Disclaimer: The following is an overview of the laws pertaining to PCF permits.  Refer to the OSCN webpage to research all the statues pertaining to PCF permits.

Regulations:  36 O.S. § 7101 – 7112

36 O.S. § 7102

“Cemetery” or “cemeteries” means any land or structure in this state dedicated to or used, or intended to be used, for the interment of human remains.  “Burial space” means any grave space, lot, mausoleum crypt or niche, whether above or below ground, which is used or intended to be used for the interment of human remains.

36 O.S. § 7103

In all cemeteries in this state where burial spaces are sold, not less than ten percent (10%) of the purchase price shall be segregated and set aside as a permanent trust fund to be known as the “Perpetual Care Fund”. The Perpetual Care Fund shall be invested, and the income only shall be used in improving, caring for, and embellishing the lots, walks, drives, parks and other improvements in the cemeteries and maintenance of office and care of records.

Funding Options 36 O.S. § 7103

Trusts – The owner or designated agent of a cemetery shall set aside and deposit the amounts required in a financial institution authorized by law, as trustee, to administer the trusts, not later than thirty (30) days after the close of the month in which was received the final payment on the purchase price of each burial space. The amounts shall be held by the trustee of the Perpetual Care Fund in trust for the specific purposes stated in a written trust agreement.

Certificate of Deposit – if the total amount of the Perpetual Care Fund maintained by the cemetery is an amount equal to or less than the standard insurance amount per depositor as provided by the Federal Deposit Insurance Corporation, the cemetery may, in lieu of depositing the funds in a trust account, purchase a certificate of deposit from a financial institution.   The certificate of deposit shall be pledged in favor of the Oklahoma Insurance Department with no right of withdrawal by the cemetery, whether before or after maturity, except upon application to, and approval by, the Insurance Commissioner. The terms of the certificate of deposit shall provide for notice to the Insurance Department within thirty (30) days prior to maturity.

Distribution of funds – A cemetery may choose distribution of either all net ordinary income or an amount, not to be reduced by taxes or fees, not exceeding five percent (5%) of the average fair market value of the trust funds.

If the cemetery company selects a distribution based on the average fair market value calculation, the trustees must ensure that an investment policy is in place whose goals and objectives are supportive of the growth of the care and maintenance fund. To withdraw up to five percent (5%) of trust funds, the current market value of the trust after the withdrawal shall be greater than the aggregate of eighty percent (80%) of the market value of the trust as of the preceding calendar year, plus the total contributions made to trust principal from such date to the date that the method of calculation is selected. If this is not the case, distributions will be limited for that year to the net ordinary income.

Investment of trust funds 36 O.S. § 7105

Accumulated trust funds may be invested in the manner provided in the Oklahoma Trust Act, Sections 175.1 through 175.57 of Title 60 of the Oklahoma Statutes, and any amendments thereto. The income derived therefrom shall be returned to the cemeteries to be used by them only as provided by the Perpetual Care Fund Act and in a manner consistent with elections made pursuant to subsection E of Section 7103 of this title.

Annual Report 36 O.S. § 7106

Cycle – Permit issued from March 16 xx to March 15 of the following year.  Filing period is YTD January – December

Fee – $200 Annual Report

*Effective 11/01/2023

*90 Day Reinstatement – a permit expired for failure to submit a renewal application and fee may be reinstated within ninety (90) days after the expiration date by electronically filing a renewal application, paying a fee in an amount that is double the renewal fee, and paying any transaction or other applicable fees in the form and manner prescribed by the Commissioner.

* Expired more than 90 days – The Commissioner shall require a permit holder whose permit has been expired for more than ninety (90) days to reapply as if a new applicant and pay an application fee equal to an amount that is double the renewal fee, in addition to any other fines imposed. Any application received after the permit has been expired for more than ninety (90) days shall include a detailed report of Perpetual Care Trust Fund services provided in this state during the period that the permit was expired.  Complete the Activity Attestation form from the expiration date through the date a complete, executed, initial application is submitted via OPTins.

*Electronic filing of Annual Report due March 15^th – The owner of a cemetery maintaining a Perpetual Care Trust Fund or certificate of deposit in lieu of a Perpetual Care Trust Fund shall, by March 15 of each calendar year, electronically file a report and pay any applicable fees in the manner and form prescribed by the Commissioner. Such report shall show, for the preceding calendar year.

Requirements:

Initial / Renewal Applications

• • Current Permit # (renewals)
  • Legal name, DBA and address of permit location
  • Primary contact person
  • List any changes to owners/operators
  • List financial institution serving as trustee and provide copy of trust agreement
  • Total Amount received from sales since last report
  • Total purchase price on contracts which received final payment during year
  • Ending trust fund balance
  • Total contributions
  • Total donations for special care of specified lots

Funds held in trust

• • Copy of statement or report from trustee with the following:
    1. the total amount of the principal of the Perpetual Care Fund as of the beginning and end of the calendar year
    2. the securities and other assets in which such perpetual care funds are invested
    3. cash on hand,
    4. the income derived from the Perpetual Care Fund investments during the calendar year
    5. the gross expenditures or transfers from income of the Perpetual Care Fund during the calendar year

Funds maintained in CD

1. 1. Supporting documentation from the financial institution to verify the following:
   2. Total amount of principal of the Perpetual Care Fund as of the end of the calendar year
   3. The amount of funds contributed to the certificate of deposit by the cemetery as of each maturity date of the certificate of deposit during the last calendar year
   4. Term to maturity

Applicability of Act 36 O.S. § 7108

Perpetual Care Fund Act shall not apply to municipal, religious, fraternal, or nonprofit entities, free community burial grounds, county cemetery associations, Indian tribal cemeteries on tribal land and charitable or eleemosynary institutions operating cemeteries in this state.

Perpetual Care Fund Act may apply to unincorporated cemetery associations operating cemeteries in this state. Unincorporated cemetery associations that make application with the Insurance Commissioner to maintain a perpetual care fund and are approved by the Commissioner shall comply with all provisions of the Perpetual Care Fund Act.

*Enforcement 36 O.S. § 7112 (B).

The Insurance Commissioner may, after an opportunity for hearing, censure an owner of a cemetery, levy a fine not to exceed One Thousand Dollars ($1,000.00) for each occurrence, or any combination of the above for violation of any provision of the Perpetual Care Fund Act or any rules promulgated in accordance with the act.

Perpetual Care Fund Forms

Allocation of Fees
Cemetery Perpetual Care Fund Certificate of Deposit Report
Perpetual Care Annual Report (for use with Perpetual Care Fund Certificate of Deposit Accounts)
Perpetual Care Annual Report (for use with Perpetual Care Fund Trust Accounts)
Application for Purchase of Cemetery
License Surrender Form