S.L. 1967-1197

NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

CHAPTER 1197

HOUSE BILL 1030

AN ACT AMENDING ARTICLE 24 OF CHAPTER 58 OF THE GENERAL STATUTES RELATING TO MUTUAL BURIAL ASSOCIATIONS.

The General Assembly of North Carolina do enact:

Section 1. Article 24 of Chapter 58 of the General Statutes is amended by adding a new Section thereto, immediately following G.S. 58-224, to be designated as G.S. 58-224.1 and reading as follows:

"G.S. 58-224.1. North Carolina Mutual Burial Association Commission; Membership; Election; Duties. There is hereby created the North Carolina Mutual Burial Association Commission to be composed of five members.

"(1) Initial Commission. The members of the initial Commission shall be elected and chosen as follows:

"(a) The North Carolina Burial Association Commissioner, the President and Vice President of the North Carolina Funeral Directors Association shall unanimously select the names of four persons who are members of said Association and are mutual burial association officers. The four names so selected shall be printed on a ballot by the Commissioner and one ballot mailed to each burial association operator in the State who is or would be eligible to join said Association. No burial association operator shall be entitled to more than one ballot. Each operator shall vote for two names on the ballot and shall return the ballot by posting same in the mail on or before November 15, 1967, to the Burial Association Commissioner. The two persons receiving the highest number of votes shall be deemed elected to the Commission. The person receiving the highest number of votes shall serve for a term of five years and the person receiving the second highest number of votes shall serve for two years. If less than two or more than two persons are voted for, the ballot shall be void. The names of persons may be 'written in' on the ballot. In case of a tie, the winner shall be chosen by lot, unless the two persons receiving the greatest number of votes tie, in which case both shall be deemed elected and the person to serve the five-year term on the Commission shall be chosen by lot.

"(b) The North Carolina Burial Association Commissioner, the President and Vice President of the Funeral Directors and Morticians Association of North Carolina shall unanimously select the names of two persons who are members of said Association and are mutual burial association officers. The names of the two persons so selected shall be printed on a ballot by the Commissioner and one ballot mailed by him to each burial association operator in the State who is or would be eligible to join said Association. No burial association operator shall be entitled to more than one vote. Each operator shall vote for one name on the ballot and shall return the ballot by mail by posting same on or before November 15, 1967, to the Burial Association Commissioner. The person receiving the highest number of votes shall be deemed elected to the Commission and shall serve for a term of four years. The name of a person may be 'written in' on a ballot. In case of a tie vote, the winner shall be selected by lot.

"(c) The North Carolina Burial Association Commissioner, the President and Vice President of the North Carolina Perpetual Care Cemetery Association shall unanimously select the names of two persons who are members of said Association and are perpetual care cemetery operators. The names of the two persons so selected shall be printed on a ballot by the Commissioner and one ballot mailed by him to each perpetual care cemetery operator in the State. Each operator shall vote for one name on the ballot and shall return the ballot by mail to the Commissioner by posting same on or before November 15, 1967. No operator shall be entitled to more than one vote. The name of a person may be 'written in' on a ballot. The person receiving the highest number of votes shall be deemed elected to the Commission and shall serve for a term of one year. In case of a tie, the winner shall be selected by lot.

"(d) One member of the Commission shall be a citizen of North Carolina, who is a member of a Mutual Burial Association authorized by this Article. He shall be appointed by the Governor and shall serve for a term of three years.

"(e) In the event of a vacancy on the initial Commission by resignation, death, or otherwise, a successor to serve for the unexpired term shall be chosen within 90 days of the occurrence of the vacancy in the same manner as that used to elect or appoint the member of the Commission whose seat is vacant.

"(f) At any time between November 20, 1967 and November 25, 1967, the Burial Association Commissioner, at his office in Raleigh, shall, in the presence of the President of the North Carolina Funeral Directors Association, the President of the Funeral Directors and Morticians Association of North Carolina, and the President of the North Carolina Perpetual Care Cemetery Association, or any person by them designated in their stead, open and tabulate all ballots received pursuant to this Section. The results of the election shall be mailed to any person requesting same and shall be published in at least three newspapers having, in the opinion of the Commissioner, general circulation in the area they serve.

"(g) All initial members of the Commission shall take office on the first Monday in December 1967, and shall serve until their successors are elected or appointed (as the case may be) and qualified.

"(2) After the terms of the initial members of the Commission or their successors to serve unexpired terms, have expired, all five members of the Commission shall serve for a term of five years and shall be elected or appointed, as the case may be, as follows:

"(a) At least 90 days prior to the expiration of the term of the Commission member who was elected pursuant to the provisions of Section (1)(a) or (1)(e), the persons who were eligible to vote under the provisions of Section (1)(a) shall nominate and elect a successor, under such rules and regulations as they shall determine, as approved by the North Carolina Burial Commission, provided that all mutual burial association operators shall be entitled to vote. The person so elected shall be certified to the Burial Association Commissioner by the President of the North Carolina Funeral Directors Association as qualifying under the requirements of Section (1)(a).

"(b) At least 90 days prior to the expiration of the term of the Commission member who was elected pursuant to the provisions of Section (1)(b) or (1)(e), the persons who were eligible to vote under the provisions of Section (1)(b) shall nominate and elect a successor, under such rules and regulations as they shall determine; as approved by the North Carolina Burial Commission, provided that all mutual burial operators shall be entitled to vote. The person so elected shall be certified to the Burial Association Commissioner by the President of the Funeral Directors and Morticians Association of North Carolina as qualifying under the requirement of Section (1)(b).

"(c) At least 90 days prior to the expiration of the term of the Commission member who was elected pursuant to the provisions of Section (1)(c) or (1)(e), the persons who were eligible to vote under the provisions of Section (1)(c) shall nominate and elect a successor under such rules and regulations as they shall determine; as approved by the North Carolina Burial Commission, provided that, all perpetual care cemetery operators in North Carolina shall be entitled to vote. The person so elected shall be certified to the Burial Association Commissioner by the President of the North Carolina Perpetual Care Cemetery Association as qualifying under the requirements of Section (1)(c).

"(d) In the event that any association, entitled by the provisions of this Article to representation on the North Carolina Mutual Burial Association Commission, shall fail to select by November 1 of the year of the expiring term, persons for the election to membership on the Commission, the Commissioner may declare the seat vacant and appoint, from the appropriate association, any person or persons to serve the term of the vacant seat(s).

"(e) Any vacancy on the Commission, other than on the initial Commission, as provided in Section (1)(e), shall be filled by election by the appropriate organization within 90 days of the vacancy, or by appointment of the Governor, as the case may be, such election or appointment to be for the unexpired term.

"(f) Other than the initial Commission, no member may be elected for two successive terms.

"(3) All members of the Commission, before assuming the duties of their office, shall take an oath for the faithful performance of their duties."

Sec. 2. Article 24 of Chapter 58 is further amended by adding a new Section to be designated as G.S. 58-224.2 and reading as follows:

"G.S. 58-224.2. Duties of Commission; Meetings; Burial Commissioner; Secretary. It shall be the duty of the North Carolina Mutual Burial Commission to supervise, pursuant to this Article, all burial associations authorized by this Article to operate in North Carolina, to determine that such associations are operated in conformity with this Article and pursuant to the rules and regulations of the Commission adopted pursuant to this Article; to assist the Commissioner with prosecution of violations of this Article or rules and regulations adopted pursuant thereto; to counsel with and advise the Burial Association Commissioner in the performance of his duties and to protect the interests of members of mutual burial associations.

"The Burial Association Commissioner, with the consent of the Commission, and after a public hearing, may promulgate reasonable rules and regulations for the enforcement of this Article and in order to carry out the intent thereof. The Commission is authorized and directed to adopt specific rules and regulations to provide for the orderly transfer of a member's benefits in merchandise and services from the official funeral director of the member's association to the official funeral director of any other mutual burial association in good standing under the provisions of this Article.

"The Commission shall elect its own Chairman, who shall vote only when the Commission is evenly divided.

"The Commission shall hold regular meetings at least twice each year, and more often if called by the Commissioner, in Raleigh, or such place in North Carolina as the Commissioner may direct. Special meetings of the Commission may also be called in Raleigh, or such other place in North Carolina as they may direct, by a majority of the Commission.

"The Burial Association Commissioner shall serve as Secretary of the Commission and shall keep minutes of all regular and special meetings.

"All regular or special meetings of the Commission, unless a majority of the members of the Commission vote otherwise, shall be open to the public. All regular meetings shall be advertised in at least three newspapers having inter-county circulation in North Carolina.

"Members of the Commission shall receive, when attending such regular or special meetings, such per diem, expense allowance and travel allowance as are allowed other Commissions and Boards of the State. The legal advisor to the Commission shall be entitled to actual expenses when attending regular or special meetings of the Commission held other than in Raleigh. All expenses of the Commission shall be paid from funds coming to the Commissioner pursuant to this Article."

Sec. 3. G.S. 58-225 is hereby repealed.

Sec. 4. Article 2 of G.S. 58-226 is rewritten to read as follows:

"Article 2. The objects and purposes for which this association is formed and the purposes for which it has been organized, and the methods and plan of operation of any association already organized, shall be to provide a plan for each member of this association for the payment of one funeral benefit for each member, which benefit shall consist of a funeral in merchandise and service, with no free embalming or free ambulance service included in such benefits; and in no case shall any cash be paid. No other free service or any other thing free shall be held out, promised or furnished, in any case. Such funeral benefit shall be in the amount of one hundred dollars ($100.00) of merchandise and service, without free embalming or free ambulance service, for persons of the age of 10 years and over, or in the amount of fifty dollars ($50.00) for persons under the age of 10 years; provided, however, that any member of any association may purchase a double benefit (for a total benefit of two hundred dollars ($200.00)); however, any additional benefit shall be based on the assessment rate, as provided in Article 6 of this Section, at the attained age of applicant at the time the double benefit takes effect. The purchase of a double benefit shall not be available to any member who cannot fulfill the requirements as set forth in Article 3 of this Section, excluding the payment of the twenty-five cents (25¢) membership fee. Any funeral director who sells or promotes the sale of a membership shall provide a funeral at a cost of the face amount of the policy, or give credit in the amount of the face value on such funeral as may be selected by the family of the member of the association."

Sec. 5. G.S. 58-235 is rewritten in its entirety to read as follows:

"G.S. 58-235. Free Services; Failure to Make Proper Assessments, Etc., Made a Misdemeanor. Any person or persons who offer free funeral services or free embalming, free ambulance service or any other thing free of charge, acting for any burial association, directly or indirectly, or who so acting shall in any way fail to assess for the amount needed to pay death losses and allowable expenses, shall be guilty of a misdemeanor and upon conviction shall be fined not less than two hundred fifty dollars ($250.00) or imprisoned for not less than 12 months, or both, in the discretion of the court."

Sec. 6. All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 7. This Act shall be in full force and effect from and after ratification.

In the General Assembly read three times and ratified, this the 6th day of July, 1967.