Business Regulation (GBR) — Title 5. Cemeteries

“Burial goods” means goods that are used in connection with burial.

“Burial goods” includes:

“Cemetery” means land used or to be used for interment.

“Cemetery” includes a structure used or to be used for interment.

the establishment, improvement, care, preservation, or embellishment of a cemetery;

interment; and

the providing of burial space or burial goods.

“Human remains” means:

“Human remains” includes the body or part of a body or limb in any state of decomposition.

“Human remains” does not include soil remains produced after the completion of natural organic reduction.

earth burial;

mausoleum entombment; and

niche or columbarium inurnment.

engage in the operation of a cemetery; or

provide burial goods.

“Pet remains” means the body of a deceased animal that was kept as a pet.

“Pet remains” includes the body of a pet or a part of a pet’s body in any state of decomposition or the body of a pet after having been cremated.

“Preneed goods” means burial goods that are sold before the buyer’s death.

“Preneed goods” does not include burial space.

to erect, service, or inscribe burial memorials; or

to sell burial goods.

a person that owns and operates a bona fide religious–nonprofit cemetery in this State;

a cemetery owned by a nonprofit organization created before 1900 by an act of the General Assembly;

a county, city, or municipal corporation that owns and operates a cemetery in the State;

a veterans’ cemetery operated by the State; or

a private family cemetery that does not conduct public sales.

the operation of a funeral establishment, including the sale of burial goods in the ordinary course of the funeral establishment’s business;

the operation or ownership of a crematory, incinerator, or reduction facility;

a licensed funeral director acting within the scope of the funeral director’s license; or

a mortician acting within the scope of the mortician’s license.

The Secretary shall appoint an Advisory Council on Cemetery Operations.

The Advisory Council consists of 11 members.

Of the 11 members of the Advisory Council:

The Advisory Council shall be convened at least four times a year to give advice to the Secretary and the Director.

In addition to the required meetings, the Advisory Council may meet as necessary.

The Secretary shall appoint a Director of the Office of Cemetery Oversight with the approval of the Governor.

The Director serves at the pleasure of the Secretary.

compensation in accordance with the State budget; and

reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

administer and operate the Office; and

be responsible to the Secretary.

hold any position or engage in another business that interferes or conflicts with the position of the Director;

be a registered cemeterian or a registered seller;

engage in any act for which a registration is required under this title; or

in connection with any registered cemeterian, registered seller, permit holder, funeral director, funeral establishment, or related death care entity, directly or indirectly receive or become entitled to receive any fee, perquisite, or compensation.

rules and regulations to carry out this title; and

a code of ethics for engaging in the operation of a cemetery or providing burial goods.

administer oaths;

examine witnesses; and

receive evidence.

The Director may issue a subpoena for the attendance of a witness to testify or for the production of evidence in connection with any investigation or hearing conducted in accordance with this section.

If a person fails to comply with a subpoena issued under this subsection, on petition of the Director, a circuit court may compel compliance with the subpoena.

The Director may sue in the name of the State to enforce any provision of this title by injunction.

In seeking an injunction under this subsection, the Director is not required to:

The Director or staff may not be held personally liable for any action taken under this title in good faith and with reasonable grounds.

a violation of this title for enforcement; and

an alleged unfair or deceptive trade practice under Title 13 of the Commercial Law Article.

For each fiscal year, the Director shall maintain a list of:

All lists maintained by the Director shall be open to inspection by any person.

Based on the list maintained by the Director under paragraph (1)(i) of this subsection, the Director shall include in the annual report to the General Assembly required under subsection (l)(3) of this section the following information as of June 30 of the year that is the subject of the report:

The Director shall distribute a copy of the Maryland Cemetery Act, code of ethics, and applicable regulations to each applicant for registration or permit.

Upon renewal of a registration or permit, the Director shall distribute any amendments to the Maryland Cemetery Act, code of ethics, or applicable rules and regulations that have occurred since the last application.

the rights of consumers in the purchase of funeral, cemetery, crematory goods and services, and natural organic reduction; and

any other information that the Director considers reasonably necessary to aid consumers.

Beginning with a report due on December 1, 2008, the Director shall conduct an inventory of all known burial sites in the State and shall update the inventory and report every 5 years to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the number of for–profit cemeteries, nonreligious–nonprofit cemeteries, bona fide religious–nonprofit cemeteries, veterans’ cemeteries, and local government–owned cemeteries.

Beginning December 1, 2008, the Director shall annually assess the rate of compliance with the registration, permit, and reporting requirements of this title by comparing the lists required under subsection (i)(1)(ii) and (iii) of this section with the most recent inventory of all known burial sites conducted under paragraph (1) of this subsection.

Beginning with a report due on January 31, 2009, for fiscal year 2008, the Director shall report annually to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the implementation of an action plan, if appropriate, to address any noncompliance issues identified by the assessment required under paragraph (2) of this subsection.

The Director shall provide a copy of the annual report required under paragraph (3) of this subsection to each member of the Advisory Council.

By regulation, the Director shall establish reasonable fees and a fee schedule for the issuance and renewal of registrations and permits.

In establishing the fees, the Director shall consider:

The Fund shall be used to cover the actual documented direct and indirect costs of fulfilling the statutory and regulatory duties of the Office.

The Fund is a continuing nonlapsing fund, not subject to § 7–302 of the State Finance and Procurement Article.

Any unspent portions of the Fund may not revert or be transferred to the General Fund of the State, but shall remain in the Fund to be used for the purposes specified in this title.

No other State money may be used to support the Fund.

The Director shall administer the Fund.

Money in the Fund may be expended for any lawful purpose authorized under the provisions of this title.

submitting to the Director an application on the form that the Director provides; and

paying a nonrefundable application fee set by the Director.

the name, date of birth, and residential address of the applicant;

the name and fixed address of the affiliated cemetery or burial goods business;

whether the cemetery or burial goods business with which the applicant is affiliated is owned or controlled by a sole proprietor, partnership, limited liability company, or corporation;

if the applicant is designated as the responsible party, the name and residential address of each employee who sells burial space, goods, or services to the public for the business while engaging in the operation of a cemetery or burial goods business; and

any other reasonable information that the Director determines is necessary to carry out this title.

be on the form that the Director requires;

contain a statement by a certified public accountant retained by the business, detailing the assets and liabilities of the cemetery for the last fiscal year; and

contain a review by the certified public accountant as to the financial stability of the cemetery.

complete a form that the Director requires; and

satisfy criteria that the Director adopts under subsection (e) of this section.

complete a form that the Director requires; and

satisfy criteria that the Director adopts under subsection (e) of this section.

The Director shall make a determination of the financial stability of each applicant based on criteria that the Director adopts for each class of business.

The Director shall adopt separate criteria to determine the financial stability of applicants that are new businesses or existing businesses.

The Director shall require that all financial statements of a new cemetery submitted under subsection (d) of this section be prepared by a certified public accountant retained by the business.

may not be transferred from one individual to another; but

may be transferred for the same individual from one cemetery to another.

At least 90 days before a registration or permit expires, the Director shall mail or electronically transmit to the registrant or permit holder:

If an electronic transmission under paragraph (1) of this subsection is returned to the Director as undeliverable, the Director shall mail to the registrant or permit holder, at the last known address of the registrant or permit holder, the materials required under paragraph (1) of this subsection within 10 business days of the date the Director received the notice that the electronic transmission was undeliverable.

is otherwise entitled to be registered or to receive a permit;

meets the qualifications set forth for an original registration or permit;

pays the renewal fee set by the Director; and

submits to the Director a renewal application on the form that the Director provides.

fraudulently or deceptively obtains or attempts to obtain a registration or permit;

fraudulently or deceptively uses a registration or permit;

under the laws of the United States or of any state, is convicted of a:

fails to provide or misrepresents any information required to be provided under this title;

violates this title;

violates the code of ethics adopted by the Director;

violates a regulation adopted under this title;

fails to provide reasonable and adequate supervision of the operation of the cemetery or the provision of burial goods by agents, employees, officers, directors, or partners affiliated with a cemetery or burial goods business;

refuses to allow an inspection required by this title;

fails to comply with an order of the Director;

fails to comply with any terms of settlement under a binding arbitration agreement;

is found guilty by a court in this State of violating an unfair, abusive, or deceptive trade practices provision under Title 13 of the Commercial Law Article; or

fails to comply with § 5–513 of the Health – General Article.

If a person is charged with a violation of this title that could result in suspension or revocation of a registration or permit, the Director may seek an immediate restraining order in a circuit court in this State to prohibit the person from engaging in the operation of any cemetery or burial goods business.

The restraining order is in effect until:

appoint a receiver or trustee to take charge of the assets and operate the business of the person in the event that the registration or permit is suspended or revoked; and

take any actions as are appropriate to protect the public interest.

not to exceed $5,000 for each violation of this title or an order of the Director under this title; and

not to exceed $500 for each day a violation continues past the time set for its correction.

the seriousness of the violation;

the harm caused by the violation;

the good faith efforts of the person; and

any history of previous violations by the person.

the nature of the crime;

the relationship of the crime to the activities authorized by this title;

with respect to a felony, the relevance of the conviction to the fitness and qualifications of the applicant, registrant, or permit holder, or agent, employee, officer, director, or partner to operate a cemetery or provide burial goods;

the length of time since the conviction; and

the behavior and activities of the applicant, registrant, or permit holder, or any agent, employee, officer, director, or partner before and after the conviction.

be in writing;

state specifically the facts on which the complaint is based; and

be made under oath by the person who submits the complaint.

The Director or the Director’s designee shall review each complaint and shall attempt to negotiate a settlement of the complaint between the complainant and the registrant, permit holder, or any other person subject to the registration or permit provisions of this title.

Notwithstanding § 5–102 of this title, the Director or the Director’s designee may receive and attempt to negotiate a settlement to resolve complaints concerning persons required to file statements under § 5–405 of this title and in connection with the operation of a cemetery or the sale of preneed goods.

The Director may not take any actions described in subsection (d)(1) and (2) of this section for complaints involving persons exempt under § 5–102 of this title.

at the request of either party, refer the complaint to the Office of the Attorney General or the Office of Administrative Hearings for binding arbitration, if both parties agree to binding arbitration;

initiate an investigation; or

dismiss the complaint.

If, after investigation, the Director determines that there is not a reasonable basis to believe that there are grounds for disciplinary action, the Director shall dismiss the complaint.

Any party aggrieved by the dismissal may take a judicial appeal in accordance with the provisions of Title 10 of the State Government Article.

The Director shall adopt guidelines that establish a schedule for the prompt and timely processing and resolution of each complaint made to the Director.

Beginning December 31, 1998, and on or before December 31 of each year thereafter, the Director shall report, subject to § 2–1257 of the State Government Article, to the General Assembly on:

The Director shall provide a copy of the annual report required under paragraph (2) of this subsection to each member of the Advisory Council.

Except as otherwise provided in § 10-226 of the State Government Article, before the Director takes a final action under this subtitle, the Director shall provide the person against whom the action is contemplated notice of the Director’s proposed action and the opportunity to request a hearing before the Director.

A person shall file a request for a hearing not later than 30 days after the date the notice provided under paragraph (1) of this subsection is mailed.

The Director may issue subpoenas in connection with a proceeding under this section.

If a person fails to comply with a subpoena issued under this subsection, on petition of the Director, a circuit court may compel compliance with the subpoena.

a corporation as an officer, director, employee, or agent of the corporation;

a limited liability company as a member, employee, or agent of the limited liability company; or

a partnership as a partner, employee, or agent of the partnership.

A registered cemeterian who engages in the operation of a cemetery through a corporation, limited liability company, or partnership under this title is subject to all of the provisions of this title that relate to engaging in the operation of a cemetery.

A registered seller who engages in the operation of a burial goods business through a corporation, limited liability company, or partnership under this title is subject to all of the provisions of this title that relate to providing burial goods services.

A corporation, limited liability company, or partnership that engages in the operation of a cemetery or burial goods business under this title is not, by its compliance with this title, relieved of any responsibility that the corporation, limited liability company, or partnership may have for an act or an omission by its officer, director, member, partner, employee, or agent.

An individual who engages in the operation of a cemetery or burial goods business through a corporation, limited liability company, or partnership is not, by reason of the individual’s employment or other relationship with the corporation, limited liability company, or partnership, relieved of any individual responsibility that the individual may have regarding that practice.

more than 100 acres in the State; or

any land within the limits of a municipal corporation in the State, unless authorized to do so by the municipal corporation.

In the Spauldings Election District of Prince George’s County, a person may buy, hold, or use, for burial, up to 125 acres in 1 tract.

In the Laurel Election District of Prince George’s County, a person that operated a cemetery on or before June 1, 1955, may buy, hold, or use, for burial, up to 200 acres in 1 tract.

In the Kent Election District of Prince George’s County, a person may buy, hold, or use, for burial, up to 150 acres in 1 tract.

a public road in use when the cemetery is formed; or

the site of a future public road that, when the cemetery is formed, is shown on a plat made by authority of the State, a county, or a municipal corporation.

considered property;

subject to attachment or execution for debt;

subject to the insolvency laws of the State;

to be inventoried in the estate of the owner; or

subject to inheritance taxes.

considered personal property;

subject to attachment or execution for debt;

subject to the insolvency laws of the State;

to be inventoried in the estate of the owner; and

subject to inheritance taxes.

may be disposed of during the lifetime of the owner of the burial lot or crypt with the consent of the cemetery owner;

may be disposed of by specific reference in the will of the owner; and

otherwise passes to the heirs of the owner, as defined in § 1-101 of the Estates and Trusts Article.

The owner of a burial lot is responsible for the care of a memorial or monument placed on the burial lot.

Nothing in this section may be construed to prohibit a party responsible for a cemetery from maintaining or repairing a damaged memorial or monument.

In this section the following words have the meanings indicated.

“Cemetery owner” means:

“Person in interest” has the meaning stated in § 14–121 of the Real Property Article.

except as otherwise provided in subsections (g) and (h) of this section, a religious organization that is a cemetery owner; or

property acquired by the Department of Transportation that is necessary for a public project in accordance with State or federal law.

A registered cemeterian or permit holder may not sell or transfer a cemetery, in whole or in part, to another person for a use other than as a cemetery without the approval of the Director.

The owner of a cemetery that is exempt from the registration and permitting requirements under § 5–102 of this title may not sell or transfer the cemetery, in whole or in part, to another person without the approval of the Director.

require a cemetery owner to submit to the Director:

review and consider any public comments regarding the cemetery in accordance with subsection (i) of this section.

To request approval to sell or transfer a cemetery under subsection (c) of this section, a cemetery owner shall submit an application to the Director on the form that the Director provides.

In addition to any other information required on an application form, the form shall require:

A cemetery owner shall, in consultation with the Director, develop a preservation plan for a cemetery that the cemetery owner intends to sell or transfer.

In developing the preservation plan under paragraph (1) of this subsection, the cemetery owner shall comply with subsection (g) of this section.

any descendent or descendent community organization of an individual interred in the cemetery;

any individual or family who has purchased an unused plot in the cemetery; and

any person that has worked to maintain the abandoned cemetery.

Before a cemetery owner, including a religious organization that is a cemetery owner, may sell or transfer a cemetery under this section, the cemetery owner shall provide public notice of the cemetery owner’s intent to sell or transfer the cemetery by:

A public notice required under paragraph (1) of this subsection shall include:

whether the cemetery owner has considered the concerns of the descendant community, including:

whether the cemetery owner received other equivalent offers for purchase of the cemetery that may be less disruptive to the cemetery.

the cemetery owner satisfies all the requirements of this section; and

the Director determines that it is in the interest of all the parties to sell or transfer the cemetery or part of the cemetery.

An action may be brought in accordance with the Maryland Rules and a court may pass judgment regarding the sale of a burial ground for another purpose if any party disputes the Director’s decision under subsection (j) of this section.

An action under paragraph (1) of this subsection may be brought by:

The owner of the property that includes the cemetery has the burden of proof in any proceeding regarding the disposition of the property and the cemetery.

allow the proposed sale, transfer, or alternate use of all or part of the cemetery;

prohibit the proposed sale, transfer, or alternate use of all or part of the cemetery; or

order an alternative disposition of the cemetery.

pass a judgment for the sale of the cemetery on the terms and notice the court sets;

order that as much of the proceeds of the sale as necessary be used to pay the costs of removing any human remains in the cemetery, buying burial lots in another cemetery, and reburying the remains; and

distribute the remaining proceeds of the sale among the parties according to their interests.

the owners of the cemetery; and

the holders of burial rights in the cemetery.

order a negotiation between the owner of the cemetery and the person that wishes to acquire the cemetery.

the ground has been dedicated and used for burial;

burial lots have been sold in the burial ground and deeds executed or other written instruments issued to buyers of the lots without provision being made for perpetual care of the lots; and

more than 75% of the area of the burial ground:

a person with a property right in the burial ground; or

a governmental unit with an interest in ending the conditions that are harmful to the public health, safety, or welfare.

may pass a judgment for the sale of the entire burial ground on the terms and notice the court sets; and

may appoint a trustee to sell the burial ground.

first, to pay the expenses of removing any human remains, that, with reasonable care, can be definitely located in the burial ground, buying burial lots in another burial ground, and reburying the remains;

second, to pay expenses of removing any markers that are in good condition from the old lots and relocating the markers on new lots;

third, to pay the expenses of ending conditions that are harmful to the public health, safety, or welfare, unless the contract of sale of the burial ground provides for abatement of those conditions within a reasonable period of time after the sale is completed;

fourth, to pay the costs of necessary legal proceedings, including court costs, trustee’s commissions, and legal fees;

fifth, to pay in full any taxes; and

finally, to pay the balance of the proceeds to the person who, immediately before the sale, had record title to the burial ground in its entirety according to the land records of Baltimore City.

the claims of the owners of the burial ground;

the claims of the holders of burial lots; and

the intended or actual use or dedication of the land in the burial ground for burial.

legal ownership cannot be determined;

the person with legal responsibility for operation and maintenance of the cemetery cannot be determined;

the entity that operated the cemetery has ceased to operate; or

the real property on which the cemetery is located has been condemned.

The State, a county, or a municipality may acquire an abandoned cemetery, including ownership of any unoccupied lots or burial sites, for the purpose of transferring ownership of the abandoned cemetery to a descendant community organization, veterans organization, or nonprofit organization.

A descendent community organization, veterans organization, or nonprofit organization that agrees to the transfer of title of a cemetery under paragraph (1) of this subsection shall agree to properly maintain, preserve, and protect the cemetery.

A governmental unit that acquires property on which an abandoned cemetery is located under subsection (b)(1) of this section shall make timely and reasonable efforts after acquisition to contact descendants of the deceased persons interred in the abandoned cemetery in order to identify descendants, a descendant community organization, veterans organization, or nonprofit organization to which the property may be transferred.

has less than 1 acre available for burial; or

is owned and operated by:

the appointment of a successor trustee or cotrustee;

deposits into the fund after July 1, 1973; and

the withdrawal from the fund of income on deposits made after July 1, 1973.

that is available for burial;

where roads, paths, or buildings have been laid out or built; or

where burial lots have been outlined on a plat or in a record or sales brochure.

Each sole proprietor registered cemeterian, permit holder, or any other person subject to the registration or permit provisions of this title who sells or offers to sell to the public a burial lot or burial right in a cemetery as to which perpetual care is stated or implied shall have a perpetual care trust fund.

A separate perpetual care trust fund shall be established for each cemetery to which this section applies.

On the general price list, contract of sale of burial space, and any conveyance documents, all cemeteries subject to the provisions of this subtitle shall state in writing the following using 12 point or larger type font:

A cemetery created in the State after October 1, 2001, that is not exempt under § 5–602 of this subtitle shall be required to establish a perpetual care trust fund.

$10,000, if the developed land area of the cemetery is 10 acres or less and the cemetery is a nonprofit cemetery which does not sell burial goods;

$25,000, if the developed land area of the cemetery is more than 10 acres and the cemetery is a nonprofit cemetery which does not sell burial goods;

$25,000, if the developed land area of the cemetery is 10 acres or less and the cemetery is a for–profit cemetery or a nonprofit cemetery which sells burial goods; or

$50,000, if the developed land area of the cemetery is more than 10 acres and the cemetery is a for–profit cemetery or a nonprofit cemetery which sells burial goods.

The deposits required by this subsection are in addition to the deposits required by subsection (c) of this section.

Except as provided in paragraph (4) of this subsection, within 30 days after the end of the month when the buyer of a right of interment in a burial lot, above–ground crypt, or niche makes a final payment, the registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle shall pay in cash to the trustee for deposit in the perpetual care trust fund:

The amount of deposit to the perpetual care trust fund shall be deducted from the proceeds of the listed selling price of the right of interment in a burial lot, above–ground crypt, or niche, and may not be charged as an add–on to the purchaser.

This subsection does not apply to the sale of a second right of interment or the resale of a right of interment in a burial lot, above–ground crypt, or niche for which the cemetery already has paid into the perpetual care trust fund the deposit required by this subsection.

shall be used only for the perpetual care of the cemetery, including:

may not be used to care for memorials or monuments; and

may not be used by the owner of a cemetery for any purpose not described in item (1) of this subsection.

In this subsection, “net income” includes interest and dividends.

A cemetery that is subject to this section may select as the method of distribution from the perpetual care trust fund either:

If a cemetery that is subject to this section selects the method of distribution described in paragraph (2)(ii) of this subsection, the trustee:

The Director may limit or prohibit a distribution made under paragraph (2)(ii) of this subsection if the Director believes that:

The perpetual care trust fund authorized by this subsection shall be a single purpose trust fund.

In the event of the bankruptcy or insolvency of, or assignment for the benefit of creditors by, or an adverse judgment against the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle, the perpetual care trust funds may not be made available to any creditor as assets of the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle or as payment for any expenses of any bankruptcy or similar proceedings, but shall be retained intact to provide for the future maintenance of the cemetery.

The perpetual care trust fund is not subject to judgment, execution, garnishment, attachment, or other seizure by process in bankruptcy or otherwise, or to sale, pledge, mortgage, or other alienation and is not assignable.

a national banking association;

a bank, as defined in the Maryland Uniform Fiduciaries Act;

a savings bank insured by a unit of the federal government;

a savings and loan association insured by a unit of the federal government; or

a person who annually provides, with the trust report, the proof of a fidelity bond that meets the requirements of subsection (b) of this section from a recognized bonding institution authorized to do business in the State in an amount equal to the trust fund.

for the benefit of the trust account of the cemetery or its burial space owners or both;

conditioned such that the applicant shall comply with all Maryland laws and regulations relating to trust accounts; and

subject to the approval of the Director.

purchase an interest in any contract or agreement to which the registrant, permit holder, or any other person subject to the trust requirements of this subtitle, or any entity owned or under the control of a registrant, permit holder, or any other person subject to the trust requirements of this subtitle, or a spouse, child, parent, or sibling of a registrant or any other person subject to the trust requirements of this subtitle is a party; or

make any loan or direct or indirect investment of any kind:

shall conform to this subtitle; and

may include provisions about:

A trust agreement shall be irrevocable.

However, a trust agreement may:

Each sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle shall keep detailed records of all sales of burial lots or burial rights in a cemetery and money received.

The records of each sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle and of each trustee appointed by the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle are subject to examination by:

Each sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle shall submit a report to the Director within 150 days after the close of each calendar or other fiscal year chosen by the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle.

The report shall:

If the Director determines, after a review of the report and annual summary statement of assets required by this subsection, that additional documentation is required, a sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle shall provide the additional documentation to the Director.

A sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle who stops selling burial lots or burial rights in a cemetery as to which perpetual care is stated or implied shall notify the Director in the required report for the year in which sales stop.

The Director may require a sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle to correct any underfunding, including interest, due to the perpetual care trust fund.

to administer subsection (b) of this section; and

for determining whether registered cemeterians, permit holders, or any other person subject to the trust requirements of this subtitle are complying with this subtitle.

the Attorney General for civil enforcement; or

the appropriate State’s Attorney for criminal prosecution.

injunctive or other equitable relief;

imposition of a civil penalty not exceeding $5,000; or

both.

for a first violation, a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both;

for a second violation, a fine not exceeding $10,000 or imprisonment not exceeding 2 years or both; and

for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.

for a first violation, a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both;

for a second violation, a fine not exceeding $10,000 or imprisonment not exceeding 2 years or both; and

for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.

“Burial space” means land or space in a structure used or to be used for burial.

“Burial space” includes a burial right in the land or space.

“Preneed services” means services that are sold:

“Preneed services” includes opening and closing a grave.

the sale of burial space;

a preneed contract made by an individual in connection with practicing funeral direction or practicing mortuary science, as those practices are defined in and regulated by the Health Occupations Article; or

the preneed sale of burial goods or services by a private family cemetery that does not conduct public sales of burial goods or services.

the law concerning burial; or

the rules of the cemetery concerning the quality and kind of goods or services that may be used in connection with burial in the cemetery.

A preneed burial contract made in accordance with § 5-704 of this subtitle may be funded by a life insurance policy or an annuity contract if:

A preneed burial contract that is funded by a life insurance policy or an annuity contract shall terminate if the assignment of benefits to the owner or operator of a cemetery is revoked by the owner of the life insurance policy or annuity contract.

the name of the buyer;

the name of the seller;

the name of each individual, other than the buyer, as to whom the preneed goods or preneed services are to be furnished;

the name of the pet, if applicable;

a description of the preneed goods or preneed services; and

the amount of the buyer’s financial obligation.

A preneed burial contract shall be dated and executed in duplicate by the buyer and seller.

The seller shall give the buyer a duplicate original of the preneed burial contract.

A preneed burial contract may provide for delivery of identified preneed goods by providing for the seller to:

If a preneed burial contract does not provide for the manner of delivery of preneed goods, compliance with paragraph (1)(i) or (ii) of this subsection is delivery in accordance with this subtitle.

Except as otherwise provided in this subsection, a preneed burial contract may not provide for interest or a finance charge.

A cemetery that makes a preneed burial contract may impose interest or a finance charge on preneed goods delivered before death or preneed services performed before death.

If a cemetery imposes interest or a finance charge as permitted in paragraph (2) of this subsection, the interest or finance charge shall be at a fixed rate or sum not greater than allowed by the provisions of Title 12 of the Commercial Law Article.

A registered cemeterian or permit holder may sell a preneed burial contract to a commercial lending institution at the financing terms in the contract if the preneed burial contract signed by the original buyer of the preneed goods or preneed services contains the following language in 12-point or larger type:

Except as provided in subsection (b) of this section, a seller shall put in trust the second 50% of the total preneed burial contract price as the seller receives payments from the buyer.

Within 30 days after receipt of the last payment, the seller shall deposit an additional amount to make the balance in the trust account equal to 55% of the total contract price.

a preneed burial contract under which all preneed goods and preneed services, other than dates, scrolls, and other additions that represent not more than 10% of the total contract price, must be delivered or performed within 120 days after receipt of 50% of the total contract price; or

money that a seller receives for preneed goods or preneed services to be delivered or performed within 120 days after receipt of any payment on account of the sale, if the buyer’s obligation for these preneed goods or preneed services is separately itemized.

titled “preneed trust account”; and

established by the seller in the seller’s name.

a national banking association, as defined in the Financial Institutions Article;

a banking institution, as defined in the Financial Institutions Article;

any other financial institution allowed by law to engage in the trust business; or

a person who provides a fidelity bond from a recognized bonding institution in an amount equal to the trust fund and inuring to the benefit of the trust account of the cemetery or burial goods business, or the preneed buyers, or both.

commingle money from 2 or more preneed burial contracts; and

establish more than 1 trust account.

A trust account established under this subtitle shall be a single purpose trust.

Money in the trust account is not available to a creditor as an asset of the seller.

2 officers of a corporate seller; or

at least 2 individuals authorized to withdraw money for an unincorporated seller.

the total of specific funds deposited from all preneed burial contracts of a seller commingled in a single fund; and

any income derived from investing the money in the fund.

Except as otherwise provided in this subtitle, a trustee appointed under this subtitle is subject to the law that is generally applicable to trustees.

If a trustee appointed under this subtitle is not located in the State, the agreement between the seller and the trustee expressly shall incorporate this subtitle.

may rely on all certifications made under or required by this subtitle; and

is not liable to any person for that reliance.

Except as otherwise provided in this subtitle, a trustee may invest money of a trust account in any security that is a lawful investment for a fiduciary, including a time deposit or certificate of deposit issued by the trustee.

Except as otherwise provided in this subtitle, to ensure that money in the trust account is adequate, the trust income, including any realized capital gains, shall:

purchase an interest in any contract or agreement to which the registrant, the permit holder, or any other person subject to the trust requirements of this subtitle, or any entity owned or under the control of a registrant, a permit holder, or any other person subject to the trust requirements of this subtitle, or a spouse, child, parent, or sibling of a registrant or any other person subject to the trust requirements of this subtitle is a party; or

make any loan or direct or indirect investment of any kind:

A seller, on written notice to the trustee and in accordance with the agreement between them, may transfer the seller’s account to another trustee.

A trustee, on written notice to the seller and in accordance with the agreement between them, may transfer the seller’s account to another trustee.

the seller shall certify to the trustee:

the trustee shall then pay to the seller the specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.

In a seller’s records, the seller may itemize preneed goods or preneed services to which the trust requirements of this subtitle apply and the consideration paid or to be paid for each item.

If a seller itemizes in accordance with paragraph (1) of this subsection, on performance of that part of a preneed burial contract identified for itemized preneed goods or preneed services:

If a preneed burial contract provides, for 2 or more individuals or pets, preneed goods or preneed services to which the trust requirements of this subtitle apply, a seller may designate in the seller’s records the consideration paid for each individual or pet.

On performance of that part of the preneed burial contract identified to a particular individual:

A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer:

In that event:

Notwithstanding subsection (a) of this section, by written notice, a buyer may cancel the purchase of a casket or casket vault under a preneed burial contract at any time prior to the time the buyer needs the casket or casket vault for burial.

In that event:

the seller shall certify to the trustee:

the trustee shall then pay:

the seller shall certify to the trustee:

the trustee shall then pay to the seller those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.

Each seller shall keep detailed records of all preneed burial contracts and specific funds.

The records of each seller and of each trustee appointed by the seller are subject to examination by:

Each seller subject to the trust requirements of this subtitle shall submit a report to the Director within 150 days after the close of each calendar or other fiscal year chosen by the seller.

The report shall:

If the Director determines, after a review of the report and annual summary statement of assets required by this subsection, that additional documentation is required, a seller subject to the trust requirements of this subtitle shall provide the additional documentation to the Director.

specific prices for:

general price ranges for burial space or preneed goods.

all goods and services that are reasonably expected to be required at the time of need that are not included in the preneed burial contract;

the buyer’s cancellation and refund rights under § 5–709 of this subtitle;

the person responsible for installation of the goods sold and any warranties for the goods sold; and

if the preneed contract provides for goods or services to be delivered or performed before death:

to administer this section; and

for determining whether sellers are complying with this subtitle.

the Attorney General for civil enforcement; or

the appropriate State’s Attorney for criminal prosecution.

injunctive or other equitable relief;

imposition of a civil penalty not exceeding $5,000; or

both.

Except as otherwise provided in subsection (c) of this section, a person who violates this section is guilty of a misdemeanor and, on conviction, is subject to:

Except as otherwise provided in subsection (c) of this section, if a corporation violates this section, each officer responsible for the violation is guilty of a misdemeanor and, on conviction, is subject to:

the itemized cost for each service performed under the contract;

a list of services incidental to burial that are not covered by the contract;

a statement regarding the cemetery’s policy on the use of independent monument companies; and

the name, address, and telephone number for the State Office of Cemetery Oversight.

The disclosures required under subsection (a)(1), (2), and (3) of this section shall be conspicuously incorporated in the contract in 12–point type.

The disclosure required under subsection (a)(4) of this section shall be on a form separate from the contract and must be separately signed and dated by the consumer.

not later than the first scheduled face–to–face contact with the purchaser or party representing the purchaser; or

if no face–to–face contact occurs, at the time of the execution of the contract by the purchaser or party representing the purchaser.

specific prices for:

general price ranges for burial space or burial goods.

a cemetery corporation may not allow burial or establish or maintain a cemetery; and

a person may not participate in any way in a burial in a cemetery of a cemetery corporation.

In this section the following words have the meanings indicated.

“Abandoned cemetery” means a cemetery for which:

“Fund” means the Abandoned and Neglected Cemeteries Fund.

“Neglected cemetery” means a cemetery for which: