BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 658| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 658 Author: Negrete McLeod (D) Amended: 4/6/11 Vote: 21 SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 5-3, 4/4/11 AYES: Price, Corbett, Correa, Hernandez, Vargas NOES: Emmerson, Walters, Wyland NO VOTE RECORDED: Negrete McLeod SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Licensed funeral establishments: price list: Internet posting SOURCE : Center for Public Interest Law DIGEST : This bill requires each funeral establishment that maintains an Internet Web site to post on its Web site its general price list and casket price list, and requires the information to be accessible through a link, conspicuously located on the home page of the Internet Web site. This bill requires a funeral director to provide a statement that makes the price range for all caskets offered for sale explicit. ANALYSIS : Existing law: CONTINUED SB 658 Page 2 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. 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: 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. B. The funeral director shall provide a statement on that list that gives the price range for all caskets offered for sale. C. 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. 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(s) is made in person by any individual. 5. Requires the casket price and description information to be given over the telephone, if requested. This bill: CONTINUED SB 658 Page 3 1. Requires each funeral establishment that maintains an Internet Web site to post on its Internet Web site 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 Web site. Background . Funeral establishments are closely regulated in California. The Web site 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." CONTINUED SB 658 Page 4 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 5/2/11) Center for Public Interest Law (source) Consumer Federation of California Funeral Consumers Alliance 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 Web site, 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 Web site. 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 Web sites 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. CTW:mw 5/2/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED SB 658 Page 5 CONTINUED