Amendment JR2 AA61-ASA1-AB1

AB1-ASA1-AA61, s. 464nz Section 464nz. 440.92 (2) (a) of the statutes is renumbered 440.922 (1) (a), and 440.922 (1) (a) 2., 3., 3g. and 4. (intro.), as renumbered, are amended to read:

AB1-ASA1-AA61,58,5 440.922 (1) (a) 2. By affixing the cemetery merchandise to the cemetery lot or mausoleum burial space.

AB1-ASA1-AA61,58,10 3. By storing the cemetery merchandise in a warehouse that is located on the property of the preneed seller if the preneed seller insures the cemetery merchandise and the preneed sales contract requires the preneed seller to ultimately affix the cemetery merchandise to the cemetery lot or mausoleum burial space without additional charge.

AB1-ASA1-AA61,58,16 3g. By storing the cemetery merchandise anywhere on the property of the preneed seller if the property of the preneed seller is located in this state, the preneed seller insures the cemetery merchandise and the preneed sales contract requires the preneed seller to ultimately affix the cemetery merchandise to a cemetery lot burial space, to the outside of or the grounds surrounding a mausoleum or columbarium or to any other outdoor location without additional charge.

AB1-ASA1-AA61,58,23 4. (intro.) By having the cemetery merchandise stored in a warehouse that is not located on the property of the preneed seller if the warehouse has agreed to ship the cemetery merchandise to the preneed seller, purchaser, or beneficiary named in the preneed sales contract without additional charge to the purchaser and the preneed sales contract requires that the cemetery merchandise ultimately be affixed to the cemetery lot or mausoleum burial space without additional charge. If the cemetery merchandise is delivered under this subdivision, all of the following apply:

AB1-ASA1-AA61, s. 464oa Section 464oa. 440.92 (2) (am) of the statutes is renumbered 440.922 (2) and amended to read:

AB1-ASA1-AA61,59,10 440.922 (2) Affixture of cemetery merchandise. If a preneed sales contract for the sale of cemetery merchandise requires the preneed seller to ultimately affix the cemetery merchandise to a cemetery lot, mausoleum burial space or other location but the purchaser has not informed the preneed seller of the location where the cemetery merchandise is to be affixed and the location where the cemetery merchandise is to be affixed is not specified in the preneed sales contract, the preneed sales contract may provide that the preneed seller may charge the purchaser an additional fee at the time that the cemetery merchandise is affixed not to exceed the additional costs to the preneed seller that are necessitated by the purchaser's choice of location.

AB1-ASA1-AA61, s. 464ob Section 464ob. 440.92 (2) (b) of the statutes is renumbered 440.922 (1) (b).

AB1-ASA1-AA61, s. 464oc Section 464oc. 440.92 (2) (c) of the statutes is renumbered 440.922 (3) and amended to read:

AB1-ASA1-AA61,59,19 440.922 (3) Voiding of contracts. Except as provided in par. (cm) sub. (4), a preneed sales contract shall provide that if the purchaser voids the preneed sales contract at any time within 10 days after the date of the initial payment the preneed seller shall, within 30 days after the date on which the preneed sales contract is voided, refund all money paid by the purchaser for cemetery merchandise that has not been supplied or delivered and for the mausoleum space.

AB1-ASA1-AA61, s. 464od Section 464od. 440.92 (2) (cm) of the statutes is renumbered 440.922 (4).

AB1-ASA1-AA61, s. 464oe Section 464oe. 440.92 (2) (d) of the statutes is renumbered 440.922 (5) (a).

AB1-ASA1-AA61, s. 464of Section 464of. 440.92 (2) (e) of the statutes is renumbered 440.922 (5) (b).

AB1-ASA1-AA61, s. 464og Section 464og. 440.92 (2) (f) of the statutes is renumbered 440.922 (5) (c) and amended to read:

AB1-ASA1-AA61,60,4 440.922 (5) (c) If a preneed sales contract is voided under par. (e) (b), the preneed seller shall, within 30 days after the date on which the preneed sales contract is voided, refund all money paid by the purchaser, together with interest calculated at the legal rate of interest as provided under s. 138.04.

AB1-ASA1-AA61, s. 464oh Section 464oh. 440.92 (2) (g) and (h) of the statutes are renumbered 440.922 (6) and (10).

AB1-ASA1-AA61, s. 464oi Section 464oi. 440.92 (2) (i) of the statutes is renumbered 440.922 (7) and amended to read:

AB1-ASA1-AA61,60,16 440.922 (7) Trusting requirements. If a preneed sales contract includes provisions for the sale of cemetery merchandise or an undeveloped space that is subject to the trusting requirements under sub. s. 440.92 (3) (a) and (b) and for the sale of other goods or services that are not subject to the trusting requirements under sub. s. 440.92 (3) (a) and (b), the sale price of the goods or services that are not subject to the trusting requirements may not be inflated for the purpose of allocating a lower sale price to the cemetery merchandise or undeveloped space that is subject to the trusting requirements.

AB1-ASA1-AA61, s. 464oj Section 464oj. 440.92 (2) (j) of the statutes is renumbered 440.922 (8).

AB1-ASA1-AA61, s. 464ok Section 464ok. 440.92 (2) (k) of the statutes is renumbered 440.922 (9) and amended to read:

AB1-ASA1-AA61,61,2 440.922 (9) Notice of rights. A preneed sales contract shall include the following language in not less than 10-point boldface type: "SECTION 440.92 (2) 440.922 OF THE WISCONSIN STATUTES SPECIFIES THE RIGHTS OF THE PURCHASER UNDER THIS CONTRACT. DEPENDING ON THE CIRCUMSTANCES, THESE MAY INCLUDE THE RIGHT TO VOID THE CONTRACT AND RECEIVE A REFUND OR THE RIGHT TO ASSIGN AN INTEREST IN THE CONTRACT TO ANOTHER PERSON."

AB1-ASA1-AA61, s. 464oL Section 464oL. 440.92 (3) (a) (intro.) of the statutes is renumbered 440.92 (3) (a) and amended to read:

AB1-ASA1-AA61,61,14 440.92 (3) (a) A preneed seller shall deposit into a preneed trust fund an amount equal to at least 40% of each payment of principal that is received from the sale of cemetery merchandise under a preneed sales contract, or the wholesale cost ratio for the cemetery merchandise multiplied by the amount of the payment of principal that is received, whichever is greater. In addition to the amount required to be deposited under this paragraph for the sale of cemetery merchandise and except as provided in par. (c), if a preneed seller receives payment for the sale of an undeveloped space under a preneed sales contract, the preneed seller shall deposit a percentage at least 40% of each payment of principal that is received from the sale of the undeveloped space into a preneed trust fund, determined as follows:.

AB1-ASA1-AA61, s. 464om Section 464om. 440.92 (3) (a) 1. and 2. of the statutes are repealed.

AB1-ASA1-AA61, s. 464on Section 464on. 440.92 (3) (c) (intro.) of the statutes is amended to read:

AB1-ASA1-AA61,61,19 440.92 (3) (c) (intro.) A preneed seller is not required to make the deposits required under par. (a) 1. and 2. for payments for sales of undeveloped spaces under preneed contracts if any of the following applies:

AB1-ASA1-AA61, s. 464oo Section 464oo. 440.92 (4) (title) of the statutes is amended to read:

AB1-ASA1-AA61,61,21 440.92 (4) (title) Exceptions to registration licensure requirement.

