Chapter 01. Registration and Permit Requirements
Regulation .01 Scope.LinkCopy Citation
A.
This chapter governs the:
(1)
Registration of individuals who operate cemeteries and provide burial goods for either human or pet remains in the State; and
(2)
Application procedures for persons requiring a permit to operate a cemetery or provide burial goods for either human or pet remains in this State.
B.
This chapter does not apply to:
(1)
A person that owns and operates a bona fide religious, nonprofit cemetery in this State;
(2)
The operation of a funeral establishment in this State, including the sale of burial goods in the ordinary course of the funeral establishment's business;
(3)
A licensed funeral director acting within the scope of a State funeral director's license;
(4)
A mortician acting within the scope of a State mortician's license;
(5)
A not-for-profit organization created before 1900 by an act of the General Assembly;
(6)
A county, city, or municipal corporation that owns and operates a cemetery in the State; or
(7)
A veterans' cemetery operated by the State.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Balance sheet” means a statement of financial position which presents assets, liabilities, and stockholders' equity or fund balance, and distinguishes current assets and current liabilities from other assets and liabilities.
(2)
“Bona fide religious, nonprofit cemetery” means a cemetery which is owned and operated solely by a religious organization and is established as a nonprofit business entity.
(3)
“Burial goods” means goods that are used in connection with either human or pet burial.
(4)
“Cemetery” means the interment of either human or pet remains.
(5)
“Comparative balance sheet” means a statement of financial position which presents assets, liabilities, and stockholders' equity or fund balance, and compares a previous year's results with the most recent year's results.
(6)
“Contract” means an agreement between a consumer and a cemetery or burial goods business for any service or any burial good purchased from a cemetery or burial goods business.
(7)
“Development stage enterprise financial sheet” means a financial statement which is prepared in conformity with generally accepted accounting principles and which includes the following:
(a)
A balance sheet;
(b)
An income statement;
(c)
A statement of changes in financial position; and
(d)
A detailed statement of stockholders' equity.
(8)
“Director” means the Director of the Office of Cemetery Oversight.
(9)
“Office” means the Office of Cemetery Oversight.
(10)
“Registered cemeterian” means an individual who:
(a)
Is registered to operate a cemetery as a sole proprietor or on behalf of a sole proprietor or permit holder; and
(b)
May employ sales counselors to provide burial space, goods, or services.
(11)
“Registered sales counselor” means an individual employed by a cemetery or burial goods business who provides burial space, goods, or services.
(12)
“Registered seller” means an individual who:
(a)
Is registered to provide burial goods as a sole proprietor or on behalf of a sole proprietor or permit holder to operate a burial goods business; and
(b)
May employ sales counselors.
(13)
“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.
(14)
“Substantial doubt” means that a certified public accountant, after reviewing a business's balance sheet, related note disclosures, and supplementary information, determines that a company's ability to continue as a going concern is in doubt or that a company is unable to continue to meet its obligations as they become due without substantial disposition of assets outside the ordinary course of business, restructuring of debt, externally forced revisions of its operations, or similar actions.
Regulation .03 Exception from Permit and Registration Requirements.LinkCopy Citation
A.
Except as provided in §§C and D of this regulation, a bona fide religious, nonprofit cemetery is exempt from the permit requirements in this chapter.
B.
Except as provided in §§C and D of this regulation, an owner, operator, or employee of a bona fide religious, nonprofit cemetery is exempt from the registration requirements of this chapter.
C.
A bona fide religious, nonprofit cemetery in which burials have taken place within the previous 5 years, shall file with the Director, once every 2 years, a statement that includes the name, address, and telephone number of the:
(1)
Cemetery;
(2)
Religious organization that owns and operates the cemetery; and
(3)
Individual who is responsible for the oversight of the cemetery.
D.
If the Director determines that a cemetery claiming exemption under Business Regulation, §5-102, Annotated Code of Maryland, is no longer exempt, that cemetery and its owners, operators, and employees shall apply for the required permits and registrations within 30 days of the determination.
Regulation .04 Permit—Requirements for Initial Permit of Business.LinkCopy Citation
A.
A corporation, limited liability company, or partnership shall receive a permit to operate a cemetery or to provide burial goods in this State if the corporation, limited liability company, or partnership meets the permit requirements in this regulation.
B.
A corporation, limited liability company, or partnership shall receive a permit from the Office if the entity:
(1)
Completes an application on a form provided by the Director;
(2)
Pays the nonrefundable permit fees under COMAR 09.34.03;
(3)
Provides the name, address, and phone number of each affiliated cemetery or burial goods business;
(4)
Designates a registered cemeterian or registered seller as the responsible party for each affiliated cemetery or burial goods business provided that the registered cemeterian or registered seller may not be designated as the responsible party for more than a combined total of three cemeteries or burial goods businesses;
(5)
Provides a list of the officers, directors, members, partners, agents, and employees of the entity applying for the permit;
(6)
Provides the number of required sales contracts entered into within the business' last 2 fiscal years; and
(7)
Complies with the appropriate financial stability requirements under Regulation .06 of this chapter.
Regulation .05 Registration — Requirements for Initial Registration of Individuals Who Operate Cemeteries or Provide Burial Goods.LinkCopy Citation
A.
An individual shall be registered by the Office if the individual meets the registration requirements of this regulation.
B.
An individual shall be registered with the Office if the individual:
(1)
Completes a registration application supplied by the Office;
(2)
Pays the initial nonrefundable application fee and any additional fees set by the Director under COMAR 09.34.03;
(3)
Is 18 years old or older;
(4)
Is of good character and reputation, and lists the applicant's previous three employers;
(5)
States the name and mailing address of the cemetery or burial goods business with which the applicant is affiliated;
(6)
States whether the cemetery or burial goods business with which the applicant is affiliated is owned or controlled by:
(a)
A partnership;
(b)
A limited liability company;
(c)
A corporation; or
(d)
A sole proprietorship;
(7)
States whether the application is for:
(a)
Registered cemeterian;
(b)
Registered seller;
(c)
Sales counselor; and
(8)
If the applicant is a responsible party, demonstrates financial stability under Regulation .06 of this chapter for the permit or sole proprietor application of the cemetery or burial goods business with which the applicant is affiliated.
C.
Additional Requirements.
(1)
An individual applying for initial registration shall provide the Office with a detailed description of activities including, but not limited to, whether the applicant has:
(a)
Had a license, certification, registration, or permit of the type for which application is being made ever denied, suspended, or revoked by Maryland or any jurisdiction;
(b)
Been convicted of a felony in any state or federal court;
(c)
Been convicted in any state or federal court of a misdemeanor directly related to the ownership or operation of a cemetery or burial goods business;
(d)
Had any civil judgments or settlements within the 5 years before applying for registration which relate directly to the operation of a cemetery or providing burial goods or services;
(e)
Been convicted by a court in this State of violating a usury provision under Commercial Law Article, Title 12, Annotated Code of Maryland, or an unfair and deceptive trade practices provision under Commercial Law Article, Title 13, Annotated Code of Maryland; and
(f)
Filed for bankruptcy.
(2)
Additional Information. An applicant shall submit copies of all:
(a)
Charging documents which were issued and docket entries for convictions which occurred before applying for registration, for a misdemeanor or felony referred to in §C(1) of this regulation;
(b)
Disciplinary actions, judgments, and final orders which occurred or were issued, before applying for registration for any regulatory probation, suspension, or revocation, referred to in §C(1)(a) of this regulation, in Maryland or any jurisdiction; and
(c)
Civil judgments or settlements against the applicant within the past 5 years which relate directly to the operation of a cemetery or providing burial goods.
D.
An individual may not be designated as the responsible party for more than a combined total of three cemeteries or burial goods businesses.
E.
An individual may be issued registrations for affiliations with more than one cemetery or burial goods business if each affiliated cemetery or burial goods business is owned by the same individual or entity.
Regulation .06 Business Application — Financial Stability.LinkCopy Citation
A.
The following are the categories of cemeteries and burial goods businesses for purposes of determining financial stability:
(1)
A for-profit cemetery or a cemetery which sells burial goods making initial application;
(2)
A nonprofit cemetery which does not sell burial goods making initial or renewal application;
(3)
A for-profit cemetery or a cemetery which sells burial goods applying for renewal of permit;
(4)
A burial goods business or new burial goods business making initial application, or existing burial goods business applying for renewal;
(5)
A new cemetery which sells burial goods or new cemetery which does not sell burial goods; and
(6)
A cemetery which no longer sells goods or space and in which an average of five or fewer interments have occurred within the past 3 fiscal years.
B.
To determine financial stability of each category of affiliated cemetery or burial goods business, the responsible party shall:
(1)
Submit an application on a form supplied by the Director;
(2)
Be in good standing with the Maryland Department of Assessments and Taxation or have an equivalent status, as determined by the Director;
(3)
Submit any additional documentation required as set forth in §§C—H of this regulation; and
(4)
If the applicant is a cemetery, state whether the cemetery is organized as a for-profit or nonprofit operation and whether it sells burial goods.
C.
The responsible party for a cemetery described in §A(1) of this regulation shall submit:
(1)
A balance sheet; and
(2)
A review by a certified public accountant retained by the affiliated cemetery, prepared in accordance with generally accepted accounting principles, as to the financial stability of the cemetery.
D.
The responsible party for a cemetery described in §A(2) of this regulation shall submit an affidavit which states that the cemetery does not sell burial goods and has nonprofit status.
E.
The responsible party for a cemetery in §A(3) of this regulation shall submit:
(1)
A comparative balance sheet; and
(2)
A review by a certified public accountant retained by the affiliated cemetery, prepared in accordance with accepted accounting principles, as to the financial stability of the cemetery.
F.
The responsible party for a burial goods business in §A(4) of this regulation shall submit the documents required by §B(1) and (2) of this regulation.
G.
Development Stage Enterprise Financial Sheet.
(1)
The responsible party for a cemetery described in §A(5) of this regulation shall submit a development stage enterprise financial sheet, prepared in accordance with generally accepted accounting principles, by a certified public accountant retained by the affiliated cemetery.
(2)
If the certified public accountant retained by the affiliated cemetery has substantial doubt about the reporting entity's ability to continue in business beyond 1 year from the development stage enterprise financial sheet, the certified public accountant shall specifically reference this concern in the development stage enterprise financial sheet.
H.
The responsible party for a cemetery described in §A(6) of this regulation shall submit an affidavit stating that the cemetery no longer sells space or goods and that there has been an average of five or fewer interments per year in the past 3 fiscal years.
I.
The balance sheet and the comparative balance sheet in this regulation shall include:
(1)
Note disclosures which, if applicable to the affiliated cemetery or burial goods business, shall include:
(a)
A description of how cemetery roadways, garden features, and other features of the cemetery are accounted for, whether as fixed assets and depreciated, or as cost of the grave space inventory and part of cost of sales as spaces are sold;
(b)
The method of providing for allowance for cancellations on installment contracts;
(c)
The method of accounting for developed burial gardens, constructed mausoleum crypt or niche inventories, and related cost of sales;
(d)
Receivables sold with recourse;
(e)
The method of accounting for preconstruction sales of burial gardens, mausoleum crypts, or niche spaces;
(f)
A description of how the obligation for undelivered merchandise sold as preneed is accounted for;
(g)
The method of recognizing preneed sales of services and related costs;
(h)
The nature and amount of any perpetual care assets included in the classified balance sheet, which may or may not be in accordance with generally accepted accounting principles;
(i)
The existence and nature of any nonstatutory trust funds;
(j)
Loans or other amounts receivable from, or payable to, merchandise and service trust funds or perpetual care trust funds not otherwise reported on the face of the classified balance sheet or in the supplementary information; and
(k)
A description of loans or other amounts receivable from, or payable to, shareholders, directors, trustees, or officers; and
(2)
Supplementary information which, if applicable to the affiliated cemetery or burial goods business, shall include:
(a)
Amounts of installment contracts receivable for which customer payments are more than 120 days beyond their scheduled payment dates and the dollar amounts that are beyond the 120 days; and
(b)
Details of liabilities due upon collection of final payment on installment contracts receivable.
