Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69K - Division of Funeral, Cemetery, and Consumer Services
Chapter 69K-5 - CEMETERY REGULATION AND PRENEED SALES
Section 69K-5.009 - Regulatory Standards for Evaluating Applications by the Board

(a) Capital should be adequate to enable the new cemetery to provide necessary services for cemeteries, including adequate service to the community and adequate care and maintenance of the cemetery.

(b) Capital shall be sufficient to purchase a cemetery site of no less than thirty (30) contiguous acres in fee simple unencumbered; to develop at least two (2) acres for burial spaces including paved road from a public roadway; to purchase or lease adequate equipment for the operation and maintenance of the cemetery; and to build or lease suitable facilities to operate the cemetery.

(c) An applicant shall demonstrate that it has sufficient capital to sustain its operations until its first projected profitable year. Sufficient capital shall mean that the applicant is able to cover its cumulative losses until projected profitability; provided that, in no event may the tangible accounting net worth of the applicant be less than $50,000. The demonstration of sufficient capital shall be made by submittal of a reasonable business plan covering every year from inception up to and including its first projected year of profitability and providing:

(a) Each proposed officer, director, or principal shall submit an executed Historical Sketch, through Form DFS HistS, which is incorporated by reference in rule 69K-1.001, F.A.C., and can be accessed where indicated in subsection 69K-1.001(1), F.A.C., and shall have reputations evidencing honesty and integrity, and employment and business histories demonstrating their responsibility in financial affairs. The fact that a proposed officer, director, or principal has been adjudicated bankrupt or has filed for relief under the Federal Bankruptcy Act shall be considered a material factor in the evaluation of responsibility in financial affairs.

(b) At least one (1) of the proposed directors or principals, who is not also a proposed officer, shall have had substantial direct experience as an executive officer, director or principal of a cemetery or a preneed licensee licensed pursuant to section 497.452, F.S., within 3 years of the date of the application. If in the opinion of the Board the aggregate level of experience represented by the proposed board of directors or principals is not substantial, the Board shall require the addition of other outside directors or principals who have adequate experience.

(c) The proposed general manager shall have at least three (3) years of direct cemetery management experience within seven (7) years of the application date as a general manager, director, or regulator of a cemetery, or a similar position having an equivalent level of responsibility for a cemetery. The general manager must have a reputation evidencing honesty and integrity and an employment history demonstrating competent past experience. It is not necessary that the name of the general manager be submitted with the application. However, this individual must be named and have submitted an executed Historical Sketch on Form DFS HistS, which is incorporated by reference in rule 69K-1.001, F.A.C., no later than ninety (90) days prior to the applicant's intended opening date. The applicant may not open for business without the Department's prior approval of the general manager.

(d) Change of a director, chief executive officer, president, principal or general manager or the addition of any new directors, executive officers through the first two (2) years of operation shall also require approval of the Department and the Board.

(e) The Department shall conduct background investigations on the principals, general manager, executive officers, directors, and major shareholders. Any misrepresentation or omission of fact in an application by any person shall be cause for the Department or the Board to deny that person's participation in the application and to the extent such misrepresentation or omission of fact reflect upon their honesty and integrity shall be grounds for denial of the entire application.