H.F. 2634 Section 1. Section 22.7, subsection 58, Code 2026, is 1 amended to read as follows: 2 58. Information filed with the commissioner of insurance 3 pursuant to sections 523A.204 , 523A.205 , 523A.206 , 523A.207 , 4 523A.401 , 523A.502A , and 523A.803 . 5 Sec. 2. Section 523A.102, subsection 7, Code 2026, is 6 amended by striking the subsection. 7 Sec. 3. Section 523A.201, subsection 8, Code 2026, is 8 amended to read as follows: 9 8. Interest or income earned on amounts deposited in trust 10 shall remain in trust under the same terms and conditions 11 as payments made under the purchase agreement, except that 12 a seller may withdraw so much of the interest or income as 13 represents the difference between the amount needed to adjust 14 the trust funds for inflation as set by the commissioner based 15 on the most recently released consumer price index for all 16 urban consumers published by the United States department 17 of labor, bureau of labor statistics, and the interest or 18 income earned during the immediately preceding year not to 19 exceed fifty percent of the total interest or income on a 20 calendar-year basis. The early Early withdrawal of interest or 21 income under this provision does subsection shall not affect 22 the purchaser’s right to a credit of such interest or income in 23 the event of a nonguaranteed price agreement, cancellation, or 24 nonperformance by such a the seller. 25 Sec. 4. Section 523A.206, subsection 1, Code 2026, is 26 amended to read as follows: 27 1. The commissioner may conduct an examination under 28 this chapter of any seller as often as the commissioner 29 deems appropriate. If a seller has a trust arrangement, the 30 commissioner shall conduct an examination of such seller doing 31 business in this state not less than once every five years 32 unless the seller has provided to the commissioner, on an 33 annual basis, a certified copy of an audit conducted by an 34 independent certified public accountant verifying compliance 35 -1- LSB 5513HV (2) 91 nls/ko 1/ 9

H.F. 2634 with this chapter . The commissioner may require a seller 1 to provide a certified copy of an audit of a the seller , or 2 other person conducted by a an independent certified public 3 accountant to verify compliance with the requirements of this 4 chapter , including rules adopted and orders issued pursuant to 5 this chapter . 6 Sec. 5. Section 523A.502, subsection 1, Code 2026, is 7 amended to read as follows: 8 1. a. A person shall not advertise, sell, promote, or offer 9 to furnish cemetery merchandise, funeral merchandise, funeral 10 services, or a combination thereof when performance or delivery 11 may be more than one hundred twenty days following initial 12 payment on the account unless the person has a sales license 13 and is a sales agent of a person holding a preneed seller’s 14 license. The 15 b. A preneed seller licensee is liable for the acts of its 16 the licensee’s sales agents performed in advertising, selling, 17 promoting, or offering to furnish, upon the future death of 18 a person named or implied in a purchase agreement, cemetery 19 merchandise, funeral merchandise, funeral services, or a 20 combination thereof. 21 c. (1) Prior to being issued a sales license, an applicant 22 for a sales license shall be designated by at least one preneed 23 seller to sell, negotiate, or solicit purchase agreements 24 on behalf of the preneed seller. At the time an individual 25 submits an application for a sales license, the preneed 26 seller shall file, in a format approved by the commissioner, 27 documentation of the designation of the applicant to sell, 28 negotiate, or solicit purchase agreements on behalf of the 29 preneed seller. 30 (2) A sales license shall not be issued to a sales 31 license applicant until the applicant has met all licensure 32 requirements of this chapter. 33 (3) The preneed seller shall disclose to the commissioner 34 any changes made to the designation for a sales agent to sell, 35 -2- LSB 5513HV (2) 91 nls/ko 2/ 9

