SF 2686

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to health; establishing requirements for the 
  1.3             sale of funeral goods and services and preneed funeral 
  1.4             arrangements; modifying the enforcement authority of 
  1.5             the commissioner of health; prohibiting certain 
  1.6             solicitations of sales by funeral providers; requiring 
  1.7             certain disclosures by funeral providers; prohibiting 
  1.8             certain deceptive acts and practices for funeral 
  1.9             providers; establishing requirements for preneed 
  1.10            funeral agreements; amending Minnesota Statutes 1998, 
  1.11            sections 149A.02, subdivision 23, and by adding 
  1.12            subdivisions; 149A.08, subdivision 1; 149A.70, by 
  1.13            adding subdivisions; 149A.71, subdivisions 2 and 4; 
  1.14            149A.73, subdivision 3; and 149A.97, subdivision 6, 
  1.15            and by adding subdivisions; proposing coding for new 
  1.16            law in Minnesota Statutes, chapter 149A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1998, section 149A.02, is 
  1.19  amended by adding a subdivision to read: 
  1.20     Subd. 3a.  [BURIAL SITE GOODS AND SERVICES.] "Burial site 
  1.21  goods and services" means all goods and services provided at a 
  1.22  burial site that are associated with the final disposition of a 
  1.23  dead human body. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 149A.02, 
  1.25  subdivision 23, is amended to read: 
  1.26     Subd. 23.  [FUNERAL SERVICES.] "Funeral services" means any 
  1.27  services which may be used to:  (1) care for and prepare dead 
  1.28  human bodies for burial, cremation, or other final 
  1.29  disposition; and or (2) arrange, supervise, or conduct the 
  1.30  funeral ceremony or the final disposition of dead human bodies. 
  1.31     Sec. 3.  Minnesota Statutes 1998, section 149A.02, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 33a.  [PRENEED CONSUMER.] "Preneed consumer" means an 
  2.3   individual who arranges for funeral goods or services prior to 
  2.4   the death of that individual or another individual, and who 
  2.5   funds those goods or services through prepayment to a funeral 
  2.6   provider or through purchase of an insurance policy. 
  2.7      Sec. 4.  Minnesota Statutes 1998, section 149A.08, 
  2.8   subdivision 1, is amended to read: 
  2.9      Subdivision 1.  [AUTHORIZATION.] In addition to any other 
  2.10  remedy provided by law, the commissioner may issue a cease and 
  2.11  desist order to: 
  2.12     (1) stop a person from violating or threatening to violate 
  2.13  any law, rule, order, stipulation agreement, settlement, 
  2.14  compliance agreement, license, or permit which the commissioner 
  2.15  is empowered to regulate, enforce, or issue; or 
  2.16     (2) prohibit a funeral provider from engaging in the sale 
  2.17  of preneed funeral goods or funeral services if the funeral 
  2.18  provider has been found in violation of any provision of this 
  2.19  chapter. 
  2.20     Sec. 5.  Minnesota Statutes 1998, section 149A.70, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 5a.  [SOLICITATIONS PROHIBITED IN CERTAIN 
  2.23  SITUATIONS.] No funeral provider may directly or indirectly: 
  2.24     (1) call upon an individual at a grave site or in a 
  2.25  hospital, nursing home, hospice, or similar institution or 
  2.26  facility for the purpose of soliciting the sale of funeral goods 
  2.27  or funeral services or for the purpose of making arrangements 
  2.28  for a funeral or the final disposition of a dead human body, 
  2.29  without a specific request for solicitation from that 
  2.30  individual; 
  2.31     (2) solicit the sale of funeral goods or services from an 
  2.32  individual whose impending death is readily apparent, without a 
  2.33  specific request for solicitation from that individual; or 
  2.34     (3) engage in telephone solicitation of an individual who 
  2.35  has the right to control the final disposition of a dead human 
  2.36  body within ten days after the death of the individual whose 
  3.1   body is being disposed. 
