BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 658|
          |Office of Senate Floor Analyses   |                         |
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                              UNFINISHED BUSINESS


          Bill No:  SB 658
          Author:   Negrete McLeod (D)
          Amended:  7/7/11
          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

           SENATE FLOOR  :  23-14, 5/12/11
          AYES:  Alquist, Blakeslee, Corbett, Correa, De León, 
            DeSaulnier, Evans, Hancock, Hernandez, Kehoe, Leno, Lieu, 
            Liu, Lowenthal, Negrete McLeod, Padilla, Price, Rubio, 
            Simitian, Steinberg, Vargas, Wolk, Wright
          NOES:  Anderson, Berryhill, Cannella, Dutton, Emmerson, 
            Fuller, Gaines, Harman, Huff, La Malfa, Runner, 
            Strickland, Walters, Wyland
          NO VOTE RECORDED:  Calderon, Pavley, Yee

           ASSEMBLY FLOOR  :  72-0, 09/01/11 - See last page for vote


           SUBJECT  :    Licensed funeral establishments:  price list:  
          Internet posting

           SOURCE  :     Center for Public Interest Law


           DIGEST  :    This bill requires funeral establishments to 
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          make their general price list available by mail, facsimile, 
          or electronic mail, or to post that information on its 
          Internet Web site, as specified, by January 1, 2013. 

           Assembly Amendments  revise and recast the bill with similar 
          intent as it left the Senate.

           ANALYSIS  :    

          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. 

          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.


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          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:

          1. Requires each licensed funeral establishment that 
             maintains a Web site to post their list of funeral goods 
             and services that are required to be included in their 
             general price list, and a statement that the general 
             price list is available upon request. 

          2. Requires the information in #1 above be provided by a 
             link from their home page.
           
          3. Provides that if a funeral establishment posts on its 
             Web site home page the words "price information" or a 
             similar phrase that includes the word "price" with a 
             link that leads to the establishment's general price 
             list do not need to comply with the requirements of #1 
             and #2 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.
           
          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.


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            "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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

           SUPPORT  :   (Verified  9/1/11)

          Center for Public Interest Law (source)
          AARP
          California Alliance for Retired Americans
          Congress of California Seniors

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          Consumer Federation of California
          Funeral Consumers Alliance
          SCI California Funeral Services

           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.


           ASSEMBLY FLOOR  :  72-0, 09/01/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Conway, Cook, Dickinson, Eng, Feuer, 
            Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, 
            Garrick, Gatto, Grove, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, 
            Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, 
            Mendoza, Miller, Mitchell, Monning, Nestande, Nielsen, 
            Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, 
            Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Bonilla, Davis, Donnelly, Gordon, 
            Gorell, Jeffries, Mansoor, Morrell


          JJA:mw  9/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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