August 1, 2007, Introduced by Senator GILBERT and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1968 PA 251, entitled
"Cemetery regulation act,"
by amending the title and sections 2, 2a, 8, 9, 10, 12, 12a, 13,
15, 16, and 18 (MCL 456.522, 456.522a, 456.528, 456.529, 456.530,
456.532, 456.532a, 456.533, 456.535, 456.536, and 456.538), the
title and sections 2, 8, 9, 10, 12, 12a, 13, 15, 16, and 18 as
amended by 2004 PA 22 and section 2a as added by 1982 PA 132, and
by adding sections 9a and 9b; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate the creation and management of cemeteries;
to
provide for a cemetery commissioner
, and to prescribe the
powers and duties of the commissioner; to require the registration
and
audit of cemeteries; to provide for standards regarding the
long-term care of certain cemeteries and trusting of certain funds;
to regulate persons selling burial, entombment, or columbarium
rights and certain merchandise; to provide for qualifications for
owners, operators, employees, and transferees of cemeteries under
certain circumstances; and to prescribe remedies and penalties.
Sec. 2. As used in this act:
(a) "Cemetery" means 1 or a combination of more than 1 of the
following:
(i) A burial ground for earth interments.
(ii) A mausoleum for crypt entombments.
(iii) A crematory for the cremation for human remains.
(iv) A columbarium for the inurnment of cremated remains.
(b) "Interment" means the disposition of human remains by
earth interment, entombment, or inurnment.
(c) "Burial right" means a right of earth interment.
(d) "Entombment right" means the right of crypt entombment in
a mausoleum or in an aboveground vault.
(e) "Columbarium right" means the right of inurnment in a
columbarium for cremated remains.
(f) "Mausoleum" means a building or other aboveground
structure that is affixed to land and is a permanent repository for
human remains.
(g) "Crypt" means a chamber in a mausoleum of sufficient size
to entomb the uncremated remains of a deceased person.
(h) "Columbarium" means a building or other aboveground
structure that is affixed to land and is a permanent repository for
cremated human remains.
(i) "Crematory" means a building or structure, within which
the remains of deceased persons are or are intended to be cremated.
(j) "Cremation" means the incineration of the body of the
deceased person.
(k) "Cemetery commissioner" or "commissioner" means the
director
of the department of labor and economic growth
commissioner of financial and insurance services or a designee of
the
director commissioner.
(l) "Depository" means a state or nationally chartered bank or
a state or federally chartered savings and loan association,
savings bank, or credit union, whose deposits are insured by an
agency of the United States government under the laws of this state
or the United States. Depository includes the trust department, if
any, of an entity referred to in this subdivision. Depository does
not include an entity described in this subdivision that is
directly or indirectly owned or controlled by a person who owns or
operates a cemetery.
(m) (l) "Municipal
corporation" means that term as defined in
section
1 of 1927 PA 10, MCL 456.181 a
county, city, village, or
township.
(n) "Office of cemetery regulation" means the office created
within the office of financial and insurance services in section
2a.
(o) (m)
"Person" means an
individual, group of individuals,
sole proprietorship, partnership, limited liability company,
association, corporation, government agency, cemetery, or a
combination of these legal entities.
(p) "Good moral character" means that term as defined and
determined under 1974 PA 381, MCL 338.41 to 338.47.
(q) "Michigan financial institution" means a state or
federally chartered bank, savings bank, savings and loan
association, or credit union that has its main or branch offices in
Michigan. Michigan financial institution does not include an entity
described in this subdivision that is directly or indirectly owned
or controlled by a person who owns or operates a cemetery.
(r) "Endowment care" means all general work necessary to keep
the cemetery property in a presentable condition at all times,
including, but not limited to, the cutting of grass at reasonable
intervals; raking, cleaning, filling, seeding, and sodding of
graves; replacement, pruning, or removal of shrubs and trees in
order to assure access to interment rights; and the repair and
maintenance of enclosures, buildings, drives, walks, and the
various memorial gardens.
Sec. 2a. (1) There is created an office of cemetery regulation
within the office of financial and insurance services. The
commissioner of financial and insurance services shall designate an
individual as the cemetery commissioner. All records, personnel,
property, and unexpended balance of appropriations, allocations,
and other funds used, held, available, or to be made available to
the director of the department of labor and economic growth for his
or her activities and responsibilities in administering this act
shall be transferred to the office of financial and insurance
services.
(2) The cemetery commissioner, or the commissioner's spouse or
child, shall not have a financial interest in a cemetery, a
supplier of cemetery services or cemetery memorials, or a funeral
establishment
as defined in section 1801 of Act No. 299 of the
Public
Acts of 1980, being section 339.1801 of the Michigan
Compiled
Laws the occupational code,
1980 PA 299, MCL 339.1801.
Sec.
8. (1) The commissioner may shall promulgate
rules in
accordance
with and subject to under the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement and
administer this act, including, but not limited to, rules regarding
all of the following:
(a) The maintenance of records relative to the financial
aspects of cemeteries.
(b) Requirements for applications for the granting of permits
and registrations required under this act, including, but not
limited to, the good moral character and financial security,
responsibility, and stability of individuals having an interest in
the cemetery and all persons with decision-making authority that
are employed by the applicant, registrant, or permittee.
(c) The formal and informal procedures governing the conduct
of
contested cases under this act before the commissioner or an
authorized
a designated hearing officer.
(d) Requirements for third-party trustees.
(e) The establishment, control, record keeping, and auditing
of endowment care trusts, merchandise trust accounts, and related
trust funds.
(f) Requirements for trust agreements, endowment care trusts,
and merchandise trust accounts.
(2) The commissioner shall update any existing rules that must
be changed due to the amendatory act that added this subsection
within 12 months after the effective date of the amendatory act
that added this subsection.
Sec. 9. (1) The commissioner may hold hearings, conduct
investigations, administer oaths, take testimony under oath, and
request in writing the appearance and testimony of witnesses,
including the production of books and records. Upon the refusal of
a witness to appear, testify, or submit books and records after a
written
request, the commissioner or a party to a contested case
may
apply to may issue a subpoena
in furtherance of an
investigation or a hearing. The commissioner may petition the
circuit court for Ingham county for an order to issue, as part of
the commissioner's general investigative and enforcement authority,
a subpoena or a subpoena duces tecum relating to any person's
appearance and testimony and for the production, examination, or
copying of books, papers, or other documents pertaining to an
investigation or hearing that is within the scope of the
commissioner's
authority under this act. The court
shall issue a
subpoena
an order for the issuance of
subpoenas when reasonable
grounds are shown.
(2) The commissioner has the authority to control, manage, and
dispose of or transfer abandoned cemeteries or to require
acceptance of responsibility for an abandoned cemetery according to
law. The commissioner may promulgate rules that are necessary for
the department to carry out its powers and duties under this
subsection.
(3) Failure to obey a subpoena issued to any person by the
commissioner or the circuit court may subject the person to
punishment by the circuit court as a contempt of court.
(4) Any person required by this act to take any oath or
affirmation and who makes any false oath or affirmation is
considered to have committed the crime of perjury.
(5) (2)
When it appears to the commissioner
that a person or
registrant
has violated engaged in,
or is about to engage in, any
act or practice constituting a violation of this act or a rule
promulgated or order issued under this act, the commissioner may do
1 or more of the following:
(a) Issue a cease and desist order.
(b) Accept an assurance of discontinuance of the violation.
(c) Bring an action in the circuit court for the county in
which the person resides or in the circuit court for the county of
Ingham, to enforce compliance with this act or a rule promulgated
or order issued under this act.
