Michigan Compiled Laws Act 255 Of 1986 Prepaid Funeral And Cemetery Sales Act (328.211 - 328.235)

AN ACT to regulate the sale and providing of funeral and cemetery merchandise and services and other related interests; to regulate the use of funds received by sellers and providers of certain merchandise, funeral and cemetery services, land or interests in land, and related other interests; to prescribe certain powers and duties of certain departments and certain other state and local officers; to provide for the promulgation of rules and establishment of fees; and to provide for penalties and remedies.

History: 1986, Act 255, Eff. July 1, 1987 ;-- Am. 2004, Act 21, Eff. Jan. 1, 2005

Compiler's Notes: For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

Section 328.211 Short Title.
This act shall be known and may be cited as the “prepaid funeral and cemetery sales act”. History: 1986, Act 255, Eff. July 1,...
Section 328.212 Meanings Of Words And Phrases.
For the purposes of this act, the words and phrases defined in sections 3 to 5 have the meanings ascribed to them in those...
Section 328.213 Definitions; B To D.
As used in this act: (a) “Burial right” means a right of earth interment. (b) “Casket” means any box or container consisting of 1...
Section 328.214 Definitions; D To M.
(1) As used in this act: (a) “Depository” means a state or nationally chartered bank or state or federally chartered savings and loan association,...
Section 328.215 Definitions; N To U.
As used in this act: (a) “Nonguaranteed price contract” means a prepaid contract under which funds received are held pursuant to an escrow agreement...
Section 328.216 Certificate Of Registration To Sell, Provide, Or Agree To Provide Merchandise Or Services Pursuant To Prepaid Contract; Application; Fee; Duration Of Certificate; Contents Of Application Form; Renewal Of Registration; Sworn Statement Or Special Report; Expiration Of Certificate; Reinstatement Of Registration; Grounds For Denial Of Registration; Compliance; Petition For Reconsideration; Hearing.
(1) A person shall not sell, provide, or agree to provide merchandise or funeral or cemetery services pursuant to a prepaid contract unless that...
Section 328.217 Deposit Of Funds With Escrow Agent; Agreement To Allow Inspection And Copying Of Records.
A registrant who deposits funds with an escrow agent under this act shall have in effect at all times an agreement under which the...
Section 328.218 Accounts, Books, And Records; Special Report; Examination; Corrective Or Penal Action; Examination, Review, Or Audit Of Books And Records; Authorization Of Escrow Agents To Open Records; Statement In Lieu Of Special Report.
(1) A registrant shall keep, in this state, accurate accounts, books, and records of all transactions and accounts regulated by this act. Records shall...
Section 328.219 Notice Of Purchase Or Assignment Of Business Operations Or Prepaid Contracts.
The purchaser or assignee of a registrant's business operations shall notify the department and the contract buyers of the purchase or assignment of the...
Section 328.220 Nonguaranteed Or Guaranteed Price Contracts; Execution.
All prepaid contracts provided for under this act shall be either a nonguaranteed price contract or a guaranteed price contract and shall be made...
Section 328.221 Guaranteed Price Contract; Requirements.
(1) A guaranteed price contract shall designate a provider who has agreed to furnish the merchandise or funeral or cemetery services specified in the...
Section 328.222 Funds To Be Held In Escrow By Escrow Agent; Additional Commission Not Subject To Depository Requirements; Commission If Contract Price Paid In Installments; Refund; Qualifications And Selection Of Escrow Agent; Authorized Investments; Fees And Expenses; Commingling; Separate Accounting Of Principal And Income; Notice To Contract Buyer; Disbursement Of Funds; Nonprofit Corporation Or Association As Escrow Agent; Furnishing Statement To Contract Buyer.
(1) Except as otherwise provided in subsection (2), all funds received in connection with a prepaid contract shall be held in escrow by an...
Section 328.223 Cancellation Of Prepaid Contract By Contract Buyer; Notice; Disbursement Of Principal And Income; Cancellation Of Contract By Contract Seller Or Provider; Failure To Use Escrow Account To Make Funeral Arrangements; Assignment Or Transfer Of Obligations.
(1) A contract buyer may cancel a prepaid contract at any time before the death of the contract beneficiary upon 30 days' prior written...
Section 328.224 Liability For Principal And Income; Investment Of Funds; Changing Escrow Agent Or Depository.
(1) Payments of principal and income by a depository or an escrow agent made in good faith pursuant to the terms of this act...
Section 328.225 Prices Or Quotations Of Prices; Requirements; Exception; Manipulation Of Prices Prohibited; Provision For Revocation Of Contract; Refund; Disclosure Of Right To Cancel Contract And Amount Of Refund; Disclosure Of Commissions; Services Requiring Mortuary Science License Or Funeral Establishment License; Construction Of Act; Designation Of New Contract Beneficiary; Notice; Clear Indication Of Nonguaranteed Price Contract, Actual Costs, And Obligations.
(1) All prices or quotations of prices contained in a prepaid contract, offer, or solicitation shall be stated in compliance with applicable federal and...
Section 328.226 Prepaid Funeral Contract Not In Writing As Voidable; Agreement As To Rate Of Interest; Interest Added Or Deducted In Advance; Computation Of Interest; Financing Of Contract.
(1) A prepaid contract that is not in writing is voidable by any party to the prepaid contract. (2) A prepaid contract made in...
Section 328.227 Rules Generally.
The department may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections...
Section 328.228 Prohibited Conduct; Rules; Administrative Action.
(1) Notwithstanding any other law to the contrary, a person selling or offering to sell merchandise or funeral or cemetery services, whether a registrant...
Section 328.229 Irrevocable Prepaid Contract Approved By Family Independence Agency Or Department Of Community Health; Rules.
(1) A prepaid contract may be made with an applicant for or recipient of assistance under the social welfare act, 1939 PA 280, MCL...
Section 328.230 Complaint; Investigation; Examination Of Books, Records, Contracts, And Other Documents; Duties Of Department On Determination Of Reasonable Cause To Believe In Occurrence Of Violation; Violation; Hearing; Duties Of Department On Determination Of Violation.
(1) Upon complaint made by any person, or upon its own initiative, the department may investigate alleged violations of this act or rules promulgated...
Section 328.231 Violations; Penalties.
A violation of this act by a person who is licensed under article 18 of the occupational code, 1980 PA 299, MCL 339.1801 to...
Section 328.232 Conversion Of Funds As Felony; Violation As Misdemeanor; Penalties.
(1) A person who converts funds paid pursuant to a prepaid contract to his or her own use or benefit other than as authorized...
Section 328.233 Noncompliance With Investment And Depositing Requirements; Petition For Appointment Of Receiver; Notice; Hearing; Liquidation.
If the department determines that a registrant has not complied with the investment and depositing requirements of this act and that insufficient funds are...
Section 328.234 Action To Force Compliance; Damages; Orders.
The department or any other person, in order to force compliance with this act, may bring an action in a circuit court in any...
Section 328.235 Effective Date.
This act shall take effect on July 1, 1987. History: 1986, Act 255, Eff. July 1, 1987 Compiler's Notes: For transfer of powers and...

Last modified: October 10, 2016