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SENATE FLOOR VERSION
April 11, 2022
ENGROSSED HOUSE
BILL NO. 3007 By: Sims of the House
and
Rogers of the Senate
An Act relating to insurance; amending 36 O.S. 2021,
Section 7122, which relates to the Cemetery
Merchandise Trust Act; modifying definitions;
modifying minimum funding requirement; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 7122, is
amended to read as follows:
Section 7122. As used in the Cemetery Merchandise Trust Act:
1. "Cemetery merchandise " means markers, memorials, vases,
memorial vases, monuments , equipment, crypts, and niches or outer
enclosures. Cemetery merchandise shall not include the sale of
lands or interests therein as grave lots or grave spaces; burial or
interment rights; and delivered or installed crypts , and niches or
outer enclosures;
2. "Purchase price" means the gross net amount to be paid for
cemetery merchandise under the provisions of a prepaid cemetery
merchandise contract. Purchase price shall not include finance
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charges, sales tax, charges for real property interests or, charges
for credit life insurance , or perpetual care fees;
3. "Prepaid cemetery merchandise contract" means any agreement
for the sale of cemetery merchandise by an organization which
requires payment of the purchase price, in whole or in part, prior
to delivery of the cemetery merchandise, which agreement is entered
into from and after November 1, 1989;
4. "Minimum funding requirement" means that portion of the
purchase price equal to one hundred ten percent (110%) one hundred
percent (100%) of the wholesale cost, plus delivery charges, of the
cemetery merchandise covered in a prepaid cemetery merchandise
contract;
5. "Organization" means any individual, firm, partnership,
trust, corporation, association or entity. Organization shall not
include state, county, municipal, township, rural communit y,
religious, fraternal or nonprofit entities, free community burial
grounds, county cemetery associations, Indian tribal cemeteries on
tribal land and charitable or eleemosynary institutions operating
cemeteries in this state;
6. "Outer enclosure" means a grave liner, grave box, or grave
vault;
7. "Lawn crypt" means a subsurface permanent outer enclosure
installed before need in multiple units for the purpose of interring
human remains;
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8. 7. "Financial institution " means a federally insured bank,
trust company, or savings and loan association which is authorized
to do business in this state;
9. 8. "Commissioner" or "Insurance Commissioner" means the
Insurance Commissioner of the State of Oklahoma ; and
10. 9. "Wholesale cost" means an amount determined on the basis
of such standard quotations and price lists as are published by the
vendor of the cemetery merchandise, without regard to any discounts
that may be available to the organization.
SECTION 2. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT A ND INSURANCE
April 11, 2022 - DO PASS