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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 15,2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 2634, an Act relating to preneed sellers, sales agents and sales agent
applicants, and government cemeteries.
The above House File is hereby approved on this date.
Sincerely,
Kim w^vnolds3ynolds
Govemor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 2634
AN ACT
RELATING TO PRENEED SELLERS, SALES AGENTS AND SALES AGENT
APPLICANTS, AND GOVERNMENT CEMETERIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA;
Section 1. Section 22.7, subsection 58, Code 2026, is
amended to read as follows:
58. Information filed with the commissioner of insurance
pursuant to sections 523A.204, 523A.205, 523A.206, 523A.207,
523A,401, 523A,502A, and 523A.803,
Sec. 2. Section 523A.102, subsection 7, Code 2026, is
amended by striking the subsection.
Sec. 3. Section 523A.201, subsection 8, Code 2026, is
amended to read as follows:
8. Interest or income earned on amounts deposited in trust
shall remain in trust under the same terms and conditions
as payments made under the purchase agreement, except that
a seller may withdraw so much of the interest or income as
represents the difference between the amount needed to adjust
the trust funds for inflation as set by the commisaioner based
on the most recently released consumer price index for all
urban consumers published by the United States department
of labor, bureau of labor statistics, and the interest or
income earned during the immediately preceding year not to
exceed fifty percent of the total interest or income on a
calendar-year basis. The early Early withdrawal of interest or
House File 2634, p. 2
income under this provision does subsection shall not affect
the purchaser's right to a credit of such interest or income in
the event of a nonguaranteed price agreement, cancellation, or
nonperformance by such a the seller.
Sec. 4. Section 523A.206, subsection 1, Code 2026, is
amended to read as follows;
1. The commissioner may conduct an examination under
this chapter of any seller as often as the commissioner
deems appropriate. If a oGllor has a trust arrangement,—fe4»e-
commissioner shall conduct an examination of ouch seller doing
business in this state not loss than onco every five years
unless the seller has provided to the commissioner, on an
annual basis, a certified copy of an audit conducted by an
independent certified public accountant verifying compliance
with this chapter. The commissioner may require a seller
to provide a certified copy of an audit of a the seller, or
other person conducted by a an independent certified public
accountant to verify compliance with the requirements of this
chapter, including rules adopted and orders issued pursuant to
this chapter.
Sec. 5. Section 523A.502, subsection 1, Code 2026, is
amended to read as follows:
1. A person shall not advertise, sell, promote, or offer
to furnish cemetery merchandise, funeral merchandise, funeral
services, or a combination thereof when performance or delivery
may be more than one hundred twenty days following initial
payment on the account unless the person has a sales license
and is a sales agent of a person holding a preneed seller's
license. The-
^ A preneed seller licensee is liable for the acts of -i-te
the licensee's sales agents performed in advertising, selling,
promoting, or offering to furnish, upon the future death of
a person named or implied in a purchase agreement, cemetery
merchandise, funeral merchandise, funeral services, or a
combination thereof.
c, (1) Prior to being issued a sales license, an applicant
for a sales license shall be designated by at least one preneed
seller to sell, negotiate, or solicit purchase agreements
on behalf of the preneed seller. At the time an individual
House File 2634, p. 3
submits an application for a sales license, the preneed
seller shall file, in a format approved by the commissioner,
documentation of the designation of the applicant to sell,
negotiate, or solicit purchase agreements on behalf of the
preneed seller,
(2) A sales license shall not be issued to a sales
license applicant until the applicant has met all licensure
requirements of this chapter.
(3) The preneed seller shall disclose to the commissioner
any changes made to the designation for a sales agent to sell,
negotiate, or solicit preneed contracts on the preneed seller^s
behalf within thirty calendar days of the date of the change
in designation.
d. The license of a sales agent shall not be effective
during any time period during which the sales agent is not
employed by or associated with a preneed seller licensed under
this chapter.
Sec. 6. Section 523A.502, subsection 5, Code 2026, is
amended to read as follows:
5. A sales license shall expire annually on April 30. If
a sales agent has filed an annual report pursuant to acction
523A.502A, subsection 1, and has fulfilled the continuing
education requirements pursuant to subsection 6 and has paid
the required renewal fee, the commissioner shall renew the
sales agent's sales license until April 30 of the following
year.
Sec. 7. Section 523A.601, subsection 1, paragraph i. Code
2026, is amended to read as follows:
i. Include an explanation of regulatory oversight by
the insurance division in twelve point boldface type, in
substantially the following language:
This agreement is subject to rules administered by the Iowa
insurance division. You may call contact the Iowa insurance
division with inquiries or complaints at (telephone number),
Written inquiries or complaints should bo mailed to the Iowa
securities and regulated induatrieo bureau,—(street address),
(city) /—Iowa (gip code) iid.iowa.gov.
Sec. 8. Section 523A.602, subsection 2, paragraph b,
subparagraph (1), Code 2026, is amended to read as follows:
House File 2634, p. 4
(1) If a purchase agreement is canceled, a purchaser
requests a transfer of the trust assets upon cancellation of a
purchase agreement, or another seller provides merchandise or
services designated in a purchase agreement, the seller shall
refund or transfer within thirty days of receiving a written
demand no less than the purchase price of the applicable
cemetery merchandise, funeral merchandise, and funeral services
adjusted for inflation, using the most recently released
consumer price index amounts announced by the commissioner
annually for all urban consumers published by the United
States department of labor, bureau of labor statistics, less
any actual expenses incurred by the seller pursuant to the
purchase agreement as set forth in the purchase agreement under
section 523A.601, subsection 1, paragraph The amount of
the actual expenses deducted by the seller shall not exceed
ten percent of the purchase price of the applicable cemetery
merchandise, funeral merchandise, and funeral services. The
seller may also deduct the value of the cemetery merchandise,
funeral merchandise, and funeral services already received by,
delivered to, or warehoused for the purchaser.
