BILL NUMBER: AB 1277 CHAPTERED 10/11/01 CHAPTER 715 FILED WITH SECRETARY OF STATE OCTOBER 11, 2001 APPROVED BY GOVERNOR OCTOBER 10, 2001 PASSED THE ASSEMBLY SEPTEMBER 13, 2001 PASSED THE SENATE SEPTEMBER 12, 2001 AMENDED IN SENATE SEPTEMBER 7, 2001 AMENDED IN SENATE AUGUST 28, 2001 AMENDED IN SENATE AUGUST 20, 2001 AMENDED IN SENATE JULY 9, 2001 AMENDED IN ASSEMBLY APRIL 30, 2001 INTRODUCED BY Assembly Member Cardenas FEBRUARY 23, 2001 An act to amend Sections 7685 and 7685.5 of, and to add Sections 7685.6 and 7735.5 to, the Business and Professions Code, relating to funeral directors. LEGISLATIVE COUNSEL'S DIGEST AB 1277, Cardenas. Funeral directors. Existing law, the Funeral Directors and Embalmers Law, provides for regulation of funeral directors and other licensees by the Cemetery and Funeral Bureau of the Department of Consumer Affairs. Existing law requires specified information to be included in a funeral establishment's price list, requires a consumer guide to be provided in certain situations, and prescribes penalties for violations of these and various other provisions. This bill would require that a statement be included on a funeral establishment's price list providing that the survivor of the deceased or the responsible party is entitled to receive a copy of any preneed funeral arrangement contract paid for by or on behalf of the deceased. The bill would require the Cemetery and Funeral Bureau to develop a form containing certain information that would be required to be provided to consumers by a funeral establishment prior to the drafting of a contract for funeral services. The bill would require this form to be signed and dated by the consumer and a representative of the funeral establishment. The bill would also require a funeral establishment to provide the consumer with a consumer guide for funeral and cemetery purchases prior to the drafting of a contract for funeral services. Because the bill would add additional requirements concerning preneed funeral arrangement contracts, the violation of which is a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 7685 of the Business and Professions Code is amended to read: 7685. (a) Every funeral director shall provide to any person, upon beginning discussion of prices or of the funeral goods and services offered, a written or printed list containing but not necessarily limited to the price for professional services offered, which may include the funeral director's services, the preparation of the body, the use of facilities, and the use of automotive equipment. All services included in this price or prices shall be enumerated. (b) The list shall also include a statement indicating that the survivor of the deceased who is handling the funeral arrangements, or the responsible party, is entitled to receive, prior to the drafting of any contract, a copy of any preneed agreement that has been signed and paid for, in full or in part, by or on behalf of the deceased, and that is in the possession of the funeral establishment. (c) The funeral director shall also provide a statement on that list that gives the price range for all caskets offered for sale. The funeral director shall also provide a written statement or list that, at a minimum, specifically identifies a particular casket or caskets by price and by thickness of metal, or type of wood, or other construction, interior and color, in addition to other casket identification requirements under Title 16, Code of Federal Regulations, Part 453 and any subsequent version of this regulation, when a request for specific information on a casket or caskets is made in person by any individual. Prices of caskets and other identifying features such as thickness of metal, or type of wood, or other construction, interior and color, in addition to other casket identification requirements required to be given over the telephone by Title 16, Code of Federal Regulations, Part 453 and any subsequent version of this regulation, shall be provided over the telephone, if requested. SEC. 2. Section 7685.5 of the Business and Professions Code is amended to read: 7685.5. (a) The bureau shall make available to funeral establishments and cemetery authorities a copy of a consumer guide for funeral and cemetery purchases for purposes of reproduction and distribution. The funeral and cemetery guide that is approved by the bureau, in consultation with the funeral and cemetery industries and any other interested parties, shall be made available in printed form and electronically through the Internet. (b) A funeral establishment shall prominently display and make available to any individual who, in person, inquires about funeral or cemetery purchases, a copy of the consumer guide for funeral and cemetery purchases, reproduced as specified in subdivision (a). (c) Prior to the drafting of a contract for funeral services, the funeral establishment shall provide, for retention, the consumer with a copy of the consumer guide for funeral and cemetery purchases described in subdivisions (a) and (b). SEC. 3. Section 7685.6 is added to the Business and Professions Code, to read: 7685.6. (a) Every funeral establishment, prior to drafting any contract for funeral goods or services, shall present to the survivor of the deceased who is handling the funeral arrangements, or the responsible party, a statement disclosing whether or not the funeral establishment has any preneed agreement made by or on behalf of the deceased. If the funeral establishment has a preneed agreement made by or on behalf of the deceased, the statement shall also declare the establishment's compliance with Section 7745. The disclosure statement shall be signed and dated by the representative of the funeral establishment and by the survivor or responsible party. The completed disclosure statement shall be retained by the funeral establishment for a period of time determined by the bureau, and a copy shall be given to the survivor or responsible party. (b) The bureau shall develop a form, in consultation with the funeral industry and any other interested parties, that is separate and distinct from other forms, upon which the disclosure statement shall be made. The bureau shall make the form available to funeral establishments for purposes of reproduction and distribution, and the form shall also be available electronically through the Internet. The form shall be simple and easy to read and shall include all of the following: (1) The definition of a preneed arrangement, adopted by the bureau by regulation. (2) A statement of the funeral establishment's responsibilities under Section 7745. (3) Information about how the consumer may contact the bureau for more information or how to file a complaint against a licensee. (c) A violation of this section constitutes grounds for disciplinary action. (d) This section shall become operative July 1, 2002. SEC. 4. Section 7735.5 is added to the Business and Professions Code, to read: 7735.5. The preneed funeral arrangement contract shall clearly state if benefits are unavailable or limited for any reason. SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.