CEMETERY MAINTENANCE

Senate Bill 303 as passed by the Senate

Sponsor:  Sen. Marty Knollenberg

House Committee:  Local Government

Senate Committee:  Regulatory Reform

Complete to 12-2-15

SUMMARY:

This bill would amend Public Act 215 of 1937, which allows municipalities to own and maintain cemeteries, by expanding how the funds apportioned to that maintenance may be held and invested.

Specifically, the bill would allow a municipality to invest the funds set aside for the perpetual care and maintenance of a municipally-owned cemetery in mutual funds consisting of fixed income securities, equity securities, or both, as long as the following requirements are met:

·         No more than 60% of the fund may be invested in equity funds, and

·         Each mutual fund must be rated in the top two of five or more tiers by Morningstar, Inc., or another nationally recognized mutual fund rating agency. 

Allowing the municipality to invest this fund in mutual funds does not prohibit any other investments that are authorized by law.

This bill would take effect 90 days after it is enacted.

MCL 128.1

FISCAL IMPACT:

The bill is permissive; its impact would depend on the decisions made by local units of government.

                                                                                        Legislative Analyst:   Jennifer McInerney 

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.