COMMITTEE SUBSTITUTE

FOR

H. B. 2004

(By Delegate Amores, Spencer, Capito and Ashley)


(Originating in the Committee on the Judiciary)


[January 29, 1999]


A BILL to amend article five, chapter thirty-five of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section seven; and to amend and reenact section five, article five-b of said chapter, all relating to requirements for contracts made by cemetery companies.

Be it enacted by the Legislature of West Virginia:
That article five, chapter thirty-five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section seven; and that section five, article five-b, of said chapter be amended and reenacted, all to read as follows:
ARTICLE 5. CEMETERIES.
§35-5-7. Requirements for cemetery company contracts.

(a) Any cemetery company contract shall:
(1) Be written in clear understandable language and printed in easy-to-read type, size and style;
(2) Identify the seller, the contract buyer and the person for whom the contract is bought if other than the contract buyer;
(3) Contain a complete description of the property, goods or services bought, including an itemization of the costs for each property, goods or service bought including specifically the cost of the monument, marker, installation, foundation, opening and closing of grave site and any other charge for specific items. The failure to provide this information is a violation of subsection (f), section one hundred two, article six, chapter forty-six-a of this code, relating to unfair methods of competition and unfair or deceptive acts or practice;
(4) Clearly disclose whether the price of the property, goods or services bought is guaranteed;
(5) Provide that if the particular property, goods and services specified in the contract are unavailable at the time of delivery, the seller shall be required to furnish property, goods and services similar in size and style and at least equal in quality of material and workmanship and that the representative of the deceased has the right to reasonably choose the property, goods or services to be substituted; and
(6) Be executed in duplicate and a signed copy given to the buyer.
(b) For purposes of this section, the following words and phrases have the following meanings:

(1) "Cemetery company" or "seller" means any person, partnership, firm or corporation engaged in the business of operating a cemetery or selling property, goods or services used in connection with interring or disposing of the remains or commemorating the memory of a deceased human being.

(2) "Cemetery company contract"
means a contract for the sale of real and personal property, goods or services used in connection with interring or disposing of the remains or commemorating the memory of a deceased human being .
ARTICLE 5B. PRENEED CEMETERY COMPANY PROPERTY, GOODS AND SERVICES; RELATED CONTRACTS.

§35-5B-5. Requirements for preneed cemetery company contracts.

A preneed cemetery company contract shall:
(1) Be written in clear understandable language and printed in easy-to-read type, size and style;
(2) Identify the seller, the contract buyer and the person for whom the contract is bought if other than the contract buyer;
(3) Contain a complete description of the property, goods or services bought, including an itemization of the costs for each property, goods or service bought including specifically the cost of the monument, marker, installation, foundation, opening and closing of grave site and any other charge for specific items. The failure to provide this information is a violation of subsection (f), section one hundred two, article six, chapter forty-six-a of this code, relating to unfair methods of competition and unfair or deceptive acts or practice;
(4) Clearly disclose whether the price of the property, goods or services bought is guaranteed;
(5) Provide that if the particular property, goods and services specified in the contract are unavailable at the time of delivery, the seller shall be required to furnish property, goods and services similar in size and style and at least equal in quality of material and workmanship and that the representative of the deceased has the right to reasonably choose the property, goods or services to be substituted; and
(6) Be executed in duplicate and a signed copy given to the buyer.

NOTE: The purpose of this bill is to require cemetery company contracts to itemize charges.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§35-5-7 is new; therefore, strike-throughs and underscoring have been omitted.