HOUSE BILL No. 4603


     April 17, 2001, Introduced by Reps. Ehardt, Raczkowski, Van Woerkom, Vander Veen, Voorhees, Hager, Sanborn and Julian
and referred to the Committee on Commerce.


        A bill to amend 1986 PA 255, entitled

   "Prepaid funeral contract funding act,"

   by amending section 19 (MCL 328.229).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 19.  (1) A prepaid funeral contract may be made with an

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      applicant for or recipient of assistance under the social welfare

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      act,  Act No. 280 of the Public Acts of 1939, being sections

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      400.1 to 400.121 of the Michigan Compiled Laws  1939 PA 280, MCL

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      400.1 TO 400.119B, or a patient or a legal guardian of a patient

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      in a  mental  COMMUNITY health care facility under the jurisdic-

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      tion of the department of  mental  COMMUNITY health.  If the

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       department of social services  FAMILY INDEPENDENCE AGENCY or

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      department of  mental  COMMUNITY health determines that the

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      contract is a fully paid guaranteed price contract,  of not more

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      than $2,000.00  WHICH WHEN ADDED TO THE AMOUNT OF A DEATH BENEFIT


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      FROM AN ASSOCIATED LIFE INSURANCE POLICY OR ANNUITY CONTRACT

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      ISSUED PURSUANT TO SECTION 2080 OF THE INSURANCE CODE OF 1956,

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      1956 PA 218, MCL 500.2080, AND COVERING THE LIFE OF THE CONTRACT

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      BENEFICIARY DOES NOT EXCEED NOT MORE THAN THAT AMOUNT ALLOWED

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      UNDER SECTION 2080(6)(G) OF THE INSURANCE CODE OF 1956, 1956 PA

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      218, MCL 500.2080, PLUS $2,000.00, exclusive of income, and that

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      the state will not be liable for the funeral goods OR CEMETERY

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      MERCHANDISE or funeral AND CEMETERY services, excluding an out-

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      side receptacle when required by the chosen cemetery, of the

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      applicant for or recipient of assistance or patient allowable

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      under contracts under this act, the prepaid funeral contract

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      shall be made irrevocable at the request of the applicant for or

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      recipient of assistance, or the patient or a legal guardian of a

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      patient.  The  department of social services  FAMILY INDEPENDENCE

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      AGENCY or department of  mental  COMMUNITY health shall advise

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      the applicant for or recipient of assistance, or the patient or a

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      legal guardian of a patient that additional funeral goods AND

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      CEMETERY MERCHANDISE or funeral AND CEMETERY services subject to

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      contract under this act will not be paid by the  department of

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      social services  FAMILY INDEPENDENCE AGENCY or department of

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       mental  COMMUNITY health but shall not specify or require

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      approval of particular funeral goods AND CEMETERY MERCHANDISE or

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      funeral AND CEMETERY services selected by the applicant for or

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      recipient of assistance, or patient or a legal guardian of a

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      patient.

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           (2) A prepaid funeral contract approved by the  department

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      of social services  FAMILY INDEPENDENCE AGENCY or department of



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       mental  COMMUNITY health shall not be revoked or canceled by the

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      contract seller, contract provider, contract buyer, or their suc-

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      cessors, or the estate of the contract beneficiary either before

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      or after the death of the contract beneficiary.  However, noth-

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      ing in this  THIS subsection  shall  DOES NOT prevent those

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      legally entitled to make arrangements for a contract beneficiary

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      from reallocating the amount paid under the prepaid contract to

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      different funeral AND CEMETERY services and funeral goods AND

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      CEMETERY MERCHANDISE.  An irrevocable contract shall not be con-

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      sidered in determining the eligibility of an applicant or recipi-

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      ent for assistance given under  Act No. 280 of the Public Acts of

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      1939  THE SOCIAL WELFARE ACT, 1939 PA 280, MCL 400.1 TO

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      400.119B.  An irrevocable prepaid funeral contract made under

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      this section  shall  IS not  be  subject to the
   cancellation pro-

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      vision of section 13 or to THE PROVISIONS OF section  15(6) 

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      15(5).

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           (3) Notwithstanding any other provisions of this act, funds

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      paid in connection with an irrevocable prepaid funeral contract

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      may, at the option of the provider, be held and deposited in the

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      manner prescribed for a nonguaranteed price contract.

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           (4) The  department of social services  FAMILY INDEPENDENCE

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      AGENCY and department of  mental  COMMUNITY health may promulgate

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      rules under the administrative procedures act of 1969,  Act

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      No. 306 of the Public Acts of 1969, being sections 24.201 to

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      24.328 of the Michigan Compiled Laws  1969 PA 306, MCL 24.201 TO

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      24.328, to provide for the uniform administration of this

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      section.



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