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Synopsis As Introduced Amends the Illinois Funeral or Burial Funds Act. Limits certain provisions concerning payment under pre-need contracts to pre-need contracts entered into prior to the effective date of the amendatory Act. Makes changes to the definition of "seller". Provides that, before a seller and purchaser enter into a pre-need contract or pre-need sales contract, the seller must disclose and fully explain certain funding options. Provides that, if a pre-need contract includes the sale of funeral services and merchandise: (1) the seller must be a funeral director licensed under the Funeral Directors and Embalmers Licensing Code who is employed at the time of the sale of the contract by the funeral establishment through which the funeral services and merchandise will be provided, (2) the contract must be filled out by a funeral director licensed under the Funeral Directors and Embalmers Licensing Code, and (3) the contract may only be executed by a funeral director licensed under the Funeral Directors and Embalmers Licensing Code. Amends the Illinois Pre-Need Cemetery Sales Act. Provides that sellers of pre-need sales contracts must be licensed by the Department of Financial and Professional Regulation, and requires specified continuing education. Limits certain provisions concerning payment under pre-need contracts to pre-need contracts entered into prior to the effective date of the amendatory Act. Provides that, before a seller and purchaser enter into a pre-need contract or pre-need sales contract, the seller must disclose and fully explain certain funding options. Makes other changes. Effective immediately.
House Committee Amendment No. 1 In provisions amending the Illinois Pre-Need Cemetery Sales Act, provides that an agreement or contract for or a private sale of a casket, urn, or floral arrangement shall not be deemed a pre-need sales contract or a pre-need sale under specified circumstances.
Fiscal Note, House Committee Amendment No. 1 (Office of the Comptroller)
HB 3486 (H-AM 1) will have no direct fiscal impact on the Office of the Comptroller. In regards to allowing for pre-need sales funds to be deposited without corporate fiduciary protections, we believe this change would put funds at greater risk and potentially expose consumers to higher or hidden fees associated with these deposits. Therefore, there would be a negative fiscal impact on consumers.
Fiscal Note, House Committee Amendment No. 1 (Financial & Professional Regulation)
The Illinois Department of Financial and Professional Regulation anticipates HB 3486 (H-AM 1) to have a fiscal impact of $207,238 based off costs projected for additional staffing needs.
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