H.F. 2634 negotiate, or solicit preneed contracts on the preneed seller’s 1 behalf within thirty calendar days of the date of the change 2 in designation. 3 d. The license of a sales agent shall not be effective 4 during any time period during which the sales agent is not 5 employed by or associated with a preneed seller licensed under 6 this chapter. 7 Sec. 6. Section 523A.502, subsection 5, Code 2026, is 8 amended to read as follows: 9 5. A sales license shall expire annually on April 30. If 10 a sales agent has filed an annual report pursuant to section 11 523A.502A, subsection 1 , and has fulfilled the continuing 12 education requirements pursuant to subsection 6 and has paid 13 the required renewal fee , the commissioner shall renew the 14 sales agent’s sales license until April 30 of the following 15 year . 16 Sec. 7. Section 523A.601, subsection 1, paragraph i, Code 17 2026, is amended to read as follows: 18 i. Include an explanation of regulatory oversight by 19 the insurance division in twelve point boldface type, in 20 substantially the following language: 21 This agreement is subject to rules administered by the Iowa 22 insurance division. You may call contact the Iowa insurance 23 division with inquiries or complaints at (telephone number). 24 Written inquiries or complaints should be mailed to the Iowa 25 securities and regulated industries bureau, (street address), 26 (city), Iowa (zip code) iid.iowa.gov . 27 Sec. 8. Section 523A.602, subsection 2, paragraph b, 28 subparagraph (1), Code 2026, is amended to read as follows: 29 (1) If a purchase agreement is canceled, a purchaser 30 requests a transfer of the trust assets upon cancellation of a 31 purchase agreement, or another seller provides merchandise or 32 services designated in a purchase agreement, the seller shall 33 refund or transfer within thirty days of receiving a written 34 demand no less than the purchase price of the applicable 35 -3- LSB 5513HV (2) 91 nls/ko 3/ 9

H.F. 2634 cemetery merchandise, funeral merchandise, and funeral services 1 adjusted for inflation, using the most recently released 2 consumer price index amounts announced by the commissioner 3 annually for all urban consumers published by the United 4 States department of labor, bureau of labor statistics , less 5 any actual expenses incurred by the seller pursuant to the 6 purchase agreement as set forth in the purchase agreement under 7 section 523A.601, subsection 1 , paragraph “f” . The amount of 8 the actual expenses deducted by the seller shall not exceed 9 ten percent of the purchase price of the applicable cemetery 10 merchandise, funeral merchandise, and funeral services. The 11 seller may also deduct the value of the cemetery merchandise, 12 funeral merchandise, and funeral services already received by, 13 delivered to, or warehoused for the purchaser. 14 Sec. 9. Section 523A.602, subsection 2, paragraph c, Code 15 2026, is amended to read as follows: 16 c. A purchase agreement must include a statement that the 17 purchaser is entitled to a refund of the purchase price of 18 the applicable funeral merchandise adjusted for inflation, 19 using the most recently released consumer price index amounts 20 announced by the commissioner annually for all urban consumers 21 published by the United States department of labor, bureau 22 of labor statistics, for any item of funeral merchandise 23 that cannot be delivered to the location specified in the 24 purchase agreement within forty-eight hours of notice of the 25 individual’s death, unless the delay is caused by weather 26 conditions or a natural disaster. The seller must return such 27 refund to the purchaser within thirty days of receiving the 28 written demand. 29 Sec. 10. Section 523A.807, subsection 3, unnumbered 30 paragraph 1, Code 2026, is amended to read as follows: 31 If the commissioner finds that a person has violated 32 section 523A.201 , 523A.202 , 523A.203 , 523A.204 , 523A.207 , 33 523A.401 , 523A.402 , 523A.403 , 523A.404 , 523A.405 , 523A.501 , 34 523A.502 , 523A.502A , 523A.505 , or 523A.605 , or any rule adopted 35 -4- LSB 5513HV (2) 91 nls/ko 4/ 9

