HOUSE BILL No. 6697

 

November 30, 2006, Introduced by Reps. Drolet, Tobocman, Sheen, Hoogendyk, Gosselin, Lipsey, Emmons, Garfield and Lemmons, III and referred to the Committee on Government Operations.

 

     A bill to amend 1986 PA 255, entitled

 

"Prepaid funeral and cemetery sales act,"

 

by amending section 6 (MCL 328.216), as amended by 2004 PA 21.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. (1)  A  Except as otherwise provided in this

 

subsection, a person shall not sell, provide, or agree to provide

 

merchandise or funeral or cemetery services pursuant to a prepaid

 

contract unless that person is registered with the department as

 

provided in this section and has received a certificate of

 

registration. A cemetery owned and operated by a church or

 

religious institution is exempt from this act.

 

     (2) A person desiring to receive a certificate of registration

 

under this section shall apply upon forms provided by the

 

department and pay an application fee of $120.00. The original

 


registration may be renewed. A certification of registration is

 

valid for 3 years from the date of its issuance. An application

 

form for original registration or renewal shall contain the

 

following:

 

     (a) The name and business address of the person registering.

 

     (b) The names and addresses of persons owning 10% or more

 

interest in the entity applying for registration.

 

     (c) The business address where books and records pertaining to

 

prepaid contracts shall be maintained for inspection by the

 

department.

 

     (d) A list of the names and addresses of any escrow agents in

 

which funds have been or will be deposited by the registrant as

 

well as copies of all escrow or trust agreements between a

 

registrant and an escrow agent. The list and copies required by

 

this subdivision shall be constantly updated. The registrant shall

 

inform the department of any change in this list within 30 days of

 

the change by adding to the list the name and address of any new

 

escrow agent or by deleting from the list an escrow agent whose

 

services are no longer being used by the registrant.

 

     (e) A statement made under oath that the registrant has an

 

agreement with each escrow agent with which it has deposited funds

 

which complies with the requirements of section 7, or if the

 

registrant is or intends to be an escrow agent for funds received

 

in connection with a nonguaranteed price contract, a statement that

 

the registrant will comply with the requirements of section 7.

 

     (3) The department shall renew the registration of a person

 

who applies for renewal upon a form provided by the department and

 


pays an application fee of $30.00 provided that the person has

 

submitted the sworn statement as required by this section and the

 

special report or sworn statement as required by section 8 at least

 

60 days before the expiration date printed on the certificate of

 

registration. The certificate of registration of a person who fails

 

to file the sworn statement or special report required by this

 

section shall expire on the date printed on the certificate of

 

registration. A registrant may reinstate the registration within 60

 

days of its expiration by submitting the sworn statement or special

 

report and paying a fee of $120.00.

 

     (4) The department may deny the registration of a person if it

 

determines any of the following:

 

     (a) That the person was previously registered with the

 

department and that registration was revoked or suspended within 2

 

years before the date of the current application for registration.

 

     (b) That the person was or is presently an owner with a

 

substantial interest in the entity, partner, or employee of a

 

person whose registration was revoked or suspended within 2 years

 

before the date of the current application for registration and the

 

person engaged or participated in or authorized the misconduct that

 

was the basis for the revocation or suspension.

 

     (c) That the person lacks good moral character as defined and

 

determined under 1974 PA 381, MCL 338.41 to 338.47.

 

     (d) That the person has violated this act, article 18 of the

 

occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, or the

 

cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543.

 

     (5) An applicant who registers with the department shall not

 


receive a certificate of registration unless the applicant complies

 

with the conditions in this section.

 

     (6) A person who is denied registration by the department

 

pursuant to this section may petition the department for

 

reconsideration. A person seeking reconsideration is entitled to a

 

hearing conducted in compliance with the administrative procedures

 

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.