To repeal rules that are no longer in effect, to implement a new rule, and to update the forms that are incorporated by reference under Rule 69K-1.001, F.A.C.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Funeral, Cemetery, and Consumer Services

RULE NOS.:RULE TITLES:

69K-7.009Reporting Requirements for Preneed Licensees Filing an Initial Application to Utilize a Letter of Credit or Surety Bond in Lieu of Maintaining a Trust Fund

69K-7.0095Preneed Trust Fund; Financial Reports

69K-7.012Criteria for Filing a Surety Bond in Lieu of Maintaining a Trust Fund

69K-7.0125Alternative Form of Security for Permanent Outer Burial Receptacle Manufacturers

69K-7.013Procedures for Filing Claim with the Board

PURPOSE AND EFFECT: To repeal rules that are no longer in effect, to implement a new rule, and to update the forms that are incorporated by reference under Rule 69K-1.001, F.A.C.

SUMMARY: The proposed rule amendments will repeal rules that include statutory references that are no longer in effect regarding letters of credit and surety bonds, implement a new rule for reporting requirements under section 497.458(1)(k), F.S., update existing forms that are incorporated under Rule 69K-1.001, F.A.C., and incorporate a new form under Rule 69K-1.001, F.A.C., for trustees to use for submissions of financial reports when acting as a trustee for a preneed licensee’s preneed trust.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an economic analysis of the potential impact of the proposed rule and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 497.103(2)(c), 497.283(2)(c), 497.458(1)(e), (1)(k), 497.462(9), FS.

LAW IMPLEMENTED: 497.283, 497.458, 497.462(2)(a), FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Friday, July 26, 2019, 2:00 p.m.

PLACE: Room 320, Pepper Building, 111 W. Madison Street, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Ellen Simon at 200 East Gaines Street, Tallahassee, Florida 32399-0361, [phone], or [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ellen Simon, Assistant Director, Division of Funeral, Cemetery, and Consumer Services (please see contact information in paragraph above).

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69K-7.009 Reporting Requirements for Preneed Licensees Filing an Initial Application to Utilize a Letter of Credit or Surety Bond in Lieu of Maintaining a Trust Fund.

Rulemaking Authority 497.103, 497.461, 497.462(2) FS. Law Implemented 497.458(1), 497.459, 497.460, 497.461, 497.462 FS. History–New 3-20-91, Formerly 3D-30.037, Amended 10-25-95, 5-27-98, Formerly 3F-7.009, Amended 2-9-16, Repealed      .

 

69K-7.0095 Preneed Trust Fund; Financial Reports.

(1) All preneed licensees shall ensure that any entity that served as trustee beginning January 1, 2017, or thereafter for the preneed licensee’s preneed trust, pursuant to sections 497.458(1) and (2), F.S., shall, by no later than April 1st of the following calendar year, file an annual report on Form DFS-N1-2183, Preneed Trust Fund, Annual Trustee Report (Effective 03/19), for all or portion of the calendar year in which it acted as trustee of the trust. This form is incorporated by reference in Rule 69K-1.001, F.A.C., and can be obtained via the Department’s website at https://myfloridacfo.com/Division/funeralcemetery/.

(2) The trustee may also submit the annual report in a format that will be acceptable to the Division if it provides no less information than that required by Form DFS-N1-2183. Additionally, as part of the annual report, the preneed licensee and any entity that served as trustee for the preneed licensee’s trust in a calendar year must maintain a list of receipts showing the date and amount of any disbursement made during the applicable calendar year, and retain such documentation for a period of at least five (5) years.

Rulemaking Authority 497.103(2)(c), 497.458(1)(k), 497.462(9) FS. Law Implemented 497.458, 497.462 FS. History – New               .

 

69K-7.012 Criteria for Filing a Surety Bond in Lieu of Maintaining a Trust Fund.

Rulemaking Authority 497.103, 497.461(4) FS. Law Implemented 497.461, 497.462 FS. History–New 3-20-91, Formerly 3D-30.039, Amended 10-25-95, 7-22-97, 8-2-01, Formerly 3F-7.012, Amended 2-9-16, Repealed                .

 

69K-7.0125 Alternative Form of Security for Permanent Outer Burial Receptacle Manufacturers.

(1) Pursuant to sSections 497.461(12) and 497.283(2)(c), F.S., manufacturers of permanent outer burial receptacles shall be permitted to utilize the alternative form of security as provided in Section 497.283(2), F.S., and this rule, in connection with the sale of permanent outer burial receptacles sold to pre-need sellers in Florida. For purposes of this rule, a “permanent outer burial receptacle” as referred to in sSection 497.283(2)(c), F.S., has the same meaning as an “outer burial container,” as defined in sSection 497.005(5548), F.S.

(2) The alternative form of security available to all permanent outer burial receptacle manufacturers who supply permanent outer burial receptacles to pre-need sellers in Florida, shall be in compliance with cChapter 497, F.S., and shall provide for an Alternative Manufacturers’ Trust, together with a Manufacturers’ Delivery Surety/Guarantee, defined as follows:

(a) through (b) No change.

(c) Manufacturers’ Delivery Surety/Guarantor Qualification.

1. No change.

2. Any Manufacturers’ Delivery Surety/Guarantor approved by the Department Board who wishes to utilize this rule shall:

a. No change.

b. Submit its financial statements to the Board on an annual basis pursuant to Sections 497.461(13)-(16), F.S.;

b.c. File a copy of all forms, certificates, guarantees and trust agreements, and all changes or modifications thereof, with to the Department Board, for review as to legal sufficiency; and

c.d. Guarantee to the pre-need seller pursuant to this rule that its permanent outer burial receptacle products will be available for delivery at any time of need.

3. No change.

Rulemaking Specific Authority 497.103, 497.283(2)(c), 497.458(1)(e) FS. Law Implemented 497.283(2)(c) FS. History–New 6-15-95, Amended 3-5-01, Formerly 3F-7.0125,                            .

 

69K-7.013 Procedures for Filing a Claim through with the Department Board.

A buyer of preneed merchandise or services who does not receive such services or merchandise due to the economic failure, closing, or bankruptcy of the preneed licensee which has submitted a surety bond or letter of credit to the Department Board in lieu of utilizing a preneed trust fund may file a claim through with the Department Board as provided by section paragraph 497.462(2)(c)(3)(a), F.S. The name and address of the surety company will shall be provided by the Department. Once the requirements of section paragraph 497.462(3)(a), F.S., have been met, the purchaser of preneed merchandise or services must file the claim in the following manner:

(1) Submit to the Department Board Form DFS-C-3, Letter of Credit/Surety Bond Claim Form (Rev. 11/18), which is hereby incorporated by reference in Rule 69K-1.001, F.A.C.,  (effective 6-21-01) and can be obtained via the Department’s website at https://myfloridacfo.com/Division/funeralcemetery/ available at the Department of Financial Services, Division of Funeral, Cemetery, and Consumer Services, 200 East Gaines Street, Tallahassee, Florida 32399-0361;

(2) Attach a copy of the preneed contract for merchandise or services that which is the subject of the claim, and provide documentation evidencing the purchaser’s payment for the merchandise or services; and

(3) Submit evidence that the purchaser has made reasonable attempts to have the preneed licensee deliver the merchandise or perform the service.

Rulemaking Authority 497.103, 497.462(910) FS. Law Implemented 497.462(23)(a) FS. History–New 3-20-91, Formerly 3D-30.040, Amended 6-21-01, Formerly 3F-7.013,                            .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Ellen Simon

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: CFO Jimmy Patronis

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: July 01, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 14, 2019