2006 Michigan Compiled Laws - Act 255 of 1986

PREPAID FUNERAL AND CEMETERY SALES ACT
Act 255 of 1986
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 § 338.3501 of the Michigan Compiled Laws.

The People of the State of Michigan enact:

Document	Description
Section 328.211	Short title.
Section 328.212	Meanings of words and phrases.
Section 328.213	Definitions; B to D.
Section 328.214	Definitions; D to M.
Section 328.215	Definitions; N to U.
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.
Section 328.217	Deposit of funds with escrow agent; agreement to allow inspection and copying of records.
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.
Section 328.219	Notice of purchase or assignment of business operations or prepaid contracts.
Section 328.220	Nonguaranteed or guaranteed price contracts; execution.
Section 328.221	Guaranteed price contract; requirements.
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.
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.
Section 328.224	Liability for principal and income; investment of funds; changing escrow agent or depository.
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.
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.
Section 328.227	Rules generally.
Section 328.228	Prohibited conduct; rules; administrative action.
Section 328.229	Irrevocable prepaid contract approved by family independence agency or department of community health; rules.
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.
Section 328.231	Violations; penalties.
Section 328.232	Conversion of funds as felony; violation as misdemeanor; penalties.
Section 328.233	Noncompliance with investment and depositing requirements; petition for appointment of receiver; notice; hearing; liquidation.
Section 328.234	Action to force compliance; damages; orders.
Section 328.235	Effective date.

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