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
    315-453A-99




  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.

19

20            *****************************************

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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