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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=21869
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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: January 6, 2017 03:38 PM
From: Representative James R. Santora
To: All House members
Subject: Cemetery and Funeral Merchandise Package
 
In the near future I will introduce three legislative proposals which amend the Cemetery and Funeral Merchandise Trust Fund Law (Act 459 of 1963) previously HB 1364, commonly referred to as the Future Interment Law, to better protect consumers. Together, these three bills offer common sense measures to provide the consumer with more transparency when entering into a pre-need contract for funeral merchandise and ensures that the products and pre-payments will be available at the time of need.



Document #1

Introduced as HB1067

Description: This legislation is the first of three I will be introducing and requires the seller of funeral merchandise to provide the potential customer with a price list and a detailed description of all merchandise for sale prior to being shown the merchandise that is available. Currently, there is no requirement for cemetery owners to disclose all the merchandise available to the consumer. However, under current Federal Trade Commission regulations, funeral directors are required to display price lists and disclose all merchandise available for purchase. My legislation will level the playing field and allow the consumer to make a more informed decision when purchasing merchandise from a cemetery owner.
 

Document #2

Introduced as HB1068

Description: This legislation, the second of three I will be introducing prohibits a seller from constructively delivering burial vaults (except lawn crypts) prior to the time of need.
 
Currently, the Cemetery and Funeral Merchandise Trust Fund Law requires sellers of funeral services and merchandise that are to be delivered at a future date (pre-need) to deposit 70% of the purchase price into a trust fund account.
 
Some in the industry have misinterpreted the law and sought to avoid the 70% trusting requirement through the use of “constructive delivery” of certain merchandise prior to the time of need. Certain merchandise, such as burial vaults, are purchased prior to the time of need and are delivered and installed sometimes years before use. This results in a damaged and inferior product that may not be able to be used. Claiming that the merchandise has been delivered, sellers then retain 100% of the sales price rather than complying with the trusting requirements. By prohibiting cemetery owners from constructively delivering burial vaults, we can ensure that the contracted-for merchandise is delivered intact and is usable at the time of need.
 

Document #3

Introduced as HB1069

Description:
This legislation is the final of 3 bills designed to enhance the consumer protections of this law.
 
Currently, the Cemetery and Funeral Merchandise Trust Fund Law requires sellers of funeral services and merchandise that are to be delivered at a future date (pre-need) to deposit 70% of the purchase price into a trust fund account.
 
My bill prohibits a seller from retaining the remaining 30% of the purchase price from the pre-need contract unless the seller’s merchandise trust fund and the permanent lot care fund under Title 9 (Burial Grounds) are funded at the minimums required by law. Some in the industry have been known to misappropriate funds or drain the accounts resulting in the inability to supply the contracted-for merchandise at the time of need and are unable to maintain the cemetery in a proper and dignified manner.
 
This legislation will ensure that there are funds available to fulfill the seller’s contractual obligations and that the cemetery has enough money on hand to maintain the grounds of the cemetery in perpetuity.