SB-0039,As Passed Senate,May 1, 2003 SB 39 - Amendment No. 1

The Committee on Local, Urban and State Affairs offered the following substitute:

April 3, 2003

SUBSTITUTE FOR

SENATE BILL NO. 39

                                                                             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 sections 35 and 35a (MCL 456.35 and 456.35a).                   

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 35.  (1) The board of trustees of any corporation                      

2   organized under this act shall provide for and establish an                 

3   improvement or memorial endowment care fund, the income or                

4   proceeds from which shall be perpetually devoted  : for                    

5   endowment care.

6   First, To care for any assessments levied, to keeping clean                 

7   and in good order the lots of the several contributors thereto,             

8   and any monuments on said contributors' lots in good repair; and,           

9       Second, To improving and beautifying any portion of the                     

10  grounds of such corporation, reserved from sale and set apart for           

11  ornamental purposes.

1       (2) Contributions, subscriptions, or bequests to  such an                  

2   endowment care fund, whether made by owners of lots, or rights of           

3   burial, or by other persons, shall be invested in  such  safe and           

4   productive securities as the  said  board of trustees  shall                

5   determine determines, or deposited in the savings department of            

6   any state, national bank, or state or federally chartered savings           

7   and loan association and only the annual interest  thereon  shall           

8   be used for  the purposes above prescribed endowment care.                 

9       (3) Any corporation organized under this act may also be                    

10  named and constituted and may act as trustee of any gift, grant,            

11  bequest, or conveyance of personal property, to  said the

12  corporation, in trust for the perpetual care, maintenance and               

13  preservation of, and the planting and cultivation of trees,                 

14  shrubs, flowers and plants upon any cemetery lot or lots, or part           

15  of the cemetery owned or held and maintained by  said the

16  corporation, and the care, preservation, repair, upkeep, and                

17  replacement of any monument, tomb, mausoleum, fence, or other               

18  structure,  thereon,  or for any  or all of the  above  purposes           

19  upon such terms and conditions as may be described in this                

20  section that are provided in the instrument or writing creating             

21  such the trust.  , and no such A trust shall not be considered

22  invalid because contravening any statute or rule of law                     

23  forbidding accumulations of income.  , but shall be valid                   

24  notwithstanding such statute or rule.

25      (4) On or before June 30 of each year an account of all                     

26  proceeds received during the preceding calendar year from sales             

27  of interment rights, entombment rights, or columbarium rights               

Senate Bill No. 39 as amended April 30, 2003                                

1   made after  the effective date of this 1966 amendatory act March           

2   10, 1967, shall be filed with the  state  cemetery commission,

3   of the department of commerce,  along with an account, certified           

4   to by the trustee or trustees, of all amounts deposited the                 

5   calendar year previous, into the  irrevocable  endowment care

6   fund.                                                                       

7   (5) <<As used in this section, "endowment care" means all general

8   work necessary to keep the cemetery property in a presentable condition

9   at all times, including, but not limited to, the cutting of grass at

10  reasonable intervals; raking, cleaning, filling, seeding, and sodding of

11  graves; replacement, pruning, or removal of shrubs and trees in order to

12  assure access to internment rights; and the repair and maintenance of

13  enclosures, buildings, drives, walks, and the various memorial gardens.

14                                                                              

15                           >>

16      Sec. 35a.  (1) The endowment care fund required to be set                   

17  aside under section 35 for the purpose of keeping and maintaining           

18  the grounds of cemeteries established after  the effective date             

19  of this 1966 amendatory act March 10, 1967, or mausoleums  which           

20  are  not located in the confines of a dedicated cemetery and are            

21  established after  the effective date of this 1966 amendatory               

22  act March 10, 1967, shall be created by the deposit of                     

23  $25,000.00 into the fund before any sale of burial rights,                  

24  entombment rights, or columbarium rights.  is made.

25      (2) With respect to all cemeteries or mausoleums, whether                   

26  established before or after  the effective date of this 1966 act

27  March 10, 1967, the fund shall be added to by payment,                      

1   perpetually,  into the same  each month of not less than 15% of             

2   all proceeds received during the previous month from the sales of           

3   burial rights, entombment rights, or columbarium rights made                

4   after  the effective date of this 1966 amendatory act March 10,            

5   1967.  No total deposit for a single adult burial right sale or             

6   assignment shall be less than $20.00.  Notwithstanding the                  

7   minimum amount required to be paid into  such the endowment care

8   fund,  from the proceeds of sales of lots or burial rights, as              

9   provided herein,  any cemetery which has an endowment care fund             

10  of more than $125,000.00 and exceeding $10,000.00 per acre of the           

11  developed portion of  such the cemetery  ,  may  make                      

12  application apply to the cemetery commission for a waiver of the           

13  15% or $20.00 minimum requirement.  The cemetery commission shall           

14  take  such  testimony and  make such investigation investigate

15  as it  deems considers advisable pursuant to  such the

16  application.  If the cemetery commission determines that the                

17  applicant has an endowment care fund of more than $125,000.00 and           

18  exceeding $10,000.00 per acre of the developed portion of  such

19  the cemetery and that the income from  such the fund is                    

20  sufficient to meet the then current cost of keeping the                     

21  applicant's cemetery in good condition, it shall grant a waiver             

22  of the 15% and $20.00 minimum requirement  ,  and  it shall                 

23  grant allow such modifications with respect to contributions to            

24  such the fund as it  deems considers advisable.                          

25      (3) The endowment care fund may be administered by the board                

26  of directors,  itself,  or by  such the fund's trustees,                   

27  individual or corporate, as  it the fund may select under the              

1   terms of a trust instrument or declaration.  If  it the fund

2   selects trustees to administer the endowment care fund,  its the           

3   fund's liability shall be limited to reasonable care in the                 

4   selection.  Directors may serve as trustees if at least 2 members           

5   of the board are selected.                                                  

6       (4) The funds established under this section shall be                       

7   invested subject to the provisions of  sections 1 and 2 of Act              

8   No.  177 of the Public Acts of 1937, as amended, being sections             

9   555.201 and 555.202 of the Compiled Laws of 1948, and the                   

10  investment of any fund for endowment care heretofore or hereafter           

11  made which meets the requirements of said act is ratified and               

12  confirmed section 7302 of the estates and protected individuals            

13  code, 1998 PA 386, MCL 700.7302.                                            

14      (5) No portion of the funds required to be set aside under                  

15  section 35 shall be used directly or indirectly for salaries of             

16  the officers or directors of the cemetery association or                    

17  corporation, only the earnings from  such the funds shall be               

18  used  to keep the grounds and graves in good condition for                 

19  endowment care.                                                             

20      (6) In addition to all other remedies at law or in equity,

21  which any interested party may have,  the attorney general and             

22  the circuit court of the county in which the cemetery is located            

23  shall have all the powers and jurisdiction granted to the                   

24  attorney general and court as to trusts covered by  Act No.  280            

25  of the Public Acts of 1915, as amended, being sections 554.351 to           

26  554.353 of the Compiled Laws of 1948 1915 PA 280, MCL 554.351 to           

27  554.353.  The remedies granted  shall  include all  such

1   endowment care fund trusts without regard to uncertainty or                 

2   indefiniteness of  the its beneficiaries.  thereof.

3       Enacting section 1.  This amendatory act does not take                      

4   effect unless all of the following bills of the 92nd Legislature            

5   are enacted into law:                                                       

6       (a) Senate Bill No. 37.                                                     

7       (b) Senate Bill No. 38.