MI SB1378

Amends the prepaid funeral and cemetery sales act to update escrow investment requirements for guaranteed price contracts to reference the estates and protected individuals code (1998 PA 386, MCL 700.7803) instead of prior law.

Establishes phased-in escrow requirements for cemetery merchandise funds, increasing from 60% (before January 1, 2006) to 80% (after December 31, 2008) of prepaid contract funds that must be held in escrow.

Allows contract sellers or providers to charge a commission of up to 10% of contract price that is not subject to escrow requirements, with commission rates limited to the specified percentage per installment if paid in installments.

Restricts escrow agent investments to deposits in interest-bearing accounts for nonguaranteed price contracts and limits guaranteed price contract investments to those complying with the Michigan trust code, excluding investments with affiliated entities or loans to connected persons.

Requires escrow agents to send deposit notices to contract buyers and provide annual statements showing account balance, fees charged, cancellation refund amounts, and escrow agent contact information.