LRBs0580/2
MDK:kfsm:ks
1995 - 1996 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
To 1995 SENATE BILL 535
March 27, 1996 - Offered by Senators Rude, Shibilski, Schultz, Fitzgerald and
Grobschmidt.
SB535-SSA1,1,8
1An Act to renumber and amend 445.12 (3), 445.125 (1) (a) to (d), 445.125 (1)
2(e), 445.125 (2) and (3), 445.125 (4) and 632.41 (2);
to amend 49.19 (4) (bm),
349.47 (4) (b) 3., 49.47 (4) (i) 2. a., 214.04 (22), 440.92 (4) (a) (intro.), 440.92 (6)
4(c), 445.12 (7), 445.13 (1), 445.13 (2), 445.15 (1) and 701.12 (1); and
to create
5445.12 (3) (b), 445.12 (3g), 445.12 (3r), 445.125 (1) (title), 445.125 (3m), 445.13
6(1e), 445.15 (1m) and 632.41 (2) (b) of the statutes;
relating to: the sale of burial
7agreements funded with life insurance policies, granting rule-making
8authority and providing a penalty.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB535-SSA1,2,710
49.19
(4) (bm) The person applying for aid shall document, to the department's
11satisfaction, actual income as claimed in the application, and shall reveal all assets.
12Except as specified in par. (br), aid is available only if the combined equity value of
13assets does not exceed $1,000. One automobile with an equity value not exceeding
14$1,500, one home, as specified in par. (e), and, for each person, one burial plot and
1one burial agreement under s. 445.125 (1)
(b)
(a) 2. and
(c) 3. with a value of not more
2than $1,500 may not be included when determining the combined equity value of
3assets. Any amount received under section
32 of the internal revenue code, as
4defined in s. 71.01 (6), and any payment made by an employer under section
3507 of
5the internal revenue code, as defined in s. 71.01 (6), may not be included in
6determining the combined equity value of assets in the month of receipt and the
7following month.
SB535-SSA1, s. 2
8Section
2. 49.47 (4) (b) 3. of the statutes is amended to read:
SB535-SSA1,2,139
49.47
(4) (b) 3. For a person who is eligible under par. (a) 3. or 4., funds set aside
10to meet the burial and related expenses of the person and his or her spouse in an
11amount not to exceed $1,500 each, minus the sum of the cash value of any life
12insurance excluded under subd. 2w. and the amount in any irrevocable burial trust
13under s. 445.125 (1)
(a).
SB535-SSA1, s. 3
14Section
3. 49.47 (4) (i) 2. a. of the statutes is amended to read:
SB535-SSA1,2,2115
49.47
(4) (i) 2. a. For the person or his or her spouse, the sum of the following,
16less the cash value of any life insurance excluded under par. (b) 2w. that was obtained
17after July 1, 1993, exceeds $8,000: the value of any burial space or agreement
18described in par. (b) 2r. that was acquired after July 1, 1993; the amount in any
19irrevocable burial trust under s. 445.125 (1)
(a) that was acquired after July 1, 1993;
20and any funds set aside after July 1, 1993, to meet the burial and related expenses
21under par. (b) 3.
SB535-SSA1,3,224
214.04
(22) To maintain real estate broker trust accounts under s. 452.13,
25attorney trust accounts under s. 757.293, collection agency trust accounts under s.
1218.04 (9g), burial trust accounts under s. 445.125
(1) and care funds and preneed
2trust funds under s. 157.19.
SB535-SSA1, s. 5
3Section
5. 440.92 (4) (a) (intro.) of the statutes is amended to read:
SB535-SSA1,3,84
440.92
(4) (a) (intro.) Any person who sells or solicits the sale of cemetery
5merchandise under a preneed sales contract is not required to be registered under
6sub. (1) and the requirements of sub. (3) (a) and (b) do not apply to the sale if all
7payments received under the preneed sales contract are trusted as required under
8s. 445.125 (1) (a)
1. or if all of the following conditions are met:
SB535-SSA1,3,1310
440.92
(6) (c) A preneed seller who is the trustee of any trust fund under s.
11445.125
(1) shall include in the report required under par. (a) an accounting of
12amounts deposited in, amounts withdrawn from, income accruing to and the balance
13at the close of the reporting period of such trust funds.
SB535-SSA1, s. 7
14Section
7. 445.12 (3) of the statutes is renumbered 445.12 (3) (intro.) and
15amended to read:
SB535-SSA1,3,2216
445.12
(3) (intro.) No licensed funeral director or operator of a funeral
17establishment may, directly or indirectly, solicit a funeral service or the right to
18prepare a dead human body for burial or transportation either before or after death
19has occurred, or pay or cause to be paid any sum of money or other valuable
20consideration for the securing of the right to do such work
; but nothing herein shall
21interfere with the right of any person not a licensed funeral director to solicit. This
22subsection does not prohibit any of the following:
SB535-SSA1,3,25
23(a) The solicitation of memberships or
sell the sale of stock or memberships in
24any association organized under ch. 185
by any person who is not a licensed funeral
25director.
SB535-SSA1,4,32
445.12
(3) (b) The solicitation or sale of burial agreements to the extent
3permitted under sub. (3g) and s. 445.125 (3m).
SB535-SSA1,4,85
445.12
(3g) (a) Except as provided in pars. (b) and (c), a licensed funeral
6director, agent of a licensed funeral director, operator of a funeral establishment or
7agent of an operator of a funeral establishment may not solicit the sale of a burial
8agreement under s. 445.125 (3m) by doing any of the following:
SB535-SSA1,4,109
1. Knowingly contacting a prospective purchaser of a burial agreement in a
10hospital, health care facility or similar facility or institution.
SB535-SSA1,4,1211
2. Knowingly contacting a relative of a person whose death is imminent or
12appears to be imminent.
SB535-SSA1,4,1513
3. Contacting a prospective purchaser of a burial agreement by door-to-door
14solicitation or in a manner that violates rules promulgated by the examining board
15under s. 445.125 (3m) (j) 2.
SB535-SSA1,4,1916
(b) A licensed funeral director, agent of a licensed funeral director, operator of
17a funeral establishment or agent of an operator of a funeral establishment may solicit
18the sale of a burial agreement under s. 445.125 (3m) by contacting any person if any
19of the following applies:
SB535-SSA1,4,2020
1. The prospective purchaser requests the contact.
SB535-SSA1,4,2421
2. The contact is part of a mass-mailing, television, radio, print or other type
22of advertising campaign that is not directed solely toward persons in a hospital,
23health care facility or similar facility or institution or toward the relatives of a person
24whose death is imminent or appears to be imminent.
SB535-SSA1,5,5
1(c) Paragraph (a) 3. does not prohibit a licensed funeral director, agent of a
2licensed funeral director, operator of a funeral establishment or agent of an operator
3of a funeral establishment from using mass-marketing practices or in-person
4contacts or communications permitted under this section or by a rule promulgated
5by the examining board under s. 445.125 (3m) (j) 2.
SB535-SSA1,5,87
445.12
(3r) No licensed funeral director or operator of a funeral establishment
8may do any of the following:
SB535-SSA1,5,129
(a) Require a person who enters into a burial agreement under s. 445.125 (3m)
10to purchase a life insurance policy used to fund the agreement from an insurance
11intermediary licensed under ch. 628 who is specified by the funeral director or
12operator of the funeral establishment.
SB535-SSA1,5,1613
(b) Authorize an insurance intermediary licensed under ch. 628 to sell or solicit
14the sale of a burial agreement under s. 445.125 (3m) (b) 2. a. unless the insurance
15intermediary meets the training requirements established by the examining board
16by rule under s. 445.125 (3m) (j) 1. a.
SB535-SSA1,5,2318
445.12
(7) No licensed funeral director or operator of a funeral establishment
19may sell or cause to be sold any shares of stocks, certificates of membership or any
20other form of certificate which provides for any burial benefit or any rebate at the
21time of death to the holders thereof.
This subsection does not prohibit the sale of
22burial agreements to the extent permitted under, and that are in conformity with,
23s. 445.125 (3m).
SB535-SSA1, s. 12
24Section
12. 445.125 (1) (title) of the statutes is created to read:
SB535-SSA1,5,2525
445.125
(1) (title)
Burial agreements funded by trusts.
SB535-SSA1, s. 13
1Section
13. 445.125 (1) (a) to (d) of the statutes are renumbered 445.125 (1)
2(a) 1. to 4., and 445.125 (1) (a) 1., 3. and 4., as renumbered, are amended to read:
SB535-SSA1,6,163
445.125
(1) (a) 1.
Whenever Except as provided in sub. (3m), whenever a
4person, referred to in this
section subsection as the depositor, makes an agreement
5with another person selling or offering for sale funeral or burial merchandise or
6services, referred to in this
section subsection as the beneficiary, for the purchase of
7a casket, outer burial container not preplaced into the burial excavation of a grave,
8combination casket-outer burial container or other receptacle not described in
par.
9(e) sub. (4) (b) for the burial or other disposition of human remains or for the
10furnishing of funeral or burial services, either of which is intended to be provided for
11the final disposition of the body of a person, referred to in this
section subsection as
12the potential decedent, wherein the use of such personal property or the furnishing
13of such services is not immediately required, all payments made under the
14agreement shall be and remain trust funds, including interest and dividends if any,
15until occurrence of the death of the potential decedent, unless the funds are sooner
16released upon demand to the depositor, after written notice to the beneficiary.
SB535-SSA1,6,1817
3. Any interest or dividends accruing to a trust fund under
par. (b) subd. 2. may
18be made irrevocable.
SB535-SSA1,6,2119
4. Any depositor who made an irrevocable agreement under
par. (b) subd. 2. 20may designate a different beneficiary at any time prior to death, after written notice
21to the current beneficiary.
SB535-SSA1, s. 14
22Section
14. 445.125 (1) (e) of the statutes is renumbered 445.125 (4) (b) and
23amended to read:
SB535-SSA1,7,324
445.125
(4) (b)
This section does not apply to the The sale
and or delivery of
25cemetery lots, graves, outer burial containers preplaced into the burial excavation
1of a grave, cremation urns, mausoleum spaces, as defined in s. 157.061 (10), or grave
2or cemetery lot markers or monuments before their use is required or the sale of
3undeveloped spaces, as defined in s. 157.061 (17).
SB535-SSA1, s. 15
4Section
15. 445.125 (2) and (3) of the statutes are renumbered 445.125 (1) (b)
5and (c) and amended to read:
SB535-SSA1,8,26
445.125
(1) (b) All
such trust funds
under par. (a) shall be deposited with a bank
7or trust company within the state whose deposits are insured by the federal deposit
8insurance corporation, deposited in a savings and loan association or savings bank
9within the state whose deposits are insured by the federal deposit insurance
10corporation or invested in a credit union within the state whose savings are insured
11by the national board, as defined in s. 186.01 (3m), or by the Wisconsin credit union
12savings insurance corporation and shall be held in a separate account in the name
13of the depositor, in trust for the beneficiary until the trust fund is released under
14either of the conditions provided in
sub. (1) par. (a) 1. In the event of the death of the
15depositor before the death of the potential decedent, title to such funds shall vest in
16the potential decedent, and the funds shall be used for the personal property and
17services to be furnished under the contract for the funeral of the potential decedent.
18The depositor shall be furnished with a copy of the receipts, certificates or other
19appropriate documentary evidence showing that the funds have been deposited or
20invested in accordance with this
section subsection. The depositor or the beneficiary
21shall furnish the bank, trust company, savings bank, savings and loan association
22or credit union with a copy of the contract. Upon receipt of a certified copy of the
23certificate of death of the potential decedent, together with the written statement of
24the beneficiary that the agreement was complied with, the bank, trust company,
1savings bank, savings and loan association or credit union shall release such trust
2funds to the beneficiary.
SB535-SSA1,8,73
(c) The payment pursuant to this
section subsection of such fund and any
4interest or dividends which may have accumulated shall relieve the bank, trust
5company, savings bank, savings and loan association or credit union of any further
6liability for such funds, interest or dividends. A bank need not comply with ch. 223
7to accept and disburse deposits under this
section
subsection.
SB535-SSA1,8,109
445.125
(3m) Burial agreements funded with proceeds of life insurance
10policies. (a) In this subsection:
SB535-SSA1,8,1211
1. "Agent" means an authorized representative of a funeral director or operator
12of a funeral establishment.
SB535-SSA1,8,1613
2. "Burial agreement" means a written agreement between an operator of a
14funeral establishment or funeral director and a person in which the operator of the
15funeral establishment or funeral director agrees to provide to a person, after that
16person is deceased, funeral merchandise or funeral services.
SB535-SSA1,8,2417
3. "Cash advance item" means personal property or a service that is obtained
18by a funeral director or operator of a funeral establishment from a 3rd party and that
19is paid for by the funeral director or operator of the funeral establishment on behalf
20of, and subject to reimbursement from, a person purchasing funeral merchandise or
21funeral services from the funeral director or operator of the funeral establishment.
22"Cash advance item" includes cemetery or crematory services, pallbearers, public
23transportation, clergy honoraria, flowers, musicians or vocalists, nurses, obituary
24notices, gratuities and death certificates.
SB535-SSA1,9,9
14. "Funeral merchandise or funeral services" means personal property or
2services typically sold or provided in connection with the final disposition of human
3remains, including caskets or other primary containers not preplaced into the burial
4excavation of a grave, rental, temporary or disposable caskets or containers, outer
5burial containers not preplaced into the burial excavation of a grave, transportation
6containers, funeral clothing and accessories, embalming services and funeral
7directing services. "Funeral merchandise or funeral services" does not include a cash
8advance item or opening and closing costs that are associated with the burial of a
9deceased person.
SB535-SSA1,9,1310
(b) 1. A licensed funeral director, an operator of a funeral establishment, an
11agent of a licensed funeral director or, subject to par. (c), an agent of an operator of
12a funeral establishment may sell or solicit the sale of a burial agreement that is
13funded with the proceeds of a life insurance policy if all of the following apply: