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Act 255 of 1986
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PREPAID FUNERAL AND CEMETERY SALES ACT

Act 255 of 1986

AN ACT to regulate the sale and providing of funeral and cemetery merchandise and services and other related interests; to regulate the use of funds received by sellers and providers of certain merchandise, funeral and cemetery services, land or interests in land, and related other interests; to prescribe certain powers and duties of certain departments and certain other state and local officers; to provide for the promulgation of rules and establishment of fees; and to provide for penalties and remedies.


History: 1986, Act 255, Eff. July 1, 1987 ;-- Am. 2004, Act 21, Eff. Jan. 1, 2005
Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.


© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 328.211SectionShort title.
Section 328.212SectionMeanings of words and phrases.
Section 328.213SectionDefinitions; B to D.
Section 328.214SectionDefinitions; D to M.
Section 328.215SectionDefinitions; N to U.
Section 328.216SectionCertificate of registration to sell, provide, or agree to provide merchandise or services pursuant to prepaid contract; application; fee; duration of certificate; contents of application form; renewal of registration; sworn statement or special report; expiration of certificate; reinstatement of registration; grounds for denial of registration; compliance; petition for reconsideration; hearing.
Section 328.217SectionDeposit of funds with escrow agent; agreement to allow inspection and copying of records.
Section 328.218SectionAccounts, books, and records; special report; examination; corrective or penal action; examination, review, or audit of books and records; authorization of escrow agents to open records; statement in lieu of special report.
Section 328.219SectionNotice of purchase or assignment of business operations or prepaid contracts.
Section 328.220SectionNonguaranteed or guaranteed price contracts; execution.
Section 328.221SectionGuaranteed price contract; requirements.
Section 328.222SectionFunds to be held in escrow by escrow agent; additional commission not subject to depository requirements; commission if contract price paid in installments; refund; qualifications and selection of escrow agent; authorized investments; fees and expenses; commingling; separate accounting of principal and income; notice to contract buyer; disbursement of funds; nonprofit corporation or association as escrow agent; furnishing statement to contract buyer.
Section 328.223SectionCancellation of prepaid contract by contract buyer; notice; disbursement of principal and income; cancellation of contract by contract seller or provider; failure to use escrow account to make funeral arrangements; assignment or transfer of obligations.
Section 328.224SectionLiability for principal and income; investment of funds; changing escrow agent or depository.
Section 328.225SectionPrices or quotations of prices; requirements; exception; manipulation of prices prohibited; provision for revocation of contract; refund; disclosure of right to cancel contract and amount of refund; disclosure of commissions; services requiring mortuary science license or funeral establishment license; construction of act; designation of new contract beneficiary; notice; clear indication of nonguaranteed price contract, actual costs, and obligations.
Section 328.226SectionPrepaid funeral contract not in writing as voidable; agreement as to rate of interest; interest added or deducted in advance; computation of interest; financing of contract.
Section 328.227SectionRules generally.
Section 328.228SectionProhibited conduct; rules; administrative action.
Section 328.229SectionIrrevocable prepaid contract approved by family independence agency or department of community health; rules.
Section 328.230SectionComplaint; investigation; examination of books, records, contracts, and other documents; duties of department on determination of reasonable cause to believe in occurrence of violation; violation; hearing; duties of department on determination of violation.
Section 328.231SectionViolations; penalties.
Section 328.232SectionConversion of funds as felony; violation as misdemeanor; penalties.
Section 328.233SectionNoncompliance with investment and depositing requirements; petition for appointment of receiver; notice; hearing; liquidation.
Section 328.234SectionAction to force compliance; damages; orders.
Section 328.235SectionEffective date.