SENATE BILL No. 1580

 

 

November 4, 2010, Introduced by Senator PAPPAGEORGE and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1968 PA 251, entitled

 

"Cemetery regulation act,"

 

by amending section 10 (MCL 456.530), as amended by 2008 PA 478.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 in this state, 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, or a

 

corporation that has more than 48% ownership by a qualified charity

 

is exempt from this act. Beginning the effective date of the

 

amendatory act that added this sentence, a corporation that has


 

more than 48% ownership by a qualified charity and that is seeking

 

exemption from this act under this subsection shall notify the

 

commissioner in writing and submit a statement composed by an

 

independent Michigan-licensed certified public accountant

 

describing and certifying the nature of the charitable ownership of

 

the corporation. Annually thereafter, the corporation shall submit

 

such a statement in order to maintain its exemption under this

 

subsection. Within 30 days after the corporation is determined to

 

have fallen below the over-48% ownership requirement, the

 

corporation is considered subject to this act and shall notify the

 

commissioner in writing. 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 and

 

perpetual care trust funds.

 

     (3) As used in this section, "qualified charity" means a

 

charitable trust or entity that either qualifies under section

 

5012(c)(3) of the internal revenue code, 26 USC 501, or is a trust

 

in which the sole beneficiary of the trust is the cemetery.