<section article="gbr" article_name="Business Regulation" number="5-101" title_number="5" title_name="Cemeteries" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorizing agent” has the meaning stated in § 5–508 of the Health – General Article.</text> </level> <level label="c"> <level label="1"> <text>“Burial goods” means goods that are used in connection with burial.</text> </level> <level label="2"> <text>“Burial goods” includes:</text> <level label="i"> <text>a casket;</text> </level> <level label="ii"> <text>a grave liner;</text> </level> <level label="iii"> <text>a memorial;</text> </level> <level label="iv"> <text>a monument;</text> </level> <level label="v"> <text>a scroll;</text> </level> <level label="vi"> <text>an urn;</text> </level> <level label="vii"> <text>a vase; and</text> </level> <level label="viii"> <text>a vault.</text> </level> </level> </level> <level label="d"> <text>“Burial goods business” means a business that provides burial goods.</text> </level> <level label="e"> <level label="1"> <text>“Cemetery” means land used or to be used for interment.</text> </level> <level label="2"> <text>“Cemetery” includes a structure used or to be used for interment.</text> </level> </level> <level label="f"> <text>“Cremation” means the disposition of a dead human body by means of incineration.</text> </level> <level label="g"> <text>“Crematory” means a building, portion of a building, or structure that houses the necessary appliances and facilities for cremation or alkaline hydrolysis.</text> </level> <level label="h"> <text>“Cultural affiliation” has the meaning stated in § 14–121 of the Real Property Article.</text> </level> <level label="i"> <text>“Descendant community organization” means an organization that has members who have ancestors who are interred at a cemetery or who have a cultural affiliation with the deceased persons interred at a cemetery.</text> </level> <level label="j"> <text>“Director” means the Director of the Office of Cemetery Oversight.</text> </level> <level label="k"> <text>“Engage in the operation of a cemetery” means owning, controlling, or managing a cemetery, including performing activities necessary for:</text> <level label="1"> <text>the establishment, improvement, care, preservation, or embellishment of a cemetery;</text> </level> <level label="2"> <text>interment; and</text> </level> <level label="3"> <text>the providing of burial space or burial goods.</text> </level> </level> <level label="l"> <text>“Funeral establishment” means a building, structure, or premises from which the business of funeral directing or embalming is conducted.</text> </level> <level label="m"> <level label="1"> <text>“Human remains” means:</text> <level label="i"> <text>the body of a deceased person; or</text> </level> <level label="ii"> <text>a part of a body or limb that has been removed from a living person.</text> </level> </level> <level label="2"> <text>“Human remains” includes the body or part of a body or limb in any state of decomposition.</text> </level> <level label="3"> <text>“Human remains” does not include soil remains produced after the completion of natural organic reduction.</text> </level> </level> <level label="n"> <text>“Interment” means all final disposition of human remains or pet remains, including:</text> <level label="1"> <text>earth burial;</text> </level> <level label="2"> <text>mausoleum entombment; and</text> </level> <level label="3"> <text>niche or columbarium inurnment.</text> </level> </level> <level label="o"> <text>“Natural organic reduction” means the contained accelerated conversion of human remains into soil.</text> </level> <level label="p"> <text>“Office” means the Office of Cemetery Oversight.</text> </level> <level label="q"> <text>“Permit” means a permit issued by the Director to allow a partnership, limited liability company, or corporation to operate a business through which a registrant may:</text> <level label="1"> <text>engage in the operation of a cemetery; or</text> </level> <level label="2"> <text>provide burial goods.</text> </level> </level> <level label="r"> <level label="1"> <text>“Pet remains” means the body of a deceased animal that was kept as a pet.</text> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="s"> <level label="1"> <text>“Preneed goods” means burial goods that are sold before the buyer’s death.</text> </level> <level label="2"> <text>“Preneed goods” does not include burial space.</text> </level> </level> <level label="t"> <text>“Provide burial goods” means a retail transaction:</text> <level label="1"> <text>to erect, service, or inscribe burial memorials; or</text> </level> <level label="2"> <text>to sell burial goods.</text> </level> </level> <level label="u"> <text>“Registered cemeterian” means an individual registered to operate a cemetery as a sole proprietor or on behalf of a sole proprietor or of a permit holder.</text> </level> <level label="v"> <text>“Registered seller” means an individual registered to provide burial goods as a sole proprietor or on behalf of a sole proprietor or of a permit holder.</text> </level> <level label="w"> <text>“Registration” means a registration issued by the Director authorizing an individual to operate a cemetery or to provide burial goods.</text> </level> <level label="x"> <text>“Responsible party” means a sole proprietor or the individual designated by a partnership, limited liability company, or corporation to be responsible for the operations of a cemetery or burial goods business.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-102" title_number="5" title_name="Cemeteries" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>The registration and permitting provisions of this title do not apply to:</text> <level label="1"> <text>a person that owns and operates a bona fide religious–nonprofit cemetery in this State;</text> </level> <level label="2"> <text>a cemetery owned by a nonprofit organization created before 1900 by an act of the General Assembly;</text> </level> <level label="3"> <text>a county, city, or municipal corporation that owns and operates a cemetery in the State;</text> </level> <level label="4"> <text>a veterans’ cemetery operated by the State; or</text> </level> <level label="5"> <text>a private family cemetery that does not conduct public sales.</text> </level> </level> <level label="b"> <text>This title does not apply to:</text> <level label="1"> <text>the operation of a funeral establishment, including the sale of burial goods in the ordinary course of the funeral establishment’s business;</text> </level> <level label="2"> <text>the operation or ownership of a crematory, incinerator, or reduction facility;</text> </level> <level label="3"> <text>a licensed funeral director acting within the scope of the funeral director’s license; or</text> </level> <level label="4"> <text>a mortician acting within the scope of the mortician’s license.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-201" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <level label="a"> <text>There is an Office of Cemetery Oversight in the Department.</text> </level> <level label="b"> <text>The Office exercises its rights, powers, and duties subject to the authority of the Secretary.</text> </level> <level label="c"> <level label="1"> <text>The Secretary shall appoint an Advisory Council on Cemetery Operations.</text> </level> <level label="2"> <text>The Advisory Council consists of 11 members.</text> </level> <level label="3"> <text>Of the 11 members of the Advisory Council:</text> <level label="i"> <text>three shall be registered cemeterians representing the for–profit cemetery industry;</text> </level> <level label="ii"> <text>one shall be a registered cemeterian representing a nonprofit cemetery;</text> </level> <level label="iii"> <text>one shall be a registered seller from a monument company;</text> </level> <level label="iv"> <text>one shall be a representative from a religious cemetery; and</text> </level> <level label="v"> <text>five shall be consumer members.</text> </level> </level> <level label="4"> <text>The Advisory Council shall be convened at least four times a year to give advice to the Secretary and the Director.</text> </level> <level label="5"> <text>In addition to the required meetings, the Advisory Council may meet as necessary.</text> </level> </level> <level label="d"> <text>The term of a member is 3 years.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-202" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <level label="a"> <level label="1"> <text>The Secretary shall appoint a Director of the Office of Cemetery Oversight with the approval of the Governor.</text> </level> <level label="2"> <text>The Director serves at the pleasure of the Secretary.</text> </level> </level> <level label="b"> <text>The Director shall devote full time to the duties of the Office.</text> </level> <level label="c"> <text>The Director is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>The Director shall:</text> <level label="1"> <text>administer and operate the Office; and</text> </level> <level label="2"> <text>be responsible to the Secretary.</text> </level> </level> <level label="e"> <text>In addition to any requirements of the State Ethics Law, the Director may not:</text> <level label="1"> <text>hold any position or engage in another business that interferes or conflicts with the position of the Director;</text> </level> <level label="2"> <text>be a registered cemeterian or a registered seller;</text> </level> <level label="3"> <text>engage in any act for which a registration is required under this title; or</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-203" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <text>The Director may employ a staff in accordance with the State budget.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-204" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <level label="a"> <text>With the advice of the Advisory Council and after consultation with representatives of the cemetery industry, the Director shall adopt:</text> <level label="1"> <text>rules and regulations to carry out this title; and</text> </level> <level label="2"> <text>a code of ethics for engaging in the operation of a cemetery or providing burial goods.</text> </level> </level> <level label="b"> <text>On receipt of a written complaint, or at the discretion of the Director, the Director or the Director’s designee may conduct an investigation and an inspection of the records and site of a registered cemeterian, registered seller, permit holder, or any other person subject to the registration or permit provisions of this title.</text> </level> <level label="c"> <text>The Director may hold hearings on any matter covered by this title.</text> </level> <level label="d"> <text>To enforce this title, the Director may:</text> <level label="1"> <text>administer oaths;</text> </level> <level label="2"> <text>examine witnesses; and</text> </level> <level label="3"> <text>receive evidence.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <level label="1"> <text>The Director may sue in the name of the State to enforce any provision of this title by injunction.</text> </level> <level label="2"> <text>In seeking an injunction under this subsection, the Director is not required to:</text> <level label="i"> <text>post bond; or</text> </level> <level label="ii"> <text>allege or prove either that:</text> <level label="1"> <text>an adequate remedy at law does not exist; or</text> </level> <level label="2"> <text>substantial or irreparable damage would result from the continued violation of the provision.</text> </level> </level> </level> <level label="3"> <text>The Director or staff may not be held personally liable for any action taken under this title in good faith and with reasonable grounds.</text> </level> </level> <level label="g"> <text>The Director may issue a cease and desist order, if the Director finds a violation of this title.</text> </level> <level label="h"> <text>The Director may refer to the Office of the Attorney General:</text> <level label="1"> <text>a violation of this title for enforcement; and</text> </level> <level label="2"> <text>an alleged unfair or deceptive trade practice under Title 13 of the Commercial Law Article.</text> </level> </level> <level label="i"> <level label="1"> <text>For each fiscal year, the Director shall maintain a list of:</text> <level label="i"> <text>all registrants and permit holders;</text> </level> <level label="ii"> <text>all for–profit cemeteries and nonreligious–nonprofit cemeteries associated with a registrant or permit holder; and</text> </level> <level label="iii"> <text>all bona fide religious–nonprofit cemeteries, veterans’ cemeteries, and local government–owned cemeteries that have filed a statement or report required under §§ 5–405, 5–606, and 5–710 of this title.</text> </level> </level> <level label="2"> <text>All lists maintained by the Director shall be open to inspection by any person.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>the total number of registrants and permit holders; and</text> </level> <level label="ii"> <text>the number of registrants and permit holders for each licensing category.</text> </level> </level> </level> <level label="j"> <level label="1"> <text>The Director shall distribute a copy of the Maryland Cemetery Act, code of ethics, and applicable regulations to each applicant for registration or permit.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="k"> <text>In conjunction with the State Board of Morticians and the Division of Consumer Protection of the Office of the Attorney General, the Director shall publish a consumer information pamphlet that describes:</text> <level label="1"> <text>the rights of consumers in the purchase of funeral, cemetery, crematory goods and services, and natural organic reduction; and</text> </level> <level label="2"> <text>any other information that the Director considers reasonably necessary to aid consumers.</text> </level> </level> <level label="l"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>The Director shall provide a copy of the annual report required under paragraph (3) of this subsection to each member of the Advisory Council.