# Business Regulation (GBR)

## Title 5. Cemeteries

### Subtitle 2. Office of Cemetery Oversight

#### Section 5-201

(a) There is an Office of Cemetery Oversight in the Department.

(b) The Office exercises its rights, powers, and duties subject to the authority of the Secretary.

(c)

  (1) The Secretary shall appoint an Advisory Council on Cemetery Operations.

  (2) The Advisory Council consists of 11 members.

  (3) Of the 11 members of the Advisory Council:

    (i) three shall be registered cemeterians representing the for-profit cemetery industry;

    (ii) one shall be a registered cemeterian representing a nonprofit cemetery;

    (iii) one shall be a registered seller from a monument company;

    (iv) one shall be a representative from a religious cemetery; and

    (v) five shall be consumer members.

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

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

(d) The term of a member is 3 years.

#### Section 5-202

(a)

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

  (2) The Director serves at the pleasure of the Secretary.

(b) The Director shall devote full time to the duties of the Office.

(c) The Director is entitled to:

  (1) compensation in accordance with the State budget; and

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

(d) The Director shall:

  (1) administer and operate the Office; and

  (2) be responsible to the Secretary.

(e) In addition to any requirements of the State Ethics Law, the Director may not:

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

  (2) be a registered cemeterian or a registered seller;

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

  (4) 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.

#### Section 5-203

The Director may employ a staff in accordance with the State budget.

#### Section 5-204

(a) With the advice of the Advisory Council and after consultation with representatives of the cemetery industry, the Director shall adopt:

  (1) rules and regulations to carry out this title; and

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

(b) 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.

(c) The Director may hold hearings on any matter covered by this title.

(d) To enforce this title, the Director may:

  (1) administer oaths;

  (2) examine witnesses; and

  (3) receive evidence.

(e)

  (1) 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.

  (2) 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.

(f)

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

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

    (i) post bond; or

    (ii) allege or prove either that:

      (1) an adequate remedy at law does not exist; or

      (2) substantial or irreparable damage would result from the continued violation of the provision.

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

(g) The Director may issue a cease and desist order, if the Director finds a violation of this title.

(h) The Director may refer to the Office of the Attorney General:

  (1) a violation of this title for enforcement; and

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

(i)

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

    (i) all registrants and permit holders;

    (ii) all for-profit cemeteries and nonreligious-nonprofit cemeteries associated with a registrant or permit holder; and

    (iii) all bona fide religious-nonprofit cemeteries, veterans' cemeteries, and local government-owned cemeteries that have filed a statement or report required under Sec.Sec. 5-405, 5-606, and 5-710 of this title.

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

  (3) 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:

    (i) the total number of registrants and permit holders; and

    (ii) the number of registrants and permit holders for each licensing category.

(j)

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

  (2) 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.

(k) 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:

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

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

(l)

  (1) 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 Sec. 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.

  (2) 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.

  (3) 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 Sec. 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.

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

(m) 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.

#### Section 5-204.1

The Advisory Council shall respond to issues raised by the Director in the annual report required under Sec. 5-204 of this subtitle and Sec. 5-311 of this title and develop a plan to study ongoing issues during the year following the issuance of the report.

#### Section 5-205

(a) There is a Cemetery Oversight Fund.

(b)

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

  (2) In establishing the fees, the Director shall consider:

    (i) the size of the business;

    (ii) whether the business is for-profit or designated as tax exempt under Sec. 501(c) of the Internal Revenue Code;

    (iii) the volume of business conducted; and

    (iv) the type of services provided, including the percentage of preneed contracts written.

(c) The fees charged shall be set so as to approximate the direct and indirect cost of maintaining the Office.

(d) The Director shall pay all funds collected under this title to the Comptroller who shall distribute the fees to the Cemetery Oversight Fund.

(e)

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

  (2) The Fund is a continuing nonlapsing fund, not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (3) 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.

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

(f)

  (1) The Director shall administer the Fund.

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

(g) The Legislative Auditor shall audit the accounts and transactions of the Fund as provided in Sec. 2-1220 of the State Government Article.

#### Section 5-206

A person shall have the immunity from liability described under Sec. 5-720 of the Courts and Judicial Proceedings Article for giving information to the Director or otherwise participating in the activities of the Office.

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Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)