H.F. 2634 pursuant thereto, the commissioner may order any or all of the 1 following: 2 Sec. 11. Section 523I.102, subsections 9, 16, and 45, Code 3 2026, are amended by striking the subsections. 4 Sec. 12. Section 523I.102, Code 2026, is amended by adding 5 the following new subsections: 6 NEW SUBSECTION . 13A. “Government cemetery” means a cemetery 7 that is owned, operated, or controlled by a governmental 8 subdivision. 9 NEW SUBSECTION . 13B. “Governmental subdivision” means a 10 city, county, or township. 11 Sec. 13. Section 523I.102, subsection 37, Code 2026, is 12 amended to read as follows: 13 37. a. “Perpetual care cemetery” includes all of the 14 following: 15 a. (1) Any cemetery that was organized or commenced 16 business in this state on or after July 1, 1995. 17 b. (2) Any cemetery that has established a care fund in 18 compliance with section 523I.810 . 19 c. (3) Any cemetery that represents that it is a perpetual 20 care cemetery in its interment rights agreement. 21 d. (4) Any cemetery that represents in any other manner 22 that the cemetery provides perpetual, permanent, or guaranteed 23 care. 24 b. “Perpetual care cemetery” does not include a government 25 cemetery. 26 Sec. 14. Section 523I.213A, subsection 1, Code 2026, is 27 amended to read as follows: 28 1. The commissioner or the commissioner’s designee may 29 conduct an examination under this chapter of any cemetery as 30 often as the commissioner deems appropriate. If a cemetery 31 has a trust arrangement, the commissioner shall conduct an 32 examination not less than once every five years. 33 Sec. 15. Section 523I.312, subsection 2, paragraph n, Code 34 2026, is amended to read as follows: 35 -5- LSB 5513HV (2) 91 nls/ko 5/ 9

H.F. 2634 n. Include an explanation of regulatory oversight by 1 the insurance division in twelve point boldface type, in 2 substantially the following language: 3 This agreement is subject to rules administered by the Iowa 4 insurance division. You may call contact the Iowa insurance 5 division with inquiries or complaints at (insert telephone 6 number). Written inquiries or complaints should be mailed 7 to: Iowa Securities and Regulated Industries Bureau, (insert 8 address) iid.iowa.gov . 9 Sec. 16. Section 523I.501, Code 2026, is amended to read as 10 follows: 11 523I.501 Cemetery authorized. 12 The governing body of a governmental subdivision may 13 purchase, establish, operate, enclose, improve, or regulate 14 a cemetery. A government cemetery owned or operated by a 15 governmental subdivision may sell interment rights subject to 16 the provisions of this chapter . 17 Sec. 17. Section 523I.801, subsection 1, Code 2026, is 18 amended to read as follows: 19 1. All cemeteries are designated as either “perpetual care 20 cemeteries” , or “nonperpetual care cemeteries” , or “government 21 cemeteries” for the purposes of this chapter . A cemetery that 22 represents that it is offering perpetual care on or after July 23 1, 2005, is subject to this subchapter . This subchapter shall 24 not apply to government cemeteries. 25 Sec. 18. Section 523I.805, subsection 1, Code 2026, is 26 amended to read as follows: 27 1. A cemetery owned or operated by a political subdivision 28 of this state is not required to make a minimum initial deposit 29 in a care fund. Any other cemetery commencing business in this 30 state on or after July 1, 2005, shall not sell interment spaces 31 unless the cemetery has a care fund of at least twenty-five 32 thousand dollars in cash . 33 Sec. 19. Section 523I.810, subsection 1, paragraph f, 34 unnumbered paragraph 1, Code 2026, is amended to read as 35 -6- LSB 5513HV (2) 91 nls/ko 6/ 9

H.F. 2634 follows: 1 If the amount of a care fund exceeds two hundred thousand 2 dollars, the cemetery or any officer, director, agent, 3 employee, or affiliate of the cemetery shall not serve as 4 trustee unless the cemetery is a cemetery owned or operated 5 by a governmental subdivision of this state . A financial 6 institution holding care funds shall not do any of the 7 following: 8 Sec. 20. REPEAL. Sections 523A.502A and 523I.401, Code 9 2026, are repealed. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to preneed sellers, sales agents and sales 14 agent applicants, and government cemeteries. 15 The bill amends Code sections 523A.201(8) (establishment 16 of trust funds), 523A.602(2)(b)(1) (consumer rescission, 17 cancellation, and refund rights —— purchase agreement 18 compliance with other laws), and 523A.602(2)(c) to calculate 19 the rate of inflation by relying on the most recently released 20 consumer price index for all urban consumers published by the 21 United States department of labor, bureau of labor statistics, 22 rather than relying on the inflation as set by the commissioner 23 of insurance (commissioner) based on the consumer price index 24 under current law. 25 The bill eliminates the requirement under current law that 26 if a preneed seller has a trust agreement, the commissioner 27 shall conduct an examination of the preneed seller at least 28 once every five years unless the preneed seller has annually 29 provided to the commissioner a certified copy of an audit 30 conducted by an independent certified public accountant. Under 31 the bill, the commissioner may require a preneed seller to 32 provide a certified copy of an audit of the preneed seller 33 conducted by an independent certified public accountant to 34 verify compliance. 35 -7- LSB 5513HV (2) 91 nls/ko 7/ 9

H.F. 2634 Under the bill, prior to being issued a sales license, an 1 applicant for a sales license must be designated by a preneed 2 seller to sell, negotiate, or solicit purchase agreements 3 on behalf of the preneed seller. At the time the applicant 4 submits their application for a sales license, the preneed 5 seller shall file documentation of the designation for the 6 applicant to sell, negotiate, or solicit purchase agreements 7 on behalf of the preneed seller. A license as a sales agent 8 shall not be issued to an applicant unless they have met all 9 licensure requirements and the insurance division (division) 10 has received a designation by a preneed seller. A preneed 11 seller must disclose to the commissioner changes made to the 12 designation of a sales agent authorized to conduct business on 13 the preneed seller’s behalf within 30 days of a designation 14 change. A sales agent license shall not be effective during 15 a time period in which the sales agent is not employed by or 16 associated with a preneed seller. 17 Under the bill, for a sales agent to renew their license, the 18 sales agent must pay a renewal fee. Payment of a renewal fee is 19 not required under current law. 20 The bill amends Code sections 523A.601(1)(i) (disclosures) 21 and 523I.312(2)(n) (disclosure requirements —— interment 22 agreements) to clarify the manner in which to contact the 23 division by directing inquiries and complaints to the 24 division’s internet site, rather than by telephone or mail 25 under current law. 26 The bill eliminates the requirement that the commissioner 27 or the commissioner’s designee conduct an examination no less 28 than once every five years of any cemetery that has a trust 29 arrangement. 30 Under the bill, all cemeteries under Code chapter 523I (Iowa 31 cemetery Act) are designated as perpetual care cemeteries, 32 nonperpetual care cemeteries, or government cemeteries. 33 “Government cemetery” is defined in the bill. Under the bill, 34 Code chapter 523I, subchapter VIII (perpetual care cemeteries 35 -8- LSB 5513HV (2) 91 nls/ko 8/ 9

H.F. 2634 —— requirements), shall not apply to government cemeteries. 1 Under current law, a cemetery owned or operated by a 2 political subdivision is not required to make a minimum initial 3 deposit in a care fund, and may serve as a trustee. The bill 4 eliminates these exceptions. Current law prohibits a cemetery 5 that commenced business in this state on or after July 1, 2005, 6 from selling interment spaces unless the cemetery has a care 7 fund of at least $25,000 in cash. The bill eliminates the 8 requirement that the care fund be in cash. 9 The bill repeals Code sections 523A.502A (sales agent annual 10 reporting requirements) and 523I.401 (neglected cemeteries), 11 and makes conforming changes to Code sections 22.7(58) and 12 523A.807(3). 13 -9- LSB 5513HV (2) 91 nls/ko 9/ 9