The government has prepared a new Draft Law on Communal Economy. SDP parliamentary representative Marko Vešligaj stated that a multitude of laws are inconsistent with this law, and although he was not specific, we will demonstrate using the example of funeral companies (which include communal companies) that the law will not resolve anything if it is not harmonized with others.
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We wrote about the problem of funeral companies and communal companies that create (dis)loyal competition for them a year and a half ago, but it seems that the law’s proposer (the government) has not learned any lessons from the whole story. Namely, according to the current Law on Funeral Activities (Article 28), the provisions of Articles 3, 10, and 20 of the Law on Communal Economy concerning the transportation of the deceased have ceased to be valid, clearly stating that communal companies do not have the right to perform that activity.
There is no ‘communal company’
These changes have also been included in the Law on Communal Economy, which is still in force, and in which (in Article 3) the services of communal companies are listed exhaustively. It is not stated there that communal companies engage in funeral activities. (This was removed with the enactment of the Law on Funeral Activities.) Therefore, in this sense, these two laws are harmonized, which is why it is really unclear why the new law on communal economy will also deal with whether communal companies will have to reduce funeral services when it is clearly stated in the aforementioned two laws that all those services are being abolished for them.
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Namely, according to the government’s proposal, a public funeral company will only be able to perform burials, while all other services will be taken over by funeral companies (transportation, sale of funeral equipment, floristry, construction of graves, stone-cutting services, and more). Or is it something else, i.e., as if we are returning to old provisions that have already been removed. Despite the legal prohibition, communal companies have continued to perform these jobs without hindrance. They cited as a reason that no law in Croatia recognizes the term ‘communal company’ and that they are actually commercial companies that engage in both communal and other businesses for which they are registered. As commercial companies, communal companies found a loophole in the law by referring to the Law on Commercial Companies (which, accordingly, applies to them) claiming that they can register for any activity, including funeral services. Therefore, when the two laws (on funeral activities and the current one on communal economy) did not suit them, communal companies found an exit in the third one – the Law on Commercial Companies. And now we come to the key issue.