J.
The balance sheet and comparative balance sheet, related note disclosures, and supplementary information submitted to the Office shall be that of the most recently ended fiscal year of the affiliated cemetery. The comparative balance sheet shall also include a comparison with the statements submitted for the reported fiscal year in the previous application.
K.
If the certified public accountant has substantial doubt about the reporting entity's ability to continue in business beyond 1 year from the balance sheet date, the certified public accountant shall specifically reference this concern in the review report or related note disclosures, or both.
L.
If the cemetery or burial goods business is owned by a publicly traded company, or is owned by a company or individual that normally reports its financial statements on a consolidated basis, the balance sheet may be prepared on a combined basis for all of its cemeteries or burial goods businesses located in Maryland, only if the publicly traded company, company, or individual that owns multiple cemeteries or burial goods businesses guarantees its obligations to consumers among all of its Maryland properties or businesses that are included in the combined report.
M.
The Office may waive the financial stability requirement of this regulation only if the affiliated cemetery or burial goods business has fulfilled the financial stability requirements of this regulation within the past 2 years.
Regulation .07 Change of Information.LinkCopy Citation
The responsible party shall notify the Office of any change in the information provided in the application for a permit or registration either before or after the issuance of a permit or registration within 1 week from the date of a change.
Regulation .08 Setting of Fees.LinkCopy Citation
All fees shall be set by the Director. The fee schedule is set forth in COMAR 09.34.03.
Regulation .09 Renewal.LinkCopy Citation
A.
A person who is registered or permitted with the Office may renew registration or a permit every 2 years beginning on a date specified by the Office in the following manner:
(1)
Complete the renewal application on a form supplied by the Director;
(2)
Pay the renewal fee set in COMAR 09.34.03;
(3)
Meet the initial registration or permit requirements under Regulations .04, .05, and .06 of this chapter;
(4)
Submit the documentation required by Regulation .06 of this chapter, and (5) If a balance sheet is required, submit a comparative balance sheet, related note disclosures, and supplementary information based on the requirements for a comparative balance sheet of Regulation .06 of this chapter accompanied by a review report prepared by a retained certified public accountant.
B.
Before the expiration date of the registration or permit, a registrant or permit holder shall complete and return the renewal form and renewal fee according to instructions. After the expiration date, if a registrant or permit holder has not yet applied for renewal, the registrant or permit holder is no longer authorized to engage in the operation of a cemetery or to provide burial goods in this State.
C.
If a registrant or permit holder completes and returns the renewal form before the deadline established by the Office, and the Office does not renew the registration or permit before the registration or permit expires, the registrant or permit holder is considered to be actively registered or permitted until receipt from the Office of either a renewed registration or permit or a notice of denial of registration or permit.
D.
If a registrant or permit holder applies for renewal past the renewal deadline established by the Office, the registrant or permit holder shall pay the renewal fee plus the late renewal fee under COMAR 09.34.03.
Regulation .10 Lapsed Registration.LinkCopy Citation
A person who has been registered or permitted by the Office and who has allowed the registration or permit to lapse for at least 6 months may apply for registration or a permit in the following manner:
A.
Complete an initial registration or permit application on a form supplied by the Office;
B.
Pay the initial registration or permit fee and the late renewal fee under COMAR 09.34.03;
C.
Meet the initial registration or permit requirements under Regulations .04, .05, and .06 of this chapter;
D.
Submit the documentation required by Regulation .06 of this chapter;
E.
If a balance sheet is required, submit a comparative balance sheet, related note disclosures, and supplementary information based on the requirements for a comparative balance sheet of Regulation .06 of this chapter accompanied by a review report prepared by a retained certified public accountant; and
F.
Provide a full, written explanation to the Office detailing the reasons why the registration or permit was allowed to expire and why registration or a permit is now sought.
Regulation .11 Hearings.LinkCopy Citation
A.
Registration or Permit Denial. An applicant, registrant, or permit holder applying for an initial or renewal registration or permit may be denied approval subject to the hearing provisions of Business Regulation Article, §5-311, Annotated Code of Maryland, for any of the grounds listed in Business Regulation Article, §5-310, Annotated Code of Maryland.
B.
Hearing Before Director.
(1)
Except as otherwise provided in §B(2)—(6) of this regulation, all contested case hearings before the Director shall be governed by COMAR 09.01.02.
(2)
In addition to the actions provided in COMAR 09.01.02.03C, the Director shall attempt to negotiate a settlement of a complaint between the complainant and a registrant or permit holder. If the Director is unable to negotiate a settlement of a complaint, the Director may, 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.
(3)
An applicant who has been notified that a new or renewal registration or permit has been or may be denied and who requests a hearing before the Director must file the request for a hearing not later than 30 days after the date the notice or proposed action was mailed.
(4)
The Director shall send the hearing notice described in COMAR 09.01.02.07B at least 10 days before the hearing, or, if the parties have agreed to a date for which 10 days notice cannot be given, at the earliest time possible.
(5)
The notice to an applicant that a new or renewal registration or permit has been or may be denied shall state that the proposed action of the Director shall be affirmed if:
(a)
A hearing is not requested within 30 days after the date the notice of proposed action was mailed; or
(b)
The applicant fails to appear for the hearing after requesting a hearing.
(6)
If, after a hearing, the proposed action of the Director is upheld, the appellant shall pay the hearing costs as described in COMAR 09.34.03.03F.
C.
Hearings Delegated to the Office of Administrative Hearings. All contested case hearings delegated to the Office of Administrative Hearings shall be governed by COMAR 09.01.03.
Regulation .12 Display of Registration or Permit.LinkCopy Citation
A registrant or permit holder shall display the registration or permit conspicuously at each business address of the registrant or permit holder.
Regulation .13 Communication from Director — Failure to Respond.LinkCopy Citation
A.
Definition.
(1)
In this regulation, the following term has the meaning indicated.
(2)
Term Defined — Person.
(a)
“Person” has the meaning provided in Business Regulation Article, §1-101(g), Annotated Code of Maryland.
(b)
“Person” includes:
(i)
Any registrant or permit holder under Business Regulation Article, Title 5, Annotated Code of Maryland, and any applicant for a registration or permit to operate a cemetery or crematory, or to provide burial goods, in this State; and
(ii)
Any other person required under the provisions of Business Regulation Article, Title 5, Annotated Code of Maryland, or any regulation in this subtitle, to respond to a communication from the Director.
B.
Duty to Respond.
(1)
If a person receives from the Director or the Office a written communication requesting a response, the person shall respond in writing, by first-class mail, within 30 days of the date of the mailing.
(2)
It is the responsibility of a person to notify the Office in writing if there has been a change in the person’s address.
C.
Failure to respond as required by this regulation may be considered by the Director to be a violation of Business Regulation Article, Title 5, Annotated Code of Maryland.
Chapter annotations
Authority: Business Regulation Article, §§5-204—5-205, 5-301—5-308, and 5-401—5-405, Annotated Code of Maryland
History: Effective date: December 28, 1998 (25:26 Md. R. 1922)
History: Chapter revised effective March 18, 2002 (29:5 Md. R. 503)
History: Regulation .01A amended effective April 29, 2024 (51:8 Md. R. 366)
History: Regulation .02B amended effective April 29, 2024 (51:8 Md. R. 366)
History: Regulation .04B amended effective February 13, 2006 (33:3 Md. R. 241); April 29, 2024 (51:8 Md. R. 366)
History: Regulation .05C amended effective May 8, 2017 (44:9 Md. R. 438)
History: Regulation .05D adopted effective February 13, 2006 (33:3 Md. R. 241)
History: Regulation .05D amended effective April 29, 2024 (51:8 Md. R. 366)
History: Regulation .05E adopted effective February 13, 2006 (33:3 Md. R. 241)
History: Regulation .06B amended effective May 8, 2017 (44:9 Md. R. 438)
History: Regulation .11 amended effective November 23, 2006 (33:23 Md. R. 1794)
History: Regulation .13 adopted effective April 29, 2024 (51:8 Md. R. 366)