Senate Bill 0196
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Florida Senate - 1999 SB 196
By the Committee on Regulated Industries
315-453A-99
1 A bill to be entitled
2 An act relating to funeral and cemetery
3 services; amending ss. 497.201 and 497.213,
4 F.S.; providing requirements as to contents of
5 cemetery license applications and license
6 renewals; requiring owners of specified types
7 of businesses to provide notice of intent to
8 acquire another similar business; requiring
9 owners of specified types of businesses to give
10 notice to prospective purchasers of the
11 ownership of the business; providing for
12 voidability of contracts; requiring disclosures
13 in advertisements and contracts; providing an
14 effective date.
15
16 Be It Enacted by the Legislature of the State of Florida:
17
18 Section 1. Subsection (2) of section 497.201, Florida
19 Statutes, is amended to read:
20 497.201 Cemetery companies; license; application;
21 fee.--
22 (2) The department may require any person desiring to
23 establish a cemetery company who applies for a license to
24 provide any information reasonably necessary to make a
25 determination of the applicant's eligibility for licensure.
26 Any person desiring to establish a cemetery company shall
27 first:
28 (a) File an application that which, states the exact
29 location of the proposed cemetery, which site shall contain
30 not less than 15 contiguous acres, and that identifies the
31 business or corporation that will own the cemetery; provide a
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Florida Senate - 1999 SB 196
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1 financial statement signed by all officers of the company that
2 attests which attest to a net worth of at least $50,000, which
3 net worth must be continuously maintained as a condition of
4 licensure; and pay an application fee of $5,000;
5 (b) Create a legal entity; and
6 (c) Demonstrate to the satisfaction of the board that
7 the applicant possesses the ability, experience, financial
8 stability, and integrity to operate a cemetery.
9 Section 2. Section 497.213, Florida Statutes, is
10 amended to read:
11 497.213 Annual license fees.--
12 (1) The department shall collect from each cemetery
13 company operating under the provisions of this chapter an
14 annual license fee as follows:
15 (a) For a cemetery with less than $25,000 annual gross
16 sales....................................................$250.
17 (b) For a cemetery with at least $25,000 but less than
18 $100,000 annual gross sales..............................$350.
19 (c) For a cemetery with annual gross sales of at least
20 $100,000 but less than $250,000..........................$600.
21 (d) For a cemetery with annual gross sales of at least
22 $250,000 but less than $500,000..........................$900.
23 (e) For a cemetery with annual gross sales of at least
24 $500,000 but less than $750,000........................$1,350.
25 (f) For a cemetery with annual gross sales of at least
26 $750,000 but less than $1,000,000......................$1,750.
27 (g) For a cemetery with annual gross sales of
28 $1,000,000 or more.....................................$2,650.
29 (2) An application for license renewal shall be
30 submitted, along with the applicable license fee, on or before
31 December 31 each year in the case of an existing cemetery
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Florida Senate - 1999 SB 196
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1 company and before any sale of cemetery property in the case
2 of a new cemetery company or a change of ownership or control
3 pursuant to ss. 497.205 and 497.209. The application must
4 identify the business or corporation that owns or will own the
5 cemetery. If the renewal application and fee are not received
6 by December 31, the department shall collect a penalty in the
7 amount of $200 per month or fraction of a month for each month
8 delinquent. For the purposes of this subsection, a renewal
9 application and fee submitted by mail shall be considered
10 timely submitted and received if postmarked by December 31 of
11 the applicable year.
12 Section 3. Each person who currently owns a direct
13 disposal establishment, funeral establishment, or cinerator in
14 this state and who intends to purchase a direct disposal
15 establishment, funeral establishment, or cinerator within this
16 state must notify the department of this intended purchase at
17 least 60 days before the purchase is finalized.
18 Section 4. Each direct disposal establishment, funeral
19 establishment, or cinerator shall disclose to each prospective
20 purchaser of merchandise or services, prior to the purchase of
21 the merchandise or services, the name of the person, business,
22 or corporation that owns the establishment or cinerator. If
23 such disclosure is not made, the purchase is voidable. The
24 establishment or cinerator has the burden of proof to show
25 that the disclosure was timely made.
26 Section 5. Each direct disposal establishment, funeral
27 establishment, or cinerator shall include in each
28 advertisement, and in each contract for purchase of
29 merchandise or services, a disclosure of the identity of the
30 owner of the establishment or cinerator. As used in this
31 section, the term "identity of the owner" includes, but is not
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Florida Senate - 1999 SB 196
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1 limited to, the identity of a publicly traded corporation
2 owning more than 10 percent of a certificateholder or branch
3 registrant.
4 Section 6. Each seller of burial rights, merchandise,
5 or services shall disclose to each prospective purchaser,
6 prior to the purchase of the burial rights, merchandise, or
7 services, the name of the person, business, or corporation
8 that owns the cemetery. If such disclosure is not made, the
9 purchase is voidable. The seller has the burden of proof to
10 show that the disclosure was timely made.
11 Section 7. Each cemetery shall include in each
12 advertisement, and in each contract for purchase of
13 merchandise or services, a disclosure of the identity of the
14 owner of the cemetery. As used in this section, the term
15 "identity of the owner" includes, but is not limited to, the
16 identity of a publicly traded corporation owning more than 10
17 percent of a certificateholder or branch registrant.
18 Section 8. This act shall take effect October 1, 1999.
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21 SENATE SUMMARY
22 Requires an applicant for a license or for the renewal of
a license to operate a cemetery to identify the business
23 or corporation that will own the cemetery. Requires the
owner of a direct disposal establishment, funeral
24 establishment, or cinerator who intends to purchase such
an entity to notify the Department of Banking and
25 Finance. Requires a direct disposal establishment,
funeral establishment, or cinerator to disclose to a
26 prospective purchaser of merchandise or services prior to
the purchase of the merchandise or services the name of
27 the owner of the establishment or cinerator. The name of
the owner must also be included in an advertisement or
28 contract for purchase of merchandise or services.
Requires a seller of burial rights, merchandise, or
29 services prior to the sale to disclose the cemetery
owner's identity. Requires a cemetery to include the
30 owner's identity in any advertisement or in any contract
for purchase of services or merchandise.
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