  3.2      Sec. 6.  Minnesota Statutes 1998, section 149A.70, is 
  3.3   amended by adding a subdivision to read: 
  3.4      Subd. 8.  [DISCLOSURE OF OWNERSHIP AND SALE.] All funeral 
  3.5   establishments and funeral providers must clearly state by whom 
  3.6   they are owned in all advertisements and on all business 
  3.7   literature, correspondence, and contracts.  Within 15 days of a 
  3.8   change in ownership of a funeral establishment or funeral 
  3.9   provider, the funeral establishment or funeral provider shall 
  3.10  notify all preneed consumers by first class mail of the change 
  3.11  in ownership.  The notification shall advise the preneed 
  3.12  consumers of their right to transfer all preneed trust funds to 
  3.13  a new funeral provider and shall advise all preneed consumers 
  3.14  who have revocable preneed trusts of their right to terminate 
  3.15  the trust and receive a refund of all principal paid into the 
  3.16  trust, plus interest accrued. 
  3.17     Sec. 7.  Minnesota Statutes 1998, section 149A.71, 
  3.18  subdivision 2, is amended to read: 
  3.19     Subd. 2.  [PREVENTIVE REQUIREMENTS.] (a) To prevent unfair 
  3.20  or deceptive acts or practices, the requirements of this 
  3.21  subdivision must be met. 
  3.22     (b) Funeral providers must tell persons who ask by 
  3.23  telephone about the funeral provider's offerings or prices any 
  3.24  accurate information from the price lists described in 
  3.25  paragraphs (c) to (e) and any other readily available 
  3.26  information that reasonably answers the questions asked. 
  3.27     (c) Funeral providers must make available for viewing to 
  3.28  people who inquire in person about the offerings or prices of 
  3.29  funeral goods or funeral services, separate printed or 
  3.30  typewritten price lists.  Each funeral provider must have a 
  3.31  separate price list for each of the following types of goods and 
  3.32  services that are sold or offered for sale: 
  3.33     (1) caskets; 
  3.34     (2) alternative containers; 
  3.35     (3) outer burial containers; and 
  3.36     (4) cremation containers and cremated remains containers; 
  4.1   and 
  4.2      (5) cemetery-specific goods and services, including all 
  4.3   goods and services associated with interment and burial site 
  4.4   goods and services. 
  4.5      (d) Each separate price list must contain the name of the 
  4.6   funeral provider's place of business and a caption describing 
  4.7   the list as a price list for one of the types of funeral 
  4.8   goods or funeral services described in paragraph (c), clauses 
  4.9   (1) to (4) (5).  The funeral provider must offer the list upon 
  4.10  beginning discussion of, but in any event before showing, the 
  4.11  specific funeral goods or services and must provide a photocopy 
  4.12  of the price list, for retention, if so asked by the consumer.  
  4.13  The list must contain, at least, the retail prices of all the 
  4.14  specific funeral goods and services offered which do not require 
  4.15  special ordering, enough information to identify each, and the 
  4.16  effective date for the price list.  In lieu of a written price 
  4.17  list, other formats, such as notebooks, brochures, or charts may 
  4.18  be used if they contain the same information as would the 
  4.19  printed or typewritten list, and display it in a clear and 
  4.20  conspicuous manner.  However, funeral providers are not required 
  4.21  to make a specific price list available if the funeral providers 
  4.22  place the information required by this paragraph on the general 
  4.23  price list described in paragraph (e). 
  4.24     (e) Funeral providers must give a printed or typewritten 
  4.25  price list, for retention, to persons who inquire in person 
  4.26  about the funeral goods or funeral services or prices offered by 
  4.27  the funeral provider.  The funeral provider must give the list 
  4.28  upon beginning discussion of either the prices of or the overall 
  4.29  type of funeral service or disposition or specific funeral goods 
  4.30  or funeral services offered by the provider.  This requirement 
  4.31  applies whether the discussion takes place in the funeral 
  4.32  establishment or elsewhere.  However, when the deceased is 
  4.33  removed for transportation to the funeral establishment, an 
  4.34  in-person request for authorization to embalm does not, by 
  4.35  itself, trigger the requirement to offer the general price 
  4.36  list.  If the provider, in making an in-person request for 
  5.1   authorization to embalm, discloses that embalming is not 
  5.2   required by law except in certain special cases, the provider is 
  5.3   not required to offer the general price list.  Any other 
  5.4   discussion during that time about prices or the selection of 
  5.5   funeral goods or funeral services triggers the requirement to 
  5.6   give the consumer a general price list.  The general price list 
  5.7   must contain the following information: 
  5.8      (1) the name, address, and telephone number of the funeral 
  5.9   provider's place of business; 
  5.10     (2) a caption describing the list as a "general price 
  5.11  list"; 
  5.12     (3) the effective date for the price list; 
  5.13     (4) the retail prices, in any order, expressed either as a 
  5.14  flat fee or as the prices per hour, mile, or other unit of 
  5.15  computation, and other information described as follows: 
  5.16     (i) forwarding of remains to another funeral establishment, 
  5.17  together with a list of the services provided for any quoted 
  5.18  price; 
  5.19     (ii) receiving remains from another funeral establishment, 
  5.20  together with a list of the services provided for any quoted 
  5.21  price; 
  5.22     (iii) separate prices for each cremation offered by the 
  5.23  funeral provider, with the price including an alternative or 
  5.24  cremation container, any crematory charges, and a description of 
  5.25  the services and container included in the price, where 
  5.26  applicable, and the price of cremation where the purchaser 
  5.27  provides the container; 
  5.28     (iv) separate prices for each immediate burial offered by 
  5.29  the funeral provider, including a casket or alternative 
  5.30  container, and a description of the services and container 
  5.31  included in that price, and the price of immediate burial where 
  5.32  the purchaser provides the casket or alternative container; 
  5.33     (v) transfer of remains to the funeral establishment; 
  5.34     (vi) embalming; 
  5.35     (vii) other preparation of the body; 
  5.36     (viii) use of facilities, equipment, or staff for viewing; 
  6.1      (ix) use of facilities, equipment, or staff for funeral 
  6.2   ceremony; 
  6.3      (x) use of facilities, equipment, or staff for memorial 
  6.4   service; 
  6.5      (xi) use of equipment or staff for graveside service; 
  6.6      (xii) hearse or funeral coach; and 
  6.7      (xiii) limousine; and 
  6.8      (xiv) separate prices for all cemetery-specific goods and 
  6.9   services, including all goods and services associated with 
  6.10  interment and burial site goods and services; 
  6.11     (5) the price range for the caskets offered by the funeral 
  6.12  provider, together with the statement "A complete price list 
  6.13  will be provided at the funeral establishment." or the prices of 
  6.14  individual caskets, as disclosed in the manner described in 
  6.15  paragraphs (c) and (d); 
  6.16     (6) the price range for the alternative containers offered 
  6.17  by the funeral provider, together with the statement "A complete 
  6.18  price list will be provided at the funeral establishment." or 
  6.19  the prices of individual alternative containers, as disclosed in 
  6.20  the manner described in paragraphs (c) and (d); 
  6.21     (7) the price range for the outer burial containers offered 
  6.22  by the funeral provider, together with the statement "A complete 
  6.23  price list will be provided at the funeral establishment." or 
  6.24  the prices of individual outer burial containers, as disclosed 
  6.25  in the manner described in paragraphs (c) and (d); 
  6.26     (8) the price range for the cremation containers and 
  6.27  cremated remains containers offered by the funeral provider, 
  6.28  together with the statement "A complete price list will be 
  6.29  provided at the funeral establishment." or the prices of 
  6.30  individual cremation containers and cremated remains containers, 
  6.31  as disclosed in the manner described in paragraphs (c) and (d); 
  6.32     (9) the price for the basic services of funeral director 
  6.33  and staff, together with a list of the principal basic services 
  6.34  provided for any quoted price and, if the charge cannot be 
  6.35  declined by the purchaser, the statement "This fee for our basic 
  6.36  services will be added to the total cost of the funeral 
  7.1   arrangements you select.  (This fee is already included in our 
  7.2   charges for direct cremations, immediate burials, and forwarding 
  7.3   or receiving remains.)"  If the charge cannot be declined by the 
  7.4   purchaser, the quoted price shall include all charges for the 
  7.5   recovery of unallocated funeral provider overhead, and funeral 
  7.6   providers may include in the required disclosure the phrase "and 
  7.7   overhead" after the word "services."  This services fee is the 
  7.8   only funeral provider fee for services, facilities, or 
  7.9   unallocated overhead permitted by this subdivision to be 
  7.10  nondeclinable, unless otherwise required by law; 
  7.11     (10) if the price for basic services, as described in 
  7.12  clause (9), is not applicable, the statement "Please note that a 
  7.13  fee for the use of our basic services is included in the price 
  7.14  of our caskets.  Our services include (specify services 
  7.15  provided)."  The fee shall include all charges for the recovery 
  7.16  of unallocated funeral provider overhead, and funeral providers 
  7.17  may include in the required disclosure the phrase "and overhead" 
  7.18  after the word "services."  The statement must be placed on the 
  7.19  general price list, together with the casket price range or the 
  7.20  prices of individual caskets.  This services fee is the only 
  7.21  funeral provider fee for services, facilities, or unallocated 
  7.22  overhead permitted by this subdivision to be nondeclinable, 
  7.23  unless otherwise required by law. 
