Iowa House Bill HSB246 Latest Draft

                            House Study Bill 246 - Introduced   SENATE/HOUSE FILE _____   BY (PROPOSED GOVERNOR BILL)   A BILL FOR   An Act relating to the natural hazard mitigation financing 1   program, the disaster recovery housing assistance program, 2   the disaster recovery new housing program, post-loss 3   assignment of benefits, the licensing and regulation 4   of adjusters, appraisers, and umpires, and the Iowa 5   economic emergency fund, and providing penalties, making 6   appropriations, and including effective date and retroactive 7   applicability provisions. 8   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9   TLSB 1094XL (12) 91   nls/ko  

  S.F. _____ H.F. _____   DIVISION I 1   NATURAL HAZARD MITIGATION FINANCING PROGRAM 2   Section 1. NEW SECTION   . 16.230 Definitions. 3   1. Department means the department of homeland security 4   and emergency management. 5   2. Fund means the natural hazard mitigation revolving loan 6   fund created in section 29D.4. 7   3. Loan recipient means the same as defined in section 8   29D.2. 9   4. Program means the natural hazard mitigation financing 10   program created in section 29D.3. 11   5. Project means the same as defined in section 29D.2. 12   Sec. 2. NEW SECTION   . 16.231 Funds and accounts  program 13   funds and accounts not part of state general fund. 14   1. The department, in consultation with the authority, 15   may establish and maintain funds or accounts determined to 16   be necessary to carry out the purposes of chapter 29D and 17   shall provide for the funding, administration, investment, 18   restrictions, and disposition of the funds and accounts. 19   Any moneys appropriated to the department and the authority 20   for purposes of paying the costs and expenses associated 21   with the administration of the program shall be administered 22   as determined by the department in consultation with the 23   authority. 24   2. The funds or accounts held by the department or the 25   authority, or a trustee acting on behalf of the department or 26   the authority pursuant to a trust agreement related to the 27   program, shall not be considered part of the general fund of 28   the state, are not subject to appropriation for any other 29   purpose by the general assembly, and in determining a general 30   fund balance shall not be included in the general fund of the 31   state, but shall remain in the funds and accounts maintained 32   by the department or the authority, or a trustee pursuant to a 33   trust agreement. Funds and accounts held by the department or 34   the authority, or a trustee acting on behalf of the department 35   -1-   LSB 1094XL (12) 91   nls/ko 1/ 103    

  S.F. _____ H.F. _____   or the authority pursuant to a trust agreement related to the 1   program, are separate dedicated funds and accounts under the 2   administration and control of the department in consultation 3   with the authority. 4   Sec. 3. NEW SECTION . 16.232 Program funding  bonds and 5   notes. 6   1. The authority shall cooperate with the department in the 7   creation, administration, and financing of the program. 8   2. The authority may issue bonds and notes for the purpose 9   of funding the fund and the state matching funds required 10   pursuant to the federal Robert T. Stafford Disaster Relief 11   and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 12   42 U.S.C. 5121 et seq. The authority may enter into one or 13   more loan agreements or purchase agreements with one or more 14   bondholders or noteholders containing the terms and conditions 15   of the repayment of, and the security for, each bond or note. 16   The authority and each bondholder or noteholder, or a trustee 17   agent designated by the authority, may enter into an agreement 18   to provide for any of the following: 19   a. That the proceeds of the bond or note and the investments 20   of the proceeds may be received, held, and disbursed by the 21   authority or by a trustee or agent designated by the authority. 22   b. That the bondholder or noteholder, or a trustee or 23   agent designated by the authority, may collect, invest, and 24   apply the amount payable under the loan agreement or any other 25   instruments securing the debt obligations under the loan 26   agreement. 27   c. That the bondholder or noteholder may enforce the 28   remedies provided in the loan agreement or other instruments on 29   the bondholders or noteholders behalf without the appointment 30   or designation of a trustee. If there is a default in the 31   principal of, or interest on, the bond or note or in the 32   performance of any agreement contained in the loan agreement or 33   other instrument, the payment or performance may be enforced in 34   accordance with the loan agreement or other instrument. 35   -2-   LSB 1094XL (12) 91   nls/ko 2/ 103   

  S.F. _____ H.F. _____   d. Other terms and conditions as deemed necessary or 1   appropriate by the authority. 2   3. Chapter 16, except to the extent inconsistent with this 3   section, shall apply to bonds or notes issued, and powers 4   granted to the authority, under this section. Section 16.28, 5   subsection 4, shall not apply to this section. 6   4. All bonds or notes issued by the authority in connection 7   with the program are exempt from taxation by this state and the 8   interest on the bonds or notes is exempt from state income tax. 9   Sec. 4. NEW SECTION   . 16.233 Security  reserve funds  10   pledges  nonliability. 11   1. The authority may provide in the resolution, trust 12   agreement, or other instrument authorizing the issuance of 13   bonds or notes pursuant to chapter 29D that the principal of, 14   premium, and interest on the bonds or notes are payable from 15   any of the following and may pledge the same to the authoritys 16   bonds or notes: 17   a. The income and receipts or other moneys derived from the 18   projects financed with the proceeds of the bonds or notes. 19   b. The income and receipts or other moneys derived from 20   designated projects whether or not the projects are financed in 21   whole or in part with the proceeds of the bonds or notes. 22   c. The amounts on deposit in the fund. 23   d. The amounts payable to the authority by loan recipients 24   pursuant to loan agreements with loan recipients. 25   e. Any other funds or accounts established by the authority 26   in connection with the program or the sale and issuance of the 27   authoritys bonds or notes. 28   2. The authority may establish reserve funds to secure 29   one or more issues of its bonds or notes. The authority may 30   deposit in a reserve fund established under this subsection 31   the proceeds of the sale of the authoritys bonds or notes and 32   other moneys which are made available from any other source. 33   3. It is the intention of the general assembly that a pledge 34   made in respect of bonds or notes shall be valid and binding 35   -3-   LSB 1094XL (12) 91   nls/ko 3/ 103   

  S.F. _____ H.F. _____   from the time the pledge is made, that the moneys or property 1   so pledged and received after the pledge by the authority 2   shall immediately be subject to the lien of the pledge without 3   physical delivery or further act, and that the lien of the 4   pledge shall be valid and binding as against all parties having 5   claims of any kind in tort, contract, or otherwise against 6   the authority whether or not the parties have notice of the 7   lien. Neither the resolution, trust agreement, nor any other 8   instrument by which a pledge is created needs to be recorded or 9   filed under the Iowa uniform commercial code, chapter 554, to 10   be valid, binding, or effective against the parties. 11   4. Neither the members of the authority nor persons 12   executing the bonds or notes are liable personally on the bonds 13   or notes or are subject to personal liability or accountability 14   by reason of the issuance of the bonds or notes. 15   5. The bonds or notes issued by the authority are not 16   an indebtedness or other liability of the state or of a 17   political subdivision of the state within the meaning of any 18   constitutional or statutory debt limitations but are special 19   obligations of the authority, and are payable solely from 20   the income and receipts or other funds or property of the 21   authority, and the amounts on deposit in the revolving loan 22   funds, and the amounts payable to the authority under the 23   authoritys loan agreements with loan recipients to the extent 24   that the amounts are designated in the resolution, trust 25   agreement, or other instrument of the authority authorizing the 26   issuance of the bonds or notes as being available as security 27   for such bonds or notes. The authority shall not pledge the 28   faith or credit of the state or of a political subdivision of 29   the state to the payment of any bonds or notes. The issuance 30   of any bonds or notes by the authority does not directly, 31   indirectly, or contingently obligate the state or a political 32   subdivision of the state to apply moneys from, or levy or 33   pledge any form of taxation to the payment of the bonds or 34   notes.   35   -4-   LSB 1094XL (12) 91   nls/ko 4/ 103  

  S.F. _____ H.F. _____   Sec. 5. NEW SECTION . 29D.1 Short title. 1   This chapter shall be known and may be cited as the Natural 2   Hazard Mitigation Financing Program . 3   Sec. 6. NEW SECTION   . 29D.2 Definitions. 4   As used in this chapter, unless the context otherwise 5   requires: 6   1. Authority means the Iowa finance authority created in 7   section 16.1A. 8   2. Cost means all costs or indebtedness incurred by a loan 9   recipient and determined by the department as reasonable and 10   necessary for carrying out all work necessary or incidental to 11   the accomplishment of a project. 12   3. Department means the department of homeland security 13   and emergency management. 14   4. Director means the director of the department of 15   homeland security and emergency management. 16   5. Eligible entity means a person that is eligible under 17   the STORM Act to receive a loan under the program. 18   6. Fund means the natural hazard mitigation revolving loan 19   fund created in section 29D.4. 20   7. Loan recipient means an eligible entity that has 21   received a loan from the fund. 22   8. Municipality means a city, county, sanitary district, 23   state agency, or other governmental body or corporation, or any 24   combination of two or more governmental bodies or corporations 25   acting jointly, in connection with a project. 26   9. Private entity means a corporation, limited liability 27   company, trust, estate, partnership, association, or any 28   other legal entity or a legal representative, agent, officer, 29   employee, or assignee of such entity. Private entity does not 30   include any of the following: 31   a. An individual, municipality, or city utility as that term 32   is defined in section 362.2.   33   b. A public water supply system as defined in section 34   455B.171. 35   -5-   LSB 1094XL (12) 91   nls/ko 5/ 103    

  S.F. _____ H.F. _____   c. A qualified entity as defined in section 384.84, 1   subsection 2. 2   10. Program means the natural hazard mitigation financing 3   program created in section 29D.3. 4   11. a. Project means an activity or set of activities, 5   in accordance with the limitations set forth in the STORM Act, 6   that mitigate the impact of natural hazards, including but not 7   limited to: 8   (1) Drought and prolonged episodes of intense heat. 9   (2) Severe storms, including tornadoes, windstorms, and 10   severe winter storms. 11   (3) Wildfires. 12   (4) Earthquakes. 13   (5) Flooding. 14   (6) Shoreline erosion. 15   (7) High water levels. 16   (8) Storm surges. 17   b. Project may include but is not limited to any of the 18   following: 19   (1) The construction, repair, or replacement of a 20   nonfederal levee or other flood control structure, provided 21   that the administrator of the federal emergency management 22   agency, in consultation with the United States army corps of 23   engineers, if appropriate, requires an eligible entity to 24   determine that such levee or other flood control structure is 25   designed, constructed, and maintained in accordance with sound 26   engineering practices and standards equivalent to the purpose 27   for which such levee or structure is intended.   28   (2) Zoning and land use planning changes. 29   (3) Establishing and enforcing building codes. 30   12. Safeguarding tomorrow through ongoing risk mitigation 31   Act , or STORM Act , means the federal Robert T. Stafford 32   Disaster Relief and Emergency Assistance Act, Pub. L. No. 33   93-288, as amended, 42 U.S.C. 5121 et seq. 34   Sec. 7. NEW SECTION   . 29D.3 Natural hazard mitigation 35   -6-   LSB 1094XL (12) 91   nls/ko 6/ 103   

  S.F. _____ H.F. _____   financing program. 1   1. The natural hazard mitigation financing program is 2   created for the purpose of making loans available to eligible 3   entities to finance all or part of the costs of a project. 4   2. The program shall be a joint and cooperative undertaking 5   of the department and the authority. The department and 6   the authority may enter into any agreements, documents, 7   instruments, certificates, data, or information as necessary 8   for the operation, administration, and financing of the program 9   consistent with this chapter, chapter 16, subchapter X, part 10   11, the STORM Act, the rules promulgated under chapter 17A by 11   the department in consultation with the authority, and any 12   other applicable federal or state laws. The authority and the 13   department may act to conform the program to the applicable 14   guidance and regulations adopted by the federal emergency 15   management agency. 16   Sec. 8. NEW SECTION   . 29D.4 Natural hazard mitigation 17   revolving loan fund. 18   1. A natural hazard mitigation revolving loan fund is 19   created in the state treasury under the control of the 20   department in consultation with the authority. The revolving 21   loan fund is a separate dedicated fund under the administration 22   and control of the department in consultation with the 23   authority and shall be subject to section 16.31. Moneys 24   on deposit in the revolving loan fund shall be invested by 25   the treasurer of state in cooperation with the department, 26   in consultation with the authority, and the income from the 27   investments shall be credited to and deposited in the revolving 28   loan fund. 29   2. a. The fund shall consist of moneys appropriated by 30   the general assembly, moneys received by the fund through the 31   federal emergency management agency and the STORM Act, moneys 32   received as repayment of loan principal and interest from loans 33   paid for by the fund, and all other moneys received by the fund 34   from any other source. Notwithstanding section 8.33, moneys in 35   -7-   LSB 1094XL (12) 91   nls/ko 7/ 103   

  S.F. _____ H.F. _____   the fund that remain unencumbered or unobligated at the close 1   of the fiscal year shall not revert but shall remain available 2   for expenditure for the purposes designated. Notwithstanding 3   section 12C.7, subsection 2, interest or earnings on moneys in 4   the fund shall be credited to the fund. 5   b. Moneys in the fund are appropriated to the department to 6   provide loans to eligible entities pursuant to section 29D.9, 7   and for administration of the program as permitted under the 8   STORM Act. Moneys in the fund shall not be used to provide a 9   loan to a private entity for the acquisition of real property. 10   Moneys in the fund shall not be considered part of the general 11   fund of the state subject to appropriation for any other 12   purpose by the general assembly, and in determining a general 13   fund balance, shall not be included in the general fund of 14   the state subject to section 16.31, insofar as section 16.31 15   complies with the STORM Act. 16   Sec. 9. NEW SECTION   . 29D.5 Director  powers and duties. 17   The director shall do all of the following: 18   1. Process and review each intended use plan application 19   to determine if the intended use plan application meets the 20   eligibility requirements promulgated by the department by rule, 21   and approve or deny the application. 22   2. Process and review all documents relating to the 23   planning, design, construction, and operation of each project. 24   3. Prepare and process, in coordination with the authority, 25   documents relating to the administration of the program. 26   4. Prepare an annual budget for administration of the 27   program. 28   5. Receive program fees as determined in conjunction with 29   the authority. 30   6. Perform other acts and assume other duties and 31   responsibilities necessary for the administration of the 32   program and compliance with the STORM Act. 33   Sec. 10. NEW SECTION   . 29D.6 Intended use plans  34   capitalization grants  accounting. 35   -8-   LSB 1094XL (12) 91   nls/ko 8/ 103    

  S.F. _____ H.F. _____   1. For the fiscal year beginning July 1, 2025, and each 1   fiscal year thereafter, the department may prepare and deliver 2   intended use plans to, and enter into capitalization grant 3   agreements with, the administrator of the federal emergency 4   management agency under the terms and conditions set forth 5   in the STORM Act and federal regulations adopted pursuant to 6   the STORM Act, and may accept capitalization grants for the 7   fund in accordance with payment schedules established by the 8   administrator. All payments from the administrator shall be 9   deposited into the fund. 10   2. The department, in consultation with the authority, 11   shall establish fiscal controls and accounting procedures 12   during appropriate accounting periods for payments received for 13   deposit into, and disbursements made from, the fund, and to 14   fund balances at the beginning and end of an accounting period. 15   Sec. 11. NEW SECTION   . 29D.7 Authority  loan application 16   review and approval. 17   1. The department and the authority shall review each 18   loan application to determine if the applicant is an eligible 19   entity and qualifies for a loan pursuant to eligibility 20   requirements established by rule promulgated by the department 21   and the authority, and in accordance with the intended use plan 22   applications approved by the director under section 29D.6. 23   2. The authority, in cooperation with the department, shall 24   determine the interest rate and repayment terms for each loan 25   made under the program and the authority shall enter into a 26   loan agreement with each loan recipient in compliance with 27   the Clean Water Act as defined in section 455B.291, the Safe   28   Drinking Water Act as defined in section 455B.291, the STORM 29   Act, and any other applicable state or federal law. 30   3. The authority may charge loan recipients fees and assess 31   costs as deemed necessary by the authority for the continued 32   operation of the program. Fees and costs collected pursuant 33   to this subsection shall be deposited in the fund described in 34   section 29D.4.   35   -9-   LSB 1094XL (12) 91   nls/ko 9/ 103   

  S.F. _____ H.F. _____   Sec. 12. NEW SECTION . 29D.8 Loans to eligible entities. 1   1. Moneys deposited in the fund shall be used for the 2   primary purpose of making loans to eligible entities to finance 3   eligible costs of projects in accordance with the intended 4   use plans prepared and delivered to the administrator of the 5   federal emergency management system by the department under 6   section 29D.6. The loan recipients and the purpose and amount 7   of the loans shall be determined by the director, in compliance 8   with the STORM Act and other applicable federal law, and any 9   resolution, agreement, indenture, or other document of the 10   authority, and rules adopted by the authority relating to any 11   bonds, notes, or other obligations issued for the program which 12   may be applicable to the loan. 13   2. Notwithstanding any provision of this chapter to the 14   contrary, moneys received under the federal American Recovery 15   and Reinvestment Act of 2009, Pub. L. No. 111-5, and deposited 16   in the fund may be used in any manner permitted or required by 17   applicable federal law. 18   Sec. 13. NEW SECTION   . 29D.9 Rules. 19   The department, in consultation with the authority, shall 20   adopt rules pursuant to chapter 17A to administer this chapter. 21   Sec. 14. Section 422.7, subsection 2, Code 2025, is amended 22   by adding the following new paragraph: 23   NEW PARAGRAPH   . u. Natural hazard mitigation financing 24   program bonds pursuant to section 16.232, subsection 4. 25   Sec. 15. CODE EDITOR DIRECTIVE. The Code editor shall 26   designate sections 16.230 through 16.233, as enacted in this 27   division of this Act, as part 11 of chapter 16, subchapter X, 28   entitled Natural Hazard Mitigation Financing Program. 29   DIVISION II   30   DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM   31   Sec. 16. Section 16.57B, subsection 1, paragraph a, Code 32   2025, is amended to read as follows: 33   a. Disaster-affected home means a primary residence 34   that is destroyed or damaged due to a natural disaster that 35   -10-   LSB 1094XL (12) 91   nls/ko 10/ 103     

  S.F. _____ H.F. _____   occurs on or after June 16, 2021, and the primary residence 1   is located in a county that is the subject of a state of 2   disaster emergency proclamation by the governor that authorizes 3   disaster recovery housing assistance. The state of disaster   4   emergency proclamation shall specify if disaster recovery   5   housing assistance is available to homeowners, renters, or both   6   homeowners and renters. 7   Sec. 17. Section 16.57B, subsection 1, Code 2025, is amended 8   by adding the following new paragraph: 9   NEW PARAGRAPH   . 0b. Financial assistance means assistance 10   provided only from the funds, rights, and assets legally 11   available to the authority pursuant to this chapter and 12   includes but is not limited to assistance in the form of 13   grants, loans, and forgivable loans. 14   Sec. 18. Section 16.57B, subsection 2, paragraph a, 15   subparagraph (1), Code 2025, is amended to read as follows: 16   (1) A disaster recovery housing assistance fund is created 17   within the authority. The moneys in the fund shall be used by 18   the authority for the development and operation of a forgivable   19   loan and grant program for to award financial assistance to 20   homeowners and renters with disaster-affected homes, and for 21   the eviction prevention program pursuant to section 16.57C . 22   Sec. 19. Section 16.57B, subsection 2, paragraph c, Code 23   2025, is amended to read as follows: 24   c. The authority shall not use more than five percent of the 25   moneys in   deposited into the fund on July 1 of a fiscal year 26   under paragraph b for purposes of administrative costs and 27   other program support during the fiscal year . 28   Sec. 20. Section 16.57B, subsection 3, paragraph a, Code 29   2025, is amended to read as follows:   30   a. The authority shall establish and administer a disaster 31   recovery housing assistance program and shall use moneys in the 32   fund to award forgivable loans   financial assistance to eligible 33   homeowners and grants to   eligible renters of disaster-affected 34   homes. Moneys in the fund may be expended following a state 35   -11-   LSB 1094XL (12) 91   nls/ko 11/ 103                   

  S.F. _____ H.F. _____   of disaster emergency proclamation by the governor pursuant 1   to section 29C.6 that authorizes disaster recovery housing 2   assistance. The governor, by state of disaster emergency   3   proclamation, shall specify if disaster recovery housing 4   assistance is available to homeowners, renters, or both   5   homeowners and renters.   6   Sec. 21. Section 16.57B, subsections 4, 5, 6, and 7, Code 7   2025, are amended to read as follows: 8   4. Registration required   . To be considered for a forgivable 9   loan or grant under the program, a A homeowner or renter must 10   may   register for the disaster case advocacy program established 11   pursuant to section 29C.20B . The disaster case manager may 12   refer the homeowner or renter to the appropriate local program 13   administrator. 14   5. Homeowners. 15   a. To be eligible for a forgivable loan   financial assistance 16   under the program, all of the following requirements shall 17   apply: 18   (1) The homeowners disaster-affected home must have 19   sustained damage greater than the damage that is covered by the 20   homeowners property and casualty insurance policy insuring the 21   home plus any other state or federal disaster-related financial 22   assistance that the homeowner is eligible to receive. 23   (2) A local official must either deem the disaster-affected 24   home suitable for rehabilitation or damaged beyond reasonable 25   repair. 26   (3) The disaster-affected home is not eligible for buyout by 27   the county or city where the disaster-affected home is located, 28   or the disaster-affected home is eligible for a buyout by the 29   county or city where the disaster-affected home is located, 30   but the homeowner is requesting a forgivable loan   financial 31   assistance   for the repair or rehabilitation of the homeowners 32   disaster-affected home in lieu of a buyout. 33   (4) Assistance   Financial assistance under the program must 34   not duplicate benefits provided by any local, state, or federal 35   -12-   LSB 1094XL (12) 91   nls/ko 12/ 103                   

  S.F. _____ H.F. _____   disaster recovery assistance program. 1   b. If a homeowner is referred to the authority or to a   2   local program administrator by the disaster case manager of 3   the homeowner, the The authority may award a forgivable loan 4   financial assistance   to the eligible homeowner for any of the 5   following purposes: 6   (1) Repair or rehabilitation of the disaster-affected home. 7   The disaster-affected home to be repaired or rehabilitated   8   shall not be located in a one-hundred-year floodplain.   9   (2) (a) Down payment assistance on the purchase of 10   replacement housing, and the cost of reasonable repairs to be 11   performed on the replacement housing to render the replacement 12   housing decent, safe, sanitary, and in good repair. 13   (b) Replacement housing shall not be located in a 14   one-hundred-year floodplain. 15   (c) For purposes of this subparagraph, decent, safe, 16   sanitary, and in good repair means the same as described in 24 17   C.F.R. 5.703. 18   c. The authority shall determine the interest rate for the   19   any financial assistance awarded in the form of a loan or a 20   forgivable loan. 21   d. If a homeowner who has been awarded a loan or a   22   forgivable loan sells a disaster-affected home or replacement 23   housing for which the homeowner received the loan or   forgivable 24   loan prior to the end of the loan term, the remaining principal 25   on the loan or forgivable loan shall be due and payable 26   pursuant to rules adopted by the authority. 27   6. Renters.   28   a. To be eligible for a grant   financial assistance under the 29   program, all of the following requirements shall apply: 30   (1) A local program administrator either deems 31   the disaster-affected home of the renter suitable for 32   rehabilitation but unsuitable for current short-term   33   habitation, or the disaster-affected home is damaged beyond 34   reasonable repair. 35   -13-   LSB 1094XL (12) 91   nls/ko 13/ 103                 

  S.F. _____ H.F. _____   (2) Assistance Financial assistance under the program must 1   not duplicate benefits provided by any local, state, or federal 2   disaster recovery assistance program. 3   b. If a renter is referred to the authority or to a   4   local program administrator by the disaster case manager of   5   the renter, the   The authority may award a grant financial 6   assistance to the eligible renter to provide short-term 7   financial assistance for the payment of rent for replacement 8   housing. 9   7. Report. On or before January 31 of each year, or as part 10   of the annual report under section 16.7 , the authority shall 11   submit a report to the general assembly that identifies all of 12   the following for the calendar year immediately preceding the 13   year of the report: 14   a. The date of each state of disaster emergency proclamation 15   by the governor that authorized disaster recovery housing 16   assistance under this section , and if disaster recovery housing   17   assistance was made available to homeowners, renters, or both   18   homeowners and renters   . 19   b. The total number of forgivable loans and grants financial 20   assistance awards   awarded. 21   c. The total number of forgivable loans financial assistance 22   awards   , and the amount of each loan financial assistance award 23   awarded for repair or rehabilitation. 24   d. The total number of forgivable loans financial assistance 25   awards , and the amount of each loan financial assistance 26   award , awarded for down payment assistance on the purchase of 27   replacement housing and the cost of reasonable repairs to be 28   performed on the replacement housing to render the replacement 29   housing decent, safe, sanitary, and in good repair. 30   e. The total number of grants, and the amount of each grant, 31   awarded for rental assistance.   32   f. The total number of loans,   forgivable loans , and grants 33   awarded in each county in which at least one homeowner or 34   renter has been awarded a loan,   forgivable loan , or grant. 35   -14-   LSB 1094XL (12) 91   nls/ko 14/ 103                                

  S.F. _____ H.F. _____   g. Each local program administrator involved in the 1   administration of the program. 2   h. The total amount of loan and   forgivable loan principal 3   repaid. 4   Sec. 22. Section 16.57D, subsections 1 and 2, Code 2025, are 5   amended to read as follows: 6   1. Establish the maximum loan, forgivable loan , and grant 7   amounts awarded under the program. 8   2. Establish the terms of any loan or   forgivable loan 9   provided under the program. 10   DIVISION III 11   DISASTER RECOVERY NEW HOUSING PROGRAM 12   Sec. 23. Section 422.7, Code 2025, is amended by adding the 13   following new subsection: 14   NEW SUBSECTION   . 45. a. Subtract, to the extent included, 15   the amount of any qualifying state disaster recovery new 16   housing grant issued to an individual or business by the 17   economic development authority. 18   b. For purposes of this subsection, qualifying state 19   disaster recovery new housing grant means an award of a state 20   disaster recovery new housing grant that was applied for 21   between August 20, 2024, and December 31, 2024, and approved 22   and issued by the economic development authority. 23   Sec. 24. Section 422.35, Code 2025, is amended by adding the 24   following new subsection: 25   NEW SUBSECTION   . 14. a. Subtract, to the extent included, 26   the amount of any qualifying state disaster recovery new 27   housing grant issued to a business by the economic development 28   authority. 29   b. For purposes of this subsection, qualifying state 30   disaster recovery new housing grant means an award of a state 31   disaster recovery new housing grant that was applied for 32   between August 20, 2024, and December 31, 2024, and approved 33   and issued by the economic development authority. 34   Sec. 25. EFFECTIVE DATE. This division of this Act, being 35   -15-   LSB 1094XL (12) 91   nls/ko 15/ 103        

  S.F. _____ H.F. _____   deemed of immediate importance, takes effect upon enactment. 1   Sec. 26. RETROACTIVE APPLICABILITY. This division of this 2   Act applies retroactively to tax years beginning on or after 3   January 1, 2024. 4   DIVISION IV 5   POST-LOSS ASSIGNMENT OF BENEFITS  RESIDENTIAL CONTRACTOR 6   Sec. 27. Section 507B.4, subsection 3, Code 2025, is amended 7   by adding the following new paragraph: 8   NEW PARAGRAPH   . v. Post-loss assignment of benefits. Any 9   violation of section 515.137A by a residential contractor. 10   Sec. 28. Section 515.137A, subsection 2, Code 2025, is 11   amended by adding the following new paragraphs: 12   NEW PARAGRAPH   . 0b. Consumer advocate means a consumer 13   advocate appointed pursuant to section 505.8, subsection 6, 14   paragraph b , subparagraph (1). 15   NEW PARAGRAPH   . 00b. Post-loss assignment means any 16   instrument by which post-loss benefits, rights, or duties of 17   a named insured under a residential property and casualty 18   insurance policy are assigned or transferred to a residential 19   contractor. The post-loss assignment must only assign the 20   insurance proceeds a named insured is entitled to receive 21   from the named insureds insurer for the repair, replacement 22   construction, or reconstruction of the named insureds 23   property. 24   Sec. 29. Section 515.137A, subsections 3, 4, and 5, Code 25   2025, are amended by striking the subsections and inserting in 26   lieu thereof the following: 27   3. A residential contractor shall be prohibited from all of 28   the following under a post-loss assignment by a named insured 29   to the residential contractor:   30   a. Rebating or offering to rebate any portion of the named 31   insureds insurance deductible as an inducement for the named 32   insured to purchase a good or service. 33   b. Imposing an administrative fee on the named insured 34   for canceling the post-loss assignment, or imposing a fee to 35   -16-   LSB 1094XL (12) 91   nls/ko 16/ 103     

  S.F. _____ H.F. _____   process the insurance check or to interact with the named 1   insureds mortgage company. 2   c. Acting as a public adjuster without being licensed under 3   chapter 522C. 4   d. Receiving payments from the named insureds insurer 5   that are unrelated to the repair, replacement construction, 6   or reconstruction work on the covered insureds property, 7   including but not limited to all of the following: 8   (1) Additional living expenses. 9   (2) Loss of use. 10   4. a. A post-loss assignment must include all of the 11   following: 12   (1) An itemized description of the work to be performed. 13   (2) An itemized description of the materials, labor, and 14   fees for the work to be performed. 15   (3) A total itemized amount to be paid for the work to be 16   performed. 17   (4) A statement that the residential contractor has made 18   no assurances that the claimed loss will be fully covered by 19   the named insureds insurance contract and shall include the 20   following notice in capitalized fourteen point type: 21   YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER 22   YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS 23   DOCUMENT BEFORE SIGNING. 24   THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS 25   ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE 26   INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR   27   REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL. POST-LOSS   28   ASSIGNMENTS ARE SUBJECT TO THE AUTHORITY OF THE IOWA INSURANCE   29   DIVISION. YOU MAY FILE A COMPLAINT WITH THE DIVISION ON THE   30   DIVISIONS INTERNET SITE OR CALL THE DIVISION AT (telephone 31   number). 32   (5) In capitalized fourteen point type and located in the 33   immediate proximity of the space reserved in the assignment for 34   the signature of the named insured, the following notice: 35   -17-   LSB 1094XL (12) 91   nls/ko 17/ 103  

  S.F. _____ H.F. _____   YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT FOR ANY REASON 1   WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE LATER OF 2   THE DATE THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED OR THE DATE 3   ON WHICH YOU RECEIVE A COPY OF THE FULLY EXECUTED POST-LOSS 4   ASSIGNMENT. IF MAILED, THE CANCELLATION MUST BE POSTMARKED 5   BEFORE THE FIVE (5) BUSINESS DAY DEADLINE. 6   YOU MUST CANCEL THE POST-LOSS ASSIGNMENT IN WRITING AND 7   THE CANCELLATION MUST BE DELIVERED TO (name and address 8   of residential contractor as provided by the residential 9   contractor). IF THE ASSIGNEE HAS NOT BEGUN SUBSTANTIALLY 10   PERFORMING WORK ON THE PROPERTY, YOU MAY CANCEL THIS POST-LOSS 11   ASSIGNMENT WITHOUT PENALTY AFTER AT LEAST THIRTY (30) CALENDAR 12   DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 13   COMMENCE, OR AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER 14   THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED IF THE POST-LOSS 15   ASSIGNMENT DOES NOT CONTAIN A COMMENCEMENT DATE. 16   IF YOU CANCEL THIS POST-LOSS ASSIGNMENT, THE RESIDENTIAL 17   CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN ALL 18   PAYMENTS OR DEPOSITS YOU HAVE MADE. 19   (6) A provision that requires the assignee to indemnify and 20   hold harmless the assignor from liabilities, damages, losses, 21   and costs, including but not limited to attorney fees related 22   to the loss claim. 23   b. A post-loss assignment shall not impair the interest of 24   a mortgagee listed on the declarations page of the property and 25   casualty insurance policy that is the subject of the post-loss 26   assignment. All mortgagees shall be named as a co-payee for 27   the payment of benefits under a property and casualty insurance 28   policy covering residential real estate. 29   c. A post-loss assignment shall only authorize a residential 30   contractor to be named as a co-payee, along with the named 31   insured and all mortgagees, for the payment of benefits under 32   a property and casualty insurance policy covering residential 33   real estate.   34   d. A post-loss assignment shall not prevent or inhibit 35   -18-   LSB 1094XL (12) 91   nls/ko 18/ 103  

  S.F. _____ H.F. _____   an insurer from communicating with the named insured or a 1   mortgagee listed on the declarations page of the property and 2   casualty insurance policy that is the subject of the post-loss 3   assignment. 4   e. An electronic copy of the fully executed post-loss 5   assignment shall be provided to the insurer of the residential 6   real estate, the named insured, and all mortgagees of the 7   damaged residential real estate within five business days after 8   execution of the post-loss assignment. A paper copy shall be 9   provided to the insurer, a named insured, and any mortgagee of 10   the damaged residential real estate within five business days 11   of a request by the insurer, the named insured, or a mortgagee. 12   f. A residential contractor named in a post-loss assignment 13   must cooperate with the insurer of the damaged residential 14   real estate in a claim investigation by providing documents 15   and records requested by the insurer and complying with each 16   post-loss duty included in the named insureds insurance 17   policy. 18   5. a. A named insured shall have the right to cancel a 19   post-loss assignment without penalty or fee under all of the 20   following circumstances: 21   (1) For any reason within five business days from the 22   date on which the named insured receives a copy of the fully 23   executed post-loss agreement. 24   (2) The assignee has not substantially performed work on 25   the property that is the subject of the post-loss assignment at 26   least thirty calendar days after the date work on the property 27   was scheduled to commence. 28   (3) The assignee has not begun substantial work on the 29   property that is the subject of the post-loss assignment within 30   thirty calendar days after the date the insured received a 31   fully executed copy of the executed post-loss assignment and 32   the post-loss assignment does not contain a commencement date. 33   b. The cancellation shall be made in writing. Within ten 34   business days of the date of the written cancellation, the 35   -19-   LSB 1094XL (12) 91   nls/ko 19/ 103  

  S.F. _____ H.F. _____   residential contractor shall tender to the named insured, the 1   landowner, or the possessor of the real estate, all payments, 2   partial payments, or deposits that have been made by such 3   person. 4   6. Any written contract, repair estimate, or work order 5   prepared by a residential contractor to provide goods or 6   services to be paid from the proceeds of a property and 7   casualty insurance policy pursuant to a post-loss assignment 8   shall include, in capitalized fourteen point type, the notice 9   as provided in section 103A.71, subsection 4, paragraph a , 10   which shall be signed by the named insured, and sent to the 11   named insureds insurer prior to payment to the residential 12   contractor of proceeds under the applicable insurance policy. 13   7. For a minimum of seventy-two hours following a 14   catastrophic disaster, a residential contractor shall 15   not enter into a contract with an insured that includes a 16   post-loss assignment. If the commissioner deems the severity 17   of the catastrophic disaster to have placed people under 18   duress, the commissioner shall immediately dispatch the 19   consumer advocate and other personnel to the disaster area to 20   provide consumer guidance. If, after a public hearing, the 21   commissioner determines that, due to the scope and severity 22   of the catastrophic disaster, additional time is necessary to 23   safely deploy additional consumer protection resources, the 24   commissioner may extend the time period that a residential 25   contractor shall not enter into a contract with an insured that 26   includes a post-loss assignment for an additional seventy-two 27   hours.   28   8. A post-loss assignment entered into with a residential 29   contractor shall be void if the residential contractor violates 30   this section.   31   9. A violation of this section by a residential contractor 32   shall be an unfair practice pursuant to section 507B.4. 33   DIVISION V   34   PUBLIC, INDEPENDENT, AND STAFF ADJUSTERS   35   -20-   LSB 1094XL (12) 91   nls/ko 20/ 103  

  S.F. _____ H.F. _____   Sec. 30. Section 507B.4, subsection 3, Code 2025, is amended 1   by adding the following new paragraph: 2   NEW PARAGRAPH   . v. Adjuster financial responsibility. 3   Failure of an adjuster to comply with section 522C.7. 4   Sec. 31. Section 522B.5A, subsection 2, paragraphs c and e, 5   Code 2025, are amended to read as follows: 6   c. A renewal, reinstatement, or reissuance of a license 7   if the license of a producer has been revoked or suspended 8   pursuant to section 522B.11 , the license of a public   an 9   adjuster has been revoked or suspended pursuant to section 10   522C.6   522C.13 , or the license of a viatical settlement 11   provider or viatical settlement broker has been revoked or 12   suspended pursuant to section 508E.4 . 13   e. An initial license as a public   an adjuster in this state. 14   Sec. 32. Section 522C.1, Code 2025, is amended to read as 15   follows: 16   522C.1 Purpose. 17   The purpose of this chapter is to govern the qualifications 18   and procedures for licensing public   adjusters in this state, 19   and to specify the duties of and restrictions on public 20   adjusters, including limitation of such licensure to assisting 21   insureds only with first-party claims. 22   Sec. 33. Section 522C.2, Code 2025, is amended by striking 23   the section and inserting in lieu thereof the following: 24   522C.2 Definitions. 25   As used in this chapter, unless the context otherwise 26   requires: 27   1. Adjuster means a public adjuster, an independent 28   adjuster, or a licensed staff adjuster. A person that acts as 29   an adjuster solely for a crop hail insurance or a multiperil 30   crop insurance claim shall not be subject to this chapter. 31   2. Amount of loss means the monetary amount determined to 32   be necessary to properly repair or replace damage related to a 33   covered peril, and is limited to all applicable coverages for 34   covered items associated with the claim.   35   -21-   LSB 1094XL (12) 91   nls/ko 21/ 103          

  S.F. _____ H.F. _____   3. Business entity means a corporation, association, 1   partnership, limited liability company, limited liability 2   partnership, or any other legal entity. 3   4. a. Catastrophic disaster means an event that results 4   in all of the following: 5   (1) A large number of deaths or injuries. 6   (2) Extensive damage or destruction of facilities that 7   provide and sustain human needs. 8   (3) An overwhelming demand on state and local response 9   resources and mechanisms. 10   (4) A severe long-term effect on general economic activity. 11   (5) A severe effect on state, local, and private sector 12   capabilities to commence and sustain disaster response 13   activities. 14   b. Catastrophic disaster includes a major disaster 15   declaration by the president of the United States or a state of 16   disaster emergency proclamation by the governor. 17   5. Commissioner means the commissioner of insurance. 18   6. Consumer advocate means a consumer advocate appointed 19   pursuant to section 505.8, subsection 6, paragraph b , 20   subparagraph (1). 21   7. Disciplinary matter means but is not limited to a 22   person who is the subject of an investigation, complaint, or 23   pending administrative action in this state or any other state. 24   8. Financial interest means but is not limited to a fee, 25   commission, or other valuable consideration. 26   9. First-party claim means a claim filed by a named 27   insured under an insurance policy against which the claim is 28   made. 29   10. Home state means the District of Columbia, or any 30   state or territory of the United States in which an adjuster 31   maintains the adjusters principal place of residence or 32   principal place of business. 33   11. Independent adjuster means a person who does all of 34   the following: 35   -22-   LSB 1094XL (12) 91   nls/ko 22/ 103  

  S.F. _____ H.F. _____   a. Contracts for compensation with insurers or 1   self-insurers, and is treated by the insurer or self-insurer as 2   an independent contractor and not as an employee as that term 3   is described in 26 C.F.R. 31.3121(d)(1). 4   b. Investigates, negotiates, or settles property, 5   casualty, or workers compensation claims for insurers or for 6   self-insurers. 7   12. Insured means a person covered under an insurance 8   policy against which a claim is made. 9   13. NAIC means the national association of insurance 10   commissioners. 11   14. NIPR gateway means the communication network developed 12   and operated by the national insurance producer registry that 13   links state insurance regulators with regulated entities to 14   facilitate the electronic exchange of adjuster information, 15   including but not limited to license applications, license 16   renewals, appointments, and terminations. 17   15. Person means an individual or a business entity. 18   16. Producer database means the national database of 19   insurance producers maintained by the NAIC. 20   17. Public adjuster means a person who, for compensation 21   or other thing of value, does any of the following: 22   a. Acts for or aids an insured in negotiating or affecting 23   the settlement of a first-party claim for loss or damage to 24   real or personal property of an insured. 25   b. Advertises for employment as a public adjuster of 26   first-party insurance claims or otherwise solicits business or 27   represents to the public that the person is a public adjuster 28   of first-party insurance claims for loss or damage to real or 29   personal property of an insured. 30   c. Directly or indirectly solicits business investigating 31   or adjusting losses, or advising an insured about first-party 32   claims for loss or damage to real or personal property of the 33   insured.   34   18. Reinstatement means the reinstatement of a suspended 35   -23-   LSB 1094XL (12) 91   nls/ko 23/ 103  

  S.F. _____ H.F. _____   license which was suspended in connection with a disciplinary 1   matter, and that has not expired or been terminated during the 2   suspension period. 3   19. Reissuance means the issuance of a new license 4   following the revocation of a license, the suspension and 5   subsequent termination of a license, or the forfeiture of a 6   license in connection with a disciplinary matter. 7   20. Staff adjuster means a person who is directly employed 8   by an insurer or self-insurer to investigate, negotiate, or 9   settle property, casualty, or workers compensation claims. 10   21. Uniform business entity application means the most 11   recent version of NAICs uniform application for business 12   entity license and registration. 13   22. Uniform individual application means the most recent 14   version of NAICs uniform application for individual adjuster 15   or apprentice license and registration. 16   Sec. 34. Section 522C.3, Code 2025, is amended by striking 17   the section and inserting in lieu thereof the following: 18   522C.3 Authority of the commissioner. 19   The commissioner may adopt rules pursuant to chapter 17A as 20   necessary to administer and enforce this chapter, which may 21   include but are not limited to all of the following: 22   1. Advertising standards. 23   2. Continuing education requirements for licensees. 24   3. Contracts between public adjusters and insureds. 25   4. Required disclosures by licensees. 26   5. Examinations for licensure.   27   6. Exemptions. 28   7. License bonds, and errors and omissions insurance   29   requirements. 30   8. License requirements and exclusions. 31   9. Prohibited practices. 32   10. Record retention requirements. 33   11. Reporting requirements. 34   12. Requirements and limitations on fees charged by public 35   -24-   LSB 1094XL (12) 91   nls/ko 24/ 103  

  S.F. _____ H.F. _____   adjusters. 1   13. Standards for reasonableness of payment. 2   14. Standards of conduct. 3   15. Penalties. 4   Sec. 35. Section 522C.4, Code 2025, is amended by striking 5   the section and inserting in lieu thereof the following: 6   522C.4 License required. 7   1. A person shall not act as, or represent that the person 8   is, a public adjuster or an independent adjuster in this state 9   unless the person is licensed under this chapter. 10   2. A license as an adjuster shall not be required of any of 11   the following: 12   a. A staff adjuster; however, staff adjusters shall comply 13   with all other provisions of this chapter not including section 14   522C.7. 15   b. An attorney licensed to practice law in the state when 16   acting within their professional capacity as an attorney. 17   c. A person employed only for the purpose of obtaining facts 18   surrounding a loss, or furnishing technical assistance to a 19   licensed adjuster, including but not limited to a photographer, 20   estimator, private investigator, engineer, and handwriting 21   expert. 22   Sec. 36. Section 522C.5, Code 2025, is amended by striking 23   the section and inserting in lieu thereof the following: 24   522C.5 Application for license. 25   1. A person applying for an adjuster license shall complete 26   a uniform individual application or a uniform business entity 27   application through the NIPR gateway or as otherwise prescribed 28   by the commissioner. 29   2. To determine an applicants eligibility for licensure, 30   the commissioner may require a criminal history check pursuant 31   to section 522B.5A. 32   Sec. 37. NEW SECTION   . 522C.5A Individual applicants  33   resident adjuster. 34   Prior to approving an individuals application for a 35   -25-   LSB 1094XL (12) 91   nls/ko 25/ 103   

  S.F. _____ H.F. _____   resident adjuster license, the commissioner shall find that the 1   applicant meets all of the following requirements: 2   1. This state is the applicants home state. 3   2. The applicant has not committed any act that is a ground 4   for denial, suspension, or revocation of a license under 5   section 522C.13. 6   3. The applicant has the requisite character and competence 7   to be licensed as an adjuster, as may be determined by the 8   commissioner. 9   4. The applicant is financially responsible pursuant to 10   section 522C.7. 11   5. The applicant has paid all fees required under this 12   chapter. 13   6. The applicant maintains an office in the applicants home 14   state with public access by reasonable appointment or regular 15   business hours. 16   7. The applicant is at least eighteen years of age. 17   8. The applicant successfully passed the adjuster 18   examination pursuant to section 522C.8. 19   9. The applicant submitted contracts and any subsequent 20   contract modification to the commissioner for review and 21   approval prior to use. A contract that has been filed is 22   deemed to be approved unless disapproved or additional 23   information is requested by the commissioner within thirty 24   calendar days of receipt of the filing by the commissioner. 25   10. The applicant has obtained any necessary authority from 26   the secretary of state to transact business in this state. 27   Sec. 38. NEW SECTION   . 522C.5B Individual applicants  28   nonresident adjuster. 29   Before approving a nonresident applicants application for 30   a nonresident adjuster license, the commissioner shall find 31   that the nonresident applicant meets all of the following 32   requirements: 33   1. The nonresident applicant has not committed any act that 34   is a ground for denial, suspension, or revocation of a license 35   -26-   LSB 1094XL (12) 91   nls/ko 26/ 103   

  S.F. _____ H.F. _____   under section 522C.13. 1   2. The nonresident applicant is licensed as a resident 2   adjuster and in good standing in the nonresident applicants 3   home state. If the nonresident applicants resident license 4   in the nonresident applicants home state terminates for any 5   reason, a license issued to a nonresident applicant under this 6   section shall become inactive, unless the termination is due to 7   the nonresident applicant being issued a new resident adjuster 8   license in the nonresident applicants home state and the home 9   state has reciprocity with this state. 10   3. The nonresident applicant has submitted a request for 11   licensure to the division in a form and manner prescribed by 12   the commissioner. 13   4. The nonresident applicant has the requisite character 14   and competence to be licensed as an adjuster, as may be 15   determined by the commissioner. 16   5. The nonresident applicant is financially responsible 17   pursuant to section 522C.7. 18   6. The nonresident applicant has paid all fees required 19   under this chapter. 20   7. The nonresident applicant has obtained any necessary 21   authority from the Iowa secretary of state to transact business 22   in this state. 23   8. The nonresident applicant filed contracts with the 24   commissioner for review and approval prior to use. A contract 25   that has been filed is deemed to be approved unless disapproved 26   or additional information is requested by the commissioner 27   within thirty calendar days of receipt of the filing by the 28   commissioner. 29   9. The nonresident applicant successfully passed the 30   adjuster examination pursuant to section 522C.8. 31   Sec. 39. NEW SECTION   . 522C.5C Business applicants  32   resident public adjuster or independent adjuster. 33   Prior to approving a business entitys application for a 34   license for a resident public adjuster or resident independent 35   -27-   LSB 1094XL (12) 91   nls/ko 27/ 103   

  S.F. _____ H.F. _____   adjuster, the commissioner shall find that the business entity 1   meets all of the following requirements: 2   1. The business entity has designated an individual 3   adjuster licensed in this state to be responsible for the 4   business entitys compliance with the insurance laws and 5   administrative rules of this state. 6   2. The business entity has not committed any act that is a 7   ground for denial, suspension, or revocation of a license under 8   section 522C.13. 9   3. The business entity has the requisite character and 10   competence to be licensed as an adjuster, as may be determined 11   by the commissioner. 12   4. The business entity is financially responsible pursuant 13   to section 522C.7. 14   5. The business entity has paid all fees required under this 15   chapter. 16   6. The business entity maintains an office in the 17   business entitys home state with public access by reasonable 18   appointment or regular business hours. 19   7. The business entity submitted contracts and any 20   subsequent contract modification to the commissioner for review 21   and approval prior to use. A contract that has been filed 22   is deemed to be approved unless disapproved or additional 23   information is requested by the commissioner within thirty 24   calendar days of receipt of the filing by the commissioner. 25   8. The business entity has obtained any necessary authority 26   from the Iowa secretary of state to transact business in this 27   state.   28   Sec. 40. NEW SECTION   . 522C.5D Business applicants  29   nonresident business entity. 30   Before approving a nonresident business entitys application 31   for a nonresident public adjuster license or a nonresident 32   independent adjuster license, the commissioner shall find that 33   the nonresident business entity meets all of the following 34   requirements: 35   -28-   LSB 1094XL (12) 91   nls/ko 28/ 103   

  S.F. _____ H.F. _____   1. The nonresident business applicant has designated an 1   individual adjuster licensed in this state to be responsible 2   for the nonresident business applicants compliance with the 3   insurance laws and administrative rules of this state. 4   2. The nonresident business applicant has not committed any 5   act that is a ground for denial, suspension, or revocation of a 6   license under section 522C.13. 7   3. The nonresident business applicant has the requisite 8   character and competence to be licensed as an adjuster, as may 9   be determined by the commissioner. 10   4. The nonresident business applicant is financially 11   responsible pursuant to section 522C.7. 12   5. The nonresident business applicant has paid all fees 13   required under this chapter. 14   6. The nonresident business applicant maintains an office 15   in the nonresident business applicants home state with public 16   access by reasonable appointment or regular business hours. 17   7. The nonresident business applicant submitted contracts 18   and any subsequent contract modification to the commissioner 19   for review and approval prior to use. A contract that has been 20   filed is deemed to be approved unless disapproved or additional 21   information is requested by the commissioner within thirty 22   calendar days of receipt of the filing by the commissioner. 23   8. The nonresident business applicant has obtained any 24   necessary authority from the Iowa secretary of state to 25   transact business in this state. 26   Sec. 41. Section 522C.6, Code 2025, is amended by striking 27   the section and inserting in lieu thereof the following: 28   522C.6 Fees  license issuance, renewal, or reinstatement, 29   and examination.   30   Fees for a license as an adjuster shall be as follows: 31   1. Any applicable fee for a criminal history check pursuant 32   to section 522B.5A.   33   2. The fee for issuance or renewal of an adjuster license is 34   fifty dollars for a consecutive twenty-four-month period. 35   -29-   LSB 1094XL (12) 91   nls/ko 29/ 103  

  S.F. _____ H.F. _____   3. The fee for reinstatement of an adjuster license is fifty 1   dollars. 2   4. The fee for a reinstatement or reissuance of an adjuster 3   license due to a disciplinary action under section 522C.15 is 4   one hundred dollars. 5   5. The commissioner may charge a reasonable fee for the 6   compilation and production of adjuster licensing records. 7   6. The fee for an examination under section 522C.8 may 8   be set by a third-party testing service under contract with 9   the division to administer the examination. The fee must be 10   approved by the division. 11   7. Fees shall be paid electronically through the NIPR 12   gateway. 13   Sec. 42. NEW SECTION   . 522C.7 Financial responsibility. 14   1. Prior to issuance of a license under section 522C.5A, 15   522C.5B, 522C.5C, or 522C.5D, an applicant shall secure 16   evidence of financial responsibility through a surety bond 17   as prescribed by the commissioner. The surety bond shall be 18   executed and issued by an insurer authorized to issue surety 19   bonds in this state and meet the following requirements: 20   a. The surety bond shall be a minimum of fifty thousand 21   dollars. 22   b. The surety bond shall be in favor of the state and 23   specifically authorize recovery by the commissioner on behalf 24   of any person in this state who sustains damages as the result 25   of an adjusters erroneous act, failure to act, fraud, or 26   unfair or deceptive act or practice under section 507B.4. 27   c. The surety bond shall not be terminated without prior 28   written notice filed with the division a minimum of thirty 29   calendar days prior to termination. 30   2. The division may request that an adjuster provide 31   evidence of financial responsibility at any time the division 32   deems relevant. 33   3. An adjuster shall immediately notify the division if the 34   adjusters evidence of financial responsibility terminates in 35   -30-   LSB 1094XL (12) 91   nls/ko 30/ 103   

  S.F. _____ H.F. _____   violation of subsection 1, paragraph c , or becomes impaired, 1   and the adjusters license shall become inactive until the 2   adjuster provides the division with evidence of financial 3   responsibility. 4   Sec. 43. NEW SECTION . 522C.8 Examination. 5   1. An individual applying for a license under this chapter 6   shall pass a written examination, unless exempt pursuant to 7   section 522C.9. The examination shall test the knowledge of 8   the individual concerning the duties and responsibilities of 9   an adjuster and the insurance laws and administrative rules 10   of this state, and shall be conducted as prescribed by the 11   division. 12   2. Each individual applying for examination shall remit the 13   examination fee under section 522C.6. 14   3. An individual who fails to appear for a scheduled 15   examination, or who fails to pass the examination, may reapply 16   for examination and must remit the required fee to be scheduled 17   for another examination. 18   4. The results of an examination shall be valid to submit 19   for licensure for ninety calendar days after the date of the 20   examination. 21   Sec. 44. NEW SECTION   . 522C.9 Examination  exemption. 22   1. An individual who applies for a nonresident license 23   under this chapter and who was previously a licensed adjuster 24   in another state that required an examination that included 25   Iowa-specific statutes and administrative rules shall not be 26   required to apply for examination under section 522C.8. 27   2. An individual who relocates to this state and who was a   28   licensed adjuster in another state that required an examination 29   that included Iowa-specific statutes and administrative rules 30   shall not be required to apply for examination under section 31   522C.8 if the individual submits an application for a resident 32   adjuster license under section 522C.5A within ninety calendar 33   days of establishing legal residency, and any of the following 34   apply: 35   -31-   LSB 1094XL (12) 91   nls/ko 31/ 103    

  S.F. _____ H.F. _____   a. The individual is currently a licensed adjuster in the 1   state from which the applicant relocated. 2   b. The state from which the applicant relocated issues 3   a certification that the applicant is licensed and in good 4   standing. 5   c. The producer database records of the state from which 6   the applicant relocated, or records maintained by the NAIC or 7   a NAIC affiliate or subsidiary, indicate that the adjuster 8   is currently licensed or had been licensed, and is in good 9   standing. 10   Sec. 45. NEW SECTION   . 522C.10 Public adjuster and insured 11    contract for services. 12   1. a. A public adjuster shall not provide services to an 13   insured until a written contract with the insured has been 14   executed on a form filed with and approved by the commissioner 15   pursuant to section 522C.5A, subsection 9, section 522C.5B, 16   subsection 8, section 522C.5C, subsection 7, or section 17   522C.5D, subsection 7. The contract must have a heading that 18   indicates the contract is a public adjuster contract and must 19   contain all of the following: 20   (1) The full name, address, telephone number, and license 21   number of the public adjuster presenting and negotiating the 22   contract and, if applicable, the full name, address, telephone 23   number, and license number of the business entity the public 24   adjuster is associated with. 25   (2) The insureds full name, street address, insurance 26   company name, and, if known or upon notification, the insurance 27   policy number and claim number. 28   (3) A description of the insureds loss claim and the 29   address at which the loss is located, if applicable. 30   (4) A description of services to be provided by the public 31   adjuster on behalf of the insured. 32   (5) A signature of the public adjuster and of the insured, 33   and the date the public adjuster and the insured each signed 34   the contract. 35   -32-   LSB 1094XL (12) 91   nls/ko 32/ 103   

  S.F. _____ H.F. _____   (6) An attestation that the public adjuster has a surety 1   bond pursuant to section 522C.7. 2   (7) An explanation of the amount payable to the public 3   adjuster, and how the amount is calculated, which may include 4   any of the following: 5   (a) If an hourly rate, the contract shall state the hourly 6   rate and how the rate is applied to the hours of service 7   provided by the public adjuster to calculate the amount 8   payable. 9   (b) If a flat fee, the contract must state the exact amount 10   payable to the public adjuster. 11   (c) If a percentage of settlement, the contract must state 12   the exact percentage applied to the settlement on the claim. 13   (d) If any other consideration, the contract must detail how 14   the amount payable is calculated or determined. 15   (8) A public adjuster may charge a reasonable fee that shall 16   not exceed any of the following: 17   (a) Fifteen percent of all claim payments approved by the 18   insurer after the date the contract is fully executed for any 19   noncatastrophic disaster insurance claim settlement. 20   (b) Ten percent of all claim payments approved by the 21   insurer after the date the contract is fully executed for any 22   catastrophic disaster insurance claim settlement. 23   (9) That compensation for any reopened or supplemental 24   claim may not exceed the limitations set forth in the contract. 25   (10) That the insured has the right to agree to or reject 26   a loss settlement even if the public adjuster objects to the 27   insureds decision. 28   (11) The initial expenses of the public adjuster that will 29   be reimbursed from the proceeds of the claim payment shall be 30   specified by expense type, with reimbursement estimates set 31   forth in the contract. Any additional expenses for which the 32   public adjuster requests reimbursement shall be disclosed in 33   writing to the insured, and must be approved by the insured 34   prior to reimbursement. 35   -33-   LSB 1094XL (12) 91   nls/ko 33/ 103  

  S.F. _____ H.F. _____   (12) A statement that the public adjuster shall not render 1   services or perform acts that constitute the practice of law. 2   (13) A statement that the public adjuster shall not act on 3   behalf of or aid any person in negotiation or settlement of a 4   claim related to bodily injury, death, or noneconomic damages. 5   (14) The process for rescinding the contract, including 6   the date by which rescission of the contract by the public 7   adjuster or the insured must occur. The public adjuster 8   shall provide notice of the insureds rights under chapter 9   555A, and the insured may rescind the contract as provided in 10   chapter 555A. A contract shall not be construed to prevent an 11   insured from pursuing a civil remedy after the revocation or 12   cancellation period. If the insured rescinds the contract, 13   anything of value given by the insured shall be returned to the 14   insured within fifteen business days following receipt of the 15   cancellation notice by the public adjuster. 16   b. A contract provision shall not be redacted in a copy of 17   the contract submitted to the commissioner. Such redaction 18   shall constitute a violation of this chapter, and shall be 19   subject to penalties under sections 522C.13 and 522C.14. 20   2. If the insurer, no later than five calendar days 21   after the date on which the insureds loss is reported to 22   the insurer, either pays or commits in writing to pay to the 23   insured the policy limit of the insureds insurance policy, the 24   public adjuster shall: 25   a. Inform the insured that the total amount of loss claimed 26   by the insured may not be agreed to by the insurer. 27   b. Only be entitled to reasonable compensation from the 28   insured for services provided on behalf of the insured based on 29   the time spent on the claim, and the expenses incurred by the 30   public adjuster, until the date the insurer pays the claim or 31   provides the insured with a written commitment that the insurer 32   will pay the claim. 33   3. A public adjuster contract shall not contain a provision 34   that does any of the following: 35   -34-   LSB 1094XL (12) 91   nls/ko 34/ 103  

  S.F. _____ H.F. _____   a. Allows the public adjusters percentage of a settlement 1   to be collected if money is still due from an insurer, or that 2   allows the public adjuster to collect the entire percentage 3   of a settlement from any single payment issued by an insurer 4   rather than as a percentage of each payment issued by the 5   insurer. 6   b. Requires or permits the insured to authorize an insurer 7   to issue a check only in the name of the public adjuster. 8   c. Imposes collection costs or late fees. 9   d. Allows the public adjusters compensation to be increased 10   based on the fact that a claim is litigated. 11   e. Precludes either an insured or the public adjuster from 12   pursuing civil remedies. 13   f. Restricts an insureds right to initiate or maintain 14   direct communication with the insureds attorney or insurer, 15   with the insurers adjuster or attorney, or any other person 16   regarding settlement of the insureds claim. 17   g. Grants the public adjuster power of attorney or limited 18   power of attorney of the insured. 19   h. Requires the insured to use a particular business entity 20   or individual for the reconstruction, repair, or restoration of 21   the insureds damaged property. 22   4. Prior to execution of the contract, the public adjuster 23   shall review the terms of the contract with the insured 24   and provide the insured with a separate disclosure document 25   regarding the claim process that shall include the following: 26   DISCLOSURE DOCUMENT   27   REGARDING THE CLAIM PROCESS   28   1. PROPERTY INSURANCE POLICIES OBLIGATE THE INSURED TO   29   PRESENT A CLAIM TO THE INSUREDS INSURER FOR CONSIDERATION. 30   THERE ARE THREE TYPES OF ADJUSTERS THAT MAY BE INVOLVED IN THAT   31   PROCESS. THE THREE TYPES ARE AS FOLLOWS:   32   (A) STAFF ADJUSTER IS DEFINED IN IOWA CODE SECTION 522C.2. 33   A STAFF ADJUSTER IS EMPLOYED BY THE INSURER. THEY WILL NOT   34   CHARGE THE INSURED A FEE.   35   -35-   LSB 1094XL (12) 91   nls/ko 35/ 103  

  S.F. _____ H.F. _____   (B) INDEPENDENT ADJUSTER IS DEFINED IN IOWA CODE SECTION 1   522C.2. AN INDEPENDENT ADJUSTER IS CONTRACTED BY THE INSURER 2   TO REPRESENT THE INSURER. THEY WILL NOT CHARGE THE INSURED A 3   FEE. 4   (C) PUBLIC ADJUSTER IS DEFINED IN IOWA CODE SECTION 5   522C.2. A PUBLIC ADJUSTER IS NOT AN EMPLOYEE OR REPRESENTATIVE 6   OF THE INSURER. THEY ARE HIRED BY THE INSURED TO ASSIST IN THE 7   PREPARATION, PRESENTATION, AND SETTLEMENT OF A CLAIM. 8   2. THE INSURED IS NOT REQUIRED TO HIRE A PUBLIC ADJUSTER 9   TO HELP THE INSURED MEET THE INSUREDS OBLIGATIONS UNDER THE 10   INSUREDS POLICY, BUT HAS THE RIGHT TO DO SO. 11   3. THE INSURED HAS THE RIGHT TO INITIATE DIRECT 12   COMMUNICATIONS WITH THE INSUREDS ATTORNEY, THE INSUREDS 13   INSURANCE COMPANY, THE INSURANCE COMPANYS STAFF ADJUSTER OR 14   INDEPENDENT ADJUSTER, THE INSURANCE COMPANYS ATTORNEY, OR ANY 15   OTHER PERSON REGARDING THE SETTLEMENT OF THE INSUREDS CLAIM. 16   4. THE INSURED MAY BE RESPONSIBLE FOR ANY AMOUNT PAYABLE TO 17   A PUBLIC ADJUSTER RELATED TO ANY PORTION OF A CLAIM THAT WAS 18   PREVIOUSLY PAID IN PART, IN FULL, OR SETTLED BY THE INSURER 19   PRIOR TO A CONTRACT BEING ENTERED INTO BETWEEN THE PUBLIC 20   ADJUSTER AND THE INSURED. 21   5. THE AMOUNT PAYABLE TO A PUBLIC ADJUSTER, WHICH CAN 22   INCLUDE A SALARY, FEE, COMMISSION, OR OTHER CONSIDERATION AS 23   OUTLINED IN THE CONTRACT, IS THE OBLIGATION OF THE INSURED, NOT 24   THE INSURER. 25   6. THE INSURED MAY FILE A COMPLAINT WITH THE IOWA INSURANCE 26   DIVISION BY CALLING (877) 955-1212 OR VISITING IID.IOWA.GOV. 27   5. An original copy of a completed contract shall be 28   provided to the public adjuster and to the insured. The 29   commissioner may inspect the original contract in possession of 30   the public adjuster at any time without prior notice. 31   6. Within seventy-two hours of executing a contract with an 32   insured under this section, the public adjuster shall provide 33   the insureds insurer a notification letter, which has been 34   signed by the insured, authorizing the public adjuster to 35   -36-   LSB 1094XL (12) 91   nls/ko 36/ 103  

  S.F. _____ H.F. _____   represent the insureds interest. The insurer shall verify 1   that the public adjuster is currently licensed with the 2   division. 3   7. A contract between a public adjuster and an insured 4   executed on a form in violation of subsection 1, paragraph a , 5   shall not be enforceable in this state. 6   Sec. 46. NEW SECTION   . 522C.11 Adjusters  standards of 7   conduct. 8   1. A public adjuster shall serve with objectivity and 9   complete loyalty to the interest of the insured. A public 10   adjuster shall render to the insured in good faith information, 11   counsel, and service, that in the opinion of the public 12   adjuster will best serve the insureds insurance claim needs 13   and interest. These duties extend to the claims process and 14   include providing timely responses to both the insurer and the 15   insured. 16   2. For a minimum of seventy-two hours following a 17   catastrophic disaster, to allow time for the commissioner 18   to safely deploy consumer protection resources, a public 19   adjuster shall not, in person or by telephone, directly offer 20   to contract, attempt to offer to contract, or enter into an 21   adjuster contract with an insured unless the offer to contract, 22   the attempt to offer to contract, or entering into a contract 23   is initiated by a consumer. If the commissioner deems the 24   severity of the catastrophic disaster to have placed people 25   under duress, the commissioner shall immediately dispatch the 26   consumer advocate and other personnel to the disaster area to 27   provide consumer guidance. If, after a public hearing, the 28   commissioner determines that, due to the scope and severity 29   of the catastrophic disaster, additional time is necessary to 30   safely deploy additional consumer protection resources, the 31   commissioner may extend the time period that a public adjuster 32   shall not offer to contract, attempt to offer to contract, or 33   enter into a contract for an additional seventy-two hours. 34   3. A public adjuster shall not solicit between the hours 35   -37-   LSB 1094XL (12) 91   nls/ko 37/ 103   

  S.F. _____ H.F. _____   of 8:00 p.m. and 9:00 a.m. Solicitation shall include but is 1   not limited to a door-to-door sale as that term is defined in 2   section 555A.1. 3   4. A public adjuster, or an independent adjuster, shall not 4   permit an unlicensed employee or representative of the public 5   adjuster or independent adjuster, nor any person associated 6   with a claim, to conduct business for which a license is 7   required under this chapter. 8   5. An adjuster shall not have a direct or indirect financial 9   interest in any aspect of a claim other than the amount payable 10   pursuant to the written contract with an insured under section 11   522C.10. 12   6. An adjuster shall not acquire any interest in salvage of 13   property. 14   7. An adjuster shall not undertake the adjustment of any 15   claim if the adjuster is not competent and knowledgeable as 16   to the terms and conditions of the insurance coverage, or if 17   the loss or coverage otherwise exceeds the adjusters current 18   expertise. 19   8. An independent adjuster or public adjuster shall 20   maintain all documentation relating to all estimates and 21   coverage determinations for a minimum of five years from the 22   date of completion of a settlement. 23   9. An adjuster shall not knowingly make any false oral or 24   written material statements regarding any person engaged in the 25   business of insurance, or any other adjuster, to an insured who 26   is a client or potential client. 27   10. a. An adjuster shall not reasonably act, or fail to 28   act, in any manner that obstructs or prevents an insurer or 29   adjuster from timely conducting an inspection of any part of 30   an insureds property for which there is a claim for loss or 31   damage. 32   b. If a public adjuster is unavailable after reasonable 33   request by an insurer, resulting in delay of the insurers 34   timely inspection of the property, the insured shall allow 35   -38-   LSB 1094XL (12) 91   nls/ko 38/ 103  

  S.F. _____ H.F. _____   the insurer to have access to the property without the 1   participation or presence of the public adjuster to facilitate 2   the insurers prompt inspection of the loss or damage. 3   11. An adjuster shall respond to an inquiry from an insurer 4   or an insured regarding a claim within fifteen business days 5   of the date of the inquiry unless good cause exists for delay. 6   The adjuster shall reply within fifteen business days to all 7   pertinent communications from the insured, the insurer, or a 8   representative of the insured or the insurer that reasonably 9   suggest that a response is expected. 10   12. Upon receiving notification of a claim, an insurer shall 11   provide necessary claim forms, instructions, and reasonable 12   assistance within fifteen business days of notification of the 13   claim so that first-party claimants can comply with the policy 14   conditions and the insurers reasonable requirements. 15   13. An adjuster shall not act as an appraiser and as an 16   adjuster on the same claim. 17   14. An adjuster shall not act as an umpire and as an 18   adjuster on the same claim. 19   15. A public adjuster shall not enter into a contract or 20   accept a power of attorney or limited power of attorney for an 21   insured. 22   16. a. An independent adjuster shall not act as an 23   independent adjuster and a public adjuster on the same claim. 24   b. A public adjuster shall not act as a public adjuster and 25   an independent adjuster on the same claim. 26   17. A staff adjuster may be licensed as a public adjuster 27   or as an independent adjuster, but shall be prohibited from 28   providing services as an independent adjuster or a public 29   adjuster while employed as a staff adjuster. 30   18. A public adjuster shall not agree to, or reject, any 31   loss settlement without the insureds express knowledge and 32   written consent.   33   19. An adjuster shall not engage in any act or practice 34   that is a conflict of interest. A conflict of interest shall 35   -39-   LSB 1094XL (12) 91   nls/ko 39/ 103  

  S.F. _____ H.F. _____   include but is not limited to the following: 1   a. A direct or indirect financial interest with a person 2   responsible for the reconstruction, repair, or restoration of 3   damaged property that is the subject of a claim, or with a 4   person involved in resolving a claim valuation dispute. 5   b. A direct or indirect financial interest, or other 6   valuable consideration regardless of form or amount paid to an 7   adjuster in exchange for referring an insured to an appraiser, 8   umpire, construction company, contractor, salvage company, or 9   attorney. 10   c. Being an owner, employee, agent, investor, or having 11   other financial interest in a business entity responsible for 12   the reconstruction, repair, or restoration of damaged property 13   that is the subject of a claim, or having an immediate family 14   member who is an owner, employee, agent, or investor in a 15   business entity responsible for the reconstruction, repair, 16   or restoration of a damaged property that is the subject of a 17   claim. 18   d. Entering into a written or verbal contract, or formal 19   or informal agreement, with any person that compromises the 20   adjusters duty of loyalty to the insured. 21   e. Using claim information obtained in the course of a claim 22   investigation for commercial purposes including marketing or 23   advertising for the benefit of the adjuster. 24   20. A public adjuster shall not file a complaint with 25   the division on behalf of an insured without the insureds 26   knowledge and written consent. 27   21. An adjuster shall not represent, directly or 28   indirectly, that damage has occurred at a property unless the 29   adjuster has inspected the damaged areas of the property. 30   22. An adjuster shall produce a detailed written estimate to 31   repair or replace covered damages and provide a copy to both 32   the insured and the insurer in a timely manner. 33   23. A public adjuster shall not offer to pay an insureds 34   deductible, or claim that the insureds deductible will be 35   -40-   LSB 1094XL (12) 91   nls/ko 40/ 103  

  S.F. _____ H.F. _____   waived, as an inducement to use the services of the public 1   adjuster. 2   24. An adjuster shall respond reasonably promptly to 3   inquiries by the division. 4   25. A public adjuster shall provide a detailed invoice for 5   completed services to an insured prior to requesting payment 6   for services pursuant to a contract under section 522C.10. 7   26. Funds received or held by a public adjuster on behalf of 8   an insured toward the settlement of a claim shall be: 9   a. Held in a fiduciary capacity. 10   b. Deposited by the adjuster into one or more separate 11   noninterest-bearing fiduciary trust accounts in a financial 12   institution licensed to do business in this state no later 13   than the close of the second business day from the date the 14   public adjuster received the funds, and either deposited in the 15   insureds name or in the name of the public adjuster as trustee 16   for the insured, to be held and administered as a trust account 17   for the benefit and protection of the insured. 18   c. Held separately from personal or nonbusiness funds. 19   d. Held separately from other business funds. 20   e. Listed specifically and separately, by the insureds name 21   and the amount in trust in the book of accounts and records of 22   the public adjuster. The book of accounts and records must 23   indicate the fiduciary nature of the account and any amounts 24   deposited or withdrawn. 25   f. Disbursed within thirty calendar days of receipt of an 26   invoice by the public adjuster from a contractor that completed 27   work, if the public adjuster receives approval of the insured 28   that the work was satisfactorily completed. 29   27. A public adjuster shall comply with all applicable local 30   ordinances. 31   28. An adjuster who fails to comply with this section shall 32   be subject to penalties under sections 522C.13 and 522C.14. 33   Sec. 47. NEW SECTION   . 522C.12 Adjusters  records. 34   1. An adjuster shall have a continuing duty to keep, at 35   -41-   LSB 1094XL (12) 91   nls/ko 41/ 103   

  S.F. _____ H.F. _____   the adjusters place of business, usual and customary records 1   pertaining to transactions undertaken by the adjuster. All 2   such records shall be kept available and open for inspection 3   by the division at any time during regular business hours; 4   however, the division is not entitled to inspect any records 5   prepared in anticipation of litigation or that are subject to 6   any privilege recognized in chapter 622. The records shall be 7   maintained for a minimum of five years from the date of the 8   adjuster transaction. 9   2. An adjuster who fails to comply with this section shall 10   be subject to penalties under sections 522C.13 and 522C.14. 11   Sec. 48. NEW SECTION   . 522C.13 License denial, nonrenewal, 12   suspension, or revocation. 13   1. The division may place on probation, suspend, revoke, or 14   refuse to issue or renew an adjusters license, and may levy a 15   civil penalty as provided in section 522C.14, for one or more 16   of the following causes: 17   a. The adjuster provided incorrect, misleading, incomplete, 18   or materially untrue information in a license application. 19   b. The adjuster violated an insurance law, regulation, 20   subpoena, or order of the commissioner or of a commissioner of 21   another state. 22   c. The adjuster obtained or attempted to obtain a license 23   through misrepresentation or fraud. 24   d. The adjuster improperly withheld, misappropriated, or 25   converted money or property received in the course of doing 26   business.   27   e. The adjuster was convicted of a felony. 28   f. The adjuster admitted to, or was found to have committed, 29   any unfair trade practice or fraud. 30   g. The adjuster used fraudulent, coercive, or dishonest 31   practices, or demonstrated incompetence, untrustworthiness, or 32   financial irresponsibility, or was a source of injury or loss 33   in the conduct of business in this state or elsewhere. 34   h. The adjuster had any professional license, or its 35   -42-   LSB 1094XL (12) 91   nls/ko 42/ 103   

  S.F. _____ H.F. _____   equivalent, denied, suspended, or revoked in this state or any 1   other state, province, district, or territory. 2   i. The adjuster forged anothers name to any document 3   related to the adjusters work as an adjuster. 4   j. The adjuster improperly used notes or any other reference 5   material to complete an examination for an adjuster license. 6   k. The adjuster knowingly negotiated as an adjuster with an 7   individual or business entity who is not, but is required to 8   be, licensed as an adjuster, appraiser, or umpire. 9   l. The adjuster failed to comply with an administrative or 10   court order imposing a child support obligation. 11   m. The adjuster failed to comply with an administrative 12   or court order related to repayment of loans to the college 13   student aid commission. 14   n. The adjuster failed to pay state income tax or to comply 15   with any administrative or court order directing payment of 16   state income tax. 17   o. The adjuster failed or refused to cooperate in 18   an investigation conducted by the commissioner or the 19   commissioners designee. 20   p. The adjuster intentionally misrepresented the terms of an 21   actual or proposed contract for services. 22   2. If the commissioner does not renew an adjusters license 23   or denies an application for a license, the commissioner shall 24   notify the adjuster or applicant and advise, in writing, of 25   the reason for the nonrenewal of the license or denial of 26   the application for a license. The adjuster or applicant 27   may request a hearing on the nonrenewal or denial by filing 28   a written request for a hearing within thirty calendar days 29   from the date of notice of the nonrenewal or denial. A hearing 30   shall be conducted according to section 522C.15. 31   3. The license of a business entity may be suspended, 32   revoked, placed on probation, or refused if the commissioner 33   finds, after hearing, that an individual adjusters violation 34   was known or should have been known by a licensed partner, 35   -43-   LSB 1094XL (12) 91   nls/ko 43/ 103  

  S.F. _____ H.F. _____   officer, or manager of the business entity and the violation 1   was not reported to the commissioner and corrective action was 2   not taken. 3   4. The license of a nonresident adjuster shall be 4   immediately inactive if the nonresident adjuster is placed on 5   probation, suspended, revoked, refused, or denied licensure in 6   any other state. The nonresident adjuster shall have seven 7   calendar days to alert the commissioner that the nonresident 8   adjuster has been placed on probation, suspended, revoked, 9   refused, nonrenewed, or denied licensure in another state. 10   Failure to meet the reporting deadline shall be a violation of 11   this section. 12   5. In addition to, or in lieu of, denial, probation, 13   suspension, or revocation of a license under this section, an 14   adjuster, after hearing, may be subject to a civil penalty as 15   provided in section 522C.14. 16   6. The commissioner may enforce this chapter, may conduct 17   an investigation of any suspected violation of this chapter, 18   and may impose any penalty or remedy authorized by this chapter 19   against any person who is under investigation for, or charged 20   with, a violation of this chapter even if the persons license 21   has been surrendered or has lapsed by operation of law. 22   7. a. All complaint files, investigation files, 23   investigation reports, and other investigative information 24   in the possession of the commissioner or the commissioners 25   agents that relates to adjuster discipline shall be privileged 26   and confidential, and shall not be subject to discovery, 27   subpoena, or other means of legal compulsion for release to a 28   person other than the adjuster, and shall not be admissible in 29   evidence in a judicial or administrative proceeding other than 30   a proceeding involving adjuster discipline. A final written 31   decision of the commissioner in a disciplinary proceeding shall 32   be a public record. 33   b. Investigative information in the possession of the 34   commissioner or the commissioners agents that relates to 35   -44-   LSB 1094XL (12) 91   nls/ko 44/ 103  

  S.F. _____ H.F. _____   adjuster discipline may be disclosed, at the commissioners 1   discretion. The commissioner may share documents, materials, 2   or other information, including confidential and privileged 3   documents and materials subject to this subsection, with other 4   state, federal, and international regulatory agencies, with 5   NAIC, its affiliates or subsidiaries, and with state, federal, 6   and international law enforcement authorities, provided 7   that the recipient agrees to maintain the confidentiality 8   and privileged status of the document, material, or other 9   information. 10   c. If the investigative information in the possession of the 11   commissioner or the commissioners agents indicates a crime has 12   been committed, the information shall be reported to the proper 13   law enforcement agency. 14   8. a. Pursuant to section 17A.19, subsection 6, upon an 15   appeal by the adjuster, the commissioner shall transmit the 16   entire record of the contested case to the reviewing court. 17   b. Notwithstanding section 17A.19, subsection 6, if a 18   waiver of privilege has been involuntary and evidence has been 19   received at a disciplinary hearing, the court shall issue 20   an order to withhold the identity of the individual whose 21   privilege was waived. 22   Sec. 49. NEW SECTION   . 522C.14 Civil and criminal penalties. 23   1. a. Upon a determination by the commissioner after a 24   hearing conducted pursuant to chapter 17A that an adjuster has 25   violated a provision of this chapter, the commissioner shall 26   reduce the findings of the hearing to writing and deliver a 27   copy of the findings to the adjuster. 28   b. Upon a determination by the commissioner that an adjuster 29   has engaged, is engaging, or is about to engage in any act or 30   practice constituting a violation of this chapter or a rule 31   adopted or order issued under this chapter, the commissioner 32   may take the following actions: 33   (1) Issue an order requiring the adjuster to cease and 34   desist from engaging in the conduct resulting in the violation. 35   -45-   LSB 1094XL (12) 91   nls/ko 45/ 103   

  S.F. _____ H.F. _____   (2) Assess a civil penalty against the adjuster of not more 1   than one thousand dollars for each violation of this chapter, 2   not to exceed an aggregate of ten thousand dollars. 3   (3) If the adjuster knew or reasonably should have known 4   the adjuster was in violation of this chapter, assess a 5   civil penalty of not more than five thousand dollars for each 6   violation of this chapter, not to exceed an aggregate penalty 7   of fifty thousand dollars in any one six-month period. 8   (4) (a) Issue a summary order, including a brief statement 9   of findings of fact, conclusions of law, and policy reasons for 10   the decision, and directing the adjuster to cease and desist 11   from engaging in the act or practice or to take affirmative 12   action as is necessary in the judgment of the commissioner to 13   comply with the requirements of this chapter. 14   (b) An adjuster may contest a summary order by filing, 15   within thirty calendar days from the date of the issuance of 16   the summary order, a written request for a contested case 17   proceeding and hearing as provided in chapter 17A and in 18   accordance with rules adopted by the commissioner. Section 19   17A.18A shall be inapplicable to a summary order issued under 20   this subsection. If a hearing is not requested within thirty 21   calendar days from the date of issuance of the summary order, 22   the summary order shall become final by operation of law. A 23   summary order shall remain effective from the date of issuance 24   until the date the order becomes final by operation of law, 25   or is modified or overturned by a presiding officer or court 26   following a request for hearing. 27   (c) An adjuster violating a summary order issued under this 28   subsection shall be deemed in contempt of the summary order. 29   The commissioner may petition the district court to enforce the 30   order as certified by the commissioner. The district court 31   shall find the adjuster in contempt of the order if the court 32   finds, after conducting a hearing, that the adjuster is not 33   in compliance with the order. The court may assess a civil 34   penalty against the adjuster and may issue further orders as 35   -46-   LSB 1094XL (12) 91   nls/ko 46/ 103  

  S.F. _____ H.F. _____   the court deems appropriate. 1   c. In addition to any other penalty under this section, 2   if the commissioner finds that a violation of this chapter 3   was directed, encouraged, condoned, ignored, or ratified by 4   the employer of the adjuster, the commissioner shall assess a 5   penalty to the employer. Penalties under this paragraph may be 6   retained by the commissioner under section 505.7, subsection 9. 7   2. a. A person acting as an adjuster without proper 8   licensure, or an adjuster who willfully violates any provision 9   of this chapter or an order issued under this chapter, is 10   guilty of a class D felony. If the violation results in a 11   loss of more than ten thousand dollars, the person or adjuster 12   is guilty of a class C felony. 13   b. An adjuster who steals, converts, or misappropriates 14   funds that should be held in trust under section 522C.11, is 15   guilty of a class D felony. If the violation results in a 16   loss of more than ten thousand dollars, the adjuster is guilty 17   of a class C felony. 18   c. The commissioner may refer such evidence as is available 19   concerning a violation of this chapter, or of any rule adopted 20   or order issued under this chapter, or of the failure of a 21   person to comply with the licensing requirements of this 22   chapter, to the attorney general or the proper county attorney 23   who may institute the appropriate criminal proceedings under 24   this chapter. 25   d. This chapter does not limit the power of the state to 26   punish any person for conduct that constitutes a crime under 27   any other statute. 28   3. Any contract regulated by this chapter that is entered 29   into by an insured with a person who is not a licensed public 30   adjuster in this state shall be void. If a contract is void, 31   the insured is not liable for the payment for any past services 32   rendered, or future services to be rendered, by that person. 33   Sec. 50. NEW SECTION   . 522C.15 Reinstatement or reissuance   34   of a license after disciplinary matters  forfeiture in lieu of 35   -47-   LSB 1094XL (12) 91   nls/ko 47/ 103   

  S.F. _____ H.F. _____   compliance. 1   1. a. A person licensed as an adjuster under this chapter 2   whose license has been revoked or suspended by order, or who 3   forfeited a license in connection with a disciplinary matter, 4   may apply to the commissioner for reinstatement or reissuance 5   in accordance with the terms of the order of revocation or 6   suspension, or the order accepting the forfeiture, and submit 7   to a criminal history check under section 522B.5A. 8   b. Proceedings for reinstatement or reissuance shall be 9   initiated by the applicant who shall file with the commissioner 10   an application for reinstatement or reissuance after 11   disciplinary action. An applicant shall not be eligible for 12   reinstatement or reissuance until the applicant satisfies the 13   requirements under section 522C.5, 522C.5A, 522C.5B, 522C.5C, 14   or 522C.5D, as applicable, and the examination requirements 15   under section 522C.8. An applicant may also be required to 16   submit a new or renewal adjuster application under section 17   522C.5A, 522C.5B, 522C.5C, or 522C.5D, as applicable. 18   c. An application for reinstatement or reissuance shall 19   allege facts which, if established, are sufficient to enable 20   the commissioner to determine that the basis of revocation, 21   suspension, or forfeiture of the applicants license no longer 22   exists, and must disclose if the applicant has engaged in 23   any conduct listed as a cause for licensing action that was 24   not included in the order for suspension, revocation, or 25   forfeiture. 26   d. An application for reinstatement or reissuance shall 27   allege facts which, if established, are sufficient to enable 28   the commissioner to determine that it is in the public 29   interest for the application to be granted. The commissioner 30   may determine that it is not in the public interest if the 31   applicant has engaged in any conduct listed as a cause for 32   licensing action that was not included in the order for 33   suspension, revocation, or forfeiture, or if the applicant does 34   not have the character and fitness to be a licensed adjuster 35   -48-   LSB 1094XL (12) 91   nls/ko 48/ 103  

  S.F. _____ H.F. _____   in this state. 1   e. The burden of proof to establish facts identified in 2   paragraphs c and d shall be on the applicant. 3   f. An adjuster may request reinstatement of a suspended 4   license prior to the end of the suspension term. 5   g. Unless otherwise provided by law, if an order of 6   revocation or suspension did not establish terms on which 7   reinstatement or reissuance may occur, or if the license 8   was forfeited, an initial application for reinstatement or 9   reissuance shall not be made until at least one year from the 10   date of the order of the suspension, revocation, or acceptance 11   of the forfeiture of a license. 12   2. All proceedings on an application for reinstatement or 13   reissuance, including preliminary and ancillary matters, shall 14   be held in accordance with chapter 17A. The application shall 15   be docketed in the original case in which the original license 16   was suspended, revoked, or forfeited, if the case exists. 17   3. An order of reinstatement or reissuance shall be based 18   on a written decision which incorporates findings of fact 19   and conclusions of law. An order granting an application 20   for reinstatement or reissuance may impose such terms and 21   conditions as the commissioner or the commissioners designee 22   deems appropriate, and may include one or more penalties 23   provided under section 522C.14. The order shall be a public 24   record and may be disseminated in compliance with chapter 22. 25   4. If an adjusters ordered suspension period ends prior to 26   the adjusters license expiration date and the adjuster applies 27   for reinstatement prior to the license expiration date and 28   meets all applicable requirements, the division shall reinstate 29   the license as soon as practicable but no earlier than the end 30   of the suspension period if the division, after a complete 31   review, determines the license should be reinstated.   32   5. If an adjusters license is suspended beyond the 33   adjusters license expiration date, whether due to an ordered 34   suspension time period or failure to apply for reinstatement 35   -49-   LSB 1094XL (12) 91   nls/ko 49/ 103  

  S.F. _____ H.F. _____   prior to expiration, the adjuster must apply for reissuance. 1   6. A submission of voluntary forfeiture of a license 2   shall be made in writing to the commissioner. Forfeiture of 3   a license is effective on the date of submission unless a 4   contested case proceeding is pending on the date of submission. 5   If a contested case proceeding is pending, the forfeiture 6   shall become effective upon conditions as ordered by the 7   commissioner. A forfeiture made during the pendency of a 8   contested case proceeding shall be considered a disciplinary 9   action and shall be published in the same manner as is 10   applicable to any other form of disciplinary order. 11   7. The commissioner shall not be prohibited from denying an 12   application for reinstatement or reissuance, or from bringing 13   an additional immediate action, if an adjuster has engaged in 14   an additional violation of chapter 507B or 522C, or otherwise 15   failed to meet all applicable requirements. 16   8. This section shall not apply to reinstatement of an 17   expired license or issuance of a new license that is not in 18   connection with a disciplinary matter. 19   Sec. 51. NEW SECTION   . 522C.16 Suspension for failure to 20   pay child support or state debt. 21   1. The commissioner shall deny an adjusters application 22   for license issuance, renewal, reinstatement, or reissuance; 23   suspend a current license; or revoke a currently suspended 24   license, upon receipt of a certificate of noncompliance from 25   the child support recovery unit pursuant to chapter 252J, 26   or upon receipt of a certificate of noncompliance from the 27   centralized collection unit of the department of revenue 28   pursuant to chapter 272D. 29   2. Upon receipt of a certificate of noncompliance under 30   subsection 1, the commissioner shall issue a notice to the 31   adjuster that the division will, unless the certificate of 32   noncompliance is withdrawn, deny the adjusters application 33   for license issuance, renewal, reinstatement, or reissuance,   34   suspend the adjusters current license, or revoke the 35   -50-   LSB 1094XL (12) 91   nls/ko 50/ 103   

  S.F. _____ H.F. _____   adjusters currently suspended license, thirty calendar days 1   after the date the notice is mailed. Notice shall be sent 2   to the adjusters last known address by restricted certified 3   mail, return receipt requested, or in accordance with the 4   divisions rules for service. The notice shall contain all of 5   the following: 6   a. A statement that the commissioner intends to deny 7   the adjusters application for license issuance, renewal, 8   reinstatement, or reissuance; suspend the adjusters current 9   license; or revoke the adjusters currently suspended license 10   in thirty calendar days unless the certificate of noncompliance 11   is withdrawn. 12   b. A statement that the adjuster must contact the agency 13   that issued the certificate of noncompliance to request a 14   withdrawal. 15   c. A statement that the adjuster does not have a right to 16   a hearing before the division, but that the adjuster may file 17   an application for a hearing in district court pursuant to 18   section 252J.9 or 272D.9, as applicable, and that the filing 19   of an application by the adjuster will stay the proceedings of 20   the division. 21   d. A copy of the certificate of noncompliance. 22   3. An adjuster shall keep the commissioner informed of all 23   actions taken by the district court or the issuing agency in 24   connection with a certificate of noncompliance. Within seven 25   calendar days of filing or issuance, an adjuster shall provide 26   to the commissioner a copy of all applications filed with the 27   district court pursuant to an application or hearing, all 28   court orders entered in such action, and all withdrawals of a 29   certificate of noncompliance. 30   4. If an applicant or licensed adjuster timely files an 31   application for hearing in district court and the division 32   is notified of the filing, the commissioners denial, 33   suspension, or revocation proceedings shall be stayed until 34   the division is notified by the district court, the issuing 35   -51-   LSB 1094XL (12) 91   nls/ko 51/ 103  

  S.F. _____ H.F. _____   agency, the licensee, or the applicant of the resolution of 1   the application. Upon receipt of a court order lifting the 2   stay or otherwise directing the commissioner to proceed, the 3   commissioner shall continue with the intended action described 4   in the notice. 5   5. If the commissioner does not receive a withdrawal of 6   the certificate of noncompliance from the issuing agency, or a 7   notice from a clerk of court, the issuing agency, the licensee, 8   or the applicant that an application for hearing has been filed 9   within thirty calendar days after the notice is issued, the 10   commissioner shall deny the adjusters application for license 11   issuance, renewal, reinstatement, or reissuance; suspend a 12   current license; or revoke a currently suspended license. 13   6. Upon receipt of a withdrawal of a certificate of 14   noncompliance from the issuing agency, suspension or revocation 15   proceedings shall halt and the named adjuster shall be notified 16   that the proceedings have halted. If the adjusters license 17   has already been suspended, the adjuster must apply for 18   reinstatement in accordance with section 522C.15, and the 19   license shall be reinstated if the adjuster is otherwise in 20   compliance with this chapter. If the adjusters application 21   for licensure was stayed, application processing shall resume. 22   All fees required for license renewal, reinstatement, or 23   reissuance must be paid by the adjuster, and all continuing 24   education requirements shall be satisfied, before the 25   adjusters license is renewed or reinstated after a license 26   suspension or revocation under this chapter. 27   7. The commissioner shall notify an adjuster in writing 28   through regular first class mail, or such other means as the 29   commissioner deems appropriate under the circumstances, within 30   ten calendar days of the effective date of the suspension or 31   revocation of the adjusters license, and shall also notify the 32   adjuster when the adjusters license is reinstated following 33   the commissioners receipt of a withdrawal of the certificate 34   of noncompliance. 35   -52-   LSB 1094XL (12) 91   nls/ko 52/ 103  

  S.F. _____ H.F. _____   8. Notwithstanding any provision of law to the contrary, the 1   division may share information with the child support recovery 2   unit or the centralized collection unit of the department of 3   revenue for the sole purpose of identifying adjusters subject 4   to enforcement under chapter 252J or 272D. 5   DIVISION VI 6   LICENSING AND REGULATION OF APPRAISERS AND UMPIRES 7   Sec. 52. Section 522B.5A, subsection 2, paragraph c, Code 8   2025, is amended to read as follows: 9   c. A renewal, reinstatement, or reissuance of a license 10   if the license of a producer has been revoked or suspended 11   pursuant to section 522B.11 , the license of a public adjuster 12   has been revoked or suspended pursuant to section 522C.6   13   522C.13   , or the license of a viatical settlement provider 14   or viatical settlement broker has been revoked or suspended 15   pursuant to section 508E.4 , or the license of an appraiser or 16   an umpire has been revoked or suspended pursuant to section 17   522F.20   . 18   Sec. 53. Section 522B.5A, subsection 2, Code 2025, is 19   amended by adding the following new paragraphs: 20   NEW PARAGRAPH   . f. An initial license as an appraiser in 21   this state. 22   NEW PARAGRAPH   . g. An initial license as an umpire in this 23   state. 24   Sec. 54. NEW SECTION . 522F.1 Definitions. 25   As used in this chapter, unless the context otherwise 26   requires: 27   1. Adjuster means a person licensed pursuant to chapter 28   522C.   29   2. Amount of loss means the monetary amount determined to 30   be necessary to properly repair or replace damage related to a 31   covered peril, and is limited to all applicable coverages for 32   covered items associated with the claim.   33   3. Appraiser means a person licensed as an appraiser 34   pursuant to section 522F.4. 35   -53-   LSB 1094XL (12) 91   nls/ko 53/ 103           

  S.F. _____ H.F. _____   4. Appraiser list means a list, maintained by the 1   division, of all appraisers licensed by the division. 2   5. Claimant means a person who makes a first-party claim 3   under a policy of property and casualty insurance. 4   6. Commissioner means the commissioner of insurance. 5   7. Disciplinary matter means an individual is the subject 6   of an investigation, complaint, pending administrative action, 7   or other such action in any state. 8   8. First-party claim means a claim filed by a named 9   insured under an insurance policy against which a claim is 10   made. 11   9. Good cause means a legally sufficient reason including 12   but not limited to any of the following: 13   a. A conflict of interest. 14   b. A lack of independence or an inability to competently or 15   promptly carry out the duties required under this chapter. 16   c. Any other reason that would reasonably be expected to 17   impair an appraisal. 18   10. Immediate family means an individuals parent, 19   sibling, child, grandchild, spouse, spouses of the individuals 20   children, or parents of the individuals spouse. 21   11. Insured means a person covered under an insurance 22   policy against which a claim is made. 23   12. Insurer means a person engaged in the business of 24   insurance and regulated under chapter 507A, 508, 512B, 515, or 25   520. 26   13. NIPR gateway means the communication network developed 27   and operated by the national insurance producer registry that 28   links state insurance regulators with regulated entities to 29   facilitate the electronic exchange of adjuster information, 30   including but not limited to license applications, license 31   renewals, appointments, and terminations. 32   14. Party means an insurer or a claimant, including an 33   employee, contractor, and other representative of an insurer 34   or claimant. 35   -54-   LSB 1094XL (12) 91   nls/ko 54/ 103  

  S.F. _____ H.F. _____   15. Person means an individual or a business entity. 1   16. Reinstatement means the reinstatement of a suspended 2   license which was suspended in connection with a disciplinary 3   matter, and that has not expired or been terminated during the 4   suspension period. 5   17. Reissuance means the issuance of a new license 6   following the revocation of a license, the suspension and 7   subsequent termination of a license, or the forfeiture of a 8   license in connection with a disciplinary matter. 9   18. Umpire means a person licensed as an umpire pursuant 10   to section 522F.9. 11   19. Umpire list means a list, maintained by the division, 12   of all umpires licensed by the division. 13   Sec. 55. NEW SECTION   . 522F.2 Rules. 14   The commissioner may adopt rules pursuant to chapter 17A to 15   administer this chapter. 16   Sec. 56. NEW SECTION . 522F.3 Appraisers license  17   eligibility. 18   1. A person shall not act as, or represent that the person 19   is, an appraiser in this state unless the person is licensed 20   under this chapter. A person that acts as an appraiser in this 21   state solely for a crop hail or multiperil crop insurance claim 22   shall not be subject to this chapter. 23   2. A person applying for an appraiser license shall submit 24   an application on a uniform individual application or a uniform 25   business entity application in the form and manner prescribed 26   by the commissioner. 27   3. To be eligible for licensure under this chapter, a person 28   shall meet all of the following criteria: 29   a. Have experience or training in building construction, 30   repair, or estimating property damage. 31   b. Unless waived by the commissioner based on the persons 32   other professional qualifications, have a minimum of three 33   years experience as any of the following: 34   (1) A professional engineer licensed under chapter 542B or 35   -55-   LSB 1094XL (12) 91   nls/ko 55/ 103    

  S.F. _____ H.F. _____   similarly licensed in another state. 1   (2) An architect licensed under chapter 544A or similarly 2   licensed in another state. 3   (3) An adjuster licensed under chapter 522C or similarly 4   licensed in another state. 5   (4) A residential contractor as defined in section 103A.71. 6   (5) A contractor registered under chapter 91C or similarly 7   registered in another state. 8   c. Pass a written examination as prescribed by the division. 9   The examination shall test the knowledge of a person concerning 10   the appraisal process, the duties and responsibilities of an 11   appraiser, and the insurance laws and rules of this state. 12   Examination results shall be valid for ninety calendar days 13   from the date of examination. 14   d. Have the requisite character and competence, as 15   determined by the division. 16   4. To determine an applicants eligibility for licensure, 17   the commissioner may require a criminal history check pursuant 18   to section 522B.5A. 19   Sec. 57. NEW SECTION   . 522F.4 Appraisers  licensure, 20   license renewal, and fees. 21   1. A person who meets the requirements under section 522F.3, 22   unless otherwise denied licensure pursuant to section 522F.20, 23   shall be issued an appraiser license that is valid for two 24   years from the date of issue. 25   2. Any applicable fee for a criminal history check pursuant 26   to section 522B.5A.   27   3. The fee for an initial appraiser license, or renewal of 28   an appraiser license, shall be fifty dollars for a two-year 29   license. 30   4. The fee for reinstatement of an expired appraiser license 31   shall be one hundred dollars. 32   5. The fee for a reinstatement or reissuance of an appraiser 33   license suspended or revoked due to a disciplinary action shall 34   be one hundred dollars. 35   -56-   LSB 1094XL (12) 91   nls/ko 56/ 103   

  S.F. _____ H.F. _____   6. An appraisers license shall contain the licensees 1   name, business address, appraisal license number, the date of 2   issuance, the expiration date, and any other information the 3   division deems necessary. 4   7. An appraiser licensed under this chapter shall be 5   required to complete continuing education requirements, as 6   prescribed by the division, to be eligible for license renewal 7   or reinstatement. 8   8. An appraiser licensed under this chapter shall inform 9   the division, in the manner and form specified by the division, 10   of a change of legal name or business address within thirty 11   calendar days of the change. Failure to timely inform the 12   division may result in a penalty as specified in section 13   522F.20. 14   9. The division shall publish an appraiser list on the 15   divisions internet site in a manner readily available to the 16   public. The appraiser list shall include all of the following 17   information for each licensed appraiser: 18   a. The business telephone number, business mailing address, 19   business email address, and the county and state of residence 20   of the appraiser as provided to the division by the appraiser 21   for licensure. 22   b. The appraisers area of training or expertise. 23   c. The date of the appraisers initial licensure and the 24   date the license expires. 25   10. Prior to approving a business entitys application for 26   a license as an appraiser, the commissioner shall find that the 27   business entity has designated an individual appraiser licensed 28   in this state to be responsible for the business entitys 29   compliance with the insurance laws and rules of this state. 30   Sec. 58. NEW SECTION   . 522F.5 Appraiser license 31   reinstatement  not related to disciplinary action. 32   1. An appraiser may apply for reinstatement of an expired 33   license up to one year after the license expiration date 34   by submitting a request through the NIPR gateway, paying a 35   -57-   LSB 1094XL (12) 91   nls/ko 57/ 103   

  S.F. _____ H.F. _____   reinstatement fee and a license renewal fee, and submitting 1   evidence to the division that the appraiser met the continuing 2   education requirements under section 522F.4. An appraiser who 3   fails to apply for license reinstatement within one year of the 4   date of expiration of the appraisers license must apply for 5   a new license. 6   2. An appraiser who surrendered a license, not in connection 7   with a disciplinary matter, and stated an intent to exit the 8   appraiser business may file a request with the division to 9   reactivate the appraiser license. The request must be received 10   by the division within ninety calendar days of the date the 11   appraisers license was placed on inactive status. The request 12   shall be granted if the former appraiser is otherwise eligible 13   to receive an appraiser license. If the appraisers request to 14   reactivate the license is not received within ninety calendar 15   days of the date the appraisers license was placed on inactive 16   status, the appraiser must apply for a new license. 17   3. An appraiser whose license is suspended, revoked, 18   or forfeited in connection with a disciplinary matter, or 19   forfeited in lieu of compliance, shall not be eligible for 20   reinstatement under this section and must follow the procedures 21   in section 522F.22. 22   Sec. 59. NEW SECTION   . 522F.6 Appraisers  payment. 23   1. Each party to an appraisal shall be responsible for the 24   following: 25   a. The partys own appraisers fees and expenses. 26   b. An equal share of all reasonable and necessary fees and 27   expenses incurred by an umpire, if necessary. 28   c. An equal share of all reasonable and necessary costs 29   incurred in the course of conducting the appraisal. 30   2. a. An appraiser shall not charge any party on a basis 31   dependent on the outcome of the written itemized award, or 32   charge in a manner that relies on a barter arrangement, gift, 33   favor, or in-kind exchange. 34   b. Prior to the conclusion of an appraisal process via 35   -58-   LSB 1094XL (12) 91   nls/ko 58/ 103   

  S.F. _____ H.F. _____   final settlement or issuance of a written itemized award by 1   an umpire, an appraiser shall not require, demand, or accept 2   any fee, retainer, compensation, deposit, or other type 3   of consideration, unless the loss is being handled by the 4   appraiser on a time-plus-expense basis. 5   3. An appraiser shall not charge, and is not entitled to, 6   a fee, compensation, deposit, or other type of consideration 7   if the appraiser abandons the appraisal prior to the umpire 8   issuing a written itemized award. 9   Sec. 60. NEW SECTION   . 522F.7 Appraisers  standards of 10   conduct. 11   1. An appraiser shall act with due diligence, including but 12   not limited to demonstrating accuracy, fairness, and timeliness 13   throughout an appraisal process. 14   2. a. (1) No later than five business days after being 15   hired by a party to an appraisal and before beginning work as 16   an appraiser, an appraiser shall disclose to all parties to the 17   appraisal any potential conflict of interest. 18   (2) An appraiser shall not engage in any act or practice 19   that is a conflict of interest during the appraisal. 20   (3) If a conflict of interest arises after the start of the 21   appraisal process, an appraiser shall disclose the conflict of 22   interest to the parties and shall withdraw from the appraisal 23   process no more than five business days after the conflict of 24   interest arose. 25   b. A conflict of interest shall include but is not limited 26   to all of the following: 27   (1) An appraiser is a party to a lawsuit against any party 28   to an appraisal. 29   (2) An appraiser is a party to, or a member or employee 30   of a law firm that represents a party to, a current lawsuit 31   involving an insurer that is a party to the appraisal. 32   (3) An appraiser has a personal bias or prejudice against a 33   party. 34   (4) An appraiser has personally investigated, prosecuted, 35   -59-   LSB 1094XL (12) 91   nls/ko 59/ 103   

  S.F. _____ H.F. _____   or advocated in connection with the appraisal. 1   (5) An appraiser has acted as counsel to any party to 2   an appraisal within the two years immediately preceding the 3   appraisal. 4   (6) An appraiser has a personal financial interest in the 5   outcome of the appraisal or any other significant interest 6   that could be substantially affected by the outcome of the 7   appraisal. 8   (7) A member of an appraisers immediate family is any of 9   the following: 10   (a) A party to the appraisal, or an officer, director, or 11   trustee of a party. 12   (b) A current employee of an appraiser or an adjuster to the 13   appraisal. 14   (c) A business entity licensed as an adjuster that adjusted 15   the loss at issue in the appraisal. 16   (d) Known to have an interest that could be substantially 17   affected by the outcome of the appraisal. 18   (e) An immediate family member that has a legally sufficient 19   reason that requires the appraiser to withdraw from the 20   appraisal. 21   3. An appraiser shall postpone an appraisal for a reasonable 22   amount of time if any party demonstrates reasonable cause for 23   a postponement. The appraiser shall notify all parties if 24   the appraisal process is postponed. An appraisers failure 25   to timely notify all parties may result in a penalty under 26   sections 522F.20 and 522F.21.   27   4. In the course of an appraisal, an appraiser shall 28   consider all information provided by the parties and any 29   other reasonably available evidence that is material to the 30   appraisal. 31   5. In the course of an appraisal, an appraiser shall 32   carefully decide all issues submitted for determination of the 33   amount of loss and actual cash value. 34   6. In the course of an appraisal, an appraiser shall provide 35   -60-   LSB 1094XL (12) 91   nls/ko 60/ 103  

  S.F. _____ H.F. _____   all parties a fair and reasonable itemized written appraisal 1   detailing the amount of loss and actual cash value. 2   7. In the course of an appraisal, an appraiser shall ensure 3   the appraisers party is reasonably informed of all updates 4   throughout the appraisal process. 5   8. An appraiser shall not permit outside influence to affect 6   an appraisal. 7   9. An appraiser shall not allow a person other than the 8   umpire for the appraisal to determine differences between the 9   actual cash value and the amount of loss of each item on the 10   appraisal. 11   10. a. An appraiser shall not communicate directly or 12   indirectly with any of the following: 13   (1) An opposing party or representative of the opposing 14   party other than the opposing partys appraiser. 15   (2) The umpire, unless reasonable notice and opportunity 16   to participate in the communication is provided to an opposing 17   appraiser. 18   b. Notwithstanding paragraph a , an appraiser may 19   communicate with an opposing party or an umpire in order to do 20   any of the following: 21   (1) Identify the partys counsel or experts. 22   (2) Discuss logistical matters, including the time and 23   place of a meeting or to make arrangements for the conduct 24   of the appraisal. The appraiser initiating contact with the 25   umpire shall promptly inform an opposing appraiser. 26   (3) If an opposing appraiser fails to participate in a 27   meeting or conference call after receiving reasonable notice 28   and opportunity to participate, or if all parties agree 29   in writing in advance of a meeting or conference call, an 30   appraiser may discuss a claim with the umpire. 31   11. An appraiser shall not act as, or have ever acted as, an 32   adjuster or umpire on the same claim. 33   12. An appraiser shall not withdraw or abandon an appraisal 34   unless compelled by unforeseen circumstances that would render 35   -61-   LSB 1094XL (12) 91   nls/ko 61/ 103  

  S.F. _____ H.F. _____   it impossible or impracticable for the appraiser to continue. 1   Sec. 61. NEW SECTION   . 522F.8 Umpire license  eligibility. 2   1. An individual shall not act as, or represent that the 3   individual is, an umpire in this state unless the individual 4   is licensed under this chapter. An individual that acts as an 5   umpire in this state solely for a crop hail or multiperil crop 6   insurance claim shall not be subject to this chapter. 7   2. An individual applying for an umpire license shall submit 8   an application on a uniform individual application in the form 9   and manner prescribed by the commissioner. 10   3. To be eligible for licensure under this chapter, an 11   individual shall meet all of the following criteria: 12   a. Unless waived by the commissioner based on the 13   individuals other professional qualifications, have a minimum 14   of three years experience as any of the following: 15   (1) A professional engineer licensed under chapter 542B or 16   similarly licensed in another state. 17   (2) An architect licensed under chapter 544A or similarly 18   licensed in another state. 19   (3) An adjuster licensed under chapter 522C or similarly 20   licensed in another state. 21   (4) An appraiser licensed under this chapter or similarly 22   licensed in another state. 23   (5) An attorney licensed in this state, or another state, 24   with experience in first-party property damage litigation. 25   (6) An insurance regulator. 26   b. Pass a written examination as prescribed by the 27   division. The examination shall test the knowledge of the 28   individual concerning the appraisal process, the duties and 29   responsibilities of an umpire, and the insurance laws and rules 30   of this state. Examination results shall be valid for ninety 31   calendar days from the date of examination. 32   c. Have the requisite character and competence, as 33   determined by the division. 34   4. To determine an applicants eligibility for licensure, 35   -62-   LSB 1094XL (12) 91   nls/ko 62/ 103   

  S.F. _____ H.F. _____   the commissioner may require a criminal history check pursuant 1   to section 522B.5A. 2   Sec. 62. NEW SECTION   . 522F.9 Umpires  licensure, license 3   renewal, and fees. 4   1. An individual who meets the requirements of section 5   522F.8, unless otherwise denied licensure pursuant to section 6   522F.20, shall be issued an umpire license that is valid for 7   two years from the date of issue. 8   2. Any applicable fee for a criminal history check pursuant 9   to section 522B.5A. 10   3. The fee for an initial umpire license, or renewal of an 11   umpire license, shall be fifty dollars for a two-year license. 12   4. The fee for reinstatement of an expired umpire license 13   shall be one hundred dollars. 14   5. The fee for a reinstatement or reissuance of an umpire 15   license suspended or revoked due to a disciplinary action shall 16   be one hundred dollars. 17   6. An umpires license shall contain the licensees name, 18   business address, umpire license number, the date of issuance, 19   the expiration date, and any other information the division 20   deems necessary. 21   7. An umpire licensed under this chapter shall be required 22   to complete continuing education requirements, as prescribed 23   by the division to be eligible for license renewal or 24   reinstatement. 25   8. An umpire licensed under this chapter shall inform the 26   division, in the manner and form specified by the division, 27   of a change of legal name or business address within thirty 28   calendar days of the change. Failure to timely inform the 29   division may result in a penalty as specified in sections 30   522F.20 and 522F.21. 31   9. The division shall publish an umpire list on the 32   divisions internet site in a manner that is readily available 33   to the public. The umpire list shall include all of the 34   following information for each licensed umpire: 35   -63-   LSB 1094XL (12) 91   nls/ko 63/ 103   

  S.F. _____ H.F. _____   a. The business telephone number, business mailing address, 1   business email address, and the county and state of residence 2   of the umpire as provided to the division by the umpire for 3   licensure. 4   b. The umpires area of training and expertise. 5   c. The date of the umpires initial licensure and the date 6   the license expires. 7   Sec. 63. NEW SECTION   . 522F.10 Umpire license reinstatement 8    not related to disciplinary action. 9   1. An umpire may apply for reinstatement of an expired 10   license up to one year after the license expiration date 11   by submitting a request through the NIPR gateway, paying a 12   reinstatement fee, and submitting evidence to the division that 13   the umpire met the continuing education requirements under 14   section 522F.9. An umpire who fails to apply for license 15   reinstatement within one year of the date of expiration of the 16   umpires license must apply for a new license. 17   2. An umpire who surrendered a license, not in connection 18   with a disciplinary matter, and stated an intent to exit the 19   umpire business, may file a request with the division to 20   reactivate the umpire license. The request must be received 21   by the division within ninety calendar days of the date the 22   umpires license was placed on inactive status. The request 23   shall be granted if the former umpire is otherwise eligible 24   to receive an umpire license. If the umpires request to 25   reactivate the umpires license is not received within ninety 26   calendar days of the date the license was placed on inactive 27   status, the umpire must apply for a new license. 28   3. An umpire whose license is suspended, revoked, or 29   forfeited in connection with a disciplinary matter, or 30   forfeited in lieu of compliance, shall not be eligible for 31   reinstatement under this section and must follow the procedures 32   in section 522F.22. 33   Sec. 64. NEW SECTION   . 522F.11 Umpires  payment. 34   1. In addition to the costs each party is responsible 35   -64-   LSB 1094XL (12) 91   nls/ko 64/ 103    

  S.F. _____ H.F. _____   for under section 522F.6, each party to an appraisal that 1   requires an umpire shall be responsible for an equal share of 2   all reasonable and necessary fees and expenses incurred by the 3   umpire. 4   2. If the parties settle before the appraisers direct the 5   umpire to begin work, the umpire shall not charge a fee. 6   3. An umpire shall not charge any party on a basis dependent 7   on the outcome of the written itemized award, or charge in a 8   manner that relies on a barter arrangement, gift, favor, or 9   in-kind exchange. 10   4. Prior to the conclusion of an appraisal process via 11   final settlement, or issuance of a written itemized award by 12   an umpire, an umpire shall not require, demand, or accept 13   any fee, retainer, compensation, deposit, or other type of 14   consideration, unless the loss is being handled by the umpire 15   on a time-plus-expense basis. 16   5. An umpire shall not charge, and is not entitled to, a 17   fee, compensation, deposit, or other type of consideration if 18   the umpire abandons the appraisal prior to the umpire issuing a 19   written itemized award. 20   Sec. 65. NEW SECTION   . 522F.12 Umpires  objections. 21   A party or appraiser that objects for good cause to a 22   selected umpire within the time limit specified in section 23   522F.14, subsection 3, paragraph b , shall send the objection 24   to all parties involved in the appraisal and, if applicable, to 25   the judge who appointed the umpire from the umpire list under 26   section 522F.14, subsection 3, paragraph d . A copy of the 27   objection shall be sent to the division electronically in the 28   form and manner prescribed by the commissioner. The objection 29   shall include all of the following information: 30   1. The names of all parties involved in the dispute. 31   2. The name of the person submitting the objection. 32   3. The insurers claim number. 33   4. The name of the umpire that the party or appraiser 34   objects to. 35   -65-   LSB 1094XL (12) 91   nls/ko 65/ 103   

  S.F. _____ H.F. _____   5. An explanation of the good cause basis for the objection. 1   Sec. 66. NEW SECTION   . 522F.13 Umpires  standards of 2   conduct. 3   1. An umpire shall act with due diligence, including but 4   not limited to demonstrating accuracy, fairness, and timeliness 5   throughout an appraisal process. 6   2. a. (1) No later than three business days after being 7   hired by the parties to an appraisal and before beginning work 8   as an umpire to the appraisal, an umpire shall disclose to all 9   parties to the appraisal any potential conflict of interest. 10   If a conflict of interest exists, the umpire shall withdraw 11   from the appraisal. 12   (2) An umpire shall not engage in any act or practice that 13   is a conflict of interest during the appraisal. 14   (3) If a conflict of interest arises after the start of an 15   appraisal process, an umpire shall disclose the conflict of 16   interest to the parties and shall withdraw from the appraisal 17   process. 18   b. A conflict of interest shall include but is not limited 19   to the following: 20   (1) An umpire is a party to a lawsuit against any party to 21   an appraisal. 22   (2) An umpire is a party to, or a member or employee of 23   a law firm that represents a party to, a current lawsuit 24   involving an insurer that is party to the appraisal. 25   (3) An umpire has a personal open claim involving an insurer 26   that is a party to the appraisal. 27   (4) An umpire has a personal bias or prejudice against a 28   party. 29   (5) An umpire has personally investigated, prosecuted, or 30   advocated in connection with the appraisal. 31   (6) An umpire has acted as counsel to any party to an 32   appraisal within the two years immediately preceding the 33   appraisal. 34   (7) An umpire has a personal financial interest in the 35   -66-   LSB 1094XL (12) 91   nls/ko 66/ 103   

  S.F. _____ H.F. _____   outcome of the appraisal or any other significant interest 1   that could be substantially affected by the outcome of the 2   appraisal. 3   (8) A member of an umpires immediate family is any of the 4   following: 5   (a) A party to the appraisal, or an officer, director, or 6   trustee of a party. 7   (b) A current employee of an appraiser or an adjuster to the 8   appraisal. 9   (c) A business entity licensed as an adjuster that adjusted 10   the loss at issue in the appraisal. 11   (d) Known to have an interest that could be substantially 12   affected by the outcome of the appraisal. 13   (e) An immediate family member that has a legally sufficient 14   reason that requires the umpire to withdraw from the appraisal. 15   3. Prior to beginning work as an umpire, an umpire shall 16   enter into a written contract with all parties to the appraisal 17   that requires the parties and the umpire to comply with this 18   section, and provides that each party shall pay costs as 19   required under section 522F.11. 20   4. An umpire shall not begin work on a claim until the 21   umpire receives each appraisers differences in actual cash 22   value and amount of loss of each item of the claim, and written 23   approval from the parties for the umpire to begin work. 24   5. No later than three business days after receiving notice 25   of selection for an appraisal, an umpire shall send notice 26   to the parties and the appraisers that includes all of the 27   following: 28   a. A statement informing each party if the umpire is insured 29   by an insurer. 30   b. A statement informing each party of the partys 31   respective right to object to the umpire under section 522F.12. 32   6. An umpire shall address only issues in an appraisal that 33   the appraisers disagree on. 34   7. An umpire shall review all information submitted by the 35   -67-   LSB 1094XL (12) 91   nls/ko 67/ 103  

  S.F. _____ H.F. _____   appraisers and parties related to the dispute, including but 1   not limited to the itemized appraisals or estimates, supporting 2   documents, photographs, and diagrams. The umpire shall review 3   the differences between what each appraiser submitted and seek 4   agreement by the appraisers regarding the disputed issues. 5   8. An umpire shall allow each appraiser to a claim a fair 6   opportunity to present evidence and arguments regarding the 7   appraisal. 8   9. An umpire shall ask questions, or request documents or 9   other evidence, as the umpire deems necessary in the course of 10   an appraisal. 11   10. An umpire may accept either appraisers scope, 12   quantity, value, or cost regarding an item in dispute, or 13   develop an independent decision on each item in dispute. 14   11. An umpire shall decide all matters in an appraisal 15   fairly, and shall exercise independent judgment and integrity. 16   12. An umpire shall prepare and distribute a written 17   itemized award pursuant to section 522F.16. 18   13. An umpire shall not visit the claimants damaged 19   property without consent from all appraisers. 20   14. An umpire shall not withdraw or abandon an appraisal 21   unless compelled by unforeseen circumstances that would render 22   it impossible or impracticable for the umpire to continue on a 23   claim. 24   15. An umpire shall not attend or participate in settlement 25   discussions unless requested to do so by all parties. 26   16. An umpire shall not permit outside influences to affect 27   an appraisal. 28   17. An umpire shall not delegate the umpires duty to decide 29   a claim to any other person. 30   18. Unless reasonable notice and opportunity to participate 31   in a communication is provided to an opposing party and the 32   opposing partys appraiser, an umpire shall not communicate, 33   directly or indirectly, with any party or appraiser regarding a 34   pending appraisal. 35   -68-   LSB 1094XL (12) 91   nls/ko 68/ 103  

  S.F. _____ H.F. _____   19. Unless reasonable notice and opportunity to participate 1   in a communication is provided to all parties, an umpire shall 2   not communicate, directly or indirectly, with any party, a 3   representative of any party, or any other person with a direct 4   or indirect interest in the claim, regarding an issue of fact 5   or law in the appraisal. 6   20. An umpire shall not act as, or have ever acted as, an 7   adjuster or appraiser on the same claim. 8   Sec. 67. NEW SECTION   . 522F.14 Appraisal process. 9   1. This section provides for the appraisal process if all 10   of the following apply: 11   a. The claimants insurance policy is delivered, issued for 12   delivery, or renewed in this state. 13   b. The property that is the subject of the claimants 14   claim is located in this state, or the dispute is subject to 15   jurisdiction in this state. 16   c. A claimant gave proper notice to the claimants insurer 17   of a loss claim, and the claimant and insurer dispute the 18   actual cash value, or the amount of loss the insurer will pay, 19   for the claimants claim under the claimants policy. The 20   claimant and the insurer must both provide the other party with 21   a list stating separately the actual cash value and the amount 22   of claimed loss for each item. 23   d. The claimant or insurer demands in writing an appraisal 24   pursuant to the claimants policy. 25   2. Within twenty calendar days following either the 26   claimants or insurers receipt of the other partys written 27   demand for an appraisal, the claimant and the insurer 28   shall each select an appraiser from the appraiser list. 29   Upon selection, the appraiser shall attest in writing to 30   the selecting party that the appraiser is competent and 31   disinterested with regards to the appraisal in question. 32   3. a. Within fifteen calendar days of the selection of 33   appraisers pursuant to subsection 2, both appraisers shall 34   agree on an umpire from the umpire list. 35   -69-   LSB 1094XL (12) 91   nls/ko 69/ 103   

  S.F. _____ H.F. _____   b. A party or an appraiser may object to the agreed-upon 1   umpire for good cause pursuant to section 522F.12 no later 2   than five business days after the umpire has been selected. A 3   replacement umpire from the umpire list shall then be agreed 4   upon by both appraisers. 5   c. If both appraisers fail to agree on an umpire, either the 6   claimant or insurer shall immediately provide written notice 7   to the division, in the form and manner prescribed by the 8   division, and the division shall randomly select an umpire from 9   the umpire list and notify the parties. 10   d. If either appraiser requests that an umpire be selected 11   by a judge in the state in which the property that is the 12   subject of the claim is located, a judge shall give deference 13   to the randomly selected umpire from the umpire list by the 14   division unless either the claimant or the insurer provides 15   good cause for the judge to make an alternative selection from 16   the umpire list. 17   4. Within forty-five calendar days from the date the 18   umpire is selected, both appraisers shall appraise the loss, 19   stating separately the actual cash value and the amount of 20   loss for each item. Each appraiser shall submit separately 21   the appraisers actual cash value and amount of loss of each 22   item, along with any supporting information, to the umpire. 23   Each appraiser shall also submit written authorization for the 24   umpire to commence the umpires work. 25   5. No later than forty-five calendar days after receipt of 26   the actual cash value and amount of loss under subsection 4,   27   the umpire shall prepare and provide to the parties and each 28   appraiser a written itemized award showing the actual cash 29   value and amount of loss. The written itemized award shall 30   include but is not limited to all of the following: 31   a. Contact information for each appraiser and the umpire. 32   b. The insureds policy number and the insureds claim 33   number. 34   c. The date of the insureds loss. 35   -70-   LSB 1094XL (12) 91   nls/ko 70/ 103  

  S.F. _____ H.F. _____   d. The type of covered peril that caused the loss. 1   e. The date the umpire commenced work. 2   f. The legal name of the insurer. 3   g. The physical address of the property on which the insured 4   made a claim. 5   h. The date of the umpires written itemized award. 6   i. (1) A description and itemization of the final written 7   itemized award by coverage type, including but not limited to: 8   (a) Coverage A  dwelling. 9   (b) Coverage B  other structures. 10   (c) Coverage C  personal property. 11   (2) The description and itemization by coverage type shall 12   include contested items that have been resolved, sublimits, 13   and other disputed items. Items, including but not limited 14   to items with sublimits, shall be separately noted to avoid 15   ambiguity in the final written itemized award. 16   j. The signature of the umpire and at least one appraiser. 17   6. Prior to the umpire issuing the written itemized award, 18   the parties may agree to conclude the appraisal process when 19   the parties reach a final settlement. 20   Sec. 68. NEW SECTION   . 522F.15 Appraisal clause. 21   All property insurance policies delivered, issued for 22   delivery, continued, or renewed in this state on or after 23   January 1, 2026, shall contain an appraisal clause that 24   complies with this chapter. 25   Sec. 69. NEW SECTION   . 522F.16 Appraisal award. 26   1. An appraiser and umpire shall act with due diligence in 27   achieving an appraisal award. 28   2. A insurers payment of an appraisal award to an insured 29   shall be subject to the limits of coverage, and other terms 30   and conditions of the insureds policy, including reductions 31   for deductibles and prior payments. Unless otherwise agreed 32   upon by the parties in writing, an appraisal award shall be 33   binding and paid by the insurer within sixty calendar days of 34   the written itemized award being submitted to the insurer. 35   -71-   LSB 1094XL (12) 91   nls/ko 71/ 103    

  S.F. _____ H.F. _____   3. An insurers motion to vacate an appraisal award for good 1   cause shall be filed within thirty calendar days from the date 2   the insurer receives the written itemized award in the court 3   of record. 4   Sec. 70. NEW SECTION . 522F.17 Reporting of actions. 5   1. An appraiser or umpire shall report to the commissioner 6   any administrative action taken against the appraiser or umpire 7   in another jurisdiction or by another administrative agency in 8   this state within thirty calendar days of the final disposition 9   of the matter. This report shall include a copy of the order, 10   consent to the order, and other relevant legal documents. 11   2. Within thirty calendar days of the initial pretrial 12   hearing date, an appraiser or umpire shall report to the 13   commissioner any criminal prosecution of the appraiser or 14   umpire taken in any jurisdiction. The report shall include a 15   copy of the initial complaint filed, the order resulting from 16   the hearing, and any other relevant legal documents. 17   3. An appraiser or umpire who willfully fails to comply with 18   this section is subject to penalty under section 522F.20. 19   Sec. 71. NEW SECTION   . 522F.18 Records  appraisers and 20   umpires. 21   1. An appraiser or umpire shall have a continuing duty and 22   obligation to keep, at the appraisers or umpires place of 23   business, usual and customary records pertaining to appraisals 24   undertaken by the appraiser or umpire. All such records 25   shall be kept available for inspection by the commissioner or 26   the commissioners agent during regular business hours. The 27   commissioner or the commissioners agent shall not be entitled 28   to inspect any records prepared in anticipation of litigation 29   or that are subject to any privilege recognized in chapter 622. 30   Such records shall be maintained for a minimum of three years 31   following the date of final claim resolution. 32   2. An appraiser or umpire who willfully fails to comply with 33   this section is subject to penalty under section 522F.20. 34   Sec. 72. NEW SECTION   . 522F.19 Hearings  service of 35   -72-   LSB 1094XL (12) 91   nls/ko 72/ 103     

  S.F. _____ H.F. _____   process, attendance of witnesses, and production of documents. 1   1. Whenever the commissioner believes that a person has 2   been engaged, or is engaging, in a violation of this chapter 3   or a rule adopted or an order issued under this chapter, and 4   that a proceeding by the commissioner would be in the public 5   interest, the commissioner shall issue and serve upon the 6   person a statement of the charges and a notice of a hearing on 7   the charges to be held at the time and place set in the notice, 8   which shall not be less than ten business days after the date 9   of service of such notice. 10   2. At the time and place of such hearing, the person shall 11   have an opportunity to be heard and to show cause why an order 12   should not be made by the commissioner requiring the person to 13   cease and desist from the violation of the chapter, rule, or 14   order. Upon a showing of good cause, the commissioner shall 15   permit any person, by counsel or in person, to intervene, 16   appear, and be heard at such hearing. 17   3. A hearing under this section shall not be required to 18   observe formal rules of pleading or evidence. 19   4. The commissioner, at a hearing under this section, may 20   administer oaths, examine and cross-examine witnesses, receive 21   oral and documentary evidence, and may subpoena witnesses, 22   compel their attendance, and require the production of books, 23   papers, records, correspondence, or other documents which the 24   commissioner deems relevant. The commissioner may, and upon 25   the request of any party shall, cause to be made a stenographic 26   record of the evidence and proceedings of a hearing under this 27   section. If no stenographic record is made and if a judicial 28   review is sought, the commissioner shall prepare a statement 29   of the evidence and proceeding for use on review. If a person 30   refuses to comply with a subpoena issued under this section, 31   or to testify to a matter for which the person may lawfully be 32   interrogated, the district court of Polk county or the district 33   court of the county where the person resides, on application of 34   the commissioner, may issue an order requiring such person to 35   -73-   LSB 1094XL (12) 91   nls/ko 73/ 103  

  S.F. _____ H.F. _____   comply with such subpoena or to testify. Failure of a person 1   to obey such order of the court may be punished by the court as 2   contempt. 3   5. Statements of charges, notices, orders, subpoenas, and 4   other processes of the commissioner under this chapter may be 5   served by anyone authorized by the commissioner, either in the 6   manner provided by law for service of process in civil actions, 7   or by mailing a copy by restricted certified mail to the person 8   affected by the statement, notice, order, subpoena, or other 9   process at the persons residence or principal office or place 10   of business. The verified return by the person serving the 11   statement, notice, order, subpoena, or other process, setting 12   forth the manner of such service, shall be proof of service, 13   and the return receipt for the statement, notice, order, 14   subpoena, or other process, mailed by restricted certified 15   mail, shall be proof of the service. 16   Sec. 73. NEW SECTION   . 522F.20 License denial, nonrenewal, 17   or revocation  penalties. 18   1. The division may place on probation, suspend, revoke, or 19   refuse to issue or renew an appraisers license or an umpires 20   license, and may levy a civil penalty against an appraiser or 21   umpire as provided in section 522F.21, for one or more of the 22   following causes: 23   a. The appraiser or umpire provided incorrect, misleading, 24   incomplete, or materially untrue information in a license 25   application. 26   b. The appraiser or umpire violated an insurance law, 27   regulation, subpoena, or order of the commissioner or of a 28   commissioner of another state. 29   c. The appraiser or umpire obtained or attempted to obtain a 30   license through misrepresentation or fraud. 31   d. The appraiser or umpire improperly withheld, 32   misappropriated, or converted money or property received from 33   an insured in the course of doing business. 34   e. The appraiser or umpire was convicted of a felony. 35   -74-   LSB 1094XL (12) 91   nls/ko 74/ 103   

  S.F. _____ H.F. _____   f. The appraiser or umpire committed, or was found to have 1   committed, any unfair trade practice or fraud. 2   g. The appraiser or umpire used fraudulent, coercive, 3   or dishonest practices, or demonstrated incompetence, 4   untrustworthiness, or financial irresponsibility in the conduct 5   of business. 6   h. The appraiser or umpire had any professional license, or 7   its equivalent, denied, suspended, or revoked in this state or 8   any other state, province, district, or territory. 9   i. The appraiser or umpire forged anothers name to any 10   document related to an appraisal. 11   j. The appraiser or umpire improperly used notes or any 12   other reference material to complete an examination for an 13   appraisal license or umpire license. 14   k. The appraiser knowingly negotiated as an appraiser with 15   an individual who is not, but is required to be, licensed as an 16   appraiser during an appraisal. 17   l. The umpire knowingly acted as an umpire during the 18   conduct of an appraisal with an individual who is not, but is 19   required to be, licensed as an appraiser during an appraisal. 20   m. The appraiser or umpire failed to comply with an 21   administrative or court order related to repayment of loans to 22   the college student aid commission. 23   n. The appraiser or umpire failed to pay state income tax or 24   comply with any administrative or court order directing payment 25   of state income tax. 26   o. The appraiser or umpire failed to comply with an 27   administrative or court order imposing a child support 28   obligation. 29   p. The appraiser or umpire failed or refused to cooperate 30   in an investigation conducted by the commissioner or the 31   commissioners designee. 32   q. The appraiser or umpire used an appraiser license 33   or umpire license for the principal purpose of procuring, 34   receiving, or forwarding appraisals, or placing or affecting 35   -75-   LSB 1094XL (12) 91   nls/ko 75/ 103  

  S.F. _____ H.F. _____   such appraisals, directly or indirectly, on or in connection 1   with the property of the licensee or the property of a 2   relative, employer, or employee of the licensee, or upon or in 3   connection with property for which the licensee or a relative, 4   employer, or employee of the licensee is an agent, custodian, 5   vendor, bailee, trustee, or payee. 6   2. If the commissioner does not renew a license or denies an 7   application for a license, the commissioner shall notify the 8   applicant, appraiser, or umpire in writing of the reason for 9   the nonrenewal of the license or denial of the application for 10   a license. The applicant, appraiser, or umpire may request a 11   hearing on the nonrenewal or denial. The applicant, appraiser, 12   or umpire shall have thirty calendar days from the date of 13   receipt of the notice to file a written request for a hearing. 14   A hearing shall be conducted according to section 522F.19. 15   3. The license of an umpire, an appraiser, or an appraiser 16   business entity may be suspended, revoked, placed on probation, 17   or refused if the commissioner finds, after hearing, that an 18   umpires, appraisers, or appraiser business entitys violation 19   was known or should have been known by a partner, officer, 20   or manager of the business entity and the violation was not 21   reported to the commissioner and corrective action was not 22   taken. 23   4. In addition to, or in lieu of, denial, probation, 24   suspension, or revocation of a license under this section, an 25   appraiser or umpire, after hearing, may be subject to a civil 26   penalty as provided in section 522F.21. 27   5. The commissioner may enforce this chapter, may conduct 28   an investigation of any suspected violation of this chapter, 29   and may impose any penalty or remedy authorized by this chapter 30   against any person who is under investigation for, or charged 31   with, a violation of this chapter even if the persons license 32   has been surrendered or has lapsed by operation of law. 33   6. a. All complaint files, investigation files, 34   investigation reports, and other investigative information 35   -76-   LSB 1094XL (12) 91   nls/ko 76/ 103  

  S.F. _____ H.F. _____   in the possession of the commissioner or the commissioners 1   agents that relates to appraiser or umpire discipline shall 2   be privileged and confidential, and shall not be subject 3   to discovery, subpoena, or other means of legal compulsion 4   for release to a person other than the appraiser or umpire, 5   and shall not be admissible in evidence in a judicial or 6   administrative proceeding other than the proceeding involving 7   the appraiser or umpire discipline. A final written decision 8   of the commissioner in a disciplinary proceeding shall be a 9   public record. 10   b. Investigative information in the possession of the 11   commissioner or the commissioners agent that relates to 12   appraiser or umpire discipline may be disclosed at the 13   discretion of the commissioner. The commissioner may 14   share documents, materials, or other information, including 15   confidential and privileged documents, materials, or 16   information under this subsection with other state, federal, 17   and international regulatory agencies, with NAIC and its 18   affiliates or subsidiaries, and with state, federal, and 19   international law enforcement authorities, provided that the 20   recipient agrees to maintain the confidentiality and privileged 21   status of the document, material, or other information. 22   c. If the investigative information in the possession of the 23   commissioner or the commissioners agents indicates a crime has 24   been committed, the information shall be reported to the proper 25   law enforcement agency. 26   7. a. Pursuant to section 17A.19, subsection 6, upon an 27   appeal by the appraiser or umpire, the commissioner shall 28   transmit the entire record of the contested case to the 29   reviewing court. 30   b. Notwithstanding section 17A.19, subsection 6, if a 31   waiver of privilege has been involuntary and evidence has been 32   received at a disciplinary hearing, the court shall issue 33   an order to withhold the identity of the individual whose 34   privilege was waived. 35   -77-   LSB 1094XL (12) 91   nls/ko 77/ 103  

  S.F. _____ H.F. _____   Sec. 74. NEW SECTION . 522F.21 Civil and criminal penalties. 1   1. a. Upon a determination by the commissioner, after 2   a hearing conducted pursuant to chapter 17A, that a person 3   violated this chapter, the commissioner shall reduce the 4   findings of the hearing to writing and deliver a copy of the 5   findings to the person. 6   b. Upon a determination by the commissioner that a person 7   has engaged, is engaging, or is about to engage in any act or 8   practice constituting a violation of this chapter or a rule 9   adopted or order issued under this chapter, the commissioner 10   may take the following actions: 11   (1) Issue an order requiring the person to cease and desist 12   from engaging in the conduct resulting in the violation. 13   (2) Assess a civil penalty against the person of not more 14   than one thousand dollars for each violation not to exceed an 15   aggregate of ten thousand dollars. 16   (3) If the person knew or reasonably should have known the 17   person was in violation of this chapter, assess a civil penalty 18   of not more than five thousand dollars for each violation 19   of this chapter not to exceed an aggregate penalty of fifty 20   thousand dollars in any one six-month period. 21   (4) (a) Issue a summary order, including a brief statement 22   of findings of fact, conclusions of law, and policy reasons for 23   the decision, and directing the person to cease and desist from 24   engaging in the act or practice or to take affirmative action 25   as is necessary in the judgment of the commissioner to comply 26   with the requirements of this chapter. 27   (b) A person may contest a summary order by filing, 28   within thirty calendar days from the date of the issuance of 29   the summary order, a written request for a contested case 30   proceeding and hearing as provided in chapter 17A and in 31   accordance with rules adopted by the commissioner. Section 32   17A.18A shall be inapplicable to a summary order issued under 33   this subsection. If a hearing is not requested within thirty 34   calendar days from the date of issuance of the summary order, 35   -78-   LSB 1094XL (12) 91   nls/ko 78/ 103   

  S.F. _____ H.F. _____   the summary order shall become final by operation of law. A 1   summary order shall remain effective from the date of issuance 2   until the date the order becomes final by operation of law, 3   or is modified or overturned by a presiding officer or court 4   following a request for hearing. 5   (c) A person violating a summary order issued under this 6   subsection shall be deemed in contempt of the summary order. 7   The commissioner may petition the district court to enforce the 8   order as certified by the commissioner. The district court 9   shall find the person in contempt of the order if the court 10   finds, after conducting a hearing, that the person is not 11   in compliance with the order. The court may assess a civil 12   penalty against the person and may issue further orders as the 13   court deems appropriate. 14   c. In addition to any other penalty under this section, 15   if the commissioner finds that a violation of this chapter 16   was directed, encouraged, condoned, ignored, or ratified by 17   the employer of the appraiser or umpire, the commissioner 18   shall assess a penalty to the employer. Penalties under this 19   paragraph may be retained by the commissioner under the fund 20   described in section 505.7, subsection 9. 21   2. a. A person acting as an appraiser or an umpire without 22   proper licensure, or an appraiser or an umpire who willfully 23   violates any provision of this chapter or an order issued 24   under this chapter, is guilty of a class D felony. If the 25   violation results in a loss of more than ten thousand dollars, 26   the appraiser or an umpire is guilty of a class C felony. 27   b. The commissioner may refer such evidence as is available 28   concerning a violation of this chapter, or of any rule adopted 29   or order issued under this chapter, or of the failure of a 30   person to comply with the licensing requirements of this 31   chapter, to the attorney general or the proper district 32   attorney who may institute the appropriate criminal proceedings 33   under this chapter. 34   c. This chapter shall not limit the power of the state to 35   -79-   LSB 1094XL (12) 91   nls/ko 79/ 103  

  S.F. _____ H.F. _____   punish any person for any conduct that constitutes a crime 1   under any other statute. 2   Sec. 75. NEW SECTION   . 522F.22 Reinstatement or reissuance 3   of a license after disciplinary matters  forfeiture in lieu of 4   compliance. 5   1. a. A person licensed under this chapter as an appraiser 6   or umpire whose license has been revoked or suspended by order, 7   or who forfeited a license in connection with a disciplinary 8   matter, may apply to the commissioner for reinstatement 9   or reissuance in accordance with the terms of the order 10   of revocation or suspension, or the order accepting the 11   forfeiture, and submit to a criminal history check under 12   section 522B.5A. 13   b. (1) Proceedings for reinstatement or reissuance 14   shall be initiated by the applicant who shall file with the 15   commissioner an application for reinstatement or reissuance 16   after disciplinary action. 17   (2) An appraiser shall not be eligible for reinstatement or 18   reissuance until the appraiser satisfies the requirements under 19   section 522F.3 and pays any required fees. An appraiser may be 20   required to submit a new or renewal appraiser application under 21   section 522F.5. 22   (3) An umpire shall not be eligible for reinstatement or 23   reissuance until the umpire satisfies the requirements under 24   section 522F.8 and pays any required fees. An umpire may be 25   required to submit a new or renewal umpire application under 26   section 522F.10.   27   c. An application for reinstatement or reissuance shall 28   allege facts which, if established, are sufficient to enable 29   the commissioner to determine that the basis of revocation, 30   suspension, or forfeiture of the applicants license no longer 31   exists, and must disclose if the applicant has engaged in 32   any conduct listed as a cause for licensing action that was 33   not included in the order for suspension, revocation, or 34   forfeiture. 35   -80-   LSB 1094XL (12) 91   nls/ko 80/ 103   

  S.F. _____ H.F. _____   d. An application for reinstatement or reissuance shall 1   allege facts which, if established, are sufficient to enable 2   the commissioner to determine that it is in the public 3   interest for the application to be granted. The commissioner 4   may determine that it is not in the public interest if the 5   applicant has engaged in any conduct listed as a cause for 6   licensing action that was not included in the order for 7   suspension, revocation, or forfeiture, or if the applicant does 8   not have the character and fitness to be a licensed appraiser 9   or umpire in this state. 10   e. The burden of proof to establish facts identified in 11   paragraphs c and d shall be on the applicant. 12   f. A person licensed as an appraiser or an umpire may 13   request reinstatement of a suspended license prior to the end 14   of the suspension term. 15   g. Unless otherwise provided by law, if an order of 16   revocation or suspension did not establish terms upon which 17   reinstatement or reissuance may occur, or if the license 18   was forfeited, an initial application for reinstatement or 19   reissuance shall not be made until at least one year from the 20   date of the order of the suspension, revocation, or acceptance 21   of the forfeiture of a license. 22   2. All proceedings upon the application for reinstatement 23   or reissuance, including preliminary and ancillary matters, 24   shall be held in accordance with chapter 17A. The application 25   shall be docketed in the original case in which the original 26   license was suspended, revoked, or forfeited, if the case 27   exists.   28   3. An order of reinstatement or reissuance shall be based   29   on a written decision which incorporates findings of fact 30   and conclusions of law. An order granting an application 31   for reinstatement or reissuance may impose such terms and 32   conditions as the commissioner or the commissioners designee 33   deems appropriate, which may include one or more penalties 34   provided under this chapter. The order shall be a public 35   -81-   LSB 1094XL (12) 91   nls/ko 81/ 103  

  S.F. _____ H.F. _____   record and may be disseminated in compliance with chapter 22. 1   4. If an appraisers or umpires ordered suspension period 2   ends prior to the appraisers or umpires license expiration 3   date and the appraiser or umpire applies for reinstatement 4   prior to the license expiration date and meets all applicable 5   requirements, the division shall reinstate the license as soon 6   as practicable but no earlier than the end of the suspension 7   period if the division, after a complete review, determines the 8   license should be reinstated. 9   5. If an appraisers or umpires license is suspended beyond 10   the appraisers or umpires license expiration date, whether 11   due to an ordered suspension time period or failure to apply 12   for reinstatement prior to expiration, the appraiser or umpire 13   must apply for reissuance. 14   6. A submission of voluntary forfeiture of a license 15   shall be made in writing to the commissioner. Forfeiture of 16   a license is effective upon the date of submission unless a 17   contested case proceeding is pending on the date of submission. 18   If a contested case proceeding is pending, the forfeiture shall 19   become effective upon conditions as required by order of the 20   commissioner. A forfeiture made during the pendency of a 21   contested case proceeding shall be considered a disciplinary 22   action and shall be published in the same manner as is 23   applicable to any other form of disciplinary order. 24   7. The commissioner shall not be prohibited from denying 25   an application for reinstatement or reissuance, or bringing 26   an additional immediate action, if an appraiser or umpire 27   has engaged in an additional violation of chapter 507B or 28   this chapter or otherwise failed to meet all applicable 29   requirements. 30   8. This section shall not apply to reinstatement of an 31   expired license or issuance of a new license that is not in 32   connection with a disciplinary matter. 33   Sec. 76. NEW SECTION   . 522F.23 Suspension for failure to 34   pay child support or state debt. 35   -82-   LSB 1094XL (12) 91   nls/ko 82/ 103   

  S.F. _____ H.F. _____   1. The commissioner shall deny an appraisers or umpires 1   application for license issuance, renewal, reinstatement, 2   or reissuance; suspend a current license; or revoke a 3   currently suspended license upon receipt of a certificate of 4   noncompliance from the child support recovery unit pursuant to 5   chapter 252J, or upon receipt of a certificate of noncompliance 6   from the centralized collection unit of the department of 7   revenue pursuant to chapter 272D. 8   2. Upon receipt of a certificate of noncompliance 9   under subsection 1, the commissioner shall issue a notice 10   to the appraiser or umpire that the division will, unless 11   the certificate of noncompliance is withdrawn, deny the 12   appraisers or umpires application for license issuance, 13   renewal, reinstatement, or reissuance, suspend the appraisers 14   or umpires current license, or revoke the appraisers or 15   umpires currently suspended license, thirty calendar days 16   after the date the notice is mailed. Notice shall be sent to 17   the appraisers or umpires last known address by restricted 18   certified mail, return receipt requested, or in accordance with 19   the divisions rules for service. The notice shall contain all 20   of the following: 21   a. A statement that the commissioner intends to deny the 22   appraisers or umpires application for license issuance, 23   renewal, reinstatement, or reissuance; suspend the appraisers 24   or umpires current license; or revoke the appraisers or 25   umpires currently suspended license in thirty calendar days 26   unless the certificate of noncompliance is withdrawn. 27   b. A statement that the appraiser or umpire must contact the 28   agency that issued the certificate of noncompliance to request 29   a withdrawal.   30   c. A statement that the appraiser or umpire does not have a 31   right to a hearing before the division, but that the appraiser 32   or umpire may file an application for a hearing in district 33   court pursuant to section 252J.9 or 272D.9, as applicable, and 34   that the filing of an application by the appraiser or umpire 35   -83-   LSB 1094XL (12) 91   nls/ko 83/ 103  

  S.F. _____ H.F. _____   will stay the proceedings of the division. 1   d. A copy of the certificate of noncompliance. 2   3. An appraiser or umpire shall keep the commissioner 3   informed of all actions taken by the district court or 4   the issuing agency in connection with a certificate of 5   noncompliance. An appraiser or umpire shall provide to 6   the commissioner, within seven calendar days of filing or 7   issuance, a copy of all applications filed with the district 8   court pursuant to an application or hearing, all court orders 9   entered in such action, and all withdrawals of a certificate 10   of noncompliance. 11   4. If an applicant, appraiser, or umpire timely files an 12   application for hearing in district court and the division 13   is notified of the filing, the commissioners denial, 14   suspension, or revocation proceedings shall be stayed until 15   the division is notified by the district court, the issuing 16   agency, the licensee, or the applicant of the resolution of 17   the application. Upon receipt of a court order lifting the 18   stay or otherwise directing the commissioner to proceed, the 19   commissioner shall continue with the intended action described 20   in the notice. 21   5. If the commissioner does not receive a withdrawal of 22   the certificate of noncompliance from the issuing agency, 23   or a notice from a clerk of court, the issuing agency, the 24   appraiser, the umpire, or the applicant that an application for 25   hearing has been filed within thirty calendar days after the 26   notice is issued, the commissioner shall deny the applicants, 27   appraisers, or umpires application for license issuance, 28   renewal, reinstatement, or reissuance; suspend a current 29   license; or revoke a currently suspended license. 30   6. Upon receipt of a withdrawal of a certificate of 31   noncompliance from the issuing agency, suspension or revocation 32   proceedings shall halt and the named appraiser or umpire 33   shall be notified that the proceedings have halted. If the 34   appraisers or umpires license has already been suspended, the 35   -84-   LSB 1094XL (12) 91   nls/ko 84/ 103  

  S.F. _____ H.F. _____   appraiser or umpire must apply for reinstatement in accordance 1   with section 522F.22, and the license shall be reinstated 2   if the appraiser or umpire is otherwise in compliance with 3   this chapter. If the appraisers or umpires application for 4   licensure was stayed, application processing shall resume. 5   All fees required for license renewal, reinstatement, or 6   reissuance must be paid by an appraiser or umpire, and all 7   continuing education requirements shall be satisfied, before 8   the appraisers or umpires license is renewed or reinstated 9   after a license suspension or revocation under this chapter. 10   7. The commissioner shall notify an appraiser or umpire 11   in writing through regular first class mail, or such other 12   means as the commissioner deems appropriate under the 13   circumstances, within ten calendar days of the effective date 14   of the suspension or revocation of the appraisers or umpires 15   license, and shall also notify the appraiser or umpire when the 16   appraisers or umpires license is reinstated following the 17   commissioners receipt of a withdrawal of the certificate of 18   noncompliance. 19   8. Notwithstanding any provision of law to the contrary, the 20   division may share information with the child support recovery 21   unit or the centralized collection unit of the department of 22   revenue for the sole purpose of identifying appraisers or 23   umpires subject to enforcement under chapter 252J or 272D. 24   Sec. 77. CODE EDITOR DIRECTIVE. The Code editor shall 25   divide chapter 522F into subchapters and shall designate 26   sections 522F.1 through 522F.2, as enacted in this division 27   of this Act, as subchapter I entitled General Provisions, 28   sections 522F.3 through 522F.7, as enacted in this division 29   of this Act, as subchapter II entitled Appraisers, sections 30   522F.8 through 522F.13, as enacted in this division of this 31   Act, as subchapter III entitled Umpires, sections 522F.14 32   through 522F.16, as enacted in this division of this Act, as 33   subchapter IV entitled Appraisals, sections 522F.17 through 34   522F.18, as enacted in this division of this Act, as subchapter 35   -85-   LSB 1094XL (12) 91   nls/ko 85/ 103  

  S.F. _____ H.F. _____   V entitled Duties of Licensees, and sections 522F.19 through 1   522F.23, as enacted in this division of this Act, as subchapter 2   VI entitled Hearings and Penalties. 3   DIVISION VII 4   IOWA ECONOMIC EMERGENCY FUND  PROCLAMATION OF DISASTER 5   EMERGENCY 6   Sec. 78. Section 8.55, subsection 3, paragraph a, Code 2025, 7   is amended to read as follows: 8   a. Except as provided in paragraphs b , c , and   d , 9   and f , the moneys in the Iowa economic emergency fund shall 10   only be used pursuant to an appropriation made by the general 11   assembly. An appropriation shall only be made for the fiscal 12   year in which the appropriation is made. The moneys shall 13   only be appropriated by the general assembly for emergency 14   expenditures. 15   Sec. 79. Section 8.55, subsection 3, Code 2025, is amended 16   by adding the following new paragraph: 17   NEW PARAGRAPH   . f. (1) For the fiscal year beginning July 18   1, 2026, and each fiscal year thereafter, there is appropriated 19   from the Iowa economic emergency fund to the department of 20   management ten percent of the maximum balance of the Iowa 21   economic emergency fund, or so much thereof as is necessary, to 22   be used for disaster response, disaster recovery activities, or 23   disaster aid to citizens. 24   (2) The appropriation in this paragraph is contingent upon 25   all of the following: 26   (a) The issuance of a proclamation of disaster emergency by 27   the governor under section 29C.6 during the fiscal year, which 28   proclamation covers the disaster for which the moneys will be 29   used. 30   (b) The appropriation occurs at the direction of the 31   governor, with the approval of the executive council. 32   (3) The department of management may provide for an 33   interdepartmental transfer of moneys appropriated in this 34   paragraph to another state entity for the purposes specified 35   -86-   LSB 1094XL (12) 91   nls/ko 86/ 103       

  S.F. _____ H.F. _____   in this paragraph, notwithstanding the limitations and 1   requirements of section 8.39. 2   (4) Notwithstanding section 8.33, moneys appropriated in 3   this paragraph that remain unencumbered or unobligated at the 4   close of the fiscal year shall not revert but shall remain 5   available for expenditure for the purposes designated. 6   (5) Moneys appropriated in this paragraph shall not 7   supplant other appropriated moneys. 8   Sec. 80. Section 29C.6, Code 2025, is amended by adding the 9   following new subsection: 10   NEW SUBSECTION   . 18. Direct an appropriation under section 11   8.55, subsection 3, paragraph f , with the approval of the 12   executive council. 13   DIVISION VIII 14   IOWA ECONOMIC EMERGENCY FUND  APPROPRIATIONS 15   Sec. 81. NUISANCE PROPERTY REMEDIATION ASSISTANCE FUND  16   FY 2024-2025. There is appropriated from the Iowa economic 17   emergency fund created in section 8.55 to the economic 18   development authority for the fiscal year beginning July 1, 19   2024, and ending June 30, 2025, the following amount, or so 20   much thereof as is necessary, to be used for the purposes 21   designated: 22   For deposit in the nuisance property remediation assistance 23   fund established in section 15.338: 24   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 25   Notwithstanding section 8.33, moneys appropriated in this 26   section that remain unencumbered or unobligated at the close of 27   the fiscal year shall not revert but shall remain available for 28   expenditure for the purposes designated until the close of the 29   succeeding fiscal year. 30   Sec. 82. DISASTER RECOVERY HOUSING ASSISTANCE FUND  31   FY 2024-2025. There is appropriated from the Iowa economic 32   emergency fund created in section 8.55 to the Iowa finance 33   authority for the fiscal year beginning July 1, 2024, and 34   ending June 30, 2025, the following amount, or so much thereof 35   -87-   LSB 1094XL (12) 91   nls/ko 87/ 103   

  S.F. _____ H.F. _____   as is necessary, to be used for the purposes designated: 1   For deposit in the disaster recovery housing assistance fund 2   created in section 16.57B: 3   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,600,000 4   Notwithstanding section 8.33, moneys appropriated in this 5   section that remain unencumbered or unobligated at the close of 6   the fiscal year shall not revert but shall remain available for 7   expenditure for the purposes designated until the close of the 8   succeeding fiscal year. 9   Sec. 83. EFFECTIVE DATE. This division of this Act, being 10   deemed of immediate importance, takes effect upon enactment. 11   EXPLANATION 12   The inclusion of this explanation does not constitute agreement with 13   the explanations substance by the members of the general assembly. 14   This bill relates to the natural hazard mitigation financing 15   program, the disaster recovery housing assistance program, the 16   disaster recovery new housing program, post-loss assignments 17   of benefits, and the licensing and regulation of adjusters, 18   appraisers and umpires. 19   DIVISION I  NATURAL HAZARD MITIGATION FINANCING PROGRAM. 20   The bill creates the natural hazard mitigation financing 21   program (program) for the purpose of making loans available 22   to eligible entities to finance all or part of the costs of a 23   project. Eligible entity and project are defined in the 24   bill. The program shall be a joint and cooperative undertaking 25   of the department of homeland security and emergency management 26   (HSEMD) and the Iowa finance authority (IFA). 27   The bill creates a natural hazard mitigation revolving loan 28   fund (fund) under the control of HSEMD, in consultation with 29   IFA, consisting of moneys and program funding as detailed in 30   the bill. 31   HSEMD, in consultation with IFA, may establish and maintain 32   funds or accounts necessary to carry out the purposes of the 33   bill. Any moneys appropriated to HSEMD and IFA for purposes 34   of paying the costs and expenses associated with the program 35   -88-   LSB 1094XL (12) 91   nls/ko 88/ 103  

  S.F. _____ H.F. _____   shall be administered as determined by IFA. The funds or 1   accounts are separate dedicated funds and accounts under the 2   administration and control of IFA, and shall not be considered 3   part of the general fund of the state, are not subject to 4   appropriation for any other purpose by the general assembly, 5   and in determining a general fund balance shall not be included 6   in the general fund of the state, but shall remain in the funds 7   and accounts maintained by HSEMD or IFA. IFA may provide for 8   the issuance of bonds or notes as detailed in the bill. 9   The duties of the director of HSEMD (director) are detailed 10   in the bill. 11   For the fiscal year beginning July 1, 2025, and each fiscal 12   year thereafter, HSEMD may prepare and deliver intended use 13   plans to, and enter into capitalization grant agreements with, 14   the administrator of the United States federal emergency 15   management agency and may accept capitalization grants for the 16   fund. HSEMD, in consultation with IFA, shall establish fiscal 17   controls and accounting procedures for the fund. 18   HSEMD and IFA shall review each loan application to 19   determine if the applicant is an eligible entity and qualifies 20   for a loan. IFA, in cooperation with HSEMD, shall determine 21   the interest rate and repayment terms for each loan under the 22   program and shall enter into a loan agreement with each loan 23   recipient. IFA may charge loan recipients fees and assess 24   costs as necessary. 25   Moneys in the fund shall be used for the primary purpose of 26   making loans to eligible entities to finance eligible costs of 27   projects in accordance with the intended use plans. The loan 28   recipients and the purpose and amount of the loans shall be 29   determined by the director. 30   HSEMD, in consultation with IFA, shall adopt rules pursuant 31   to Code chapter 17A to administer the division of the bill. 32   The bill makes a conforming change to Code section 422.7. 33   DIVISION II  DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM.   34   The bill requires a state of disaster emergency proclamation 35   -89-   LSB 1094XL (12) 91   nls/ko 89/ 103  

  S.F. _____ H.F. _____   by the governor that authorizes disaster recovery housing 1   assistance to specify if disaster recovery housing assistance 2   is available to homeowners, renters, or both homeowners and 3   renters. 4   The bill defines financial assistance as assistance 5   provided only from the funds, rights, and assets legally 6   available to IFA and includes but is not limited to assistance 7   in the form of grants, loans, and forgivable loans. 8   Under the bill, IFA shall not use more than 5 percent of the 9   moneys deposited into the disaster recovery housing assistance 10   fund for administrative and program costs. 11   Under current law, to be considered for financial assistance 12   under the disaster recovery housing assistance program, 13   a homeowner or renter must register for the disaster case 14   advocacy program. Under the bill, a homeowner or renter is not 15   required to register for the advocacy program to be considered 16   for financial assistance under the disaster recovery housing 17   assistance program. 18   The bill makes conforming changes to Code section 16.57B. 19   DIVISION III  DISASTER RECOVERY NEW HOUSING PROGRAM. The 20   bill defines qualifying state disaster recovery new housing 21   grant (grant) as an award of a state disaster recovery new 22   housing grant that was applied for between August 20, 2024, 23   and December 31, 2024, and approved and issued by the economic 24   development authority. A grant shall not be included in the 25   computation of net income for federal income tax purposes. 26   The division takes effect upon enactment and applies 27   retroactively to tax years beginning on or after January 1, 28   2024. 29   DIVISION IV  POST-LOSS ASSIGNMENT OF BENEFITS    30   RESIDENTIAL CONTRACTOR. Under the bill, a violation of Code   31   section 515.137 is an unfair method of competition and unfair 32   or deceptive act or practice in the business of insurance. 33   The bill defines post-loss assignment (assignment). The 34   assignment must only assign the insurance proceeds a named 35   -90-   LSB 1094XL (12) 91   nls/ko 90/ 103  

