Minnesota Session Laws - 1996, Regular Session

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 413-H.F.No. 2413 
                  An act relating to cemeteries; clarifying procedures 
                  for examination of certain accounts and records by the 
                  state auditor; providing for transfer of cemeteries to 
                  and from local units of government; amending Minnesota 
                  Statutes 1994, sections 149.13, subdivision 5; 306.02, 
                  subdivision 2; 306.025; 306.243, by adding a 
                  subdivision; and 306.97. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 149.13, 
        subdivision 5, is amended to read: 
           Subd. 5.  Upon notification from the county auditor or the 
        commissioner of health of indications of violations of this 
        chapter, or upon reliable written verification by any person, 
        the state auditor shall make an independent determination of 
        whether a violation of the provisions in this chapter is 
        occurring, or is about to occur.  If the state auditor finds 
        such evidence, the state auditor shall conduct an independent 
        audit any examinations of accounts and records of the entity in 
        accordance with generally accepted auditing standards that the 
        state auditor considers the public interest to demand and shall 
        inform the appropriate agency of any finding of misconduct.  The 
        state auditor may require the entity being examined to send all 
        books, accounts, and vouchers pertaining to the receipt, 
        disbursement, and custody of funds to the office of the state 
        auditor for examination.  The person, firm, partnership, 
        association, or corporation audited examined under this section 
        by the state auditor shall reimburse the state auditor for 
        expenses incurred in conducting the audit examination within 30 
        days after the state auditor submits its expenses.  Interest at 
        the rate established in section 549.09 shall accrue on the 
        outstanding balance starting on the 31st day after the state 
        auditor's office submits its request for expenses.  
           Sec. 2.  Minnesota Statutes 1994, section 306.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TRANSFER BY CITY OR TOWN LOCAL GOVERNMENT UNIT.] 
        Cemetery land and property or a public burial ground owned or 
        controlled by a town or, statutory or home rule charter city, or 
        county may be transferred by the town or city by deed or 
        otherwise to an existing cemetery association or corporation or 
        one formed under this chapter.  The transfer may be with or 
        without condition, as determined by the town or, statutory or 
        home rule charter city, or county.  The town or, statutory or 
        home rule charter city, or county may, as a part of the 
        transaction, enter into a contract or agreement with the 
        cemetery association to provide for the management and 
        maintenance of the cemetery, for the sale of lots or land in the 
        cemetery, and for those other matters concerning the care and 
        control of the cemetery as the town or, statutory or home rule 
        charter city, or county considers advisable. 
           Sec. 3.  Minnesota Statutes 1994, section 306.025, is 
        amended to read: 
           306.025 [TRANSFER OF CEMETERIES TO STATUTORY CITIES 
        CEMETERY TO LOCAL GOVERNMENT UNIT.] 
           Subdivision 1.  [ACCEPTANCE.] A public cemetery association 
        owning a cemetery located wholly or partly within a statutory 
        city may transfer the cemetery it to the a statutory or home 
        rule charter city, town, or county in which it is the cemetery 
        is wholly or partly located, together with all the funds and 
        property of the association, whether the funds are of a trust 
        character or otherwise.  The statutory or home rule charter city 
        , town, or county in which the cemetery is wholly or partly 
        located may accept a transfer of the cemetery and of its 
        property and funds, and may continue to operate, maintain, 
        manage, and conduct the cemetery, and to sell lots and provide 
        for the burial of the dead in the cemetery.  Funds received from 
        the cemetery association upon transfer shall be administered by 
        the statutory or home rule charter city, town, or county for the 
        same purposes and upon the same trusts for which they were 
        originally established. 
           Subd. 2.  [TRANSFER, HOW MADE.] To accomplish a transfer, 
        the board of trustees of the cemetery association shall first 
        adopt a resolution to that effect by a unanimous vote of the 
        members of the board of trustees, after which the chair or 
        president of the board of trustees and the secretary are 
        authorized to execute the proper instruments to evidence the 
        transfer.  However, the transfer must first have been authorized 
        by a majority vote of all the members of the association at a 
        regular or special meeting called for that express purpose.  
           Subd. 3.  [STATUTORY CITY COUNCIL LOCAL GOVERNMENT UNIT TO 
        ACCEPT BY RESOLUTION.] Before the transfer is made, the city 
        council governing body of the statutory or home rule charter 
        city, town, or county in which the cemetery is wholly or partly 
        located shall first adopt a resolution agreeing to accept the 
        transfer of the property and funds of the association, and agree 
        to continue to operate, maintain, manage, conduct, and control 
        the cemetery, to sell lots in it, and to administer its funds 
        for the same purposes and upon the same trusts for which they 
        were originally established.  
           Subd. 4.  [TRUST FUND FOR PERPETUAL CARE.] If a trust fund 
        for the perpetual care of cemetery lots is transferred to a 
        statutory or home rule charter city, town, or county under this 
        section, then the fund must be preserved and kept and used and 
        administered for the same purposes and upon the same trusts as 
        if the transfer had not been made.  Lots for which payment in 
        full for perpetual care has been made to the cemetery 
        association are entitled to receive perpetual care, and the 
        statutory or home rule charter city, town, or county shall 
        provide it.  
           Subd. 5.  [RIGHTS OF LOT OWNERS.] After transfer, lot 
        owners are entitled to the same rights and privileges concerning 
        their lots as if the transfer had not been made.  
           Subd. 6.  [MAINTENANCE.] After the transfer has been made 
        and accepted by the statutory or home rule charter city, town, 
        or county, the city council governing body of the statutory or 
        home rule charter city, town, or county shall operate, maintain, 
        conduct, control, and manage the transferred cemetery.  For that 
        purpose it may appoint a committee of the council governing body.
           Subd. 7.  [RULES.] The city council governing body of the 
        statutory or home rule charter city, town, or county may adopt 
        rules and regulations to conduct, manage, maintain, and operate 
        the cemetery, but the rules may not infringe upon the rights of 
        persons who were lot owners at the time the transfer was made.  
           Sec. 4.  Minnesota Statutes 1994, section 306.243, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [TRANSFER.] A county that has assumed maintenance 
        of an abandoned cemetery under this section for a period of at 
        least one year may transfer the cemetery land and property as 
        provided in section 306.02. 
           Sec. 5.  Minnesota Statutes 1994, section 306.97, is 
        amended to read: 
           306.97 [DUTIES OF THE STATE AUDITOR.] 
           Upon notification from a county auditor or upon reliable 
        written verification by any person of indications of violations 
        of this chapter the state auditor shall make an independent 
        determination of whether a violation of the provisions in this 
        chapter is occurring or is about to occur, and in those 
        instances in which.  If the state auditor finds such evidence, 
        the state auditor shall conduct an independent audit any 
        examinations of accounts and records of the cemetery, mausoleum, 
        or columbarium in accordance with generally accepted auditing 
        standards that the state auditor considers the public interest 
        to demand and shall inform the appropriate agency of any finding 
        of misconduct.  The state auditor may require the entity being 
        examined to send all books, accounts, and vouchers pertaining to 
        the receipt, disbursement, and custody of funds to the office of 
        the state auditor for examination.  The person, firm, 
        partnership, association, or corporation audited examined under 
        this section by the state auditor shall reimburse the state 
        auditor for expenses incurred in conducting the audit 
        examination within 30 days after the state auditor's office 
        submits its expenses.  Interest at the rate established in 
        section 549.09 shall accrue on the outstanding balance starting 
        on the 31st day after the state auditor demands expenses. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 2, 1996, 12:33 p.m.