  7.24     (f) Funeral providers must give an itemized written 
  7.25  statement, for retention, to each consumer who arranges a 
  7.26  funeral or other disposition of human remains at the conclusion 
  7.27  of the discussion of the arrangements.  The itemized written 
  7.28  statement must be signed by the consumer selecting the goods and 
  7.29  services and the licensed funeral director or mortician planning 
  7.30  the arrangements.  The statement must list the funeral goods and 
  7.31  funeral services selected by that consumer and the prices to be 
  7.32  paid for each item, specifically itemized cash advance items 
  7.33  (these prices must be given to the extent then known or 
  7.34  reasonably ascertainable if the prices are not known or 
  7.35  reasonably ascertainable, a good faith estimate shall be given 
  7.36  and a written statement of the actual charges shall be provided 
  8.1   before the final bill is paid), and the total cost of goods and 
  8.2   services selected.  The information required by this paragraph 
  8.3   may be included on any contract, statement, or other document 
  8.4   which the funeral provider would otherwise provide at the 
  8.5   conclusion of discussion of arrangements. 
  8.6      (g) Funeral providers must give any other price 
  8.7   information, in any other format, in addition to that required 
  8.8   by paragraphs (c) to (e) so long as the written statement 
  8.9   required by paragraph (f) is given when required. 
  8.10     (h) Upon receiving notice of the death of an individual for 
  8.11  whom a funeral provider has made preneed arrangements, the 
  8.12  funeral provider must provide a copy of all preneed arrangement 
  8.13  documents to the person who controls final disposition of the 
  8.14  human remains.  The person controlling disposition shall be 
  8.15  provided with these documents at the time of the person's first 
  8.16  contact with the funeral provider.  If the funeral provider does 
  8.17  not know who controls disposition of the remains, the provider 
  8.18  must send a copy of all preneed arrangement documents to the 
  8.19  last known address of the preneed consumer. 
  8.20     Sec. 8.  Minnesota Statutes 1998, section 149A.71, 
  8.21  subdivision 4, is amended to read: 
  8.22     Subd. 4.  [CASKET, ALTERNATE CONTAINER, AND CREMATION 
  8.23  CONTAINER SALES; RECORDS; REQUIRED DISCLOSURES.] Any funeral 
  8.24  provider who sells or offers to sell a casket, alternate 
  8.25  container, or cremation container to the public must maintain a 
  8.26  record of each sale that includes the name of the purchaser, the 
  8.27  purchaser's mailing address, the name of the decedent, the date 
  8.28  of the decedent's death, and the place of death.  These records 
  8.29  shall be open to inspection by the commissioner and reported to 
  8.30  the commissioner.  Any funeral provider selling a casket, 
  8.31  alternate container, or cremation container to the public, and 
  8.32  not having charge of the final disposition of the dead human 
  8.33  body, shall enclose within the casket, alternate container, or 
  8.34  cremation container information provided by the commissioner 
  8.35  that includes a blank certificate of death, and a copy of the 
  8.36  statutes and rules controlling the removal, preparation, 
  9.1   transportation, arrangements for disposition, and final 
  9.2   disposition of a dead human body.  This section subdivision does 
  9.3   not apply to morticians, funeral directors, funeral 
  9.4   establishments, crematories, or wholesale distributors of 
  9.5   caskets, alternate containers, or cremation containers. 
  9.6      Sec. 9.  Minnesota Statutes 1998, section 149A.73, 
  9.7   subdivision 3, is amended to read: 
  9.8      Subd. 3.  [OTHER REQUIRED PURCHASES OF FUNERAL GOODS OR 
  9.9   FUNERAL SERVICES; DECEPTIVE ACTS OR PRACTICES.] (a) In selling 
  9.10  or offering to sell funeral goods or funeral services to the 
  9.11  public, it is a deceptive act or practice for a funeral provider 
  9.12  to condition the furnishing of any funeral good or funeral 
  9.13  service to a consumer arranging a funeral upon the purchase of 
  9.14  any other funeral good or funeral service, except as may be 
  9.15  otherwise required by law or to charge any fee as a condition to 
  9.16  furnishing any funeral goods or funeral services to a consumer 
  9.17  arranging a funeral, other than the fees for services of funeral 
  9.18  director and staff, other funeral services and funeral goods 
  9.19  selected by the purchaser, and other funeral goods or services 
  9.20  required to be purchased, as explained on the itemized statement 
  9.21  in accordance with section 149A.72, subdivision 10. 
  9.22     (b) In selling or offering to sell funeral goods or funeral 
  9.23  services to the public, it is a deceptive act or practice for a 
  9.24  funeral provider to charge an increased price for the handling, 
  9.25  placing, or setting of a funeral good based upon the fact that 
  9.26  the good was not purchased from that funeral provider. 
  9.27     Sec. 10.  [149A.745] [FUNERAL INDUSTRY PRACTICES; 
  9.28  PROHIBITION ON PREINTERMENT OF OUTER BURIAL CONTAINERS.] 
  9.29     A funeral provider is prohibited from interring an outer 
  9.30  burial container until the death of the beneficiary. 
  9.31     Sec. 11.  Minnesota Statutes 1998, section 149A.97, is 
  9.32  amended by adding a subdivision to read: 
  9.33     Subd. 3a.  [REQUIREMENTS FOR PRENEED FUNERAL 
  9.34  AGREEMENTS.] It is unlawful for any person residing or doing 
  9.35  business in this state to make preneed arrangements unless an 
  9.36  agreement for preneed arrangements: 
 10.1      (1) is written in clear, understandable language and 
 10.2   printed in a type that is easy to read in size and style; 
 10.3      (2) contains a complete, itemized description of the 
 10.4   funeral goods and funeral services selected or purchased, 
 10.5   including, when appropriate, manufacturer's name, model numbers, 
 10.6   style numbers, and description of the type of material used in 
 10.7   construction; 
 10.8      (3) discloses clearly and conspicuously whether the prices 
 10.9   of the goods and services selected are guaranteed; 
 10.10     (4) discloses that funding options for preneed arrangements 
 10.11  consist of either prepayment to the funeral provider or the 
 10.12  purchase of an insurance policy; 
 10.13     (5) discloses whether the funds received from the purchaser 
 10.14  are required to be placed in a trust and, if the funds are 
 10.15  required to be placed in a trust, provides the following 
 10.16  information: 
 10.17     (i) lists the location of the trust account, including the 
 10.18  name, address, and telephone number of the institution where the 
 10.19  money will be held and any identifying account numbers, the 
 10.20  amount of money to be trusted, and the names of the trustees; 
 10.21  and 
 10.22     (ii) advises the purchaser as to the disposition of the 
 10.23  interest from the trust and as to responsibility for taxes owed 
 10.24  on the interest; 
 10.25     (6) contains the names, addresses, and telephone numbers of 
 10.26  the Minnesota department of health as the regulatory agency for 
 10.27  preneed trust accounts and the Minnesota attorney general's 
 10.28  office as the regulatory agency that handles consumer 
 10.29  complaints; 
 10.30     (7) discloses clearly and conspicuously that any person who 
 10.31  makes payment under a preneed funeral agreement may cancel the 
 10.32  agreement subject to the procedures for cancellation specified 
 10.33  in subdivision 6a; 
 10.34     (8) contains the following statement, in bold-faced type 
 10.35  and a minimum size of ten points: 
 10.36     "Within fifteen calendar days after receipt of any money 
 11.1   required to be held in trust, all such money must be deposited 
 11.2   in a banking institution, savings association, or credit union, 
 11.3   organized under state or federal laws, the accounts of which are 
 11.4   insured by an instrumentality of the federal government.  The 
 11.5   person for whose benefit the money was paid according to this 
 11.6   agreement shall be known as the beneficiary; the person or 
 11.7   persons who paid the money shall be known as the purchaser; and 
 11.8   the funeral provider shall be known as the depositor.  The money 
 11.9   must be carried in a separate account with the names of the 
 11.10  depositor and the purchaser as trustees for the beneficiary. 
 11.11     The preneed arrangement trust shall be considered an asset 
 11.12  of the purchaser until the death of the beneficiary.  At the 
 11.13  death of the beneficiary, the money in the trust shall be 
 11.14  considered an asset of the beneficiary's estate, to the extent 
 11.15  that the value of the trust exceeds the actual value for the 
 11.16  goods and services provided at-need.  The depositor as trustee 
 11.17  must disclose in writing the location of the trust account, 
 11.18  including the name and address of the institution where the 
 11.19  money is being held and any identifying account numbers, to the 
 11.20  beneficiary when the money is deposited and when there are any 
 11.21  subsequent changes to the location of the trust account."; 
 11.22     (9) for agreements with revocable trusts, contains the 
 11.23  following statement, in bold-faced type and a minimum size of 
 11.24  ten points: 
 11.25     "REVOCABLE TRUST: 
 11.26     The preneed arrangement trust being created by the 
 11.27  purchaser is revocable.  These trust funds, including all 
 11.28  principal and accrued interest, are the purchaser's assets.  The 
 11.29  purchaser may withdraw the principal and accrued interest at any 
 11.30  time prior to the death of the beneficiary.  At the death of the 
 11.31  beneficiary, the funds shall be distributed in their entirety, 
 11.32  principal plus accrued interest, with no fees retained by the 
 11.33  trustees as administrative fees.  The funds shall be distributed 
 11.34  for the payment of the at-need funeral goods or services 
 11.35  selected, with any excess funds distributed to the beneficiary's 
 11.36  estate.  At any time before or at the time of the beneficiary's 
 12.1   death, the purchaser may transfer the preneed arrangements and 
 12.2   related trust funds for use in the payment of funeral goods and 
 12.3   services.  The purchaser may not be charged any fee in 
 12.4   connection with the transfer of a preneed arrangement and trust 
 12.5   funds."; 
 12.6      (10) for agreements with irrevocable trusts, contains the 
 12.7   following statement, in bold-faced type and a minimum size of 
 12.8   ten points: 
 12.9      "IRREVOCABLE TRUST: 
 12.10     A trust created to hold preneed arrangement funds is 
 12.11  revocable in its entirety unless specifically limited by the 
 12.12  purchaser.  The purchaser has chosen to create an irrevocable 
 12.13  trust in the amount of $ (insert the dollar amount of the 
 12.14  purchaser's irrevocable trust).  The revocable portion of this 
 12.15  trust fund is limited to that amount that exceeds the allowable 
 12.16  supplemental security income asset exclusion used for 
 12.17  determining eligibility for public assistance at the time the 
 12.18  trust is created.  The principal and accrued interest may not be 
 12.19  withdrawn from the trust prior to the beneficiary's death, 
 12.20  except to the extent that the trust funds exceed the irrevocable 
 12.21  trust limitation.  At the time of the beneficiary's death, the 
 12.22  funds shall be distributed in their entirety, principal plus 
 12.23  accrued interest, with no fees retained by the trustees as 
 12.24  administrative fees.  The funds shall be distributed for the 
 12.25  payment of the at-need funeral goods or services selected, with 
 12.26  any excess funds distributed to the beneficiary's estate.  At 
 12.27  any time prior to or at the time of the beneficiary's death, the 
 12.28  purchaser may transfer the preneed arrangements and trust funds 
 12.29  for use in the payment of funeral goods and services.  The 
 12.30  purchaser may not be charged any fee in connection with the 
 12.31  transfer of a preneed arrangement and trust funds."; 
 12.32     (11) provides that if the particular funeral goods or 
 12.33  funeral services specified in the agreement are unavailable at 
 12.34  the time of delivery, the funeral provider must furnish goods 
 12.35  and services similar in style and at least equal in quality to 
 12.36  the material and workmanship of the goods or services specified 
 13.1   and that the representative of the beneficiary has the right to 
 13.2   choose the goods or services to be substituted; and 
 13.3      (12) contains an itemization of the sale of grave lots, 
 13.4   spaces, lawn crypts, niches, or mausoleum crypts separate from 
 13.5   all other funeral goods and services selected. 
 13.6      Sec. 12.  Minnesota Statutes 1998, section 149A.97, is 
 13.7   amended by adding a subdivision to read: 
 13.8      Subd. 4a.  [FINANCE CHARGES ON PRENEED ARRANGEMENTS 
 13.9   PROHIBITED.] Funeral providers are prohibited from assessing 
 13.10  finance charges on preneed arrangements. 
 13.11     Sec. 13.  Minnesota Statutes 1998, section 149A.97, 
 13.12  subdivision 6, is amended to read: 
 13.13     Subd. 6.  [DISBURSEMENT OF TRUST FUNDS.] The funds held in 
 13.14  trust, including principal and accrued interest, may be 
 13.15  distributed prior to the death of the beneficiary upon demand by 
 13.16  the purchaser as specified in subdivision 6a, to the extent that 
 13.17  the trust is designated revocable.  At the death of the 
 13.18  beneficiary and with satisfactory proof of death provided to the 
 13.19  institution holding the trust funds, the funds, including 
 13.20  principal and accrued interest, may be distributed by either the 
 13.21  depositor as trustee or the purchaser as trustee, subject to 
 13.22  section 149A.80.  The funds shall be distributed in their 
 13.23  entirety, with no fees to be retained by the trustees as 
 13.24  administrative fees.  The funds shall be distributed for the 
 13.25  payment of the actual at-need value of the funeral goods and/or 
 13.26  services selected with any excess funds distributed to the 
 13.27  estate of the decedent. 
 13.28     Sec. 14.  Minnesota Statutes 1998, section 149A.97, is 
 13.29  amended by adding a subdivision to read: 
 13.30     Subd. 6a.  [CANCELLATION OF AGREEMENT FOR PRENEED 
 13.31  ARRANGEMENTS.] (a) If a purchaser cancels an agreement for 
 13.32  preneed arrangements at any time before midnight of the third 
 13.33  business day after the date of the agreement, the purchaser 
 13.34  shall receive a refund of all consideration paid according to 
 13.35  the agreement.  The refund must be distributed to the purchaser 
 13.36  within 15 business days following receipt by the funeral 
 14.1   provider of the cancellation notice from the purchaser.  If the 
 14.2   purchaser cancels the agreement after the third business day 
 14.3   after the date of the agreement, all funds held in a revocable 
 14.4   trust, including all principal and accrued interest, must be 
 14.5   distributed to the purchaser within 15 business days following 
 14.6   receipt by the funeral provider of the cancellation notice. 
 14.7      (b) Cancellation is evidenced by the purchaser giving 
 14.8   written notice of cancellation to the funeral provider at the 
 14.9   address provided in the agreement.  Notice of cancellation, if 
 14.10  given by mail, is effective upon deposit in a mailbox, properly 
 14.11  addressed to the funeral provider and postage prepaid.  Notice 
 14.12  of cancellation need not take any specific form and is 
 14.13  sufficient if it indicates, by any form of written expression, 
 14.14  the intention of the purchaser not to be bound by the agreement. 
 14.15     Sec. 15.  Minnesota Statutes 1998, section 149A.97, is 
 14.16  amended by adding a subdivision to read: 
 14.17     Subd. 6b.  [APPLICATION OF PAYMENT.] When purchasing grave 
 14.18  lots, spaces, lawn crypts, niches, or mausoleum crypts at the 
 14.19  same time as making preneed arrangements, payments made by the 
 14.20  purchaser shall be first applied to the price of the purchased 
 14.21  grave lots, spaces, lawn crypts, niches, or mausoleum crypts, 
 14.22  until such products are paid for in full.  All further funds 
 14.23  received from the purchaser shall be applied toward prepayment 
 14.24  of the funeral goods and funeral services identified in the 
 14.25  preneed funeral agreement.