Bill Text: IA HF632 | 2015-2016 | 86th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to various matters involving insurance and the insurance division of the department of commerce and including effective date provisions. Effective 7-2-15, with exception of section 3, effective 1-1-16.

Spectrum: Committee Bill

Status: (Passed) 2015-07-02 - Signed by Governor. H.J. 1187. [HF632 Detail]

Download: Iowa-2015-HF632-Amended.html

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House File 632 - Reprinted




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 454)
                                 (SUCCESSOR TO HSB 139)
       (As Amended and Passed by the House April 21, 2015)

                                      A BILL FOR

  1 An Act relating to various matters involving insurance and
  2    the insurance division of the department of commerce and
  3    including effective date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    HF 632 (3) 86
    av/nh/md

PAG LIN



  1  1    Section 1.  Section 22.7, subsection 58, Code 2015, is
  1  2 amended to read as follows:
  1  3    58.  Information filed with the commissioner of insurance
  1  4 pursuant to sections 523A.204 and, 523A.205, 523A.206,
  1  5 523A.207, 523A.401, 523A.502A, and 523A.803.
  1  6    Sec. 2.  Section 502.103, Code 2015, is amended to read as
  1  7 follows:
  1  8    502.103  References to federal statutes.
  1  9 "Securities Act of 1933", 15 U.S.C. {77a et seq.; "Securities
  1 10 Exchange Act of 1934", 15 U.S.C. {78a et seq.; "Public Utility
  1 11 Holding Company Act of 1935", 15 U.S.C. {79 et seq.; "Investment
  1 12 Company Act of 1940", 15 U.S.C. {80a=1 et seq.; "Investment
  1 13 Advisers Act of 1940", 15 U.S.C. {80b=1 et seq.; "Employee
  1 14 Retirement Income Security Act of 1974", 29 U.S.C. {1001 et
  1 15 seq.; "National Housing Act", 12 U.S.C. {1701; "Commodity
  1 16 Exchange Act", 7 U.S.C. {1 et seq.; "Internal Revenue Code",
  1 17 26 U.S.C. {1 et seq.; "Securities Investor Protection Act
  1 18 of 1970", 15 U.S.C. {78aaa et seq.; "Securities Litigation
  1 19 Uniform Standards Act of 1998", 112 Stat. 3227; "Small Business
  1 20 Investment Act of 1958", 15 U.S.C. {661 et seq.; and "Electronic
  1 21 Signatures in Global and National Commerce Act", 15 U.S.C.
  1 22 {7001 et seq.; and "Dodd=Frank Wall Street Reform and Consumer
  1 23 Protection Act", Pub. L. No. 111=203 mean those federal statutes
  1 24 and the rules and regulations adopted under those federal
  1 25 statutes, as in effect on January 1, 2005 2015.
  1 26    Sec. 3.  Section 502.202, Code 2015, is amended by adding the
  1 27 following new subsection:
  1 28    NEW SUBSECTION.  24.  Intrastate crowdfunding.
  1 29    a.  Definitions.  As used in this subsection, unless the
  1 30 context otherwise requires:
  1 31    (1)  "Intermediary" means a broker=dealer that is subject
  1 32 to the registration requirements of section 502.401 and that
  1 33 facilitates the offer and sale of securities by issuers to
  1 34 investors through an internet=based system that is open to
  1 35 and accessible by the general public.  "Intermediary" also
  2  1 means an entity registered with the administrator as an Iowa
  2  2 crowdfunding portal.
  2  3    (2)  "Intrastate crowdfunding" means the offer or sale of a
  2  4 security by an issuer in a transaction that is available for
  2  5 purchase only by Iowa residents and by business organizations
  2  6 located in, and organized and registered under the laws of,
  2  7 this state.
  2  8    (3)  "Iowa crowdfunding portal" means an entity incorporated
  2  9 or organized under the laws of this state, authorized to do
  2 10 business in this state, and engaged exclusively in intrastate
  2 11 crowdfunding offers and sales of exempt securities in this
  2 12 state through an internet site and which does not operate or
  2 13 facilitate a secondary market in securities.
  2 14    b.  Exemption not available.  The exemption in this
  2 15 subsection is not available to any of the following:
  2 16    (1)  A foreign issuer.
  2 17    (2)  An investment company, as defined in section 3 of the
  2 18 federal Investment Company Act of 1940.
  2 19    (3)  A development stage company that either has no specific
  2 20 business plan or purpose or has indicated that the company's
  2 21 business plan is to engage in a merger or acquisition with an
  2 22 unidentified company or companies, or other entity or person.
  2 23    (4)  A company with a class of securities registered under
  2 24 the federal Securities Exchange Act of 1934.
  2 25    (5)  Any person who is subject to a disqualifying event as
  2 26 described in the regulations adopted in accordance with section
  2 27 926 of the federal Dodd=Frank Wall Street Reform and Consumer
  2 28 Protection Act, Pub. L. No. 111=203, or in rules adopted by the
  2 29 administrator pursuant to chapter 17A.
  2 30    c.  Aggregate sales limit.  The aggregate amount of
  2 31 securities sold to all investors by the issuer during the
  2 32 twelve=month period preceding the date of the offer or sale,
  2 33 including any amount sold in reliance upon the exemption in
  2 34 this subsection, shall not exceed one million dollars other
  2 35 than either of the following:
  3  1    (1)  Securities sold to Iowa resident institutional
  3  2 investors.
  3  3    (2)  Securities sold to the Iowa resident issuer's
  3  4 management.
  3  5    d.  Individual sales limit.  The aggregate amount of
  3  6 securities sold to an investor by the issuer during the
  3  7 twelve=month period preceding the date of the offer or sale,
  3  8 including any amount sold in reliance upon the exemption in
  3  9 this subsection, shall not exceed five thousand dollars unless
  3 10 the investor is an accredited investor who resides in Iowa.
  3 11 For purposes of this individual sales limit, the following
  3 12 investors shall be treated as one investor:
  3 13    (1)  A relative, spouse, or relative of the spouse of an
  3 14 investor who has the same principal residence as the investor.
  3 15    (2)  A trust or estate in which an investor and any related
  3 16 person collectively have more than fifty percent of the
  3 17 beneficial interest, excluding contingent interests.
  3 18    (3)  A corporation or other organization of which an investor
  3 19 and any related person collectively are beneficial owners of
  3 20 more than fifty percent of the equity securities, excluding
  3 21 directors' qualifying shares, or equity interests.
  3 22    e.  Use of an intermediary.  All offers and sales of
  3 23 securities made in reliance upon the exemption in this
  3 24 subsection shall be made through an intermediary's internet
  3 25 site.
  3 26    f.  Notice to administrator.  Prior to the offer of any
  3 27 security in this state made in reliance upon the exemption
  3 28 in this subsection, the issuer shall file a notice with
  3 29 the administrator in a form and format approved by the
  3 30 administrator, and including the filing fee specified by rule,
  3 31 if any.
  3 32    g.  Rulemaking.  The administrator shall adopt all rules
  3 33 necessary to implement the exemption in this subsection
  3 34 including but not limited to all of the following:
  3 35    (1)  Mandatory disclosures.
  4  1    (2)  Restrictions on advertising and communications.
  4  2    (3)  Target amount, offering period, and escrow
  4  3 requirements.
  4  4    (4)  Use and compensation of promoters.
  4  5    (5)  Restrictions on the sale of securities purchased under
  4  6 the exemption in this subsection.
  4  7    (6)  Sales reports.
  4  8    (7)  Limitations on the offering price.
  4  9    (8)  Duties of an intermediary which shall include providing
  4 10 the administrator with continuous investor=level access to the
  4 11 intermediary's internet site.
  4 12    (9)  Records maintenance.
  4 13    (10)  Duties and registration requirements for internet site
  4 14 operators.
  4 15    Sec. 4.  Section 502.302, subsection 1, paragraph a,
  4 16 subparagraph (1), Code 2015, is amended to read as follows:
  4 17    (1)  A person who is the issuer of a federal covered
  4 18 security under section 18(b)(2) of the Securities Act of
  4 19 1933 shall initially make a notice filing and annually renew
  4 20 a notice filing in this state for an indefinite amount or a
  4 21 fixed amount. The fixed amount must be for two hundred fifty
  4 22 thousand dollars.
  4 23    Sec. 5.  Section 502.302, subsection 1, paragraph a,
  4 24 subparagraph (2), unnumbered paragraph 1, Code 2015, is amended
  4 25 to read as follows:
  4 26    A notice filer shall pay a filing fee in the amount of
  4 27 four hundred dollars when the notice is filed. If the amount
  4 28 covered by the notice is indefinite, the notice filer shall pay
  4 29 a filing fee of one thousand dollars. If the amount covered by
  4 30 the notice is fixed, the notice filer shall pay a filing fee
  4 31 of two hundred fifty dollars, and all of the following shall
  4 32 apply:
  4 33    Sec. 6.  Section 502.302, subsection 1, paragraph a,
  4 34 subparagraph (2), subparagraph divisions (a) and (b), Code
  4 35 2015, are amended by striking the subparagraph divisions.
  5  1    Sec. 7.  Section 502.302, subsections 2 and 3, Code 2015, are
  5  2 amended to read as follows:
  5  3    2.  Notice filing effectiveness and renewal.  A notice filing
  5  4 under subsection 1 is effective for one year commencing on
  5  5 the later of the notice filing or the effectiveness of the
  5  6 offering filed with the securities and exchange commission.
  5  7 On or before expiration, the issuer may renew a notice filing
  5  8 by filing a copy of those records filed by the issuer with
  5  9 the securities and exchange commission that are required by
  5 10 rule or order under this chapter to be filed and by paying
  5 11 the a renewal fee required by subsection 1, paragraph "a" of
  5 12 four hundred dollars. A previously filed consent to service
  5 13 of process complying with section 502.611 may be incorporated
  5 14 by reference in a renewal. A renewed notice filing becomes
  5 15 effective upon the expiration of the filing being renewed.
  5 16    3.  Notice filings for federal covered securities under
  5 17 section 18(b)(4)(D).  With respect to a security that is a
  5 18 federal covered security under section 18(b)(4)(D) of the
  5 19 Securities Act of 1933, 15 U.S.C. {77r(b)(4)(D), a rule under
  5 20 this chapter may require a notice filing by or on behalf of an
  5 21 issuer to include a copy of form D, including the appendix, as
  5 22 promulgated by the securities and exchange commission, and a
  5 23 consent to service of process complying with section 502.611
  5 24 signed by the issuer not later than fifteen days after the
  5 25 first sale of the federal covered security in this state and
  5 26 the payment of a fee of one hundred dollars; and the payment of
  5 27 a fee of two hundred fifty dollars for any late filing.
  5 28    Sec. 8.  Section 502.412, subsection 9, Code 2015, is amended
  5 29 to read as follows:
  5 30    9.  Limit on investigation or proceeding.  The administrator
  5 31 shall not institute a proceeding under subsection 1, 2,
  5 32 or 3 based solely on material facts actually known by the
  5 33 administrator unless an investigation or the proceeding is
  5 34 instituted within one year two years after the administrator
  5 35 actually acquires knowledge of the material facts.
  6  1    Sec. 9.  Section 505.26, Code 2015, is amended by adding the
  6  2 following new subsection:
  6  3    NEW SUBSECTION.  7.  a.  If a health carrier or pharmacy
  6  4 benefits manager fails to use or accept the prior authorization
  6  5 form that has been approved for use by the health carrier
  6  6 or pharmacy benefits manager pursuant to this section,  or
  6  7 to respond to a health care provider's request for prior
  6  8 authorization of prescription drug benefits within seventy=two
  6  9 hours of the health care provider's submission of the form,
  6 10 the request for prior authorization shall be considered to be
  6 11 approved.
  6 12    b.  However, if the prior authorization request is incomplete
  6 13 or additional information is required, the health carrier
  6 14 or pharmacy benefits manager may request the additional
  6 15 information within the seventy=two=hour period and once the
  6 16 additional information is submitted the provisions of paragraph
  6 17 "a" shall again apply.
  6 18    c.  Notwithstanding paragraphs "a" and "b", the commissioner
  6 19 may develop, by rule, minimum time periods for a health carrier
  6 20 or pharmacy benefits manager to respond to a health care
  6 21 provider's request for prior authorization of prescription drug
  6 22 benefits or for additional information, that are less than, but
  6 23 in no case exceed seventy=two hours, as the commissioner deems
  6 24 appropriate under the circumstances.
  6 25    Sec. 10.  Section 511.8, subsection 5, paragraphs a and b,
  6 26 Code 2015, are amended to read as follows:
  6 27    a.  (1)  If fixed interest=bearing obligations, the net
  6 28 earnings of the issuing, assuming, or guaranteeing corporation
  6 29 available for its fixed charges for a period of five fiscal
  6 30 years next preceding the date of acquisition of the obligations
  6 31 by such insurance company shall have averaged per year not
  6 32 less than one and one=half times such average annual fixed
  6 33 charges of the issuing, assuming, or guaranteeing corporation
  6 34 applicable to such period, and, during at least one of the last
  6 35 two years of such period, its net earnings shall have been
  7  1 not less than one and one=half times its fixed charges for
  7  2 such year; or if, at the date of acquisition, the obligations
  7  3 are adequately secured and have investment qualities and
  7  4 characteristics wherein the speculative elements are not
  7  5 predominant investment grade as defined by the commissioner by
  7  6 rule.
  7  7    (2)  However, with respect to fixed interest=bearing
  7  8 obligations which are issued, assumed, or guaranteed by a
  7  9 financial company, the net earnings by the financial company
  7 10 available for its fixed charges for the period of five fiscal
  7 11 years preceding the date of acquisition of the obligations by
  7 12 the insurance company shall have averaged per year not less
  7 13 than one and one=fourth times such average annual fixed charges
  7 14 of the issuing, assuming, or guaranteeing financial company
  7 15 applicable to such period, and, during at least one of the last
  7 16 two years of the period, its net earnings shall have been not
  7 17 less than one and one=fourth times its fixed charges for such
  7 18 year; or if, at the date of acquisition, the obligations are
  7 19 adequately secured and speculative elements are not predominant
  7 20 in their investment qualities and characteristics investment
  7 21 grade as defined by the commissioner by rule. As used in
  7 22 this subparagraph (2), "financial company" means a corporation
  7 23 which on the average over its last five fiscal years preceding
  7 24 the date of acquisition of its obligations by the insurer,
  7 25 has had at least fifty percent of its net income, including
  7 26 income derived from subsidiaries, derived from the business
  7 27 of wholesale, retail, installment, mortgage, commercial,
  7 28 industrial or consumer financing, or from banking or factoring,
  7 29 or from similar or related lines of business.
  7 30    b.  If adjustment, income, or other contingent interest
  7 31 obligations, the net earnings of the issuing, assuming, or
  7 32 guaranteeing corporation available for its fixed charges
  7 33 for a period of five fiscal years next preceding the date
  7 34 of acquisition of the obligations by such insurance company
  7 35 shall have averaged per year not less than one and one=half
  8  1 times such average annual fixed charges of the issuing,
  8  2 assuming, or guaranteeing corporation and its average annual
  8  3 maximum contingent interest applicable to such period and,
  8  4 during at least one of the last two years of such period, its
  8  5 net earnings shall have been not less than one and one=half
  8  6 times the sum of its fixed charges and maximum contingent
  8  7 interest for such year, or if, at the date of acquisition,
  8  8 the obligations are adequately secure and have investment
  8  9 qualities and characteristics and speculative elements are not
  8 10 predominant investment grade as defined by the commissioner by
  8 11 rule.
  8 12    Sec. 11.  Section 511.8, subsection 6, paragraph a,
  8 13 subparagraph (1), subparagraph division (b), unnumbered
  8 14 paragraph 1, Code 2015, is amended to read as follows:
  8 15    The net earnings available for fixed charges and preferred
  8 16 dividends of the issuing corporation shall have been, for
  8 17 each of the five fiscal years immediately preceding the date
  8 18 of acquisition, not less than one and one=half times the sum
  8 19 of the annual fixed charges and contingent interest, if any,
  8 20 and the annual preferred dividend requirements as of the date
  8 21 of acquisition; or at the date of acquisition the preferred
  8 22 stock has is investment qualities and characteristics wherein
  8 23 speculative elements are not predominant grade as defined by
  8 24 the commissioner by rule.
  8 25    Sec. 12.  Section 511.8, subsection 8, unnumbered paragraph
  8 26 1, Code 2015, is amended to read as follows:
  8 27    Securities included under subsections 5, 6, and 7, and
  8 28 subsection 9, paragraph "h", shall not be eligible:
  8 29    Sec. 13.  Section 511.8, subsection 8, paragraph b,
  8 30 unnumbered paragraph 1, Code 2015, is amended to read as
  8 31 follows:
  8 32    The investments of any company or association in such the
  8 33  securities of a corporation shall not be eligible in excess of
  8 34  exceed the following percentages of the legal reserve of such
  8 35 company or association:
  9  1    Sec. 14.  Section 511.8, subsection 8, paragraph b,
  9  2 subparagraphs (1) and (2), Code 2015, are amended to read as
  9  3 follows:
  9  4    (1)  With the exception of public securities For any one
  9  5 corporation other than a public utility company, two percent
  9  6 of the legal reserve in the securities of any one corporation.
  9  7 Five For any one public utility company, five percent of the
  9  8 legal reserve in the securities of any one public utility
  9  9 corporation.
  9 10    (2)  Seventy=five percent of the legal reserve in the
  9 11 securities described in subsection 5 issued by other than
  9 12 public utility corporations. Fifty percent of the legal
  9 13 reserve in the For securities described in subsection 5 issued
  9 14 by public utility corporations companies, fifty percent of the
  9 15 legal reserve.
  9 16    Sec. 15.  Section 511.8, subsection 9, Code 2015, is amended
  9 17 by adding the following new paragraph:
  9 18    NEW PARAGRAPH.  h.  Mezzanine real estate loans subject to
  9 19 the following conditions:
  9 20    (1)  The terms of the mezzanine real estate loan agreement
  9 21 shall do all of the following:
  9 22    (a)  Require that each pledgor abstain from granting
  9 23 additional security interests in the equity interest pledged.
  9 24    (b)  Set forth techniques to minimize the likelihood or
  9 25 impact of a bankruptcy filing on the part of the real estate
  9 26 owner or the mezzanine real estate loan borrower consistent
  9 27 with the national association of insurance commissioners'
  9 28 accounting practices and procedures manual.
  9 29    (c)  Require the real estate owner or mezzanine real estate
  9 30 loan borrower to do all of the following:
  9 31    (i)  Hold no assets other than, in the case of the real
  9 32 estate owner, the real property, and in the case of the
  9 33 mezzanine real estate loan borrower, the equity interest of the
  9 34 real estate owner.
  9 35    (ii)  Not engage in any business other than, in the case
 10  1 of the real estate owner, the ownership and operation of the
 10  2 real estate, and in the case of the mezzanine real estate loan
 10  3 borrower, holding an ownership interest in the real estate
 10  4 owner.
 10  5    (iii)  Not incur additional debt, other than limited trade
 10  6 payables, a first mortgage loan, or mezzanine real estate
 10  7 loans.
 10  8    (2)  At the time of purchase, the sum of the first mortgage
 10  9 and the mezzanine real estate loans shall not exceed ninety
 10 10 percent of the value of the real estate evidenced by a
 10 11 current appraisal and the mezzanine real estate loan shall be
 10 12 classified as CM4 or better in accordance with the national
 10 13 association of insurance commissioners' rating methodology, or
 10 14 an equivalent or successor rating.
 10 15    (3)  The value of a company's or association's total
 10 16 investments qualified under this paragraph "h" shall not exceed
 10 17 three percent of the legal reserve subject to the following
 10 18 conditions:
 10 19    (a)  The value of a company's or association's total
 10 20 investments qualified under this paragraph "h" in mezzanine
 10 21 real estate loans classified as CM3 in accordance with the
 10 22 national association of insurance commissioners' rating
 10 23 methodology or an equivalent or successor rating at the time of
 10 24 purchase shall not exceed two percent of the legal reserve.
 10 25    (b)  The value of a company's or association's total
 10 26 investments qualified under this paragraph "h" in mezzanine
 10 27 real estate loans classified as CM4 in accordance with the
 10 28 national association of insurance commissioners' rating
 10 29 methodology or an equivalent or successor rating at the time of
 10 30 purchase shall not exceed one percent of the legal reserve.
 10 31    (4)  For purposes of this paragraph "h", "mezzanine real
 10 32 estate loan" means a loan secured by a pledge of a direct or
 10 33 indirect equity interest in an entity that owns real estate.
 10 34    Sec. 16.  Section 511.8, subsection 13, Code 2015, is amended
 10 35 to read as follows:
 11  1    13.  Collateral loans.  Loans secured by collateral
 11  2 consisting of any securities assets or investments qualified in
 11  3  under this section, provided the amount of the loan is not in
 11  4 excess of ninety percent of the value of the securities assets
 11  5 or investments. Provided further that subsection 8 shall apply
 11  6 to the collateral securities assets or investments pledged
 11  7 to the payment of loans authorized in qualified under this
 11  8 subsection.
 11  9    Sec. 17.  Section 511.8, subsection 18, paragraph a, Code
 11 10 2015, is amended to read as follows:
 11 11    a.  (1)  Common stocks, or shares, or equity interests issued
 11 12 by solvent corporations or institutions are eligible if the
 11 13 total investment in the common stocks, or shares in, or equity
 11 14 interests of the corporations or institutions does not exceed
 11 15 ten percent of legal reserve, provided not more than one=half
 11 16 percent of the legal reserve is invested in common stocks,
 11 17  or shares, or equity interests of any one corporation or
 11 18 institution. However, the not more than four percent of legal
 11 19 reserve shall be invested in common stocks, or shares shall be
 11 20  , or equity interests which do not meet one of the following
 11 21 requirements:
 11 22    (a)  Are listed or admitted to trading on an established
 11 23 foreign securities exchange or a securities exchange in the
 11 24 United States or shall be.
 11 25    (b)  Are publicly held and traded in the "over=the=counter
 11 26 market" and, provided that market quotations shall be readily
 11 27 available, and further, the investment.
 11 28    (2)  An investment in common stocks, shares, or equity
 11 29 interests shall not create a conflict of interest for an
 11 30 officer or director of the company between the insurance
 11 31 company and the corporation whose common stocks, or shares, or
 11 32 equity interests are purchased.
 11 33    Sec. 18.  Section 511.8, subsection 20, paragraph b, Code
 11 34 2015, is amended to read as follows:
 11 35    b.  For purposes of this subsection, "venture capital
 12  1 fund" means a corporation, partnership, proprietorship, or
 12  2 other entity formed under the laws of the United States, or
 12  3 a state, district, or territory of the United States, whose
 12  4 principal business is or will be the making of investments in,
 12  5 and the provision of significant managerial assistance to,
 12  6 small businesses which meet the small business administration
 12  7 definition of small business. "Equity interests" means limited
 12  8 partnership interests and other equity interests in which
 12  9 liability is limited to the amount of the investment, but does
 12 10 not mean general partnership interests or other interests
 12 11 involving general liability. "Venture capital fund" includes an
 12 12 equity interest in the Iowa fund of funds as defined in section
 12 13 15E.62 and an equity interest in an innovation fund as defined
 12 14 in section 15E.52.
 12 15    Sec. 19.  Section 511.8, subsection 22, paragraphs c and d,
 12 16 Code 2015, are amended to read as follows:
 12 17    c.  Investments in financial instruments used in hedging
 12 18 transactions are not eligible in excess of two percent of
 12 19 the legal reserve in the financial instruments of any one
 12 20 corporation, less any securities of that corporation owned
 12 21 by the company or association and in which its legal reserve
 12 22 is invested, except insofar as the financial instruments are
 12 23 collateralized by cash, United States government obligations
 12 24 as authorized by subsection 1, or obligations of or guaranteed
 12 25 by a United States government=sponsored enterprise which on
 12 26 the date they are pledged as collateral are adequately secured
 12 27 and have investment qualities and characteristics wherein the
 12 28 speculative elements are not predominant investment grade as
 12 29 defined by the commissioner by rule, which are deposited with a
 12 30 custodian bank as defined in subsection 21, and held under a
 12 31 written agreement with the custodian bank that complies with
 12 32 subsection 21 and provides for the proceeds of the collateral,
 12 33 subject to the terms and conditions of the applicable
 12 34 collateral or other credit support agreement, to be remitted to
 12 35 the legal reserve deposit of the company or association and to
 13  1 vest in the state in accordance with section 508.18 whenever
 13  2 proceedings under that section are instituted.