  S.F. _____ H.F. _____   insured is entitled to receive from the named insureds insurer 1   for the repair, replacement construction, or reconstruction of 2   the named insureds property. 3   A residential contractor (contractor) shall not engage 4   in conduct prohibited by the bill under an assignment by a 5   named insured to the contractor under a property and casualty 6   insurance policy. 7   An assignment must include an itemized description 8   containing the information detailed in the bill. 9   An assignment shall not impair the interest of a mortgagee, 10   and all mortgagees shall be named as a co-payee for the payment 11   of benefits. An assignment shall only authorize a contractor 12   to be named as a co-payee, along with the named insured and all 13   mortgagees, for the payment of benefits. An assignment shall 14   not prevent or inhibit an insurer from communicating with the 15   named insured or a mortgagee. 16   An electronic copy of a fully executed assignment shall 17   be provided to a named insured and all mortgagees of the 18   damaged residential real estate within five business days after 19   execution. A contractor named in an assignment must cooperate 20   with the insurer in a claim investigation. 21   A named insured shall have the right to cancel an assignment 22   without penalty or fee under the circumstances detailed in the 23   bill. 24   Any written contract, repair estimate, or work order 25   prepared by a contractor to provide goods or services pursuant 26   to an assignment shall include notice as provided in the bill 27   which shall be signed by the named insured and sent to the 28   named insureds insurer prior to payment. 29   For at least 72 hours following a catastrophic disaster, a 30   residential contractor shall not enter into a contract with 31   an insured that includes an assignment. If the severity of 32   the catastrophic disaster has placed people under duress, as 33   determined by the commissioner, the commissioner shall dispatch 34   the consumer advocate and personnel to provide consumer 35   -91-   LSB 1094XL (12) 91   nls/ko 91/ 103  

  S.F. _____ H.F. _____   guidance. The commissioner may extend the 72-hour period by an 1   additional 72 hours after public hearing. 2   An assignment entered into with a contractor shall be void if 3   the contractor violates the bill. 4   DIVISION V  PUBLIC, INDEPENDENT, AND STAFF ADJUSTERS. The 5   bill makes conforming changes to Code sections 507B.4, 522B.5A, 6   and 522C.1. 7   Under current law, the commissioner of insurance 8   (commissioner) shall adopt rules as necessary to administer and 9   enforce Code chapter 522C. Under the bill, the commissioner 10   may adopt such rules. 11   Under the bill, a person shall not act as, or represent that 12   the person is, a public adjuster or an independent adjuster 13   unless the person is licensed. A license as an adjuster is 14   not required for a staff adjuster, an attorney when acting 15   within their professional capacity as an attorney, or a person 16   employed only for the purpose of obtaining facts surrounding a 17   loss or to furnish technical assistance to a licensed adjuster. 18   A person applying for an adjuster license shall complete an 19   application as described in the bill. The commissioner may 20   require a criminal history check for the applicant. 21   Prior to approving an application for a resident adjuster 22   license, a nonresident adjuster license, or a business entitys 23   or nonresident business entitys application for a license for 24   a resident public adjuster or resident independent adjuster, 25   the commissioner shall find that the applicant meets the 26   requirements detailed in the bill. 27   If the commissioner does not renew a license or denies   28   an application for a license, the commissioner shall notify 29   the applicant or licensee and advise of the reason for the 30   nonrenewal or denial. Within 30 calendar days of the date of 31   the notice, the licensee or applicant may request a hearing on 32   the nonrenewal or denial.   33   Application fees for a license as an adjuster are detailed 34   in the bill. The fee for an examination may be set by a 35   -92-   LSB 1094XL (12) 91   nls/ko 92/ 103  

  S.F. _____ H.F. _____   third-party testing service and must be approved by the 1   division of insurance (division). 2   Prior to issuance of a license, an applicant shall secure 3   evidence of financial responsibility (responsibility) through 4   a surety bond (bond) as prescribed by the commissioner. The 5   bond shall be executed and issued by an insurer authorized 6   to issue bonds, and must meet the requirements of the 7   bill. The division may request that an adjuster provide 8   evidence of responsibility at any time. An adjuster shall 9   immediately notify the division if the adjusters evidence 10   of responsibility terminates or becomes impaired, and the 11   adjusters license shall become inactive. 12   An individual applying for a license shall pass a written 13   examination, unless exempt, as described in the bill. 14   A public adjuster shall not provide services to an insured 15   until a written contract with the insured has been executed. 16   The contract must meet all of the requirements detailed in the 17   bill. No provisions in the contract shall be redacted in a 18   copy of the contract submitted to the commissioner. 19   If the insurer, no later than five calendar days after the 20   date on which the insureds loss is reported, either pays 21   or commits in writing to pay the policy limits, the public 22   adjuster shall inform the insured that the total amount of 23   loss claimed by the insured may not be paid by the insured, 24   and the adjuster is only entitled to reasonable compensation 25   from the insured. Prior to execution of a contract, the public 26   adjuster shall review the terms of the contract with the 27   insured and provide a separate disclosure document that meets 28   the requirements detailed in the bill. 29   An original copy of a completed contract shall be provided to 30   the public adjuster and kept by the insured. Within 72 hours 31   of entering a contract with an insured, the public adjuster 32   shall provide the insureds insurer a notification letter. A 33   contract between a public adjuster and an insured executed in 34   violation of the bill shall not be enforceable. 35   -93-   LSB 1094XL (12) 91   nls/ko 93/ 103  

  S.F. _____ H.F. _____   The required standards of conduct for, and duties of, an 1   adjuster are detailed in the bill. An adjuster who fails 2   to comply with the standards and duties shall be subject to 3   penalties. 4   The division may place on probation, suspend, revoke, or 5   refuse to issue or renew an adjusters license, and may levy 6   a civil penalty for any of the reasons enumerated in the 7   bill. If the commissioner does not renew a license or denies 8   an application for a license, the commissioner shall notify 9   the adjuster or applicant and advise of the reason for the 10   nonrenewal or denial. The adjuster or applicant may request a 11   hearing within 30 days from the date of the notice. 12   The commissioner may conduct an investigation of any 13   suspected violation of the bill and may impose a penalty or 14   remedy against any person who is under investigation for, or 15   charged with, a violation even if the persons license has been 16   surrendered or has lapsed by operation of law. 17   All complaint files, investigation files, other 18   investigation reports, and other investigative information in 19   the possession of the commissioner that relates to adjuster 20   discipline are privileged and confidential, and may only be 21   disclosed as described in the bill. On appeal by the adjuster, 22   the commissioner shall transmit the entire record of the 23   contested case to the reviewing court. 24   Upon a determination by the commissioner, after a hearing, 25   that an adjuster has violated a provision of the bill, 26   the commissioner shall reduce the findings of the hearing 27   to writing and deliver a copy to the adjuster. Upon a 28   determination by the commissioner that an adjuster has engaged 29   in any act or practice constituting a violation of the bill, 30   the commissioner may take any of the civil actions described 31   in the bill.   32   A person acting as an adjuster without proper licensure, 33   or an adjuster who willfully violates any provision of, or 34   order issued under, Code chapter 522C is guilty of a class 35   -94-   LSB 1094XL (12) 91   nls/ko 94/ 103  

  S.F. _____ H.F. _____   D felony. When the violation results in a loss of more 1   than $10,000, the person or adjuster is guilty of a class C 2   felony. 3   An adjuster who steals, converts, or misappropriates funds 4   that should be held in trust in a fiduciary capacity is guilty 5   of a class D felony. When the violation results in a loss 6   of more than $10,000, the adjuster is guilty of a class C 7   felony. 8   A class D felony is punishable by confinement for no more 9   than five years and a fine of at least $1,025 but not more than 10   $10,245. A class C felony is punishable by confinement for 11   no more than 10 years and a fine of at least $1,370 but not more 12   than $13,660. 13   The commissioner may refer evidence concerning violations of 14   the bill to the attorney general or the county attorney who may 15   institute criminal proceedings. 16   Any contract that is entered into by an insured with a person 17   who is not a licensed public adjuster shall be void, and the 18   insured is not liable for the payment of any past or future 19   services by the person under that contract or otherwise. 20   An adjuster whose license has been revoked or suspended, 21   or who forfeited a license, may apply to the commissioner for 22   reinstatement or reissuance and submit to a criminal history 23   check. An applicant shall not be eligible for reinstatement 24   or reissuance until the applicant satisfies the requirements 25   detailed in the bill. 26   An application for reinstatement or reissuance shall allege 27   facts as required by the bill, and the burden of proof is on 28   the adjuster to establish such facts. An adjuster may request 29   reinstatement of a suspended license prior to the end of the 30   suspension term. If an order of revocation or suspension did 31   not establish terms on which reinstatement or reissuance may 32   occur, or if the license was forfeited, an initial application 33   for reinstatement or reissuance shall not be made until at   34   least one year from the date of the order. All proceedings on 35   -95-   LSB 1094XL (12) 91   nls/ko 95/ 103  

  S.F. _____ H.F. _____   the application for reinstatement or reissuance shall be held 1   in accordance with Code chapter 17A. 2   If an adjusters ordered suspension period ends prior to 3   the adjusters license expiration date, and the adjuster 4   applies for reinstatement and meets all requirements, the 5   division shall reinstate the license as soon as practicable 6   but no earlier than the end of the suspension period. If an 7   adjusters license is suspended beyond the adjusters license 8   expiration date, the adjuster must apply for reissuance. A 9   submission of voluntary forfeiture of a license shall be made 10   to the commissioner pursuant to the requirements detailed in 11   the bill. 12   The commissioner may deny an application for reinstatement 13   or reissuance, or bring an additional immediate action, if an 14   adjuster has engaged in an additional violation of Code chapter 15   507B or 522C. 16   The commissioner shall deny an adjusters application for 17   license issuance, renewal, reinstatement, or reissuance; 18   suspend a current license; or revoke a currently suspended 19   license, upon receipt of a certificate of noncompliance from 20   the child support recovery unit or the centralized collection 21   unit of the department of revenue. 22   DIVISION VI  LICENSING AND REGULATION OF APPRAISERS 23   AND UMPIRES. Under the bill, the commissioner may require a 24   criminal history check on an applicant that applies for an 25   initial license as an appraiser, or an umpire; or a renewal, 26   reinstatement, or reissuance of a license if the license of   27   an appraiser or an umpire has been revoked or suspended. The 28   commissioner may adopt rules to administer this division of the 29   bill. 30   Under the bill, a person shall not act as, or represent that 31   the person is, an appraiser or an umpire unless the person is 32   licensed.   33   A person applying for an appraiser or umpire license shall 34   submit an application prescribed by the commissioner. To be 35   -96-   LSB 1094XL (12) 91   nls/ko 96/ 103  

  S.F. _____ H.F. _____   eligible for licensure under the bill, a person shall meet all 1   of the criteria detailed in the bill. A person who meets the 2   requirements for licensure, unless otherwise denied licensure 3   pursuant to the bill, shall be issued an appraiser license or 4   an umpire license that is valid for two years. Applicable fees 5   are detailed in the bill. 6   An appraisers license and an umpires license shall contain 7   the information described in the bill. An appraiser and an 8   umpire shall be required to complete continuing education 9   requirements, as prescribed by the division, to be eligible for 10   license renewal or reinstatement. 11   An appraiser and an umpire shall inform the division of a 12   change of legal name or business address within 30 calendar 13   days of the change. Failure to timely inform the division may 14   result in a penalty. 15   The division shall publish an appraiser list and an umpire 16   list on the divisions internet site, and include all required 17   information as detailed in the bill. 18   Prior to approving a business entitys application for a 19   license as an appraiser, the commissioner shall find that the 20   business entity has designated an individual appraiser to be 21   responsible for the business entitys compliance with the 22   insurance laws and rules. 23   An appraiser or an umpire may apply for reinstatement of an 24   expired license up to one year after the license expiration 25   date by meeting the requirements of the bill. An appraiser or 26   an umpire who fails to apply for license reinstatement within 27   one year must apply for a new license. An appraiser or an 28   umpire who surrendered a license and stated an intent to exit 29   the appraiser business may file a request to reactivate the 30   license within 90 calendar days of the date the license was 31   placed on inactive status. 32   Each party to an appraisal shall be responsible for the 33   partys own appraisers fees and expenses, an equal share of 34   all reasonable and necessary fees and expenses incurred by an 35   -97-   LSB 1094XL (12) 91   nls/ko 97/ 103  

  S.F. _____ H.F. _____   umpire, and an equal share of all reasonable and necessary 1   costs incurred in the course of conducting the appraisal. An 2   appraiser or an umpire shall not charge any party on a basis 3   dependent on the outcome of the written itemized award, or 4   charge in a manner that relies on a barter arrangement, gift, 5   favor, or in-kind exchange. Prior to the conclusion of an 6   appraisal process, an appraiser or umpire shall not require, 7   demand, or accept any fee unless the loss is being handled 8   by the appraiser or umpire on a time-plus-expense basis. An 9   appraiser or umpire shall not charge a fee if the appraiser or 10   umpire abandons the appraisal prior to the umpire issuing a 11   written itemized award. 12   The required standards of conduct for, and duties of, an 13   appraiser and an umpire are detailed in the bill. An appraiser 14   or umpire who fails to comply with the standards and duties 15   shall be subject to penalties. 16   The process for an appraisal is detailed in the bill. The 17   claimant and the insurer must both provide the other party with 18   a list stating separately the actual cash value and the amount 19   of claimed loss for each item at issue. Within 20 calendar 20   days of receipt of a written demand for an appraisal, the 21   claimant and the insurer shall each select an appraiser from 22   the appraiser list. Upon selection, the appraiser shall attest 23   that the appraiser is competent and disinterested with regards 24   to the appraisal. 25   Within 15 calendar days of the selection of appraisers, both 26   appraisers shall agree on an umpire from the umpire list. A 27   party or an appraiser may object to the umpire for good cause 28   no later than five business days after the umpire has been 29   selected. A replacement umpire shall then be selected by both 30   appraisers from the umpire list. If both appraisers fail to 31   agree on an umpire, the division shall randomly select an 32   umpire from the umpire list and notify the parties. If either 33   appraiser requests that an umpire be selected by a judge, a 34   judge shall give deference to the randomly selected umpire from 35   -98-   LSB 1094XL (12) 91   nls/ko 98/ 103  

  S.F. _____ H.F. _____   the umpire list by the division unless either the claimant 1   or the insurer provides good cause for the judge to make an 2   alternative selection. 3   Within 45 calendar days from the date the umpire is 4   selected, both appraisers shall appraise the loss and submit 5   the appraisers actual cash value and amount of loss of each 6   item to the umpire. Each appraiser shall also submit written 7   authorization for the umpire to commence work. No later than 8   45 calendar days after receipt of the actual cash value and 9   amount of loss, the umpire shall prepare and provide to the 10   parties and each appraiser a written itemized award showing the 11   actual cash value and amount of loss. 12   All property insurance policies delivered, issued for 13   delivery, continued, or renewed in this state on or after 14   January 1, 2026, shall contain an appraisal clause that 15   complies with the bill. 16   An appraiser and umpire shall act with due diligence in 17   achieving an appraisal award. A insurers payment of an 18   appraisal award to an insured shall be subject to applicable 19   policy terms and conditions, limits, and deductibles. Unless 20   otherwise agreed on by the parties, an appraisal award shall be 21   binding and paid by the insurer within 60 calendar days of the 22   award being submitted to the insurer. 23   An appraiser or umpire shall report to the commissioner any 24   administrative action taken against the appraiser or umpire 25   within 30 calendar days of the final disposition. Within 26   30 calendar days of the initial pretrial hearing date, an 27   appraiser or umpire shall report to the commissioner any 28   criminal prosecution of the appraiser or umpire. An appraiser 29   or umpire who willfully fails to comply with such requirements 30   is subject to penalty. 31   An appraiser or umpire has a continuing duty and obligation 32   to keep usual and customary records pertaining to appraisals 33   in accordance with the requirements of the bill. An appraiser 34   or umpire who willfully fails to comply with such requirements 35   -99-   LSB 1094XL (12) 91   nls/ko 99/ 103  

  S.F. _____ H.F. _____   is subject to penalty. 1   Whenever the commissioner believes that a person has been 2   engaged or is engaging in a violation of the bill, and that a 3   proceeding by the commissioner would be in the public interest, 4   the commissioner shall issue and serve a statement of the 5   charges and a notice of a hearing. 6   The division may place on probation, suspend, revoke, 7   or refuse to issue or renew an appraisers license or an 8   umpires license, and may levy a civil penalty for any of 9   the causes detailed in the bill. If the commissioner does 10   not renew a license or denies an application for a license, 11   the commissioner shall notify the applicant, appraiser, or 12   umpire and advise of the reason for nonrenewal or denial. The 13   applicant, appraiser, or umpire may request a hearing within 14   30 calendar days from the date of the notice. A hearing shall 15   be conducted pursuant to the requirements detailed in the 16   bill. The license of an umpire, an appraiser, or an appraiser 17   business entity may be suspended, revoked, placed on probation, 18   or refused if the commissioner finds that an umpires, 19   appraisers, or appraiser business entitys violation was known 20   or should have been known by a partner, officer, or manager of 21   the business entity and the violation was not reported to the 22   commissioner and corrective action was not taken. 23   In addition to, or in lieu of, denial, probation, 24   suspension, or revocation of a license, an appraiser or umpire 25   may be subject to a civil penalty. The commissioner may 26   conduct an investigation and may enforce the provisions of the 27   bill.   28   All investigative information in the possession of the 29   commissioner that relates to appraiser or umpire discipline 30   is privileged and confidential, and may only be disclosed as 31   described in the bill. On appeal by the appraiser or umpire, 32   the commissioner shall transmit the entire record of the   33   contested case to the reviewing court. Upon a determination by 34   the commissioner, after hearing, that an appraiser or umpire 35   -100-   LSB 1094XL (12) 91   nls/ko 100/ 103  

  S.F. _____ H.F. _____   has violated a provision of the bill, the commissioner shall 1   reduce the findings of the hearing to writing and deliver 2   a copy of the findings to the appraiser or umpire, and the 3   commissioner may take any of the actions described in the bill. 4   A person acting as an appraiser or an umpire without proper 5   licensure, or an appraiser or an umpire who willfully violates 6   any provision of, or an order issued under, the bill is guilty 7   of a class D felony. When the violation results in a loss of 8   more than $10,000, the person or adjuster is guilty of a class 9   C felony. 10   A class D felony is punishable by confinement for no more 11   than five years and a fine of at least $1,025 but not more than 12   $10,245. A class C felony is punishable by confinement for 13   no more than 10 years and a fine of at least $1,370 but not more 14   than $13,660. 15   The commissioner may refer such evidence concerning 16   violations of the bill, or of the failure of a person to comply 17   with the licensing requirements under the bill, to the attorney 18   general or the district attorney who may institute criminal 19   proceedings. 20   An appraiser or an umpire whose license has been revoked or 21   suspended by order, or who forfeited a license, may apply to 22   the commissioner for reinstatement or reissuance, and submit to 23   a criminal history check. 24   All proceedings on the application for reinstatement or 25   reissuance shall be held in accordance with Code chapter 17A. 26   An order of reinstatement or reissuance shall be based on a   27   written decision, and may impose such terms and conditions as 28   the commissioner deems appropriate. 29   If an appraisers or an umpires ordered suspension period 30   ends prior to the appraisers or umpires license expiration 31   date and the adjuster applies for reinstatement and meets all 32   applicable requirements, the division shall reinstate the 33   license as soon as practicable but no earlier than the end 34   of the suspension period. If an appraisers or an umpires 35   -101-   LSB 1094XL (12) 91   nls/ko 101/ 103  

  S.F. _____ H.F. _____   license is suspended beyond the license expiration date, the 1   appraiser or umpire must apply for reissuance. A submission of 2   voluntary forfeiture of a license shall be made in writing to 3   the commissioner. 4   The commissioner may deny an application for reinstatement 5   or reissuance, or bring an additional immediate action, if an 6   appraiser or an umpire has engaged in additional violations. 7   The commissioner shall deny an appraisers or umpires 8   application for license issuance, renewal, reinstatement, 9   or reissuance; suspend a current license; or revoke a 10   currently suspended license, upon receipt of a certificate 11   of noncompliance from the child support recovery unit or the 12   centralized collection unit of the department of revenue. 13   DIVISION VII  IOWA ECONOMIC EMERGENCY FUND. Under 14   current law, moneys in the Iowa economic emergency fund may 15   only be used pursuant to an appropriation by the general 16   assembly, including for purposes of reducing or preventing 17   an overdraft on or deficit in the general fund of the state. 18   Each fiscal year, the bill appropriates up to 10 percent of 19   the maximum balance of the Iowa economic emergency fund to 20   the department of management for disaster response, disaster 21   recovery activities, or disaster aid to citizens, at the 22   direction of the governor, with the approval of the executive 23   council, following a proclamation of disaster emergency. 24   The bill allows the department of management to provide 25   for an interdepartmental transfer of the moneys to another 26   state entity for the purposes specified, notwithstanding the 27   limitations and requirements of Code section 8.39, including 28   notification of the general assembly. 29   DIVISION VIII  IOWA ECONOMIC EMERGENCY FUND    30   APPROPRIATIONS. For FY 2024-2025, there is appropriated from 31   the Iowa economic emergency fund to the economic development 32   authority for deposit in the nuisance property remediation 33   assistance fund $2 million. For FY 2024-2025, there is 34   appropriated from the Iowa economic emergency fund to the Iowa 35   -102-   LSB 1094XL (12) 91   nls/ko 102/ 103  

  S.F. _____ H.F. _____   finance authority for deposit in the disaster recovery housing 1   assistance program fund $11.6 million. This division of the 2   bill takes effect upon enactment. 3   -103-   LSB 1094XL (12) 91   nls/ko 103/ 103