors of a domestic insurer shall 19 establish one or more committees comprised solely of directors 20 who or other persons appointed by the board, the majority of 21 whom are not officers or employees of the insurer or of any 22 entity controlling, controlled by, or under common control with 23 the insurer and who are not beneficial owners of a controlling 24 interest in the voting stock of the insurer or any such entity. 25 The committee or committees shall have responsibility for 26 recommending or nominating candidates for director for election 27 by shareholders or policyholders, evaluating the performance 28 of officers deemed to be principal officers of the insurer, 29 and recommending to the board of directors the selection and 30 compensation of the principal officers. 31 Sec. 21. Section 523A.102, subsection 8, Code 2015, is 32 amended by striking the subsection. 33 Sec. 22. Section 523A.102, Code 2015, is amended by adding 34 the following new subsection: 35 -13- LSB 1287XD (11) 86 av/nh 13/ 28

S.F. _____ H.F. _____ NEW SUBSECTION . 13A. “Guaranteed” means that the 1 preneed seller has agreed to accept the funds available from 2 contractual payments made by the purchaser and the allocable 3 portion of accumulated income as payment in full for the 4 applicable items of merchandise and services selected and 5 identified in the purchase agreement, and that the purchaser, 6 beneficiary, and the beneficiary’s estate are not obligated to 7 pay any additional costs related to updated charges for price 8 increases on the merchandise and services selected even if the 9 additional costs exceed the funds available from contractual 10 payments made by the purchaser and the allocable portion of 11 accumulated income. 12 Sec. 23. Section 523A.204, subsection 3, Code 2015, is 13 amended to read as follows: 14 3. All records maintained by the commissioner under this 15 section shall be confidential pursuant to section 22.7, 16 subsection 58 , and shall not be made available for inspection 17 or copying except upon the approval of the commissioner or the 18 attorney general , or except when sought by the preneed seller 19 to whom the records relate . Such records shall be privileged 20 and confidential in any judicial or administrative proceeding 21 except any of the following: 22 a. An action commenced by the commissioner. 23 b. An administrative proceeding brought by the insurance 24 division. 25 c. An action or proceeding which arises out of the criminal 26 provisions of the laws of this state or of the United States. 27 d. An action brought by the insurance division or 28 the attorney general to recover moneys for embezzlement, 29 misappropriation, or misuse of trust funds. 30 Sec. 24. Section 523A.204, subsections 4 and 5, Code 2015, 31 are amended by striking the subsections. 32 Sec. 25. Section 523A.205, subsection 2, Code 2015, is 33 amended by striking the subsection. 34 Sec. 26. Section 523A.205, subsection 3, Code 2015, is 35 -14- LSB 1287XD (11) 86 av/nh 14/ 28

S.F. _____ H.F. _____ amended to read as follows: 1 3. Notwithstanding chapter 22 , all All records maintained 2 by the commissioner under this section shall be confidential 3 pursuant to section 22.7, subsection 58, and shall not be made 4 available for inspection or copying except upon approval of the 5 commissioner or the attorney general , or except when sought by 6 the financial institution to whom the records relate . Such 7 records shall be privileged and confidential in any judicial or 8 administrative proceeding except any of the following: 9 a. An action commenced by the commissioner. 10 b. An administrative proceeding brought by the insurance 11 division. 12 c. An action or proceeding which arises out of the criminal 13 provisions of the laws of this state or of the United States. 14 d. An action brought by the insurance division or 15 the attorney general to recover moneys for embezzlement, 16 misappropriation, or misuse of trust funds. 17 Sec. 27. Section 523A.206, subsection 6, Code 2015, is 18 amended by striking the subsection and inserting in lieu 19 thereof the following: 20 6. All records maintained by the commissioner under this 21 section, including work papers, notes, recorded information, 22 documents, and copies thereof that are produced or obtained 23 by or disclosed to the commissioner or another person in the 24 course of a compliance examination, shall be confidential 25 pursuant to section 22.7, subsection 58, and shall not be 26 made available for inspection and copying except upon the 27 approval of the commissioner or the attorney general. Such 28 records shall be privileged and confidential in any judicial or 29 administrative proceeding except any of the following: 30 a. An action commenced by the commissioner. 31 b. An administrative proceeding brought by the insurance 32 division. 33 c. An action or proceeding which arises out of the criminal 34 provisions of the laws of this state or of the United States. 35 -15- LSB 1287XD (11) 86 av/nh 15/ 28