AB1-ASA1-AA61, s. 464op Section 464op. 440.92 (4) (a) (intro.) of the statutes is amended to read:

AB1-ASA1-AA61,62,2 440.92 (4) (a) (intro.) Any person who sells or solicits the sale of cemetery merchandise under a preneed sales contract is not required to be registered licensed under sub. (1) and the requirements of sub. (3) (a) and (b) do not apply to the sale if all payments received under the preneed sales contract are trusted as required under s. 445.125 (1) (a) 1. or if all of the following conditions are met:

AB1-ASA1-AA61, s. 464oq Section 464oq. 440.92 (4) (b) of the statutes is amended to read:

AB1-ASA1-AA61,62,9 440.92 (4) (b) If any preneed seller who is not registered licensed under sub. (1) accepts a payment under a preneed sales contract and the merchandise is not delivered within 180 days after the date of the sale, the preneed seller shall immediately notify the purchaser that the purchaser is entitled to a refund of all money paid by the purchaser, together with interest calculated at the legal rate of interest as provided under s. 138.04, at any time before the merchandise is delivered.

AB1-ASA1-AA61, s. 464or Section 464or. 440.92 (5) of the statutes is renumbered 440.924.

AB1-ASA1-AA61, s. 464os Section 464os. 440.92 (6) (title) of the statutes is renumbered 440.926 (title) and amended to read:

AB1-ASA1-AA61,62,14 440.926 (title) Reporting; Preneed seller reporting and record keeping; audits.

AB1-ASA1-AA61, s. 464ot Section 464ot. 440.92 (6) (a) of the statutes is renumbered 440.926 (1) (a) and amended to read:

AB1-ASA1-AA61,62,22 440.926 (1) (a) Every preneed seller registered licensed under sub. s. 440.92 (1) shall file an annual report with the department. The report shall be made on a form prescribed and furnished by the department. The report shall be made on a calendar-year basis unless the department, by rule, provides for other reporting periods. The report is due on or before the 60th day after the last day of the reporting period.

AB1-ASA1-AA61, s. 464ou Section 464ou. 440.92 (6) (b) and (c) of the statutes are renumbered 440.926 (1) (b) and (c).

AB1-ASA1-AA61, s. 464ov Section 464ov. 440.92 (6) (d) of the statutes is renumbered 440.926 (2) (c) and amended to read:

AB1-ASA1-AA61,63,8 440.926 (2) (c) All records described under pars. sub. (1) (b) 2. and (c) and maintained by the department are confidential and are not available for inspection or copying under s. 19.35 (1). This paragraph does not apply to any information regarding the name, address, or employer of or financial information related to an individual that is requested under s. 49.22 (2m) by the department of workforce development or a county child support agency under s. 59.53 (5).

AB1-ASA1-AA61, s. 464ow Section 464ow. 440.92 (6) (e) and (f) of the statutes are renumbered 440.926 (1) (d) and (e).

AB1-ASA1-AA61, s. 464ox Section 464ox. 440.92 (6) (g) of the statutes is renumbered 440.926 (2) (a), and 440.926 (2) (a) 1. and 2., as renumbered, are amended to read:

AB1-ASA1-AA61,63,14 440.926 (2) (a) 1. The records needed to prepare the reports required under par. sub. (1) (a).

AB1-ASA1-AA61,63,17 2. Records that show, for each deposit in a trust fund or account specified in pars. sub. (1) (b) 2. and (c), the name of the purchaser or beneficiary of the preneed sales contract relating to the deposit and the item purchased.

AB1-ASA1-AA61, s. 464oy Section 464oy. 440.92 (6) (h) of the statutes is renumbered 440.926 (2) (b) and amended to read:

AB1-ASA1-AA61,63,24 440.926 (2) (b) The records under par. sub. (1) (b) 1. shall be permanently maintained by the preneed seller. The records under par. sub. (1) (b) 2. shall be maintained for not less than 3 years after all of the obligations of the preneed sales contract have been fulfilled. The department may promulgate rules to establish longer time periods for maintaining records under this paragraph.

AB1-ASA1-AA61, s. 464oz Section 464oz. 440.92 (6) (i) of the statutes is renumbered 440.926 (3) (a) and amended to read:

AB1-ASA1-AA61,64,5 440.926 (3) (a) The department may promulgate rules requiring preneed sellers registered licensed under sub. s. 440.92 (1) to maintain other records and establishing minimum time periods for the maintenance of those records.