(6) (3)
Upon a proper showing regarding an
action brought
under
subsection (2)(c) (5)(c), a permanent or temporary injunction
or a restraining order may be granted and a receiver or conservator
may be appointed by the court. A receiver or conservator appointed
by the court shall receive compensation from the cemetery as
determined by the court. The receiver or conservator may operate
the cemetery and take possession of the assets. The receiver or
conservator shall have the rights and obligations of the cemetery
as to all trust and escrow accounts and may sell, assign, transfer,
or
convey the cemetery , including a cemetery in receivership on
the
July 26, 2002 date of the amendatory act that amended this
subsection,
and any of the assets to a municipal corporation or
other person other than the holder of a license for the practice of
mortuary science or a person who owns, manages, supervises,
operates, or maintains, either directly or indirectly, a funeral
establishment, under conditions prescribed by the court, in order
to discharge outstanding contractual obligations. A receiver or
conservator appointed under this section has all the powers,
authority, and remedies of an assignee for the benefit of creditors
under chapter 52 of the revised judicature act of 1961, 1961 PA
236, MCL 600.5201 to 600.5265. The court may allow the receiver or
conservator to file for protection under the bankruptcy code.
(7) Subject to court approval, a receiver or conservator may
do any of the following:
(a) Take possession of the books, records, and assets of the
cemetery or cemetery entity.
(b) Employ employees and agents, legal counsel, actuaries,
accountants, appraisers, consultants, and such other personnel as
he or she considers necessary.
(c) Fix the reasonable compensation of employees and agents,
legal counsel, actuaries, accountants, appraisers, and consultants
with the court's approval.
(8) (4)
In the order of sale of the
cemetery, the court shall
make provision for notice to creditors and the filing of claims
against
the receivership or conservatorship. Any remaining funds
Funds
held by the cemetery in trust or in escrow under this act
belong
to the contract buyers or beneficiaries of the contract
buyers
and shall not be distributed to the
general creditors of the
cemetery. This section does not prohibit the court from allowing
the sale of the cemetery to a person other than the holder of a
license for the practice of mortuary science or a person who owns,
manages, supervises, operates, or maintains, either directly or
indirectly, a funeral establishment, or from allowing the sale of
the cemetery to a municipal corporation.
(9) (5)
In addition to an action taken
under this section, the
commissioner may deny an application or may suspend or revoke a
permit
or registration after a an
administrative hearing as set
forth
provided for in this act.
Sec. 9a. All departments, state agencies, public bodies
corporate, committees, commissioners, or officers of this state,
and any political subdivision of this state, so far as is
compatible with their duties, shall give the commissioner or his or
her designee any necessary assistance required by the commissioner
in the performance of the duties of the commissioner. All
departments, state agencies, public bodies corporate, committees,
commissioners, or officers of this state, and any political
subdivision of this state, shall provide the commissioner free
access to any book, record, or document in their custody relating
to the matters within the scope of the commissioner in the
performance of his or her duties.
Sec. 9b. The commissioner may enter into contracts to
accomplish requirements under this act, including for the
engagement of consultants.
Sec. 10. (1) The commissioner shall institute and maintain a
system of auditing trust funds required by this act and of
registering each cemetery authorized to be created, maintained, and
operated
under 1869 PA 12, MCL 456.101 to 456.119, and 1855 PA 87,
MCL
456.1 to 456.36, and conducting sales under the prepaid funeral
and
cemetery sales act, 1986 PA 255, MCL 328.211 to 328.235 in
Michigan, as well as any other cemetery operating under state law
or local ordinance. A cemetery owned and operated by a municipal
corporation, church, or religious institution is exempt from this
act. However, a municipal corporation may pass ordinances necessary
for regulating that municipal corporation's cemeteries.
(2) A cemetery for earth interment of 10 acres or less in
size, which is owned and operated entirely and exclusively by an
existing nonprofit entity and in which a burial has taken place
before September 15, 1968, is exempt from the fee provisions of
this act, shall have the trust fund required by this act audited at
the discretion of the commissioner, and is exempt from the
endowment care trust fund requirements of section 16, except for
the
report requirements if the cemetery maintains endowment care or
memorial
trust funds.