S.F. _____ H.F. _____ d. An action brought by the insurance division or 1 the attorney general to recover moneys for embezzlement, 2 misappropriation, or misuse of trust funds. 3 Sec. 28. Section 523A.207, Code 2015, is amended to read as 4 follows: 5 523A.207 Audits by certified public accountants —— penalty. 6 1. A purchase agreement shall not be sold or transferred, 7 as part of the sale of a business or the assets of a business, 8 until an audit has been performed by a certified public 9 accountant and filed with the commissioner that expresses the 10 auditor’s opinion of the adequacy of funding related to the 11 purchase agreements to be sold or transferred. If the buyer 12 of a purchase agreement sold or transferred as part of the 13 sale of a business or the assets of a business, fails to file 14 such an audit, the commissioner shall suspend the preneed 15 seller’s license of the buyer and the preneed sales license of 16 any sales agent in the employ of the buyer until the audit is 17 filed. In addition, the commissioner shall assess a penalty 18 against the buyer in an amount up to one hundred dollars for 19 each day that the audit remains unfiled. The commissioner 20 shall allow a thirty-day grace period after the date that a 21 purchase agreement is sold or transferred before suspension of 22 a license or assessment of a penalty for failure to file an 23 audit pursuant to this section . 24 2. All records maintained by the commissioner under this 25 section shall be confidential pursuant to section 22.7, 26 subsection 58, and shall not be made available for inspection 27 or copying except upon approval of the commissioner or the 28 attorney general, or except when sought by the preneed seller 29 to whom the records relate. Such records shall be privileged 30 and confidential in any judicial or administrative proceeding 31 except any of the following: 32 a. An action commenced by the commissioner. 33 b. An administrative proceeding brought by the insurance 34 division. 35 -16- LSB 1287XD (11) 86 av/nh 16/ 28

S.F. _____ H.F. _____ c. An action or proceeding which arises out of the criminal 1 provisions of the laws of this state or of the United States. 2 d. An action brought by the insurance division or 3 the attorney general to recover moneys for embezzlement, 4 misappropriation, or misuse of trust funds. 5 Sec. 29. Section 523A.401, subsection 8, Code 2015, is 6 amended to read as follows: 7 8. An insurance company issuing policies funding purchase 8 agreements subject to this chapter shall file an annual report 9 with the commissioner on a form prescribed by the commissioner. 10 The report shall list the applicable insurance policies 11 outstanding for each seller. Computer printouts may be 12 submitted so long as each legibly provides the same information 13 required in the prescribed form. 14 Sec. 30. Section 523A.401, Code 2015, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 10. All records maintained by the 17 commissioner under this section shall be confidential 18 pursuant to section 22.7, subsection 58, and shall not be made 19 available for inspection or copying except upon approval of the 20 commissioner or the attorney general, or except when sought 21 by the insurance company to whom the records relate. Such 22 records shall be privileged and confidential in any judicial or 23 administrative proceeding except any of the following: 24 a. An action commenced by the commissioner. 25 b. An administrative proceeding brought by the insurance 26 division. 27 c. An action or proceeding which arises out of the criminal 28 provisions of the laws of this state or of the United States. 29 d. An action brought by the insurance division or 30 the attorney general to recover moneys for embezzlement, 31 misappropriation, or misuse of trust funds. 32 Sec. 31. Section 523A.402, subsection 8, Code 2015, is 33 amended to read as follows: 34 8. An insurance company issuing annuities funding purchase 35 -17- LSB 1287XD (11) 86 av/nh 17/ 28

S.F. _____ H.F. _____ agreements subject to this chapter shall file an annual report 1 with the commissioner on a form prescribed by the commissioner. 2 The report shall list the applicable annuities outstanding for 3 each seller. Computer printouts may be submitted so long as 4 each legibly provides the same information required in the 5 prescribed form. 6 Sec. 32. Section 523A.405, Code 2015, is amended by striking 7 the section and inserting in lieu thereof the following: 8 523A.405 Bond in lieu of trust fund. 9 The commissioner may, by rule, establish terms and 10 conditions under which a seller may, in lieu of trust 11 requirements, file with the commissioner a surety bond issued 12 by a surety company authorized to do business and doing 13 business in this state. 14 Sec. 33. Section 523A.501, subsection 2, Code 2015, is 15 amended to read as follows: 16 2. An application for a preneed seller’s license shall be 17 filed on a form and in a format prescribed by the commissioner 18 and be accompanied by a fifty dollar filing fee. The 19 application shall include the name of the natural person or 20 legal entity to be licensed as the preneed seller and, if 21 applicable, any other name under which the preneed seller will 22 be transacting business, including any names registered with 23 the secretary of state or a county clerk. The application 24 shall be updated as necessary to ensure that the commissioner 25 has been notified of all names under which the preneed seller 26 is operating and doing business. 27 Sec. 34. Section 523A.501, subsection 7, Code 2015, is 28 amended to read as follows: 29 7. A preneed seller’s license shall be renewed every four 30 years by filing the form prescribed by the commissioner under 31 subsection 2 , accompanied by a renewal fee in an amount set by 32 the commissioner by rule expires annually on April 15 . If the 33 preneed seller has filed a complete annual report and paid the 34 required fees as required in section 523A.204, the commissioner 35 -18- LSB 1287XD (11) 86 av/nh 18/ 28

S.F. _____ H.F. _____ shall renew the preneed seller’s license until April 15 of the 1 following year. 2 Sec. 35. Section 523A.502, subsection 5, Code 2015, is 3 amended by striking the subsection and inserting in lieu 4 thereof the following: 5 5. A sales license shall expire annually on April 15. If 6 the sales agent has filed a substantially complete annual 7 report as required in section 523A.502A, the commissioner shall 8 renew the sales license until April 15 of the following year. 9 Sec. 36. Section 523A.502A, subsections 1 and 2, Code 2015, 10 are amended to read as follows: 11 1. A sales agent shall file with the commissioner not later 12 than April 1 of each year an annual report on a form prescribed 13 by the commissioner describing each purchase agreement sold 14 by the sales agent during the year. An annual report must be 15 filed whether or not sales were made during the year and even 16 if the sales agent is no longer an agent of a preneed seller or 17 licensed by the commissioner. 18 2. All records maintained by the commissioner under this 19 section shall be confidential pursuant to section 22.7, 20 subsection 58 , and shall not be made available for inspection 21 or copying except upon the approval of the commissioner or the 22 attorney general , or except when sought by the sales agent to 23 whom the records relate . Such records shall be privileged 24 and confidential in any judicial or administrative proceeding 25 except any of the following: 26 a. An action commenced by the commissioner. 27 b. An administrative proceeding brought by the insurance 28 division. 29 c. An action or proceeding which arises out of the criminal 30 provisions of the laws of this state or of the United States. 31 d. An action brought by the insurance division or 32 the attorney general to recover moneys for embezzlement, 33 misappropriation, or misuse of trust funds. 34 Sec. 37. Section 523A.502A, subsections 3 and 4, Code 2015, 35 -19- LSB 1287XD (11) 86 av/nh 19/ 28

S.F. _____ H.F. _____ are amended by striking the subsections. 1 Sec. 38. Section 523A.803, subsection 1, paragraph c, Code 2 2015, is amended by striking the paragraph. 3 Sec. 39. Section 523A.803, Code 2015, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 1A. All records maintained by the 6 commissioner under this section, including work papers, notes, 7 recorded information, documents, and copies thereof that are 8 produced or obtained by or disclosed to the commissioner or 9 another person in the course of an investigation, shall be 10 confidential pursuant to section 22.7, subsection 58, and shall 11 not be made available for inspection and copying except upon 12 the approval of the commissioner or the attorney general. Such 13 records shall be privileged and confidential in any judicial or 14 administrative proceeding except any of the following: 15 a. An action commenced by the commissioner. 16 b. An administrative proceeding brought by the insurance 17 division. 18 c. An action or proceeding which arises out of the criminal 19 provisions of the laws of this state or of the United States. 20 d. An action brought by the insurance division or 21 the attorney general to recover moneys for embezzlement, 22 misappropriation, or misuse of trust funds. 23 Sec. 40. Section 523A.807, subsection 3, unnumbered 24 paragraph 1, Code 2015, is amended to read as follows: 25 If the commissioner finds that a person has violated section 26 523A.201 , 523A.202 , 523A.203 , 523A.207 , 523A.401 , 523A.402 , 27 523A.403 , 523A.404 , 523A.405 , 523A.501 , 523A.502 , or 523A.504 28 or any rule adopted pursuant thereto, the commissioner may 29 order any or all of the following: 30 Sec. 41. Section 523I.810, subsection 9, Code 2015, is 31 amended to read as follows: 32 9. A cemetery may, by resolution adopted by a vote of at 33 least two-thirds of the members of its board at any authorized 34 meeting of the board, authorize the withdrawal and use of 35 -20- LSB 1287XD (11) 86 av/nh 20/ 28

S.F. _____ H.F. _____ not more than twenty percent of the principal of the care 1 fund to acquire additional land for cemetery purposes, to 2 repair a mausoleum or other building or structure intended for 3 cemetery purposes, to build, improve, or repair boundaries, 4 roads and walkways in the cemetery, to purchase equipment for 5 tree, shrub, and lawn care, to purchase backhoes or similar 6 equipment used to open and close interment spaces, to purchase 7 equipment used to construct a columbarium, mausoleum, or 8 similar structure to create additional interment spaces, or 9 to purchase recordkeeping software used to maintain ownership 10 records or interment records. The resolution shall establish 11 a reasonable repayment schedule, not to exceed five years , 12 and provide for interest in an amount comparable to the care 13 fund’s current rate of return on its investments . However, 14 the care fund shall not be diminished below an amount equal to 15 the greater of twenty-five thousand dollars or five thousand 16 dollars per acre of land in the cemetery. The resolution, and 17 if the deposit of care fund income over five years is unlikely 18 to fund replenishment of the principal of the care fund, either 19 a bond or proof of insurance to guarantee replenishment of the 20 care fund, shall be filed with the commissioner thirty days 21 prior to the withdrawal of funds. 22 Sec. 42. Section 523I.811, subsection 1, paragraph b, Code 23 2015, is amended to read as follows: 24 b. Maintaining drains, water lines, roads, buildings, 25 boundaries, fences, and other structures. 26 Sec. 43. Section 523I.811, subsection 1, Code 2015, is 27 amended by adding the following new paragraphs: 28 NEW PARAGRAPH . g. To purchase equipment to maintain the 29 cemetery. 30 NEW PARAGRAPH . h. To purchase backhoes or similar equipment 31 used to open and close interment spaces. 32 NEW PARAGRAPH . i. To purchase equipment used to construct 33 a columbarium, mausoleum, or similar structure to create 34 additional interment spaces. 35 -21- LSB 1287XD (11) 86 av/nh 21/ 28

S.F. _____ H.F. _____ Sec. 44. NEW SECTION . 523I.811A Emergency use of care 1 funds. 2 1. Notwithstanding any other provision of this chapter, 3 a perpetual care cemetery may apply to the commissioner to 4 withdraw funds from the cemetery’s care fund for a financial 5 emergency. The commissioner shall, by rule, establish 6 standards and procedures for such applications and for 7 withdrawals from care funds. 8 2. Upon application, the commissioner may allow a perpetual 9 care cemetery to withdraw funds from the care fund if the 10 commissioner finds that the cemetery has an urgent financial 11 need and the withdrawal is deemed reasonable and prudent to 12 fund a necessary expense of the cemetery. The commissioner 13 shall establish conditions for the specific use of the funds 14 withdrawn and may require repayment of all or part of the 15 amount withdrawn. 16 Sec. 45. EFFECTIVE DATE. The following provision or 17 provisions of this Act take effect January 1, 2016: 18 1. The section of this Act adding section 502.202, 19 subsection 24. 20 Sec. 46. DIRECTIONS TO CODE EDITOR. The Iowa code editor is 21 directed to transfer section 515.11 to new section 515.23. 22 Sec. 47. REPEAL. Section 523A.504, Code 2015, is repealed. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to various matters involving insurance 27 and the insurance division of the department of commerce and 28 includes effective date provisions. 29 UNIFORM SECURITIES ACT. Code section 502.103 is amended 30 to update references in Code chapter 502 to include current 31 federal statutes. New Code section 502.202(24) provides an 32 exemption from certain securities registration and filing 33 requirements for offers and sales of securities known as 34 intrastate crowdfunding and provides limitations and conditions 35 -22- LSB 1287XD (11) 86 av/nh 22/ 28

S.F. _____ H.F. _____ on such offers and sales of securities in the state. All 1 offers and sales of securities made pursuant to the exemption 2 must be made through a broker-dealer’s internet site. 3 “Intrastate crowdfunding” is defined as the offer or sale of a 4 security by an issuer in a transaction that is available for 5 purchase only by Iowa residents and by business organizations 6 located in Iowa and organized and registered under Iowa law. 7 This provision takes effect January 1, 2016. 8 Code section 502.302(1)(a)(1) and (2), concerning specified 9 federal covered securities, are amended to eliminate an option 10 that allows filing fees accompanying notice filings of offers 11 of such securities to be based on a definite or indefinite 12 amount, instead requiring all notice filers to pay a fixed fee 13 of $500. Code section 502.302(1)(a)(2)(a) and (b) are stricken 14 to eliminate the need to file a sales report. Code section 15 502.302(2) is amended to establish a flat fee of $500 for 16 renewals of such filings. Code section 502.302(3) is amended 17 to provide for a filing fee of $200 instead of $100 for other 18 specified federal covered securities. 19 Code section 502.412(9) is amended to provide that the 20 administrator of the securities and regulated industries bureau 21 of the insurance division of the department of commerce has two 22 years instead of one year after acquiring material facts to 23 institute a disciplinary proceeding concerning a broker-dealer 24 or investment adviser. 25 LIFE INSURANCE COMPANIES AND ASSOCIATIONS. Code section 26 511.8(5)(a) and (b) are amended to provide that investments 27 in certain corporate obligations made by life insurance 28 companies and associations are allowed if, at the date of 29 acquisition, the obligations are investment grade as defined 30 by the commissioner by rule. Similar changes are made as to 31 investments in preferred and guaranteed stocks (Code section 32 511.8(6)(a)(1)(b)), and financial instruments used in hedging 33 transactions (Code section 511.8(22)(c),(d), and (e)(1)). 34 Code section 511.8(8) is amended to provide that specified 35 -23- LSB 1287XD (11) 86 av/nh 23/ 28

S.F. _____ H.F. _____ further restrictions on investments of a life insurance 1 company or association in securities apply to mezzanine real 2 estate loans. Code section 511.8(8)(b) is amended to provide 3 that investments of a life insurance company or association 4 in securities of a corporation shall not exceed specified 5 percentages of the legal reserve. 6 Code section 511.8(8)(b)(1) and (2) are amended to provide 7 that investments in corporate obligations, preferred and 8 guaranteed stocks, equipment trust obligations, or mezzanine 9 real estate loans are limited to 2 percent of legal reserve 10 for any one corporation other than a public utility company, 11 5 percent of the legal reserve for any one public utility 12 company, and 50 percent of the legal reserve for corporate 13 obligations issued by public utility companies. 14 New Code section 511.8(9)(h) provides that a life insurance 15 company or association may invest in mezzanine real estate 16 loans subject to specified conditions. The provision specifies 17 what terms a mezzanine loan agreement must include and limits 18 the value of a life insurance company’s or association’s total 19 investments in mezzanine real estate loans. For purposes of 20 the new provision, “mezzanine real estate loan” means a loan 21 secured by a pledge of a direct or indirect equity interest in 22 an entity that owns real estate. 23 Code section 511.8(13) is amended to provide that life 24 insurance companies and associations can invest in loans 25 secured by collateral consisting of qualified assets or 26 investments instead of securities. 27 Code section 511.8(18)(a) is amended to provide that life 28 insurance companies and associations can invest in certain 29 specified equity interests as well as common stocks and shares 30 issued by corporations or institutions. The provision provides 31 limitations on the percentage of legal reserve that can be 32 invested in specified types of common stocks, shares, or equity 33 interests. 34 LONG-TERM CARE INSURANCE. Code section 514G.102 is amended 35 -24- LSB 1287XD (11) 86 av/nh 24/ 28

S.F. _____ H.F. _____ to provide that the requirements of Code chapter 514G related 1 to prompt payment of claims and the payment of interest apply 2 to all long-term care insurance policies. 3 INSURANCE OTHER THAN LIFE. The Code editor is directed to 4 transfer Code section 515.11, pertaining to prohibited loans to 5 an officer, director, stockholder, or employee of a company or 6 to a relative of an officer or relative of a company, to Code 7 section 515.23. 8 INSURANCE HOLDING COMPANY SYSTEMS. Code section 9 521A.5(4)(d) is amended to require that when a domestic 10 insurer is required to establish a committee or committees of 11 directors or other persons appointed by the board, that are 12 responsible for nominating candidates for director, evaluating 13 the performance of officers, and recommending the selection 14 and compensation of principal officers, the majority of such 15 committee members shall not be officers or employers of any 16 entity controlling, controlled by, or under common control with 17 the insurer. 18 CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES. Code 19 section 523A.102(8) is stricken, eliminating the definition of 20 “credit sale”. 21 New Code section 523A.102(13A) provides that for purposes 22 of Code chapter 523A, “guaranteed” means that a preneed seller 23 has agreed to accept the funds available from contractual 24 payments made by a purchaser and the allocable portion of 25 accumulated income on those payments as payment in full for the 26 applicable items of cemetery merchandise and services selected 27 and identified in a purchase agreement for the merchandise and 28 services. A purchaser, beneficiary, or beneficiary’s estate 29 is not obligated to pay any additional costs related to price 30 increases on the merchandise and services selected even if the 31 additional costs exceed the funds available. 32 Code section 523A.204(3) is amended to provide that 33 information in annual reports provided to the commissioner 34 by preneed sellers is confidential pursuant to the Iowa 35 -25- LSB 1287XD (11) 86 av/nh 25/ 28

S.F. _____ H.F. _____ open records law (Code chapter 22) and shall not be made 1 available for inspection or copying except upon the approval 2 of the commissioner or the attorney general or when sought 3 by the preneed seller to whom the records relate. Such 4 information is also privileged and confidential in any judicial 5 or administrative proceeding except as specified. Similar 6 requirements concerning confidentiality of information provided 7 to the commissioner are added in Code section 523A.205(3) 8 concerning annual reports by financial institutions, Code 9 section 523A.206(6) concerning information obtained in 10 the course of an examination, new Code section 523A.207(2) 11 concerning records obtained during an audit performed by a 12 certified public accountant, new Code section 523A.401(10) 13 concerning information maintained about purchase agreements 14 funded by insurance proceeds, Code section 523A.502A(2) 15 concerning licensure of sales agents, and Code section 16 523A.803(1)(c) concerning investigations into violations of the 17 Code chapter. Code section 22.7, subsection 58, is amended to 18 specify that information provided to the commissioner pursuant 19 to Code sections 523A.205, 523A.206, 523A.207, 523A.401, and 20 523A.803 is confidential. 21 Code section 523A.204(4) and (5) are stricken, eliminating 22 provisions related to levying an administrative penalty 23 against a preneed seller for violations of the annual reporting 24 requirement. 25 Code section 523A.205(2) is stricken, eliminating a 26 requirement that the commissioner accept annual reports of 27 preneed sellers in electronic format, including computer 28 diskettes. 29 Code section 523A.401(8) is amended by eliminating the 30 provision that allows computer printouts to be submitted with 31 annual reports filed by insurance companies issuing policies 32 to fund preneed purchase agreements. Code section 523A.402(8) 33 is similarly amended to eliminate the provision that such 34 printouts may be submitted with annual reports pertaining to 35 -26- LSB 1287XD (11) 86 av/nh 26/ 28

S.F. _____ H.F. _____ purchase agreements funded by annuity proceeds. 1 Code section 523A.405 is amended to eliminate specific 2 requirements concerning the use of a surety bond in lieu of 3 trust requirements and instead allows the commissioner, by 4 rule, to establish the terms and conditions under which a 5 seller may file a surety bond. 6 Code section 523A.501(2) is amended to provide that the 7 commissioner may establish the format for applications for a 8 preneed seller’s license. The application is also required to 9 include the name of the natural person or legal entity to be 10 licensed and any other name under which the preneed seller will 11 be transacting business. The application must be updated as 12 necessary to ensure that the commissioner is notified of all 13 names under which the preneed seller is operating and doing 14 business. 15 Code section 523A.501(7) is amended to require that a 16 preneed seller’s license be renewed annually instead of every 17 four years. The license shall be renewed April 15 of each 18 year so long as the preneed seller has filed a complete annual 19 report and paid the required fees. Code section 523A.502(5) 20 is similarly amended to require annual renewal of the licenses 21 of preneed sales agents. 22 Code section 523A.502A(1) is amended to provide that a sales 23 agent must file an annual report whether or not the sales agent 24 made any sales during the year, is no longer an agent of a 25 preneed seller, or is no longer licensed as a sales agent. 26 Code section 523A.502A(3) and (4) are stricken, eliminating 27 provisions related to levying an administrative penalty against 28 a preneed sales agent for violations of the annual reporting 29 requirement. 30 Code section 523A.504 requiring a preneed seller to file a 31 notice and pay a fee to appoint a person to act as a sales agent 32 of the preneed seller is repealed. Code section 523A.807(3) is 33 amended to remove a cross-reference to the repealed section. 34 CEMETERIES. Code section 523I.810(9) is amended to provide 35 -27- LSB 1287XD (11) 86 av/nh 27/ 28

S.F. _____ H.F. _____ that a cemetery may adopt a resolution to authorize the 1 withdrawal and expenditure of the principal of a cemetery 2 care fund to repair boundaries; to purchase equipment for 3 tree, shrub, and lawn care; to purchase backhoes or similar 4 equipment used to open and close interment spaces; and to 5 purchase equipment used to construct a columbarium, mausoleum, 6 or similar structure to create additional interment spaces. 7 The bill eliminates a requirement that the repayment schedule 8 provide for interest on the amount withdrawn from the care 9 fund but if the deposit of care fund income over five years is 10 unlikely to fund replenishment of the principal of the care 11 fund, the resolution must be accompanied by a bond or proof of 12 insurance. 13 Code section 523I.811(1) is amended to provide that 14 distributions from the care fund can be used for the new 15 purposes described in Code section 523I.810(9). 16 New Code section 523I.811A provides that a perpetual care 17 cemetery may make application to the commissioner to withdraw 18 funds from the cemetery’s care fund for a financial emergency. 19 The commissioner may allow such a withdrawal upon finding that 20 the cemetery has an urgent financial need and it is reasonable 21 and prudent to fund a necessary expense of the cemetery. The 22 commissioner shall establish conditions for the specific use 23 of the funds and may require repayment of all or part of the 24 amount withdrawn. 25 -28- LSB 1287XD (11) 86 av/nh 28/ 28