AB776: Bill Text

AB776, s. 180 Section 180. 440.90 (4r) of the statutes is created to read:

AB776,59,13 440.90 (4r) "Licensee" means a person licensed under this subchapter.

AB776, s. 181 Section 181. 440.90 (10m) of the statutes is created to read:

AB776,59,15 440.90 (10m) "Registrant" means a person registered under this subchapter.

AB776, s. 182 Section 182. 440.90 (10r) of the statutes is created to read:

AB776,59,18 440.90 (10r) "Religious cemetery authority" has the meaning given in s. 157.061 (15m).

AB776, s. 183 Section 183. 440.90 (14) of the statutes is repealed.

AB776, s. 184 Section 184. 440.91 (1) of the statutes is renumbered 440.91 (1) (a) and amended to read:

AB776,60,7 440.91 (1) (a) Except as provided in sub. (6m), every cemetery authority that operates a cemetery that is 5 acres or more in size, that sells or solicits the sale of a total of 10 20 or more cemetery lots or mausoleum burial spaces at a cemetery during a calendar year and that pays any commission or other compensation to any person for selling or soliciting the sale of its cemetery lots or mausoleum spaces shall register with, or that has $100,000 or more in trust fund accounts for a cemetery shall apply to the department. The registration shall be in writing and shall include the names of the officers of the cemetery authority for a license for that cemetery. A cemetery authority that operates more than one cemetery shall apply for a separate license for each cemetery that is 5 acres or more in size and for each cemetery, at which it sells 20 or more burial spaces or at which it has $100,000 or more in trust fund accounts.

AB776, s. 185 Section 185. 440.91 (1) (b), (c), (d) and (e) of the statutes are created to read:

AB776,60,10 440.91 (1) (b) Except as provided in s. 440.93 (1), the department shall grant a license to a cemetery authority if all of the following are satisfied:

AB776,60,15 1. The cemetery authority submits an application for the license to the department on a form provided by the department. The application shall require the cemetery authority to provide the names of the officers of the cemetery authority and to identify a business representative who is primarily responsible for the cemetery authority's compliance with subch. II of ch. 157 and this subchapter.

AB776,60,17 2. The cemetery authority pays the fee specified in s. 440.05 (1) and any fees, costs, or expenses charged by the department under s. 440.03 (13) (c).

AB776,60,20 (c) A licensed cemetery authority shall notify the department if it designates a substitute business representative to take the place of a business representative identified under par. (b) 1.

AB776,60,25 (d) If a licensed cemetery authority notifies the department under s. 157.08 (2) (b) 1. (intro.) that it proposes to take an action specified in s. 157.08 (2) (b) 1. b. or c. and the department does not object to the action under s. 157.08 (2) (b) 3., the department shall revoke the license granted under par. (b) and require the licensed cemetery authority to reapply for a license under par. (b).

AB776,61,4 (e) 1. The renewal dates and renewal fees for licenses granted under par. (b) are specified in s. 440.08 (2) (a), except that a licensed cemetery authority is not required to renew its license if the cemetery authority sells less than 10 burial spaces during a period of 2 consecutive calendar years.

AB776,61,8 2. A licensed cemetery authority that is not required to renew its license under subd. 1. shall renew the license if, during a period of 2 consecutive calendar years that is subsequent to the period specified in subd. 1., the cemetery authority sells 10 or more burial spaces.

AB776, s. 186 Section 186. 440.91 (1m) of the statutes is created to read:

AB776,61,17 440.91 (1m) (a) Except as provided in par. (c) and sub. (6m), a cemetery authority that operates a cemetery for which a license is not required under sub. (1) shall register the cemetery with the department by paying a $5 registration fee and submitting an application on a form provided by the department that requires the applicant to provide the names of the officers of the cemetery authority and any other information that the department may require. A cemetery authority that operates more than one cemetery for which a license is not required under sub. (1) shall pay a separate registration fee and submit a separate application for each cemetery.

AB776,61,19 (b) The renewal dates and renewal fees for registrations under par. (a) are specified in s. 440.08 (2) (a).

AB776,61,22 (c) A cemetery authority is not required to register under par. (a) if it receives no income, other than gifts, from the sale of lots or services or from trust fund earnings.

AB776, s. 187 Section 187. 440.91 (2) (intro.) of the statutes is amended to read:

AB776,62,10 440.91 (2) (intro.) Except as provided in subs. (7) and (10), every individual who person that sells or solicits the sale of, or who that expects to sell or solicit the sale of, a total of 10 20 or more cemetery lots or mausoleum burial spaces during a 2 calendar year years shall register with be licensed by the department. An individual A person may not be registered licensed as a cemetery salesperson except upon the written request of a cemetery authority and the payment of the fee specified in s. 440.05 (1). The cemetery authority shall certify in writing to the department that the individual person is competent to act as a cemetery salesperson. Within 10 days after the certification of any cemetery salesperson, the cemetery salesperson shall verify and An applicant for licensure as a cemetery salesperson shall furnish to the department, in such form as the department prescribes, all of the following information:

AB776, s. 188 Section 188. 440.91 (2) (a) of the statutes is repealed and recreated to read:

AB776,62,13 440.91 (2) (a) The name and address of the applicant and, if the applicant is a business entity, the name and address of each business representative.

AB776, s. 189 Section 189. 440.91 (2) (b) and (c) of the statutes are repealed.

AB776, s. 190 Section 190. 440.91 (4) of the statutes is amended to read:

AB776,62,21 440.91 (4) Renewal applications shall be submitted to the department on a form provided by the department on or before the applicable renewal date specified under s. 440.08 (2) (a) and shall include the applicable renewal fee specified under s. 440.08 (2) (a). An applicant for renewal of a cemetery salesperson license shall identify each individual that is exempt from licensure under sub. (7) and that the applicant has supervised during the prior 2 years.

AB776, s. 191 Section 191. 440.91 (6m) of the statutes is repealed and recreated to read:

AB776,62,24 440.91 (6m) A religious cemetery authority is not required to be licensed under sub. (1) or registered under sub. (1m).

AB776, s. 192 Section 192. 440.91 (7) of the statutes is renumbered 440.91 (7) (a) and amended to read:

AB776,63,8 440.91 (7) (a) An individual who solicits the sale of cemetery lots or mausoleum spaces in a cemetery organized, maintained, and operated by a town, village, or city, church, synagogue or mosque, religious, or fraternal or benevolent society or incorporated college of a religious order is not required to be registered licensed under sub. (2) if the individual is supervised by a cemetery salesperson licensed under sub. (2).

AB776, s. 193 Section 193. 440.91 (7) (b) of the statutes is created to read:

AB776,63,12 440.91 (7) (b) An individual who solicits the sale of cemetery lots or mausoleum spaces in a cemetery owned and operated by a religious cemetery authority is not required to be licensed under sub. (2).

AB776, s. 194 Section 194. 440.91 (8) of the statutes is repealed.

AB776, s. 195 Section 195. 440.91 (9) of the statutes is amended to read:

AB776,63,21 440.91 (9) No cemetery authority or cemetery salesperson registered licensed under sub. (1) or (2) may pay a fee or commission as compensation for a referral or as a finder's fee relating to the sale of a cemetery lot, cemetery merchandise or mausoleum a burial space to any person who is not registered licensed under sub. (1) or (2) or who is not regularly and lawfully engaged in the sale of cemetery lots, cemetery merchandise or mausoleum burial spaces in another state or territory of the United States or a foreign country.

AB776, s. 196 Section 196. 440.91 (10) of the statutes is amended to read:

AB776,64,2 440.91 (10) Nothing in this section requires an individual who is registered licensed as a preneed seller under s. 440.92 (1) to be registered licensed as a cemetery salesperson under sub. (2) if the individual only sells or solicits the sale of cemetery merchandise or undeveloped spaces under preneed sales contracts.

AB776, s. 197 Section 197. 440.92 (1) (title) of the statutes is repealed and recreated to read:

AB776,64,4 440.92 (1) (title) Licensure.

AB776, s. 198 Section 198. 440.92 (1) (a) of the statutes is amended to read:

AB776,64,12 440.92 (1) (a) Except as provided in subs. (4), and (9) (a) and (10), every individual who sells or solicits the sale of cemetery merchandise or an undeveloped space under a preneed sales contract and, if the is required to be licensed under this subsection and, if applicable, comply with the requirements under s. 445.125. If such an individual is employed by or acting as an agent for a cemetery authority or any other person, that cemetery authority or other person is also required to be registered licensed under this subsection.

AB776, s. 199 Section 199. 440.92 (1) (b) (intro.) of the statutes is amended to read:

AB776,64,15 440.92 (1) (b) (intro.) The department shall issue a certificate of registration licensure as a cemetery preneed seller to any person who does all of the following:

AB776, s. 200 Section 200. 440.92 (1) (bm) of the statutes is created to read:

AB776,64,21 440.92 (1) (bm) If a cemetery authority that is registered under this subsection notifies the department under s. 157.08 (2) (b) 1. (intro.) that it proposes to take an action specified in s. 157.08 (2) (b) 1. b. or c. and the department does not object to the action under s. 157.08 (2) (b) 3., the department shall revoke the registration and require the cemetery authority to reapply for a registration under this subsection.

AB776, s. 201 Section 201. 440.92 (1) (e) of the statutes is amended to read:

AB776,65,2 440.92 (1) (e) Nothing in this subsection requires an individual who is registered licensed as a cemetery salesperson under s. 440.91 (2) to be registered licensed under this subsection if the individual does not conduct or solicit any sale under a preneed sales contract.

AB776, s. 202 Section 202. 440.92 (2) (title) of the statutes is renumbered 440.922 (title).

AB776, s. 203 Section 203. 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:

AB776,65,7 440.922 (1) (a) 2. By affixing the cemetery merchandise to the cemetery lot or mausoleum burial space.

AB776,65,12 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.

AB776,65,18 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.

AB776,65,25 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:

AB776, s. 204 Section 204. 440.92 (2) (am) of the statutes is renumbered 440.922 (2) and amended to read:

AB776,66,12 440.922 (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.

AB776, s. 205 Section 205. 440.92 (2) (b) of the statutes is renumbered 440.922 (1) (b).

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: