2003 Senate Bill 512 / 2004 Public Act 21

Introduced in the Senate

May 21, 2003

Introduced by Sen. Laura Toy (R-6)

To expand the scope of a law which regulates the sale of pre-need funeral and burial contracts sold by funeral homes to cover the same product when sold by cemeteries. The funeral home law requires payments on the contracts to be placed in a trust fund, and 90 percent of the amount to be returned to the customer if he or she changes their mind. Certain pre-need contracts with cemeteries are covered by different regulations which are less stringent.

Referred to the Committee on Local, Urban, and State Affairs

June 3, 2003

Reported without amendment

With the recommendation that the bill pass.

June 18, 2003

Substitute offered

To replace the previous version of the bill with one recommended by the committee which reported it. The substitute incorporates technical changes resulting from committee testimony and deliberation. These changes do not affect the substance of the bill as previously described.

The substitute passed by voice vote

June 19, 2003

Amendment offered by Sen. Ron Jelinek (R-21)

To prohibit the cancellation or refund of a prepaid funeral contract after the death of the contract beneficiary unless there are no remains of the beneficiary, or if the remains cannot be recovered. Contracts could be upgraded on behalf of the contract beneficiary's estate or by a person entitled to make funeral or cemetery arrangements, and the contract could be transferred to another provider.

The amendment passed by voice vote

Passed in the Senate 36 to 0 (details)

Received in the House

June 19, 2003

Referred to the Committee on Commerce

Feb. 10, 2004

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Feb. 12, 2004

Substitute offered

To replace the previous version of the bill with one recommended by the committee which reported it but superceded by the Accavitti substitute. See Accavitti substitute for details.

The substitute failed by voice vote

Substitute offered by Rep. Frank Accavitti (D-42)

To replace the previous version of the bill with one that has higher trust fund requirements on prepaid contracts for funeral merchandise, funeral services, and cemetery services than on contracts for cemetery merchandise. The substitute also establishes different refund requirements and revises other details of the proposed regulations.

The substitute passed by voice vote

Amendment offered by Rep. David Palsrok (R-101)

To clarify a technical changes in definitions abd requirements contained in the bill, and correct drafting errors.

The amendment passed by voice vote

Passed in the House 99 to 2 (details)

To expand the scope of a law which regulates the sale of pre-need funeral and burial contracts sold by funeral homes to cover the same product when sold by cemeteries. The funeral home law currently requires payments on the contracts to be placed in a trust fund, and 90 percent of the amount to be returned to the customer if he or she changes their mind. Certain pre-need contracts with cemeteries are covered by different regulations which are less stringent. The bill would impose more stringent regulations on cemetery pre-need contracts. It requires that 80 percent of the amount paid for a cemetery merchandise contract be held in escrow, and escrow amounts of 100 percent for funeral merchandise, funeral services, and cemetery services. The bill would require 100 percent refunds plus a cost-of-living increase for certain items covered in the contracts, but not others.

Received in the Senate

Feb. 17, 2004

Feb. 18, 2004

Passed in the Senate 37 to 0 (details)

To concur with the House-passed version of the bill, which made substantive changes to the Senate-passed bill. See House-passed bill for details.

Signed by Gov. Jennifer Granholm

March 9, 2004