</text> </level> </level> <level label="m"> <text>At the time of appointment of new members and before reappointment of existing members of the Advisory Council, the Director shall deliver to each member the paperwork necessary to disclose any interest or employment held by the member at the time of appointment as required by the Maryland Public Ethics Law.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-204.1" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <text>The Advisory Council shall respond to issues raised by the Director in the annual report required under § 5–204 of this subtitle and § 5–311 of this title and develop a plan to study ongoing issues during the year following the issuance of the report.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-205" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <level label="a"> <text>There is a Cemetery Oversight Fund.</text> </level> <level label="b"> <level label="1"> <text>By regulation, the Director shall establish reasonable fees and a fee schedule for the issuance and renewal of registrations and permits.</text> </level> <level label="2"> <text>In establishing the fees, the Director shall consider:</text> <level label="i"> <text>the size of the business;</text> </level> <level label="ii"> <text>whether the business is for–profit or designated as tax exempt under § 501(c) of the Internal Revenue Code;</text> </level> <level label="iii"> <text>the volume of business conducted; and</text> </level> <level label="iv"> <text>the type of services provided, including the percentage of preneed contracts written.</text> </level> </level> </level> <level label="c"> <text>The fees charged shall be set so as to approximate the direct and indirect cost of maintaining the Office.</text> </level> <level label="d"> <text>The Director shall pay all funds collected under this title to the Comptroller who shall distribute the fees to the Cemetery Oversight Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund shall be used to cover the actual documented direct and indirect costs of fulfilling the statutory and regulatory duties of the Office.</text> </level> <level label="2"> <text>The Fund is a continuing nonlapsing fund, not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>No other State money may be used to support the Fund.</text> </level> </level> <level label="f"> <level label="1"> <text>The Director shall administer the Fund.</text> </level> <level label="2"> <text>Money in the Fund may be expended for any lawful purpose authorized under the provisions of this title.</text> </level> </level> <level label="g"> <text>The Legislative Auditor shall audit the accounts and transactions of the Fund as provided in § 2–1220 of the State Government Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-206" title_number="5" title_name="Cemeteries" subtitle_number="2" subtitle_name="Office of Cemetery Oversight"> <text>A person shall have the immunity from liability described under § 5-720 of the Courts and Judicial Proceedings Article for giving information to the Director or otherwise participating in the activities of the Office.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-301" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <text>An individual shall register with the Office before:</text> <level label="1"> <text>engaging in the operation of a cemetery in this State; or</text> </level> <level label="2"> <text>providing burial goods in this State.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-302" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>In order to register, an applicant shall meet the requirements of this section.</text> </level> <level label="b"> <text>The applicant must be at least 18 years old.</text> </level> <level label="c"> <text>The applicant must be of good character and reputation.</text> </level> <level label="d"> <text>The applicant must be affiliated with a cemetery or burial goods business operated by a registrant or permit holder.</text> </level> <level label="e"> <text>The cemetery or burial goods business with which the applicant is affiliated must be financially stable in accordance with § 5–304 of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-303" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>An applicant shall register by:</text> <level label="1"> <text>submitting to the Director an application on the form that the Director provides; and</text> </level> <level label="2"> <text>paying a nonrefundable application fee set by the Director.</text> </level> </level> <level label="b"> <text>The application shall state:</text> <level label="1"> <text>the name, date of birth, and residential address of the applicant;</text> </level> <level label="2"> <text>the name and fixed address of the affiliated cemetery or burial goods business;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>any other reasonable information that the Director determines is necessary to carry out this title.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-304" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Each applicant designated as the responsible party shall demonstrate the financial stability of the business with which the applicant is affiliated by providing the Director with a financial statement or other reports required under subsection (e) of this section with the application for registration.</text> </level> <level label="b"> <text>If the business is a cemetery that sells burial goods and is an existing business, the financial statement shall:</text> <level label="1"> <text>be on the form that the Director requires;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>contain a review by the certified public accountant as to the financial stability of the cemetery.</text> </level> </level> <level label="c"> <text>If the business is an existing cemetery that does not sell burial goods or an existing burial goods business not affiliated with a cemetery, the applicant shall:</text> <level label="1"> <text>complete a form that the Director requires; and</text> </level> <level label="2"> <text>satisfy criteria that the Director adopts under subsection (e) of this section.</text> </level> </level> <level label="d"> <text>If the business is a new business, the applicant shall:</text> <level label="1"> <text>complete a form that the Director requires; and</text> </level> <level label="2"> <text>satisfy criteria that the Director adopts under subsection (e) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Director shall adopt separate criteria to determine the financial stability of applicants that are new businesses or existing businesses.</text> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-305" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>The Director shall issue a registration to an applicant who meets the requirements of this title.</text> </level> <level label="b"> <text>A registration issued by the Director under this title:</text> <level label="1"> <text>may not be transferred from one individual to another; but</text> </level> <level label="2"> <text>may be transferred for the same individual from one cemetery to another.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-306" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>While a registration is in effect, it authorizes the registrant to engage in the operation of a cemetery or burial goods business.</text> </level> <level label="b"> <text>This title does not limit the right of a person to practice funeral direction or mortuary science if the person is licensed or otherwise authorized under Title 7 of the Health Occupations Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-307" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Unless a registration or permit is renewed as provided in this section, the registration or permit expires on the second anniversary of its effective date.</text> </level> <level label="b"> <level label="1"> <text>At least 90 days before a registration or permit expires, the Director shall mail or electronically transmit to the registrant or permit holder:</text> <level label="i"> <text>a renewal application form; and</text> </level> <level label="ii"> <text>a notice that states:</text> <level label="1"> <text>the date on which the current registration or permit expires; and</text> </level> <level label="2"> <text>the amount of the renewal fee.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>Before a registration or permit expires, the registrant or permit holder periodically may renew it for an additional 2-year term, if the registrant or permit holder:</text> <level label="1"> <text>is otherwise entitled to be registered or to receive a permit;</text> </level> <level label="2"> <text>meets the qualifications set forth for an original registration or permit;</text> </level> <level label="3"> <text>pays the renewal fee set by the Director; and</text> </level> <level label="4"> <text>submits to the Director a renewal application on the form that the Director provides.</text> </level> </level> <level label="d"> <text>The Director shall renew the registration or permit of each registrant or permit holder who meets the requirements of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-308" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <text>Within 1 week after the effective date of the change, the applicant designated as the responsible party or the registered responsible party shall submit to the Director an application form that shows a change in the:</text> <level label="1"> <text>cemetery or burial goods business with which a registrant is affiliated;</text> </level> <level label="2"> <text>individual designated as the responsible party;</text> </level> <level label="3"> <text>employees of the business who engage in the sale of burial space, goods, or services to the public;</text> </level> <level label="4"> <text>officers, directors, members, or agents of the permit holder; or</text> </level> <level label="5"> <text>name or address of the registrant or permit holder.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-309" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <text>Each registrant and permit holder shall display the registration or permit conspicuously at the business address of the registrant or permit holder.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-310" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Subject to the hearing provisions of § 5–312 of this subtitle, the Director may deny a registration or permit to an applicant, reprimand a person subject to the registration or permit provisions of this title, or suspend or revoke a registration or permit if an applicant, registrant, or permit holder, or an agent, employee, officer, director, or partner of the applicant, registrant, or permit holder:</text> <level label="1"> <text>fraudulently or deceptively obtains or attempts to obtain a registration or permit;</text> </level> <level label="2"> <text>fraudulently or deceptively uses a registration or permit;</text> </level> <level label="3"> <text>under the laws of the United States or of any state, is convicted of a:</text> <level label="i"> <text>felony; or</text> </level> <level label="ii"> <text>misdemeanor that is directly related to the fitness and qualifications of the applicant, registrant, or permit holder to own or operate a cemetery or provide burial goods;</text> </level> </level> <level label="4"> <text>fails to provide or misrepresents any information required to be provided under this title;</text> </level> <level label="5"> <text>violates this title;</text> </level> <level label="6"> <text>violates the code of ethics adopted by the Director;</text> </level> <level label="7"> <text>violates a regulation adopted under this title;</text> </level> <level label="8"> <text>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;</text> </level> <level label="9"> <text>refuses to allow an inspection required by this title;</text> </level> <level label="10"> <text>fails to comply with an order of the Director;</text> </level> <level label="11"> <text>fails to comply with any terms of settlement under a binding arbitration agreement;</text> </level> <level label="12"> <text>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</text> </level> <level label="13"> <text>fails to comply with § 5–513 of the Health – General Article.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The restraining order is in effect until:</text> <level label="i"> <text>the court lifts the order; or</text> </level> <level label="ii"> <text>the charges are adjudicated or dismissed.</text> </level> </level> </level> <level label="c"> <text>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 petition a court to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>take any actions as are appropriate to protect the public interest.</text> </level> </level> <level label="d"> <text>Instead of or in addition to reprimanding a person, or suspending or revoking a registration or permit, the Director may impose a civil penalty:</text> <level label="1"> <text>not to exceed $5,000 for each violation of this title or an order of the Director under this title; and</text> </level> <level label="2"> <text>not to exceed $500 for each day a violation continues past the time set for its correction.</text> </level> </level> <level label="e"> <text>To determine the amount of the penalty imposed under this subsection, the Director shall consider:</text> <level label="1"> <text>the seriousness of the violation;</text> </level> <level label="2"> <text>the harm caused by the violation;</text> </level> <level label="3"> <text>the good faith efforts of the person; and</text> </level> <level label="4"> <text>any history of previous violations by the person.</text> </level> </level> <level label="f"> <text>Any civil penalties collected under this section shall be paid into the General Fund of the State.</text> </level> <level label="g"> <text>The Director shall consider the following facts in the granting, denial, renewal, suspension, or revocation of a registration or permit or the reprimand of a registrant or permit holder when an applicant, registrant, or permit holder, or an agent, employee, officer, director, or partner of an applicant, registrant, or permit holder is convicted of a felony or misdemeanor described in subsection (a)(3) of this section:</text> <level label="1"> <text>the nature of the crime;</text> </level> <level label="2"> <text>the relationship of the crime to the activities authorized by this title;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>the length of time since the conviction; and</text> </level> <level label="5"> <text>the behavior and activities of the applicant, registrant, or permit holder, or any agent, employee, officer, director, or partner before and after the conviction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-311" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <text>Subject to the provisions of this section, the Director or the Director’s designee shall commence proceedings on a complaint made by any person to the Director.</text> </level> <level label="b"> <text>A complaint shall:</text> <level label="1"> <text>be in writing;</text> </level> <level label="2"> <text>state specifically the facts on which the complaint is based; and</text> </level> <level label="3"> <text>be made under oath by the person who submits the complaint.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="d"> <text>If the Director or the Director’s designee is unable to negotiate a settlement of the complaint, the Director may:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>initiate an investigation; or</text> </level> <level label="3"> <text>dismiss the complaint.</text> </level> </level> <level label="e"> <text>If, after investigation, the Director determines that there is a reasonable basis to believe that there are grounds for disciplinary action under § 5–310 of this subtitle, the Director shall provide the person against whom the action is contemplated notice and an opportunity for a hearing under § 5–312 of this subtitle.</text> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Any party aggrieved by the dismissal may take a judicial appeal in accordance with the provisions of Title 10 of the State Government Article.</text> </level> </level> <level label="g"> <text>Once a complaint has been referred for binding arbitration, the registrant, permit holder, or any other person subject to the registration or permit provisions of this title shall comply with the terms of the settlement.</text> </level> <level label="h"> <level label="1"> <text>The Director shall adopt guidelines that establish a schedule for the prompt and timely processing and resolution of each complaint made to the Director.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the number of complaints resolved within the schedule adopted under paragraph (1) of this subsection;</text> </level> <level label="ii"> <text>the number of complaints and the number of inquiries received under subsection (c)(2) of this section by the type of registrant, permit holder, or exemption from the registration and permit requirements of this title;</text> </level> <level label="iii"> <text>the number of complaints and the number of inquiries received under subsection (c)(2) of this section by persons subject to, but not in compliance with, the registration and permit requirements of this title;</text> </level> <level label="iv"> <text>the nature of complaints and inquiries received under subsection (c)(2) of this section, including whether complaints are related to the illegal recycling of graves;</text> </level> <level label="v"> <text>the type of purchase, focus of dissatisfaction, and type of resolution for both complaints and inquiries;</text> </level> <level label="vi"> <text>whether complaints reported under item (i) of this paragraph were resolved through negotiation, binding arbitration, or another method; and</text> </level> <level label="vii"> <text>any disciplinary or enforcement actions taken against a registrant, permit holder, or a person subject to, but not in compliance with, the registration and permit requirements of this title.</text> </level> </level> <level label="3"> <text>The Director shall provide a copy of the annual report required under paragraph (2) of this subsection to each member of the Advisory Council.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-312" title_number="5" title_name="Cemeteries" subtitle_number="3" subtitle_name="Registration"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>The Director shall provide notice and conduct the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Director may administer oaths in connection with a proceeding under this section.</text> </level> <level label="d"> <text>The hearing notice provided to the person under subsection (a)(1) of this section shall be sent by certified mail to the last known address of the person at least 10 days before the hearing.</text> </level> <level label="e"> <text>If a hearing is not requested within the time period specified under subsection (a)(2) of this section or if the person fails to appear for the hearing after requesting a hearing, the proposed action of the Director shall be affirmed.</text> </level> <level label="f"> <text>The person may be represented at the hearing by counsel.</text> </level> <level label="g"> <level label="1"> <text>The Director may issue subpoenas in connection with a proceeding under this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="h"> <text>If, after a hearing, the proposed action by the Director is upheld, the appellant shall pay the hearing costs, as specified by the Office in its regulations.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-401" title_number="5" title_name="Cemeteries" subtitle_number="4" subtitle_name="Permits and Statement Filings"> <level label="a"> <text>Subject to the provisions of this section, a registered cemeterian or registered seller may engage in the operation of a cemetery or burial goods business as a sole proprietor or through:</text> <level label="1"> <text>a corporation as an officer, director, employee, or agent of the corporation;</text> </level> <level label="2"> <text>a limited liability company as a member, employee, or agent of the limited liability company; or</text> </level> <level label="3"> <text>a partnership as a partner, employee, or agent of the partnership.</text> </level> </level> <level label="b"> <text>Subject to the provisions of this title, a corporation, limited liability company, or partnership may engage in the operation of a cemetery or burial goods business through a registered cemeterian or registered seller.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-402" title_number="5" title_name="Cemeteries" subtitle_number="4" subtitle_name="Permits and Statement Filings"> <text>A corporation, limited liability company, or partnership shall obtain a permit issued by the Director, before the corporation, limited liability company, or partnership may engage in the operation of a cemetery or burial goods business in the State.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-403" title_number="5" title_name="Cemeteries" subtitle_number="4" subtitle_name="Permits and Statement Filings"> <text>To qualify for a permit, a corporation, limited liability company, or partnership shall:</text> <level label="1"> <text>designate a separate registered cemeterian or registered seller as the responsible party for the operations of each affiliated cemetery or burial goods business;</text> </level> <level label="2"> <text>provide the name and business address of each affiliated cemetery or burial goods business;</text> </level> <level label="3"> <text>provide a list of the officers, directors, members, partners, agents, and employees of the entity applying for the permit; and</text> </level> <level label="4"> <text>comply with §§ 5–303(b)(4) and 5–304 of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-404" title_number="5" title_name="Cemeteries" subtitle_number="4" subtitle_name="Permits and Statement Filings"> <text>An applicant for a permit shall submit to the Director:</text> <level label="1"> <text>an application on the form that the Director provides;</text> </level> <level label="2"> <text>an application fee as set by the Director; and</text> </level> <level label="3"> <text>documentation verifying the number of sales contracts subject to the sales contract fee entered into within the business’s last 2 fiscal years.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-405" title_number="5" title_name="Cemeteries" subtitle_number="4" subtitle_name="Permits and Statement Filings"> <text>Except for a cemetery in which no burials have taken place within the previous 5 years, a cemetery that is exempt under § 5-102 of this title from the registration and permitting requirements of this title shall file with the Office, once every 2 years, a statement that includes:</text> <level label="1"> <text>the name and address of the cemetery;</text> </level> <level label="2"> <text>the name and address of the organization that owns and operates the cemetery; and</text> </level> <level label="3"> <text>the name and address of the individual who is responsible for the oversight of the cemetery.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-501" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <text>Except as otherwise provided in this section, a person may not buy, hold, or use, for burial:</text> <level label="1"> <text>more than 100 acres in the State; or</text> </level> <level label="2"> <text>any land within the limits of a municipal corporation in the State, unless authorized to do so by the municipal corporation.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <text>In Frederick County, a person may buy, hold, or use, for burial, up to 150 acres in 1 tract.</text> </level> <level label="d"> <text>In Baltimore County, a person may buy, hold, or use, for burial, up to 200 acres in 1 tract.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-502" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <text>An alley, canal, road, or other public thoroughfare may not be opened through property of a cemetery if that property is used or to be used for burial.</text> </level> <level label="b"> <text>This section does not authorize a registered cemeterian, permit holder, or other person to obstruct:</text> <level label="1"> <text>a public road in use when the cemetery is formed; or</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-503" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <text>Each burial lot and each crypt sold or conveyed in a cemetery shall be held by the owner only for the purpose of burial.</text> </level> <level label="b"> <text>The interest of an owner of a burial lot or crypt that is held for the burial of the owner or others and not held as an investment is not:</text> <level label="1"> <text>considered property;</text> </level> <level label="2"> <text>subject to attachment or execution for debt;</text> </level> <level label="3"> <text>subject to the insolvency laws of the State;</text> </level> <level label="4"> <text>to be inventoried in the estate of the owner; or</text> </level> <level label="5"> <text>subject to inheritance taxes.</text> </level> </level> <level label="c"> <text>The interest of an owner of a burial lot or crypt that is held as an investment and not held for the burial of the owner or others is:</text> <level label="1"> <text>considered personal property;</text> </level> <level label="2"> <text>subject to attachment or execution for debt;</text> </level> <level label="3"> <text>subject to the insolvency laws of the State;</text> </level> <level label="4"> <text>to be inventoried in the estate of the owner; and</text> </level> <level label="5"> <text>subject to inheritance taxes.</text> </level> </level> <level label="d"> <text>Subject to the rules of the cemetery owner and to the terms of any contract made with the cemetery owner, the interest of an owner of a burial lot or crypt:</text> <level label="1"> <text>may be disposed of during the lifetime of the owner of the burial lot or crypt with the consent of the cemetery owner;</text> </level> <level label="2"> <text>may be disposed of by specific reference in the will of the owner; and</text> </level> <level label="3"> <text>otherwise passes to the heirs of the owner, as defined in § 1-101 of the Estates and Trusts Article.</text> </level> </level> <level label="e"> <level label="1"> <text>The owner of a burial lot is responsible for the care of a memorial or monument placed on the burial lot.</text> </level> <level label="2"> <text>Nothing in this section may be construed to prohibit a party responsible for a cemetery from maintaining or repairing a damaged memorial or monument.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-504" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <text>A certificate, under seal of a sole proprietor registered cemeterian, permit holder, or other cemetery owner, of ownership of a burial lot or crypt has the same effect as a conveyance of real property that is executed, acknowledged, and recorded as required by law.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-505" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Cemetery owner” means:</text> <level label="i"> <text>a registered cemeterian;</text> </level> <level label="ii"> <text>a permit holder under Subtitle 4 of this title; or</text> </level> <level label="iii"> <text>an owner of a cemetery that is exempt from the registration and permitting requirements under § 5–102 of this title.</text> </level> </level> <level label="3"> <text>“Person in interest” has the meaning stated in § 14–121 of the Real Property Article.</text> </level> </level> <level label="b"> <text>This section does not apply to:</text> <level label="1"> <text>except as otherwise provided in subsections (g) and (h) of this section, a religious organization that is a cemetery owner; or</text> </level> <level label="2"> <text>property acquired by the Department of Transportation that is necessary for a public project in accordance with State or federal law.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>Before approving the sale or transfer of a cemetery under this section, the Director shall:</text> <level label="1"> <text>require a cemetery owner to submit to the Director:</text> <level label="i"> <text>an application under subsection (e) of this section;</text> </level> <level label="ii"> <text>a completed preservation plan under subsection (f) of this section; and</text> </level> <level label="iii"> <text>satisfactory evidence of completion of the public notice requirements under subsection (h) of this section; and</text> </level> </level> <level label="2"> <text>review and consider any public comments regarding the cemetery in accordance with subsection (i) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In addition to any other information required on an application form, the form shall require:</text> <level label="i"> <text>the name and address of each cemetery owner;</text> </level> <level label="ii"> <text>notice of the intent to sell or transfer the cemetery, in whole or in part;</text> </level> <level label="iii"> <text>a description of the cemetery or part of the cemetery intended for sale or transfer, including the name, location, size, estimated number of human remains and pet remains interred in the cemetery, and number of unused or unsold burial sites;</text> </level> <level label="iv"> <text>the name and contact information of any potential buyers or transferees of the cemetery, if known;</text> </level> <level label="v"> <text>an agreement to submit a preservation plan in accordance with subsection (f) of this section; and</text> </level> <level label="vi"> <text>a copy of the public notice required under subsection (h) of this section.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In developing the preservation plan under paragraph (1) of this subsection, the cemetery owner shall comply with subsection (g) of this section.</text> </level> </level> <level label="g"> <text>Each cemetery owner, including a religious organization that is a cemetery owner, shall attempt to identify and contact:</text> <level label="1"> <text>any descendent or descendent community organization of an individual interred in the cemetery;</text> </level> <level label="2"> <text>any individual or family who has purchased an unused plot in the cemetery; and</text> </level> <level label="3"> <text>any person that has worked to maintain the abandoned cemetery.</text> </level> </level> <level label="h"> <level label="1"> <text>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:</text> <level label="i"> <text>publishing notice of the sale or transfer in a newspaper of general circulation in the county where the cemetery is located for 9 successive weeks;</text> </level> <level label="ii"> <text>placing a written notice of intent to sell or transfer in the cemetery at a conspicuous location in full public view for not less than 60 days;</text> </level> <level label="iii"> <text>providing notice to local genealogical and historical societies; and</text> </level> <level label="iv"> <text>holding a public meeting at which public testimony must be offered.</text> </level> </level> <level label="2"> <text>A public notice required under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>the address of the cemetery;</text> </level> <level label="ii"> <text>the estimated size and number of human remains or pet remains interred in the cemetery;</text> </level> <level label="iii"> <text>any available information about the cemetery from the State Department of Assessments and Taxation; and</text> </level> <level label="iv"> <text>if available, the name of the last known owner of the cemetery.</text> </level> </level> </level> <level label="i"> <text>Before approving the sale or transfer of a cemetery under this section, the Director shall consider any public comments about the cemetery received by the cemetery owner at a public hearing under subsection (h)(1)(iv) of this section or by the Director, including:</text> <level label="1"> <text>whether the cemetery owner has considered the concerns of the descendant community, including:</text> <level label="i"> <text>reasons for the proposed sale or transfer and future plans for the property;</text> </level> <level label="ii"> <text>whether the current location of the cemetery holds any cultural or historical significance;</text> </level> <level label="iii"> <text>the cost of disinterment and reinterment of the human remains or pet remains in the cemetery and who should bear the cost; and</text> </level> <level label="iv"> <text>where any human remains or pet remains disinterred from the cemetery would be relocated; and</text> </level> </level> <level label="2"> <text>whether the cemetery owner received other equivalent offers for purchase of the cemetery that may be less disruptive to the cemetery.</text> </level> </level> <level label="j"> <text>The Director shall approve the sale or transfer of a cemetery or part of a cemetery under this section if:</text> <level label="1"> <text>the cemetery owner satisfies all the requirements of this section; and</text> </level> <level label="2"> <text>the Director determines that it is in the interest of all the parties to sell or transfer the cemetery or part of the cemetery.</text> </level> </level> <level label="k"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An action under paragraph (1) of this subsection may be brought by:</text> <level label="i"> <text>a person with a burial right in the cemetery;</text> </level> <level label="ii"> <text>a descendant community organization;</text> </level> <level label="iii"> <text>a nonprofit organization that has a purpose of preserving the cemetery;</text> </level> <level label="iv"> <text>a governmental unit with a financial, regulatory, or other interest in the property; or</text> </level> <level label="v"> <text>a person in interest.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="l"> <text>After hearing from any person described under subsection (k)(2) of this section who wishes to be heard on the proposed sale, transfer, or alternate use of the cemetery under subsection (k) of this section, the court shall:</text> <level label="1"> <text>allow the proposed sale, transfer, or alternate use of all or part of the cemetery;</text> </level> <level label="2"> <text>prohibit the proposed sale, transfer, or alternate use of all or part of the cemetery; or</text> </level> <level label="3"> <text>order an alternative disposition of the cemetery.</text> </level> </level> <level label="m"> <text>If the court is satisfied that it is appropriate or would be in the interest of a person described in subsection (k)(2) of this section to sell the cemetery, the court shall:</text> <level label="1"> <text>pass a judgment for the sale of the cemetery on the terms and notice the court sets;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>distribute the remaining proceeds of the sale among the parties according to their interests.</text> </level> </level> <level label="n"> <text>A judgment approving the sale of a cemetery conveys the title of the cemetery free of the claims of:</text> <level label="1"> <text>the owners of the cemetery; and</text> </level> <level label="2"> <text>the holders of burial rights in the cemetery.</text> </level> </level> <level label="o"> <text>If the court determines that the sale or transfer of a cemetery is inappropriate and not in the best interest of a person described in subsection (k)(2) of this section, the court shall:</text> <level label="1"> <level label="i"> <text>approve the transfer to a descendant community organization or other nonprofit organization that agrees to maintain and preserve the cemetery; and</text> </level> <level label="ii"> <text>approve the price of the transfer, including a donation or nominal fee; or</text> </level> </level> <level label="2"> <text>order a negotiation between the owner of the cemetery and the person that wishes to acquire the cemetery.</text> </level> </level> <level label="p"> <text>A court shall make all determinations required under this section for the disposition of a property that includes a cemetery not more than 6 months after the action under subsection (k)(2) of this section is served.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-506" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <text>An action may be brought in accordance with the Maryland Rules and a court may pass a judgment for sale of a burial ground in Baltimore City for another purpose if:</text> <level label="1"> <text>the ground has been dedicated and used for burial;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>more than 75% of the area of the burial ground:</text> <level label="i"> <text>has been abandoned; or</text> </level> <level label="ii"> <text>is harmful to the public health, safety, or welfare.</text> </level> </level> </level> <level label="b"> <text>The action may be brought by:</text> <level label="1"> <text>a person with a property right in the burial ground; or</text> </level> <level label="2"> <text>a governmental unit with an interest in ending the conditions that are harmful to the public health, safety, or welfare.</text> </level> </level> <level label="c"> <text>If the court is satisfied that more than 75% of the area of a burial ground has been abandoned or is harmful to the public health, safety, or welfare, the court:</text> <level label="1"> <text>may pass a judgment for the sale of the entire burial ground on the terms and notice the court sets; and</text> </level> <level label="2"> <text>may appoint a trustee to sell the burial ground.</text> </level> </level> <level label="d"> <text>The trustee shall distribute the sale proceeds:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>second, to pay expenses of removing any markers that are in good condition from the old lots and relocating the markers on new lots;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>fourth, to pay the costs of necessary legal proceedings, including court costs, trustee’s commissions, and legal fees;</text> </level> <level label="5"> <text>fifth, to pay in full any taxes; and</text> </level> <level label="6"> <text>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.</text> </level> </level> <level label="e"> <text>A judgment for the sale of a burial ground or a deed or other conveyancing instrument executed by a trustee under this section passes to the buyer of the burial ground the title to the burial ground free of:</text> <level label="1"> <text>the claims of the owners of the burial ground;</text> </level> <level label="2"> <text>the claims of the holders of burial lots; and</text> </level> <level label="3"> <text>the intended or actual use or dedication of the land in the burial ground for burial.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-507" title_number="5" title_name="Cemeteries" subtitle_number="5" subtitle_name="Cemetery Property"> <level label="a"> <text>In this section, “abandoned cemetery” means a cemetery for which:</text> <level label="1"> <text>legal ownership cannot be determined;</text> </level> <level label="2"> <text>the person with legal responsibility for operation and maintenance of the cemetery cannot be determined;</text> </level> <level label="3"> <text>the entity that operated the cemetery has ceased to operate; or</text> </level> <level label="4"> <text>the real property on which the cemetery is located has been condemned.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>If a governmental entity that has acquired an abandoned cemetery under subsection (b) of this section is unable to transfer ownership of the abandoned cemetery within a reasonable period of time, the Director may facilitate the reinterment of any human remains or pet remains from the abandoned cemetery to an operational cemetery in a professional manner.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>A person or organization listed under subsection (b)(1) of this section may bring an action requesting the court to transfer property acquired by a governmental unit under this section to the person or organization.</text> </level> <level label="ii"> <text>Within 6 months after a governmental unit is served in an action brought under subparagraph (i) of this paragraph, the court shall make a determination on the disposition of the property.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-601" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <text>In this subtitle, “perpetual care”:</text> <level label="1"> <text>means the maintenance, including the cutting of grass abutting memorials or monuments, administration, supervision, and embellishment of a cemetery and its grounds, roads, and paths; and</text> </level> <level label="2"> <text>includes the repair and renewal of buildings, including columbaria and mausoleums, and the property of the cemetery.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-602" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>This subtitle does not apply to a cemetery that:</text> <level label="1"> <text>has less than 1 acre available for burial; or</text> </level> <level label="2"> <text>is owned and operated by:</text> <level label="i"> <text>a county;</text> </level> <level label="ii"> <text>a municipal corporation;</text> </level> <level label="iii"> <text>a church;</text> </level> <level label="iv"> <text>a synagogue;</text> </level> <level label="v"> <text>a religious organization;</text> </level> <level label="vi"> <text>a nonprofit organization created before 1900 by an act of the General Assembly;</text> </level> <level label="vii"> <text>a family and does not conduct public sales; or</text> </level> <level label="viii"> <text>a State veterans agency.</text> </level> </level> </level> <level label="b"> <text>This subtitle does not apply to the sale of a below–ground earth–covered chamber.</text> </level> <level label="c"> <text>This subtitle does not amend a trust agreement covering a perpetual care fund that existed on or before July 1, 1973, except as to:</text> <level label="1"> <text>the appointment of a successor trustee or cotrustee;</text> </level> <level label="2"> <text>deposits into the fund after July 1, 1973; and</text> </level> <level label="3"> <text>the withdrawal from the fund of income on deposits made after July 1, 1973.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-603" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>In this section, “developed land area” means land in a cemetery:</text> <level label="1"> <text>that is available for burial;</text> </level> <level label="2"> <text>where roads, paths, or buildings have been laid out or built; or</text> </level> <level label="3"> <text>where burial lots have been outlined on a plat or in a record or sales brochure.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A separate perpetual care trust fund shall be established for each cemetery to which this section applies.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>“The cemetery is a perpetual care cemetery.”; or</text> </level> <level label="ii"> <text>“The cemetery is not a perpetual care cemetery.”</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <text>Each sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle initially shall deposit in the perpetual care trust fund at least:</text> <level label="1"> <text>$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;</text> </level> <level label="2"> <text>$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;</text> </level> <level label="3"> <text>$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</text> </level> <level label="4"> <text>$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.</text> </level> </level> <level label="d"> <level label="1"> <text>The deposits required by this subsection are in addition to the deposits required by subsection (c) of this section.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>at least 10% of the actual selling price of each right of interment in a burial lot, above–ground crypt, or niche; or</text> </level> <level label="ii"> <text>if the burial space is sold at a discount or at no cost, at least 10% of the imputed cost of the fair retail value.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="e"> <text>A distribution from the perpetual care trust fund made under subsection (g) of this section:</text> <level label="1"> <text>shall be used only for the perpetual care of the cemetery, including:</text> <level label="i"> <text>the maintenance, including the cutting of grass abutting memorials or monuments, administration, supervision, and embellishment of the cemetery and its grounds, roads, and paths; and</text> </level> <level label="ii"> <text>the repair and renewal of buildings, including columbaria and mausoleums, and the property of the cemetery;</text> </level> </level> <level label="2"> <text>may not be used to care for memorials or monuments; and</text> </level> <level label="3"> <text>may not be used by the owner of a cemetery for any purpose not described in item (1) of this subsection.</text> </level> </level> <level label="f"> <text>Realized capital gains of a perpetual care trust fund shall be deposited in the perpetual care trust fund as principal of the perpetual care trust fund.</text> </level> <level label="g"> <level label="1"> <text>In this subsection, “net income” includes interest and dividends.</text> </level> <level label="2"> <text>A cemetery that is subject to this section may select as the method of distribution from the perpetual care trust fund either:</text> <level label="i"> <text>all net income to be distributed on a monthly, quarterly, semiannual, or annual basis; or</text> </level> <level label="ii"> <text>an amount not exceeding 4% of the average of the end–of–year fair market value of the perpetual care trust fund for the preceding 3 calendar years, to be distributed on a monthly, quarterly, semiannual, or annual basis.</text> </level> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, if a cemetery that is subject to this section selects a method of distribution described in paragraph (2) of this subsection:</text> <level label="1"> <text>the trustee shall submit to the Director a statement attesting that the cemetery’s selection of the method of distribution described in paragraph (2) of this subsection is reasonably expected to result in sufficient protection of the perpetual care trust fund’s principal;</text> </level> <level label="2"> <text>the cemetery shall notify the Director in writing at least 60 days before the date the method of distribution will take effect;</text> </level> <level label="3"> <text>the notification under item 1 of this subparagraph shall include a copy of the investment policy statement for the trust and the planned initial distribution amount;</text> </level> <level label="4"> <text>the cemetery shall notify the trustee in writing at least 60 days before the date the method of distribution will take effect; and</text> </level> <level label="5"> <text>the method of distribution shall remain in effect until the cemetery notifies the trustee and the Director in writing that the cemetery has selected a different method of distribution.</text> </level> </level> <level label="ii"> <level label="1"> <text>A cemetery’s selection of a method of distribution under subparagraph (i) of this paragraph is contingent on approval of the Director made in accordance with subsubparagraph 2 of this subparagraph.</text> </level> <level label="2"> <text>Within 30 days after receiving notice under subparagraph (i)1 of this paragraph, the Director shall, in a written notice provided to the cemetery, approve or disapprove the proposed distribution method.</text> </level> <level label="3"> <text>If a cemetery that is subject to this section does not select a method of distribution described in paragraph (2) of this subsection, the trustee shall distribute to the cemetery, on a monthly basis, all net income of the perpetual care trust fund.</text> </level> </level> </level> <level label="4"> <text>If a cemetery that is subject to this section selects the method of distribution described in paragraph (2)(ii) of this subsection, the trustee:</text> <level label="i"> <text>shall submit annually to the Director a statement attesting that the cemetery’s selection of the method of distribution described in paragraph (2)(ii) of this subsection is reasonably expected to result in sufficient protection of the perpetual care trust fund’s principal;</text> </level> <level label="ii"> <text>may not reduce the amount of the distribution by any taxes or fees;</text> </level> <level label="iii"> <text>shall adopt an investment policy that:</text> <level label="1"> <text>provides for a balanced portfolio, including a reasonable amount of fixed–income securities; and</text> </level> <level label="2"> <text>supports the growth of the perpetual care trust fund; and</text> </level> </level> <level label="iv"> <level label="1"> <text>shall use the method of distribution selected by the cemetery if the fair market value of the perpetual care trust fund exceeds the sum of:</text> </level> <level label="A"> <text>80% of the average of the end–of–year fair market value of the perpetual care trust fund for the preceding 3 calendar years; and</text> </level> <level label="B"> <text>the total contributions made to the principal of the perpetual care trust fund from the end of the preceding calendar year; or</text> </level> <level label="2"> <text>shall distribute to the cemetery on a monthly basis for the remainder of the calendar year all net income of the perpetual care trust fund if the fair market value of the perpetual care trust fund does not exceed the sum calculated under item 1 of this item.</text> </level> </level> </level> <level label="5"> <text>The Director may limit or prohibit a distribution made under paragraph (2)(ii) of this subsection if the Director believes that:</text> <level label="i"> <text>based on a review submitted by the trustee of the prior 5 to 7 years of performance of the perpetual care trust fund or, if less than 5 years have elapsed since the date of selection of the investment method, a review submitted by the trustee of the performance of the perpetual care trust fund since the date of selection, investment returns and distribution practices have not resulted in sufficient protection of the perpetual care trust fund’s principal; or</text> </level> <level label="ii"> <text>the trustee does not have sufficient knowledge and expertise to administer the perpetual care trust fund in a manner that supports the growth of the perpetual care trust fund.</text> </level> </level> </level> <level label="h"> <text>The trustee shall pay capital gains taxes from the principal of the perpetual care trust fund.</text> </level> <level label="i"> <level label="1"> <text>The perpetual care trust fund authorized by this subsection shall be a single purpose trust fund.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="j"> <text>A sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle shall maintain in the office of the cemetery a copy of the most recent trust report filed with the Office under § 5–606 of this subtitle and shall make the report available for inspection by an owner or a prospective purchaser of a right of interment in a burial lot, above–ground crypt, or niche.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-604" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>A trustee appointed under this subtitle must be:</text> <level label="1"> <text>a national banking association;</text> </level> <level label="2"> <text>a bank, as defined in the Maryland Uniform Fiduciaries Act;</text> </level> <level label="3"> <text>a savings bank insured by a unit of the federal government;</text> </level> <level label="4"> <text>a savings and loan association insured by a unit of the federal government; or</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>The fidelity bond provided under subsection (a)(5) of this section shall be:</text> <level label="1"> <text>for the benefit of the trust account of the cemetery or its burial space owners or both;</text> </level> <level label="2"> <text>conditioned such that the applicant shall comply with all Maryland laws and regulations relating to trust accounts; and</text> </level> <level label="3"> <text>subject to the approval of the Director.</text> </level> </level> <level label="c"> <text>A trustee may not use any perpetual care trust funds required to be held in trust in accordance with this subtitle to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>make any loan or direct or indirect investment of any kind:</text> <level label="i"> <text>to any registrant, permit holder, or any other person subject to the trust requirements of this subtitle or to any spouse, child, parent, or sibling of a registrant or any other person subject to the trust requirements of this subtitle;</text> </level> <level label="ii"> <text>to or in any entity or business operations 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;</text> </level> <level label="iii"> <text>on or in any real property of a cemetery, or the buildings or structures appurtenant to the property; or</text> </level> <level label="iv"> <text>in any permanent improvements of a cemetery or its facilities.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-605" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>The terms of a trust to provide for perpetual care shall be designated in a written agreement between the registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle and trustee.</text> </level> <level label="b"> <text>The terms of the trust agreement:</text> <level label="1"> <text>shall conform to this subtitle; and</text> </level> <level label="2"> <text>may include provisions about:</text> <level label="i"> <text>payment of income;</text> </level> <level label="ii"> <text>accumulation of income;</text> </level> <level label="iii"> <text>reinvestment of income;</text> </level> <level label="iv"> <text>administration of the trust fund; and</text> </level> <level label="v"> <text>powers of the trustee as to investments.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A trust agreement shall be irrevocable.</text> </level> <level label="2"> <text>However, a trust agreement may:</text> <level label="i"> <text>give the registered cemeterian, permit holder, or other person subject to the trust requirements of this subtitle the right to remove the trustee and appoint another qualified trustee; and</text> </level> <level label="ii"> <text>provide for the appointment of individuals as cotrustees and successor cotrustees with a corporate trustee.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-606" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the Director;</text> </level> <level label="ii"> <text>the Attorney General or an authorized representative of the Attorney General; and</text> </level> <level label="iii"> <text>the State’s Attorney for the county where the cemetery owner does business or where the cemetery is located.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The report shall:</text> <level label="i"> <text>be on the form that the Director requires;</text> </level> <level label="ii"> <text>be certified as to correctness by a certified public accountant retained by the cemetery;</text> </level> <level label="iii"> <text>be accompanied by a trustee’s annual summary statement of assets for the reporting period that includes:</text> <level label="1"> <text>the amount of money in the perpetual care trust fund at the beginning of the reporting period;</text> </level> <level label="2"> <text>an investment portfolio summary describing the asset and the market value for each investment class;</text> </level> <level label="3"> <text>a transaction summary of the perpetual care trust fund containing:</text> </level> <level label="A"> <text>trust account earnings, including interest, dividends, and realized gains or losses;</text> </level> <level label="B"> <text>money deposited;</text> </level> <level label="C"> <text>total receipts;</text> </level> <level label="D"> <text>administrative expenses;</text> </level> <level label="E"> <text>disbursements of income for cemetery care, maintenance, administration, and embellishment;</text> </level> <level label="F"> <text>other disbursements; and</text> </level> <level label="G"> <text>total disbursements; and</text> </level> <level label="4"> <text>the amount of money in the perpetual care trust fund at the end of the reporting period;</text> </level> </level> <level label="iv"> <text>be accompanied by a fee of $25; and</text> </level> <level label="v"> <text>include:</text> <level label="1"> <text>the name of the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle;</text> </level> <level label="2"> <text>each location of the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle;</text> </level> <level label="3"> <text>the amount of money in each perpetual care trust fund at the beginning of the 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;</text> </level> <level label="4"> <text>the amount of money that the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle received during that year that is subject to the trust requirements of this subtitle;</text> </level> <level label="5"> <text>the amount of money actually deposited into each perpetual care trust fund in that year;</text> </level> <level label="6"> <text>the amount of money spent during that year to provide care, maintenance, administration, and embellishment of each cemetery, except for money used for the care of monuments and memorials; and</text> </level> <level label="7"> <text>the name and address of each trustee.</text> </level> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="c"> <text>The Director may adopt regulations:</text> <level label="1"> <text>to administer subsection (b) of this section; and</text> </level> <level label="2"> <text>for determining whether registered cemeterians, permit holders, or any other person subject to the trust requirements of this subtitle are complying with this subtitle.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-607" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>If the Director finds that a registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle has violated this subtitle or a regulation adopted under this subtitle, the Director may refer the matter to:</text> <level label="1"> <text>the Attorney General for civil enforcement; or</text> </level> <level label="2"> <text>the appropriate State’s Attorney for criminal prosecution.</text> </level> </level> <level label="b"> <text>The Attorney General may sue for and a court may grant:</text> <level label="1"> <text>injunctive or other equitable relief;</text> </level> <level label="2"> <text>imposition of a civil penalty not exceeding $5,000; or</text> </level> <level label="3"> <text>both.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-608" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <text>A registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle may not sell or offer to sell to a member of the public a burial lot or burial right in a cemetery and represent to the public in any way, express or implied, that the cemetery or the burial lot or burial right in the cemetery will have perpetual care unless the sole proprietor registered cemeterian, permit holder, or any other person subject to the trust requirements of this subtitle has provided adequately for that perpetual care.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-609" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <text>Except as provided in § 5–602 of this subtitle, a sole proprietor registered cemeterian, permit holder, or any other person subject to the permit or registration requirements of this title may not establish, operate, or allow a cemetery to be operated in violation of this subtitle.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-610" title_number="5" title_name="Cemeteries" subtitle_number="6" subtitle_name="Perpetual Care"> <level label="a"> <text>Except as otherwise provided in subsection (c) of this section, a sole proprietor registered cemeterian, permit holder, or any other person subject to the permit or registration requirements of this title who violates this subtitle is guilty of a misdemeanor and, on conviction, is subject to:</text> <level label="1"> <text>for a first violation, a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both;</text> </level> <level label="2"> <text>for a second violation, a fine not exceeding $10,000 or imprisonment not exceeding 2 years or both; and</text> </level> <level label="3"> <text>for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.</text> </level> </level> <level label="b"> <text>Except as otherwise provided in subsection (c) of this section, if a corporation violates this subtitle, each officer responsible for the violation is guilty of a misdemeanor and, on conviction, is subject to:</text> <level label="1"> <text>for a first violation, a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both;</text> </level> <level label="2"> <text>for a second violation, a fine not exceeding $10,000 or imprisonment not exceeding 2 years or both; and</text> </level> <level label="3"> <text>for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.</text> </level> </level> <level label="c"> <text>A person who willfully misappropriates or intentionally and fraudulently converts perpetual care trust funds in excess of $100 to that person’s own use is guilty of a felony and, on conviction, is subject to a fine not exceeding $25,000 or imprisonment not exceeding 10 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-701" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Burial space” means land or space in a structure used or to be used for burial.</text> </level> <level label="2"> <text>“Burial space” includes a burial right in the land or space.</text> </level> </level> <level label="c"> <text>“Buyer” means a person who buys preneed goods or preneed services.</text> </level> <level label="d"> <text>“Preneed burial contract” means a written instrument under which preneed goods or preneed services are to be sold and delivered or performed.</text> </level> <level label="e"> <level label="1"> <text>“Preneed services” means services that are sold:</text> <level label="i"> <text>before the buyer’s death; and</text> </level> <level label="ii"> <text>in connection with burial.</text> </level> </level> <level label="2"> <text>“Preneed services” includes opening and closing a grave.</text> </level> </level> <level label="f"> <text>“Seller” means a registered cemeterian, registered seller, or any other person who sells preneed goods or preneed services.</text> </level> <level label="g"> <text>“Specific funds” means money that is identified to a specific preneed burial contract.</text> </level> <level label="h"> <text>“Trust account” means a preneed trust account.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-702" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>This subtitle does not apply to:</text> <level label="1"> <text>the sale of burial space;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>the preneed sale of burial goods or services by a private family cemetery that does not conduct public sales of burial goods or services.</text> </level> </level> <level label="b"> <text>This subtitle does not allow a person, directly or indirectly, through an agent or otherwise, to practice funeral direction or practice mortuary science, unless the person is licensed to practice funeral direction or practice mortuary science under the Health Occupations Article.</text> </level> <level label="c"> <text>A preneed burial contract made under this subtitle is not an insurance contract and does not involve the business of insurance.</text> </level> <level label="d"> <text>This subtitle does not require a cemetery to accept goods, perform services, or allow services to be performed if the goods or services are contrary to:</text> <level label="1"> <text>the law concerning burial; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>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:</text> <level label="i"> <text>the owner or operator of the cemetery is not the owner of or beneficiary under the life insurance policy or annuity contract;</text> </level> <level label="ii"> <text>an assignment of benefits to the owner or operator of the cemetery may be revoked at any time by the owner of the life insurance policy or annuity contract;</text> </level> <level label="iii"> <text>subject to item (iv) of this paragraph, the owner or operator of the cemetery agrees to accept the benefits payable under the life insurance policy or annuity contract as payment in full for the services and merchandise agreed on in the preneed burial contract; and</text> </level> <level label="iv"> <text>any benefits payable under the life insurance policy or annuity contract in excess of the amount necessary to pay the total price, as determined at the time of death of the insured, of the services and merchandise agreed on in the preneed burial contract are paid to the beneficiary under the life insurance policy or annuity contract.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>The offer, sale, or assignment of a life insurance policy or annuity contract to fund a preneed burial contract is not subject to this subtitle.</text> </level> <level label="ii"> <text>A preneed burial contract funded by a life insurance policy or an annuity contract is not subject to § 5-705, § 5-706, § 5-707, § 5-708, or § 5-709 of this subtitle.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-703" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <text>This subtitle applies only to preneed burial contracts made on or after October 1, 1984.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-704" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>A preneed burial contract shall contain:</text> <level label="1"> <text>the name of the buyer;</text> </level> <level label="2"> <text>the name of the seller;</text> </level> <level label="3"> <text>the name of each individual, other than the buyer, as to whom the preneed goods or preneed services are to be furnished;</text> </level> <level label="4"> <text>the name of the pet, if applicable;</text> </level> <level label="5"> <text>a description of the preneed goods or preneed services; and</text> </level> <level label="6"> <text>the amount of the buyer’s financial obligation.</text> </level> </level> <level label="b"> <level label="1"> <text>A preneed burial contract shall be dated and executed in duplicate by the buyer and seller.</text> </level> <level label="2"> <text>The seller shall give the buyer a duplicate original of the preneed burial contract.</text> </level> </level> <level label="c"> <level label="1"> <text>A preneed burial contract may provide for delivery of identified preneed goods by providing for the seller to:</text> <level label="i"> <text>transfer physical possession of the preneed goods to the buyer or designee of the buyer;</text> </level> <level label="ii"> <text>attach the preneed goods to a designated burial space;</text> </level> <level label="iii"> <text>pay for and suitably store the preneed goods until needed, at a cemetery or other location of the seller, if the preneed goods are marked with the name of the buyer and the sale is supported by a verifiable record; or</text> </level> <level label="iv"> <text>have the supplier of the preneed goods:</text> <level label="1"> <text>cause title to be transferred to the buyer or designee of the buyer; and</text> </level> <level label="2"> <text>agree in writing to ship the preneed goods at the direction of the buyer or designee of the buyer.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>Notwithstanding any provision in a preneed burial contract, identified preneed services are not considered to have been performed until performance actually occurs.</text> </level> <level label="e"> <level label="1"> <text>Except as otherwise provided in this subsection, a preneed burial contract may not provide for interest or a finance charge.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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:</text> <text>“Notice to consumers: This contract of sale may be sold to a commercial lending institution. After the sale, the commercial lending institution may impose interest or a finance charge on the remaining balance due”.</text> </level> </level> <level label="f"> <text>A provision of a preneed burial contract that purports to waive any provision of this subtitle is void.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-705" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>A seller shall put in trust an amount from the payment that is equal to 80% of the selling price of any casket or casket vault sold under the preneed burial contract.</text> </level> <level label="c"> <text>This section does not apply to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-706" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>Each trust account shall be:</text> <level label="1"> <text>titled “preneed trust account”; and</text> </level> <level label="2"> <text>established by the seller in the seller’s name.</text> </level> </level> <level label="b"> <text>A trustee appointed under this subtitle must be:</text> <level label="1"> <text>a national banking association, as defined in the Financial Institutions Article;</text> </level> <level label="2"> <text>a banking institution, as defined in the Financial Institutions Article;</text> </level> <level label="3"> <text>any other financial institution allowed by law to engage in the trust business; or</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <text>A seller may:</text> <level label="1"> <text>commingle money from 2 or more preneed burial contracts; and</text> </level> <level label="2"> <text>establish more than 1 trust account.</text> </level> </level> <level label="d"> <level label="1"> <text>A trust account established under this subtitle shall be a single purpose trust.