 13  3    d.  Investments in financial instruments used in hedging
 13  4 transactions are not eligible in excess of ten percent of the
 13  5 legal reserve, except insofar as the financial instruments are
 13  6 collateralized by cash, United States government obligations
 13  7 as authorized by subsection 1, or obligations of or guaranteed
 13  8 by a United States government=sponsored enterprise which on
 13  9 the date they are pledged as collateral are adequately secured
 13 10 and have investment qualities and characteristics wherein the
 13 11 speculative elements are not predominant investment grade as
 13 12 defined by the commissioner by rule, which are deposited with a
 13 13 custodian bank as defined in subsection 21, and held under a
 13 14 written agreement with the custodian bank that complies with
 13 15 subsection 21 and provides for the proceeds of the collateral,
 13 16 subject to the terms and conditions of the applicable
 13 17 collateral or other credit support agreement, to be remitted to
 13 18 the legal reserve deposit of the company or association and to
 13 19 vest in the state in accordance with section 508.18 whenever
 13 20 proceedings under that section are instituted.
 13 21    Sec. 20.  Section 511.8, subsection 22, paragraph e,
 13 22 subparagraph (1), Code 2015, is amended to read as follows:
 13 23    (1)  Investments in financial instruments of foreign
 13 24 governments or foreign corporate obligations, other than
 13 25 Canada, used in hedging transactions shall be included
 13 26 in the limitation contained in subsection 19 that allows
 13 27 only twenty percent of the legal reserve of the company or
 13 28 association to be invested in such foreign investments, except
 13 29 insofar as the financial instruments are collateralized by
 13 30 cash, United States government obligations as authorized by
 13 31 subsection 1, or obligations of or guaranteed by a United
 13 32 States government=sponsored enterprise which on the date
 13 33 they are pledged as collateral are adequately secured and
 13 34 have investment qualities and characteristics wherein the
 13 35 speculative elements are not predominant investment grade as
 14  1 defined by the commissioner by rule, which are deposited with a
 14  2 custodian bank as defined in subsection 21, and held under a
 14  3 written agreement with the custodian bank that complies with
 14  4 subsection 21 and provides for the proceeds of the collateral,
 14  5 subject to the terms and conditions of the applicable
 14  6 collateral or other credit support agreement, to be remitted to
 14  7 the legal reserve deposit of the company or association and to
 14  8 vest in the state in accordance with section 508.18 whenever
 14  9 proceedings under that section are instituted.
 14 10    Sec. 21.  Section 514G.102, Code 2015, is amended to read as
 14 11 follows:
 14 12    514G.102  Scope.
 14 13    The requirements of this chapter apply to policies delivered
 14 14 or issued for delivery in this state on or after July 1, 2008.
 14 15 The requirements of this chapter related to independent review
 14 16 of benefit trigger determinations apply to all claims made on
 14 17 or after January 1, 2009.  The requirements of this chapter
 14 18 related to prompt payment of claims and the payment of interest
 14 19 apply to all long=term care insurance policies. This chapter
 14 20 is not intended to supersede the obligations of entities
 14 21 subject to this chapter to comply with the substance of other
 14 22 applicable insurance laws not in conflict with this chapter,
 14 23 except that laws and regulations designed and intended to apply
 14 24 to Medicare supplement insurance policies shall not be applied
 14 25 to long=term care insurance.
 14 26    Sec. 22.  Section 515.35, subsection 4, paragraph m, Code
 14 27 2015, is amended to read as follows:
 14 28    m.  Venture capital funds.  Shares or equity interests in
 14 29 venture capital funds which agree to invest an amount equal to
 14 30 at least fifty percent of the investments by a company in small
 14 31 businesses having their principal offices within this state and
 14 32 having either more than one=half of their assets within this
 14 33 state or more than one=half of their employees employed within
 14 34 this state. A company shall not invest more than five percent
 14 35 of its capital and surplus under this paragraph. For purposes
 15  1 of this paragraph, "venture capital fund" means a corporation,
 15  2 partnership, proprietorship, or other entity formed under the
 15  3 laws of the United States, or a state, district, or territory
 15  4 of the United States, whose principal business is or will be
 15  5 the making of investments in, and the provision of significant
 15  6 managerial assistance to, small businesses which meet the small
 15  7 business administration definition of small business. "Equity
 15  8 interests" means limited partnership interests and other equity
 15  9 interests in which liability is limited to the amount of the
 15 10 investment, but does not mean general partnership interests or
 15 11 other interests involving general liability. "Venture capital
 15 12 fund" includes an equity interest in the Iowa fund of funds
 15 13 as defined in section 15E.62 and an equity interest in an
 15 14 innovation fund as defined in section 15E.52.
 15 15    Sec. 23.  Section 515.125, subsection 2, Code 2015, is
 15 16 amended to read as follows:
 15 17    2.  An insurer shall not fail to renew a policy except by
 15 18 notice to the insured as provided in this chapter. A notice
 15 19 of intention not to renew is not effective unless mailed or
 15 20 delivered by the insurer to the named insured at least thirty
 15 21 days prior to the expiration date of the policy. A notice
 15 22 of intention not to renew is not required if the insured is
 15 23 transferred from an insurer to an affiliate for future coverage
 15 24 as a result of a merger, acquisition, or company restructuring
 15 25 and if the transfer results in the same or broader coverage
 15 26  insurance company admitted in Iowa which is an affiliate of, as
 15 27 defined in section 521A.1, the transferring insurer and all of
 15 28 the following conditions are met:
 15 29    a.  The transfer does not result in an interruption in
 15 30 coverage.
 15 31    b.  The rating of the affiliate from the A.M. Best company or
 15 32 a substitute rating service acceptable to the commissioner, is
 15 33 the same or better than the rating of the transferring insurer.
 15 34    c.  The transfer results in the same or broader coverage.
 15 35    d.  Notice of the transfer is delivered to the insured or
 16  1 sent by first class mail to the insured's last known address
 16  2 not less than thirty days prior to the transfer.  The notice
 16  3 required by this paragraph is not required in the event that
 16  4 the insured requests or consents to the transfer.
 16  5    e.  The notice of transfer provides the name and telephone
 16  6 number of the insured's insurance producer, agent, or agency,
 16  7 if any.
 16  8    Sec. 24.  Section 515.128, subsection 3, Code 2015, is
 16  9 amended to read as follows:
 16 10    3.  This section applies to all forms of commercial property
 16 11 and casualty insurance written pursuant to this chapter. It
 16 12 does not apply if the insurer has offered to renew or if the
 16 13 insured fails to pay a premium due or any advance premium
 16 14 required by the insurer for renewal. A notice of nonrenewal
 16 15 is not required if the insured is transferred from an insurer
 16 16 to an affiliate for future coverage as a result of a merger,
 16 17 acquisition, or company restructuring and if the transfer
 16 18 results in the same or broader coverage insurance company
 16 19 admitted in Iowa which is an affiliate of, as defined in
 16 20 section 521A.1, the transferring insurer and all of the
 16 21 following conditions are met:
 16 22    a.  The transfer does not result in an interruption in
 16 23 coverage.
 16 24    b.  The rating of the affiliate from the A.M. Best company or
 16 25 a substitute rating service acceptable to the commissioner, is
 16 26 the same or better than the rating of the transferring insurer.
 16 27    c.  The transfer results in the same or broader coverage.
 16 28    d.  Notice of the transfer is delivered to the insured or
 16 29 sent by first class mail to the insured's last known address
 16 30 not less than forty=five days prior to the transfer.  The
 16 31 notice required by this paragraph is not required in the event
 16 32 that the insured requests or consents to the transfer.
 16 33    e.  The notice of transfer provides the name and telephone
 16 34 number of the insured's insurance producer, agent, or agency,
 16 35 if any.
 17  1    Sec. 25.  Section 521A.5, subsection 4, paragraph d, Code
 17  2 2015, is amended to read as follows:
 17  3    d.  The board of directors of a domestic insurer shall
 17  4 establish one or more committees comprised solely of directors
 17  5 who or other persons appointed by the board, the majority of
 17  6 whom are not officers or employees of the insurer or of any
 17  7 entity controlling, controlled by, or under common control with
 17  8 the insurer and who are not beneficial owners of a controlling
 17  9 interest in the voting stock of the insurer or any such entity.
 17 10 The committee or committees shall have responsibility for
 17 11 recommending or nominating candidates for director for election
 17 12 by shareholders or policyholders, evaluating the performance
 17 13 of officers deemed to be principal officers of the insurer,
 17 14 and recommending to the board of directors the selection and
 17 15 compensation of the principal officers.
 17 16    Sec. 26.  Section 523A.102, subsection 8, Code 2015, is
 17 17 amended by striking the subsection.
 17 18    Sec. 27.  Section 523A.204, subsection 3, Code 2015, is
 17 19 amended to read as follows:
 17 20    3.  All records maintained by the commissioner under this
 17 21 section shall be confidential pursuant to section 22.7,
 17 22 subsection 58, and shall not be made available for inspection
 17 23 or copying except upon the approval of the commissioner or the
 17 24 attorney general, or except when sought by the preneed seller
 17 25 to whom the records relate.  Such records shall be privileged
 17 26 and confidential in any judicial or administrative proceeding
 17 27 except any of the following:
 17 28    a.  An action commenced by the commissioner.
 17 29    b.  An administrative proceeding brought by the insurance
 17 30 division.
 17 31    c.  An action or proceeding which arises out of the criminal
 17 32 provisions of the laws of this state or of the United States.
 17 33    d.  An action brought by the insurance division or
 17 34 the attorney general to recover moneys for embezzlement,
 17 35 misappropriation, or misuse of trust funds.
 18  1    Sec. 28.  Section 523A.204, subsections 4 and 5, Code 2015,
 18  2 are amended by striking the subsections.
 18  3    Sec. 29.  Section 523A.205, subsection 2, Code 2015, is
 18  4 amended by striking the subsection.
 18  5    Sec. 30.  Section 523A.205, subsection 3, Code 2015, is
 18  6 amended to read as follows:
 18  7    3.  Notwithstanding chapter 22, all All records maintained
 18  8 by the commissioner under this section shall be confidential
 18  9 pursuant to section 22.7, subsection 58, and shall not be made
 18 10 available for inspection or copying except upon approval of the
 18 11 commissioner or the attorney general, or except when sought by
 18 12 the financial institution to whom the records relate.  Such
 18 13 records shall be privileged and confidential in any judicial or
 18 14 administrative proceeding except any of the following:
 18 15    a.  An action commenced by the commissioner.
 18 16    b.  An administrative proceeding brought by the insurance
 18 17 division.
 18 18    c.  An action or proceeding which arises out of the criminal
 18 19 provisions of the laws of this state or of the United States.
 18 20    d.  An action brought by the insurance division or
 18 21 the attorney general to recover moneys for embezzlement,
 18 22 misappropriation, or misuse of trust funds.
 18 23    Sec. 31.  Section 523A.206, subsection 6, Code 2015, is
 18 24 amended by striking the subsection and inserting in lieu
 18 25 thereof the following:
 18 26    6.  All records maintained by the commissioner under this
 18 27 section, including work papers, notes, recorded information,
 18 28 documents, and copies thereof that are produced or obtained
 18 29 by or disclosed to the commissioner or another person in the
 18 30 course of a compliance examination, shall be confidential
 18 31 pursuant to section 22.7, subsection 58, and shall not be
 18 32 made available for inspection and copying except upon the
 18 33 approval of the commissioner or the attorney general. Such
 18 34 records shall be privileged and confidential in any judicial or
 18 35 administrative proceeding except any of the following:
 19  1    a.  An action commenced by the commissioner.
 19  2    b.  An administrative proceeding brought by the insurance
 19  3 division.
 19  4    c.  An action or proceeding which arises out of the criminal
 19  5 provisions of the laws of this state or of the United States.
 19  6    d.  An action brought by the insurance division or
 19  7 the attorney general to recover moneys for embezzlement,
 19  8 misappropriation, or misuse of trust funds.
 19  9    Sec. 32.  Section 523A.207, Code 2015, is amended to read as
 19 10 follows:
 19 11    523A.207  Audits by certified public accountants == penalty.
 19 12    1.  A purchase agreement shall not be sold or transferred,
 19 13 as part of the sale of a business or the assets of a business,
 19 14 until an audit has been performed by a certified public
 19 15 accountant and filed with the commissioner that expresses the
 19 16 auditor's opinion of the adequacy of funding related to the
 19 17 purchase agreements to be sold or transferred. If the buyer
 19 18 of a purchase agreement sold or transferred as part of the
 19 19 sale of a business or the assets of a business, fails to file
 19 20 such an audit, the commissioner shall suspend the preneed
 19 21 seller's license of the buyer and the preneed sales license of
 19 22 any sales agent in the employ of the buyer until the audit is
 19 23 filed. In addition, the commissioner shall assess a penalty
 19 24 against the buyer in an amount up to one hundred dollars for
 19 25 each day that the audit remains unfiled. The commissioner
 19 26 shall allow a thirty=day grace period after the date that a
 19 27 purchase agreement is sold or transferred before suspension of
 19 28 a license or assessment of a penalty for failure to file an
 19 29 audit pursuant to this section.
 19 30    2.  All records maintained by the commissioner under this
 19 31 section shall be confidential pursuant to section 22.7,
 19 32 subsection 58, and shall not be made available for inspection
 19 33 or copying except upon approval of the commissioner or the
 19 34 attorney general, or except when sought by the preneed seller
 19 35 to whom the records relate. Such records shall be privileged
 20  1 and confidential in any judicial or administrative proceeding
 20  2 except any of the following:
 20  3    a.  An action commenced by the commissioner.
 20  4    b.  An administrative proceeding brought by the insurance
 20  5 division.
 20  6    c.  An action or proceeding which arises out of the criminal
 20  7 provisions of the laws of this state or of the United States.
 20  8    d.  An action brought by the insurance division or
 20  9 the attorney general to recover moneys for embezzlement,
 20 10 misappropriation, or misuse of trust funds.
 20 11    Sec. 33.  Section 523A.401, subsection 8, Code 2015, is
 20 12 amended to read as follows:
 20 13    8.  An insurance company issuing policies funding purchase
 20 14 agreements subject to this chapter shall file an annual report
 20 15 with the commissioner on a form prescribed by the commissioner.
 20 16 The report shall list the applicable insurance policies
 20 17 outstanding for each seller. Computer printouts may be
 20 18 submitted so long as each legibly provides the same information
 20 19 required in the prescribed form.
 20 20    Sec. 34.  Section 523A.401, Code 2015, is amended by adding
 20 21 the following new subsection:
 20 22    NEW SUBSECTION.  10.  All records maintained by the
 20 23 commissioner under this section shall be confidential
 20 24 pursuant to section 22.7, subsection 58, and shall not be made
 20 25 available for inspection or copying except upon approval of the
 20 26 commissioner or the attorney general, or except when sought
 20 27 by the insurance company to whom the records relate. Such
 20 28 records shall be privileged and confidential in any judicial or
 20 29 administrative proceeding except any of the following:
 20 30    a.  An action commenced by the commissioner.
 20 31    b.  An administrative proceeding brought by the insurance
 20 32 division.
 20 33    c.  An action or proceeding which arises out of the criminal
 20 34 provisions of the laws of this state or of the United States.
 20 35    d.  An action brought by the insurance division or
 21  1 the attorney general to recover moneys for embezzlement,
 21  2 misappropriation, or misuse of trust funds.
 21  3    Sec. 35.  Section 523A.402, subsection 8, Code 2015, is
 21  4 amended to read as follows:
 21  5    8.  An insurance company issuing annuities funding purchase
 21  6 agreements subject to this chapter shall file an annual report
 21  7 with the commissioner on a form prescribed by the commissioner.
 21  8 The report shall list the applicable annuities outstanding for
 21  9 each seller. Computer printouts may be submitted so long as
 21 10 each legibly provides the same information required in the
 21 11 prescribed form.
 21 12    Sec. 36.  Section 523A.405, Code 2015, is amended by striking
 21 13 the section and inserting in lieu thereof the following:
 21 14    523A.405  Bond in lieu of trust fund.
 21 15    The commissioner shall, by rule, establish terms and
 21 16 conditions under which a seller may, in lieu of trust
 21 17 requirements, file with the commissioner a surety bond issued
 21 18 by a surety company authorized to do business and doing
 21 19 business in this state.
 21 20    Sec. 37.  Section 523A.501, subsection 2, Code 2015, is
 21 21 amended to read as follows:
 21 22    2.  An application for a preneed seller's license shall be
 21 23 filed on a form and in a format prescribed by the commissioner
 21 24 and be accompanied by a fifty dollar filing fee in an amount
 21 25 set by the commissioner by rule.  The application shall include
 21 26 the name of the natural person or legal entity to be licensed
 21 27 as the preneed seller and, if applicable, any other name
 21 28 under which the preneed seller will be transacting business,
 21 29 including any names registered with the secretary of state or a
 21 30 county clerk.  The application shall be updated as necessary
 21 31 to ensure that the commissioner has been notified of all names
 21 32 under which the preneed seller is operating and doing business.
 21 33    Sec. 38.  Section 523A.501, subsection 7, Code 2015, is
 21 34 amended to read as follows:
 21 35    7.  A preneed seller's license shall be renewed every four
 22  1 years by filing the form prescribed by the commissioner under
 22  2 subsection 2, accompanied by a renewal fee in an amount set by
 22  3 the commissioner by rule expires annually on April 15.  If the
 22  4 preneed seller has filed a complete annual report and paid the
 22  5 required fees as required in section 523A.204, the commissioner
 22  6 shall renew the preneed seller's license until April 15 of the
 22  7 following year.
 22  8    Sec. 39.  Section 523A.502, subsection 5, Code 2015, is
 22  9 amended by striking the subsection and inserting in lieu
 22 10 thereof the following:
 22 11    5.  A sales license shall expire annually on April 15.  If
 22 12 the sales agent has filed a substantially complete annual
 22 13 report as required in section 523A.502A, the commissioner shall
 22 14 renew the sales license until April 15 of the following year.
 22 15    Sec. 40.  Section 523A.502A, subsections 1 and 2, Code 2015,
 22 16 are amended to read as follows:
 22 17    1.  A sales agent shall file with the commissioner not later
 22 18 than April 1 of each year an annual report on a form prescribed
 22 19 by the commissioner describing each purchase agreement sold
 22 20 by the sales agent during the year.  An annual report must be
 22 21 filed whether or not sales were made during the year and even
 22 22 if the sales agent is no longer an agent of a preneed seller or
 22 23 licensed by the commissioner.
 22 24    2.  All records maintained by the commissioner under this
 22 25 section shall be confidential pursuant to section 22.7,
 22 26 subsection 58, and shall not be made available for inspection
 22 27 or copying except upon the approval of the commissioner or the
 22 28 attorney general, or except when sought by the sales agent to
 22 29 whom the records relate.  Such records shall be privileged
 22 30 and confidential in any judicial or administrative proceeding
 22 31 except any of the following:
 22 32    a.  An action commenced by the commissioner.
 22 33    b.  An administrative proceeding brought by the insurance
 22 34 division.
 22 35    c.  An action or proceeding which arises out of the criminal
 23  1 provisions of the laws of this state or of the United States.
 23  2    d.  An action brought by the insurance division or
 23  3 the attorney general to recover moneys for embezzlement,
 23  4 misappropriation, or misuse of trust funds.
 23  5    Sec. 41.  Section 523A.502A, subsections 3 and 4, Code 2015,
 23  6 are amended by striking the subsections.
 23  7    Sec. 42.  Section 523A.803, subsection 1, paragraph c, Code
 23  8 2015, is amended by striking the paragraph.
 23  9    Sec. 43.  Section 523A.803, Code 2015, is amended by adding
 23 10 the following new subsection:
 23 11    NEW SUBSECTION.  1A.  All records maintained by the
 23 12 commissioner under this section, including work papers, notes,
 23 13 recorded information, documents, and copies thereof that are
 23 14 produced or obtained by or disclosed to the commissioner or
 23 15 another person in the course of an investigation, shall be
 23 16 confidential pursuant to section 22.7, subsection 58, and shall
 23 17 not be made available for inspection and copying except upon
 23 18 the approval of the commissioner or the attorney general. Such
 23 19 records shall be privileged and confidential in any judicial or
 23 20 administrative proceeding except any of the following:
 23 21    a.  An action commenced by the commissioner.
 23 22    b.  An administrative proceeding brought by the insurance
 23 23 division.
 23 24    c.  An action or proceeding which arises out of the criminal
 23 25 provisions of the laws of this state or of the United States.
 23 26    d.  An action brought by the insurance division or
 23 27 the attorney general to recover moneys for embezzlement,
 23 28 misappropriation, or misuse of trust funds.
 23 29    Sec. 44.  Section 523A.807, subsection 3, unnumbered
 23 30 paragraph 1, Code 2015, is amended to read as follows:
 23 31    If the commissioner finds that a person has violated section
 23 32 523A.201, 523A.202, 523A.203, 523A.207, 523A.401, 523A.402,
 23 33 523A.403, 523A.404, 523A.405, 523A.501, 523A.502, or 523A.504
 23 34  or any rule adopted pursuant thereto, the commissioner may
 23 35 order any or all of the following:
 24  1    Sec. 45.  Section 523I.810, subsection 9, Code 2015, is
 24  2 amended to read as follows:
 24  3    9.  A cemetery may, by resolution adopted by a vote of at
 24  4 least two=thirds of the members of its board at any authorized
 24  5 meeting of the board, authorize the withdrawal and use of
 24  6 not more than twenty percent of the principal of the care
 24  7 fund to acquire additional land for cemetery purposes, to
 24  8 repair a mausoleum or other building or structure intended for
 24  9 cemetery purposes, to build, improve, or repair boundaries,
 24 10  roads and walkways in the cemetery, to construct a columbarium,
 24 11 mausoleum, or similar structure to create additional interment
 24 12 spaces, to purchase equipment for tree, shrub, and lawn care,
 24 13 to purchase backhoes or similar equipment used to open and
 24 14 close interment spaces, or to purchase recordkeeping software
 24 15 used to maintain ownership records or interment records. The
 24 16 resolution shall establish a reasonable repayment schedule, not
 24 17 to exceed five years, and provide for interest in an amount
 24 18 comparable to the care fund's current rate of return on its
 24 19 investments. However, the care fund shall not be diminished
 24 20 below an amount equal to the greater of twenty=five thousand
 24 21 dollars or five thousand dollars per acre of land in the
 24 22 cemetery. The resolution, and if the deposit of care fund
 24 23 income over five years is unlikely to fund replenishment of the
 24 24 principal of the care fund, either a bond or proof of insurance
 24 25 to guarantee replenishment of the care fund, shall be filed
 24 26 with the commissioner thirty days prior to the withdrawal of
 24 27 funds.
 24 28    Sec. 46.  Section 523I.811, subsection 1, paragraph b, Code
 24 29 2015, is amended to read as follows:
 24 30    b.  Maintaining drains, water lines, roads, buildings,
 24 31 boundaries, fences, and other structures.
 24 32    Sec. 47.  Section 523I.811, subsection 1, Code 2015, is
 24 33 amended by adding the following new paragraphs:
 24 34    NEW PARAGRAPH.  g.  To purchase equipment to maintain the
 24 35 cemetery.
 25  1    NEW PARAGRAPH.  h.  To purchase backhoes or similar equipment
 25  2 used to open and close interment spaces.
 25  3    NEW PARAGRAPH.  i.  To purchase equipment used to construct
 25  4 a columbarium, mausoleum, or similar structure to create
 25  5 additional interment spaces.
 25  6    Sec. 48.  NEW SECTION.  523I.811A  Emergency use of care
 25  7 funds.
 25  8    1.  Notwithstanding any other provision of this chapter,
 25  9 a perpetual care cemetery may apply to the commissioner to
 25 10 withdraw funds from the cemetery's care fund for a financial
 25 11 emergency.  The commissioner shall, by rule, establish
 25 12 standards and procedures for such applications and for
 25 13 withdrawals from care funds.
 25 14    2.  Upon application, the commissioner may allow a perpetual
 25 15 care cemetery to withdraw funds from the care fund if the
 25 16 commissioner finds that the cemetery has an urgent financial
 25 17 need and the withdrawal is deemed reasonable and prudent to
 25 18 fund a necessary expense of the cemetery.  The commissioner
 25 19 shall establish conditions for the specific use of the funds
 25 20 withdrawn and may require repayment of all or part of the
 25 21 amount withdrawn.
 25 22    Sec. 49.  EFFECTIVE DATE.  The following provision or
 25 23 provisions of this Act take effect January 1, 2016:
 25 24    1.  The section of this Act adding section 502.202,
 25 25 subsection 24.
 25 26    Sec. 50.  DIRECTIONS TO CODE EDITOR.  The Iowa code editor is
 25 27 directed to transfer section 515.11 to new section 515.23.
 25 28    Sec. 51.  REPEAL.  Section 523A.504, Code 2015, is repealed.
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