May 1, 2008, Introduced by Reps. Farrah, Sak, Virgil Smith, Shaffer, Wojno, Hammon, Accavitti, Amos, Pavlov, Knollenberg, Condino, Green, Meadows, Dean and Cushingberry and referred to the Committee on Regulatory Reform.
A bill to amend 1855 PA 87, entitled
"An act relative to burying grounds; and to impose certain duties
upon the department of commerce,"
by amending section 35a (MCL 456.35a), as amended by 2003 PA 91.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 35a. (1) The endowment care fund required to be set aside
under section 35 for the purpose of keeping and maintaining the
grounds of cemeteries established after March 10, 1967, or
mausoleums not located in the confines of a dedicated cemetery and
are established after March 10, 1967, shall be created by the
deposit of $25,000.00 into the fund before any sale of burial
rights, entombment rights, or columbarium rights.
(2) With respect to all cemeteries or mausoleums, whether
established before or after March 10, 1967, the fund shall be added
to by payment, perpetually, each month of not less than 15% of all
proceeds received during the previous month from the sales of
burial rights, entombment rights, or columbarium rights made after
March 10, 1967. No total deposit for a single adult burial right
sale or assignment shall be less than $20.00. Notwithstanding the
minimum amount required to be paid into the endowment care fund,
any cemetery which has an endowment care fund of more than
$125,000.00 and exceeding $10,000.00 per acre of the developed
portion of the cemetery may apply to the cemetery commission for a
waiver of the 15% or $20.00 minimum requirement. The cemetery
commission shall take testimony and investigate as it considers
advisable pursuant to the application. If the cemetery commission
determines that the applicant has an endowment care fund of more
than $125,000.00 and exceeding $10,000.00 per acre of the developed
portion of the cemetery and that the income from the fund is
sufficient to meet the then current cost of keeping the applicant's
cemetery in good condition, it shall grant a waiver of the 15% and
$20.00 minimum requirement and allow such modifications with
respect to contributions to the fund as it considers advisable.
(3) The endowment care fund may be administered by the board
of directors, or by the fund's trustees, individual or corporate,
as the fund may select under the terms of a trust instrument or
declaration. If the fund selects trustees to administer the
endowment care fund, the fund's liability shall be limited to
reasonable care in the selection. Directors may serve as trustees
if at least 2 members of the board are selected.
(4) The funds established under this section shall be invested
subject to the provisions of section 7302 of the estates and
protected individuals code, 1998 PA 386, MCL 700.7302, and are
subject to the prescriptions of the cemetery regulation act, 1968
PA 251, MCL 456.521 to 456.543.
(5) No portion of the funds required to be set aside under
section 35 shall be used directly or indirectly for salaries of the
officers or directors of the cemetery association or corporation,
only the earnings from the funds shall be used for endowment care.
(6) 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 fund trusts without regard to uncertainty or
indefiniteness of its beneficiaries.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6033(request no.
03313'07 **) of the 94th Legislature is enacted into law.