</text> </level> <level label="2"> <text>Money in the trust account is not available to a creditor as an asset of the seller.</text> </level> </level> <level label="e"> <text>Money in the trust account may be withdrawn only on the combined signatures of:</text> <level label="1"> <text>2 officers of a corporate seller; or</text> </level> <level label="2"> <text>at least 2 individuals authorized to withdraw money for an unincorporated seller.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-707" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>In this section, “seller’s account” means:</text> <level label="1"> <text>the total of specific funds deposited from all preneed burial contracts of a seller commingled in a single fund; and</text> </level> <level label="2"> <text>any income derived from investing the money in the fund.</text> </level> </level> <level label="b"> <text>Trust accounts shall be administered as this subtitle provides.</text> </level> <level label="c"> <level label="1"> <text>Except as otherwise provided in this subtitle, a trustee appointed under this subtitle is subject to the law that is generally applicable to trustees.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>A trustee:</text> <level label="1"> <text>may rely on all certifications made under or required by this subtitle; and</text> </level> <level label="2"> <text>is not liable to any person for that reliance.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>remain in the trust account;</text> </level> <level label="ii"> <text>be reinvested and compounded; and</text> </level> <level label="iii"> <text>be disbursed only for payment of appropriate trustee’s fees, commissions, prorated proportional shares of total realized capital gains attributable to specific funds, and other costs of the trust account.</text> </level> </level> </level> <level label="f"> <text>A trustee may not use any preneed trust funds required to be held in trust in accordance with this subtitle to:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>make any loan or direct or indirect investment of any kind:</text> <level label="i"> <text>to any registrant, permit holder, or any other person subject to the trust requirements of this subtitle or to any spouse, child, parent, or sibling of a registrant or any other person subject to the trust requirements of this subtitle;</text> </level> <level label="ii"> <text>to or in any entity or business operations 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;</text> </level> <level label="iii"> <text>on or in any real property of a cemetery or the buildings or structures appurtenant to the property; or</text> </level> <level label="iv"> <text>in any permanent improvements of a cemetery, the facilities of a cemetery, or the buildings or structures appurtenant to a cemetery.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-708" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>The trustee may not disburse specific funds until preneed goods are delivered or preneed services are performed as provided in the preneed burial contract or in this subtitle.</text> </level> <level label="b"> <text>On performance of a preneed burial contract:</text> <level label="1"> <text>the seller shall certify to the trustee:</text> <level label="i"> <text>delivery of the preneed goods or performance of the preneed services; and</text> </level> <level label="ii"> <text>the amount of specific funds in the trust account; and</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the seller shall certify to the trustee:</text> <level label="1"> <text>delivery of the preneed goods or performance of the preneed services; and</text> </level> <level label="2"> <text>the amount of the specific funds identified in the seller’s records for those preneed goods or preneed services; and</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>On performance of that part of the preneed burial contract identified to a particular individual:</text> <level label="i"> <text>the seller shall certify to the trustee:</text> <level label="1"> <text>delivery of the preneed goods or performance of the preneed services; and</text> </level> <level label="2"> <text>the amount of the specific funds applicable to that part of the preneed burial contract; and</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-709" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <level label="1"> <text>A buyer may cancel a preneed burial contract as to preneed goods not delivered or preneed services not performed if the buyer:</text> <level label="i"> <text>permanently moves more than 75 miles from the cemetery specified in the preneed burial contract; and</text> </level> <level label="ii"> <text>gives to the seller written notice, under oath, of the move and includes the buyer’s new permanent address.</text> </level> </level> <level label="2"> <text>In that event:</text> <level label="i"> <text>the seller shall certify to the trustee:</text> <level label="1"> <text>the cancellation of the preneed burial contract;</text> </level> <level label="2"> <text>the amount of the remaining specific funds applicable to the preneed burial contract; and</text> </level> <level label="3"> <text>the name and address of the buyer; and</text> </level> </level> <level label="ii"> <text>the trustee shall then pay to the buyer the remaining specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In that event:</text> <level label="i"> <text>the seller shall certify to the trustee:</text> <level label="1"> <text>the cancellation of the purchase of the casket or casket vault under the preneed burial contract;</text> </level> <level label="2"> <text>the amount of the specific funds applicable to the casket or casket vault under the preneed burial contract; and</text> </level> <level label="3"> <text>the name and address of the buyer;</text> </level> </level> <level label="ii"> <text>the trustee shall pay to the buyer the specific funds, interest accrued on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds; and</text> </level> <level label="iii"> <text>in addition to the refund paid by the trustee, the seller shall pay to the buyer an amount of money necessary to provide the buyer with a refund of 100% of the money paid for the casket or casket vault under the preneed burial contract.</text> </level> </level> </level> <level label="c"> <text>If a buyer fails to provide written notice of cancellation and defaults on a preneed burial contract and, as a result, the seller terminates the preneed burial contract:</text> <level label="1"> <text>the seller shall certify to the trustee:</text> <level label="i"> <text>the default and termination of the preneed burial contract;</text> </level> <level label="ii"> <text>the amount of the specific funds; and</text> </level> <level label="iii"> <text>the reasonable expenses of the seller; and</text> </level> </level> <level label="2"> <text>the trustee shall then pay:</text> <level label="i"> <text>to the buyer, those specific funds, accrued interest on the specific funds, and a prorated proportional share of total realized capital gains attributable to the specific funds, less the reasonable expenses of the seller; and</text> </level> <level label="ii"> <text>to the seller, the reasonable expenses of the seller.</text> </level> </level> </level> <level label="d"> <text>If specific funds on deposit in a trust account have been dormant for at least 50 years since the date of the last deposit or disbursement and the seller cannot locate the buyer:</text> <level label="1"> <text>the seller shall certify to the trustee:</text> <level label="i"> <text>that the trust account is dormant and the buyer cannot be located; and</text> </level> <level label="ii"> <text>the amount of the specific funds; and</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-710" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <level label="1"> <text>Each seller shall keep detailed records of all preneed burial contracts and specific funds.</text> </level> <level label="2"> <text>The records of each seller and of each trustee appointed by the seller are subject to examination by:</text> <level label="i"> <text>the Director;</text> </level> <level label="ii"> <text>the Attorney General or an authorized representative of the Attorney General; and</text> </level> <level label="iii"> <text>the State’s Attorney for the county where the seller does business.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The report shall:</text> <level label="i"> <text>be on the form that the Director requires;</text> </level> <level label="ii"> <text>be certified by a certified public accountant retained by the seller;</text> </level> <level label="iii"> <text>be accompanied by a trustee’s annual summary statement of assets from the trustee for the reporting period which includes:</text> <level label="1"> <text>the amount of money in the preneed trust fund at the beginning of the reporting period;</text> </level> <level label="2"> <text>an investment portfolio summary describing the asset and the market value for each investment class;</text> </level> <level label="3"> <text>a transaction summary of the preneed trust fund containing:</text> </level> <level label="A"> <text>trust account earnings;</text> </level> <level label="B"> <text>money deposited;</text> </level> <level label="C"> <text>total receipts;</text> </level> <level label="D"> <text>administrative expenses;</text> </level> <level label="E"> <text>withdrawals from the trust account for canceled contracts;</text> </level> <level label="F"> <text>withdrawals from the trust account for delivery of merchandise for use or storage, and for services performed, including the principal and earnings;</text> </level> <level label="G"> <text>other disbursements; and</text> </level> <level label="H"> <text>total disbursements; and</text> </level> <level label="4"> <text>the amount of money in the preneed trust fund at the end of the reporting period;</text> </level> </level> <level label="iv"> <text>be accompanied by a fee of $25; and</text> </level> <level label="v"> <text>include:</text> <level label="1"> <text>the name of the seller;</text> </level> <level label="2"> <text>each location of the seller;</text> </level> <level label="3"> <text>the amount of money that the seller received during that year that is subject to the trust requirements of this subtitle;</text> </level> <level label="4"> <text>the amount of money actually deposited into trust accounts in that year;</text> </level> <level label="5"> <text>the amount of money required to be disbursed from the trust accounts in that year;</text> </level> <level label="6"> <text>the amount of money actually disbursed from the trust accounts in that year; and</text> </level> <level label="7"> <text>the name and address of the trustee.</text> </level> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <level label="i"> <text>A seller of preneed goods or preneed services that sells its business, files a petition in bankruptcy, or ceases to operate shall provide written notice within 15 days:</text> <level label="1"> <text>to the Director, detailing the changes and the arrangements the seller has made for carrying out the preneed burial contracts and the disbursement of any money held in an escrow or trust account; and</text> </level> <level label="2"> <text>to each buyer of a preneed burial contract, advising the buyer of the buyer’s options under State law in regard to the preneed contract.</text> </level> </level> <level label="ii"> <text>Nothing in this paragraph exempts a seller of preneed goods or services that sells its business, files a petition in bankruptcy, or ceases to operate from filing the annual report required under this section.</text> </level> </level> </level> <level label="c"> <text>A seller of a preneed burial contract shall provide each buyer or prospective buyer with a general price list for the buyer or prospective buyer to keep which shall include:</text> <level label="1"> <text>specific prices for:</text> <level label="i"> <text>ground opening and closing;</text> </level> <level label="ii"> <text>extra depth interment;</text> </level> <level label="iii"> <text>interment of cremated remains; and</text> </level> <level label="iv"> <text>mausoleum entombment; and</text> </level> </level> <level label="2"> <text>general price ranges for burial space or preneed goods.</text> </level> </level> <level label="d"> <text>A seller of a preneed burial contract shall disclose to the buyer:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>the buyer’s cancellation and refund rights under § 5–709 of this subtitle;</text> </level> <level label="3"> <text>the person responsible for installation of the goods sold and any warranties for the goods sold; and</text> </level> <level label="4"> <text>if the preneed contract provides for goods or services to be delivered or performed before death:</text> <level label="i"> <text>that interest or finance charges may be imposed;</text> </level> <level label="ii"> <text>that interest or finance charges are not allowed on other preneed burial contracts that do not provide for goods or services to be delivered or performed before death;</text> </level> <level label="iii"> <text>the manner of delivery of goods including where the goods are stored; and</text> </level> <level label="iv"> <text>the buyer’s remedy if delivered goods are damaged or destroyed.</text> </level> </level> </level> <level label="e"> <text>The Director may require a seller to correct any underfunding, including interest, due to the preneed trust account.</text> </level> <level label="f"> <text>The Director may adopt regulations:</text> <level label="1"> <text>to administer this section; and</text> </level> <level label="2"> <text>for determining whether sellers are complying with this subtitle.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-711" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>If the Director finds that a seller has violated this subtitle or a regulation adopted under this subtitle, the Director may refer the matter to:</text> <level label="1"> <text>the Attorney General for civil enforcement; or</text> </level> <level label="2"> <text>the appropriate State’s Attorney for criminal prosecution.</text> </level> </level> <level label="b"> <text>The Attorney General may sue for and a court may grant:</text> <level label="1"> <text>injunctive or other equitable relief;</text> </level> <level label="2"> <text>imposition of a civil penalty not exceeding $5,000; or</text> </level> <level label="3"> <text>both.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-712" title_number="5" title_name="Cemeteries" subtitle_number="7" subtitle_name="Preneed Burial Contracts"> <level label="a"> <text>A seller may not fail to deposit, as required by this subtitle, money received under or in connection with a preneed burial contract.</text> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>for a first violation, a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both;</text> </level> <level label="ii"> <text>for a second violation, a fine not exceeding $15,000 or imprisonment not exceeding 2 years or both; and</text> </level> <level label="iii"> <text>for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>for a first violation, a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both;</text> </level> <level label="ii"> <text>for a second violation, a fine not exceeding $15,000 or imprisonment not exceeding 2 years or both; and</text> </level> <level label="iii"> <text>for a third or subsequent violation, a fine not exceeding $20,000 or imprisonment not exceeding 3 years or both.</text> </level> </level> </level> <level label="c"> <text>A person who willfully misappropriates or intentionally and fraudulently converts preneed trust funds in excess of $100 to that person’s own use is guilty of a felony and, on conviction, is subject to a fine not exceeding $25,000 or imprisonment not exceeding 10 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-801" title_number="5" title_name="Cemeteries" subtitle_number="8" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>At the time of entering into a contract with a consumer for the sale of burial goods or services, registrants, permit holders, or any other person subject to the provisions of this title shall make the following written disclosures:</text> <level label="1"> <text>the itemized cost for each service performed under the contract;</text> </level> <level label="2"> <text>a list of services incidental to burial that are not covered by the contract;</text> </level> <level label="3"> <text>a statement regarding the cemetery’s policy on the use of independent monument companies; and</text> </level> <level label="4"> <text>the name, address, and telephone number for the State Office of Cemetery Oversight.</text> </level> </level> <level label="b"> <level label="1"> <text>The disclosures required under subsection (a)(1), (2), and (3) of this section shall be conspicuously incorporated in the contract in 12–point type.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>The disclosure must be signed and dated by the consumer.</text> </level> <level label="d"> <text>The consumer must be provided with a copy of the contract and a copy of the form required under subsection (b)(2) of this section at the time of purchasing the burial goods or services.</text> </level> <level label="e"> <text>The disclosure shall occur:</text> <level label="1"> <text>not later than the first scheduled face–to–face contact with the purchaser or party representing the purchaser; or</text> </level> <level label="2"> <text>if no face–to–face contact occurs, at the time of the execution of the contract by the purchaser or party representing the purchaser.</text> </level> </level> <level label="f"> <text>The Director, by regulation, may prescribe the form and wording of the disclosure.</text> </level> <level label="g"> <text>If the purchase by the consumer includes a cemetery plot, the registered cemeterian, permit holder, or any other person subject to the provisions of this title shall provide the consumer with a copy of a location survey, performed by a licensed land surveyor, which indicates the location of the purchased plot within the cemetery, or by any other means approved by the Director.</text> </level> <level label="h"> <text>Registrants, permit holders, or any other person subject to the provisions of this title shall provide each buyer or prospective buyer with a general price list for the buyer or prospective buyer to keep which shall include:</text> <level label="1"> <text>specific prices for:</text> <level label="i"> <text>ground opening and closing;</text> </level> <level label="ii"> <text>extra depth interment;</text> </level> <level label="iii"> <text>interment of cremated remains; and</text> </level> <level label="iv"> <text>mausoleum entombment; and</text> </level> </level> <level label="2"> <text>general price ranges for burial space or burial goods.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-802" title_number="5" title_name="Cemeteries" subtitle_number="8" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>Within 1,000 yards of Druid Hill Park:</text> <level label="1"> <text>a cemetery corporation may not allow burial or establish or maintain a cemetery; and</text> </level> <level label="2"> <text>a person may not participate in any way in a burial in a cemetery of a cemetery corporation.</text> </level> </level> <level label="b"> <text>A person may not cause a funeral procession to or from a cemetery of a cemetery corporation to pass through Druid Hill Park without the written permission of the Department of Recreation and Parks.</text> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $100 or imprisonment not exceeding 10 days or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-804" title_number="5" title_name="Cemeteries" subtitle_number="8" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “perpetual care” has the meaning stated in § 5–601 of this title.</text> </level> <level label="b"> <text>A registered cemeterian or permit holder that engages in the operation of a cemetery or burial goods business who sells or offers to sell to the public a burial lot or a burial right in a cemetery for pet remains as to which perpetual care is stated or implied owes a duty of perpetual care for the cemetery in which the pet remains are interred.</text> </level> <level label="c"> <text>The Director shall adopt regulations in accordance with § 5–204(a) of this title to enforce the requirements of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-805" title_number="5" title_name="Cemeteries" subtitle_number="8" subtitle_name="Miscellaneous Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Abandoned cemetery” means a cemetery for which:</text> <level label="i"> <level label="1"> <text>the organization established to engage in the operation of the cemetery has been terminated, has been subject to administrative dissolution by the State, or has otherwise ceased to exist; and</text> </level> <level label="2"> <text>title has not been conveyed;</text> </level> </level> <level label="ii"> <text>there is no property owner listed in the records of the State Department of Assessments and Taxation;</text> </level> <level label="iii"> <text>the property has been condemned; or</text> </level> <level label="iv"> <text>no person who is legally responsible for the property can be found and legal ownership of the property cannot be determined.</text> </level> </level> <level label="3"> <text>“Fund” means the Abandoned and Neglected Cemeteries Fund.</text> </level> <level label="4"> <text>“Neglected cemetery” means a cemetery for which:</text> <level label="i"> <text>two or more citations have been issued by a county or municipal corporation against the property for failure to maintain the property;</text> </level> <level label="ii"> <text>the property has fallen into disrepair due to neglect and insufficient maintenance;</text> </level> <level label="iii"> <text>the property has been the object of vandalism, loitering, or other criminal conduct; or</text> </level> <level label="iv"> <text>there has been physical destruction or deterioration of the property.</text> </level> </level> </level> <level label="b"> <text>There is an Abandoned and Neglected Cemeteries Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide for the care, preservation, maintenance, and restoration of abandoned and neglected cemeteries in the State.</text> </level> <level label="d"> <text>The Secretary shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>interest earnings; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>Money in the Fund may be used only for the costs of:</text> <level label="i"> <text>care, preservation, maintenance, and restoration of abandoned and neglected cemeteries;</text> </level> <level label="ii"> <text>administering the Fund through distribution to an administrative cost account in the Department; and</text> </level> <level label="iii"> <text>subject to paragraph (2) of this subsection, promoting donations to the Fund through distribution to a promotion cost account in the Department.</text> </level> </level> <level label="2"> <text>Not more than 5% of the net proceeds of the Fund may be used under paragraph (1)(iii) of this subsection.</text> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="j"> <text>Money expended from the Fund for the preservation, care, and maintenance of abandoned and neglected cemeteries is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Office of Cemetery Oversight.</text> </level> <level label="k"> <text>The Governor may include in the annual budget bill an appropriation of $250,000 to the Fund.</text> </level> <level label="l"> <text>On or before September 30 each year, the Secretary shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the administration of the Fund.</text> </level> <level label="m"> <text>The report required under subsection (l) of this section shall include:</text> <level label="1"> <text>the gross amount of donations to the Fund;</text> </level> <level label="2"> <text>a description of promotional efforts undertaken with money from the Fund; and</text> </level> <level label="3"> <text>a detailed accounting of the use of the Fund.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-901" title_number="5" title_name="Cemeteries" subtitle_number="9" subtitle_name="Prohibited Acts"> <level label="a"> <text>Except as otherwise provided in this title, an individual may not engage in cemetery operations, attempt to engage in cemetery operations, or provide or offer to provide burial space, goods, and services unless the individual is authorized as a registrant.</text> </level> <level label="b"> <text>Except as otherwise provided in this title, an individual may not engage in a burial goods business or attempt to provide burial goods unless the individual is authorized as a registrant.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-902" title_number="5" title_name="Cemeteries" subtitle_number="9" subtitle_name="Prohibited Acts"> <text>Except for a registered cemeterian or registered seller who operates a business as a sole proprietor or a registrant employed by a sole proprietor, a person may not engage in the operation of a cemetery or burial goods business unless:</text> <level label="1"> <text>the business is a corporation, limited liability company, or partnership; and</text> </level> <level label="2"> <text>the corporation, limited liability company, or partnership holds a permit issued under this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-903" title_number="5" title_name="Cemeteries" subtitle_number="9" subtitle_name="Prohibited Acts"> <text>Unless a person is authorized as a registrant, a person may not represent to the public, by use of a title, including cemeterian, registered cemeterian, burial goods seller, or registered seller, by description of services, methods, or procedures, or otherwise, that the person is authorized to engage in the operation of a cemetery or provide burial goods.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-904" title_number="5" title_name="Cemeteries" subtitle_number="9" subtitle_name="Prohibited Acts"> <text>A person who violates this subtitle is guilty of a misdemeanor and, on conviction, is subject to:</text> <level label="1"> <text>for a first violation, a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both;</text> </level> <level label="2"> <text>for a second violation, a fine not exceeding $10,000 or imprisonment not exceeding 2 years or both; and</text> </level> <level label="3"> <text>for a third or subsequent violation, a fine not exceeding $15,000 or imprisonment not exceeding 3 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-905" title_number="5" title_name="Cemeteries" subtitle_number="9" subtitle_name="Prohibited Acts"> <level label="a"> <text>If the Director finds that a person has violated this subtitle or a regulation adopted under this subtitle, the Director may refer the matter to:</text> <level label="1"> <text>the Attorney General for civil enforcement; or</text> </level> <level label="2"> <text>the appropriate State’s Attorney for criminal prosecution.</text> </level> </level> <level label="b"> <text>The Attorney General may sue for and a court may grant:</text> <level label="1"> <text>injunctive or other equitable relief;</text> </level> <level label="2"> <text>imposition of a civil penalty not exceeding $5,000; or</text> </level> <level label="3"> <text>both.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="5-1001" title_number="5" title_name="Cemeteries" subtitle_number="10" subtitle_name="Termination of Title"> <text>This title may be cited as the “Maryland Cemetery Act”.</text> </section> <section article="gbr" article_name="Business Regulation" number="5-1002" title_number="5" title_name="Cemeteries" subtitle_number="10" subtitle_name="Termination of Title"> <text>Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, the Office of Cemetery Oversight, the provisions in this title relating to the Office, and all regulations adopted by the Office shall terminate and be of no effect after July 1, 2033.</text> </section>