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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 546 By: Montgomery
AS INTRODUCED
An Act relating to the Cemetery Merchandi se Trust
Act; amending 36 O.S. 2021, Sect ions 7125, 7127,
7128, 7131, and 7133, which relate to permit
application, surety bond, annual reporting, and
violations; requiring certain application s and fees
to be submitted and paid electr onically; adding
certain report to documents required for issu ance of
permit; requiring renewal fee prior to reinstatement
of certain permit; modifying renewal procedure s for
expired permits; requiring certain report from
expired permit holders; conforming language;
requiring certain updates to permit holder
information by certain date; requiring certain permit
holder to respond to certain inquiries by certain
date; requiring surety to provide notice to Insurance
Commissioner by certain date; requiring annual report
to be filed electronically; removing minimum amount
for certain civil penalty assessed for certain
violation; conforming language; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 7125, is
amended to read as follows:
Section 7125. A. Each organization desiring to acc ept money or
anything of value for prepaid cemetery merchandise shall file an
application for a permit with the Insuranc e Commissioner, and shall
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at the time of filing the appl ication pay one initial filing fee of
Two Hundred Dollars ($200.00). All applications shall be filed and
the fee shall be paid electronically in a form and manner prescr ibed
by the Commissioner. The Commissioner shal l issue a permit upon the
receipt of the application, the annual report in accordance wit h
Section 7128 of this title, and payment of the filing fee fees, and
upon making a finding that the applicant has complied with the the
Cemetery Merchandise Trust Act and the rules as may be established
pursuant to the Cemetery Merchandise Trust Act by th e Commissioner.
All applications shall be signed by the organization requesting the
permit, and shall contain a statement that the ap plicant will comply
with all the requirements as established pursuant t o the Cemetery
Merchandise Trust Act. All permits shall expire on March 15 of t he
year following the year the permit is first issued, unless renewed.
Permits shall be renewed for a pe riod not to exceed the succeeding
March 15 upon the payment of a renewa l fee of Two Hundred Dollars
($200.00). Late application for renewal of a permi t shall require a
fee of double the renewal fee. No application for renewal of a
permit shall be accepte d after April 15 of each year. L ate
applicants shall be required to re apply as if they were a new
applicant, and pay an a pplication fee equal to an am ount that is
double the renewal fee in addition to any fines that may have been
imposed with respect to a n expired permit The renewal shall be
filed, and the fee shall be paid electronically in a form and manner
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prescribed by the Commissioner. A permit that expires for failure
to submit a renewal application may be reinstated within ninety (90)
days after the expiration date by electronically submitting a fee in
an amount that is double the renewal fee in a form and manner
prescribed by the Commissioner an d any other transaction or fees
deemed necessary by the Commissioner. The Insurance Commissioner
shall require a permit holder whose permit has been expired for more
than ninety (90) days to reapply as if a new applicant and p ay an
application fee equal t o an amount that is double the renewal fee,
in addition to any fines imposed. All applications received more
than ninety (90) days following the expiration of a permit shall
include a detailed report of services provided in th is state during
the period of the permit expiration.
B. The Commissioner may cancel a permit or refuse to issue a
permit or refuse to issue a renewal of a permit for failure to
comply with any provisions of the Cemetery Merchandise Trust Act or
any rules promulgated thereto by the Commissioner, after reasonable
notice to the permittee and opportunity for hearing before the
Commissioner in accordance with Article II of the Administrative
Procedures Act.
C. No organization shall be entitled to a new permit after
cancellation, or refusa l by the Commissioner to renew a permit, but
shall thereafter be issued a new permit upon satisfactory proof of
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compliance with the Cemete ry Merchandise Trust Act and rules
promulgated by the Commissioner.
D. Any person or org anization aggrieved by the ac tions of the
Commissioner may appeal therefrom t o the Oklahoma Insurance
Department as provided by the Administrative Procedures Act.
E. Each permit holder shall electronically submit, in a form
and manner prescribed by the Commissioner, any change of legal
business name, doing business as or ass umed name, address, or
contact email address, and any necessary fees within thirty (30)
days after the change occurred. Any submission of a change under
this subsection that is received more than thirty (30) days after
the change occurred shall be accompanied by a fee of Fi fty Dollars
($50.00).
F. Upon receipt of any inqui ry from the Insurance Com missioner,
a permit holder shall furnish the Commissioner with an adequate
response to the inquiry within twenty (20) days from the date of
receipt of the inquiry.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 7127, is
amended to read as follows:
Section 7127. A. As an alternative to the trust requirements
of Section 7126 of this title, an organ ization may purchase a surety
bond in an amount not less than the minimum funding requirement.
B. The surety bond shall be made payable t o the State of
Oklahoma for the benefit of the Insurance Commissioner and all
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purchasers of prepaid cemetery merchandi se. The bond shall be
approved by the Commissioner.
C. The Commissioner may establish by rule the requirements an d
guidelines for the su rety bonds required pursuant to this sec tion.
D. A surety bond maintained under the provis ions of this
section or Section 7124 of this title may be cancelled or terminated
by the surety only by providing notice to the Commissioner, no later
than ninety (90) thirty (30) days before the effective date of the
cancellation or termination. Notwiths tanding the cancellation,
termination, or expiration of a bond maintained under this section
or Section 7124 of this title, the surety shall remain liable for
obligations arising during the term of the bon d and prior to the
termination, cancellation or exp iration.
SECTION 3. AMENDATORY 3 6 O.S. 2021, Section 7128, is
amended to read as follows:
Section 7128. Each organization shall electronically file an
annual report with the Insu rance Commissioner on or before March 15
of each year in a the manner and form as the Commissioner may
require, showing the name of the financial institut ion holding the
cemetery merchandise trust fund and the amount of the trust fund
under each contract o n the preceding December 31, and also showing
the method of determination of t he wholesale costs made pursuant to
Section 7126 of this title. The total r equired deposits to the
cemetery merchandise trust fund during the year shall also be
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reported. Each cemetery is responsible for maintaining satisfactor y
books and records, which will adequately justify all information
contained in the annual report requi red by this section. Any
organization which has discontinued the sale of prepaid cemetery
merchandise, but which still has funds deposited in a cemetery
merchandise trust fund or surety, shall not be required to obtain a
renewal of its permit, but it shal l continue to make annual reports
to the Commissioner until al l the funds have been disbursed pursuant
to the Cemetery Merchandise Trust Act. A filing f ee of Two Hundred
Dollars ($200.00), and any transaction fees prescribed by the
Commissioner, shall accompany each report. If any officer of any
organization fails or refuses to file an annual report, or fails or
refuses to cause it to be filed within thi rty (30) days after the
organization has been notified by the Commissioner that the report
is due and has not been received, the officer shall be guilty of a
misdemeanor and shall be punished as prescribed in Section 7134 of
this title.
SECTION 4. AMENDATORY 36 O.S. 2021, Section 7131, is
amended to read as follows:
Section 7131. A. The Insurance Commissioner, may, after notice
and an opportunity for hearing, initiate an action t o recover
payments required to be redeposited to th e cemetery merchandise
trust pursuant to the Cemetery Merchandise Trust Act or to recover
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other monies received or disbursed in violation of the Cemetery
Merchandise Trust Act.
B. The Commissioner may, af ter an opportunity for hearing,
censure a permittee or may suspend or revoke a permit for violation
of any provision of the Cemetery Merchandise Trust Act or any rules
promulgated by the Commissioner. In addition to, or in lieu of, any
censure, suspension or revocation, a permittee may be subject to a
civil penalty of not less than One Hundred Dollars ($100.00) nor
more than One Thousand Dollars ($1,000.00) per occurrence or
violation.
SECTION 5. AMENDATORY 36 O.S. 2021, Section 7 133, is
amended to read as follows:
Section 7133. Whenever any officer of an y organization refuses
to submit the books, records, papers and instruments of an
organization to the examination and inspection of the as sistants or
examiners of the Insurance Commissioner, or refuses or neglects to
establish or maintain a cemetery mercha ndise trust fund in
accordance with the requirements of the Cemetery Merchandise Trust
Act within ninety (90) days after a written demand to establish or
maintain a cemetery merch andise trust fund is made by the
Commissioner, or in any manner obstructs or interferes with the
examination of its cemetery merchandise trust fund, or refuses to be
examined on oath concerning any of the affairs of its cemetery
merchandise trust fund, the Commissioner may make application for
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receivership in the manner of a domest ic insurer pursuant to
Sections 1901 through 1920 of Title 36 of the Oklahoma Statutes , in
addition to the penalties and other enf orcement provisions of the
Cemetery Merchandise Trust Act.
SECTION 6. This act shall become effective Novembe r 1, 2023.
59-1-399 RD 1/17/2023 5:34:03 PM