H-3186              _______________________________________________

                                                   HOUSE BILL NO. 2574

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives P. King, Nelson, Hankins, Brooks, H. Myers, Miller, S. Wilson, Rasmussen, and Cooper

Read first time 1/15/90 and referred to Committee on Energy & Utilities.

AN ACT Relating to the telephone solicitation of certain death-related business; and amending RCW 18.39.300 and 68.46.055.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 6, chapter 66, Laws of 1982 as last amended by section 7, chapter 390, Laws of 1989 and RCW 18.39.300 are each amended to read as follows:

          In addition to the grounds for action set forth in RCW 18.130.170 and 18.130.180, the board may take the disciplinary action set forth in RCW 18.130.160 against the funeral establishment's license, the license of any funeral director and/or the funeral establishment's certificate of registration, if the licensee or registrant:

          (1) Fails to comply with any provisions of this chapter, chapter 18.130 RCW, or any proper order or regulation of the board;

          (2) Is found by the board to be in such condition that further execution of prearrangement contracts could be hazardous to purchasers or beneficiaries and the people of this state;

          (3) Refuses to be examined, or refuses to submit to examination by the board when required;

          (4) Fails to pay the expense of an examination; ((or))

          (5) Is found by the board after investigation or receipt of reliable information to be managed by persons who are incompetent or untrustworthy or so lacking in managerial experience as to make the proposed or continued execution or servicing of prearrangement funeral service contracts hazardous to purchasers, beneficiaries, or to the public; or

(6) Is found by the board after investigation or receipt of reliable information to have engaged in the telephone solicitation of prearrangement funeral service contracts.

        Sec. 2.  Section 8, chapter 53, Laws of 1984 and RCW 68.46.055 are each amended to read as follows:

          (1) No cemetery authority may enter into a retail contract for the purchase of debentures, shares, scrip, bonds, notes, or any instrument or evidence of indebtedness, excluding retail installment sales transactions governed by chapter 63.14 RCW, which directly or indirectly requires or permits the cemetery authority to furnish to the holder at a future date cemetery merchandise or services, or crypts, niches, or graves.

          (2) A cemetery authority which enters into prearrangement contracts for the sale of unconstructed crypts or niches or undeveloped graves or which conveys undeveloped graves by gift shall maintain an adequate inventory of  constructed crypts or niches and developed graves which in quality are equal to or better than the unconstructed crypts or niches, or undeveloped graves if they were constructed or developed.  In the event of the death of a purchaser or owner of an unconstructed crypt or niche or undeveloped grave before the unconstructed crypt or niche or undeveloped grave is constructed or developed the cemetery authority shall provide a constructed crypt or niche or developed grave of equal or better quality without additional cost or charge.  If two or more unconstructed crypts or niches or undeveloped graves are conveyed with the intention that the crypts or niches or graves shall be contiguous to each other or maintained together as a group and the death of  any one purchaser or owner in such group occurs before the unconstructed crypts or niches or undeveloped graves are developed, the cemetery authority shall provide additional constructed crypts or niches or developed graves of equal or better quality contiguous to each other or together as a group as originally intended to other purchasers or owners in the group without additional cost or charge.

(3) It is unlawful for any cemetery authority to engage in the telephone solicitation of prearrangement contracts.