AB1-ASA1-AA61, s. 464pa Section 464pa. 440.92 (6) (j) of the statutes is renumbered 440.926 (4) and amended to read:

AB1-ASA1-AA61,64,15 440.926 (4) Audits. The department may audit, at reasonable times and frequency, the records, trust funds, and accounts of any preneed seller registered licensed under sub. s. 440.92 (1), including records, trust funds, and accounts pertaining to services provided by a preneed seller which are not otherwise subject to the requirements under this section subchapter. The department may conduct audits under this paragraph subsection on a random basis, and shall conduct all audits under this paragraph subsection without providing prior notice to the preneed seller.

AB1-ASA1-AA61, s. 464pb Section 464pb. 440.92 (6) (k) of the statutes is renumbered 440.926 (3) (b) and amended to read:

AB1-ASA1-AA61,64,20 440.926 (3) (b) The department may promulgate rules establishing a filing fee to accompany the report required under par. sub. (1) (a). The filing fee shall be based on the approximate cost of regulating preneed sellers.

AB1-ASA1-AA61, s. 464pc Section 464pc. 440.92 (7) of the statutes is renumbered 440.927 and amended to read:

AB1-ASA1-AA61,65,12 440.927 Approval of warehouses. No person may own or operate a warehouse located inside or outside this state unless the warehouse is approved by the department. Upon application, the department shall approve a warehouse that is located in this state if the person who operates the warehouse is licensed as a public warehouse keeper by the department of agriculture, trade and consumer protection under ch. 99, but may not approve a warehouse that is located in this state unless the person is so licensed. The department shall promulgate rules establishing the requirements for approval of warehouses that are located outside this state under this section. The rules shall require warehouses that are located outside this state to file with the department a bond furnished by a surety company authorized to do business in this state in an amount that is sufficient to guarantee the delivery of cemetery merchandise to purchasers under preneed sales contracts. The department shall compile and keep a current list of the names and addresses of all warehouses approved under this subsection section and shall make the list available for public inspection during the times specified in s. 230.35 (4) (f).

AB1-ASA1-AA61, s. 464pcc Section 464pcc. 440.92 (9) (title) of the statutes is amended to read:

AB1-ASA1-AA61,65,15 440.92 (9) (title) Exemptions; certification of compliance of religious cemetery affiliated with religious society authorities.

AB1-ASA1-AA61, s. 464pd Section 464pd. 440.92 (9) (a) of the statutes is amended to read:

AB1-ASA1-AA61,66,2 440.92 (9) (a) If the cemetery authority of a cemetery that is affiliated with a religious society organized under ch. 187 or that religious society a religious cemetery authority or the church, synagogue, mosque, incorporated college of a religious order, or religious society organized under ch. 187 that is affiliated with a religious cemetery authority files an annual certification with the department as provided in this subsection, neither the religious cemetery authority nor any employee of the cemetery is required to be registered licensed as a cemetery preneed seller under sub. (1) during the period for which the certification is effective, but the religious cemetery authority and any employee are required to comply, if applicable, with the requirements of s. 445.125.

AB1-ASA1-AA61, s. 464pe Section 464pe. 440.92 (9) (b) 3. of the statutes is amended to read:

AB1-ASA1-AA61,66,9 440.92 (9) (b) 3. A notarized statement of a person who is legally authorized to act on behalf of the religious society cemetery authority under this subsection that, during the 12-month period immediately preceding the date on which the certification is filed with the department, each employee specified under subd. 2. and the religious cemetery authority have either fully complied or have substantially complied with subs. (2), sub. (3) (a) and (b) and (5) ss. 440.922 and 440.924.

AB1-ASA1-AA61, s. 464pf Section 464pf. 440.92 (9) (c) of the statutes is amended to read:

AB1-ASA1-AA61,66,14 440.92 (9) (c) If the statement under par. (b) 3. includes a statement of substantial compliance, the statement of substantial compliance must also specify those instances when the employee or religious cemetery authority did not fully comply with sub. (2), (3) (a) or (b) or (5) s. 440.922 or 440.924.

AB1-ASA1-AA61, s. 464pg Section 464pg. 440.92 (9) (e) of the statutes is amended to read:

AB1-ASA1-AA61,66,19 440.92 (9) (e) During the effective period specified under par. (d), the department may not audit the preneed trust funds or any records or accounts relating to the preneed trust funds of the religious cemetery authority or any employee of the cemetery to which a certification under this subsection applies.

AB1-ASA1-AA61, s. 464ph Section 464ph. 440.92 (9) (f) of the statutes is amended to read:

AB1-ASA1-AA61,67,2 440.92 (9) (f) The church, synagogue, mosque, incorporated college of a religious order, or religious society that is affiliated with a cemetery to which a certification under this subsection applies is liable for the damages of any person that result from the failure of any employee specified under par. (b) 2. or the religious cemetery authority to fully comply with sub. (2), (3) (a) or (b) or (5) s. 440.922 or 440.924 during the 12-month period for which such compliance has been certified under this subsection.

AB1-ASA1-AA61, s. 464pi Section 464pi. 440.92 (10) of the statutes is repealed.

AB1-ASA1-AA61, s. 464pj Section 464pj. 440.922 (1) (title), (4) (title), (5) (title), (6) (title), (8) (title) and (10) (title) of the statutes are created to read:

AB1-ASA1-AA61,67,6 440.922 (1) (title) Delivery of cemetery merchandise.

AB1-ASA1-AA61,67,7 (4) (title) Physical alteration of cemetery merchandise.

AB1-ASA1-AA61,67,8 (5) (title) Undeveloped space sales.

AB1-ASA1-AA61,67,9 (6) (title) Interest assignments.

AB1-ASA1-AA61,67,10 (8) (title) Contract requirements.

AB1-ASA1-AA61,67,11 (10) (title) Conflicting provisions.

AB1-ASA1-AA61, s. 464pk Section 464pk. 440.926 (1) (title), (2) (title) and (3) (title) of the statutes are created to read:

AB1-ASA1-AA61,67,14 440.926 (1) (title) Reports.

AB1-ASA1-AA61,67,15 (2) (title) Records.

AB1-ASA1-AA61,67,16 (3) (title) Rules.

AB1-ASA1-AA61, s. 464pL Section 464pL. 440.928 of the statutes is created to read:

AB1-ASA1-AA61,67,18 440.928 Burial space purchase agreements. (1) In this section:

AB1-ASA1-AA61,67,19 (a) "Cemetery authority" does not include a religious cemetery authority.

AB1-ASA1-AA61,67,21 (b) "Opening or closing fees" means fees charged by a cemetery authority for opening or closing a burial space.

AB1-ASA1-AA61,67,23 (c) "Purchase agreement" means an agreement for the purchase of a burial space.

AB1-ASA1-AA61,68,3 (2) Before entering into a purchase agreement, a cemetery authority shall disclose to the purchaser any opening or closing fees charged by the cemetery authority.

AB1-ASA1-AA61,68,5 (3) A purchase agreement shall be in writing and shall include each of the following:

AB1-ASA1-AA61,68,9 (a) The terms and conditions and any other pertinent information regarding the purchase, including the price of the burial space, any perpetual care requirements, and any resale, inheritor, cancellation, or refund rights under the agreement.

AB1-ASA1-AA61,68,13 (b) A description of all goods and services that are reasonably expected to be required at the time of need that are not subject to the purchase agreement, including opening and closing fees and any additional fees for weekend, holiday, or after hours burial.

AB1-ASA1-AA61,68,20 (4) A cemetery authority shall assign a serial number to each purchase agreement that it enters into, maintain file copies in numerical order according to the serial number and enter the serial number and a description of each purchase agreement into a sales journal. Any additional purchase by a purchaser more than 30 days after entering a purchase agreement shall be the subject of a separate purchase agreement with a separate serial number that is the current unused serial number in consecutive order.

AB1-ASA1-AA61, s. 464pm Section 464pm. 440.929 of the statutes is created to read: