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Committee backs lowering mandatory perpetual-care set‑aside from 20% to 10% for some cemeteries
Summary
After testimony from a local cemetery association and state regulators, the committee recommended a change that would let perpetual-care cemeteries set aside a minimum of 10% (instead of 20%) of lot sales for their perpetual-care funds; vote was 5-1.
House Bill 1219, brought at the request of the Fairview Cemetery Association in Wahpeton, would reduce the required minimum set-aside into perpetual-care funds from 20% of lot sales to 10% for perpetual-care cemeteries.
Representative Alisa Mitskog told the committee that some perpetual-care cemeteries rely on lot sales and volunteers and face financial strain as volunteer availability declines and operating costs rise. She said reducing the required percentage would allow associations to retain more of current revenue for immediate maintenance; Fairview Cemetery estimates that the reduction would yield an additional $4,000 to $6,000 per year for upkeep.
Allison Hicks, general counsel for the Public Health Division (which registers cemeteries), explained that under North Dakota law only the income from a perpetual-care fund may be used for ongoing maintenance; principal withdrawals require court action. Hicks said the bill would affect all perpetual-care cemeteries and that district courts regulate trusts; the committee requested that stewardship and long-term viability be considered.
Committee members discussed the tradeoff between present operating needs and long-term fund longevity. Senator Wallen expressed concern that reducing the set-aside could hurt future maintenance when lot-sales revenue ends; Senator Lee and others said the bill’s language sets minimums and includes fixed-dollar minimums that help preserve baseline funding.
The roll call on the committee’s due-pass recommendation was Chair Rohrs — aye; Vice Chair Castaneda — aye; Senator Barta — aye; Senator Brownberger — aye; Senator Lee — aye; Senator Wallen — nay. The committee recommended the bill 5-1.
