Article 3.--FUNERAL AND CEMETERY MERCHANDISE AGREEMENTS, CONTRACTS AND PLANS
16-310.Same; audit of accounts or trusts by secretary of state;
redeposit of improperly paid moneys; actions by attorney general; funds
held under agreements not subject to legal process; notice of intent to
sell and engage in agreements; obstructing or refusing to submit to
examination; audit fee.
(a) The secretary of state, or the secretary's
representative, shall audit
in accordance with this subsection all
accounts or trusts of each prearranged funeral agreement, plan or contract
entered into pursuant to K.S.A. 16-301 et seq., and amendments thereto.
Audits under this section shall be conducted on a random basis and not
more than 25 audits shall be conducted during any one calendar year, except
that the secretary of state may conduct an audit under this section at any time
upon receipt of a complaint.
For such purposes, the secretary of state or the secretary's
representative
is authorized to administer oaths and to examine under oath the directors,
officers, employees and agents of any seller of personal property or
funeral or burial merchandise. Such examination may be reduced to writing
by the person taking it and the examiner may make findings as to the
condition of each account or trust examined. Accounting records and
information required by this section shall be maintained in a format
approved by the secretary of state. For the purposes of such
audits, the
secretary of state may require any person or officer of a
partnership,
association, firm or corporation who sells such merchandise to furnish and
submit the books, records, papers and instruments of such partnership,
association, firm or corporation for examination.
(b) In the event the secretary of state
determines that moneys have been
improperly obtained from the account or trust by the seller of personal
property or funeral or burial merchandise during the period covered by the
audit, then the secretary of state may order the seller of personal
property or
funeral or burial merchandise to redeposit to the account or trust such
moneys improperly withdrawn within 30 days.
(c) The attorney general, at the request of the secretary of state, may
initiate an action to recover payments required to be redeposited to the
account or trust under subsection (b), or to recover other moneys received
or disbursed in violation of this act. In addition, the attorney general
may seek to enjoin any violation of this act.
(d) In the absence of fraud, all funds held in an account or trust
established pursuant to a prearranged funeral agreement, plan or contract
shall not be subject to attachment, garnishment or other legal process,
nor be seized, taken, appropriated or applied to pay any debt or liability
of the seller of personal property or funeral or burial merchandise, buyer
or beneficiary, by any legal or equitable process or by operation of law.
(e) No person, partnership, association, firm or corporation shall enter
into any prearranged funeral agreement, plan or contract until such person,
partnership, association, firm or corporation has filed with the secretary
of state a notification of its intention to sell
and engage in such
prearranged agreements, plans or contracts. Such notice shall include the
name of the person, partnership, association, firm or corporation, its
principal place of business and the name and address of the bank or savings
and loan association, trustee or trustees to be utilized under the
provisions of this section.
(f) Whenever any person, partnership, association, firm or corporation
refuses to submit the books, records, papers and instruments to the
examination and inspection of the secretary of state, or of any of the
secretary's representatives, or in any manner obstruct or
interfere with
the examination or audit authorized by this section, or refuse to be
examined under oath concerning any of the affairs of its prearranged
funeral agreements, plans or contracts, the secretary of state
may request
the attorney general to institute proceedings for the appointment of a
receiver for such person, partnership, association, firm or corporation.
(g) Any person, partnership, association, firm or corporation which
refuses or neglects to comply with the requirements of this act for a
period of 90 days after demand to do so is made upon it by the secretary of
state shall be subject to the penalties
provided in K.S.A. 16-305, and
amendments thereto. The attorney general, upon the request of the secretary
of state, shall then begin an action for the appointment of a
receiver for such
person, partnership, association, firm or corporation and to dissolve the same.
(h) Whenever an audit is made pursuant to this section, the person,
partnership, association, firm or corporation so audited shall pay to the secretary of state such
expenses relating to the audit as assessed by the secretary of state pursuant
to K.S.A. 75-442 and amendments thereto.
History: L. 1987, ch. 77, § 2; L. 1988, ch. 94, § 3; L. 1989,
ch. 48, § 74;
L. 1992, ch. 172, § 1; July 1.
Article 3.--FUNERAL AND CEMETERY MERCHANDISE AGREEMENTS, CONTRACTS AND PLANS
16-310.Same; audit of accounts or trusts by secretary of state;
redeposit of improperly paid moneys; actions by attorney general; funds
held under agreements not subject to legal process; notice of intent to
sell and engage in agreements; obstructing or refusing to submit to
examination; audit fee.
(a) The secretary of state, or the secretary's
representative, shall audit
in accordance with this subsection all
accounts or trusts of each prearranged funeral agreement, plan or contract
entered into pursuant to K.S.A. 16-301 et seq., and amendments thereto.
Audits under this section shall be conducted on a random basis and not
more than 25 audits shall be conducted during any one calendar year, except
that the secretary of state may conduct an audit under this section at any time
upon receipt of a complaint.
For such purposes, the secretary of state or the secretary's
representative
is authorized to administer oaths and to examine under oath the directors,
officers, employees and agents of any seller of personal property or
funeral or burial merchandise. Such examination may be reduced to writing
by the person taking it and the examiner may make findings as to the
condition of each account or trust examined. Accounting records and
information required by this section shall be maintained in a format
approved by the secretary of state. For the purposes of such
audits, the
secretary of state may require any person or officer of a
partnership,
association, firm or corporation who sells such merchandise to furnish and
submit the books, records, papers and instruments of such partnership,
association, firm or corporation for examination.
(b) In the event the secretary of state
determines that moneys have been
improperly obtained from the account or trust by the seller of personal
property or funeral or burial merchandise during the period covered by the
audit, then the secretary of state may order the seller of personal
property or
funeral or burial merchandise to redeposit to the account or trust such
moneys improperly withdrawn within 30 days.
(c) The attorney general, at the request of the secretary of state, may
initiate an action to recover payments required to be redeposited to the
account or trust under subsection (b), or to recover other moneys received
or disbursed in violation of this act. In addition, the attorney general
may seek to enjoin any violation of this act.
(d) In the absence of fraud, all funds held in an account or trust
established pursuant to a prearranged funeral agreement, plan or contract
shall not be subject to attachment, garnishment or other legal process,
nor be seized, taken, appropriated or applied to pay any debt or liability
of the seller of personal property or funeral or burial merchandise, buyer
or beneficiary, by any legal or equitable process or by operation of law.
(e) No person, partnership, association, firm or corporation shall enter
into any prearranged funeral agreement, plan or contract until such person,
partnership, association, firm or corporation has filed with the secretary
of state a notification of its intention to sell
and engage in such
prearranged agreements, plans or contracts. Such notice shall include the
name of the person, partnership, association, firm or corporation, its
principal place of business and the name and address of the bank or savings
and loan association, trustee or trustees to be utilized under the
provisions of this section.
(f) Whenever any person, partnership, association, firm or corporation
refuses to submit the books, records, papers and instruments to the
examination and inspection of the secretary of state, or of any of the
secretary's representatives, or in any manner obstruct or
interfere with
the examination or audit authorized by this section, or refuse to be
examined under oath concerning any of the affairs of its prearranged
funeral agreements, plans or contracts, the secretary of state
may request
the attorney general to institute proceedings for the appointment of a
receiver for such person, partnership, association, firm or corporation.
(g) Any person, partnership, association, firm or corporation which
refuses or neglects to comply with the requirements of this act for a
period of 90 days after demand to do so is made upon it by the secretary of
state shall be subject to the penalties
provided in K.S.A. 16-305, and
amendments thereto. The attorney general, upon the request of the secretary
of state, shall then begin an action for the appointment of a
receiver for such
person, partnership, association, firm or corporation and to dissolve the same.
(h) Whenever an audit is made pursuant to this section, the person,
partnership, association, firm or corporation so audited shall pay to the secretary of state such
expenses relating to the audit as assessed by the secretary of state pursuant
to K.S.A. 75-442 and amendments thereto.
History: L. 1987, ch. 77, § 2; L. 1988, ch. 94, § 3; L. 1989,
ch. 48, § 74;
L. 1992, ch. 172, § 1; July 1.
Article 3.--FUNERAL AND CEMETERY MERCHANDISE AGREEMENTS, CONTRACTS AND PLANS
16-310.Same; audit of accounts or trusts by secretary of state;
redeposit of improperly paid moneys; actions by attorney general; funds
held under agreements not subject to legal process; notice of intent to
sell and engage in agreements; obstructing or refusing to submit to
examination; audit fee.
(a) The secretary of state, or the secretary's
representative, shall audit
in accordance with this subsection all
accounts or trusts of each prearranged funeral agreement, plan or contract
entered into pursuant to K.S.A. 16-301 et seq., and amendments thereto.
Audits under this section shall be conducted on a random basis and not
more than 25 audits shall be conducted during any one calendar year, except
that the secretary of state may conduct an audit under this section at any time
upon receipt of a complaint.
For such purposes, the secretary of state or the secretary's
representative
is authorized to administer oaths and to examine under oath the directors,
officers, employees and agents of any seller of personal property or
funeral or burial merchandise. Such examination may be reduced to writing
by the person taking it and the examiner may make findings as to the
condition of each account or trust examined. Accounting records and
information required by this section shall be maintained in a format
approved by the secretary of state. For the purposes of such
audits, the
secretary of state may require any person or officer of a
partnership,
association, firm or corporation who sells such merchandise to furnish and
submit the books, records, papers and instruments of such partnership,
association, firm or corporation for examination.
(b) In the event the secretary of state
determines that moneys have been
improperly obtained from the account or trust by the seller of personal
property or funeral or burial merchandise during the period covered by the
audit, then the secretary of state may order the seller of personal
property or
funeral or burial merchandise to redeposit to the account or trust such
moneys improperly withdrawn within 30 days.
(c) The attorney general, at the request of the secretary of state, may
initiate an action to recover payments required to be redeposited to the
account or trust under subsection (b), or to recover other moneys received
or disbursed in violation of this act. In addition, the attorney general
may seek to enjoin any violation of this act.
(d) In the absence of fraud, all funds held in an account or trust
established pursuant to a prearranged funeral agreement, plan or contract
shall not be subject to attachment, garnishment or other legal process,
nor be seized, taken, appropriated or applied to pay any debt or liability
of the seller of personal property or funeral or burial merchandise, buyer
or beneficiary, by any legal or equitable process or by operation of law.
(e) No person, partnership, association, firm or corporation shall enter
into any prearranged funeral agreement, plan or contract until such person,
partnership, association, firm or corporation has filed with the secretary
of state a notification of its intention to sell
and engage in such
prearranged agreements, plans or contracts. Such notice shall include the
name of the person, partnership, association, firm or corporation, its
principal place of business and the name and address of the bank or savings
and loan association, trustee or trustees to be utilized under the
provisions of this section.
(f) Whenever any person, partnership, association, firm or corporation
refuses to submit the books, records, papers and instruments to the
examination and inspection of the secretary of state, or of any of the
secretary's representatives, or in any manner obstruct or
interfere with
the examination or audit authorized by this section, or refuse to be
examined under oath concerning any of the affairs of its prearranged
funeral agreements, plans or contracts, the secretary of state
may request
the attorney general to institute proceedings for the appointment of a
receiver for such person, partnership, association, firm or corporation.
(g) Any person, partnership, association, firm or corporation which
refuses or neglects to comply with the requirements of this act for a
period of 90 days after demand to do so is made upon it by the secretary of
state shall be subject to the penalties
provided in K.S.A. 16-305, and
amendments thereto. The attorney general, upon the request of the secretary
of state, shall then begin an action for the appointment of a
receiver for such
person, partnership, association, firm or corporation and to dissolve the same.
(h) Whenever an audit is made pursuant to this section, the person,
partnership, association, firm or corporation so audited shall pay to the secretary of state such
expenses relating to the audit as assessed by the secretary of state pursuant
to K.S.A. 75-442 and amendments thereto.
History: L. 1987, ch. 77, § 2; L. 1988, ch. 94, § 3; L. 1989,
ch. 48, § 74;
L. 1992, ch. 172, § 1; July 1.