Bill Text: MI SB1066 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Occupations: mortuary science; references to article 18 of the occupational code in the prepaid funeral and cemetery sales act; revise. Amends secs. 4, 6, 11, 12, 15 & 21 of 1986 PA 255 (MCL 328.214 et seq.). TIE BAR WITH: SB 1060'26
Sponsorship: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced) 2026-06-23 - Referred To Committee On Regulatory Affairs [SB1066 Detail]
Download: Michigan-2025-SB1066-Introduced.html
SENATE BILL NO. 1066
A bill to amend 1986 PA 255, entitled
"Prepaid funeral and cemetery sales act,"
by amending sections 4, 6, 11, 12, 15, and 21 (MCL 328.214, 328.216, 328.221, 328.222, 328.225, and 328.231), sections 4, 6, 11, 15, and 21 as amended by 2004 PA 21 and section 12 as amended by 2010 PA 327.
the people of the state of michigan enact:
Sec. 4. (1) As used in this act:
(a) "Depository" means a state or nationally chartered bank or state or federally chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government under the laws of this state or the United States. Depository includes the trust department, if any, of an entity referred to in this subsection.
(b) "Detroit consumer price index" Consumer Price Index" means the index for all urban wage earners for the Detroit statistical Detroit-Warren-Dearborn area from the Bureau of Labor Statistics of the United States department of labor, bureau of labor statistics.Department of Labor.
(c) "Escrow agent" means a person who that holds, invests, and disburses principal and income from the funds received under a prepaid contract.
(d) "Funds" means all money or other consideration actually received from a contract buyer by a contract seller or provider or an assignee from the contract buyer in connection with any aspect of the sale of a prepaid contract, including finance charges, but does not include late payment penalties, payments required to be made to a governmental agency at the time the contract is entered into, or a commission authorized by under section 12(1).
(e) "Funeral services" means services customarily performed by a mortuary science licensee who is licensed pursuant to under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812. 339.1811. Funeral services include, but are not limited to, care of dead human remains, embalming, preparation of dead human remains for final disposition, professional services relating to a funeral or an alternative to a funeral or final disposition of dead human remains, transportation of dead human remains, limousine services, use of facilities or equipment for viewing dead human remains, visitation, memorial services, or services which that are used in connection with a funeral or alternative to a funeral, coordinating or conducting funeral rites or ceremonies, cremations, and other services provided in connection with a funeral, alternative to a funeral, or final disposition of dead human remains.
(f) "Grave memorial" means a stone or other structure or item used for the purpose of memorializing a decedent and placed on or in proximity to a place of burial, interment, or entombment of a casket, catafalque, or vault or on or in proximity to a place of inurnment.
(g) "Guaranteed price contract" means a prepaid contract under which funds received are held pursuant to in accordance with an escrow agreement. A guaranteed price contract has a guaranteed fixed price for which specified merchandise or funeral or cemetery services are required to be sold to or made available for a contract buyer or for a contract beneficiary, regardless of the cost or value of the merchandise or funeral or cemetery services at the time of death of the contract beneficiary. Under the guaranteed price contract, additional consideration is not charged for the originally contracted for merchandise or funeral or cemetery services at the time of delivery of the merchandise or funeral and cemetery services.
(h) "Income" means the money earned by the investment of the principal, including, but not limited to, interest, dividends, and gains or losses on the sale of, deposit of, or exchange of, property using invested principal amounts.
(i) "Interment" means the disposition of human remains by earth interment, entombment, or inurnment.
(j) "Mausoleum" means a building or other aboveground structure that is affixed to land and is a permanent repository for human remains.
(k) Subject to subsection (2), "merchandise" means both of the following:
(i) Cemetery burial vaults or other outside containers, grave memorials, and urns.
(ii) Items of merchandise sold or offered for sale or lease to consumers that will be used in connection with a funeral, or an alternative to a funeral, or the final disposition of human remains, including, but not limited to, caskets, combination units, and catafalques.
(2) Merchandise does not include land, interests in land, or interests in mausoleums or columbariums that are sold by a cemetery that complies with the endowment care trust fund requirements of the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543.
Sec. 6. (1) A person shall not sell, provide, or agree to provide merchandise or funeral or cemetery services pursuant to in accordance with a prepaid contract unless that person is registered with the department as provided in this section and has received a certificate of registration.
