Tenn. Code Ann. § 46-1-301 — TN Code / Title 46 / Chapter 1 / Section 46-1-301
Powers and duties of commissioner
Status: in_force

(a) The commissioner is responsible for administering and enforcing this chapter. (b) The commissioner may promulgate rules and regulations that are reasonably necessary to effectuate the purposes of this chapter. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (c) The commissioner may seek relief at law or equity to restrain or enjoin any act or practice in violation of this chapter, or of any rule and regulation promulgated for the administration or enforcement of this chapter. Jurisdiction is conferred upon the chancery and circuit courts of this state to hear and determine such a suit. No bond is required for the prosecution of the suit or for the issuance of an injunction. Acts 1992, ch. 922, § 1; 1994, ch. 875, § 1; 2003, ch. 81, § 6; T.C.A. § 46-1-108 ; Acts 2006, ch. 1012, § 4; 2012, ch. 560, § 2.
(a) The commissioner is responsible for administering and enforcing this chapter.
(b) The commissioner may promulgate rules and regulations that are reasonably necessary to effectuate the purposes of this chapter. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) The commissioner may seek relief at law or equity to restrain or enjoin any act or practice in violation of this chapter, or of any rule and regulation promulgated for the administration or enforcement of this chapter. Jurisdiction is conferred upon the chancery and circuit courts of this state to hear and determine such a suit. No bond is required for the prosecution of the suit or for the issuance of an injunction.
Acts 1992, ch. 922, § 1; 1994, ch. 875, § 1; 2003, ch. 81, § 6; T.C.A. § 46-1-108 ; Acts 2006, ch. 1012, § 4; 2012, ch. 560, § 2.
Tenn. Code Ann. § 46-6-104 — TN Code / Title 46 / Chapter 6 / Section 46-6-104
Construction - Expenditure of funds
Status: in_force

This chapter shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to this chapter unless the funds are specifically appropriated by the general appropriations act or otherwise made available in accordance with § 46-6-101 . Acts 1987, ch. 309, § 3.
This chapter shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to this chapter unless the funds are specifically appropriated by the general appropriations act or otherwise made available in accordance with § 46-6-101 .
Acts 1987, ch. 309, § 3.
Tenn. Code Ann. § 46-4-103 — TN Code / Title 46 / Chapter 4 / Section 46-4-103
Suits for termination of use of land, removal and reinterment and for disposal of land - Municipal authority extended
Status: in_force

(a) Any interested person or persons, and/or any county in this state in which a burial ground is situated, and/or any municipality in this state if the burial ground is situated in the municipality or within one (1) mile of the lawful corporate limits of the municipality and not beyond the limits of the county in which any part of the municipality is situated and not within the lawful corporate limits of any other municipality in Tennessee, may bring or join in a suit in the chancery court of the county in which the burial ground is situated, for the following purpose or purposes: (1) To have the remains of all deceased persons buried in the burial ground removed from the burial ground and reburied in a suitable repository to be obtained for that purpose before their removal from the burial ground; (2) To terminate the use of, and all rights and easements to use, the ground as a burial ground, and all rights and easements incident or appurtenant to the ground as a burial ground; and (3) Thereupon, to partition or sell for partition the ground if the court finds that it belongs to two (2) or more persons and if any one (1) or more of the owners applies for partition. The authority of all municipalities in this state is extended, for the sole purpose of bringing or joining in the suit by the municipality, but for no other purpose, to a distance of one (1) mile from the lawful corporate limits of the municipality but not beyond the limits of the county in which any part of the municipality is situated and not so as to come within the lawful corporate limits of any other municipality of this state. (b) In the suit, all interested persons who are not complainants shall be made defendants, and the owner or owners of the land or of any right of reversion or other right or interest in the land, if the owner or owners shall be or include other than the interested persons, shall also be made defendants. Interested persons who are minors or otherwise incompetent or under disability may become complainants by guardian or next friend. All known defendants who are minors or otherwise incompetent or under disability shall be represented by guardian ad litem. Nonresident and unknown defendants may be proceeded against by order of publication, and publication, in the manner provided by law. (c) (1) At least thirty (30) days prior to any hearing on a suit initiated pursuant to this section, the complainant shall file notice with the Tennessee historical commission. The notice shall include the approximate age of the burial ground and either: (A) The name of the complainant, the location of the burial ground, and, if discernable, the name of any person interred at the burial ground; or (B) An exact copy of the complaint filed in the chancery court. (2) The Tennessee historical commission shall post filed notices on its website. Notices shall be posted in chronological order by county and updated at least monthly. The Tennessee historical commission may archive notices annually. (3) Notwithstanding subdivisions (c)(1) and (2), any notice concerning the removal of Native American Indian human remains shall be filed according to title 11, chapter 6, and must not be posted on the website of the commission. Amended by 2018 Tenn. Acts, ch. 1032,s 1, eff. 7/1/2018. Acts 1949, ch. 15, § 3; mod. C. Supp. 1950, § 5379.3 (Williams, § 9720.3); T.C.A. (orig. ed.), § 46-403.
(a) Any interested person or persons, and/or any county in this state in which a burial ground is situated, and/or any municipality in this state if the burial ground is situated in the municipality or within one (1) mile of the lawful corporate limits of the municipality and not beyond the limits of the county in which any part of the municipality is situated and not within the lawful corporate limits of any other municipality in Tennessee, may bring or join in a suit in the chancery court of the county in which the burial ground is situated, for the following purpose or purposes: (1) To have the remains of all deceased persons buried in the burial ground removed from the burial ground and reburied in a suitable repository to be obtained for that purpose before their removal from the burial ground; (2) To terminate the use of, and all rights and easements to use, the ground as a burial ground, and all rights and easements incident or appurtenant to the ground as a burial ground; and (3) Thereupon, to partition or sell for partition the ground if the court finds that it belongs to two (2) or more persons and if any one (1) or more of the owners applies for partition. The authority of all municipalities in this state is extended, for the sole purpose of bringing or joining in the suit by the municipality, but for no other purpose, to a distance of one (1) mile from the lawful corporate limits of the municipality but not beyond the limits of the county in which any part of the municipality is situated and not so as to come within the lawful corporate limits of any other municipality of this state.
(1) To have the remains of all deceased persons buried in the burial ground removed from the burial ground and reburied in a suitable repository to be obtained for that purpose before their removal from the burial ground;
(2) To terminate the use of, and all rights and easements to use, the ground as a burial ground, and all rights and easements incident or appurtenant to the ground as a burial ground; and
(3) Thereupon, to partition or sell for partition the ground if the court finds that it belongs to two (2) or more persons and if any one (1) or more of the owners applies for partition. The authority of all municipalities in this state is extended, for the sole purpose of bringing or joining in the suit by the municipality, but for no other purpose, to a distance of one (1) mile from the lawful corporate limits of the municipality but not beyond the limits of the county in which any part of the municipality is situated and not so as to come within the lawful corporate limits of any other municipality of this state.
(b) In the suit, all interested persons who are not complainants shall be made defendants, and the owner or owners of the land or of any right of reversion or other right or interest in the land, if the owner or owners shall be or include other than the interested persons, shall also be made defendants. Interested persons who are minors or otherwise incompetent or under disability may become complainants by guardian or next friend. All known defendants who are minors or otherwise incompetent or under disability shall be represented by guardian ad litem. Nonresident and unknown defendants may be proceeded against by order of publication, and publication, in the manner provided by law.
(c) (1) At least thirty (30) days prior to any hearing on a suit initiated pursuant to this section, the complainant shall file notice with the Tennessee historical commission. The notice shall include the approximate age of the burial ground and either: (A) The name of the complainant, the location of the burial ground, and, if discernable, the name of any person interred at the burial ground; or (B) An exact copy of the complaint filed in the chancery court. (2) The Tennessee historical commission shall post filed notices on its website. Notices shall be posted in chronological order by county and updated at least monthly. The Tennessee historical commission may archive notices annually. (3) Notwithstanding subdivisions (c)(1) and (2), any notice concerning the removal of Native American Indian human remains shall be filed according to title 11, chapter 6, and must not be posted on the website of the commission.
(1) At least thirty (30) days prior to any hearing on a suit initiated pursuant to this section, the complainant shall file notice with the Tennessee historical commission. The notice shall include the approximate age of the burial ground and either: (A) The name of the complainant, the location of the burial ground, and, if discernable, the name of any person interred at the burial ground; or (B) An exact copy of the complaint filed in the chancery court.
(A) The name of the complainant, the location of the burial ground, and, if discernable, the name of any person interred at the burial ground; or
(B) An exact copy of the complaint filed in the chancery court.
(2) The Tennessee historical commission shall post filed notices on its website. Notices shall be posted in chronological order by county and updated at least monthly. The Tennessee historical commission may archive notices annually.
(3) Notwithstanding subdivisions (c)(1) and (2), any notice concerning the removal of Native American Indian human remains shall be filed according to title 11, chapter 6, and must not be posted on the website of the commission.
Amended by 2018 Tenn. Acts, ch. 1032,s 1, eff. 7/1/2018.
Acts 1949, ch. 15, § 3; mod. C. Supp. 1950, § 5379.3 (Williams, § 9720.3); T.C.A. (orig. ed.), § 46-403.
Tenn. Code Ann. § 46-1-302 — TN Code / Title 46 / Chapter 1 / Section 46-1-302
Penalty for failure to file report
Status: in_force

(a) Any owner or officer of a cemetery company or officer of the trustee of the respective improvement care fund who willfully fails to make the required report, or to file the report of the trustee, required in this chapter, commits a Class A misdemeanor. (b) Upon failure to receive an annual report from any cemetery company when due, the commissioner shall be notified, and shall immediately notify the cemetery company, by registered letter sent to the address found on the cemetery company's registration form, that the annual report has not been received. Failure of the cemetery company to file the annual report within fifteen (15) days after the registered letter is mailed shall constitute prima facie evidence of willful failure to file, and the commissioner has the discretion to order a conditional suspension of the certificate of registration and institute proceedings as set forth in §§ 46-1-311 and 46-1-312 . Acts 1927, ch. 75, § 5; Code 1932, § 3927; Acts 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-108; Acts 1976, ch. 773, § 6; T.C.A., §§ 46-208, 46-2-108; Acts 1989, ch. 591, §§ 1, 113; 1995, ch. 485, §§ 3, 4; 1997 , ch. 374, § 2; T.C.A. § 46-2-204 ; Acts 2006, ch. 1012, § 4.
(a) Any owner or officer of a cemetery company or officer of the trustee of the respective improvement care fund who willfully fails to make the required report, or to file the report of the trustee, required in this chapter, commits a Class A misdemeanor.
(b) Upon failure to receive an annual report from any cemetery company when due, the commissioner shall be notified, and shall immediately notify the cemetery company, by registered letter sent to the address found on the cemetery company's registration form, that the annual report has not been received. Failure of the cemetery company to file the annual report within fifteen (15) days after the registered letter is mailed shall constitute prima facie evidence of willful failure to file, and the commissioner has the discretion to order a conditional suspension of the certificate of registration and institute proceedings as set forth in §§ 46-1-311 and 46-1-312 .
Acts 1927, ch. 75, § 5; Code 1932, § 3927; Acts 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-108; Acts 1976, ch. 773, § 6; T.C.A., §§ 46-208, 46-2-108; Acts 1989, ch. 591, §§ 1, 113; 1995, ch. 485, §§ 3, 4; 1997 , ch. 374, § 2; T.C.A. § 46-2-204 ; Acts 2006, ch. 1012, § 4.
Tenn. Code Ann. § 46-1-204 — TN Code / Title 46 / Chapter 1 / Section 46-1-204
Improvement care trust fund
Status: in_force

