May 1, 2008, Introduced by Reps. Hammon, Sak, Farrah, Virgil Smith, Shaffer, Meadows, Wojno, Accavitti, Amos, Pavlov, Knollenberg, Condino, Green, Dean and Cushingberry and referred to the Committee on Regulatory Reform.
A bill to amend 1869 PA 12, entitled
"An act to authorize and encourage the formation of corporations to
establish rural cemeteries; to provide for the care and maintenance
thereof; to provide for the revision and codification of the laws
relating to cemeteries, mausoleums, crypts, vaults, crematoriums,
and other means of disposing of the dead; to make an appropriation
therefor; and to impose certain duties upon the department of
commerce,"
by amending section 7a (MCL 456.107a), as amended by 2003 PA 90.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7a. (1) The fund required to be set aside under section 7
for perpetual care regarding cemeteries established after March 10,
1967, or mausoleums which are 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 is
made.
(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 fund from the
proceeds of sales of lots or burial rights, any cemetery that has
an endowment 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 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 it shall
grant appropriate modifications with respect to contributions to
the fund.
(3) No portion of the funds required to be set aside under
section 7 shall be used directly or indirectly for salaries of the
officers or directors of the cemetery association or corporation
and only the earnings from the funds shall be used for perpetual
care.
(4) The endowment care fund may be administered by the board
of directors itself, or by the trustees, individual or corporate,
as it may select under the terms of a trust instrument or
declaration. If it selects trustees to administer the fund, its
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.
(5) The funds established under this section shall be invested
subject to 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.
(6) In addition to all other remedies at law or in equity that
any interested party may have, 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.
(7) As used in this section, "perpetual care" means all
general work necessary to keep the cemetery property in a
presentable condition at all times, including, but not limited to,
the cutting of grass at reasonable intervals; raking, cleaning,
filling, seeding, and sodding of graves; replacement, pruning, or
removal of shrubs and trees in order to assure access to interment
rights; and the repair and maintenance of enclosures, buildings,
drives, walks, and the various memorial gardens.
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.