SB989 amends Virginia’s funeral services law to create and define a new term, “declinable preneed funeral guarantee fee.” The bill allows a funeral provider, if it chooses to offer the fee, to charge an optional amount agreed to by the purchaser of a preneed funeral contract so that the cost of the contracted supplies and services is guaranteed. The fee is capped at 25 percent of the guaranteed contract price, must be refundable if the purchaser cancels within 30 days, cannot be treated as a finance fee, and must be disclosed on the general price list.
The bill also directs the Board of Funeral Directors and Embalmers to revise its regulations so that these fees are used only to guarantee the cost of the preneed supplies and services described in the contract. In practical terms, the measure clarifies how funeral homes may structure and disclose preneed pricing and how consumers may pay for price guarantees in advance of death.
Impact
SB989 changes the definitions section of Title 54.1 governing funeral services and preneed funeral contracts in Virginia. It adds a statutory definition for declinable preneed funeral guarantee fees and imposes specific limits and disclosure requirements on those fees, while also requiring the Board of Funeral Directors and Embalmers to conform its regulations to the new definition. The bill affects funeral service providers, preneed contract purchasers, and the regulatory board overseeing funeral establishments and related practices.
Sentiment
The bill appears to have been received favorably and with little opposition. It passed the Senate and House overwhelmingly, including unanimous or near-unanimous committee and floor votes, suggesting broad bipartisan support for the consumer-protection and regulatory-clarification aspects of the measure. The available voting history shows strong agreement across both chambers.
Contention
The main policy issue is how to regulate optional preneed guarantee fees without allowing them to function as hidden finance charges or to be used for purposes beyond guaranteeing contracted funeral goods and services. Any concern would likely come from balancing consumer transparency and affordability against funeral providers’ flexibility in pricing and guaranteeing future costs. The recorded votes show only limited dissent at the subcommittee stage, indicating that any disagreement was narrow and largely resolved before final passage.