(a) (1) Every cemetery company engaged in the business of selling, leasing, or renting lots, grave spaces, crypts, niches, and burial rights in this state shall establish and forever maintain an improvement care trust fund to provide for the improvement, care, and maintenance of the following: (A) Each separate cemetery; (B) Each separate geographical location of each cemetery owned and operated by the cemetery company; and (C) Each separate geographical location of a funeral home, or other individual or entity, that has niches or other areas or devices of interment for sale, lease, or rent. (2) The trust fund required by this subsection (a) shall be established by executing a written trust agreement with a trust company approved by the commissioner, or with a state or national bank, or with savings and loan associations having insurance of accounts as required by law; provided, that a cemetery company may change the trustee of its trust fund by providing written notice to the commissioner no later than thirty (30) days prior to the change, along with sufficient evidence, as determined by the commissioner, that the trustee will be able to comply with the requirements of this chapter. If the commissioner determines that the evidence submitted is insufficient to ensure that the trustee will be able to comply with the requirements of this chapter, the commissioner may refuse to allow the cemetery company to change the trustee. (3) (A) As used in this subdivision (a)(3), "department" means the department of commerce and insurance. (B) The trustee for a trust established pursuant to this section may establish: (i) An improvement care trust fund for each cemetery; or (ii) A master improvement care trust fund to hold the funds for multiple cemetery companies based in this state. The master improvement care trust must identify the subaccounts for each individual participating cemetery company trust. (C) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to trusts, or trustees managing a trust, established pursuant to this subsection (a); (ii) Provide an annual financial report concerning the trust to the department in accordance with this chapter and rules promulgated pursuant to this chapter; and (iii) Make accounting records for the trust available to the comptroller of the treasury and the department, upon request, for review and audit. (D) If the trustee uses a board for the management of the trust established pursuant to subsection (a), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity. (b) The written trust agreement shall specifically state the following: (1) The nature and extent of care to be furnished; (2) That the care shall be furnished only to the extent that the net income derived from the amount deposited in the trust permits; and (3) (A) That within thirty (30) days of a transaction, not less than the following minimum amounts will be set aside and deposited in trust by the cemetery company: (i) For land, but not including lawn crypts or land donated without charge for the purpose of interring the remains of a deceased person who was under eighteen (18) years of age at the time of death, one dollar ($1.00) per square foot of the land sold or twenty percent (20%) of the total transaction amount for the land, whichever is greater; (ii) For a lawn crypt, twenty percent (20%) of the total transaction amount for the land excluding the lawn crypt or fifty dollars ($50.00), whichever is greater; (iii) For a mausoleum, crypt, niche, or any memorial other than a commodity, not less than ten percent (10%) of the total transaction amount for each item; (iv) For the special care of any lot, grave, crypt, or niche or of a family mausoleum, memorial, marker or monument, the full amount received; (v) For a commodity, the full amount received for memorial care; and (vi) For the sale of land for non-cemetery purposes, the commissioner may order the cemetery company disposing of the land to deposit up to one hundred percent (100%) of the net proceeds of the disposition in the cemetery's improvement care trust fund or the cemetery's pre-need merchandise and services trust fund, or both, within thirty (30) days after the disposition, if there is a deficiency in either trust fund. The order may not exceed the actual amount of the deficiency in the improvement care trust fund or the pre-need merchandise and services trust fund, or both; (B) Notwithstanding anything in this chapter to the contrary, any cemetery company depositing more than the required amounts in its improvement care trust fund, in accordance with prior statutory requirements or its charter or contracts, shall be authorized to continue to do so; provided, that deliberate advance payments made to the improvement care fund shall not be credited toward any future liability, except that a cemetery company may credit any payment, which was deposited into the improvement care trust fund from a contract that was subsequently canceled, toward any future liability as long as the credit is applied within twelve (12) months from the date of the cancellation date. (c) Every cemetery company shall be permitted to charge a fee for the memorial care of every commodity installed in the cemetery. The fee shall not exceed twenty-three cents (23¢) per square inch of the ground covered by the commodity. At the end of each calendar year, the cemetery company shall be permitted to increase its fee for the memorial care of commodities by no more than the percentage representing the consumer price index at the end of that calendar year. The fee charged for memorial care of a commodity shall not exceed the fee charged by the cemetery company for installation of the commodity. The charge for memorial care of a commodity shall be the same to all, regardless of the source of the commodity. (d) The setting aside and deposit provided for in subdivision (b)(3)(A) shall be made by the cemetery company not later than thirty (30) days after the close of the month in which the final payment on the purchase price of each lot, grave space, crypt or niche, the final payment for the general or special care of the lot, grave space, crypt or niche, the final payment for the memorial care of a commodity, or the final payment of a family mausoleum, memorial, marker or monument is received. The amounts deposited shall be held by the trustee of the improvement care funds of the cemetery in trust and perpetuity for the specific purposes stated in the written agreement. All deposits with a trustee by a cemetery company under this part shall be in cash only. (e) (1) As used in this subsection (e), unless the context otherwise requires: (A) "Net earnings" means: (i) All net income, excluding capital gains; or (ii) An amount not exceeding five percent (5%) of the fair market value of the trust, averaged over the lesser of the balance as of the last day of the trust fiscal year immediately preceding the distribution year and the two (2) preceding years or, if less than two (2) years, the period of time the trust has been in existence. If the earnings are part of a master improvement care trust, then only the fair market value of the cemetery company's portion of the trust must be used to calculate the cemetery company's net earnings. This amount is not reduced by taxes or fees, unless the fees exceed two and one-half percent (2.5%) of the market value of the trust as of the last day of the trust fiscal year immediately preceding the distribution year. If a fee exceeds two and one-half percent (2.5%) of the market value of the trust as of the last day of the preceding fiscal year, then the amount of the disbursement must be reduced by the excess; and (B) "Net income" means the collected dividends, interest and other income of the trust reduced by taxes on income and fees. (2) The net earnings of each improvement care trust fund shall be paid to and shall be used and expended by the owners or officers and directors of the cemetery company, or by the trustee of the improvement care trust fund while the cemetery is not being operated by its owner, for the improvement care, as defined in § 46-1-102 , of the cemetery or separate geographical location of the cemetery for which the fund was established and for no other purpose. (3) While a cemetery for which an improvement care trust has been funded is not being operated by its owner, the trustee may disburse net income from the trust to compensate any responsible person for work performed or expenses incurred in the improvement care of the cemetery. In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of their capital. Within the limitations of the standard in this subdivision (e)(3), subject to any express provisions of limitations contained in any particular trust instrument, the trustee is authorized to acquire every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not limited to, corporate obligations of every kind, and stocks, preferred or common, that persons of prudence, discretion and intelligence acquire for their own accounts. (4) (A) A cemetery owner may select a method to calculate the net earnings of a trust for the first fiscal year in which this subsection (e) is effective, by delivering written instructions to the trustee of the fund no later than sixty (60) days prior to the end of that fiscal year. (B) A cemetery owner may select a method of calculation to be used for any given fiscal year by using either subdivision (e)(1)(A)(i) or (e)(1)(A)(ii). A cemetery owner shall provide the trustee with written instructions of which method of calculation has been chosen no later than the last day of the preceding fiscal year. In the event that the method of calculation chosen by the cemetery owner prior to the start of the fiscal year would result in lower disbursements than would the other calculation, then the cemetery owner may provide the trustee with written instructions no later than sixty (60) days prior to the end of the fiscal year to change the method of calculation. (C) In the event that the trustee does not receive written instructions for a given fiscal year from the cemetery owner informing the trustee of the method of calculation chosen or the trustee has never received any written instructions of the method of calculation chosen, then the trustee shall calculate and disburse funds in accordance with subdivision (e)(1)(A)(i). (D) (i) In order to withdraw up to five percent (5%) of a trust that is already in existence on July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value of the trust after the withdrawal shall be greater than .90 x [MV(T)+C]. T represents July 1, 2009. MV represents the principal market value of the trust at T. C represents the total contributions made to the trust principal from T to the date that the method of calculation is selected. (ii) In order to withdraw up to five percent (5%) of a trust that is established after July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value after the withdrawal shall be greater than .90 x [MV(N)+C]. MV(N) represents the principal market value of the trust that will be determined at the end of the trust's fiscal year. C represents contributions made to the principal after the first completed fiscal year. (iii) Disbursements from the trust that are calculated pursuant to subdivision (e)(1)(A)(ii) shall be made on a monthly, quarterly, semiannual or annual basis. (E) In order for a cemetery owner to receive distributions from the trust that are calculated by using either method of calculation in subdivision (e)(1)(A)(i) or (e)(1)(A)(ii), the cemetery owner shall: (i) Be current on payment of the annual registration fee. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery is registered with the department; and (ii) Be current on required deposits to the trust or make payments on any arrearages through special arrangements with the commissioner. At the commissioner's discretion, the commissioner may allow cemetery owners to make payments on arrearages. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery owner is current on required deposits or is making payments on arrearages. (f) No cemetery company shall commingle the improvement care funds for the benefit of one (1) cemetery with improvement care funds for the benefit of any other cemetery or with any other funds, and each separate geographical site of a cemetery shall have a separate improvement care fund. However, improvement care funds from more than one (1) cemetery may be commingled by trustees for investment purposes, so long as an accurate accounting is maintained for each individual fund. (g) The improvement care trust fund shall not be a part of the assets of any cemetery company operating under this part and the improvement care trust fund shall not be subject to the debts of the cemetery company. (h) For purposes of this section, "cemetery company" includes any individual or entity that leases or rents crypts and niches, even if the individual or entity is not organized, owning, or controlling cemetery lands or property nor conducting the business of a cemetery. Amended by 2022 Tenn. Acts, ch. 705, s 2, eff. 1/1/2023. Amended by 2022 Tenn. Acts, ch. 705, s 1, eff. 1/1/2023. Amended by 2015 Tenn. Acts, ch. 288, Secs.s 4, s 5, s 6 eff. 1/1/2016. Amended by 2015 Tenn. Acts, ch. 288, s 3, eff. 1/1/2016. Acts 1927, ch. 75, § 1; mod. Code 1932, § 3923; Acts 1953, ch. 44, § 1; 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-110; Acts 1976, ch. 773, § 7; 1978, ch. 605, § 1; 1978, ch. 708, § 6.04; T.C.A., §§ 46-210, 46-2-110; modified; Acts 1980, ch. 780, §§ 5-7; impl. am. Acts 1980, ch. 780, § 1; 1986, ch. 693, §§ 12-17; 1996, ch. 714, §§ 1, 2; 2005, ch. 217, § 1; T.C.A. § 46-2-302 ; Acts 2006, ch. 1012, § 3; 2009 , ch. 356, §§ 3, 4.
(a) (1) Every cemetery company engaged in the business of selling, leasing, or renting lots, grave spaces, crypts, niches, and burial rights in this state shall establish and forever maintain an improvement care trust fund to provide for the improvement, care, and maintenance of the following: (A) Each separate cemetery; (B) Each separate geographical location of each cemetery owned and operated by the cemetery company; and (C) Each separate geographical location of a funeral home, or other individual or entity, that has niches or other areas or devices of interment for sale, lease, or rent. (2) The trust fund required by this subsection (a) shall be established by executing a written trust agreement with a trust company approved by the commissioner, or with a state or national bank, or with savings and loan associations having insurance of accounts as required by law; provided, that a cemetery company may change the trustee of its trust fund by providing written notice to the commissioner no later than thirty (30) days prior to the change, along with sufficient evidence, as determined by the commissioner, that the trustee will be able to comply with the requirements of this chapter. If the commissioner determines that the evidence submitted is insufficient to ensure that the trustee will be able to comply with the requirements of this chapter, the commissioner may refuse to allow the cemetery company to change the trustee. (3) (A) As used in this subdivision (a)(3), "department" means the department of commerce and insurance. (B) The trustee for a trust established pursuant to this section may establish: (i) An improvement care trust fund for each cemetery; or (ii) A master improvement care trust fund to hold the funds for multiple cemetery companies based in this state. The master improvement care trust must identify the subaccounts for each individual participating cemetery company trust. (C) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to trusts, or trustees managing a trust, established pursuant to this subsection (a); (ii) Provide an annual financial report concerning the trust to the department in accordance with this chapter and rules promulgated pursuant to this chapter; and (iii) Make accounting records for the trust available to the comptroller of the treasury and the department, upon request, for review and audit. (D) If the trustee uses a board for the management of the trust established pursuant to subsection (a), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(1) Every cemetery company engaged in the business of selling, leasing, or renting lots, grave spaces, crypts, niches, and burial rights in this state shall establish and forever maintain an improvement care trust fund to provide for the improvement, care, and maintenance of the following: (A) Each separate cemetery; (B) Each separate geographical location of each cemetery owned and operated by the cemetery company; and (C) Each separate geographical location of a funeral home, or other individual or entity, that has niches or other areas or devices of interment for sale, lease, or rent.
(A) Each separate cemetery;
(B) Each separate geographical location of each cemetery owned and operated by the cemetery company; and
(C) Each separate geographical location of a funeral home, or other individual or entity, that has niches or other areas or devices of interment for sale, lease, or rent.
(2) The trust fund required by this subsection (a) shall be established by executing a written trust agreement with a trust company approved by the commissioner, or with a state or national bank, or with savings and loan associations having insurance of accounts as required by law; provided, that a cemetery company may change the trustee of its trust fund by providing written notice to the commissioner no later than thirty (30) days prior to the change, along with sufficient evidence, as determined by the commissioner, that the trustee will be able to comply with the requirements of this chapter. If the commissioner determines that the evidence submitted is insufficient to ensure that the trustee will be able to comply with the requirements of this chapter, the commissioner may refuse to allow the cemetery company to change the trustee.
(3) (A) As used in this subdivision (a)(3), "department" means the department of commerce and insurance. (B) The trustee for a trust established pursuant to this section may establish: (i) An improvement care trust fund for each cemetery; or (ii) A master improvement care trust fund to hold the funds for multiple cemetery companies based in this state. The master improvement care trust must identify the subaccounts for each individual participating cemetery company trust. (C) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to trusts, or trustees managing a trust, established pursuant to this subsection (a); (ii) Provide an annual financial report concerning the trust to the department in accordance with this chapter and rules promulgated pursuant to this chapter; and (iii) Make accounting records for the trust available to the comptroller of the treasury and the department, upon request, for review and audit. (D) If the trustee uses a board for the management of the trust established pursuant to subsection (a), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(A) As used in this subdivision (a)(3), "department" means the department of commerce and insurance.
(B) The trustee for a trust established pursuant to this section may establish: (i) An improvement care trust fund for each cemetery; or (ii) A master improvement care trust fund to hold the funds for multiple cemetery companies based in this state. The master improvement care trust must identify the subaccounts for each individual participating cemetery company trust.
(i) An improvement care trust fund for each cemetery; or
(ii) A master improvement care trust fund to hold the funds for multiple cemetery companies based in this state. The master improvement care trust must identify the subaccounts for each individual participating cemetery company trust.
(C) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to trusts, or trustees managing a trust, established pursuant to this subsection (a); (ii) Provide an annual financial report concerning the trust to the department in accordance with this chapter and rules promulgated pursuant to this chapter; and (iii) Make accounting records for the trust available to the comptroller of the treasury and the department, upon request, for review and audit.
(i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to trusts, or trustees managing a trust, established pursuant to this subsection (a);
(ii) Provide an annual financial report concerning the trust to the department in accordance with this chapter and rules promulgated pursuant to this chapter; and
(iii) Make accounting records for the trust available to the comptroller of the treasury and the department, upon request, for review and audit.
(D) If the trustee uses a board for the management of the trust established pursuant to subsection (a), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(b) The written trust agreement shall specifically state the following: (1) The nature and extent of care to be furnished; (2) That the care shall be furnished only to the extent that the net income derived from the amount deposited in the trust permits; and (3) (A) That within thirty (30) days of a transaction, not less than the following minimum amounts will be set aside and deposited in trust by the cemetery company: (i) For land, but not including lawn crypts or land donated without charge for the purpose of interring the remains of a deceased person who was under eighteen (18) years of age at the time of death, one dollar ($1.00) per square foot of the land sold or twenty percent (20%) of the total transaction amount for the land, whichever is greater; (ii) For a lawn crypt, twenty percent (20%) of the total transaction amount for the land excluding the lawn crypt or fifty dollars ($50.00), whichever is greater; (iii) For a mausoleum, crypt, niche, or any memorial other than a commodity, not less than ten percent (10%) of the total transaction amount for each item; (iv) For the special care of any lot, grave, crypt, or niche or of a family mausoleum, memorial, marker or monument, the full amount received; (v) For a commodity, the full amount received for memorial care; and (vi) For the sale of land for non-cemetery purposes, the commissioner may order the cemetery company disposing of the land to deposit up to one hundred percent (100%) of the net proceeds of the disposition in the cemetery's improvement care trust fund or the cemetery's pre-need merchandise and services trust fund, or both, within thirty (30) days after the disposition, if there is a deficiency in either trust fund. The order may not exceed the actual amount of the deficiency in the improvement care trust fund or the pre-need merchandise and services trust fund, or both; (B) Notwithstanding anything in this chapter to the contrary, any cemetery company depositing more than the required amounts in its improvement care trust fund, in accordance with prior statutory requirements or its charter or contracts, shall be authorized to continue to do so; provided, that deliberate advance payments made to the improvement care fund shall not be credited toward any future liability, except that a cemetery company may credit any payment, which was deposited into the improvement care trust fund from a contract that was subsequently canceled, toward any future liability as long as the credit is applied within twelve (12) months from the date of the cancellation date.
(1) The nature and extent of care to be furnished;
(2) That the care shall be furnished only to the extent that the net income derived from the amount deposited in the trust permits; and
(3) (A) That within thirty (30) days of a transaction, not less than the following minimum amounts will be set aside and deposited in trust by the cemetery company: (i) For land, but not including lawn crypts or land donated without charge for the purpose of interring the remains of a deceased person who was under eighteen (18) years of age at the time of death, one dollar ($1.00) per square foot of the land sold or twenty percent (20%) of the total transaction amount for the land, whichever is greater; (ii) For a lawn crypt, twenty percent (20%) of the total transaction amount for the land excluding the lawn crypt or fifty dollars ($50.00), whichever is greater; (iii) For a mausoleum, crypt, niche, or any memorial other than a commodity, not less than ten percent (10%) of the total transaction amount for each item; (iv) For the special care of any lot, grave, crypt, or niche or of a family mausoleum, memorial, marker or monument, the full amount received; (v) For a commodity, the full amount received for memorial care; and (vi) For the sale of land for non-cemetery purposes, the commissioner may order the cemetery company disposing of the land to deposit up to one hundred percent (100%) of the net proceeds of the disposition in the cemetery's improvement care trust fund or the cemetery's pre-need merchandise and services trust fund, or both, within thirty (30) days after the disposition, if there is a deficiency in either trust fund. The order may not exceed the actual amount of the deficiency in the improvement care trust fund or the pre-need merchandise and services trust fund, or both; (B) Notwithstanding anything in this chapter to the contrary, any cemetery company depositing more than the required amounts in its improvement care trust fund, in accordance with prior statutory requirements or its charter or contracts, shall be authorized to continue to do so; provided, that deliberate advance payments made to the improvement care fund shall not be credited toward any future liability, except that a cemetery company may credit any payment, which was deposited into the improvement care trust fund from a contract that was subsequently canceled, toward any future liability as long as the credit is applied within twelve (12) months from the date of the cancellation date.
(A) That within thirty (30) days of a transaction, not less than the following minimum amounts will be set aside and deposited in trust by the cemetery company: (i) For land, but not including lawn crypts or land donated without charge for the purpose of interring the remains of a deceased person who was under eighteen (18) years of age at the time of death, one dollar ($1.00) per square foot of the land sold or twenty percent (20%) of the total transaction amount for the land, whichever is greater; (ii) For a lawn crypt, twenty percent (20%) of the total transaction amount for the land excluding the lawn crypt or fifty dollars ($50.00), whichever is greater; (iii) For a mausoleum, crypt, niche, or any memorial other than a commodity, not less than ten percent (10%) of the total transaction amount for each item; (iv) For the special care of any lot, grave, crypt, or niche or of a family mausoleum, memorial, marker or monument, the full amount received; (v) For a commodity, the full amount received for memorial care; and (vi) For the sale of land for non-cemetery purposes, the commissioner may order the cemetery company disposing of the land to deposit up to one hundred percent (100%) of the net proceeds of the disposition in the cemetery's improvement care trust fund or the cemetery's pre-need merchandise and services trust fund, or both, within thirty (30) days after the disposition, if there is a deficiency in either trust fund. The order may not exceed the actual amount of the deficiency in the improvement care trust fund or the pre-need merchandise and services trust fund, or both;
(i) For land, but not including lawn crypts or land donated without charge for the purpose of interring the remains of a deceased person who was under eighteen (18) years of age at the time of death, one dollar ($1.00) per square foot of the land sold or twenty percent (20%) of the total transaction amount for the land, whichever is greater;
(ii) For a lawn crypt, twenty percent (20%) of the total transaction amount for the land excluding the lawn crypt or fifty dollars ($50.00), whichever is greater;
(iii) For a mausoleum, crypt, niche, or any memorial other than a commodity, not less than ten percent (10%) of the total transaction amount for each item;
(iv) For the special care of any lot, grave, crypt, or niche or of a family mausoleum, memorial, marker or monument, the full amount received;
(v) For a commodity, the full amount received for memorial care; and
(vi) For the sale of land for non-cemetery purposes, the commissioner may order the cemetery company disposing of the land to deposit up to one hundred percent (100%) of the net proceeds of the disposition in the cemetery's improvement care trust fund or the cemetery's pre-need merchandise and services trust fund, or both, within thirty (30) days after the disposition, if there is a deficiency in either trust fund. The order may not exceed the actual amount of the deficiency in the improvement care trust fund or the pre-need merchandise and services trust fund, or both;
(B) Notwithstanding anything in this chapter to the contrary, any cemetery company depositing more than the required amounts in its improvement care trust fund, in accordance with prior statutory requirements or its charter or contracts, shall be authorized to continue to do so; provided, that deliberate advance payments made to the improvement care fund shall not be credited toward any future liability, except that a cemetery company may credit any payment, which was deposited into the improvement care trust fund from a contract that was subsequently canceled, toward any future liability as long as the credit is applied within twelve (12) months from the date of the cancellation date.
(c) Every cemetery company shall be permitted to charge a fee for the memorial care of every commodity installed in the cemetery. The fee shall not exceed twenty-three cents (23¢) per square inch of the ground covered by the commodity. At the end of each calendar year, the cemetery company shall be permitted to increase its fee for the memorial care of commodities by no more than the percentage representing the consumer price index at the end of that calendar year. The fee charged for memorial care of a commodity shall not exceed the fee charged by the cemetery company for installation of the commodity. The charge for memorial care of a commodity shall be the same to all, regardless of the source of the commodity.
(d) The setting aside and deposit provided for in subdivision (b)(3)(A) shall be made by the cemetery company not later than thirty (30) days after the close of the month in which the final payment on the purchase price of each lot, grave space, crypt or niche, the final payment for the general or special care of the lot, grave space, crypt or niche, the final payment for the memorial care of a commodity, or the final payment of a family mausoleum, memorial, marker or monument is received. The amounts deposited shall be held by the trustee of the improvement care funds of the cemetery in trust and perpetuity for the specific purposes stated in the written agreement. All deposits with a trustee by a cemetery company under this part shall be in cash only.
(e) (1) As used in this subsection (e), unless the context otherwise requires: (A) "Net earnings" means: (i) All net income, excluding capital gains; or (ii) An amount not exceeding five percent (5%) of the fair market value of the trust, averaged over the lesser of the balance as of the last day of the trust fiscal year immediately preceding the distribution year and the two (2) preceding years or, if less than two (2) years, the period of time the trust has been in existence. If the earnings are part of a master improvement care trust, then only the fair market value of the cemetery company's portion of the trust must be used to calculate the cemetery company's net earnings. This amount is not reduced by taxes or fees, unless the fees exceed two and one-half percent (2.5%) of the market value of the trust as of the last day of the trust fiscal year immediately preceding the distribution year. If a fee exceeds two and one-half percent (2.5%) of the market value of the trust as of the last day of the preceding fiscal year, then the amount of the disbursement must be reduced by the excess; and (B) "Net income" means the collected dividends, interest and other income of the trust reduced by taxes on income and fees. (2) The net earnings of each improvement care trust fund shall be paid to and shall be used and expended by the owners or officers and directors of the cemetery company, or by the trustee of the improvement care trust fund while the cemetery is not being operated by its owner, for the improvement care, as defined in § 46-1-102 , of the cemetery or separate geographical location of the cemetery for which the fund was established and for no other purpose. (3) While a cemetery for which an improvement care trust has been funded is not being operated by its owner, the trustee may disburse net income from the trust to compensate any responsible person for work performed or expenses incurred in the improvement care of the cemetery. In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of their capital. Within the limitations of the standard in this subdivision (e)(3), subject to any express provisions of limitations contained in any particular trust instrument, the trustee is authorized to acquire every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not limited to, corporate obligations of every kind, and stocks, preferred or common, that persons of prudence, discretion and intelligence acquire for their own accounts. (4) (A) A cemetery owner may select a method to calculate the net earnings of a trust for the first fiscal year in which this subsection (e) is effective, by delivering written instructions to the trustee of the fund no later than sixty (60) days prior to the end of that fiscal year. (B) A cemetery owner may select a method of calculation to be used for any given fiscal year by using either subdivision (e)(1)(A)(i) or (e)(1)(A)(ii). A cemetery owner shall provide the trustee with written instructions of which method of calculation has been chosen no later than the last day of the preceding fiscal year. In the event that the method of calculation chosen by the cemetery owner prior to the start of the fiscal year would result in lower disbursements than would the other calculation, then the cemetery owner may provide the trustee with written instructions no later than sixty (60) days prior to the end of the fiscal year to change the method of calculation. (C) In the event that the trustee does not receive written instructions for a given fiscal year from the cemetery owner informing the trustee of the method of calculation chosen or the trustee has never received any written instructions of the method of calculation chosen, then the trustee shall calculate and disburse funds in accordance with subdivision (e)(1)(A)(i). (D) (i) In order to withdraw up to five percent (5%) of a trust that is already in existence on July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value of the trust after the withdrawal shall be greater than .90 x [MV(T)+C]. T represents July 1, 2009. MV represents the principal market value of the trust at T. C represents the total contributions made to the trust principal from T to the date that the method of calculation is selected. (ii) In order to withdraw up to five percent (5%) of a trust that is established after July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value after the withdrawal shall be greater than .90 x [MV(N)+C]. MV(N) represents the principal market value of the trust that will be determined at the end of the trust's fiscal year. C represents contributions made to the principal after the first completed fiscal year. (iii) Disbursements from the trust that are calculated pursuant to subdivision (e)(1)(A)(ii) shall be made on a monthly, quarterly, semiannual or annual basis. (E) In order for a cemetery owner to receive distributions from the trust that are calculated by using either method of calculation in subdivision (e)(1)(A)(i) or (e)(1)(A)(ii), the cemetery owner shall: (i) Be current on payment of the annual registration fee. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery is registered with the department; and (ii) Be current on required deposits to the trust or make payments on any arrearages through special arrangements with the commissioner. At the commissioner's discretion, the commissioner may allow cemetery owners to make payments on arrearages. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery owner is current on required deposits or is making payments on arrearages.
(1) As used in this subsection (e), unless the context otherwise requires: (A) "Net earnings" means: (i) All net income, excluding capital gains; or (ii) An amount not exceeding five percent (5%) of the fair market value of the trust, averaged over the lesser of the balance as of the last day of the trust fiscal year immediately preceding the distribution year and the two (2) preceding years or, if less than two (2) years, the period of time the trust has been in existence. If the earnings are part of a master improvement care trust, then only the fair market value of the cemetery company's portion of the trust must be used to calculate the cemetery company's net earnings. This amount is not reduced by taxes or fees, unless the fees exceed two and one-half percent (2.5%) of the market value of the trust as of the last day of the trust fiscal year immediately preceding the distribution year. If a fee exceeds two and one-half percent (2.5%) of the market value of the trust as of the last day of the preceding fiscal year, then the amount of the disbursement must be reduced by the excess; and (B) "Net income" means the collected dividends, interest and other income of the trust reduced by taxes on income and fees.
(A) "Net earnings" means: (i) All net income, excluding capital gains; or (ii) An amount not exceeding five percent (5%) of the fair market value of the trust, averaged over the lesser of the balance as of the last day of the trust fiscal year immediately preceding the distribution year and the two (2) preceding years or, if less than two (2) years, the period of time the trust has been in existence. If the earnings are part of a master improvement care trust, then only the fair market value of the cemetery company's portion of the trust must be used to calculate the cemetery company's net earnings. This amount is not reduced by taxes or fees, unless the fees exceed two and one-half percent (2.5%) of the market value of the trust as of the last day of the trust fiscal year immediately preceding the distribution year. If a fee exceeds two and one-half percent (2.5%) of the market value of the trust as of the last day of the preceding fiscal year, then the amount of the disbursement must be reduced by the excess; and
(i) All net income, excluding capital gains; or
(ii) An amount not exceeding five percent (5%) of the fair market value of the trust, averaged over the lesser of the balance as of the last day of the trust fiscal year immediately preceding the distribution year and the two (2) preceding years or, if less than two (2) years, the period of time the trust has been in existence. If the earnings are part of a master improvement care trust, then only the fair market value of the cemetery company's portion of the trust must be used to calculate the cemetery company's net earnings. This amount is not reduced by taxes or fees, unless the fees exceed two and one-half percent (2.5%) of the market value of the trust as of the last day of the trust fiscal year immediately preceding the distribution year. If a fee exceeds two and one-half percent (2.5%) of the market value of the trust as of the last day of the preceding fiscal year, then the amount of the disbursement must be reduced by the excess; and
(B) "Net income" means the collected dividends, interest and other income of the trust reduced by taxes on income and fees.
(2) The net earnings of each improvement care trust fund shall be paid to and shall be used and expended by the owners or officers and directors of the cemetery company, or by the trustee of the improvement care trust fund while the cemetery is not being operated by its owner, for the improvement care, as defined in § 46-1-102 , of the cemetery or separate geographical location of the cemetery for which the fund was established and for no other purpose.
(3) While a cemetery for which an improvement care trust has been funded is not being operated by its owner, the trustee may disburse net income from the trust to compensate any responsible person for work performed or expenses incurred in the improvement care of the cemetery. In investing these funds, the trustee shall exercise the judgment and care under the circumstances then prevailing that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income and capital appreciation as well as the probable safety of their capital. Within the limitations of the standard in this subdivision (e)(3), subject to any express provisions of limitations contained in any particular trust instrument, the trustee is authorized to acquire every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not limited to, corporate obligations of every kind, and stocks, preferred or common, that persons of prudence, discretion and intelligence acquire for their own accounts.
(4) (A) A cemetery owner may select a method to calculate the net earnings of a trust for the first fiscal year in which this subsection (e) is effective, by delivering written instructions to the trustee of the fund no later than sixty (60) days prior to the end of that fiscal year. (B) A cemetery owner may select a method of calculation to be used for any given fiscal year by using either subdivision (e)(1)(A)(i) or (e)(1)(A)(ii). A cemetery owner shall provide the trustee with written instructions of which method of calculation has been chosen no later than the last day of the preceding fiscal year. In the event that the method of calculation chosen by the cemetery owner prior to the start of the fiscal year would result in lower disbursements than would the other calculation, then the cemetery owner may provide the trustee with written instructions no later than sixty (60) days prior to the end of the fiscal year to change the method of calculation. (C) In the event that the trustee does not receive written instructions for a given fiscal year from the cemetery owner informing the trustee of the method of calculation chosen or the trustee has never received any written instructions of the method of calculation chosen, then the trustee shall calculate and disburse funds in accordance with subdivision (e)(1)(A)(i). (D) (i) In order to withdraw up to five percent (5%) of a trust that is already in existence on July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value of the trust after the withdrawal shall be greater than .90 x [MV(T)+C]. T represents July 1, 2009. MV represents the principal market value of the trust at T. C represents the total contributions made to the trust principal from T to the date that the method of calculation is selected. (ii) In order to withdraw up to five percent (5%) of a trust that is established after July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value after the withdrawal shall be greater than .90 x [MV(N)+C]. MV(N) represents the principal market value of the trust that will be determined at the end of the trust's fiscal year. C represents contributions made to the principal after the first completed fiscal year. (iii) Disbursements from the trust that are calculated pursuant to subdivision (e)(1)(A)(ii) shall be made on a monthly, quarterly, semiannual or annual basis. (E) In order for a cemetery owner to receive distributions from the trust that are calculated by using either method of calculation in subdivision (e)(1)(A)(i) or (e)(1)(A)(ii), the cemetery owner shall: (i) Be current on payment of the annual registration fee. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery is registered with the department; and (ii) Be current on required deposits to the trust or make payments on any arrearages through special arrangements with the commissioner. At the commissioner's discretion, the commissioner may allow cemetery owners to make payments on arrearages. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery owner is current on required deposits or is making payments on arrearages.
(A) A cemetery owner may select a method to calculate the net earnings of a trust for the first fiscal year in which this subsection (e) is effective, by delivering written instructions to the trustee of the fund no later than sixty (60) days prior to the end of that fiscal year.
(B) A cemetery owner may select a method of calculation to be used for any given fiscal year by using either subdivision (e)(1)(A)(i) or (e)(1)(A)(ii). A cemetery owner shall provide the trustee with written instructions of which method of calculation has been chosen no later than the last day of the preceding fiscal year. In the event that the method of calculation chosen by the cemetery owner prior to the start of the fiscal year would result in lower disbursements than would the other calculation, then the cemetery owner may provide the trustee with written instructions no later than sixty (60) days prior to the end of the fiscal year to change the method of calculation.
(C) In the event that the trustee does not receive written instructions for a given fiscal year from the cemetery owner informing the trustee of the method of calculation chosen or the trustee has never received any written instructions of the method of calculation chosen, then the trustee shall calculate and disburse funds in accordance with subdivision (e)(1)(A)(i).
(D) (i) In order to withdraw up to five percent (5%) of a trust that is already in existence on July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value of the trust after the withdrawal shall be greater than .90 x [MV(T)+C]. T represents July 1, 2009. MV represents the principal market value of the trust at T. C represents the total contributions made to the trust principal from T to the date that the method of calculation is selected. (ii) In order to withdraw up to five percent (5%) of a trust that is established after July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value after the withdrawal shall be greater than .90 x [MV(N)+C]. MV(N) represents the principal market value of the trust that will be determined at the end of the trust's fiscal year. C represents contributions made to the principal after the first completed fiscal year. (iii) Disbursements from the trust that are calculated pursuant to subdivision (e)(1)(A)(ii) shall be made on a monthly, quarterly, semiannual or annual basis.
(i) In order to withdraw up to five percent (5%) of a trust that is already in existence on July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value of the trust after the withdrawal shall be greater than .90 x [MV(T)+C]. T represents July 1, 2009. MV represents the principal market value of the trust at T. C represents the total contributions made to the trust principal from T to the date that the method of calculation is selected.
(ii) In order to withdraw up to five percent (5%) of a trust that is established after July 1, 2009, in accordance with subdivision (e)(1)(A)(ii), the current market value after the withdrawal shall be greater than .90 x [MV(N)+C]. MV(N) represents the principal market value of the trust that will be determined at the end of the trust's fiscal year. C represents contributions made to the principal after the first completed fiscal year.
(iii) Disbursements from the trust that are calculated pursuant to subdivision (e)(1)(A)(ii) shall be made on a monthly, quarterly, semiannual or annual basis.
(E) In order for a cemetery owner to receive distributions from the trust that are calculated by using either method of calculation in subdivision (e)(1)(A)(i) or (e)(1)(A)(ii), the cemetery owner shall: (i) Be current on payment of the annual registration fee. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery is registered with the department; and (ii) Be current on required deposits to the trust or make payments on any arrearages through special arrangements with the commissioner. At the commissioner's discretion, the commissioner may allow cemetery owners to make payments on arrearages. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery owner is current on required deposits or is making payments on arrearages.
(i) Be current on payment of the annual registration fee. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery is registered with the department; and
(ii) Be current on required deposits to the trust or make payments on any arrearages through special arrangements with the commissioner. At the commissioner's discretion, the commissioner may allow cemetery owners to make payments on arrearages. The cemetery owner shall certify to the trustee on forms provided by the commissioner that the cemetery owner is current on required deposits or is making payments on arrearages.
(f) No cemetery company shall commingle the improvement care funds for the benefit of one (1) cemetery with improvement care funds for the benefit of any other cemetery or with any other funds, and each separate geographical site of a cemetery shall have a separate improvement care fund. However, improvement care funds from more than one (1) cemetery may be commingled by trustees for investment purposes, so long as an accurate accounting is maintained for each individual fund.
(g) The improvement care trust fund shall not be a part of the assets of any cemetery company operating under this part and the improvement care trust fund shall not be subject to the debts of the cemetery company.
(h) For purposes of this section, "cemetery company" includes any individual or entity that leases or rents crypts and niches, even if the individual or entity is not organized, owning, or controlling cemetery lands or property nor conducting the business of a cemetery.
Amended by 2022 Tenn. Acts, ch. 705, s 2, eff. 1/1/2023.
Amended by 2022 Tenn. Acts, ch. 705, s 1, eff. 1/1/2023.
Amended by 2015 Tenn. Acts, ch. 288, Secs.s 4, s 5, s 6 eff. 1/1/2016.
Amended by 2015 Tenn. Acts, ch. 288, s 3, eff. 1/1/2016.
Acts 1927, ch. 75, § 1; mod. Code 1932, § 3923; Acts 1953, ch. 44, § 1; 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-110; Acts 1976, ch. 773, § 7; 1978, ch. 605, § 1; 1978, ch. 708, § 6.04; T.C.A., §§ 46-210, 46-2-110; modified; Acts 1980, ch. 780, §§ 5-7; impl. am. Acts 1980, ch. 780, § 1; 1986, ch. 693, §§ 12-17; 1996, ch. 714, §§ 1, 2; 2005, ch. 217, § 1; T.C.A. § 46-2-302 ; Acts 2006, ch. 1012, § 3; 2009 , ch. 356, §§ 3, 4.
Tenn. Code Ann. § 46-1-306 — TN Code / Title 46 / Chapter 1 / Section 46-1-306
Reasons to refuse to issue or renew, and to revoke or suspend registration - Disciplinary action - Civil penalties - Compliance examination or independent audit - Withholding of earnings and disbursements - Authority to issue citations - Notification and sharing information
Status: in_force

(a) The commissioner may refuse to issue or renew, and may revoke or suspend, the registration of any cemetery registered pursuant to this chapter or corresponding provisions of prior law for any one (1) or more of the following reasons: (1) Fraud or deceit on the part of a cemetery operator in application for registration; (2) Cancellation, revocation, suspension or refusal to renew the registration of a cemetery for disciplinary reasons taken against the cemetery operator in any other state for any cause; (3) Failure on the part of a cemetery operator to maintain compliance with the requirements for issuance or renewal of the registration; (4) Revocation or suspension of the right of any cemetery operator to practice before any state or federal agency; (5) Dishonesty, fraud, or gross negligence on the part of a cemetery company or any cemetery operator in the performance of any services regulated by this chapter or chapter 2 of this title; (6) Violation, on the part of a cemetery operator of any provision of this chapter or chapter 2 of this title, or rule promulgated by the commissioner under this chapter or chapter 2 of this title; (7) Violation, on the part of a cemetery company or any cemetery operator of any rule of professional conduct promulgated by the commissioner; (8) Conviction on the part of a cemetery company or any cemetery operator of a felony, or of any crime an element of which is dishonesty or fraud, under the laws of the United States, of this state, or of any other state or country, if the acts involved would have constituted a crime under the laws of this state; (9) Performance on the part of a cemetery company or any cemetery operator of any fraudulent act while holding an interest in a registered cemetery issued under this chapter or prior law; (10) Failure on the part of a cemetery company or any cemetery operator, or on the part of the trustee or any officer of the trustee, to timely and completely file the reports required by this chapter; (11) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the improvement care trust fund required by this chapter; (12) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the pre-need merchandise and services trust fund required by this chapter; (13) Failure on the part of a cemetery company or any cemetery operator to maintain the cemetery grounds as set forth at § 46-1-304 , and in any rule promulgated for the administration or enforcement of this chapter; (14) Making any false or misleading statement or verification in support of an application for a registration filed by another; (15) Violation on the part of a cemetery company or any cemetery operator of the terms of any lawful order entered by the commissioner; and (16) Selling an interment site or interment right that the cemetery or cemetery operator knew or should have known had been purchased previously by another consumer. This subdivision (a)(16) shall not be construed to prohibit a cemetery company or cemetery operator from selling an interment site that has been determined to have escheated to the cemetery company pursuant to §§ 46-2-103 - 46-2-105. This subdivision (a)(16) shall not be construed to prohibit a consumer who has purchased an interment site from selling or disposing of the interment site in the discretion of that consumer, if the disposition is otherwise in accordance with applicable law. (b) In addition to or in lieu of any other lawful disciplinary action, the commissioner may assess civil penalties in an amount not to exceed one thousand dollars ($1,000) for each separate violation of a law, rule or order pertaining to this chapter. Each day of continued violation constitutes a separate violation. (c) The commissioner is authorized to assess a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against the trustee of any trust fund authorized or required by this chapter, for each separate violation of this chapter or of any rule promulgated for the administration or enforcement of this chapter, including, but not limited to, improperly making disbursements from such funds. Each day of continued violation constitutes a separate violation. (d) In addition to or in lieu of any disciplinary action specifically provided for in subsection (a), (b) or (c), the commissioner may order the following action against any cemetery company found to be in violation of this chapter or any rule promulgated under this chapter: (1) A compliance examination of the cemetery by the commissioner or the commissioner's duly authorized representatives, to be funded by the cemetery company; (2) An independent audit of the cemetery performed by a certified public accountant, to be funded by the cemetery company. (e) In addition to or in lieu of any disciplinary action against a cemetery company found to be in violation of this chapter or any rule promulgated under this chapter, the commissioner may: (1) Direct the trustee of a cemetery's improvement care trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter; and (2) Direct the trustee of a cemetery's merchandise and services trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter. (f) (1) The commissioner or the commissioner's duly authorized representatives are authorized to issue citations, following an on-site inspection, against cemetery companies for failure to maintain the cemetery grounds as set forth at § 46-1-304 . (2) Each citation shall be in writing and shall describe with particularity the basis of the citation. (3) Each citation shall contain an order to cease all violations of this chapter and an assessment of a civil penalty in an amount not to exceed one thousand dollars ($1,000). (4) The commissioner shall promulgate rules and regulations to specify those conditions necessary to the issuance of a citation, and the range of penalties for violations of this chapter. (g) In any proceeding in which discipline provided by subsection (a), (b), (c) or (d) is imposed, the commissioner may also require the respondent cemetery company to pay all costs of the proceeding. (h) The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, governs all matters and procedures respecting the hearing and judicial review of any contested case arising under this chapter or chapter 2 of this title. (i) In any case where the commissioner renders a decision imposing discipline against a cemetery company under this section, the commissioner shall examine the commissioner's records to determine whether the cemetery company holds a registration or a permit in any other state. If so, the commissioner shall notify the cemetery regulatory authority of the other state of its decision, by mail, within forty-five (45) days of rendering the decision. The commissioner may also furnish information relating to proceedings resulting in disciplinary action to other public authorities and to private professional organizations having a disciplinary interest in the registrant. Where a petition for review has been filed pursuant to the Uniform Administrative Procedures Act, the notification and furnishing of information provided for in this subsection (i) shall await the resolution of the review and, if resolution is in favor of the cemetery, no notification or furnishing of information shall be made. Acts 2006, ch. 1012, § 4.
(a) The commissioner may refuse to issue or renew, and may revoke or suspend, the registration of any cemetery registered pursuant to this chapter or corresponding provisions of prior law for any one (1) or more of the following reasons: (1) Fraud or deceit on the part of a cemetery operator in application for registration; (2) Cancellation, revocation, suspension or refusal to renew the registration of a cemetery for disciplinary reasons taken against the cemetery operator in any other state for any cause; (3) Failure on the part of a cemetery operator to maintain compliance with the requirements for issuance or renewal of the registration; (4) Revocation or suspension of the right of any cemetery operator to practice before any state or federal agency; (5) Dishonesty, fraud, or gross negligence on the part of a cemetery company or any cemetery operator in the performance of any services regulated by this chapter or chapter 2 of this title; (6) Violation, on the part of a cemetery operator of any provision of this chapter or chapter 2 of this title, or rule promulgated by the commissioner under this chapter or chapter 2 of this title; (7) Violation, on the part of a cemetery company or any cemetery operator of any rule of professional conduct promulgated by the commissioner; (8) Conviction on the part of a cemetery company or any cemetery operator of a felony, or of any crime an element of which is dishonesty or fraud, under the laws of the United States, of this state, or of any other state or country, if the acts involved would have constituted a crime under the laws of this state; (9) Performance on the part of a cemetery company or any cemetery operator of any fraudulent act while holding an interest in a registered cemetery issued under this chapter or prior law; (10) Failure on the part of a cemetery company or any cemetery operator, or on the part of the trustee or any officer of the trustee, to timely and completely file the reports required by this chapter; (11) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the improvement care trust fund required by this chapter; (12) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the pre-need merchandise and services trust fund required by this chapter; (13) Failure on the part of a cemetery company or any cemetery operator to maintain the cemetery grounds as set forth at § 46-1-304 , and in any rule promulgated for the administration or enforcement of this chapter; (14) Making any false or misleading statement or verification in support of an application for a registration filed by another; (15) Violation on the part of a cemetery company or any cemetery operator of the terms of any lawful order entered by the commissioner; and (16) Selling an interment site or interment right that the cemetery or cemetery operator knew or should have known had been purchased previously by another consumer. This subdivision (a)(16) shall not be construed to prohibit a cemetery company or cemetery operator from selling an interment site that has been determined to have escheated to the cemetery company pursuant to §§ 46-2-103 - 46-2-105. This subdivision (a)(16) shall not be construed to prohibit a consumer who has purchased an interment site from selling or disposing of the interment site in the discretion of that consumer, if the disposition is otherwise in accordance with applicable law.
(1) Fraud or deceit on the part of a cemetery operator in application for registration;
(2) Cancellation, revocation, suspension or refusal to renew the registration of a cemetery for disciplinary reasons taken against the cemetery operator in any other state for any cause;
(3) Failure on the part of a cemetery operator to maintain compliance with the requirements for issuance or renewal of the registration;
(4) Revocation or suspension of the right of any cemetery operator to practice before any state or federal agency;
(5) Dishonesty, fraud, or gross negligence on the part of a cemetery company or any cemetery operator in the performance of any services regulated by this chapter or chapter 2 of this title;
(6) Violation, on the part of a cemetery operator of any provision of this chapter or chapter 2 of this title, or rule promulgated by the commissioner under this chapter or chapter 2 of this title;
(7) Violation, on the part of a cemetery company or any cemetery operator of any rule of professional conduct promulgated by the commissioner;
(8) Conviction on the part of a cemetery company or any cemetery operator of a felony, or of any crime an element of which is dishonesty or fraud, under the laws of the United States, of this state, or of any other state or country, if the acts involved would have constituted a crime under the laws of this state;
(9) Performance on the part of a cemetery company or any cemetery operator of any fraudulent act while holding an interest in a registered cemetery issued under this chapter or prior law;
(10) Failure on the part of a cemetery company or any cemetery operator, or on the part of the trustee or any officer of the trustee, to timely and completely file the reports required by this chapter;
(11) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the improvement care trust fund required by this chapter;
(12) Failure on the part of a cemetery company or any cemetery operator to set up and fully fund the pre-need merchandise and services trust fund required by this chapter;
(13) Failure on the part of a cemetery company or any cemetery operator to maintain the cemetery grounds as set forth at § 46-1-304 , and in any rule promulgated for the administration or enforcement of this chapter;
(14) Making any false or misleading statement or verification in support of an application for a registration filed by another;
(15) Violation on the part of a cemetery company or any cemetery operator of the terms of any lawful order entered by the commissioner; and
(16) Selling an interment site or interment right that the cemetery or cemetery operator knew or should have known had been purchased previously by another consumer. This subdivision (a)(16) shall not be construed to prohibit a cemetery company or cemetery operator from selling an interment site that has been determined to have escheated to the cemetery company pursuant to §§ 46-2-103 - 46-2-105. This subdivision (a)(16) shall not be construed to prohibit a consumer who has purchased an interment site from selling or disposing of the interment site in the discretion of that consumer, if the disposition is otherwise in accordance with applicable law.
(b) In addition to or in lieu of any other lawful disciplinary action, the commissioner may assess civil penalties in an amount not to exceed one thousand dollars ($1,000) for each separate violation of a law, rule or order pertaining to this chapter. Each day of continued violation constitutes a separate violation.
(c) The commissioner is authorized to assess a civil penalty in an amount not to exceed ten thousand dollars ($10,000) against the trustee of any trust fund authorized or required by this chapter, for each separate violation of this chapter or of any rule promulgated for the administration or enforcement of this chapter, including, but not limited to, improperly making disbursements from such funds. Each day of continued violation constitutes a separate violation.
(d) In addition to or in lieu of any disciplinary action specifically provided for in subsection (a), (b) or (c), the commissioner may order the following action against any cemetery company found to be in violation of this chapter or any rule promulgated under this chapter: (1) A compliance examination of the cemetery by the commissioner or the commissioner's duly authorized representatives, to be funded by the cemetery company; (2) An independent audit of the cemetery performed by a certified public accountant, to be funded by the cemetery company.
(1) A compliance examination of the cemetery by the commissioner or the commissioner's duly authorized representatives, to be funded by the cemetery company;
(2) An independent audit of the cemetery performed by a certified public accountant, to be funded by the cemetery company.
(e) In addition to or in lieu of any disciplinary action against a cemetery company found to be in violation of this chapter or any rule promulgated under this chapter, the commissioner may: (1) Direct the trustee of a cemetery's improvement care trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter; and (2) Direct the trustee of a cemetery's merchandise and services trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter.
(1) Direct the trustee of a cemetery's improvement care trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter; and
(2) Direct the trustee of a cemetery's merchandise and services trust fund to withhold earnings and disbursements if the fund is not fully funded in accordance with this chapter.
(f) (1) The commissioner or the commissioner's duly authorized representatives are authorized to issue citations, following an on-site inspection, against cemetery companies for failure to maintain the cemetery grounds as set forth at § 46-1-304 . (2) Each citation shall be in writing and shall describe with particularity the basis of the citation. (3) Each citation shall contain an order to cease all violations of this chapter and an assessment of a civil penalty in an amount not to exceed one thousand dollars ($1,000). (4) The commissioner shall promulgate rules and regulations to specify those conditions necessary to the issuance of a citation, and the range of penalties for violations of this chapter.
(1) The commissioner or the commissioner's duly authorized representatives are authorized to issue citations, following an on-site inspection, against cemetery companies for failure to maintain the cemetery grounds as set forth at § 46-1-304 .
(2) Each citation shall be in writing and shall describe with particularity the basis of the citation.
(3) Each citation shall contain an order to cease all violations of this chapter and an assessment of a civil penalty in an amount not to exceed one thousand dollars ($1,000).
(4) The commissioner shall promulgate rules and regulations to specify those conditions necessary to the issuance of a citation, and the range of penalties for violations of this chapter.
(g) In any proceeding in which discipline provided by subsection (a), (b), (c) or (d) is imposed, the commissioner may also require the respondent cemetery company to pay all costs of the proceeding.
(h) The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, governs all matters and procedures respecting the hearing and judicial review of any contested case arising under this chapter or chapter 2 of this title.
(i) In any case where the commissioner renders a decision imposing discipline against a cemetery company under this section, the commissioner shall examine the commissioner's records to determine whether the cemetery company holds a registration or a permit in any other state. If so, the commissioner shall notify the cemetery regulatory authority of the other state of its decision, by mail, within forty-five (45) days of rendering the decision. The commissioner may also furnish information relating to proceedings resulting in disciplinary action to other public authorities and to private professional organizations having a disciplinary interest in the registrant. Where a petition for review has been filed pursuant to the Uniform Administrative Procedures Act, the notification and furnishing of information provided for in this subsection (i) shall await the resolution of the review and, if resolution is in favor of the cemetery, no notification or furnishing of information shall be made.
Acts 2006, ch. 1012, § 4.
Tenn. Code Ann. § 46-1-207 — TN Code / Title 46 / Chapter 1 / Section 46-1-207
Pre-need sales contracts - Pre-need trust accounts
Status: in_force

