Michigan Funeral Directors Association

SENATE BILLS 512 & 513 NOW PUBLIC ACTS 21 & 22

The long sought coalition consumer protection pre-need package finally became a reality when Governor Granholm signed Senate Bills 512 and 513 into law as Public Acts 21 and 22 of 2004. The new laws will govern prepaid contracts entered into on or after January 1, 2005. As members aware, the major features of this legislation are: · 100% trusting of all prepaid funeral merchandise (including caskets) and services and cemetery services (including cremations and opening and closings). Refunds will be afforded of at least 90% of all funds escrowed. · 80% trusting under the Prepaid Act for cemetery merchandise (vaults, markers and urns) to be ratcheted up from 60% over four years. Refunds for cemetery merchandise trusted at these levels will be 100% of the retail price plus an inflation index. Cemeteries will be allowed to retain income generated from trusting cemetery merchandise in excess of inflation. · Language clarifying that a seller arranging for or inducing the buyer to arrange for the warehousing of merchandise does not eliminate the Act's escrow requirements. · Requires that CPA reports on prepaid contracts be done annually and increases record-keeping requirements. · Incorporation of price disclosures under state law for cemetery merchandise and services sold by cemeteries. See the Spring MFDA Journal for a more detailed summary of the new laws. Once again, MFDA wishes to thank each and every member who worked so hard in calling, writing, e-mailing and meeting with their legislators to make this package a reality.