Sec. 9. Section 523A.602, subsection 2, paragraph c, Code
2026, is amended to read as follows:
c, A purchase agreement must include a statement that the
purchaser is entitled to a refund of the purchase price of
the applicable funeral merchandise adjusted for inflation,
using the most recently released consumer price index amounts
announced by the commissionGr annually for all urban consumers
published by the United States department of labor, bureau
of labor statistics, for any item of funeral merchandise
that cannot be delivered to the location specified in the
purchase agreement within forty-eight hours of notice of the
individual's death, unless the delay is caused by weather
conditions or a natural disaster. The seller must return such
refund to the purchaser within thirty days of receiving the
written demand.
Sec. 10. Section 523A.807, subsection 3, unnumbered
paragraph 1, Code 2026, is amended to read as follows:
If the commissioner finds that a person has violated
section 523A.201, 523A.202, 523A.203, 523A.204, 523A.207,
House File 2634, p, 5
523A.401, 523A.402, 523A.403, 523A.404, 523A.405, 523A.501,
523A,502, 523A.502A, 523A.505r or 523A.605, or any rule adopted
pursuant thereto, the commissioner may order any or all of the
following;
Sec. 11. Section 5231.102, subsections 9, 16, and 45, Code
2026, are amended by striking the subsections.
Sec. 12. Section 5231.102, Code 2026, is amended by adding
the following new subsections:
NEW SUBSECTION. 13A. "^Government cemetery" means a cemetery
that is owned, operated, or controlled by a governmental
subdivision.
NEW SUBSECTION. 13B. '"''"'Governmental subdivision" means a
city, county, or township.
Sec. 13. Section 5231.102, subsection 37, Code 2026, is
amended to read as follows:
37. aj_ "^Perpetual care cemetery" includes all of the
following:
fiTT (1) Any cemetery that was organized or commenced
business in this state on or after July 1, 1995.
b-r (2) Any cemetery that has established a care fund in
compliance with section 5231.810.
€-r (3) Any cemetery that represents that it is a perpetual
care cemetery in its interment rights agreement.
dir (4) Any cemetery that represents in any other manner
that the cemetery provides perpetual, permanent, or guaranteed
care.
b, "^Perpetual care cemetery" does not include a government
cemetery.
Sec. 14. Section 5231.213A, subsection 1, Code 2026, is
amended to read as follows:
1. The commissioner or the commissioner's designee may
conduct an examination under this chapter of any cemetery as
often as the commissioner deems appropriate. If a CQmctcry
has a trust arrangement,—the commissionor shall conduct an
examination not loss than once every five years.
Sec. 15. Section 5231.312, subsection 2, paragraph n. Code
2026, is amended to read as follows:
77, Include an explanation of regulatory oversight by
the insurance division in twelve point boldface type, in
House File 2634, p. 6
substantially the following language:
This agreement is subject to rules administered by the Iowa
insurance division. You may call contact the Iowa insurance
division with inquiries or complaints at (insert telephone
number) .—Written inquiries or complaints should be mailed
—Iov?a Securities and Regulated Industries Bureau,—(insert
address) iid.iowa.gov.
Sec. 16. Section 5231.501, Code 2026, is amended to read as
follows:
5231.501 Cemetery authorized.
The governing body of a governmental subdivision may
purchase, establish, operate, enclose, improve, or regulate
a cemetery. A government cemetery owned or operated by a
governmental subdivision may sell interment rights subject to
the provisions of this chapter.
Sec. 17. Section 5231.801, subsection 1, Code 2026, is
amended to read as follows:
1. All cemeteries are designated as either '^perpetual care
cemeteries''j_ "^nonperpetual care cemeteries^^, or "^government
cemeteries^^ for the purposes of this chapter. A cemetery that
represents that it is offering perpetual care on or after July
1, 2005, is subject to this subchapter. This subchapter shall
not apply to government cemeteries.
Sec. 18. Section 5231.805, subsection 1, Code 2026, is
amended to read as follows:
1. A cemetery owned or operated by a political aubdiviaion
of this state is not required to make a minimum initial deposit
in a care fund.—Any other cemetery commencing business in this
state on or after July 1, 2005, shall not sell interment spaces
unless the cemetery has a care fund of at least twenty-five
thousand dollars in cash.
Sec. 19. Section 5231.810, subsection 1, paragraph f,
unnumbered paragraph 1, Code 2026, is amended to read as
follows:
If the amount of a care fund exceeds two hundred thousand
dollars, the cemetery or any officer, director, agent,
employee, or affiliate of the cemetery shall not serve as
trustee unlcaa the ccmctory ia a cemetery owned or operated
by a govornmcntal aubdiviaion of this state. A financial
House Pile 2634, p. 7
institution holding care funds shall not do any of the
following;
Sec. 20. REPEAL. Sections 523A,502A and 5231.401, Code
2026, are repealed.
PAT GRASSLEY
Speaker of bfie House
AMY SINCr^IR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2634, Ninety-first General Assembly.
Approved
MEGHAN NELSON
Chief aierk o^the House
2026
KIM R^NOLDS
Governor
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