(a) A sales contract shall be executed in duplicate, and a signed copy given to the purchaser. The contract shall contain the names of the purchaser and the seller and the name of any person, if other than the purchaser, who is to receive the cemetery merchandise or services contracted for, and a description of the cemetery merchandise and services shall appear in the contract. (b) (1) A pre-need sales contract shall be enforceable against the purchaser, only if: (A) The seller is a cemetery company owning or operating a duly registered cemetery under this chapter; and (B) The seller, by the twentieth day of the month following the month of receipt of any consideration paid pursuant to the contract, deposits an amount equal to the procurement costs of the cemetery merchandise and services identified in the sales contract, plus twenty percent (20%) of the costs, in a special general fund trust account in a state or national bank authorized by law to administer trust funds. Upon finding that a cemetery company has failed to appropriately and timely deposit into any trust, the commissioner may, in addition to or in lieu of any other disciplinary action, require that deposits be made within a shorter time frame, after receipt of the funds, for a period not more than two (2) years after the finding of a violation. If the sales contract provides for payment on an installment or deferred basis, the seller may elect to pay into the trust account the pro rata portion relating to procurement cost of each installment or deferred payment received, or to pay one hundred twenty percent (120%) of the procurement cost computed as of the date of sale. (2) A general trust account shall be established and maintained for each cemetery owned or operated by a cemetery company, and each account shall bear the additional legend, "pre-need merchandise and services trust account." (3) (A) A trustee establishing a trust pursuant to this section may establish: (i) A separate trust fund for each pre-need cemetery contract; (ii) A single trust fund for all pre-need cemetery contracts written by an individual cemetery; or (iii) A single master trust fund for all pre-need cemetery contracts written by multiple cemetery companies based in this state. The master trust must identify the subaccounts for each individual participating cemetery company trust. (B) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to a trust, or a trustee managing a trust, established pursuant to subdivision (b)(2); and (ii) Make accounting records for the trust available to the comptroller of the treasury and the department of commerce and insurance, upon request, for review and audit. (C) If the trustee uses a board for the management of a trust established pursuant to subdivision (b)(2), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity. (c) All deposits required by this part shall be pursuant to a written trust agreement with the trustee that holds the funds. The trust agreement shall: (1) State the circumstances under which funds will be deposited and disbursed; (2) Specify the trustee's fees, if any; and (3) Provide that the trustee shall furnish the trustor an accounting of general trust balances and earnings at least annually. (d) Specific funds deposited in the trust account shall be identified or earmarked by contract number and the name of the purchaser. Nothing shall prevent the trustee from commingling the deposits in any trust fund for purposes of the management of the trust fund or the investment of funds in the trust fund. The commissioner has the discretion to audit the records and the sources of the records tendered by the trustee and has full power, including power of subpoena, to inspect the records of the trustor. Failure to comply with the subpoena of the commissioner is a Class A misdemeanor. (e) (1) For purposes of this part, procurement costs shall be the costs of the cemetery merchandise and services as of January 1 of the year in which the pre-need sales contract is executed. These costs shall be determined and substantiated by a wholesale price list of a manufacturer or supplier of the cemetery merchandise so sold or by a cost analysis or itemization of the cost of construction of lawn or mausoleum crypts sold by the cemetery company. The procurement costs so determined shall be the basis for the deposits required by subsection (b) and shall be adjusted and verified annually to the commissioner. (2) For the purposes of this part, procurement costs for interment services, including, but not limited to, entombment and inurnment services, shall not be less than the following: one hundred sixty-five dollars ($165) for interment services, one hundred ten dollars ($110) for entombment services, and forty-four dollars ($44.00) for inurnment services. The basis for determining the procurement costs for these interment services shall be provided to the commissioner annually and verified at the time of audit. The commissioner shall increase the minimum costs by the consumer price index of each calendar year beginning on January 1, 2007. (f) All deposits required by this part shall be in cash only. (g) (1) With respect to pre-need sales of mausoleum crypts, the seller may, in lieu of depositing one hundred twenty percent (120%) of procurement costs, elect to set aside a crypt in inventory comparable to each crypt sold prior to construction; provided, that: (A) The seller establishes and maintains a record of crypts in inventory reduced by the number set aside under this subsection (g); and (B) The sales contract conveys interment rights or temporary interment rights pending completion of the crypt sold prior to construction. (2) Subject to the setting aside provided for in subdivision (g)(1), the seller shall at all times maintain its pre-need merchandise and services trust account in the amount required by subsection (b). (h) The seller shall offer the purchaser the option to pay any applicable sales or use tax on the selected cemetery merchandise or services at the time the contract is entered into. If the purchaser chooses to pay the tax, it shall be remitted to the department by the seller, and shall be considered full payment for the sales or use tax on the selected cemetery merchandise or services despite any changes in tax rate or cost of cemetery merchandise or services that may occur by the time of actual use. If the purchaser later cancels the pre-need contract, the amount of tax paid shall be refunded by the seller who may then claim that amount as a credit against any sales or use tax then due from the seller. Amended by 2022 Tenn. Acts, ch. 705, s 4, eff. 1/1/2023. Amended by 2022 Tenn. Acts, ch. 705, s 3, eff. 1/1/2023. Amended by 2016 Tenn. Acts, ch. 911, Secs.s 8, s 16 eff. 4/27/2016. Acts 1979, ch. 307, §§ 4(B), 4(D); T.C.A., § 46-2-203 ; Acts 1986, ch. 693, §§ 2, 21; 1989, ch. 591, §§ 1, 6; 1996, ch. 958, § 1; 2002, ch. 685, § 1; T.C.A., § 46-2-403 ; Acts 2006, ch. 1012, § 3.
(a) A sales contract shall be executed in duplicate, and a signed copy given to the purchaser. The contract shall contain the names of the purchaser and the seller and the name of any person, if other than the purchaser, who is to receive the cemetery merchandise or services contracted for, and a description of the cemetery merchandise and services shall appear in the contract.
(b) (1) A pre-need sales contract shall be enforceable against the purchaser, only if: (A) The seller is a cemetery company owning or operating a duly registered cemetery under this chapter; and (B) The seller, by the twentieth day of the month following the month of receipt of any consideration paid pursuant to the contract, deposits an amount equal to the procurement costs of the cemetery merchandise and services identified in the sales contract, plus twenty percent (20%) of the costs, in a special general fund trust account in a state or national bank authorized by law to administer trust funds. Upon finding that a cemetery company has failed to appropriately and timely deposit into any trust, the commissioner may, in addition to or in lieu of any other disciplinary action, require that deposits be made within a shorter time frame, after receipt of the funds, for a period not more than two (2) years after the finding of a violation. If the sales contract provides for payment on an installment or deferred basis, the seller may elect to pay into the trust account the pro rata portion relating to procurement cost of each installment or deferred payment received, or to pay one hundred twenty percent (120%) of the procurement cost computed as of the date of sale. (2) A general trust account shall be established and maintained for each cemetery owned or operated by a cemetery company, and each account shall bear the additional legend, "pre-need merchandise and services trust account." (3) (A) A trustee establishing a trust pursuant to this section may establish: (i) A separate trust fund for each pre-need cemetery contract; (ii) A single trust fund for all pre-need cemetery contracts written by an individual cemetery; or (iii) A single master trust fund for all pre-need cemetery contracts written by multiple cemetery companies based in this state. The master trust must identify the subaccounts for each individual participating cemetery company trust. (B) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to a trust, or a trustee managing a trust, established pursuant to subdivision (b)(2); and (ii) Make accounting records for the trust available to the comptroller of the treasury and the department of commerce and insurance, upon request, for review and audit. (C) If the trustee uses a board for the management of a trust established pursuant to subdivision (b)(2), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(1) A pre-need sales contract shall be enforceable against the purchaser, only if: (A) The seller is a cemetery company owning or operating a duly registered cemetery under this chapter; and (B) The seller, by the twentieth day of the month following the month of receipt of any consideration paid pursuant to the contract, deposits an amount equal to the procurement costs of the cemetery merchandise and services identified in the sales contract, plus twenty percent (20%) of the costs, in a special general fund trust account in a state or national bank authorized by law to administer trust funds. Upon finding that a cemetery company has failed to appropriately and timely deposit into any trust, the commissioner may, in addition to or in lieu of any other disciplinary action, require that deposits be made within a shorter time frame, after receipt of the funds, for a period not more than two (2) years after the finding of a violation. If the sales contract provides for payment on an installment or deferred basis, the seller may elect to pay into the trust account the pro rata portion relating to procurement cost of each installment or deferred payment received, or to pay one hundred twenty percent (120%) of the procurement cost computed as of the date of sale.
(A) The seller is a cemetery company owning or operating a duly registered cemetery under this chapter; and
(B) The seller, by the twentieth day of the month following the month of receipt of any consideration paid pursuant to the contract, deposits an amount equal to the procurement costs of the cemetery merchandise and services identified in the sales contract, plus twenty percent (20%) of the costs, in a special general fund trust account in a state or national bank authorized by law to administer trust funds. Upon finding that a cemetery company has failed to appropriately and timely deposit into any trust, the commissioner may, in addition to or in lieu of any other disciplinary action, require that deposits be made within a shorter time frame, after receipt of the funds, for a period not more than two (2) years after the finding of a violation. If the sales contract provides for payment on an installment or deferred basis, the seller may elect to pay into the trust account the pro rata portion relating to procurement cost of each installment or deferred payment received, or to pay one hundred twenty percent (120%) of the procurement cost computed as of the date of sale.
(2) A general trust account shall be established and maintained for each cemetery owned or operated by a cemetery company, and each account shall bear the additional legend, "pre-need merchandise and services trust account."
(3) (A) A trustee establishing a trust pursuant to this section may establish: (i) A separate trust fund for each pre-need cemetery contract; (ii) A single trust fund for all pre-need cemetery contracts written by an individual cemetery; or (iii) A single master trust fund for all pre-need cemetery contracts written by multiple cemetery companies based in this state. The master trust must identify the subaccounts for each individual participating cemetery company trust. (B) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to a trust, or a trustee managing a trust, established pursuant to subdivision (b)(2); and (ii) Make accounting records for the trust available to the comptroller of the treasury and the department of commerce and insurance, upon request, for review and audit. (C) If the trustee uses a board for the management of a trust established pursuant to subdivision (b)(2), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(A) A trustee establishing a trust pursuant to this section may establish: (i) A separate trust fund for each pre-need cemetery contract; (ii) A single trust fund for all pre-need cemetery contracts written by an individual cemetery; or (iii) A single master trust fund for all pre-need cemetery contracts written by multiple cemetery companies based in this state. The master trust must identify the subaccounts for each individual participating cemetery company trust.
(i) A separate trust fund for each pre-need cemetery contract;
(ii) A single trust fund for all pre-need cemetery contracts written by an individual cemetery; or
(iii) A single master trust fund for all pre-need cemetery contracts written by multiple cemetery companies based in this state. The master trust must identify the subaccounts for each individual participating cemetery company trust.
(B) A trustee managing a trust established pursuant to this section shall: (i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to a trust, or a trustee managing a trust, established pursuant to subdivision (b)(2); and (ii) Make accounting records for the trust available to the comptroller of the treasury and the department of commerce and insurance, upon request, for review and audit.
(i) Manage the trust in accordance with the Tennessee Uniform Prudent Investor Act of 2002, compiled in title 35, chapter 14; however, § 35-14-103(b) does not apply to a trust, or a trustee managing a trust, established pursuant to subdivision (b)(2); and
(ii) Make accounting records for the trust available to the comptroller of the treasury and the department of commerce and insurance, upon request, for review and audit.
(C) If the trustee uses a board for the management of a trust established pursuant to subdivision (b)(2), then the trustee must maintain insurance on behalf of each board member against liability asserted against or incurred by the board member in that capacity.
(c) All deposits required by this part shall be pursuant to a written trust agreement with the trustee that holds the funds. The trust agreement shall: (1) State the circumstances under which funds will be deposited and disbursed; (2) Specify the trustee's fees, if any; and (3) Provide that the trustee shall furnish the trustor an accounting of general trust balances and earnings at least annually.
(1) State the circumstances under which funds will be deposited and disbursed;
(2) Specify the trustee's fees, if any; and
(3) Provide that the trustee shall furnish the trustor an accounting of general trust balances and earnings at least annually.
(d) Specific funds deposited in the trust account shall be identified or earmarked by contract number and the name of the purchaser. Nothing shall prevent the trustee from commingling the deposits in any trust fund for purposes of the management of the trust fund or the investment of funds in the trust fund. The commissioner has the discretion to audit the records and the sources of the records tendered by the trustee and has full power, including power of subpoena, to inspect the records of the trustor. Failure to comply with the subpoena of the commissioner is a Class A misdemeanor.
(e) (1) For purposes of this part, procurement costs shall be the costs of the cemetery merchandise and services as of January 1 of the year in which the pre-need sales contract is executed. These costs shall be determined and substantiated by a wholesale price list of a manufacturer or supplier of the cemetery merchandise so sold or by a cost analysis or itemization of the cost of construction of lawn or mausoleum crypts sold by the cemetery company. The procurement costs so determined shall be the basis for the deposits required by subsection (b) and shall be adjusted and verified annually to the commissioner. (2) For the purposes of this part, procurement costs for interment services, including, but not limited to, entombment and inurnment services, shall not be less than the following: one hundred sixty-five dollars ($165) for interment services, one hundred ten dollars ($110) for entombment services, and forty-four dollars ($44.00) for inurnment services. The basis for determining the procurement costs for these interment services shall be provided to the commissioner annually and verified at the time of audit. The commissioner shall increase the minimum costs by the consumer price index of each calendar year beginning on January 1, 2007.
(1) For purposes of this part, procurement costs shall be the costs of the cemetery merchandise and services as of January 1 of the year in which the pre-need sales contract is executed. These costs shall be determined and substantiated by a wholesale price list of a manufacturer or supplier of the cemetery merchandise so sold or by a cost analysis or itemization of the cost of construction of lawn or mausoleum crypts sold by the cemetery company. The procurement costs so determined shall be the basis for the deposits required by subsection (b) and shall be adjusted and verified annually to the commissioner.
(2) For the purposes of this part, procurement costs for interment services, including, but not limited to, entombment and inurnment services, shall not be less than the following: one hundred sixty-five dollars ($165) for interment services, one hundred ten dollars ($110) for entombment services, and forty-four dollars ($44.00) for inurnment services. The basis for determining the procurement costs for these interment services shall be provided to the commissioner annually and verified at the time of audit. The commissioner shall increase the minimum costs by the consumer price index of each calendar year beginning on January 1, 2007.
(f) All deposits required by this part shall be in cash only.
(g) (1) With respect to pre-need sales of mausoleum crypts, the seller may, in lieu of depositing one hundred twenty percent (120%) of procurement costs, elect to set aside a crypt in inventory comparable to each crypt sold prior to construction; provided, that: (A) The seller establishes and maintains a record of crypts in inventory reduced by the number set aside under this subsection (g); and (B) The sales contract conveys interment rights or temporary interment rights pending completion of the crypt sold prior to construction. (2) Subject to the setting aside provided for in subdivision (g)(1), the seller shall at all times maintain its pre-need merchandise and services trust account in the amount required by subsection (b).
(1) With respect to pre-need sales of mausoleum crypts, the seller may, in lieu of depositing one hundred twenty percent (120%) of procurement costs, elect to set aside a crypt in inventory comparable to each crypt sold prior to construction; provided, that: (A) The seller establishes and maintains a record of crypts in inventory reduced by the number set aside under this subsection (g); and (B) The sales contract conveys interment rights or temporary interment rights pending completion of the crypt sold prior to construction.
(A) The seller establishes and maintains a record of crypts in inventory reduced by the number set aside under this subsection (g); and
(B) The sales contract conveys interment rights or temporary interment rights pending completion of the crypt sold prior to construction.
(2) Subject to the setting aside provided for in subdivision (g)(1), the seller shall at all times maintain its pre-need merchandise and services trust account in the amount required by subsection (b).
(h) The seller shall offer the purchaser the option to pay any applicable sales or use tax on the selected cemetery merchandise or services at the time the contract is entered into. If the purchaser chooses to pay the tax, it shall be remitted to the department by the seller, and shall be considered full payment for the sales or use tax on the selected cemetery merchandise or services despite any changes in tax rate or cost of cemetery merchandise or services that may occur by the time of actual use. If the purchaser later cancels the pre-need contract, the amount of tax paid shall be refunded by the seller who may then claim that amount as a credit against any sales or use tax then due from the seller.
Amended by 2022 Tenn. Acts, ch. 705, s 4, eff. 1/1/2023.
Amended by 2022 Tenn. Acts, ch. 705, s 3, eff. 1/1/2023.
Amended by 2016 Tenn. Acts, ch. 911, Secs.s 8, s 16 eff. 4/27/2016.
Acts 1979, ch. 307, §§ 4(B), 4(D); T.C.A., § 46-2-203 ; Acts 1986, ch. 693, §§ 2, 21; 1989, ch. 591, §§ 1, 6; 1996, ch. 958, § 1; 2002, ch. 685, § 1; T.C.A., § 46-2-403 ; Acts 2006, ch. 1012, § 3.
Tenn. Code Ann. § 46-1-209 — TN Code / Title 46 / Chapter 1 / Section 46-1-209
Satisfaction of contract - Cancellation of contract - Substitution of cemetery merchandise or services
Status: in_force

(a) If for any reason a cemetery company that has entered into a contract for the sale of cemetery merchandise or services and has made the deposit into the trust funds as required in this part, cannot or does not provide the cemetery merchandise or perform the services called for by the contract within a reasonable time upon request, the purchaser, or the purchaser's heirs or assigns, or duly authorized representatives, shall have the right to provide the cemetery merchandise or services; and, having done so, shall be entitled to receive the deposit to the credit of that particular contract. Written instructions to the trustee by the cemetery company directing the trustee to refund the amount of money on deposit, or an affidavit by either the purchaser, or one (1) of the purchaser's heirs or assigns, or duly authorized representative, stating that the cemetery merchandise or services were not provided, shall be sufficient authority for the trustee to make refund of the funds on deposit to the person submitting the affidavit. However, nothing in this subsection (a) shall relieve the cemetery company from any liability for nonperformance of the contract. (b) If the purchaser is in default on making payments under the sales contract for a period of ninety (90) consecutive days, the cemetery company shall have the right to cancel the contract and to withdraw from the trust fund the entire balance to the credit of the defaulting purchaser's account as liquidated damages. In that event, the trustee shall deliver the balance to the cemetery company upon its certification of the default by the purchaser; and upon receiving the certification, the trustee may rely on the certification and shall not be liable to anyone for such reliance. (c) In the event the purchaser, or the purchaser's heirs or assigns, or authorized representatives, desire to substitute cemetery merchandise or services different from that which is specified in the sales contract because of changed conditions or practices in burial customs, the cemetery company shall give credit to the extent of all moneys already paid toward the payment of the substituted cemetery merchandise or services; provided, that the original sales contract has not been completed. Amended by 2016 Tenn. Acts, ch. 911,s 16, eff. 4/27/2016. Amended by 2015 Tenn. Acts, ch. 288,s 7, eff. 1/1/2016. Acts 1979, ch. 307, § 4(E); T.C.A., § 46-2-206; T.C.A., § 46-2-406 ; Acts 2006, ch. 1012, § 3.
(a) If for any reason a cemetery company that has entered into a contract for the sale of cemetery merchandise or services and has made the deposit into the trust funds as required in this part, cannot or does not provide the cemetery merchandise or perform the services called for by the contract within a reasonable time upon request, the purchaser, or the purchaser's heirs or assigns, or duly authorized representatives, shall have the right to provide the cemetery merchandise or services; and, having done so, shall be entitled to receive the deposit to the credit of that particular contract. Written instructions to the trustee by the cemetery company directing the trustee to refund the amount of money on deposit, or an affidavit by either the purchaser, or one (1) of the purchaser's heirs or assigns, or duly authorized representative, stating that the cemetery merchandise or services were not provided, shall be sufficient authority for the trustee to make refund of the funds on deposit to the person submitting the affidavit. However, nothing in this subsection (a) shall relieve the cemetery company from any liability for nonperformance of the contract.
(b) If the purchaser is in default on making payments under the sales contract for a period of ninety (90) consecutive days, the cemetery company shall have the right to cancel the contract and to withdraw from the trust fund the entire balance to the credit of the defaulting purchaser's account as liquidated damages. In that event, the trustee shall deliver the balance to the cemetery company upon its certification of the default by the purchaser; and upon receiving the certification, the trustee may rely on the certification and shall not be liable to anyone for such reliance.
(c) In the event the purchaser, or the purchaser's heirs or assigns, or authorized representatives, desire to substitute cemetery merchandise or services different from that which is specified in the sales contract because of changed conditions or practices in burial customs, the cemetery company shall give credit to the extent of all moneys already paid toward the payment of the substituted cemetery merchandise or services; provided, that the original sales contract has not been completed.
Amended by 2016 Tenn. Acts, ch. 911,s 16, eff. 4/27/2016.
Amended by 2015 Tenn. Acts, ch. 288,s 7, eff. 1/1/2016.
Acts 1979, ch. 307, § 4(E); T.C.A., § 46-2-206; T.C.A., § 46-2-406 ; Acts 2006, ch. 1012, § 3.
Tenn. Code Ann. § 46-1-312 — TN Code / Title 46 / Chapter 1 / Section 46-1-312
Requirements for appointing a receiver to manage a cemetery
Status: in_force

(a) (1) The Davidson County chancery court, upon the petition of the commissioner, may appoint the commissioner as receiver to take charge of, control and manage a cemetery registered or required to be registered with the commissioner, upon determining that any of the following grounds exist: (A) The cemetery has not maintained trust funds in the manner required by this chapter; (B) The cemetery has allowed its registration to lapse, or the registration has been revoked; (C) The cemetery is impaired or insolvent; (D) The cemetery has refused to submit its books, records, accounts, or affairs to examination by the commissioner; (E) There is reasonable cause to believe that there has been embezzlement, misappropriation, or other wrongful misapplication or use of trust funds or fraud affecting the ability of the cemetery to perform its obligation to perform improvement care or deliver cemetery merchandise or services; (F) The cemetery has failed to file any report required by this chapter; (G) The cemetery cannot or will not be able to meet all of its contractual obligations when they come due; (H) A deficiency exists in the improvement care trust fund of any cemetery or separate geographical site of a cemetery; or (I) The cemetery is not being operated in compliance with the terms and conditions of an order of the commissioner then in force and effect. (2) For the purpose of this section, the Davidson County chancery court shall have exclusive jurisdiction over matters brought under this section, and that court is authorized to make all necessary or appropriate orders to carry out the purposes of this part. (3) Receivership proceedings instituted pursuant to this part shall constitute the sole and exclusive method of liquidating, rehabilitating, or conserving a cemetery, and no court shall entertain a petition for the commencement of the proceedings unless the petition has been filed in the name of the state on the relation of the commissioner. (4) The commissioner shall commence any such proceeding by application to the court for an order directing the cemetery to show cause why the commissioner should not have the relief prayed for in the application. (5) On the return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the public may require. (6) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this subsection (a) shall serve at the pleasure of the commissioner. (7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners and directors, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery. (8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery. (9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver for approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned, taking into consideration the overall operation of the cemetery, and the interests of the lot owners, next of kin of lot owners, and descendants of lot owners and the general public. If the plan is approved, the receiver shall carry out the plan. (b) The receiver so appointed may employ the proceeds from the sale of lots, and all other saleable items and the income from the operation of the cemetery, over and above that portion due the improvement care trust fund, and other special care funds, and the amount reasonably necessary for the operation and maintenance of the cemetery business, to reduce the deficiency in the improvement care trust fund, upon the terms and conditions and in the manner deemed appropriate by the chancellor, taking into consideration the overall operation of the cemetery, and the interests of the lot owners, next of kin of lot owners, and descendants of lot owners and the general public. (c) If the sole ground for a receivership was a deficiency in the improvement care trust fund, the chancellor shall, upon a showing that the deficiency in the improvement care trust fund has been eliminated, terminate the suspension of the certificate of registration, compensate the receiver, dissolve the receivership, and restore the management of the cemetery to its owner. (d) Should it appear to the court that it is impossible to correct the deficiency in the improvement care fund, the court may proceed to order the sale of the cemetery as provided in § 46-1-309 , or may otherwise order the termination of the use of the land as a cemetery as provided by law. (e) (1) For purposes of this subsection (e), Davidson County chancery court has exclusive jurisdiction over matters brought under this subsection (e). In addition, any receiver appointed pursuant to this subsection (e) is authorized to use all remedies available to a receiver pursuant to title 56, chapter 9. (2) Notwithstanding any provision of this section to the contrary, and in addition to or in lieu of any other authority granted to the commissioner by this chapter, the commissioner may file in the Davidson County chancery court a petition alleging, with respect to a cemetery subject to registration pursuant to this chapter: (A) That there exists grounds that would justify a court order of a deficiency in either the improvement care or pre-need merchandise and services trust fund of a cemetery; (B) That the interests of the public will be endangered by delay; and (C) The contents of an order deemed necessary by the commissioner. (3) Upon a filing under subdivision (e)(2), the Davidson County chancery court may issue, ex parte and without a hearing, the requested order, which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents and other records of a cemetery, and of the premises occupied by it for transaction of its business, and until further order of the court, enjoin the cemetery and its owners, officers, directors, operators, managers, agents and employees from disposition of its property and from the transaction of its business, except with the written consent of the commissioner. (4) The Davidson County chancery court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the commissioner to ascertain the condition of the cemetery. On motion of either party or on its own motion, the court may, from time to time, hold such hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order, if the commissioner fails to commence a contested case proceeding to impose any appropriate, lawful disciplinary action against the cemetery after having had a reasonable opportunity to do so. An order of the commissioner pursuant to a contested case proceeding under this chapter shall ipso facto vacate the seizure order. (5) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the cemetery. (6) (A) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery company and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this section shall serve at the pleasure of the commissioner. (B) In the event that the property of the cemetery or its owners, officers, directors or operators does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs incurred out of any appropriation for the maintenance of the department of commerce and insurance. Any amounts advanced for expenses of administration shall be repaid to the commissioner for the use of the department out of the first available money of the cemetery. (7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners, directors and operators, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery. (8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director, operator or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery. (9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver of approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the receiver shall carry out the plan. Amended by 2014 Tenn. Acts, ch. 560,Secs.s1, s2 eff. 3/21/2014. Amended by 2016 Tenn. Acts, ch. 911,s 16, eff. 4/27/2016. Acts 1976, ch. 773, § 10; T.C.A., §§ 46-223, 46-2-123; T.C.A., § 46-2-312 ; Acts 2006, ch. 1012, § 4; 2010, ch. 665, § 1.
(a) (1) The Davidson County chancery court, upon the petition of the commissioner, may appoint the commissioner as receiver to take charge of, control and manage a cemetery registered or required to be registered with the commissioner, upon determining that any of the following grounds exist: (A) The cemetery has not maintained trust funds in the manner required by this chapter; (B) The cemetery has allowed its registration to lapse, or the registration has been revoked; (C) The cemetery is impaired or insolvent; (D) The cemetery has refused to submit its books, records, accounts, or affairs to examination by the commissioner; (E) There is reasonable cause to believe that there has been embezzlement, misappropriation, or other wrongful misapplication or use of trust funds or fraud affecting the ability of the cemetery to perform its obligation to perform improvement care or deliver cemetery merchandise or services; (F) The cemetery has failed to file any report required by this chapter; (G) The cemetery cannot or will not be able to meet all of its contractual obligations when they come due; (H) A deficiency exists in the improvement care trust fund of any cemetery or separate geographical site of a cemetery; or (I) The cemetery is not being operated in compliance with the terms and conditions of an order of the commissioner then in force and effect. (2) For the purpose of this section, the Davidson County chancery court shall have exclusive jurisdiction over matters brought under this section, and that court is authorized to make all necessary or appropriate orders to carry out the purposes of this part. (3) Receivership proceedings instituted pursuant to this part shall constitute the sole and exclusive method of liquidating, rehabilitating, or conserving a cemetery, and no court shall entertain a petition for the commencement of the proceedings unless the petition has been filed in the name of the state on the relation of the commissioner. (4) The commissioner shall commence any such proceeding by application to the court for an order directing the cemetery to show cause why the commissioner should not have the relief prayed for in the application. (5) On the return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the public may require. (6) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this subsection (a) shall serve at the pleasure of the commissioner. (7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners and directors, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery. (8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery. (9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver for approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned, taking into consideration the overall operation of the cemetery, and the interests of the lot owners, next of kin of lot owners, and descendants of lot owners and the general public. If the plan is approved, the receiver shall carry out the plan.
(1) The Davidson County chancery court, upon the petition of the commissioner, may appoint the commissioner as receiver to take charge of, control and manage a cemetery registered or required to be registered with the commissioner, upon determining that any of the following grounds exist: (A) The cemetery has not maintained trust funds in the manner required by this chapter; (B) The cemetery has allowed its registration to lapse, or the registration has been revoked; (C) The cemetery is impaired or insolvent; (D) The cemetery has refused to submit its books, records, accounts, or affairs to examination by the commissioner; (E) There is reasonable cause to believe that there has been embezzlement, misappropriation, or other wrongful misapplication or use of trust funds or fraud affecting the ability of the cemetery to perform its obligation to perform improvement care or deliver cemetery merchandise or services; (F) The cemetery has failed to file any report required by this chapter; (G) The cemetery cannot or will not be able to meet all of its contractual obligations when they come due; (H) A deficiency exists in the improvement care trust fund of any cemetery or separate geographical site of a cemetery; or (I) The cemetery is not being operated in compliance with the terms and conditions of an order of the commissioner then in force and effect.
(A) The cemetery has not maintained trust funds in the manner required by this chapter;
(B) The cemetery has allowed its registration to lapse, or the registration has been revoked;
(C) The cemetery is impaired or insolvent;
(D) The cemetery has refused to submit its books, records, accounts, or affairs to examination by the commissioner;
(E) There is reasonable cause to believe that there has been embezzlement, misappropriation, or other wrongful misapplication or use of trust funds or fraud affecting the ability of the cemetery to perform its obligation to perform improvement care or deliver cemetery merchandise or services;
(F) The cemetery has failed to file any report required by this chapter;
(G) The cemetery cannot or will not be able to meet all of its contractual obligations when they come due;
(H) A deficiency exists in the improvement care trust fund of any cemetery or separate geographical site of a cemetery; or
(I) The cemetery is not being operated in compliance with the terms and conditions of an order of the commissioner then in force and effect.
(2) For the purpose of this section, the Davidson County chancery court shall have exclusive jurisdiction over matters brought under this section, and that court is authorized to make all necessary or appropriate orders to carry out the purposes of this part.
(3) Receivership proceedings instituted pursuant to this part shall constitute the sole and exclusive method of liquidating, rehabilitating, or conserving a cemetery, and no court shall entertain a petition for the commencement of the proceedings unless the petition has been filed in the name of the state on the relation of the commissioner.
(4) The commissioner shall commence any such proceeding by application to the court for an order directing the cemetery to show cause why the commissioner should not have the relief prayed for in the application.
(5) On the return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of the public may require.
(6) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this subsection (a) shall serve at the pleasure of the commissioner.
(7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners and directors, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery.
(8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery.
(9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver for approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned, taking into consideration the overall operation of the cemetery, and the interests of the lot owners, next of kin of lot owners, and descendants of lot owners and the general public. If the plan is approved, the receiver shall carry out the plan.
(b) The receiver so appointed may employ the proceeds from the sale of lots, and all other saleable items and the income from the operation of the cemetery, over and above that portion due the improvement care trust fund, and other special care funds, and the amount reasonably necessary for the operation and maintenance of the cemetery business, to reduce the deficiency in the improvement care trust fund, upon the terms and conditions and in the manner deemed appropriate by the chancellor, taking into consideration the overall operation of the cemetery, and the interests of the lot owners, next of kin of lot owners, and descendants of lot owners and the general public.
(c) If the sole ground for a receivership was a deficiency in the improvement care trust fund, the chancellor shall, upon a showing that the deficiency in the improvement care trust fund has been eliminated, terminate the suspension of the certificate of registration, compensate the receiver, dissolve the receivership, and restore the management of the cemetery to its owner.
(d) Should it appear to the court that it is impossible to correct the deficiency in the improvement care fund, the court may proceed to order the sale of the cemetery as provided in § 46-1-309 , or may otherwise order the termination of the use of the land as a cemetery as provided by law.
(e) (1) For purposes of this subsection (e), Davidson County chancery court has exclusive jurisdiction over matters brought under this subsection (e). In addition, any receiver appointed pursuant to this subsection (e) is authorized to use all remedies available to a receiver pursuant to title 56, chapter 9. (2) Notwithstanding any provision of this section to the contrary, and in addition to or in lieu of any other authority granted to the commissioner by this chapter, the commissioner may file in the Davidson County chancery court a petition alleging, with respect to a cemetery subject to registration pursuant to this chapter: (A) That there exists grounds that would justify a court order of a deficiency in either the improvement care or pre-need merchandise and services trust fund of a cemetery; (B) That the interests of the public will be endangered by delay; and (C) The contents of an order deemed necessary by the commissioner. (3) Upon a filing under subdivision (e)(2), the Davidson County chancery court may issue, ex parte and without a hearing, the requested order, which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents and other records of a cemetery, and of the premises occupied by it for transaction of its business, and until further order of the court, enjoin the cemetery and its owners, officers, directors, operators, managers, agents and employees from disposition of its property and from the transaction of its business, except with the written consent of the commissioner. (4) The Davidson County chancery court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the commissioner to ascertain the condition of the cemetery. On motion of either party or on its own motion, the court may, from time to time, hold such hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order, if the commissioner fails to commence a contested case proceeding to impose any appropriate, lawful disciplinary action against the cemetery after having had a reasonable opportunity to do so. An order of the commissioner pursuant to a contested case proceeding under this chapter shall ipso facto vacate the seizure order. (5) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the cemetery. (6) (A) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery company and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this section shall serve at the pleasure of the commissioner. (B) In the event that the property of the cemetery or its owners, officers, directors or operators does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs incurred out of any appropriation for the maintenance of the department of commerce and insurance. Any amounts advanced for expenses of administration shall be repaid to the commissioner for the use of the department out of the first available money of the cemetery. (7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners, directors and operators, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery. (8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director, operator or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery. (9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver of approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the receiver shall carry out the plan.
(1) For purposes of this subsection (e), Davidson County chancery court has exclusive jurisdiction over matters brought under this subsection (e). In addition, any receiver appointed pursuant to this subsection (e) is authorized to use all remedies available to a receiver pursuant to title 56, chapter 9.
(2) Notwithstanding any provision of this section to the contrary, and in addition to or in lieu of any other authority granted to the commissioner by this chapter, the commissioner may file in the Davidson County chancery court a petition alleging, with respect to a cemetery subject to registration pursuant to this chapter: (A) That there exists grounds that would justify a court order of a deficiency in either the improvement care or pre-need merchandise and services trust fund of a cemetery; (B) That the interests of the public will be endangered by delay; and (C) The contents of an order deemed necessary by the commissioner.
(A) That there exists grounds that would justify a court order of a deficiency in either the improvement care or pre-need merchandise and services trust fund of a cemetery;
(B) That the interests of the public will be endangered by delay; and
(C) The contents of an order deemed necessary by the commissioner.
(3) Upon a filing under subdivision (e)(2), the Davidson County chancery court may issue, ex parte and without a hearing, the requested order, which shall direct the commissioner to take possession and control of all or a part of the property, books, accounts, documents and other records of a cemetery, and of the premises occupied by it for transaction of its business, and until further order of the court, enjoin the cemetery and its owners, officers, directors, operators, managers, agents and employees from disposition of its property and from the transaction of its business, except with the written consent of the commissioner.
(4) The Davidson County chancery court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the commissioner to ascertain the condition of the cemetery. On motion of either party or on its own motion, the court may, from time to time, hold such hearings as it deems desirable after notice as it deems appropriate, and may extend, shorten or modify the terms of the seizure order. The court shall vacate the seizure order, if the commissioner fails to commence a contested case proceeding to impose any appropriate, lawful disciplinary action against the cemetery after having had a reasonable opportunity to do so. An order of the commissioner pursuant to a contested case proceeding under this chapter shall ipso facto vacate the seizure order.
(5) Entry of a seizure order under this section shall not constitute an anticipatory breach of any contract of the cemetery.
(6) (A) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery company and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this section shall serve at the pleasure of the commissioner. (B) In the event that the property of the cemetery or its owners, officers, directors or operators does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs incurred out of any appropriation for the maintenance of the department of commerce and insurance. Any amounts advanced for expenses of administration shall be repaid to the commissioner for the use of the department out of the first available money of the cemetery.
(A) The commissioner may appoint one (1) or more special deputies, who have all the powers and responsibilities of the receiver granted under this section and the commissioner may employ such counsel, clerks and assistants as deemed necessary. The compensation of the special deputy, counsel, clerks and assistants, and all expenses of taking possession of the cemetery company and of conducting the proceedings, shall be fixed by the commissioner, with the approval of the Davidson County chancery court, and shall be paid out of the funds or assets of the cemetery. The persons appointed under this section shall serve at the pleasure of the commissioner.
(B) In the event that the property of the cemetery or its owners, officers, directors or operators does not contain sufficient cash or liquid assets to defray the costs incurred, the commissioner may advance the costs incurred out of any appropriation for the maintenance of the department of commerce and insurance. Any amounts advanced for expenses of administration shall be repaid to the commissioner for the use of the department out of the first available money of the cemetery.
(7) The receiver may take such action as the receiver deems necessary or appropriate to reform and revitalize the cemetery. The receiver has all the powers of the owners, directors and operators, whose authority shall be suspended, except as they are redelegated by the receiver. The receiver has full power to direct and manage, to hire and discharge any employees subject to any contractual rights they may have, and to deal with the property and business of the cemetery.
(8) If it appears to the receiver that there has been criminal or tortious conduct, or breach of any contractual or fiduciary obligation detrimental to the cemetery by any owner, officer, director, operator or other person, the receiver may pursue all appropriate legal remedies on behalf of the cemetery.
(9) If the receiver determines that reorganization, consolidation, conversion, merger or other transformation of the cemetery is appropriate, the receiver shall prepare a plan to effect those changes. Upon application of the receiver of approval of the plan, and after such notice and hearings as the Davidson County chancery court may prescribe, the court may either approve or disapprove the plan proposed, or may modify it and approve it as modified. Any plan approved under this section shall be, in the judgment of the court, fair and equitable to all parties concerned. If the plan is approved, the receiver shall carry out the plan.
Amended by 2014 Tenn. Acts, ch. 560,Secs.s1, s2 eff. 3/21/2014.
Amended by 2016 Tenn. Acts, ch. 911,s 16, eff. 4/27/2016.
Acts 1976, ch. 773, § 10; T.C.A., §§ 46-223, 46-2-123; T.C.A., § 46-2-312 ; Acts 2006, ch. 1012, § 4; 2010, ch. 665, § 1.
Tenn. Code Ann. § 46-6-105 — TN Code / Title 46 / Chapter 6 / Section 46-6-105
Eligibility for interment
Status: in_force

Eligibility for interment in a state veterans' cemetery shall be determined under 38 U.S.C. § 2402 . Added by 2016 Tenn. Acts, ch. 715,s 2, eff. 4/6/2016.
Eligibility for interment in a state veterans' cemetery shall be determined under 38 U.S.C. § 2402 .
Added by 2016 Tenn. Acts, ch. 715,s 2, eff. 4/6/2016.
Tenn. Code Ann. § 46-1-215 — TN Code / Title 46 / Chapter 1 / Section 46-1-215
Financial reports
Status: in_force

(a) Within seventy-five (75) days after the end of the calendar year or its fiscal year and within seventy-five (75) days on an annual basis thereafter, each cemetery company shall file with the commissioner a report of its condition, on forms provided by the commissioner, which report shall contain the following information: (1) The name of the cemetery company, the date of incorporation, if incorporated, and the location of the cemetery or cemeteries owned by the company; (2) The amounts of sales of cemetery lots, grave spaces, mausoleum crypts or niches for which payment has been made in full or certificates or deeds of conveyance issued on cemetery lots, grave spaces, crypt or niches during the preceding calendar or fiscal year; (3) The amounts received for the special care of any lots, graves, crypts, niches, family mausoleums, memorials, markers or monuments; (4) The amounts received for the memorial care of commodities; (5) The amounts paid into the permanent improvement care fund, and the income earned from the fund during the preceding fiscal year; (6) The number of acres embraced within each cemetery and held by the cemetery company for cemetery purposes; (7) The names and addresses of the owners of the cemetery company or the officers and directors of the corporation, and any change of control that has occurred during the past calendar or fiscal year; and (8) The total of all expenditures of income from the improvement care trust fund. (b) (1) Within forty-five (45) days after the end of the calendar or fiscal year of the cemetery company, the trustee of the improvement care fund of the cemetery company shall file with the commissioner a financial report with respect to the trust fund on forms that are obtained from the commissioner. The report shall include, but not be limited to, specific disclosure of the following: (A) The current value of the assets, on both a book value and market value basis, and liabilities of the trust as of the beginning and end of the fiscal year of the trust; (B) All sales, exchanges, or leases of any property between the trust and the cemetery company, any owner of an interest in the cemetery company, any officers or directors or managers of the cemetery company, or immediate family of any such person; (C) Any loans by the trust or fixed income obligations due the trust that are classified as uncollectible or in default as of the close of the fiscal year of the trust; (D) Whether the trust at any time held twenty percent (20%) or more of its assets in any single security, debt, mortgage, parcel of real estate, or partnership/joint venture interests; (E) Whether the trust at any time engaged in any transaction or series of related transactions involving twenty percent (20%) or more of the current value of the trust; and (F) Whether there were any purchases of nonpublicly traded securities by the trust, the value of which was set without an appraisal by an independent third party. (2) The commissioner may require the trustee to make additional financial reports that the commissioner deems necessary. (c) For late filing of a report required under this section, a cemetery company shall pay a late penalty not to exceed one hundred dollars ($100) for each month or fraction thereof that the report is late. The commissioner is authorized to establish the amount of the late penalty by promulgating rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. (d) The commissioner may promulgate rules and regulations that are reasonably necessary to require cemeteries to submit audited financial statements or other financial reports prepared by independent certified public accountants. Acts 1927, ch. 75, § 3; mod. Code 1932, § 3924; Acts 1961, ch. 44, § 2; 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-106; Acts 1973, ch. 272, § 7; 1976, ch. 773, § 5; T.C.A., §§ 46-206, 46-2-106; Acts 1980, ch. 780, § 4; 1995, ch. 203, § 2; 1995, ch. 485, §§ 1, 6; 1997, ch. 374, § 1; T.C.A., § 46-2-202 ; Acts 2006, ch. 1012, § 3; 2009, ch. 356, § 5.
(a) Within seventy-five (75) days after the end of the calendar year or its fiscal year and within seventy-five (75) days on an annual basis thereafter, each cemetery company shall file with the commissioner a report of its condition, on forms provided by the commissioner, which report shall contain the following information: (1) The name of the cemetery company, the date of incorporation, if incorporated, and the location of the cemetery or cemeteries owned by the company; (2) The amounts of sales of cemetery lots, grave spaces, mausoleum crypts or niches for which payment has been made in full or certificates or deeds of conveyance issued on cemetery lots, grave spaces, crypt or niches during the preceding calendar or fiscal year; (3) The amounts received for the special care of any lots, graves, crypts, niches, family mausoleums, memorials, markers or monuments; (4) The amounts received for the memorial care of commodities; (5) The amounts paid into the permanent improvement care fund, and the income earned from the fund during the preceding fiscal year; (6) The number of acres embraced within each cemetery and held by the cemetery company for cemetery purposes; (7) The names and addresses of the owners of the cemetery company or the officers and directors of the corporation, and any change of control that has occurred during the past calendar or fiscal year; and (8) The total of all expenditures of income from the improvement care trust fund.
(1) The name of the cemetery company, the date of incorporation, if incorporated, and the location of the cemetery or cemeteries owned by the company;
(2) The amounts of sales of cemetery lots, grave spaces, mausoleum crypts or niches for which payment has been made in full or certificates or deeds of conveyance issued on cemetery lots, grave spaces, crypt or niches during the preceding calendar or fiscal year;
(3) The amounts received for the special care of any lots, graves, crypts, niches, family mausoleums, memorials, markers or monuments;
(4) The amounts received for the memorial care of commodities;
(5) The amounts paid into the permanent improvement care fund, and the income earned from the fund during the preceding fiscal year;
(6) The number of acres embraced within each cemetery and held by the cemetery company for cemetery purposes;
(7) The names and addresses of the owners of the cemetery company or the officers and directors of the corporation, and any change of control that has occurred during the past calendar or fiscal year; and
(8) The total of all expenditures of income from the improvement care trust fund.
(b) (1) Within forty-five (45) days after the end of the calendar or fiscal year of the cemetery company, the trustee of the improvement care fund of the cemetery company shall file with the commissioner a financial report with respect to the trust fund on forms that are obtained from the commissioner. The report shall include, but not be limited to, specific disclosure of the following: (A) The current value of the assets, on both a book value and market value basis, and liabilities of the trust as of the beginning and end of the fiscal year of the trust; (B) All sales, exchanges, or leases of any property between the trust and the cemetery company, any owner of an interest in the cemetery company, any officers or directors or managers of the cemetery company, or immediate family of any such person; (C) Any loans by the trust or fixed income obligations due the trust that are classified as uncollectible or in default as of the close of the fiscal year of the trust; (D) Whether the trust at any time held twenty percent (20%) or more of its assets in any single security, debt, mortgage, parcel of real estate, or partnership/joint venture interests; (E) Whether the trust at any time engaged in any transaction or series of related transactions involving twenty percent (20%) or more of the current value of the trust; and (F) Whether there were any purchases of nonpublicly traded securities by the trust, the value of which was set without an appraisal by an independent third party. (2) The commissioner may require the trustee to make additional financial reports that the commissioner deems necessary.
(1) Within forty-five (45) days after the end of the calendar or fiscal year of the cemetery company, the trustee of the improvement care fund of the cemetery company shall file with the commissioner a financial report with respect to the trust fund on forms that are obtained from the commissioner. The report shall include, but not be limited to, specific disclosure of the following: (A) The current value of the assets, on both a book value and market value basis, and liabilities of the trust as of the beginning and end of the fiscal year of the trust; (B) All sales, exchanges, or leases of any property between the trust and the cemetery company, any owner of an interest in the cemetery company, any officers or directors or managers of the cemetery company, or immediate family of any such person; (C) Any loans by the trust or fixed income obligations due the trust that are classified as uncollectible or in default as of the close of the fiscal year of the trust; (D) Whether the trust at any time held twenty percent (20%) or more of its assets in any single security, debt, mortgage, parcel of real estate, or partnership/joint venture interests; (E) Whether the trust at any time engaged in any transaction or series of related transactions involving twenty percent (20%) or more of the current value of the trust; and (F) Whether there were any purchases of nonpublicly traded securities by the trust, the value of which was set without an appraisal by an independent third party.
(A) The current value of the assets, on both a book value and market value basis, and liabilities of the trust as of the beginning and end of the fiscal year of the trust;
(B) All sales, exchanges, or leases of any property between the trust and the cemetery company, any owner of an interest in the cemetery company, any officers or directors or managers of the cemetery company, or immediate family of any such person;
(C) Any loans by the trust or fixed income obligations due the trust that are classified as uncollectible or in default as of the close of the fiscal year of the trust;
(D) Whether the trust at any time held twenty percent (20%) or more of its assets in any single security, debt, mortgage, parcel of real estate, or partnership/joint venture interests;
(E) Whether the trust at any time engaged in any transaction or series of related transactions involving twenty percent (20%) or more of the current value of the trust; and
(F) Whether there were any purchases of nonpublicly traded securities by the trust, the value of which was set without an appraisal by an independent third party.
(2) The commissioner may require the trustee to make additional financial reports that the commissioner deems necessary.
(c) For late filing of a report required under this section, a cemetery company shall pay a late penalty not to exceed one hundred dollars ($100) for each month or fraction thereof that the report is late. The commissioner is authorized to establish the amount of the late penalty by promulgating rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(d) The commissioner may promulgate rules and regulations that are reasonably necessary to require cemeteries to submit audited financial statements or other financial reports prepared by independent certified public accountants.
Acts 1927, ch. 75, § 3; mod. Code 1932, § 3924; Acts 1961, ch. 44, § 2; 1968, ch. 557, § 2; T.C.A. (orig. ed.), § 46-106; Acts 1973, ch. 272, § 7; 1976, ch. 773, § 5; T.C.A., §§ 46-206, 46-2-106; Acts 1980, ch. 780, § 4; 1995, ch. 203, § 2; 1995, ch. 485, §§ 1, 6; 1997, ch. 374, § 1; T.C.A., § 46-2-202 ; Acts 2006, ch. 1012, § 3; 2009, ch. 356, § 5.
Tenn. Code Ann. § 46-1-218 — TN Code / Title 46 / Chapter 1 / Section 46-1-218
Net earnings of improvement care trust fund sufficient for permanent maintenance and upkeep
Status: in_force

(a) When the improvement care trust fund has become sufficiently large that the net earnings, as defined in § 46-1-204 , will ensure the permanent maintenance and upkeep of the cemetery, and the officers and board of directors are of the opinion that it is no longer necessary to continue to set aside twenty percent (20%) to the improvement care trust fund, or any part thereof, for the purpose of maintaining, keeping up and beautifying the cemetery, the board of directors may, in a regular or special meeting, pass a resolution declaring that belief. (b) The cemetery company shall then be authorized to file a petition in the name of the company in the chancery court of Davidson County stating the passage of the resolution and other pertinent facts as it may desire, and asking that the cemetery company no longer be required to continue to make contributions to the improvement care trust fund or that the contributions be reduced. The petition shall be filed against the commissioner of commerce and insurance. The petition shall be accompanied by an audited balance sheet prepared by a Tennessee certified public accountant showing the financial position of the cemetery company from the date of the petition seeking relief. All financial information submitted shall be kept strictly confidential and shall be subject to a protective order limiting access to the information to the court and the attorney representing the commissioner. (c) At the final hearing on the petition, the petitioner shall have the burden of proving its entitlement to relief by a preponderance of the evidence. In reaching its decision, the court shall consider at least the following factors, and shall state upon the record its findings: (1) The financial position of the cemetery company on the date the petition seeking relief was filed; (2) Whether the net earnings from the improvement care trust fund will be sufficient to provide future maintenance and upkeep of the cemetery for perpetuity; and (3) The number of lots or grave spaces intended to be used for interment purposes versus the number of lots or grave spaces that have already been sold and the likely impact of the future sale of lots or grave spaces on the cost of maintenance and upkeep. (d) Upon a final hearing of the issues, the chancery court is authorized to pronounce a decree that, in the opinion of the court from the proof and facts, either refusing any relief whatsoever or granting all of the relief prayed for, or granting any partial relief, that may appear proper to the court. The case shall be kept on the docket of the court, subject to any further orders and decrees that may from time to time appear proper upon any additional showing that may be made under any supplemental petition filed either by the original complainants, on behalf of the state, by any lot owner, or descendant or next of kin of a lot owner who may be entitled to any relief. (e) In no event shall any relief granted under this part affect the cemetery owner's other obligations under this chapter. (f) The cost and expenses of the proceeding in subsections (a)-(d) shall be taxed against and paid by the complainant, including reasonable and necessary attorney's fees to the defense attorney, to be determined by the court. The cost and expense shall be paid out of the complainant's general operating account and shall not be paid out of the principal of the improvement care trust fund. (g) In the event the commissioner determines that any of the following events have occurred, any relief granted by the court to the cemetery company shall immediately terminate and required contributions as set forth in § 46-1-204 shall be resumed without further orders of the court: (1) A finding by the commissioner that the balance of the improvement care trust fund has decreased by at least fifteen percent (15%) below the fair market value of the trust fund balance as of the date that the petition was filed; (2) Any sale or transfer that requires notice to the commissioner pursuant to § 46-1-107 ; or (3) Purchase of additional land by the cemetery company. The cemetery company shall provide notice of the purchase to the commissioner by certified mail within thirty (30) days of the purchase. (h) Notice of any event in subsection (g) shall be provided by the commissioner to the cemetery company by certified mail and the cemetery company shall resume its obligation to make contributions to the improvement care trust fund beginning with transactions occurring thirty (30) days following receipt of notice, unless it challenges the accuracy of the determination. Any challenge shall be resolved by the chancery court of Davidson County in accordance with subsection (d), with court costs taxed to the petitioner. Acts 2007, ch. 515, § 1.
(a) When the improvement care trust fund has become sufficiently large that the net earnings, as defined in § 46-1-204 , will ensure the permanent maintenance and upkeep of the cemetery, and the officers and board of directors are of the opinion that it is no longer necessary to continue to set aside twenty percent (20%) to the improvement care trust fund, or any part thereof, for the purpose of maintaining, keeping up and beautifying the cemetery, the board of directors may, in a regular or special meeting, pass a resolution declaring that belief.
(b) The cemetery company shall then be authorized to file a petition in the name of the company in the chancery court of Davidson County stating the passage of the resolution and other pertinent facts as it may desire, and asking that the cemetery company no longer be required to continue to make contributions to the improvement care trust fund or that the contributions be reduced. The petition shall be filed against the commissioner of commerce and insurance. The petition shall be accompanied by an audited balance sheet prepared by a Tennessee certified public accountant showing the financial position of the cemetery company from the date of the petition seeking relief. All financial information submitted shall be kept strictly confidential and shall be subject to a protective order limiting access to the information to the court and the attorney representing the commissioner.
(c) At the final hearing on the petition, the petitioner shall have the burden of proving its entitlement to relief by a preponderance of the evidence. In reaching its decision, the court shall consider at least the following factors, and shall state upon the record its findings: (1) The financial position of the cemetery company on the date the petition seeking relief was filed; (2) Whether the net earnings from the improvement care trust fund will be sufficient to provide future maintenance and upkeep of the cemetery for perpetuity; and (3) The number of lots or grave spaces intended to be used for interment purposes versus the number of lots or grave spaces that have already been sold and the likely impact of the future sale of lots or grave spaces on the cost of maintenance and upkeep.
(1) The financial position of the cemetery company on the date the petition seeking relief was filed;
(2) Whether the net earnings from the improvement care trust fund will be sufficient to provide future maintenance and upkeep of the cemetery for perpetuity; and
(3) The number of lots or grave spaces intended to be used for interment purposes versus the number of lots or grave spaces that have already been sold and the likely impact of the future sale of lots or grave spaces on the cost of maintenance and upkeep.
(d) Upon a final hearing of the issues, the chancery court is authorized to pronounce a decree that, in the opinion of the court from the proof and facts, either refusing any relief whatsoever or granting all of the relief prayed for, or granting any partial relief, that may appear proper to the court. The case shall be kept on the docket of the court, subject to any further orders and decrees that may from time to time appear proper upon any additional showing that may be made under any supplemental petition filed either by the original complainants, on behalf of the state, by any lot owner, or descendant or next of kin of a lot owner who may be entitled to any relief.
(e) In no event shall any relief granted under this part affect the cemetery owner's other obligations under this chapter.
(f) The cost and expenses of the proceeding in subsections (a)-(d) shall be taxed against and paid by the complainant, including reasonable and necessary attorney's fees to the defense attorney, to be determined by the court. The cost and expense shall be paid out of the complainant's general operating account and shall not be paid out of the principal of the improvement care trust fund.
(g) In the event the commissioner determines that any of the following events have occurred, any relief granted by the court to the cemetery company shall immediately terminate and required contributions as set forth in § 46-1-204 shall be resumed without further orders of the court: (1) A finding by the commissioner that the balance of the improvement care trust fund has decreased by at least fifteen percent (15%) below the fair market value of the trust fund balance as of the date that the petition was filed; (2) Any sale or transfer that requires notice to the commissioner pursuant to § 46-1-107 ; or (3) Purchase of additional land by the cemetery company. The cemetery company shall provide notice of the purchase to the commissioner by certified mail within thirty (30) days of the purchase.
(1) A finding by the commissioner that the balance of the improvement care trust fund has decreased by at least fifteen percent (15%) below the fair market value of the trust fund balance as of the date that the petition was filed;
(2) Any sale or transfer that requires notice to the commissioner pursuant to § 46-1-107 ; or
(3) Purchase of additional land by the cemetery company. The cemetery company shall provide notice of the purchase to the commissioner by certified mail within thirty (30) days of the purchase.
(h) Notice of any event in subsection (g) shall be provided by the commissioner to the cemetery company by certified mail and the cemetery company shall resume its obligation to make contributions to the improvement care trust fund beginning with transactions occurring thirty (30) days following receipt of notice, unless it challenges the accuracy of the determination. Any challenge shall be resolved by the chancery court of Davidson County in accordance with subsection (d), with court costs taxed to the petitioner.
Acts 2007, ch. 515, § 1.
Tenn. Code Ann. § 46-6-101 — TN Code / Title 46 / Chapter 6 / Section 46-6-101
Establishment
Status: in_force

(a) The department of veterans services shall provide for Tennessee veterans' cemeteries. (b) It is the legislative intent that the department, in consultation with the department of finance and administration and other appropriate state departments and agencies, shall, within existing state resources, identify any available state-owned real property and other available financial resources to establish a veterans' cemetery in each of the three (3) grand divisions. (c) The department of veterans services is authorized to establish additional veterans' cemeteries, as needed, by using state resources in accordance with the planning criteria of the United States department of veterans' affairs (USDVA) and the national cemetery administration (NCA) in order to receive federal grant funding to assist with establishment of additional veterans' cemeteries. Amended by 2013 Tenn. Acts, ch. 73,Secs.s1, s2 eff. 4/2/2013. Acts 1987, ch. 309, § 1.
(a) The department of veterans services shall provide for Tennessee veterans' cemeteries.
(b) It is the legislative intent that the department, in consultation with the department of finance and administration and other appropriate state departments and agencies, shall, within existing state resources, identify any available state-owned real property and other available financial resources to establish a veterans' cemetery in each of the three (3) grand divisions.
(c) The department of veterans services is authorized to establish additional veterans' cemeteries, as needed, by using state resources in accordance with the planning criteria of the United States department of veterans' affairs (USDVA) and the national cemetery administration (NCA) in order to receive federal grant funding to assist with establishment of additional veterans' cemeteries.
Amended by 2013 Tenn. Acts, ch. 73,Secs.s1, s2 eff. 4/2/2013.
Acts 1987, ch. 309, § 1.
Tenn. Code Ann. § 46-1-107 — TN Code / Title 46 / Chapter 1 / Section 46-1-107
Sale or transfer
Status: in_force

(a) No later than thirty (30) days prior to the sale or transfer of any cemetery required to be registered by this chapter, or the sale or transfer of a controlling interest in the cemetery company that owns the cemetery, the transferor shall notify the commissioner in writing, and: (1) Submit any documentation or records the commissioner may require in order to determine the amount of any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund; and (2) Disclose any agreements between the transferor and transferee regarding: (A) Any existing cemetery trust accounts established pursuant to this chapter; and (B) Assumption or disclaimer of liabilities of the transferor. (b) Except as provided in subsection (c), the transferee shall not be entitled to a certificate of registration for the cemetery until: (1) Subsection (a) has been complied with; and (2) Any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund has been liquidated. (c) Notwithstanding indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund, the commissioner may issue a certificate of registration to the transferee, if the commissioner determines that: (1) The sale or transfer is in the best interests of the maintenance and continued operation of the cemetery; (2) The sale or transfer is not designed to circumvent this chapter; and (3) The transferee has satisfactorily agreed to liquidate the indebtedness to the maximum feasible extent. (d) The state may, for the benefit of the pre-need merchandise and services trust account or the improvement care trust fund: (1) Recover from the transferor all sums that the transferor has not properly accounted for and paid into the fund; and (2) Recover from the transferee all sums that the transferee has not properly accounted for and paid into the fund. (e) The issuance of a certificate of registration under this section shall not operate to release any person, firm or corporation from any obligations to the pre-need merchandise and services trust account or the improvement care trust fund. Acts 1973, ch. 272, § 6; 1977, ch. 147, § 1; T.C.A., § 46-107; Acts 1986, ch. 693, §§ 2, 9; 2003, ch. 81, §§ 1 - 5; 2006, ch. 1012, § 2.
(a) No later than thirty (30) days prior to the sale or transfer of any cemetery required to be registered by this chapter, or the sale or transfer of a controlling interest in the cemetery company that owns the cemetery, the transferor shall notify the commissioner in writing, and: (1) Submit any documentation or records the commissioner may require in order to determine the amount of any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund; and (2) Disclose any agreements between the transferor and transferee regarding: (A) Any existing cemetery trust accounts established pursuant to this chapter; and (B) Assumption or disclaimer of liabilities of the transferor.
(1) Submit any documentation or records the commissioner may require in order to determine the amount of any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund; and
(2) Disclose any agreements between the transferor and transferee regarding: (A) Any existing cemetery trust accounts established pursuant to this chapter; and (B) Assumption or disclaimer of liabilities of the transferor.
(A) Any existing cemetery trust accounts established pursuant to this chapter; and
(B) Assumption or disclaimer of liabilities of the transferor.
(b) Except as provided in subsection (c), the transferee shall not be entitled to a certificate of registration for the cemetery until: (1) Subsection (a) has been complied with; and (2) Any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund has been liquidated.
(1) Subsection (a) has been complied with; and
(2) Any indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund has been liquidated.
(c) Notwithstanding indebtedness of the transferor to the pre-need merchandise and services trust account or the improvement care trust fund, the commissioner may issue a certificate of registration to the transferee, if the commissioner determines that: (1) The sale or transfer is in the best interests of the maintenance and continued operation of the cemetery; (2) The sale or transfer is not designed to circumvent this chapter; and (3) The transferee has satisfactorily agreed to liquidate the indebtedness to the maximum feasible extent.
(1) The sale or transfer is in the best interests of the maintenance and continued operation of the cemetery;
(2) The sale or transfer is not designed to circumvent this chapter; and
(3) The transferee has satisfactorily agreed to liquidate the indebtedness to the maximum feasible extent.
(d) The state may, for the benefit of the pre-need merchandise and services trust account or the improvement care trust fund: (1) Recover from the transferor all sums that the transferor has not properly accounted for and paid into the fund; and (2) Recover from the transferee all sums that the transferee has not properly accounted for and paid into the fund.
(1) Recover from the transferor all sums that the transferor has not properly accounted for and paid into the fund; and
(2) Recover from the transferee all sums that the transferee has not properly accounted for and paid into the fund.
(e) The issuance of a certificate of registration under this section shall not operate to release any person, firm or corporation from any obligations to the pre-need merchandise and services trust account or the improvement care trust fund.
Acts 1973, ch. 272, § 6; 1977, ch. 147, § 1; T.C.A., § 46-107; Acts 1986, ch. 693, §§ 2, 9; 2003, ch. 81, §§ 1 - 5; 2006, ch. 1012, § 2.
Tenn. Code Ann. § 46-1-213 — TN Code / Title 46 / Chapter 1 / Section 46-1-213
Construction of crypts
Status: in_force

A cemetery company shall commence construction or development of any undeveloped ground or building in which lawn or mausoleum crypts are to be constructed and in which sales, contracts for sale, or agreements for sales, are being made, within thirty-six (36) months after the date of the first sale. The construction or development of the undeveloped ground or building shall be completed within five (5) years after the date of the first sale. Failure to complete construction, as represented at the time of the first sale, shall entitle any purchaser, on demand, to recover all sums paid on the purchase price, plus interest at the rate of six percent (6%) per annum. Acts 1979, ch. 307, § 4(D); T.C.A., § 46-2-205 ; T.C.A., § 46-2-405 ; Acts 2006, ch. 1012, § 3.
A cemetery company shall commence construction or development of any undeveloped ground or building in which lawn or mausoleum crypts are to be constructed and in which sales, contracts for sale, or agreements for sales, are being made, within thirty-six (36) months after the date of the first sale. The construction or development of the undeveloped ground or building shall be completed within five (5) years after the date of the first sale. Failure to complete construction, as represented at the time of the first sale, shall entitle any purchaser, on demand, to recover all sums paid on the purchase price, plus interest at the rate of six percent (6%) per annum.
Acts 1979, ch. 307, § 4(D); T.C.A., § 46-2-205 ; T.C.A., § 46-2-405 ; Acts 2006, ch. 1012, § 3.
Tenn. Code Ann. § 46-1-303 — TN Code / Title 46 / Chapter 1 / Section 46-1-303
Duties and authority of commissioner
Status: in_force

(a) It is the duty of the commissioner or the commissioner's duly authorized representatives to examine the annual reports made by the cemetery companies and the annual reports made by the trustees, which shall be filed and carefully preserved as a part of the permanent records of the office. The commissioner or the commissioner's duly authorized representatives shall audit and examine the books, bank records, cash receipts and any other documents employed in preparing the annual reports of each cemetery company and trustee once every two (2) years. The commissioner or the commissioner's duly authorized representatives are authorized to audit and examine the books, bank records, cash receipts and any other documents employed in preparing the annual reports of each cemetery company and trustee more frequently than once every two (2) years whenever it appears to the commissioner that the cemetery company or trustee has failed to comply with any provisions contained in this chapter. Whenever it appears to the commissioner that any cemetery company has failed to comply with any provision contained in this chapter, the commissioner is authorized to examine the cemetery company, including all books, bank records, cash receipts and any other documents employed in the transaction of the cemetery company's business for the purpose of discovering violations of this chapter. (b) The necessary expense of any examination made pursuant to this section shall be paid by the cemetery company at a rate set by the commissioner. (c) The commissioner is further authorized, upon the finding of any irregularity or violation of this chapter to allow, at the commissioner's discretion, a reasonable time for the irregularity or violation to be corrected or to enforce compliance with this chapter through the chancery courts or other courts of the state having jurisdiction. (d) In the event of an audit of a cemetery company authorized by subsection (a), § 46-1-207 , § 46-1-214(f) , or § 46-1-306 , the commissioner or the commissioner's duly authorized representatives shall provide the cemetery company with the following: (1) A nonbinding, written exit report containing the initial findings of the audit no more than fourteen (14) days after the conclusion of the field audit on the premises of the cemetery; and (2) A final written report or a results of examination letter detailing the official findings of the audit no more than sixty (60) days after the conclusion of the audit. (e) Nothing in this section shall invalidate or in any way lessen any finding of an audit that is not issued within the timeframes described in subsection (d). Amended by 2015 Tenn. Acts, ch. 288,s 8, eff. 1/1/2016. Acts 1927, ch. 75, § 4; Code 1932, § 3296; Acts 1961, ch. 44, § 4; 1968, ch. 557, § 2; 1968, ch. 627, § 1; T.C.A. (orig. ed.), § 46-109; Acts 1971, ch. 432, § 1; 1973, ch. 272, §§ 8, 9; T.C.A., §§ 46-209, 46-2-109; Acts 1983, ch. 141, § 1; 1992, ch. 922, § 6; 1995, ch. 203, § 1; 1995, ch. 485, § 5; 1997, ch. 374, § 2; T.CA. § 46-2-205 ; Acts 2006, ch. 1012, § 4.
(a) It is the duty of the commissioner or the commissioner's duly authorized representatives to examine the annual reports made by the cemetery companies and the annual reports made by the trustees, which shall be filed and carefully preserved as a part of the permanent records of the office. The commissioner or the commissioner's duly authorized representatives shall audit and examine the books, bank records, cash receipts and any other documents employed in preparing the annual reports of each cemetery company and trustee once every two (2) years. The commissioner or the commissioner's duly authorized representatives are authorized to audit and examine the books, bank records, cash receipts and any other documents employed in preparing the annual reports of each cemetery company and trustee more frequently than once every two (2) years whenever it appears to the commissioner that the cemetery company or trustee has failed to comply with any provisions contained in this chapter. Whenever it appears to the commissioner that any cemetery company has failed to comply with any provision contained in this chapter, the commissioner is authorized to examine the cemetery company, including all books, bank records, cash receipts and any other documents employed in the transaction of the cemetery company's business for the purpose of discovering violations of this chapter.
(b) The necessary expense of any examination made pursuant to this section shall be paid by the cemetery company at a rate set by the commissioner.
(c) The commissioner is further authorized, upon the finding of any irregularity or violation of this chapter to allow, at the commissioner's discretion, a reasonable time for the irregularity or violation to be corrected or to enforce compliance with this chapter through the chancery courts or other courts of the state having jurisdiction.
(d) In the event of an audit of a cemetery company authorized by subsection (a), § 46-1-207 , § 46-1-214(f) , or § 46-1-306 , the commissioner or the commissioner's duly authorized representatives shall provide the cemetery company with the following: (1) A nonbinding, written exit report containing the initial findings of the audit no more than fourteen (14) days after the conclusion of the field audit on the premises of the cemetery; and (2) A final written report or a results of examination letter detailing the official findings of the audit no more than sixty (60) days after the conclusion of the audit.
(1) A nonbinding, written exit report containing the initial findings of the audit no more than fourteen (14) days after the conclusion of the field audit on the premises of the cemetery; and
(2) A final written report or a results of examination letter detailing the official findings of the audit no more than sixty (60) days after the conclusion of the audit.
(e) Nothing in this section shall invalidate or in any way lessen any finding of an audit that is not issued within the timeframes described in subsection (d).
Amended by 2015 Tenn. Acts, ch. 288,s 8, eff. 1/1/2016.
Acts 1927, ch. 75, § 4; Code 1932, § 3296; Acts 1961, ch. 44, § 4; 1968, ch. 557, § 2; 1968, ch. 627, § 1; T.C.A. (orig. ed.), § 46-109; Acts 1971, ch. 432, § 1; 1973, ch. 272, §§ 8, 9; T.C.A., §§ 46-209, 46-2-109; Acts 1983, ch. 141, § 1; 1992, ch. 922, § 6; 1995, ch. 203, § 1; 1995, ch. 485, § 5; 1997, ch. 374, § 2; T.CA. § 46-2-205 ; Acts 2006, ch. 1012, § 4.
Tenn. Code Ann. § 46-1-202 — TN Code / Title 46 / Chapter 1 / Section 46-1-202
Fidelity bond coverage - Exemptions
Status: in_force

(a) Every cemetery company shall carry fidelity bond coverage of at least one hundred thousand dollars ($100,000) or a higher amount that the commissioner deems sufficient for officers and employees who handle money and securities. (b) The annual financial report required by § 46-1-214 to be filed with the commissioner shall indicate the amount of fidelity bond coverage, the classes of employees included, name of carrier and policy number, and the expiration date of coverage. (c) Cemeteries with combined funds, defined as cash, investments and assets, of less than forty thousand dollars ($40,000) may apply to the commissioner for an exemption from meeting the requirements of subsections (a) and (b). The commissioner may grant an exemption upon receiving satisfactory documentation demonstrating that all financial transactions, including withdrawals from the pre-need merchandise and services trust fund or operating funds, require the signatures of two (2) or more designated cemetery officials. (d) If any cemetery that is currently exempt should, at any time in the future, obtain combined funds in excess of forty thousand dollars ($40,000), the cemetery shall, within sixty (60) days of notification of the commissioner, obtain the fidelity bond required by subsections (a) and (b). Acts 2006, ch. 1012, § 3.
(a) Every cemetery company shall carry fidelity bond coverage of at least one hundred thousand dollars ($100,000) or a higher amount that the commissioner deems sufficient for officers and employees who handle money and securities.
(b) The annual financial report required by § 46-1-214 to be filed with the commissioner shall indicate the amount of fidelity bond coverage, the classes of employees included, name of carrier and policy number, and the expiration date of coverage.
(c) Cemeteries with combined funds, defined as cash, investments and assets, of less than forty thousand dollars ($40,000) may apply to the commissioner for an exemption from meeting the requirements of subsections (a) and (b). The commissioner may grant an exemption upon receiving satisfactory documentation demonstrating that all financial transactions, including withdrawals from the pre-need merchandise and services trust fund or operating funds, require the signatures of two (2) or more designated cemetery officials.
(d) If any cemetery that is currently exempt should, at any time in the future, obtain combined funds in excess of forty thousand dollars ($40,000), the cemetery shall, within sixty (60) days of notification of the commissioner, obtain the fidelity bond required by subsections (a) and (b).
Acts 2006, ch. 1012, § 3.
Tenn. Code Ann. § 46-2-104 — TN Code / Title 46 / Chapter 2 / Section 46-2-104
Suit for escheat - Notice - Parties
Status: in_force

In all cases where municipalities, corporations, associations or other owners of cemeteries have a good right to believe any vacant cemetery lots or grave spaces have escheated to it, the municipalities, corporations, associations or other owners are empowered to bring suit for the escheated property and shall make defendants to its bill filed in the cause the personal representative of the deceased, if known, and all other persons who are in possession or in any manner or way claim any interest in or to the vacant cemetery lots or grave spaces. If the parties are residents of the state, they shall be served with process; if the parties are nonresidents of the state, they shall be made parties by publication, according to law. In addition to the defendants named pursuant to this section under the bill, there shall be publication made for thirty (30) days in a newspaper in the county in which the bill is filed, or if no newspaper is published in the county, then in the nearest newspaper so published, calling upon unknown heirs of the deceased person claiming under the deceased person, in any manner or way, whatever, to enter an appearance as defendants to the bill or suit, and all persons having an interest in the bill or suit may come into court and defend the bill or suit according to the rule of the court. Acts 1955, ch. 279, § 2; T.C.A., § 46-310; T.C.A., § 46-3-110 ; T.C.A., § 46-3-111 ; Acts 2006, ch. 1012, § 5.
In all cases where municipalities, corporations, associations or other owners of cemeteries have a good right to believe any vacant cemetery lots or grave spaces have escheated to it, the municipalities, corporations, associations or other owners are empowered to bring suit for the escheated property and shall make defendants to its bill filed in the cause the personal representative of the deceased, if known, and all other persons who are in possession or in any manner or way claim any interest in or to the vacant cemetery lots or grave spaces. If the parties are residents of the state, they shall be served with process; if the parties are nonresidents of the state, they shall be made parties by publication, according to law. In addition to the defendants named pursuant to this section under the bill, there shall be publication made for thirty (30) days in a newspaper in the county in which the bill is filed, or if no newspaper is published in the county, then in the nearest newspaper so published, calling upon unknown heirs of the deceased person claiming under the deceased person, in any manner or way, whatever, to enter an appearance as defendants to the bill or suit, and all persons having an interest in the bill or suit may come into court and defend the bill or suit according to the rule of the court.
Acts 1955, ch. 279, § 2; T.C.A., § 46-310; T.C.A., § 46-3-110 ; T.C.A., § 46-3-111 ; Acts 2006, ch. 1012, § 5.
Tenn. Code Ann. § 46-1-109 — TN Code / Title 46 / Chapter 1 / Section 46-1-109
Receiving and holding of grants and bequests
Status: in_force

(a) A cemetery company may hold any grant or bequest in money or other property, and shall faithfully apply the grants or bequests for the improvements of the cemetery, or in the erection or preservation of any tomb or monument, according to the terms of the grant or bequest, except those funds required to be held in trust, or paid into the improvement care trust fund as provided by § 46-1-204 . (b) No cemetery company shall accept any special grant or bequest, unless it is in writing and made a part of the permanent records of the cemetery. Acts 1875, ch. 142, § 9; Shan., § 2184; Code 1932, § 3922; Acts 1968, ch. 557, §§ 2, 4; T.C.A. (orig. ed.), § 46-103; 1976, ch. 773, § 3; T.C.A., § 46-203; T.C.A. § 46-2-103 ; Acts 2006, ch. 1012, § 2.
(a) A cemetery company may hold any grant or bequest in money or other property, and shall faithfully apply the grants or bequests for the improvements of the cemetery, or in the erection or preservation of any tomb or monument, according to the terms of the grant or bequest, except those funds required to be held in trust, or paid into the improvement care trust fund as provided by § 46-1-204 .
(b) No cemetery company shall accept any special grant or bequest, unless it is in writing and made a part of the permanent records of the cemetery.
Acts 1875, ch. 142, § 9; Shan., § 2184; Code 1932, § 3922; Acts 1968, ch. 557, §§ 2, 4; T.C.A. (orig. ed.), § 46-103; 1976, ch. 773, § 3; T.C.A., § 46-203; T.C.A. § 46-2-103 ; Acts 2006, ch. 1012, § 2.