Michigan Guide to the Cemetery Regulation Act

A cemetery means one or combination of more than one of the following:

• A burial ground for earth internments
• A mausoleum for crypt entombments
• A crematory for the cremation of human remains
• A columbarium for the inurnment of cremated remains

Section of the Act: MCL 456.522

A person shall not establish a cemetery without a valid permit or operate an existing cemetery except under a valid registration issued under this act. 

If a person proposes to purchase or acquire a controlling interesting in an existing cemetery company, that person shall first apply to the commissioner for a formal approval of a proposed change of control.

Section of the Act: MCL 456.532

To apply for a registration to establish a new cemetery, the applicant must apply through MiCLEAR, the website used by the Bureau to facilitate licensing under the Act. Instructional Guides for the application are included on the MiCLEAR website. The application shall be accompanied by a nonrefundable investigation fee of $1,500.00.

Sections of the Act: MCL 456.529(9), MCL 456.532, MCL 456.533, MCL 456.534
Rule: R 456.1201

Registrations expire on July 1 of each year. All renewal applications must be submitted through the MiCLEAR portal and require a fee of $20.00. There are instructional guides on the main MiCLEAR page with step-by-step instructions on how to renew your registration.

Sections of the Act: MCL 456.531, MCL 456.535

A person who proposes to purchase or otherwise acquire a controlling interest in an existing cemetery company shall first apply to the commissioner for a certificate of approval of a proposed change of control of a cemetery company. Change of control applications should be submitted through MiCLEAR . There is a $1,500 investigation fee for an application for a purchase or change of control of a cemetery. 

Section of the Act: MCL 456.532
Rule: R 456.1202

A cemetery owned and operated by a municipal corporation, church, or religious institution is exempt from the Cemetery Regulation Act. However, a municipal corporation may pass ordinances necessary for regulating that municipal corporation’s cemeteries. 

A cemetery which meets all of the following is exempt from the fee provisions of this act and may be exempt from the endowment care trust fund requirements:

• It is a cemetery for earth interment of 10 acres or less in size
• It is owned and operated entirely and exclusively by an existing nonprofit entity, and
• A burial has taken place before September 15, 1968.

The Act and rules specify books and records that registrants are required to maintain. Each registrant is required to maintain accurate, complete, and legible records of any books, contracts, records or documents pertaining to, prepared in, or generated by the cemetery  operation.

The records should include, but are not limited to, all of the following:

• Forms
• Reports
• Accounting records
• Ledgers
• Internal audit records
• Correspondence
• Personnel records
• Receipts journal
• Funding and disbursement journals for each trust

Each cemetery must establish and maintain an irrevocable endowment and perpetual care trust fund. Each month, not less than 15% of all proceeds received during the prior month from the sales of burial rights, entombment rights, or columbarium rights shall be deposited with the trustee for inclusion in the endowment and perpetual care trust fund. No total deposit for a single burial right sale or assignment shall be less than $20.00.

The trustee of the irrevocable endowment and perpetual care trust fund must be a regulated financial institution with trustee powers. A regulated financial institution is defined in the act to mean a state or nationally charted bank, savings and loan association or savings bank, credit union, trust company, or other state or federally chartered lending institution, or a regulated affiliate or regulated subsidiary. 

The cemetery must notify the commissioner in writing at least 14 days before the effective date of an appointment of a trustee. The agreement with the trustee must provide that the investing of the assets are subject to the Michigan Prudent Investor Rule (1998 PA 386, sections 1501 to 1512 and 7803). The endowment and perpetual care trust fund agreement shall include reference to all of the following:

No portion of the interest or income of the funds required to be in the trust may be used directly or indirectly for salaries or other payments to the officers, directors, partners, members, or managers of the entity owning the cemetery.

The income and interest from the fund may be paid only to the persons in possession, management, operation, and control of the grounds and structures intended to benefit from the fund. The sole use of the income and interest from the fund shall be for the endowment and perpetual care trust of the cemetery specifically intended to benefit from the fund. The trust shall be governed by state law.

More specific requirements regarding the investment of trust funds are included in MCL 456.536.

The funds deposited into an endowment and perpetual care trust fund shall be held in perpetuity by the trustee and may only be distributed to the cemetery upon order of a court. The fees and costs of the trustee may be paid from the principal of the trust. Interest or income earned on the deposited funds shall be used only for endowment and perpetual care. A cemetery must maintain records showing that interest from the endowment and perpetual care trust fund is used exclusively for endowment and perpetual care. Endowment and perpetual care means all general work necessary to keep the cemetery property in a presentable condition at all times, including, but not limited to:

The cutting of grass at reasonable intervals;
The raking, cleaning, filling, seeding and sodding of graves;
The replacement, pruning, or removal of shrubs and trees in order to assure access to interment rights; and
The repair and maintenance of enclosures, buildings, drives, walks, and the various memorial gardens.

Sections of the Act: MCL 456.522, MCL 456.536
Rule: R 456.1401

A cemetery must annually submit a Cemetery Annual Report to the Bureau on or before June 30th.

This Report provides data regarding the endowment and perpetual care trust fund for the previous calendar year along with assurances regarding internal controls. The Report should be prepared by the Registrant and attested to or certified by a Michigan-licensed CPA on the form provided by the Bureau.

If you hold a Crematory Registration, you need to submit a Crematory Annual Report.

Report Forms and Instructions on how to submit an annual report are available here. Once completed, these forms will only be accepted if they are submitted through the Registrant’s MiCLEAR account.

Registrants may submit a request to extend the deadline for submission for not more than 90 days. Extension requests should be submitted through the Registrant’s MiCLEAR account before June 15. Instructions how to submit an annual report extension can be found here.

Questions regarding the annual reports can be directed to the Securities and Audit Division.

Email: LARA-CSCL-Securities-Audit@michigan.gov
Phone: 517-335-5237
Fax: 517-763-0039

Section of the Act: MCL 456.536
Rule: R 456.1701, R456.1702

If the cemetery sells prepaid contracts for cemetery merchandise or services, they must comply with the Prepaid Funeral and Cemetery Sales Act, 1986 PA 255.

Preneed contracts that were entered into before January 1, 2005 are subject to the Merchandise Trust Fund requirements of MCL 456.536.

Section of the Act: MCL 456.536
Rule: R456.1501, R456.1502, R456.1503