HB-4456, As Passed House, May 17, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4456

     A bill to amend 1915 PA 58, entitled

"An act to provide for the incorporation of cremation companies and

associations; and to impose certain duties upon the department of

commerce,"

by amending section 6 (MCL 456.206); and to repeal acts and parts

of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6. (1) A corporation shall have the power to acquire by

gift, devise, or purchase, and hold in fee simple, land that is

necessary and appropriate for its purposes.

     (2) No mortgage or other lien or encumbrance, shall be

executed upon the lands or buildings of such corporation actually

used for the disposal of the dead as specified in the provisions of

this act. A mortgage or other lien or encumbrance shall not be

House Bill No. 4456 (H-2) as amended May 3, 2011

executed upon the lands or buildings of a columbarium.

     (3) A mortgage or other lien or encumbrance may be executed on

the land or buildings that are not under or part of a columbarium

if, and only if, the corporation, landlord, mortgagee, or lender,

as determined by the cemetery commissioner, files and maintains in

force a corporate surety bond and a cash bond that are conditioned

upon the faithful performance of all cremations and dispositions of

cremated remains contracted for, by, or on behalf of the

corporation that owns the crematorium. The surety bond and cash

bond shall be in a sum determined by the cemetery commissioner, but

the sum total of both bonds shall not be less than $100,000.00. In

addition, the surety bond and cash bond are subject to the rules

and regulations promulgated by the cemetery commissioner under the

cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, and

are subject to the regulation of crematoriums under the cemetery

regulation act, 1968 PA 251, MCL 456.521 to 456.543. The surety

bond and cash bond shall be for the benefit of the state of

Michigan to ensure the performance of the cremation and the

disposition of cremated remains contracted for, by, or on behalf of

the corporation that owns the crematorium. If land or buildings are

leased pursuant to this subsection, the duration of the lease shall

be for [not less than] 5 years.

     Enacting section 1. Section 4 of 1915 PA 58, MCL 456.204, is

repealed.