Bill Text: IL HB3775 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Cemetery Oversight Act. Provides that any retail installment contract for the purchase of interment, entombment, or inurnment rights shall contain a clearly worded notice, in 12-point type, bold, underlined, and capital letters, that rights to a deeded interest do not vest until final payment and that upon an uncured default, including when a contract is rolled into a new open-balance retail installment contract, with additional interment, entombment, or inurnment rights or additional cemetery merchandise or services, there will be no deeded interest.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-06-30 - Public Act . . . . . . . . . 103-0206 [HB3775 Detail]

Download: Illinois-2023-HB3775-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3775 Introduced , by Rep. Curtis J. Tarver, II SYNOPSIS AS INTRODUCED:
815 ILCS 390/14 from Ch. 21, par. 214
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.
LRB103 26880 SPS 53244 b
A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pre-Need Cemetery Sales Act is
amended by changing Section 14 as follows:
(815 ILCS 390/14) (from Ch. 21, par. 214)
Sec. 14. Contract required.
(a) It is unlawful for any person doing business within
this State to accept sales proceeds, either directly or
indirectly, by any means unless the seller enters into a
pre-need sales contract with the purchaser which meets the
following requirements:
(1) A written sales contract shall be executed in at
least 11 point type in duplicate for each pre-need sale
made by a licensee, and a signed copy given to the
purchaser. Each completed contract shall be numbered and
shall contain: (i) the name and address of the purchaser,
the principal office of the licensee, and the parent
company of the licensee; (ii) the name of the person, if
known, who is to receive the cemetery merchandise,
cemetery services or the completed interment, entombment
or inurnment spaces under the contract; and (iii) specific
identification of such merchandise, services or spaces to

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be provided, if a specific space or spaces are contracted
for, and the price of the merchandise, services, or space
or spaces.
(2) In addition, such contracts must contain a
provision in distinguishing typeface as follows:
"Notwithstanding anything in this contract to the
contrary, you are afforded certain specific rights of
cancellation and refund under the Illinois Pre-Need
Cemetery Sales Act, enacted by the 84th General Assembly
of the State of Illinois".
(3) All pre-need sales contracts shall be sold on a
guaranteed price basis. At the time of performance of the
service or delivery of the merchandise, the seller shall
be prohibited from assessing the purchaser or his heirs or
assigns or duly authorized representative any additional
charges for the specific merchandise and services listed
on the pre-need sales contract.
(4) Each contract shall clearly disclose that the
price of the merchandise or services is guaranteed and
shall contain the following statement in 12 point bold
type:
"THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC
GOODS, SERVICES, INTERMENT SPACES, ENTOMBMENT SPACES, AND
INURNMENT SPACES CONTRACTED FOR. NO ADDITIONAL CHARGES MAY
BE REQUIRED FOR DESIGNATED GOODS, SERVICES, AND SPACES.
ADDITIONAL CHARGES MAY BE INCURRED FOR UNEXPECTED

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EXPENSES."
(5) The pre-need sales contract shall provide that if
the particular cemetery services, cemetery merchandise, or
spaces specified in the pre-need contract are unavailable
at the time of delivery, the seller shall be required to
furnish services, merchandise, and spaces similar in style
and at least equal in quality of material and workmanship.
(6) The pre-need contract shall also disclose any
specific penalties to be incurred by the purchaser as a
result of failure to make payments; and penalties to be
incurred or moneys or refunds to be received as a result of
cancellation of the contract.
(7) The pre-need contract shall disclose the nature of
the relationship between the provider and the seller.
(8) Each pre-need contract that authorizes the
delivery of cemetery merchandise to a licensed and bonded
warehouse shall provide that prior to or upon delivery of
the merchandise to the warehouse the title to the
merchandise and a warehouse receipt shall be delivered to
the purchaser or beneficiary. The pre-need contract shall
contain the following statement in 12 point bold type:
"THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO A
LICENSED AND BONDED WAREHOUSE FOR STORAGE OF THE
MERCHANDISE UNTIL THE MERCHANDISE IS NEEDED BY THE
BENEFICIARY. DELIVERY OF THE MERCHANDISE IN THIS MANNER
MAY PRECLUDE REFUND OF SALE PROCEEDS THAT ARE ATTRIBUTABLE

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TO THE DELIVERED MERCHANDISE."
The purchaser shall initial the statement at the time
of entry into the pre-need contract.
(9) Each pre-need contract that authorizes the
placement of cemetery merchandise at the site of its
ultimate use prior to the time that the merchandise is
needed by the beneficiary shall contain the following
statement in 12 point bold type:
"THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE AT
THE SITE OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
MERCHANDISE IN THIS MANNER MAY PRECLUDE REFUND OF SALE
PROCEEDS THAT ARE ATTRIBUTABLE TO THE DELIVERED
MERCHANDISE."
The purchaser shall initial the statement at the time
of entry into the pre-need contract.
(10) Each pre-need contract that is funded by a trust
shall clearly identify the trustee's name and address and
the primary state or federal regulator of the trustee as a
corporate fiduciary.
(11) 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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(b) Every pre-need sales contract must be in writing. The
Comptroller may by rule develop a model pre-need sales
contract form that meets the requirements of this Act.
(c) To the extent the Rule is applicable, every pre-need
sales contract is subject to the Federal Trade Commission Rule
concerning the Cooling-Off Period for Door-to-Door Sales (16
CFR Part 429).
(d) No pre-need sales contract may be entered into in this
State unless there is a provider for the cemetery merchandise,
cemetery services, and undeveloped interment, inurnment, and
entombment spaces being sold. If the seller is not the
provider, then the seller must have a binding agreement with a
provider, and the identity of the provider and the nature of
the agreement between the seller and the provider must be
disclosed in the pre-need sales contract at the time of sale
and before the receipt of any sale proceeds. The failure to
disclose the identity of the provider, the nature of the
agreement between the seller and the provider, or any changes
thereto to the purchaser and beneficiary, or the failure to
make the disclosures required by this Section constitutes an
intentional violation of this Act.
(e) No pre-need contract may be entered into in this State
unless it is accompanied by a funding mechanism permitted
under this Act and unless the seller is licensed by the
Comptroller as provided in this Act. Nothing in this Act is
intended to relieve providers or sellers of pre-need contracts

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from being licensed under any other Act required for their
profession or business or from being subject to the rules
promulgated to regulate their profession or business,
including rules on solicitation and advertisement.
(f) No pre-need contract may be entered into in this State
unless the seller explains to the purchaser the terms of the
pre-need contract prior to the purchaser signing and the
purchaser initials a statement in the contract confirming that
the seller has explained the terms of the contract prior to the
purchaser signing.
(g) The State Comptroller shall develop a booklet for
consumers in plain English describing the scope, application,
and consumer protections of this Act. After the booklet is
developed, no pre-need contract may be sold in this State
unless the seller distributes to the purchaser prior to the
sale a booklet developed or approved for use by the State
Comptroller.
(Source: P.A. 96-879, eff. 2-2-10.)