HB 1845 -- Endowed Care Cemeteries

Sponsor:  Wells

This bill changes the laws regarding endowed care cemeteries.  In
its main provisions, the bill:

(1)  Allows the Division of Professional Registration within the
Department of Insurance, Financial Institutions and Professional
Registration to bring suit in Cole County against cemetery
operators;

(2)  Requires all contracts sold by cemetery operators for
cemetery services or for graves, cemetery markers, and crypts to
meet certain requirements.  If these requirements are not met,
all payments will be recoverable by the purchaser plus 10%
interest and any reasonable collection costs including attorney
fees;

(3)  Requires any person, entity, or political subdivision that
purchases, receives, or holds real estate used for the burial of
human remains, excluding a family burial ground, to notify the
Office of Endowed Care Cemeteries within the department of the
name, location, and address of the real estate before October 1,
2010, or within 30 days of acquiring the land;

(4)  Exempts cemetery operators from the provisions of
Chapter 436, RSMo, regarding prearranged funeral contracts but
prohibits them from adjusting or establishing prices for items
with the intent of evading the trust or escrow provisions of the
chapter.  Provisions related to deposits into endowed care trust
funds based on the sales price of certain products are revised;

(5)  Removes the provisions requiring a financial institution
serving as the trustee of an endowed care trust to be located in
Missouri but requires all activities of the trust to be
controlled by Missouri law and all funds held in trust to remain
in Missouri;

(6)  Requires a cemetery operator to notify the division in
writing at least 20 days prior to selling a majority of its
assets;

(7)  Allows, for agreements entered into after August 28, 2010, a
cemetery prearranged merchandise products contract to be canceled
within 30 days of receipt of the executed contract and requires
all payments to be fully refunded;

(8)  Allows the division to direct a trustee, financial
institution, or escrow agent to suspend the distribution of money
from an endowed care trust fund if the cemetery operator is not
licensed, has failed to file an annual report, or has failed to
file a corrective action plan after an audit has revealed a
deficiency; and

(9)  Exempts, if a cemetery was owned by a city, any subsequent
cemetery owner from liability for any deficiency existing prior
to the city's ownership.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm