The Florida Senate

¹497.556  Requirements relating to monument establishments.--

(1)  INITIAL LICENSURE.--No monument establishment shall be issued a license to engage in preneed sales under this chapter unless the monument establishment shall, in addition to the other requirements of this part for issuance of a preneed license, meet the following requirements:

(a)  The monument establishment or its principals shall demonstrate at least 3 years of experience in the operation of a monument establishment.

(b)  The monument establishment shall demonstrate that it has a net worth of at least $10,000 pursuant to generally accepted accounting principles. If the monument establishment applying for preneed licensure cannot demonstrate a net worth of at least $10,000, the licensing authority may in accordance with subsection (3) accept alternative factors or arrangements as substituting for the $10,000 net worth requirement, and issue the license on that basis. A monument establishment which is issued a preneed sales license based upon subsection (3) shall be subject to subsection (2) regarding subsequent renewals of its preneed sales license.

(2)  RENEWAL LICENSURE.--Each monument establishment seeking to renew its preneed sales license shall demonstrate, in addition to the other requirements of part IV of this chapter relating to renewal of preneed licenses, a net worth of $10,000 as of the year end for its fiscal year most recently concluded prior to the renewal date. Such net worth shall be demonstrated in financial statements prepared in accordance with generally accepted accounting principles and filed with the licensing authority. If the monument establishment seeking renewal of its preneed licensure cannot demonstrate the required net worth, the licensing authority may in accordance with subsection (3) accept alternative factors or arrangements as substituting for the $10,000 net worth requirement and renew the license for that renewal cycle on that basis.

(3)  ALTERNATIVES TO $10,000 NET WORTH REQUIREMENT.--

(a)  A monument establishment that cannot demonstrate the required $10,000 net worth may voluntarily submit to the licensing authority and request acceptance of alternative evidence of financial stability and resources or agree to additional oversight in lieu of the required net worth. Such additional evidence or oversight may include, as appropriate, one or more of the following:

1.  An agreement to submit monthly financial statements of the entity.

2.  An agreement to submit quarterly financial statements of the entity.

3.  An appraisal of the entity's property or broker's opinion of the entity's assets.

4.  A credit report of the entity or its principals.

5.  A subordination-of-debt agreement from the entity's principals.

6.  An indemnification or subrogation agreement binding the entity and its principals.

7.  A guarantee agreement for the entity from its principals.

8.  A written explanation of past financial activity.

9.  Submission of a 12-month projected business plan that includes:

a.  A statement of cash flows.

b.  Pro forma income statements, with sources of revenues identified.

c.  Marketing initiatives.

10.  Submission of previous department examination reports.

11.  An agreement of 100 percent voluntary trust by the entity.

(b)  The licensing authority may accept such alternative evidence or arrangements in lieu of the required net worth only if the licensing authority determines such alternative evidence or arrangements are an adequate substitute for $10,000 of net worth and that acceptance would not substantially increase the risk to existing or future customers of nonperformance by the monument establishment on its retail sales agreements.

(4)  BRANCH OPERATIONS.--A licensed monument establishment under common control with another monument establishment, funeral establishment, or licensed cemetery, which other monument establishment, funeral establishment, or licensed cemetery holds a preneed sales license in good standing, may engage in preneed sales under and as a branch of that other entity's preneed sales license, if there is compliance with the usual requirements of this part for branch operation, and the entity holding the preneed sales license executes and files with the licensing authority a written agreement in a form acceptable to the licensing authority, guaranteeing performance of the preneed sales of the branch.

History.--s. 124, ch. 2004-301.

¹Note.--Effective October 1, 2005.