BILL ANALYSIS Ó
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|Hearing Date:April 4, 2011 |Bill No:SB |
| |658 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Curren D. Price, Jr., Chair
Bill No: SB 658Author:Negrete McLeod
As Introduced: February 18, 2011 Fiscal: Yes
SUBJECT: Licensed funeral establishments: price list: Internet
posting
SUMMARY: Requires each funeral establishment that maintains an
Internet Website to post on its Website its general price list and
casket price list; requires the information to be accessible through a
link, conspicuously located on the home page of the Internet Website.
Existing law:
1)Licenses and regulates funeral establishments, funeral directors,
embalmers, crematories, crematory managers, cemeteries, cemetery
managers, cemetery brokers, cemetery salespersons, and cremated
remains disposers by the Cemetery and Funeral Bureau (Bureau) within
the Department of Consumer Affairs.
2)Requires a funeral establishment to at all times employ a licensed
funeral director to manage, direct, or control its business or
profession. (Business and Professions Code (BPC) § 7616.2)
3)Requires every funeral director to provide to any person, upon
beginning discussion of prices or of the funeral goods and services
offered, a written or printed list (general price list). The
general price list must contain: (BPC § 7685)
a) 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 must be enumerated.
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b) A statement that the person handling the funeral arrangements
is entitled to receive, prior to drafting a 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.
c) A statement that gives the price range for all caskets offered
for sale.
4)Requires the funeral director to provide a written statement or list
that identifies caskets (casket price list) by price, and
description, as specified, when a request for specific information
on a casket or caskets is made in person by any individual. (BPC §
7685)
a) Requires the casket price and description information to be
given over the telephone, if requested.
This bill:
1) Requires each funeral establishment that maintains an Internet
Website to post on its Internet Website its general price list and
casket price list, as specified.
2) Requires the information posted to be accessible through a link,
marked "prices for services" conspicuously located on the home page
of the Internet Website.
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1. Purpose. This bill is sponsored by Center for Public Interest Law
(Sponsor) to require that funeral homes, if they already have a
Website, to post on this website their price sheet (which they are
already required by law to provide to consumers).
The Author states:
"Shopping for funeral services often occurs immediately
following the death of a loved one. It is already a very
difficult time for someone who is grieving their loss, and a
funeral is one of the most expensive purchases a consumer will
make. Given that existing law already requires funeral
establishments to provide a price list to consumers, it would
greatly ease the ability of consumers to find the right funeral
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home if this same price list were posted on the funeral
establishment's Website."
2. Background. Funeral establishments are closely regulated in
California. The Website of the Department of Consumer Affairs
Cemetery and Funeral Bureau explains why:
"The death of a loved one is one of the most traumatic
experiences any of us will ever have . . . By asking the right
questions, comparing prices and services, and making informed
decisions, you can make arrangements that are meaningful to your
family and control the costs for yourself and your survivors."
"Funerals rank among the most expensive purchases many consumers
will ever make. A traditional funeral, including a casket and
vault, costs about $6,000, although 'extras' like flowers,
obituary notices, acknowledgment cards or limousines can add
thousands of dollars to the bottom line. Many funerals run well
over $10,000."
Furthermore, these enormous expenses are made during a time of
unparalleled emotional stress, even trauma.
To ensure fairness and accuracy in shopping for an expensive service
in emotional circumstances, the general price list required by
Federal Trade Commission (FTC) Funeral Rule since 1984 requires a
detailed, written price list be given to anyone who asks for the
list in person:
"The request for Ýpricing] information does not have to come
from a consumer or someone who wants to make funeral
arrangements now or in the future. You must give a Ýgeneral
price list] to all persons who inquire about funeral
arrangements. This may include competitors, journalists, and
representatives of businesses, religious societies, government
agencies, or consumer groups."
California law largely reflects the FTC Funeral Rule by requiring
the funeral establishment to give its general price list to those
who inquire about funeral arrangements, as well as requiring the
funeral establishment to give a casket price list when an
individual asks for casket information in person.
Both the FTC Funeral Rule and California law require that prices
must also be quoted over the phone.
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3. Arguments in Support. In sponsoring the bill, the Center for
Public Interest Law , argues that the time is long past when
in-person visits and telephone contacts are the means by which
consumers comparison shop. This bill seeks to update current law
by ensuring that if a funeral establishment elects to have a
Website, the price information already required to be provided to
consumers by California law when the consumer shows up in person is
also posted on the establishment's Website.
The Sponsor indicates that ensuring that the pricing information
funeral establishments already have, are already required to
provide over the phone, and are already required to provide to
anyone - even their competitors - in person, is posted on their
Websites is a convenient and compassionate way to aid grieving
consumers in making an informed choice about one of their most
expensive purchases during the most difficult time in their lives.
4. Prior Legislation. AB 1277 (Cardenas, Chapter 715, Statutes of
2001), required a funeral establishment to place a statement on its
price list which indicates that survivors of the deceased are
entitled to a copy of any preneed funeral arrangement made by the
deceased before his or her death. The bill further required the
Bureau to create a form for use by funeral establishments that
provides certain specified information to consumers and requires
the consumer to affirmatively acknowledge receipt of that
information.
5. Clarifying Amendment. Since a funeral establishment's general
price list and casket price list includes, not only the prices for
services but also the prices for goods, Committee staff recommends
the following clarifying amendment on page 3, lines 1-3:
(2) Information posted pursuant to paragraph (1) shall be
accessible through a link, marked "prices for goods and
services," conspicuously located on the home page of the
Internet Website.
6. Correcting Amendments. Committee staff recommends a technical
amendment to correct a drafting error made by AB 1277 (Cardenas,
Chapter 715, Statutes of 2001). That bill recast Section 7685 into
three paragraphs, inserting the requirement for the preneed funeral
agreement statement. In making that amendment, the requirement to
list the casket price range was placed in the wrong paragraph.
Staff recommends the following amendments:
On page 2, at the end of line 10, insert:
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The funeral director shall also provide a statement on that list
that gives the price range for all caskets offered for sale.
On page 2, lines 19 and 20, strike out:
The funeral director shall also provide a statement on that list
that gives the price range for all caskets offered for sale.
SUPPORT AND OPPOSITION:
Support:
Center for Public Interest Law (Sponsor)
Opposition:
None received as of March 30, 2011.
Consultant:G. V. Ayers