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SB 1066

Occupations: mortuary science; references to article 18 of the occupational code in the prepaid funeral and cemetery sales act; revise. Amends secs. 4, 6, 11, 12, 15 & 21 of 1986 PA 255 (MCL 328.214 et seq.). TIE BAR WITH: SB 1060'26

2025-2026 Regular Session Introduced by Kevin Hertel and 2 co-sponsors

SB 1066 tightens oversight of prepaid funeral and cemetery contracts by boosting licensing, escrow, disclosure, and consumer protections for buyers and providers.

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS
#cemeteriesandfunerals:other #occupations:mortuaryscience
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Bill Summary · SB 1066

Purpose and intent

  • SB 1066 proposes amendments to the Michigan Prepaid Funeral and Cemetery Sales Act (1986 PA 255) to revise provisions related to mortuary science references in prepaid contracts, and to align sections 4, 6, 11, 12, 15, and 21 with earlier amendments (as amended by 2004 PA 21 and 2010 PA 327). The bill is tied to SB 1060(’26) and is intended to regulate the sale and administration of prepaid funeral and cemetery contracts, including how funds are held, who can act as escrow agents, and disclosure requirements for consumers.

Key provisions and changes

  • Definitions (Sec. 4):

    • Clarifies terms including depository, Detroit consumer price index, escrow agent, funds, funeral services, guaranteed price contract, income, interment, mausoleum, and merchandise.
    • Expands or clarifies which items constitute “funeral services” and “merchandise,” and sets boundaries on what is not considered merchandise (e.g., land interests in cemeteries with endowment care trust fund requirements).

  • Registration of providers (Sec. 6):

    • Requires any person selling or providing prepaid contract merchandise or services to be registered with the department and obtain a certificate of registration.
    • Sets application fee ($120) and a 3-year renewal period ($30 renewal fee).
    • Specifies required information for applications (ownership, records maintenance, escrow agent details, sworn statements), and ongoing reporting obligations.
    • Establishes grounds for denial (credit or license history, bad moral character, violations of the act or related statutes) and provision for reconsideration hearings.

  • Guaranteed price contract obligations (Sec. 11):

    • Requires a provider designated to furnish merchandise/services under a guaranteed price contract to be a party to the contract and hold any necessary licenses/registrations.
    • If the provider is not licensed/registered for the services, the contract seller must disclose this to the contract buyer.

  • Escrow and funds (Sec. 12):

    • Reaffirms that all prepaid contract funds must be held in escrow by an escrow agent, with special rules for cemetery merchandise escrowed funds.
    • Details historical escrow percentages for cemetery merchandise (ranging from 60% to 80% over time, depending on dates).
    • Limits and governs fees (escrow agent fees capped at 1% annually; administration and disbursement rules).
    • Specifies who may serve as escrow agent (contract seller/provider for nonguaranteed contracts; depository, trust company, or Michigan nonprofit entities meeting certain ownership thresholds for guaranteed contracts), and prohibits the escrow agent from being the contract seller for guaranteed contracts.
    • Outlines selection process for escrow agents and timing for depositing funds.
    • Requires separate accounting for each contract and annual statements to contract buyers with balance, fees, and refunds information.

  • Price disclosure, revocation, and cancellations (Sec. 15):

    • Requires prices to comply with applicable laws and FTC price disclosure rules for preneed offerings.
    • Prohibits manipulation of prices when bundling funeral and non-funeral goods/services.
    • Grants contract buyers up to 10 business days to revoke a prepaid contract with a refund of all funds paid.
    • Requires explicit cancellation disclosures, including refund percentages and potential commission disclosures if applicable.
    • Clarifies that licensed mortuary science professionals must hold appropriate licenses to perform covered services.

  • Violations and enforcement (Sec. 21):

    • Violations by licensed funeral/mortuary or cemetery entities are treated as violations of their respective licensing acts, with applicable penalties.

Who/what would be affected

  • Funeral directors, mortuary science licensees, and funeral establishments operating prepaid contracts.
  • Cemeteries and cemetery associations, especially those engaged in prepaid merchandise funded through escrow.
  • Escrow agents (banks, trust companies, Michigan nonprofit corporations/associations) involved in handling prepaid funds.
  • Contract buyers (consumers) and contract beneficiaries who purchase prepaid funeral or cemetery services and merchandise.

Procedural and timeline aspects

  • Effective date contingent on enactment of SB 1060(’26) (enacting section 1).
  • Registration and renewal processes establish ongoing compliance cycles (3-year registration periods; annual statements to buyers).
  • Escrow fund rules include historical percentages for cemetery merchandise funding, with deadlines tied to specific date ranges (pre-2006, 2006–2008, etc.).
  • Disclosures and revocation rights provide a 10-business-day window for contract cancellation, with conspicuous disclosure requirements in contract forms.

Overall, SB 1066 tightens oversight of prepaid funeral and cemetery contracts, enhances consumer disclosures, strengthens escrow and licensing requirements, and aligns operative definitions and protections with broader regulatory and consumer protection standards.

Compiled from official sources — confirm details with the bill’s official record.

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