Florida Statutes

PART V 11 MONUMENT ESTABLISHMENTS 12 Section 118. Section 497.361, Florida Statutes, is 13 renumbered as section 497.550, Florida Statutes, and 14 amended to read: 15 (Substantial rewording of section. See 16 s. 497.361, F.S., for present text.) 17 497.550 Licensure of monument establishments required; 18 procedures and criteria.-- 19 (1) LICENSE REQUIRED.--No person shall conduct, 20 maintain, manage, or operate a monument establishment in this 21 state unless the monument establishment is licensed pursuant 22 to this part. 23 (2) APPLICATION PROCEDURES.--A person seeking 24 licensure as a monument establishment shall apply for such 25 licensure using forms prescribed by rule. 26 (a) The application shall require the applicant's name 27 and address, and the name and address of all principals of the 28 applicant. The application shall require the applicant's 29 social security number, or if the applicant is an entity, its 30 federal tax identification number. 246 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 (b) The application may require information as to the 2 applicant's financial resources, and may require information 3 as to the experience of the applicant and its principals in 4 the monument establishment business or death care industry. 5 (c) The application shall require the applicant to 6 disclose whether the applicant or any of its principals has 7 ever been convicted or found guilty of, or entered a plea of 8 no contest to, regardless of adjudication, any crime in any 9 jurisdiction. 10 (d) The application shall require the applicant to 11 disclose whether the applicant or any of its principals has 12 ever had a license or the authority to practice a profession 13 or occupation revoked, suspended, fined, denied, or otherwise 14 acted against or disciplined, by the licensing authority of 15 any jurisdiction. 16 (e) The application shall require the applicant's 17 principals to provide fingerprints in accordance with part I 18 of this chapter. 19 (f) The applicant shall be a natural person at least 20 18 years of age, a corporation, a partnership, or a limited 21 liability company formed prior to January 1, 2005 which 22 limited liability company already holds a license under this 23 chapter. 24 (g) The applications shall require the applicant to 25 demonstrate that the applicant has, or will have before 26 commencing operations, the facilities required under this 27 part. 28 (h) The application shall be signed by the applicant 29 if a natural person, or by the president of an applicant that 30 is a corporation. 247 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 (i) The application shall be accompanied by an 2 application fee as determined by licensing authority rule but 3 not to exceed $500. 4 (3) ACTION CONCERNING APPLICATIONS.--A duly completed 5 application for licensure as a monument establishment, 6 accompanied by the required application fee, shall be approved 7 unless there is shown by clear and convincing evidence that 8 the applicant will not, before commencing operations, have the 9 facilities required by this part or that issuance of the 10 license would pose an unreasonable risk to the public because 11 one or more of the following factors: 12 (a) The applicant's lack of experience. 13 (b) The applicant's lack of financial resources. 14 (c) The criminal or disciplinary record of applicant 15 or its principals. 16 (d) A demonstrated history of violations of the laws 17 of this state by applicant or its principals regarding the 18 funeral or cemetery business or other business activities. 19 (e) A demonstrated history of lack of trustworthiness 20 or integrity on the part of the applicant or its principals. 21 (4) PROBATIONARY STATUS.--It is the policy of this 22 state to encourage competition for the public benefit in the 23 monument establishment business by, among other means, the 24 entry of new licensees into the monument establishment 25 business. To facilitate issuance of licenses concerning 26 applications judged by the licensing authority to be 27 borderline as to qualification for licensure, the licensing 28 authority may issue new monument establishment licenses on a 29 probationary basis, subject to conditions specified by the 30 licensing authority on a case-by-case basis, which conditions 31 may impose special monitoring, reporting, and restrictions on 248 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 operations for up to the first 24 months of licensure, to 2 ensure the licensee's responsibleness, competency, and 3 financial stability. However, no such probationary license 4 shall be issued unless the licensing authority determines that 5 issuance would not pose an unreasonable risk to the public, 6 and the licensing authority must within 24 months after 7 issuance of the license either remove the probationary status 8 or determine that the licensee is not qualified for licensure 9 and institute proceedings for revocation of licensure. 10 (5) LICENSE NOT TRANSFERABLE OR ASSIGNABLE.--A 11 monument establishment license shall not be transferable or 12 assignable. 13 Section 119. Section 497.551, Florida Statutes, is 14 created to read: 15 497.551 Renewal of monument establishment licensure.-- 16 (1) A monument establishment license must be renewed 17 biennially by the licensee. 18 (2) A monument establishment licensee that does not 19 hold a preneed sales license as of 90 days prior to the date 20 its monument establishment license renewal is due, shall renew 21 its monument establishment license by payment of a renewal fee 22 established by rule not to exceed $250. 23 (3) A monument establishment licensee which as of 90 24 days prior to its monument establishment license renewal date 25 also holds a preneed sales license issued under this chapter, 26 shall renew its monument establishment license by payment of a 27 renewal fee determined by its total gross aggregate at-need 28 and preneed retail sales for the 12-month period ending 2 full 29 calendar months prior to the month in which the renewal is 30 required, as follow: 31 (a) Total sales of $1 to $50,000, renewal fee $1,000. 249 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 (b) Total sales $50,001 to $250,000, renewal fee 2 $1,500. 3 (c) Total sales of $250,001 to $500,000, renewal fee 4 $2,000. 5 (d) Total sales over $500,000, renewal fee $2,500. 6 (4) Rules may be adopted providing procedures, forms, 7 and uniform timeframes for monument establishment license 8 renewals. 9 Section 120. Section 497.552, Florida Statutes, is 10 created to read: 11 497.552 Required facilities.--Effective January 1, 12 2006, a monument establishment shall at all times have and 13 maintain a full-service place of business at a specific street 14 address or location in Florida complying with the following 15 requirements: 16 (1) It shall include an office for the conduct of its 17 business including the reception of customers. 18 (2) It shall include a display area in which is 19 displayed a selection of monuments, markers, and related 20 products for inspection by customers prior to sale. 21 (3) Its office and display area shall normally be open 22 to the public weekdays during normal business hours. 23 (4) It shall have facilities for inscribing monuments, 24 and equipment to deliver and install markers and monuments. 25 (5) It shall comply with any local government zoning 26 regulations and may not be located on tax-exempt property. 27 Section 121. Section 497.553, Florida Statutes, is 28 created to read: 29 497.553 Regulation of monument establishments.-- 30 (1) The Department of Financial Services shall 31 establish and implement an inspection program for all monument 250 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 establishments in accordance with the requirements of this 2 act. 3 (2) Commencing January 1, 2006, all retail sales by 4 monument establishments shall be on a sales agreement form 5 filed by the monument establishment with and approved by the 6 licensing authority. Sales agreement forms must provide a 7 complete description of any monument, marker, or related 8 product to be delivered, and shall prominently and clearly 9 specify the agreed date for delivery and installation. 10 Procedures for submission and approval of such forms shall be 11 established by rule. 12 (3) Commencing January 1, 2006, all monument 13 establishments shall have written procedures for the receipt, 14 investigation, and disposition of customer complaints, and 15 shall ensure that their staff who receive or process such 16 complaints are familiar with and follow such procedures. 17 (4) Commencing January 1, 2006, all monument 18 establishments shall maintain for inspection by the department 19 records of written complaints received by the monument 20 establishment. Such complaint records shall include a 21 chronological log of written complaints received, in which the 22 name and address of each complainant and date of complaint is 23 entered consecutively within 10 business days of receipt of 24 each complaint. The licensing authority may by rule establish 25 requirements regarding the format of complaint logs, including 26 whether they may be maintained electronically, or shall be 27 maintained by pen and ink on paper; the licensing authority 28 may by order direct a licensee to maintain complaint logs by 29 pen and ink in writing. The original or complete copy of each 30 written complaint received by a monument establishment, and 31 all subsequent correspondence related to such complaint, shall 251 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 be maintained by the monument establishment, for inspection by 2 the department, for the longer of 24 months or 12 months after 3 the most recent department inspection during which the 4 complaint was in the monument establishment's complaint 5 records and available for the department's review. 6 (5) Commencing January 1, 2006, the failure of a 7 monument establishment to deliver and install a purchased 8 monument or marker by the date agreed in the sales agreement 9 shall entitle the customer to a full refund of all amounts 10 paid by the customer for the monument and its delivery and 11 installation, unless the monument establishment has obtained a 12 written agreement from the customer extending the delivery 13 date. Such refund shall be made within 30 days after receipt 14 by the monument establishment of the customer's written 15 request for a refund. This subsection does not preclude the 16 purchase and installation of a new monument from any other 17 registered monument establishment or preneed sales licensee. 18 Section 122. Section 497.554, Florida Statutes, is 19 created to read: 20 497.554 Monument establishment sales 21 representatives.-- 22 (1) LICENSE REQUIRED.--Each person selling monuments, 23 markers, or related products for a monument establishment must 24 be licensed as a monument establishment sales agent. This 25 requirement shall apply notwithstanding that such person is 26 already registered or licensed in another capacity pursuant to 27 this chapter. 28 (2) APPLICATION PROCEDURES.--Licensure as an monument 29 establishment sale agent shall be by submission of an 30 application for licensure to the department on a form 31 prescribed by rule. 252 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 (a) The application shall require the applicant to 2 state her or his name, residence and business address, 3 business phone number, social security number, and the name 4 and address of the monument establishment for which the 5 applicant will be selling. 6 (b) The application shall require the applicant to 7 disclose whether the applicant has ever been convicted or 8 found guilty of, or entered a plea of no contest to, 9 regardless of adjudication, any crime in any jurisdiction. 10 (c) The application shall require the applicant to 11 disclose whether the applicant has ever had a license or the 12 authority to practice a profession or occupation revoked, 13 suspended, fined, denied, or otherwise acted against or 14 disciplined, by the licensing authority of any jurisdiction. 15 (d) The application shall be signed by the applicant 16 and the owner or an officer of the sponsoring monument 17 establishment. 18 (e) The monument establishment sales agent application 19 shall be accompanied by a fee of $50. The licensing authority 20 may from time to time increase the application fee by rule but 21 not to exceed $200. 22 (3) APPROVAL OR DENIAL OF APPLICATION.-- 23 (a) If a properly completed application accompanied by 24 the required application fee indicates the applicant has no 25 criminal or disciplinary record, the requested licensure shall 26 be deemed granted upon receipt of the duly completed 27 application by the department. 28 (b) If the application indicates the applicant has any 29 criminal or disciplinary history, licensure shall be granted 30 unless the licensing authority determines that the licensure 31 of the applicant would pose a substantial threat to the 253 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 welfare of the public with which the applicant might be 2 dealing as a monument establishment sales agent. Rules may be 3 adopted providing criteria for evaluating criminal and 4 disciplinary records as they may affect applications for 5 licensure under this section. 6 (4) TERMINATION OF AUTHORITY.-- 7 (a) Once issued, a monument establishment sales agent 8 license of an agent not licensed to make preneed sales shall 9 remain in effect without renewal until surrendered, or the 10 sponsoring monument establishment terminates the agent's 11 authority to sell on behalf of that monument establishment, or 12 the license is revoked or suspended by the licensing authority 13 for cause. 14 (b) The monument establishment whose officer signed 15 the sales agent application shall terminate that agent's 16 authority to sell on behalf of that monument establishment, 17 and the monument establishment in writing shall advise the 18 licensing authority of such termination within 30 days after 19 the termination. 20 (5) RESPONSIBILITY FOR AGENTS.--The sponsoring 21 monument establishment shall be responsible for the activities 22 of its sales agents concerning their sales activities and 23 shall reasonably supervise such activities. 24 (6) AGENT LICENSE REQUIRED.--A person selling 25 monuments, markers, and related products on a preneed basis 26 for a monument establishment that has been issued a preneed 27 sales license must also obtain authorization as a preneed 28 sales agent under part IV of this chapter. 29 Section 123. Section 497.555, Florida Statutes, is 30 created to read: 254 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 497.555 Required rules.--Rules shall be adopted 2 establishing minimum standards for access to all cemeteries by 3 licensed monument establishments, for the purpose of 4 delivering and installing markers and monuments. In all cases, 5 cemeteries must comply with these minimum standards. 6 Section 124. Section 497.556, Florida Statutes, is 7 created to read: 8 497.556 Requirements relating to monument 9 establishments.-- 10 (1) INITIAL LICENSURE.--No monument establishment 11 shall be issued a license to engage in preneed sales under 12 this chapter unless the monument establishment shall, in 13 addition to the other requirements of this part for issuance 14 of a preneed license, meet the following requirements: 15 (a) The monument establishment or its principals shall 16 demonstrate at least 3 years of experience in the operation of 17 a monument establishment. 18 (b) The monument establishment shall demonstrate that 19 it has a net worth of at least $10,000 pursuant to generally 20 accepted accounting principles. If the monument establishment 21 applying for preneed licensure cannot demonstrate a net worth 22 of at least $10,000, the licensing authority may in accordance 23 with subsection (3) accept alternative factors or arrangements 24 as substituting for the $10,000 net worth requirement, and 25 issue the license on that basis. A monument establishment 26 which is issued a preneed sales license based upon subsection 27 (3) shall be subject to subsection (2) regarding subsequent 28 renewals of its preneed sales license. 29 (2) RENEWAL LICENSURE.--Each monument establishment 30 seeking to renew its preneed sales license shall demonstrate, 31 in addition to the other requirements of part IV of this 255 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 chapter relating to renewal of preneed licenses, a net worth 2 of $10,000 as of the year end for its fiscal year most 3 recently concluded prior to the renewal date. Such net worth 4 shall be demonstrated in financial statements prepared in 5 accordance with generally accepted accounting principles and 6 filed with the licensing authority. If the monument 7 establishment seeking renewal of its preneed licensure cannot 8 demonstrate the required net worth the licensing authority may 9 in accordance with subsection (3) accept alternative factors 10 or arrangements as substituting for the $10,000 net worth 11 requirement and renew the license for that renewal cycle on 12 that basis. 13 (3) ALTERNATIVES TO $10,000 NET WORTH REQUIREMENT.-- 14 (a) A monument establishment that cannot demonstrate 15 the required $10,000 net worth may voluntarily submit to the 16 licensing authority and request acceptance of alternative 17 evidence of financial stability and resources or agree to 18 additional oversight in lieu of the required net worth. Such 19 additional evidence or oversight may include, as appropriate, 20 one or more of the following: 21 1. An agreement to submit monthly financial statements 22 of the entity. 23 2. An agreement to submit quarterly financial 24 statements of the entity. 25 3. An appraisal of the entity's property or broker's 26 opinion of the entity's assets. 27 4. A credit report of the entity or its principals. 28 5. A subordination-of-debt agreement from the entity's 29 principals. 30 6. An indemnification or subrogation agreement binding 31 the entity and its principals. 256 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 7. A guarantee agreement for the entity from its 2 principals. 3 8. A written explanation of past financial activity. 4 9. Submission of a 12-month projected business plan 5 that includes: 6 a. A statement of cash flows. 7 b. Pro forma income statements, with sources of 8 revenues identified. 9 c. Marketing initiatives. 10 10. Submission of previous department examination 11 reports. 12 11. An agreement of 100 percent voluntary trust by the 13 entity. 14 (b) The licensing authority may accept such 15 alternative evidence or arrangements in lieu of the required 16 net worth only if the licensing authority determines such 17 alternative evidence or arrangements are an adequate 18 substitute for $10,000 of net worth and that acceptance would 19 not substantially increase the risk to existing or future 20 customers of nonperformance by the monument establishment on 21 its retail sales agreements. 22 (4) BRANCH OPERATIONS.--A licensed monument 23 establishment under common control with another monument 24 establishment, funeral establishment, or licensed cemetery, 25 which other monument establishment, funeral establishment, or 26 licensed cemetery holds a preneed sales license in good 27 standing, may engage in preneed sales under and as a branch of 28 that other entity's preneed sales license, if there is 29 compliance with the usual requirements of this part for branch 30 operation, and the entity holding the preneed sales license 31 executes and files with the licensing authority a written 257 CODING: Words stricken are deletions; words underlined are additions. ENROLLED 2004 Legislature CS for CS for SB 528, 1st Engrossed 1 agreement in a form acceptable to the licensing authority, 2 guaranteeing performance of the preneed sales of the branch. 3 Section 125. Part VI of chapter 497, Florida Statutes, 4 consisting of sections 497.601, 497.602, 497.603, 497.604, 5 497.605, 497.606, 497.607, and 497.608, is created to read: