AB776: Bill Text

AB776, s. 206 Section 206. 440.92 (2) (c) of the statutes is renumbered 440.922 (3) and amended to read:

AB776,66,21 440.922 (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.

AB776, s. 207 Section 207. 440.92 (2) (cm) of the statutes is renumbered 440.922 (4).

AB776, s. 208 Section 208. 440.92 (2) (d) of the statutes is renumbered 440.922 (5) (a).

AB776, s. 209 Section 209. 440.92 (2) (e) of the statutes is renumbered 440.922 (5) (b).

AB776, s. 210 Section 210. 440.92 (2) (f) of the statutes is renumbered 440.922 (5) (c) and amended to read:

AB776,67,6 440.922 (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.

AB776, s. 211 Section 211. 440.92 (2) (g) and (h) of the statutes are renumbered 440.922 (6) and (10).

AB776, s. 212 Section 212. 440.92 (2) (i) of the statutes is renumbered 440.922 (7) and amended to read:

AB776,67,18 440.922 (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.

AB776, s. 213 Section 213. 440.92 (2) (j) of the statutes is renumbered 440.922 (8).

AB776, s. 214 Section 214. 440.92 (2) (k) of the statutes is renumbered 440.922 (9) and amended to read:

AB776,68,3 440.922 (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."

AB776, s. 215 Section 215. 440.92 (3) (a) (intro.) of the statutes is renumbered 440.92 (3) (a) and amended to read:

AB776,68,15 440.92 (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:.

AB776, s. 216 Section 216. 440.92 (3) (a) 1. and 2. of the statutes are repealed.

AB776, s. 217 Section 217. 440.92 (3) (c) (intro.) of the statutes is amended to read:

AB776,68,20 440.92 (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:

AB776, s. 218 Section 218. 440.92 (4) (title) of the statutes is amended to read:

AB776,68,22 440.92 (4) (title) Exceptions to registration licensure requirement.

AB776, s. 219 Section 219. 440.92 (4) (a) (intro.) of the statutes is amended to read:

AB776,69,3 440.92 (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:

AB776, s. 220 Section 220. 440.92 (4) (b) of the statutes is amended to read:

AB776,69,10 440.92 (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.

AB776, s. 221 Section 221. 440.92 (5) of the statutes is renumbered 440.924.

AB776, s. 222 Section 222. 440.92 (6) (title) of the statutes is renumbered 440.926 (title) and amended to read:

AB776,69,15 440.926 (title) Reporting; Preneed seller reporting and record keeping; audits.

AB776, s. 223 Section 223. 440.92 (6) (a) of the statutes is renumbered 440.926 (1) (a) and amended to read:

AB776,69,23 440.926 (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.

AB776, s. 224 Section 224. 440.92 (6) (b) and (c) of the statutes are renumbered 440.926 (1) (b) and (c).

AB776, s. 225 Section 225. 440.92 (6) (d) of the statutes is renumbered 440.926 (2) (c) and amended to read:

AB776,70,8 440.926 (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).

AB776, s. 226 Section 226. 440.92 (6) (e) and (f) of the statutes are renumbered 440.926 (1) (d) and (e).

AB776, s. 227 Section 227. 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:

AB776,70,14 440.926 (2) (a) 1. The records needed to prepare the reports required under par. sub. (1) (a).

AB776,70,17 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.

AB776, s. 228 Section 228. 440.92 (6) (h) of the statutes is renumbered 440.926 (2) (b) and amended to read:

AB776,70,24 440.926 (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.

AB776, s. 229 Section 229. 440.92 (6) (i) of the statutes is renumbered 440.926 (3) (a) and amended to read:

AB776,71,5 440.926 (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.

AB776, s. 230 Section 230. 440.92 (6) (j) of the statutes is renumbered 440.926 (4) and amended to read:

AB776,71,15 440.926 (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.

AB776, s. 231 Section 231. 440.92 (6) (k) of the statutes is renumbered 440.926 (3) (b) and amended to read:

AB776,71,20 440.926 (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.

AB776, s. 232 Section 232. 440.92 (7) of the statutes is renumbered 440.927 and amended to read:

AB776,72,12 440.927 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).

AB776, s. 233 Section 233. 440.92 (9) (title) of the statutes is amended to read:

AB776,72,15 440.92 (9) (title) Exemptions; certification of compliance of religious cemetery affiliated with religious society authorities.

AB776, s. 234 Section 234. 440.92 (9) (a) of the statutes is amended to read:

AB776,73,2 440.92 (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.

AB776, s. 235 Section 235. 440.92 (9) (b) 3. of the statutes is amended to read:

AB776,73,9 440.92 (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.

AB776, s. 236 Section 236. 440.92 (9) (c) of the statutes is amended to read:

AB776,73,14 440.92 (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.

AB776, s. 237 Section 237. 440.92 (9) (e) of the statutes is amended to read:

AB776,73,19 440.92 (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.

AB776, s. 238 Section 238. 440.92 (9) (f) of the statutes is amended to read:

AB776,74,2 440.92 (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.

AB776, s. 239 Section 239. 440.92 (10) of the statutes is repealed.

AB776, s. 240 Section 240. 440.922 (1) (title), (4) (title), (5) (title), (6) (title), (8) (title) and (10) (title) of the statutes are created to read:

AB776,74,6 440.922 (1) (title) Delivery of cemetery merchandise.

AB776,74,7 (4) (title) Physical alteration of cemetery merchandise.

AB776,74,8 (5) (title) Undeveloped space sales.

AB776,74,9 (6) (title) Interest assignments.

AB776,74,10 (8) (title) Contract requirements.

AB776,74,11 (10) (title) Conflicting provisions.

AB776, s. 241 Section 241. 440.926 (1) (title), (2) (title) and (3) (title) of the statutes are created to read:

AB776,74,14 440.926 (1) (title) Reports.

AB776,74,15 (2) (title) Records.

AB776,74,16 (3) (title) Rules.

AB776, s. 242 Section 242. 440.928 of the statutes is created to read:

AB776,74,18 440.928 Burial space purchase agreements. (1) In this section:

AB776,74,19 (a) "Cemetery authority" does not include a religious cemetery authority.

AB776,74,21 (b) "Opening or closing fees" means fees charged by a cemetery authority for opening or closing a burial space.

AB776,74,23 (c) "Purchase agreement" means an agreement for the purchase of a burial space.

AB776,75,3 (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.

AB776,75,5 (3) A purchase agreement shall be in writing and shall include each of the following:

AB776,75,9 (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.

AB776,75,13 (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.

AB776,75,20 (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.

AB776, s. 243 Section 243. 440.929 of the statutes is created to read:

AB776,75,25 440.929 Rules. The department shall promulgate rules that establish a code of ethics to govern the professional conduct of cemetery authorities licensed under s. 440.91 (1), cemetery salespersons licensed under s. 440.91 (2), and preneed sellers licensed under s. 440.92 (1).

AB776, s. 244 Section 244. 440.93 (1) (intro.) of the statutes is amended to read:

AB776,76,11 440.93 (1) (intro.) The department may deny a certificate of licensure or registration of a cemetery authority, cemetery salesperson, or preneed seller and the board may reprimand a licensee or registrant or deny, limit, suspend, or revoke a certificate of licensure or registration a cemetery authority, cemetery salesperson or preneed seller if it if the department or board, respectively, finds that the applicant, licensee, or registrant, or, if the applicant, licensee, or registrant, is an association, partnership, limited liability company, or corporation, any officer, director, trustee, member, or shareholder who beneficially owns, holds , or has the power to vote 5% or more of any class of security issued by the applicant, licensee, or registrant, has done any of the following:

AB776, s. 245 Section 245. 440.93 (1) (b) of the statutes is amended to read:

AB776,76,15 440.93 (1) (b) Made a substantial misrepresentation or false promise to an individual to influence the individual to purchase a cemetery lot, cemetery merchandise or mausoleum a burial space.

AB776, s. 246 Section 246. 440.93 (1) (c) of the statutes is amended to read:

AB776,76,20 440.93 (1) (c) Engaged in any practice relating to the operation or management of a cemetery or the sale of a cemetery lot, cemetery merchandise or mausoleum a burial space which clearly demonstrates a lack of knowledge or ability to apply professional principles or skills.

AB776, s. 247 Section 247. 440.93 (1) (cm) of the statutes is created to read: