GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	2 

HOUSE BILL 1314
Committee Substitute Favorable 6/8/98

Short Title:  Cemetery Consumer Protection.	(Public)

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Sponsors:

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Referred to: 

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May 18, 1998

A BILL TO BE ENTITLED
AN ACT TO MAKE CERTAIN CHANGES TO REGULATIONS REGARDING CEMETERIES TO PROVIDE FOR CONSUMER PROTECTION, BASED ON RECOMMENDATIONS OF THE LEGISLATIVE RESEARCH COMMISSION'S STUDY COMMITTEE ON CEMETERY ISSUES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 65-53 is amended by inserting a new subdivision to read:
"(3a)	Investigate, upon its own initiative or upon a verified complaint in writing, whether a particular contract for the sale of personal property or services, whether preneed or at-need, contains the disclosure required pursuant to G.S. 65-66(d) and adopt temporary rules pursuant to Chapter 150B of the General Statutes, if necessary, to implement this subdivision until such time as permanent rules are adopted."
Section 2.  G.S. 65-66(d) reads as rewritten:
"(d)	Any contract for the sale of personal property or services, whether preneed or at-need, shall disclose the following:
(1)	The cost for each item of personal property and for each act of installation or other service required by the contract, including any costs for interment, entombment, or inurnment;
(2)	Specification of (i) whether opening and closing of a grave space, mausoleum space, or columbarium space is included in the contract, and, if not, the current prices for opening and closing and a statement that these prices are subject to change and (ii) whether the grave space, mausoleum space, or columbarium space is new or used;
(3)	Any requirements or costs relating to memorial markers, including any duties of the grave space, mausoleum space, or columbarium space owner if the owner desires to have an outside provider provide the marker and any costs relating to having an outside provider provide and place a marker;
(4)	A statement describing, in language that is readable and understandable by a person of average intelligence, experience, and education, the nature of the property right in the grave space, mausoleum space, or columbarium space; and
(5)	A statement that a purchaser has, pursuant to G.S. 65-66(m), 30 days following the execution of a contract to cancel the contract by giving written notice to the seller and that the seller may cancel the contract, upon default by the purchaser, by giving written notice to the purchaser.”
Section 3.  G.S. 65-53 is amended by adding a new subdivision to read:
"(9)	The Commission shall keep records of the complaints received and the action taken by the Commission on each complaint.  These records shall be kept for at least five years after receipt of the complaint."
Section 4.  The Department of Justice through the Office of the Attorney General, Consumer Protection Division, shall ensure that private, for-profit cemetery companies operate within Article 1 of Chapter 75 of the General Statutes, titled "Monopolies, Trusts, and Consumer Protection", and the federal antitrust and unfair trade practices laws.
Section 5.  This act is effective when it becomes law.