BILL ANALYSIS Ó
SB 658
Page 1
Date of Hearing: July 5, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
SB 658 (Negrete McLeod) - As Amended: June 23, 2011
SENATE VOTE : 23-14
SUBJECT : Licensed funeral establishments: price list: Internet
posting.
SUMMARY : Requires funeral establishments to make their general
price list (GPL) available by mail, facsimile, or electronic
mail; or to post that information on its Internet Web site
(website), as specified, by January 1, 2013. Specifically, this
bill :
1)Requires each licensed funeral establishment that maintains a
website to post their GPL, pursuant to federal rule in 12
point font, and a statement that the GPL is available upon
request.
2)Requires the employee or agent of the funeral establishment,
upon being contacted by a consumer by telephone inquiring
about prices, to inform the consumer that the establishment's
GPL is available and offer to provide the GPL by mail,
facsimile, or electronic mail.
3)Provides that if a funeral establishment posts, in no less
than 12 point font, on its website home page the words "price
information" with a link that leads to the establishment's GPL
do not need to comply with the requirements of 1) above.
4)States that nothing in this bill shall be construed to affect
an establishment's obligation under federal or state law
effective prior to January 1, 2013.
5)Makes technical changes.
EXISTING LAW :
1)Regulates licensed funeral establishments and requires that
they be operated by a licensed funeral director.
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2)Requires a funeral director to provide to any person, upon
beginning discussion of prices or of the funeral goods and
services offered, a GPL containing the price for professional
services, as specified.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "The
time is long past when in-person visits and telephone contacts
are the means by which consumers comparison shop. The original
version of this bill simply required that the same pricing
information that cemeteries and funeral establishments are
already required to provide to consumers be posted on their
website, if a website existed.
"In response to concerns expressed by opponents from the
industry, this bill now only requires that the establishment
post on the website the types of merchandise and services that
are on the GPL, and a statement that the GPL is available upon
request. By at least having the categories of services that are
included on the ÝGPL] beforehand, the consumer will be better
informed when making telephone or in-person inquiries of a
cemetery or funeral establishment. Consumers often have no
experience in this field when suddenly confronted with a need
for these services. Knowing beforehand some of the terminology
and types of services available will help the consumer have a
better informed conversation with the cemetery or funeral
establishment.
"In addition, this bill requires that if a telephone
conversation turns to pricing, that the establishment must offer
to send the GPL to the consumer by whatever means is convenient
to the establishment - mail, fax or email.
"Posting more information on funeral home websites is a
convenient and compassionate way to help grieving consumers make
an informed choice about one of their most expensive purchases
during the most difficult time in their lives."
Background . Funeral establishments are regulated in California
by the Cemetery and Funeral Bureau (Bureau) under the Department
of Consumer Affairs. The Bureau states, "The death of a loved
one is one of the most traumatic experiences any of us will ever
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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."
To ensure fairness and accuracy in shopping for an expensive
service in emotional circumstances, the GPL 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 ÝGPL] 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 GPL 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.
Author's amendment . This bill was heard by the Assembly
Business, Professions and Consumer Protection Committee on June
28, 2011, and was postponed to the next hearing to provide the
author the opportunity to work with the opposition. In response
to those negotiations, the author and opposition have agreed to
the amendments below:
1)Require the funeral establishment to post on its website a
list of funeral goods and services, but not prices, from its
GPL;
2)Delete the requirement for the employee or agent of the
funeral establishment, upon being contacted by a consumer by
telephone inquiring about prices, to inform the consumer that
the establishment's GPL is available and offer to provide the
GPL by mail, facsimile, or electronic mail.
3)Specify that if a funeral establishment posts, on its website
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home page the words "price information" or a similar phrase
that includes the word "price" with a link that leads to the
establishment's GPL, do not need to comply with the
requirements of 1) above.
Support . The AARP writes in support, "Consumers frequently have
difficulty obtaining reliable pricing information during one of
the most stressful periods of their lives. Some funeral,
cremation, and burial providers bill service and finance charges
that are unconscionably high and anticompetitive. Standardized
price information, which would allow comparisons among funeral
providers in a selected area, is not widely available to the
public. Funeral and cemetery costs can be one of the most
expensive service consumers ever purchase, and therefore are a
particular burden on older Californians living on fixed incomes.
"The FTC Funeral Rule has since 1984 required a detailed,
written price list be given to anyone who asks for the ÝGPL]
in-person. This measure simply requires the posting on-line of
information that federal law says must be given out to anyone
who asks for it."
Opposition . The California Funeral Directors Association writes
in opposition, "The decision as to whether or not the GPL should
be on an established website should be left up to the funeral
home itself. Funeral homes are not selling their product on the
Internet. It should be noted that funeral homes have very few
complaints, high customer loyalty and a prominent position in
the community.
"We strongly support a price list policy that educates the
consumer and allows them to take home a GPL for funeral services
for later review. However, we do not believe that the price
list itself should be on the Internet. As it was further
delineated in the federal rule, funeral homes do not have to
hand out the GPL immediately when someone walks into their
business, but they must offer the price list when they begin to
discuss the type of funeral or disposition that can be arranged,
specific goods and services that are offered and the price of
the goods and services."
REGISTERED SUPPORT / OPPOSITION :
Support
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AARP
Center for Public Interest Law
Congress of California Seniors
Funeral Consumers Alliance
Funeral Education Foundation
Opposition
California Funeral Directors Association
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301