Title of Regulation: 18VAC47-20. Cemetery Board Rules and Regulations (amending 18VAC47-20-220).

Statutory Authority: §§ 54.1-201 and 54.1-2313 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: November 4, 2015.

Effective Date: December 1, 2015.

Agency Contact: Christine Martine, Executive Director, Cemetery Board, 9960 Mayland Drive, Suite 400, Richmond, VA 23233, telephone (804) 367-8552, FAX (804) 527-4299, or email cemetery@dpor.virginia.gov.

Basis: Section 54.1-2313 D of the Code of Virginia states: "In addition to the general powers and duties conferred in this subtitle, the Board shall have the power and duty to (i) regulate preneed burial contracts and perpetual care trust fund accounts as prescribed by this chapter, including, but not limited to, the authority to prescribe preneed contract forms, disclosure requirements and disclosure forms and to require reasonable bonds to insure performance of preneed contracts, (ii) regulate and register sales personnel employed by a cemetery company, and (iii) regulate and establish qualifications and standards of conduct for compliance agents employed by a cemetery company to assure compliance of the cemetery with the provisions of this chapter."

Section 54.1-201 A 1 of the Code of Virginia authorizes the regulatory boards to establish the qualifications of applicants for certification or licensure by any such board, provided that all qualifications shall be necessary to ensure either competence or integrity to engage in such profession or occupation. Section 54.1-201 A 5 of the Code of Virginia provides the authority for regulatory boards to promulgate regulations in accordance with the Administrative Process Act necessary to assure continued competency, to prevent deceptive or misleading practices by practitioners and to effectively administer the regulatory system administered by the regulatory board.

Purpose: The purpose of the planned regulatory action is to make changes to incorporate language as necessary to implement the requirements of Chapter 251 of the 2013 Acts of Assembly for developing a process whereby a consumer will be provided a current general price list and itemized statement of charges for burial services. The amendment is intended to provide protection to both consumers and cemetery companies from claims the consumer did not receive the general price list and itemized statement prior to contract execution.

Rationale for Using Fast-Track Process: The fast-track process is being used to implement this amendment as quickly as possible to provide better protection to both consumers and cemetery companies from claims the consumer did not receive the general price list and itemized statement prior to contract execution. This action is noncontroversial since it helps both the consumer and the cemetery company by providing a mechanism to ensure the parties received the required information.

Substance: The amendments add language to the section dealing with itemized statement and general price list of burial fees to implement the provisions of Chapter 251 of the 2013 Acts of Assembly.

Issues: The primary advantage to the public is that the revisions will improve clarity of the regulations and ensure consistency with current legal requirements all to better protect the health, safety, and welfare of the citizens of the Commonwealth.

The primary advantage to the Commonwealth is that the revisions to the regulations reflect the importance Virginia places on ensuring the regulations are the least burdensome but also provide protection to the citizens of the Commonwealth. No disadvantages could be identified.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Cemetery Board (Board) proposes to amend its regulation to require cemetery companies to provide a general price list and an itemized statement of charges for burial services to customers before contract execution. The Board also proposes to require cemetery companies to get a signed acknowledgment of receipt from the customer.

Result of Analysis. Benefits likely outweigh costs for these proposed changes.

Estimated Economic Impact. Currently, cemetery companies are required to offer a general price list and itemized statement of charges for burial services to customers. The Board now proposes to require cemetery companies to provide these lists to customers and get them to sign an acknowledgment that they have received them.

Cemetery companies will incur very minimal costs for adding the required acknowledgment to contract paperwork that customers already sign and receive. Cemetery companies also may incur copying costs for customers who may refuse copies of the lists currently but would get them automatically under the proposed regulatory changes. Board staff reports that the number of customers affected in this way is likely very small and that the expected extra costs incurred by cemetery companies would also be very small. Cemetery companies would likely benefit from having the signed acknowledgment of receipt signed by customers should a contract dispute arise and customers will likely benefit from automatically receiving pricing information prior to signing a contract with a cemetery company. These benefits will likely outweigh the minimal costs that may be incurred on account of this regulatory action.

Businesses and Entities Affected. Board staff reports that there are 93 cemetery companies in the Commonwealth that employ 1,788 sales people. Board staff also reports that 90 of the 93 cemetery companies would qualify as small businesses.

Localities Particularly Affected. No locality will be particularly affected by this proposed regulation.

Projected Impact on Employment. These proposed regulatory changes are unlikely to have any impact on employment in the Commonwealth.

Effects on the Use and Value of Private Property. These proposed regulatory changes are unlikely to have any impact on the use or value of private property in the Commonwealth.

Small Businesses: Costs and Other Effects. Small business cemetery companies may incur minimal copying costs because they will be required to provide price lists and itemized cost statements to the likely small number of customers who are currently offered those lists but refuse them.

Small Businesses: Alternative Method that Minimizes Adverse Impact. There are likely no alternative methods that would both meet the Board's goal and further reduce costs.

Real Estate Development Costs. This regulatory action will likely have no effect on real estate development costs in the Commonwealth.

Legal Mandate.

General: The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order Number 17 (2014). Section 2.2-4007.04 requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the report should include but not be limited to:

• the projected number of businesses or other entities to whom the proposed regulation would apply,

• the identity of any localities and types of businesses or other entities particularly affected,

• the projected number of persons and employment positions to be affected,

• the projected costs to affected businesses or entities to implement or comply with the regulation, and

• the impact on the use and value of private property.

Small Businesses: If the proposed regulation will have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include:

• an identification and estimate of the number of small businesses subject to the proposed regulation,

• the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents,

• a statement of the probable effect of the proposed regulation on affected small businesses, and

• a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation.

Additionally, pursuant to § 2.2-4007.1, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules is notified at the time the proposed regulation is submitted to the Virginia Register of Regulations for publication. This analysis shall represent DPB's best estimate for the purposes of public review and comment on the proposed regulation.

Agency's Response to Economic Impact Analysis: The Cemetery Board concurs with the economic impact analysis conducted by the Department of Planning and Budget.

Summary:

Pursuant to Chapter 251 of the 2013 Acts of Assembly, the amendments require cemetery companies to provide a general price list and an itemized statement of charges for burial services to customers before contract execution and to obtain a signed acknowledgment of receipt from the customer.

18VAC47-20-220. Itemized statement and general price list of burial fees to be furnished.

Cemetery companies shall furnish a written general price list and a written itemized statement of goods and services they provide. This itemized statement shall include, but is not limited to, burial vaults and other burial receptacles, other merchandise, facilities used, and other professional services. Prices for merchandise may be stated as a range of values. Prices for services must be specific for each type of service, including any difference in prices based on the day or time the service is provided. This list shall be set forth in a clear and conspicuous manner.

The list shall be available to individuals inquiring in person about burial arrangements or the prices of property or services. In addition, upon beginning a discussion of burial arrangements or the selection of any property or services, the general price list shall be offered by the cemetery property.

Prior to execution of any contract, cemetery companies shall provide the general price list and itemized statement of goods and services to the individual or individuals entering the contract. The contract shall include an acknowledgment signed by the individual or individuals and the cemetery sales personnel stating the cemetery company provided the general price list and itemized statement of goods and services to the individual or individuals prior to the execution of the contract.