BILL ANALYSIS Ó ----------------------------------------------------------------------- |Hearing Date:April 4, 2011 |Bill No:SB | | |658 | ----------------------------------------------------------------------- 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. SB 658 Page 2 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 SB 658 Page 3 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. SB 658 Page 4 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: SB 658 Page 5 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