Sec. 12. (1) A person shall not establish a cemetery without a
valid permit or operate an existing cemetery except under a valid
registration issued under this act.
(2) If a person proposes to purchase or otherwise acquire a
controlling interest in an existing cemetery company, that person
shall first apply to the commissioner for a certificate of approval
of a proposed change of control of a cemetery company. The
application shall contain the following:
(a) The name and address of the proposed new owner or
operator. and
(b) A statement that the proposed new owner or operator agrees
to assume the liabilities of the cemetery and to preserve the
assets of any prepaid merchandise or service contracts and any
trust and endowment care trust accounts. A copy of an agreement to
assume liabilities shall be attached to the application submission.
(c) Any other information as the commissioner requires.
(3) The commissioner shall issue a certificate of approval for
a change of control only after he or she is satisfied that the
proposed new owner or operator is qualified by good moral
character, experience, and financial stability, responsibility, and
security to control and operate the cemetery in a legal and proper
manner, and that the interest of the public generally will not be
jeopardized by the proposed change in ownership and management. The
application for a purchase or change of control must be accompanied
by
an initial filing or investigation fee of $500.00 $5,000.00.
(4) If a person fails to comply with this section, the
commissioner
shall order that an administrative hearing be held. If
may do any of the following if a transfer of controlling interest
is
found to have taken place without prior commissioner approval: ,
the
commissioner may suspend
(a)
Suspend or revoke the registration of
the cemetery. or
take
(b) Issue a cease and desist order or other order requiring a
person to immediately take remedial action as prescribed by the
commissioner.
(c) Seek injunctive or other equitable action from a court of
competent jurisdiction.
(d)
Take other appropriate action until it
the person
purchasing or otherwise acquiring a controlling interest in an
existing cemetery, purchasing an existing cemetery, or otherwise
acquiring the cemetery demonstrates compliance with this section or
divests itself of any interest or control of the cemetery.
(5) (3)
As used in this section,
"controlling interest" means
the capability to decide the operating and financial policies of
the cemetery company or to select the officers or directors with
majority control of the cemetery company.
Sec. 12a. (1) The commissioner or an examiner, investigator,
or other person the commissioner may appoint, may visit and examine
the affairs of any cemetery or person required to register under
this act and shall have free access to the books, papers, records,
and documents that relate to the business of the cemetery
corporation, person, or agent acting on its behalf.
(2) The books, papers, records, and documents shall be
available for inspection or audit at any time during regular
business hours with reasonable notice. One or more qualified
persons designated by the commissioner shall conduct the audit,
whose
services shall be charged to and paid by the cemetery. at
the
rate
of $10.00 per hour, but not more than $1,000.00 total.
Sec. 13. (1) Any person desiring to establish a cemetery shall
file with the commissioner, on forms furnished by the commissioner,
an application for a permit to establish a cemetery. The
application
shall be accompanied by an a
nonrefundable
investigation
fee of $500.00 $5,000.00.
(2) After a receipt of an application, the commissioner shall
conduct an investigation pertaining to the physical plans, the
community need for the planned cemetery, and pertinent information
pertaining to the applicant's experience, financial security,
responsibility,
and stability, ability, and integrity
good moral
character. If the applicant is not a natural person an individual,
the
same investigation shall be made of the general manager and
principal
owners, directors, officers, partners, members, or
any
person occupying a similar status or performing similar functions,
or any person directly or indirectly controlling the cemetery
entity.
(3) A person directly or indirectly controlling the cemetery
includes all of the following:
(a) A person who holds at least a 50% interest in a cemetery.
(b) A person who is an owner, director, partner, member, or
manager of the cemetery.
(c) An individual who is an officer of the person who holds at
least a 10% interest in a cemetery corporation or other entity
having control of the cemetery.
(4) A cemetery company shall immediately notify the
commissioner of any change in its directors, officers, partners,
members, or any persons occupying a similar status or performing
similar functions. If after investigation the commissioner
determines that any new director, officer, partner, member, or a
person occupying a similar status or performing a similar function
does not have suitable experience, financial security,
responsibility, and stability, ability, and good moral character,
the commissioner shall order the cemetery company to sever its
relationship with that person.
Sec. 15. (1) Each person owning, managing, or operating a
cemetery shall register the cemetery by filing with the
commissioner a registration application before June 2 of each year,
on a form furnished by the commissioner, and accompanied by the
registration fee. A registration expires on July 1 of each year.
(2) If the commissioner intends to deny registration, the
procedure set forth in section 19 shall be followed. The
commissioner may impose a late penalty filing fee of $10.00 per day
on a person which filed a registration application after June 1.
Sec. 16. (1) The commissioner shall require each cemetery to
establish
and maintain an irrevocable endowment care trust fund, as
required
by section 35a of 1855 PA 87, MCL 456.35a, or section 7a
of
1869 PA 12, MCL 456.107a, and to the
income or proceeds from
which shall be perpetually devoted for endowment care. Money in the
endowment care trust fund shall not be commingled with any other
money, including endowment care trust funds from other cemeteries.
The cemetery shall report annually before July 1 of each year, on
forms approved and furnished by the commissioner, endowment care
fund information required to be reported to the commissioner by
other statutes and information regarding the funds as the
commissioner considers pertinent in the public interest. A cemetery
applying
to the commissioner as authorized by other statutes for a
an endowment care fund deposit modification or waiver shall be
assessed the actual expenses for an examination or investigation by
the commissioner.
(2) The irrevocable endowment care trust fund shall be
established with a single Michigan financial institution that shall
agree to serve as a trustee. Money in the endowment care trust fund
shall be invested by the trustee in 1 or more interest-bearing
accounts in a depository. Documents, reports, and records regarding
the fund shall be kept in a Michigan financial institution.
(3) Beginning the effective date of the amendatory act that
added this subsection, an irrevocable endowment care trust fund
shall be created by the deposit of at least $150,000.00 into the
fund before any sale of burial rights, entombment rights, or
columbarium rights is made.
(4) Each month, not less than 15% of all proceeds received
during the previous month from the sales of burial rights,
entombment rights, or columbarium rights shall be deposited with
the trustee for inclusion in the endowment care trust fund. No
total deposit for a single burial right sale or assignment shall be
less than $20.00. A cemetery may apply to the commissioner for a
modification of the minimum deposit requirement. The commissioner
shall take testimony and investigate as he or she considers
necessary. If the commissioner determines that the applicant's
endowment care trust fund will generate sufficient interest to meet
all current and future costs of keeping the applicant's cemetery in
good condition, the commissioner may modify the minimum deposit
requirement. A cemetery applying to the commissioner for a
modification of the endowment care trust fund deposit requirements
shall be assessed the actual costs for the commissioner's
examination and investigation.
(5) The commissioner shall require each person engaged as
agent
or seller , as a means of livelihood either part time or full
time,
in the selling of burial rights,
entombment rights, or
columbarium rights owned by a party other than a cemetery or
corporation subject to the irrevocable endowment care trust fund
requirements of this act and other laws, to deposit 15% of all
gross proceeds received from the sales of those rights into the
irrevocable endowment care trust fund of the cemetery in which the
rights are located if an irrevocable endowment care trust fund
exists
for that cemetery. Excess sums on deposit in the fund can be
applied
by a cemetery against future deposits. A deposit required
to be made by those persons shall be modified or waived if the
cemetery has received an irrevocable endowment care trust fund
deposit modification or waiver approved by the commissioner. The
total deposit for a single adult burial right sale or assignment
shall not be less than $20.00.
(6) Interest from the money in the endowment care trust fund
shall be used exclusively for endowment care. No portion of the
interest may be used directly or indirectly for salaries or other
payments to the officers, directors, partners, members, or managers
of the entity owning the cemetery. Withdrawals of accumulated
interest from the endowment care trust fund may be authorized by
the trustee, and such withdrawals shall be documented in the manner
provided by rule of the commissioner. A cemetery shall maintain
records showing that interest from the endowment care trust fund is
used exclusively for endowment care.
(7) (2)
Subject to subsection (8) (14),
a cemetery which that
is
required to register pursuant to this act and an agent which is
authorized by a cemetery or acting on its behalf under an agreement
or sales contract to sell cemetery merchandise or cemetery services
shall establish a merchandise trust account and deposit a
percentage of the gross proceeds received from the sales as
determined by the commissioner. The merchandise trust account shall
be
maintained exclusively for the deposit of the money into a state
or
national bank, a state or federally chartered savings and loan
association,
or a trust company Michigan
financial institution
under the terms of a written trust agreement approved by the
commissioner. All documents, reports, and records regarding the
trust shall be kept in Michigan. It shall be the responsibility of
each registrant under this act to assure that documents relating to
the merchandise trust account are provided to the commissioner upon
request. If a subpoena is issued to obtain these documents, the
registrant shall pay all costs related to obtaining the documents.
regardless
of the $100.00 charge limitation contained in section
12a(2).
The funds shall be deposited not
later than the month
following their receipt.
(8) (3)
Subject to subsection (8) (14),
the total deposits to
a merchandise trust for the sale of cemetery burial vaults or other
outside containers, other than crypts installed underground and
sold as part of a cemetery lot, shall at all times be not less than
the greater of $100.00 per vault or outside container or 130% of
the total costs of the containers covered by the trust. Money
deposited in connection with a sale shall be repaid within 30 days
upon written demand of purchaser. A burial vault shall be installed
only at need or by separate written authorization of the purchaser.
The cemetery shall have the right to withdraw the amount on deposit
for the delivered vault or outside container.
(9) (4)
Subject to subsection (8) (14),
a contract or
agreement made with a purchaser of cemetery merchandise and
cemetery services shall contain a complete description of the
cemetery merchandise purchased and of the cemetery services to be
rendered.
(10) (5)
The commissioner shall require each
a cemetery or
agent
authorized by it acting on its behalf to
report annually
before July 1 of each year on forms provided by the commissioner.
The reports shall contain information as the commissioner considers
necessary
to ascertain that the
requirements of this act is and
rules promulgated under this act are being implemented. If funds in
the endowment care trust fund and the merchandise trust account
exceed $50,000.00, the report shall be accompanied by a report
prepared by a Michigan certified public accountant expressing an
opinion as to whether the requirements of this section have been
met. At a minimum, the commissioner shall require the following
information concerning the endowment care trust fund:
(a) Beginning and ending balances.
(b) Receipts from the sale of burial, entombment, and
columbarium rights.
(c) Deposits to the endowment care trust fund.
(d) Itemized withdrawals of interest.
(e) Documentation establishing that withdrawn interest was
utilized solely for endowment care.
(11) (6)
If, after an audit by the
commissioner's staff, a
deficit in the amount of required deposits to the trust funds is
found,
the commissioner may assess a penalty not to exceed 10% of
in
the amount of the deficit allowed under this act. The cemetery
or
entity of a cemetery may
request an administrative hearing
before the commissioner or a designated hearing officer within 30
days after being notified of a deficit by the commissioner. If,
following the administrative hearing, the commissioner determines
that a deficit does exist, an additional penalty not to exceed 1.5%
may be assessed each month on the unpaid monthly balance until the
deficit is paid in full.
(12) In addition to all other remedies at law or in equity,
the attorney general and the circuit court of the county in which
the cemetery is located shall have all the powers and jurisdiction
granted to the attorney general and court as to trusts covered by
1915 PA 280, MCL 554.351 to 554.353. The remedies granted include
all endowment care trust funds without regard to uncertainty or
indefiniteness of beneficiaries.
