SB-0037,As Passed Senate,May 1, 2003 SB 37 - Amendment No. 1

The Committee on Local, Urban and State Affairs offered the following substitute:

April 3, 2003

SUBSTITUTE FOR

SENATE BILL NO. 37

                                                                             A bill to amend 1968 PA 251, entitled                                             

"Cemetery regulation act,"                                                  

by amending section 16 (MCL 456.536), as amended by 1982 PA 132.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 16.  (1) The commissioner shall require each cemetery                  

2   to establish and maintain an irrevocable endowment care fund as             

3   required by section 35a of  Act No. 87 of the Public Acts of                

4   1855, being section 456.35a of the Michigan Compiled Laws 1855             

5   PA 87, MCL 456.35a, or section 7a of  Act No. 12 of the Public              

6   Acts of 1869, as amended, being section 456.107a of the Michigan

7   Compiled Laws 1869 PA 12, MCL 456.107a, and to report annually             

8   before July 1 of each year, on forms approved and furnished by              

9   the commissioner, care fund information required to be reported             

10  to the commissioner by other statutes and information regarding             

11  the funds as the commissioner considers pertinent in the public             

1   interest.  A cemetery applying to the commissioner as authorized            

2   by other statutes for a care fund deposit modification or waiver            

3   shall be assessed the actual expenses for an examination or                 

4   investigation by the commissioner.  The commissioner shall                  

5   require each person engaged as agent or seller, as a means of               

6   livelihood either part time or full time, in the selling of                 

7   burial rights, entombment rights, or columbarium rights owned by            

8   a party other than a cemetery or corporation subject to the                 

9   irrevocable endowment care fund requirements of other laws, to              

10  deposit 15% of all gross proceeds received from the sales of                

11  those rights into the irrevocable endowment care fund of the                

12  cemetery in which the rights are located if an irrevocable                  

13  endowment care fund exists for that cemetery.  Excess sums on               

14  deposit in the fund can be applied by a cemetery against future             

15  deposits.  A deposit required to be made by those persons shall             

16  be modified or waived if the cemetery has received  a an                   

17  irrevocable endowment care fund deposit modification or waiver              

18  approved by the commissioner.  The total deposit for a single               

19  adult burial right sale or assignment shall not be less than                

20  $20.00.                                                                     

21      (2) A cemetery which is required to register pursuant to this               

22  act and an agent which is authorized by a cemetery or acting on             

23  its behalf under an agreement or sales contract to sell cemetery            

24  merchandise or cemetery services shall establish a merchandise              

25  trust account and deposit a percentage of the gross proceeds                

26  received from the sales as determined by the commissioner.  The             

27  merchandise trust account shall be maintained exclusively for the           

1   deposit of the money into a  bank state or national bank, a                

2   state or federally chartered savings and loan association, or a

3   trust company  located in this state  under the terms of a                  

4   written trust agreement approved by the commissioner.  The funds            

5   shall be deposited not later than the month following their                 

6   receipt.                                                                    

7       (3) The total deposits to a merchandise trust for the sale of               

8   cemetery burial vaults or other outside containers, other than              

9   crypts installed underground and sold as part of a cemetery lot,            

10  shall at all times be not less than the greater of $100.00 per              

11  vault or outside container or 130% of the total costs of the                

12  containers covered by the trust.  Money deposited in connection             

13  with a sale shall be repaid within 30 days upon written demand of           

14  purchaser.  A burial vault shall be installed only at need or by            

15  separate written authorization of the purchaser.  The cemetery              

16  shall have the right to withdraw the amount on deposit for the              

17  delivered vault or outside container.                                       

18      (4) A contract or agreement made with a purchaser of cemetery               

19  merchandise and cemetery services shall contain a complete                  

20  description of the cemetery merchandise purchased and of the                

21  cemetery services to be rendered.                                           

22      (5) The commissioner shall require each cemetery or agent                   

23  authorized by it acting on its behalf to report annually before             

24  July 1 of each year on forms provided by the commissioner.  The             

25  reports shall contain information as the commissioner considers             

26  necessary to ascertain that this act is being implemented.                  

27      (6) If, after an audit by the commissioner's staff, a deficit               

Senate Bill No. 37 as amended April 30, 2003                                

1   in the amount of required deposits to the trust funds is found,             

2   the commissioner may assess a penalty not to exceed 10% of the              

3   amount of the deficit.  The cemetery or entity of a cemetery may            

4   request a hearing before the commissioner within 30 days after              

5   being notified of a deficit by the commissioner.  If, following             

6   the hearing, the commissioner determines that a deficit does                

7   exist, an additional penalty not to exceed 1.5% may be assessed             

8   each month on the unpaid monthly balance until the deficit is               

9   paid in full.                                                               

10      (7) All fees, charges, and penalties collected under this                   

11  act, other than fines prescribed in section 21, shall be paid to            

12  the commissioner.  Upon receipt, the commissioner shall remit               

13  funds received to the department of treasury for deposit in the             

14  general fund of the state.                                                  

15  (8) <<As used in this section, "endowment care" means all general

16  work necessary to keep the cemetery property in a presentable condition

17  at all times, including, but not limited to, the cutting of grass at

18  reasonable intervals; raking, cleaning, filling, seeding, and sodding of

19  graves; replacement, pruning, or removal of shrubs and trees in order to

20  assure access to internment rights; and the repair and maintenance of

21  enclosures, buildings, drives, walks, and the various memorial gardens.

22 

23                           >>

24      Enacting section 1.  This amendatory act does not take                      

25  effect unless all of the following bills of the 92nd Legislature            

26  are enacted into law:                                                       

27      (a) Senate Bill No. 38.                                                     

1       (b) Senate Bill No. 39.