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IowaHF 263491st General Assembly (2025–2026)HouseWALLET

A bill for an act relating to preneed sellers, sales agents and sales agent applicants, and government cemeteries. (Formerly HSB 600.) Effective date: 07/01/2026.

Sponsored By: COMMITTEE ON COMMERCE

Signed by Governor

state governmentways and means

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 0 costs, 5 mixed.

Funeral and cemetery buyers get complaint contacts

Beginning July 1, 2026, Iowa prepaid funeral and cemetery agreements must explain Iowa Insurance Division oversight. They must direct questions and complaints to iid.iowa.gov in 12-point boldface type. The website replaces the prior telephone and mailing-address information.

Inflation-adjusted refunds for prepaid funeral buyers

Beginning July 1, 2026, covered Iowa prepaid funeral and cemetery refunds and transfers use the latest Consumer Price Index for All Urban Consumers. Covered cases include cancellation, seller nonperformance, requested trust transfers, and another seller providing the contracted goods or services. Refunds start at no less than the inflation-adjusted purchase price, before allowed deductions. Sellers may deduct actual expenses up to 10% of the purchase price, plus the value of goods or services already delivered or warehoused. Funeral merchandise is refundable when unavailable within 48 hours after notice of death, except for weather or natural-disaster delays. Sellers must make covered refunds or transfers within 30 days after receiving a written demand.

Funeral sellers can withdraw trust earnings

Beginning July 1, 2026, Iowa prepaid funeral and cemetery sellers can withdraw limited earnings from buyers’ trust funds. Withdrawals must equal the inflation adjustment using the latest Consumer Price Index for All Urban Consumers. They cannot exceed 50% of the trust’s total interest or income for the calendar year; other earnings stay in trust. Buyers keep their rights to interest or income credits for nonguaranteed prices, cancellations, and seller nonperformance.

Funeral sales agents face revised licensing

Beginning July 1, 2026, agents need a sales license to advertise or sell funeral or cemetery arrangements potentially delivered more than 120 days after initial payment. Applicants need designation by at least one licensed prepaid seller, which must file the designation with the application. Sellers must report designation changes within 30 calendar days; an agent’s license is inactive without employment or association with a licensed seller. Sellers are liable for their agents’ advertising and sales activities. Licenses expire each April 30, and renewal requires continuing education and a fee—but no longer an annual report.

Government cemeteries gain separate operating rules

Beginning July 1, 2026, Iowa separately classifies cemeteries owned, operated, or controlled by a city, county, or township. Cemeteries fall into three groups: perpetual care, nonperpetual care, or government cemeteries. Government cemeteries are exempt from the perpetual-care subchapter, including minimum initial care-fund deposits. They can purchase, establish, operate, improve, enclose, and regulate cemeteries and sell burial rights, subject to applicable cemetery law.

Cemeteries get care-fund flexibility and limits

Beginning July 1, 2026, covered non-government Iowa cemeteries must keep at least $25,000 in care funds before selling burial spaces. This applies to cemeteries that began business on or after July 1, 2005. The law no longer expressly requires that minimum fund to be held in cash. Care funds exceeding $200,000 face added trustee eligibility and financial-institution restrictions.

Funeral sellers and cemeteries face flexible inspections

Beginning July 1, 2026, Iowa’s insurance commissioner can examine any prepaid seller or cemetery as often as considered appropriate. The law removes required examinations at least once every five years for sellers and cemeteries with trust arrangements. The commissioner can require sellers to provide a certified copy of an independent certified public accountant’s compliance audit. The law also expands the commissioner’s authority to issue orders and take action for prepaid-sales and cemetery violations.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON COMMERCE

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 130 • No: 0

Senate vote • 4/22/2026

Passed Senate

Yes: 44 • No: 0

House vote • 3/5/2026

Passed House

Yes: 86 • No: 0

Actions Timeline

  1. Signed by Governor.

    5/15/2026House

  2. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

    5/6/2026House

  3. Message from Senate.

    4/22/2026House

  4. Immediate message.

    4/22/2026Senate

  5. Passed Senate, yeas 44, nays 0.

    4/22/2026Senate

  6. Placed on calendar.

    4/15/2026legislature

  7. Committee report, recommending passage.

    4/15/2026Senate

  8. Subcommittee: Taylor, Bousselot, and Dotzler.

    4/13/2026legislature

  9. Referred to Ways and Means.

    4/13/2026Senate

  10. Subcommittee: Reichman, Bisignano, and Bousselot.

    3/12/2026Senate

  11. Read first time, referred to State Government.

    3/9/2026Senate

  12. Message from House.

    3/9/2026Senate

  13. Immediate message.

    3/5/2026House

  14. Passed House, yeas 86, nays 0.

    3/5/2026House

  15. Introduced, placed on calendar.

    2/19/2026House

Bill Text

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