(13) (7)
All fees, charges, and penalties, or other money from
any source, collected under this act, other than fines prescribed
in
section 21 this act, shall be paid to the commissioner. Upon
receipt, the commissioner shall remit funds received to the
department of treasury for deposit in the general fund of the
state.
(14) (8)
Any preneed contracts for cemetery
merchandise or
services entered into on or after January 1, 2005 are subject to
the prepaid funeral and cemetery sales act, 1986 PA 255, MCL
328.211 to 328.235.
(9)
As used in this section, "endowment care" means all
general
work necessary to keep the cemetery property in a
presentable
condition at all times, including, but not limited to,
the
cutting of grass at reasonable intervals; raking, cleaning,
filling,
seeding, and sodding of graves; replacement, pruning, or
removal
of shrubs and trees in order to assure access to interment
rights;
and the repair and maintenance of enclosures, buildings,
drives,
walks, and the various memorial gardens.
Sec. 18. (1) The commissioner may deny an application filed
under this act and refuse to issue a permit or registration, or may
suspend or revoke a permit or registration, or may reprimand, place
on probation, or take other disciplinary action against the
applicant if the commissioner's investigation reveals facts which,
with reference to the establishment of a cemetery, show
inappropriate physical plans; lack of community need; inadequate
experience, financial stability, or integrity to protect the public
welfare; or when the commissioner finds that the applicant or its
officers, owners, directors, members, or general manager has done 1
or more of the following:
(a) Made a false statement of a material fact in the
application.
(b) Not complied with this act.
(c) Been guilty of an unlawful or fraudulent act in connection
with selling or otherwise dealing in cemetery lots and burial
rights regulated by this act or funeral or cemetery merchandise and
services regulated by the prepaid funeral and cemetery sales act,
1986 PA 255, MCL 328.211 to 328.235.
(d) Been guilty in the judgment of the commissioner of other
conduct whether of the same or different character than specified
in this act which constitutes dishonest and unfair dealing or a
demonstration of lack of good moral character.
(e) Violated article 18 of the occupational code, 1980 PA 299,
MCL 339.1801 to 339.1812.
(f) Violated the terms of an assurance of discontinuance
entered
into with the commissioner pursuant to section 9(2) 9(5).
(g) Violated the prepaid funeral and cemetery sales act, 1986
PA 255, MCL 328.211 to 328.235.
(h) Failed to comply with section 2080 of the insurance code
of 1956, 1956 PA 218, MCL 500.2080.
(i) Adopted, enforced, or attempted to enforce a regulation of
the cemetery that prohibits the installation of a grave memorial or
burial vault unless the grave memorial or burial vault was
purchased from the cemetery. This subdivision does not prohibit a
cemetery from adopting and enforcing consistent rules and
regulations to be followed by both the cemetery and outside vendors
as to the quality, size, shape, type, installation, and maintenance
of the grave memorial or burial vault.
(2) If the commissioner denies an application for a permit or
registration, or suspends or revokes an existing permit or
registration required by this act, the denial, revocation, or
suspension shall revoke the cemetery operation as to the sale or
assignment of burial rights, entombment rights, or columbarium
rights, cemetery merchandise, or cemetery services after the date
of the suspension, revocation, or denial. The cemetery corporation
shall fulfill all contractual obligations and agreements entered
into before the date of the suspension, revocation, or denial, and
shall make required interments for the owners of burial rights,
entombment rights, or columbarium rights purchased before the date
of suspension, revocation, or denial.
(3) The commissioner may impose an administrative fine of not
more than $5,000.00 for each separate violation of this act.
Enacting section 1. (1) Sections 107 and 107a of 1869 PA 12,
MCL 456.107 and 456.107a, are repealed.
(2) Sections 35 and 35a of 1855 PA 87, MCL 456.35 and 456.35a,
are repealed.