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Terms Used In Tennessee Code 46-1-214

  • Cemetery: means any land or structure in this state dedicated to and used, or intended to be used, for interment of human remains. See Tennessee Code 46-1-102
  • Cemetery company: means an individual, partnership, corporation, or association, now or hereafter organized, owning or controlling cemetery lands or property and conducting the business of a cemetery. See Tennessee Code 46-1-102
  • Cemetery merchandise: means personal property sold by a cemetery company, such as foundations, markers, memorials, memorial bases, monuments, urns, vases, and lawn and mausoleum crypts. See Tennessee Code 46-1-102
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 46-1-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Month: means a calendar month. See Tennessee Code 1-3-105
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • Pre-need: means the time prior to death when the use of cemetery merchandise or services is not actually required. See Tennessee Code 46-1-102
  • Services: means acts performed by a cemetery company on its premises in the final interment of human remains or the installation of cemetery merchandise used in connection with final interment. See Tennessee Code 46-1-102
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
  • Trustee: A person or institution holding and administering property in trust.
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) Not later than seventy-five (75) days after the end of each of its fiscal years, each cemetery company that engages in sales requiring the establishment of a trust account under this part shall file with the commissioner, on the prescribed form, a report containing:

(A) Beginning balances of deposited funds and accumulated earnings in the trust account;
(B) The deposits to the trust account during the year;
(C) The amount of earnings during the year;
(D) The amounts of the withdrawals of deposits and earnings remaining in trust at the end of the year; and
(E) The aggregate procurement costs, including transportation and labor, of all cemetery merchandise and services sold pre-need and yet to be delivered after the report year end; provided, that deferred or installment payments may be prorated to the extent allowed under § 46-1-207.
(2) The commissioner may require a cemetery company to submit reasonably detailed information in support of any report required under this section.
(3) An additional report shall not be required based on the establishment of trusts pursuant to this title and the Tennessee Prepaid Funeral Benefits Act, compiled in title 62, chapter 5, part 4. In such instance, only one (1) report shall be required.
(b) Not later than seventy-five (75) days after the end of the cemetery company’s fiscal year, each trustee appointed under this part shall file with the commissioner, on the prescribed form, a report on each trust account established pursuant to this part. However, an additional report shall not be required based on the establishment of trusts pursuant to this title and the Tennessee Prepaid Funeral Benefits Act. In such instance, only one (1) report shall be required. The report shall contain the following information:

(1) The combined beginning balance of deposits and earnings in trust;
(2) The aggregate amount of deposits received during the report year;
(3) The amount of the earnings added to the trust account during the year;
(4) The aggregate amount of deposits and earnings disbursed during the report year; and
(5) The aggregate amount of the deposits and earnings remaining in trust at the end of the report year.
(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 of a month 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. The commissioner may, in extenuating circumstances, grant an extension of time for filing a report and waive the penalty, on receipt of a written request before the report is overdue.
(d) If, on or before the date that a report would otherwise be due, a cemetery company notifies the commissioner that it has delivered all cemetery merchandise and services due for which a trust account was required, the company need not file a report.
(e) The commissioner shall promulgate and may, from time to time, revise rules and regulations for carrying out the intentions of this part, in accordance with the Uniform Administrative Procedures Act.
(f) The commissioner shall require an audit at least once every two (2) years, or more frequently if the commissioner deems it necessary, to ensure that each person, firm, or corporation that offers or enters into a contract for the sale of cemetery merchandise or services under this chapter will be able to perform its contract with the purchaser.
(g) The necessary expenses for any examination pursuant to this section shall be paid by the cemetery company at a rate set by the commissioner.
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