Full Text of HB3775 103rd General Assembly
HB3775 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3775 Introduced 2/17/2023, by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED: |
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815 ILCS 390/14 | from Ch. 21, par. 214 |
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Amends the Illinois Pre-Need Cemetery Sales Act. Provides that the pre-need contract shall provide, if applicable, that if the purchaser does not pay the costs associated with the opening or closing of an undeveloped interment,
inurnment, or entombment space, the seller may repossess the undeveloped interment,
inurnment, or entombment space.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pre-Need Cemetery Sales Act is | 5 | | amended by changing Section 14 as follows:
| 6 | | (815 ILCS 390/14) (from Ch. 21, par. 214)
| 7 | | Sec. 14. Contract required.
| 8 | | (a) It is unlawful for any person doing business within | 9 | | this
State to accept sales proceeds, either directly or | 10 | | indirectly, by any
means unless the seller enters into a | 11 | | pre-need sales
contract
with the
purchaser which meets the | 12 | | following requirements:
| 13 | | (1) A written sales contract shall be executed in at | 14 | | least 11 point
type in duplicate for
each pre-need sale | 15 | | made by a licensee, and a signed copy given to the
| 16 | | purchaser. Each completed contract shall be numbered and | 17 | | shall contain: (i)
the
name and address of the purchaser, | 18 | | the principal office
of the licensee, and the parent | 19 | | company of the licensee; (ii) the name
of the person,
if | 20 | | known, who
is to receive the cemetery merchandise, | 21 | | cemetery services or the
completed interment, entombment | 22 | | or inurnment spaces under the contract; and
(iii) specific | 23 | | identification of such
merchandise, services or spaces to |
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| 1 | | be provided, if a specific space or spaces
are contracted | 2 | | for, and
the price of the merchandise, services, or space | 3 | | or spaces.
| 4 | | (2) In addition,
such contracts must contain a | 5 | | provision in distinguishing typeface as follows:
| 6 | | "Notwithstanding anything in this contract to the | 7 | | contrary, you are
afforded certain specific rights of | 8 | | cancellation and refund under the Illinois Pre-Need | 9 | | Cemetery Sales Act, enacted by the 84th
General Assembly | 10 | | of the State of Illinois".
| 11 | | (3) All pre-need sales contracts shall be sold on a | 12 | | guaranteed price
basis.
At the time of performance of the | 13 | | service or delivery of the merchandise,
the seller shall | 14 | | be prohibited from assessing the purchaser or
his heirs or
| 15 | | assigns or duly authorized representative any additional | 16 | | charges for the
specific merchandise and services listed | 17 | | on the pre-need sales contract.
| 18 | | (4) Each contract shall clearly disclose that the | 19 | | price of the
merchandise or services is guaranteed and | 20 | | shall contain the following
statement in 12 point bold | 21 | | type:
| 22 | | "THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC | 23 | | GOODS,
SERVICES, INTERMENT SPACES, ENTOMBMENT SPACES, AND | 24 | | INURNMENT SPACES
CONTRACTED FOR. NO ADDITIONAL CHARGES MAY | 25 | | BE REQUIRED FOR
DESIGNATED GOODS, SERVICES, AND SPACES. | 26 | | ADDITIONAL CHARGES MAY
BE INCURRED FOR
UNEXPECTED |
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| 1 | | EXPENSES."
| 2 | | (5) The pre-need sales contract shall provide that
if | 3 | | the particular cemetery services, cemetery
merchandise, or | 4 | | spaces specified in the pre-need
contract are unavailable | 5 | | at the time of delivery, the
seller shall be required to | 6 | | furnish services,
merchandise, and spaces similar in style | 7 | | and at least
equal in quality of material and workmanship.
| 8 | | (6) The pre-need contract shall also disclose any
| 9 | | specific penalties to be incurred by the purchaser as a
| 10 | | result of failure to make payments; and penalties to be
| 11 | | incurred or moneys or refunds to be received as a result
of | 12 | | cancellation of the contract.
| 13 | | (7) The pre-need contract shall disclose the nature
of | 14 | | the relationship between the provider and the seller.
| 15 | | (8) Each pre-need contract that authorizes the | 16 | | delivery
of cemetery merchandise to a licensed and bonded | 17 | | warehouse
shall provide that prior to or upon delivery of | 18 | | the
merchandise to the warehouse
the title to the | 19 | | merchandise and a warehouse receipt shall
be delivered to | 20 | | the purchaser or beneficiary. The pre-need
contract shall | 21 | | contain the following statement in 12 point
bold type:
| 22 | | "THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO
A | 23 | | LICENSED AND BONDED WAREHOUSE FOR STORAGE OF THE
| 24 | | MERCHANDISE UNTIL THE MERCHANDISE IS NEEDED BY THE
| 25 | | BENEFICIARY. DELIVERY OF THE MERCHANDISE IN THIS MANNER | 26 | | MAY
PRECLUDE REFUND OF SALE PROCEEDS THAT ARE ATTRIBUTABLE |
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| 1 | | TO
THE DELIVERED MERCHANDISE."
| 2 | | The purchaser shall initial the statement at the time | 3 | | of
entry into the pre-need contract.
| 4 | | (9) Each pre-need contract that authorizes the | 5 | | placement
of cemetery merchandise at the site of its
| 6 | | ultimate use prior to the time that the merchandise is | 7 | | needed
by the beneficiary shall contain the following | 8 | | statement in
12 point bold type:
| 9 | | "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE
AT | 10 | | THE SITE OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
| 11 | | MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
| 12 | | MERCHANDISE IN THIS MANNER MAY PRECLUDE REFUND OF SALE
| 13 | | PROCEEDS THAT ARE ATTRIBUTABLE TO THE DELIVERED
| 14 | | MERCHANDISE."
| 15 | | The purchaser shall initial the statement at the time | 16 | | of
entry into the pre-need contract.
| 17 | | (10) Each pre-need contract that is funded by a trust | 18 | | shall clearly identify the trustee's name and address and | 19 | | the primary state or federal regulator of the trustee as a | 20 | | corporate fiduciary. | 21 | | (11) The pre-need contract shall provide, if | 22 | | applicable, that if the purchaser does not pay the costs | 23 | | associated with the opening or closing of an undeveloped | 24 | | interment,
inurnment, or entombment space, the seller may | 25 | | repossess the undeveloped interment,
inurnment, or | 26 | | entombment space. |
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| 1 | | (b) Every pre-need sales contract must be in writing.
The | 2 | | Comptroller may by rule
develop a model pre-need sales | 3 | | contract form that meets the requirements
of this Act.
| 4 | | (c) To the extent the Rule is applicable, every pre-need | 5 | | sales
contract is subject to the Federal Trade Commission Rule | 6 | | concerning the
Cooling-Off Period for Door-to-Door Sales (16 | 7 | | CFR Part 429).
| 8 | | (d) No pre-need sales contract may be entered into in
this | 9 | | State unless there is a provider for the cemetery
merchandise, | 10 | | cemetery services, and undeveloped interment,
inurnment, and | 11 | | entombment spaces being sold. If the seller
is not the | 12 | | provider, then the seller must have a binding
agreement with a | 13 | | provider, and the identity of the provider
and the nature of | 14 | | the agreement between the seller and the
provider must be | 15 | | disclosed in the pre-need sales contract
at the time of sale | 16 | | and before the receipt of any sale
proceeds. The failure to | 17 | | disclose the identity of the
provider, the nature of the | 18 | | agreement between the seller
and the provider, or any changes | 19 | | thereto to the purchaser
and beneficiary, or the failure to | 20 | | make the disclosures
required by this Section constitutes an | 21 | | intentional
violation of this Act.
| 22 | | (e) No pre-need contract may be entered into in this
State | 23 | | unless it is accompanied by a funding mechanism
permitted | 24 | | under this Act and unless the seller is
licensed by the | 25 | | Comptroller as provided in this Act.
Nothing in this Act is | 26 | | intended to relieve providers or
sellers of pre-need contracts |
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| 1 | | from being licensed under any
other Act required for their | 2 | | profession or business or from
being subject to the rules | 3 | | promulgated to regulate their
profession or business, | 4 | | including rules on solicitation and
advertisement.
| 5 | | (f) No pre-need contract may be entered into in this
State | 6 | | unless the seller explains to the
purchaser the terms of the | 7 | | pre-need contract prior to the
purchaser signing and the | 8 | | purchaser initials a statement in the contract
confirming that | 9 | | the seller has explained the terms of the contract prior to the
| 10 | | purchaser signing.
| 11 | | (g) The State Comptroller shall develop a booklet for
| 12 | | consumers in plain English describing the scope,
application, | 13 | | and consumer protections of this Act. After
the booklet is | 14 | | developed, no pre-need contract may be
sold in this State | 15 | | unless the seller
distributes to the purchaser prior to the | 16 | | sale a booklet
developed or approved for use by the State | 17 | | Comptroller.
| 18 | | (Source: P.A. 96-879, eff. 2-2-10.)
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