Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB544 Compare Versions

Version 1 (Old)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 544 By: Montgomery of the Senate
7	37
8	38		and
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10		-	Tedford and Sneed of the
11		-	House
	40	+	Sneed of the House
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16	45		An Act relating to the Perpetual Care Fu nd Act;
17	46		amending 36 O.S. 2021, Sections 7106 and 7112, which
18	47		relate to annual reports and act ions to recover
19	48		monies; requiring owner of certain fund to maintain
20	49		certain permit; establishing application and renewal
21	50		process for certain permit; modifying application fee
22	51		for certain permit; requiring electronic submission
23	52		and payment; requiring renewal fee prior to
24	53		reinstatement of certain permit; establishing renewal
25	54		procedures for expired permit ; requiring certain
26	55		report from expired permit holder; conforming
27	56		language; requiring certain report an d fee payment by
28	57		certain date; setting maximum for certain fine; and
29	58		providing an effective date.
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34		-	SUBJECT: Perpetual care fund
35		-
36	63		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
37		-
38	64		SECTION 1. AMENDATORY 36 O.S. 20 21, Section 7106, is
39	65		amended to read as follows:
40		-
41	66		Section 7106. A. The No owner of a cemetery maintaining shall
42	67		maintain a Perpetual Care Trust Fund, or certificate of deposit in
43	68		lieu of a Perpetual Care Trust Fund, shall be required to pay to th e
44	69		Insurance Commissioner an ann ual fee of Two Hundred Dollars
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	71	+	SB544 HFLR Page 2
	72	+	BOLD FACE denotes Committee Amendments. 1
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45	97		($200.00), and file a report of each cemetery by March 15 of each
46	98		year with the Commissioner, showing, for the preceding calendar
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48		-	ENR. S. B. NO. 544 Page 2
49	99		year: unless the owner has received a permit from the Insurance
50	100		Commissioner. Initial and renewal permit applications shall be
51	101		filed electronically in the manner and form prescribed by the
52	102		Commissioner, along with a two-hundred-dollar application fee and
53	103		any transaction or ot her applicable fees. The permit shall expire
54	104		on March 15 of each calendar year unless it is renewed by the permit
55	105		holder. A permit expired for failure to submit a renewal
56	106		application and fee may be reinstated within nin ety (90) days after
57	107		the expiration date by electronically filing a renewal application,
58	108		paying a fee in an amount that is double the renewal fee , and paying
59	109		any transaction or other applicable fees in the form and manner
60	110		prescribed by the Comm issioner. The Commissioner shall require a
61	111		permit holder whose permit has been expired for more than ninety
62	112		(90) days to reapply as if a new applicant and pay an ap plication
63	113		fee equal to an amount that is double the renewal fee, in addition
64	114		to any other fines imposed. A ny application received after the
65	115		permit has been expired for more than ninety (90) days shall include
66	116		a detailed report of Perpetual Care Trust Fund services provided in
67	117		this state during the p eriod that the permit was expired.
68		-
69	118		B. The owner of a cemetery maintaini ng a Perpetual Care T rust
70	119		Fund or certificate of deposit in lieu of a Perpetual Care Trust
71	120		Fund shall, by March 15 of each calendar year, electronically file a
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72	148		report and pay any appli cable fees in the manner and form prescribed
73	149		by the Commissioner. Such report shall show, for the preceding
74	150		calendar year:
75		-
76	151		1. The gross amount received from sales of grave spaces, lots,
77	152		mausoleum crypts and ni ches;
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79	153		2. The total purchase price of grave s paces, lots, mausoleum
80	154		crypts and niches on contracts which received final payment and
81	155		required deposits to the Perpetual Care Fund during the calendar
82	156		year;
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84	157		3. The operating expenses incurred during the calend ar year
85	158		which are eligible to be paid from in come of the Perpetual Care
86	159		Fund;
87		-
88	160		4. The total amount of the principal of the Perpetual Care Fund
89	161		as of the beginning of the preceding calendar year; and
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92		-	ENR. S. B. NO. 544 Page 3
93	162		5. The amount segregated and deposited in the Perpetual Care
94	163		Fund as provided by the Perpetual Care F und Act which, if the
95	164		Perpetual Care Fund is held in trust, shall be certified by the
96	165		trustee of the Perpetual Care Fund as to correctness thereof, and
97	166		the trustee shall provide:
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99	167		a. the total amount of the princ ipal of the Perpetual
100	168		Care Fund as of the end of the calendar year,
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102	169		b. the securities and other assets in which such
103	170		perpetual care funds are invested,
	171	+	c. the cash on hand,
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105		-	c. the cash on hand,
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107	199		d. a verification in writing of all asse ts in which
108	200		monies of the Perpetual Care Fu nd have been invested;
109	201		provided, the verifica tion shall be obtained from the
110	202		holder or holders of the assets,
111		-
112	203		e. the income derived from the Perpetual Care Fund
113	204		investments during the calendar year, and
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115	205		f. the gross expenditures or transfers from income of the
116	206		Perpetual Care Fund during the calendar year.
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118	207		The annual fee collected pursuant to this subsection shall be
119	208		deposited in the State Insurance Commissioner Revolving Fund created
120	209		pursuant to Section 307.3 of th is title.
121		-
122	210		B. C. If the Perpetual Care Fund is maintained in a certificate
123	211		of deposit in lieu of a trust fund, the cemetery shall provide in
124	212		its annual report a verification from the financial institution as
125	213		to the amount of principal of the Perpetual Care Fund as of the end
126	214		of the calendar year, a nd the amount of funds contributed to the
127	215		certificate of deposit by the cemetery as of each maturity date of
128	216		the certificate of deposit during the last calendar year.
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130	217		C. D. The Commissioner shall have authority, at any time, to
131	218		inspect the books and recor ds of any cemetery, and to make an
132	219		examination thereof for the purpose of determining if proper sums
133	220		have been deposited with the trustee in the Perpetual Care Fund, or
134	221		in a certificate of deposit maintained in li eu of a trust fund, and
	222	+	if the Fund is being properly administered by the trustee in
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136		-	ENR. S. B. NO. 544 Page 4
137		-	if the Fund is being properly administered by the trustee in
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138	250		accordance with the provisions of the Perpetual Care Fund Act and
139	251		rules of the Commissioner. The examination shall be conducted
140	252		pursuant to Sections 309.1 through 309.7 o f this title and the cost
141	253		of the examination shall be paid by the cemetery owner. The c ost of
142	254		the examination shall be billed directly to the cemetery owner by
143	255		the examiner. Each cemetery owner and trustee is responsible for
144	256		maintaining satisfactory book s and records which adequately justify
145	257		all information contained in the annual report re quired by this
146	258		section.
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148	259		D. E. Whenever a cemetery owner and/or trustee refuses to
149	260		submit the books, records, papers, and instruments of the cemetery
150	261		to the examination and inspection of the assistants or examin ers of
151	262		the Insurance Commissioner, or refuses or neglects to establish or
152	263		maintain a Perpetual Care Trust Fund in accordance with the
153	264		requirements of the Perpetual Care Fund Act within ninety (90) days
154	265		after a written demand to establi sh or maintain a Perp etual Care
155	266		Fund is made by the Commissioner, or in any manner obstructs or
156	267		interferes with the examination of its cemetery or refuses to be
157	268		examined on oath concerning any of the affairs of its cemetery, the
158	269		Commissioner may make appli cation for receiversh ip in the manner of
159	270		a domestic insurer pursua nt to Sections 1901 through 1920 of this
160	271		title.
161		-
162	272		SECTION 2. AMENDATORY 36 O.S. 2021, Section 7112, is
163	273		amended to read as follows:
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165	301		Section 7112. A. The Insurance Commissioner may initiate an
166	302		action to recover payments required to be deposited to the State
167	303		Insurance Commissioner Revolving Fund pursuant to the Perpetual Care
168	304		Fund Act or to recover other monies received or disbursed in
169	305		violation of the Perpetual Care Fu nd Act.
170		-
171	306		B. The Insurance Commissioner may, after an opportunity f or
172	307		hearing and a determination that an owner of a cemetery is in
173	308		violation of the Perpetual Care Fun d Act, censure an owner of a
174	309		cemetery, levy a fine as deemed appropriate by the Commissi oner not
175	310		to exceed One Thousand Dollars ($1,000.00) for each occurrence, or
176	311		both censure and levy a fine against an owner of a cemetery any
177	312		combination of the above for violation of any provision of the
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179		-	ENR. S. B. NO. 544 Page 5
180	313		Perpetual Care Fund Act or any r ules promulgated in accordance with
181	314		the act.
182		-
183	315		SECTION 3. This act shall become effective November 1, 2023.
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185		-
186		-	ENR. S. B. NO. 544 Page 6
187		-	Passed the Senate the 21st day of March, 2023.
188		-
189		-
190		-
191		-	Presiding Officer of the Senate
192		-
193		-
194		-	Passed the House of Representatives the 26th day of April, 2023.
195		-
196		-
197		-
198		-	Presiding Officer of the House
199		-	of Representatives
200		-
201		-	OFFICE OF THE GOVERNOR
202		-	Received by the Office of the Governor this _______ _____________
203		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
204		-	By: _______________________________ __
205		-	Approved by the Governor of the State of Oklahoma this _____ ____
206		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
207		-
208		-	_________________________________
209		-	Governor of the State of Oklahoma
210		-
211		-
212		-	OFFICE OF THE SECRETARY OF STATE
213		-	Received by the Office of the Secretary of State this __________
214		-	day of __________________, 20 _______, at _______ o'clock _______ M.
215		-	By: _______________________________ __
	317	+	COMMITTEE REPORT BY: COMMITTEE ON COUNTY AND MUNICIPAL GOVERNMENT,
	318	+	dated 04/12/2023 - DO PASS.