(2) A person desiring to receive a certificate of registration under this section shall apply upon on 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 after the date of its issuance. An application form for original registration or renewal shall must contain all of the following:
(a) The name and business address of the person registering.
(b) The names and addresses of persons owning each person that owns 10% or more interest in the entity applying for registration.
(c) The business address where books and records pertaining to prepaid contracts shall be are 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 must be constantly updated. The registrant shall inform the department of any change in this list within not more than 30 days of after 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 the registrant 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 that applies for renewal upon on 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 not less than 60 days before the expiration date printed on the certificate of registration. The certificate of registration of a person who that fails to file the sworn statement or special report required by this section shall expire expires on the date printed on the certificate of registration. A registrant may reinstate the registration within not more than 60 days of its from the expiration date 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 the department 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 that term is 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, 339.1811, or the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543.
(5) An applicant who that 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 that is denied registration by the department pursuant to under 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.
Sec. 11. (1) A guaranteed price contract shall must designate a provider who that has agreed to furnish the merchandise or funeral or cemetery services specified in the contract upon the death of the contract beneficiary. If the provider designated is not the prepaid contract seller of the contract, the provider shall be made a party to the prepaid contract before any consideration is paid and the prepaid contract is not binding on the contract buyer until the provider has been made a party to the prepaid contract.
(2) In addition to the registration otherwise required by the terms of this act, the provider which that has agreed to provide merchandise or funeral or cemetery services pursuant to under a guaranteed price contract shall, at the time the prepaid contract is entered into, possess any license or registration required in order to provide the funeral or cemetery services, pursuant to under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, 339.1811, or the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543. If a provider is required to possess a license or registration to provide the services included in a prepaid contract, a contract seller who that does not possess a license or registration to provide the services must disclose to the contract buyer or prospective contract buyer that it the contract seller cannot perform those activities required to be registered or licensed.
Sec. 12. (1) Except as otherwise provided in subsection (2), all funds received in connection with a prepaid contract shall must be held in escrow by an escrow agent for the benefit of the contract beneficiary.
(2) Funds received by a cemetery registered under the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, for cemetery merchandise may, in lieu of subsection (1), be escrowed as follows:
(a) Before January 1, 2006, 60% of the funds received during that period from the sale of cemetery merchandise pursuant to under prepaid contracts.
(b) After December 31, 2005 and before January 1, 2007, 65% of the funds received during that period from the sale of cemetery merchandise pursuant to under prepaid contracts.
(c) After December 31, 2006 and before January 1, 2008, 70% of the funds received during that period from the sale of cemetery merchandise pursuant to under prepaid contracts.
(d) After December 31, 2007 and before January 1, 2009, 75% of the funds received during that period from the sale of cemetery merchandise pursuant to under prepaid contracts.
(e) After December 31, 2008, 80% of the funds received from the sale of cemetery merchandise pursuant to under prepaid contracts.
(3) A prepaid contract may authorize the contract seller or provider to charge an additional commission of not more than 10% of the contract price. which shall Any additional commission is not be subject to the depository requirements of this section. If the contract price is paid in installments, the commission retained by the contract seller or the provider shall must not exceed the rate of the commission charged in the prepaid contract for each installment. On cancellation, a contract buyer is entitled to a refund as provided in section 13(1) or (2).
(4) Only the following persons may serve as the escrow agent of funds under this section:
(a) If the prepaid contract is a nonguaranteed price contract, the contract seller or provider of that nonguaranteed price contract.
(b) If the prepaid contract is either a guaranteed or nonguaranteed price contract, a depository, a trust company, or a Michigan nonprofit corporation or association, in which the majority interest is held by 250 or more funeral establishments licensed under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, 339.1811, or a Michigan nonprofit corporation or association, in which the majority interest is held by 30 or more cemeteries registered and operated pursuant to under the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543. If the prepaid contract is a guaranteed price contract, the contract seller or the provider shall not serve as the escrow agent.
(5) If the escrow agent is not the contract seller or provider of a nonguaranteed price contract, the escrow agent shall must be selected as follows:
(a) If the prepaid contract is a nonguaranteed price contract, the escrow agent may be selected by either the contract seller or the provider.
(b) If the prepaid contract is a guaranteed price contract, the escrow agent shall must be selected by the provider who that has been designated to furnish the funeral services. If the prepaid contract does not include funeral services, the escrow agent shall must be selected by any provider.
(6) If the escrow agent is a person other than the person to whom which the funds have been paid by the contract buyer, the funds shall must be deposited with the escrow agent within not more than 30 days after the receipt by the person to whom which the funds are paid.
(7) Funds held by an escrow agent shall must be held and invested only as specified in the prepaid contract. A prepaid contract may authorize investments only as follows:
(a) If the prepaid contract is a nonguaranteed price contract, the funds shall must be invested in 1 or more interest-bearing accounts in a depository.
(b) If the prepaid contract is a guaranteed price contract, the principal and income may be invested only in accordance with section 7803 of the estates and protected individuals code, 1998 PA 386, MCL 700.7803, except that funds shall must not be invested in a company owned by, operated by, or affiliated in any way with a contract seller or provider or an authorized agent of a contract seller or provider or in loans to any person directly connected with or employed by a contract seller or provider or an authorized agent of a contract seller or provider.
(8) Income shall must be held and invested by the escrow agent in the same manner as the principal except that the income may be utilized to pay reasonable fees and expenses of the escrow agent in addition to other costs specifically authorized by this act. The expenses and fees paid to the escrow agent shall must not exceed 1% of the aggregate balance of principal and prior earned income from each account annually. If a fee is charged for reasonable expenses for the administration costs under an escrow agreement, the amount may be paid to the escrow agent periodically or may be accumulated in the account and paid at the time of death or upon cancellation of the contract. A cemetery that has elected the escrowing option for cemetery merchandise provided in subsection (2) may provide by written agreement with the escrow agent to be paid accumulated income generated solely by the investment of funds received for the cemetery merchandise. Such payments Payments to a cemetery may must not be made more frequently than once in a 12-month period and shall must not exceed the net amount of income earned in the previous 12 months less any amounts paid to the escrow agent for expenses and fees described in this subsection and an amount equal to any increase in the Detroit consumer price index.Consumer Price Index.
(9) Amounts of principal and income held by an escrow agent other than the contract seller or provider of a nonguaranteed price contract may be commingled with principal and income derived from other prepaid accounts. However, a separate accounting of principal and income shall must be maintained for each prepaid contract under the name of the contract beneficiary.
(10) The escrow agent shall send to the contract buyer a notice stating the date, amount of the deposit, and the name of the escrow agent with whom the funds are deposited.
(11) Upon the death of the contract beneficiary and upon performance by the provider of its the provider's obligation to furnish merchandise or funeral or cemetery services pursuant to under the prepaid contract, funds held by the escrow agent shall must be disbursed as follows:
(a) If the prepaid contract is a nonguaranteed price contract, the principal and income shall must first be disbursed by the escrow agent to the provider of the merchandise or funeral or cemetery services in payment of all reasonable charges. Thereafter, After the first disbursements, not less than 90% of the remaining balance of principal and income, if any, shall must be disbursed to the person, other than the provider or the contract seller, designated in the prepaid contract or authorized by law to receive the surplus, and the remainder, if any, shall must be disbursed to the provider as final compensation for its the provider's services. The amount paid to the person entitled to receive the surplus shall must be as follows:
(i) If no commission has been charged pursuant to under this section, at least not less than 90% of the remaining balance of principal and income in the escrow account.
(ii) If a commission of 5% or less of the contract price has been charged, at least not less than 95% of the remaining principal and income in the escrow account.
(iii) If a commission of greater than 5% of the contract price has been charged, 100% of the remaining principal and income in the escrow account.
(b) If the prepaid contract is a guaranteed price contract, the principal and income held by the escrow agent shall must be disbursed to the provider, its the provider's designee, or its the provider's successor.
(c) If the escrow agent is notified that there is a dispute as to whether the provider has performed all its the provider's obligations under the prepaid contract, the escrow agent shall file an action for interpleader or shall obtain an impartial arbitrator to determine the rights of the parties. Expenses of arbitration shall must be shared equally by the parties unless otherwise ordered by the arbitrator.
(12) A Michigan nonprofit corporation or association, in which the majority interest is held by 250 or more funeral establishments or by 30 or more cemeteries registered and operated under the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, may be designated as the escrow agent under this section only if the contract buyer has expressly authorized that designation in writing. If the contract buyer authorizes the appointment as escrow agent of a Michigan nonprofit corporation or association in the prepaid contract, the authorization shall must be set forth in a separate paragraph which shall is not be effective unless separately signed or initialed by a contract buyer and which shall must state that the contract buyer may elect to require that a depository or a trust company be designated as the escrow agent.
(13) If a prepaid contract is canceled, the escrow agent shall disburse the principal and income in accordance with section 13.
(14) At least annually, unless waived in writing by a contract buyer, a contract buyer shall must be furnished a statement indicating the current balance, the fees or expenses charged since the last statement, the amount of the refund to which a buyer is entitled if the contract is canceled, and the name and address of the escrow agent from whom which additional information may be obtained about the account. The cost of the statement required by this subsection may be paid from the income and may be in addition to any other fee or charge authorized by this act.
Sec. 15. (1) All prices or quotations of prices contained in a prepaid contract, offer, or solicitation shall must be stated in compliance with applicable federal and state laws and regulations. In addition, a person who that offers either merchandise or funeral or cemetery services on a preneed or at-need basis shall comply with the price disclosure rules of the federal trade commission, code of federal regulations, 16 C.F.R., Federal Trade Commission under 16 CFR part 453, whether or not the rules by their own terms apply to the offering. This subsection does not apply to the sale of any interest covered by the endowment care trust requirements of the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543.
(2) A person who that sells or offers to sell both funeral goods or services and nonfuneral goods or services as part of the same transaction or series of transactions shall not manipulate the relative prices of the goods or services so as to allocate a disproportionate share of the total price to nonfuneral property or services.
(3) All prepaid contracts shall must provide that a contract buyer may revoke the prepaid contract within not more than 10 business days after entering into the prepaid contract and that upon revocation, all funds paid to the contract seller or provider shall be are refunded. This provision shall must be conspicuously set forth in the prepaid contract at a place immediately before the place where the contract buyer is to sign his or her the contract buyer's name.
(4) A prepaid contract shall must disclose the contract buyer's right to cancel the prepaid contract and the amount of the refund to which the contract buyer or that person's estate is entitled upon cancellation. The disclosure shall must be stated substantially as follows:
"This contract may be canceled either before death or after death by the buyer or, if the buyer is deceased, by the person or persons legally authorized to make funeral or cemetery arrangements. If the contract is canceled, the buyer or the buyer's estate is entitled to receive a refund of ____% of the contract price and any income as required by law."
In addition, if a commission is charged pursuant to under section 12, the amount of the commission and the fact that it the commission is a charge which is in addition to the contract price shall must be stated in the prepaid funeral contract. If a printed contract form is used, the disclosures required by this subsection shall must be stated in boldfaced type.
(5) This act does not authorize a contract seller or provider to perform or offer to perform services for which a mortuary science license or funeral establishment licensed is required by article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, 339.1811, unless that person holds the required license or licenses and does not require a contract seller or a provider to possess this license or any other license to engage in an activity covered under this act for which a license is not required by any other act.
(6) A prepaid contract shall must provide that the contract buyer may designate a new contract beneficiary any time before the death of the contract beneficiary originally specified in the prepaid contract by providing written notice to the contract seller of a nonguaranteed price contract or the provider designated to furnish merchandise or funeral or cemetery services pursuant to under a guaranteed price contract. Notwithstanding any other provisions of law, a contract buyer may designate the estate of a deceased person as the contract beneficiary, or provide that the contract beneficiary is the first of 2 or more designated persons to die.
(7) A prepaid contract that is a nonguaranteed price contract shall have it indicated clearly indicate on the prepaid contract that it the prepaid contract is a nonguaranteed price contract and that the actual costs of the merchandise or funeral or cemetery services delivered at the time of death may be greater or less than the amount of principal and income in the escrow account, and that the buyer, the buyer's estate, or the person or persons that are legally entitled to make funeral or cemetery arrangements, or both, are not obligated to purchase specific merchandise and services which were selected before the death of the contract beneficiary or to expend a specific amount on merchandise or funeral or cemetery services.
Sec. 21. A violation of this act by a person who that is licensed under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to 339.1812, 339.1811, or the cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, is considered a violation of the respective licensing act, and the violator is subject to penalties available under those acts.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1060 of the 103rd Legislature is enacted into law.
