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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 438-S.F.No. 2686 
                  An act relating to health; establishing requirements 
                  for the sale of funeral goods and services and preneed 
                  funeral arrangements; modifying the enforcement 
                  authority of the commissioner of health; prohibiting 
                  certain solicitations of sales by funeral providers; 
                  requiring certain disclosures by funeral providers; 
                  prohibiting certain deceptive acts and practices for 
                  funeral providers; establishing requirements for 
                  preneed funeral agreements; amending Minnesota 
                  Statutes 1998, sections 149A.02, subdivision 22, and 
                  by adding subdivisions; 149A.08, subdivisions 1, 3, 4, 
                  and by adding a subdivision; 149A.70, by adding 
                  subdivisions; 149A.71, subdivisions 1, 2, 3, and 4; 
                  149A.72, subdivisions 5, 6, 7, 9, 10, 11, 12, and 13; 
                  149A.73, subdivisions 1, 3, 4, and by adding a 
                  subdivision; 149A.75; and 149A.97, subdivisions 1, 2, 
                  3, 6, 9, and by adding subdivisions; proposing coding 
                  for new law in Minnesota Statutes, chapter 149A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 149A.02, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [BURIAL SITE GOODS.] "Burial site goods" means 
        any goods sold or offered for sale or rental directly to the 
        public for use in connection with the final disposition of a 
        dead human body. 
           Sec. 2.  Minnesota Statutes 1998, section 149A.02, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [BURIAL SITE SERVICES.] "Burial site services" 
        means any services sold or offered for sale directly to the 
        public for use in connection with the final disposition of a 
        dead human body. 
           Sec. 3.  Minnesota Statutes 1998, section 149A.02, 
        subdivision 22, is amended to read: 
           Subd. 22.  [FUNERAL PROVIDER.] "Funeral provider" means any 
        person that sells or offers to sell funeral goods or, funeral 
        services, burial site goods, or burial site services to the 
        public.  "Funeral provider" does not include monument builders 
        who sell and install markers and headstones, with or without 
        foundations, at retail to the public, but do not sell any other 
        funeral good, funeral service, burial good, or burial site 
        service. 
           Sec. 4.  Minnesota Statutes 1998, section 149A.02, is 
        amended by adding a subdivision to read: 
           Subd. 33a.  [PRENEED CONSUMER.] "Preneed consumer" means an 
        individual who arranges for funeral goods, funeral services, 
        burial site goods, or burial site services prior to the death of 
        that individual or another individual, and who funds those goods 
        or services through prepayment to a funeral provider or through 
        purchase of an insurance policy. 
           Sec. 5.  Minnesota Statutes 1998, section 149A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] In addition to any other 
        remedy provided by law, the commissioner may issue a cease and 
        desist order to: 
           (1) stop a person from violating or threatening to violate 
        any law, rule, order, stipulation agreement, settlement, 
        compliance agreement, license, or permit which the commissioner 
        is empowered to regulate, enforce, or issue; or 
           (2) prohibit a funeral provider from engaging in the sale 
        of preneed funeral goods, funeral services, burial site goods, 
        or burial site services if the funeral provider has been found 
        in violation of any provision of this chapter. 
           Sec. 6.  Minnesota Statutes 1998, section 149A.08, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [SALE OF PRENEED GOODS OR SERVICES; CONTENTS OF 
        ORDER, HEARING, WHEN EFFECTIVE.] (a) This subdivision applies to 
        cease and desist orders issued pursuant to subdivision 1, clause 
        (2).  
           (b) In addition to the requirements of subdivision 2, a 
        cease and desist order must also specify that the hearing to 
        which the funeral provider has a right occurs, if requested, 
        before the order goes into effect and that a timely request for 
        a hearing automatically stays the cease and desist order.  
           (c) A request for a hearing must be in writing, must be 
        delivered to the commissioner by certified mail within 20 
        calendar days after the funeral provider receives the order, and 
        must specifically state the reasons for seeking review of the 
        order.  If the funeral provider fails to request a hearing in 
        writing within 20 calendar days of receipt of the order, the 
        cease and desist order becomes the final order of the 
        commissioner.  If a funeral provider makes a timely request for 
        a hearing, the cease and desist order is automatically stayed 
        pending the outcome of the hearing.  The commissioner must 
        initiate a hearing within 30 calendar days from the date of 
        receiving the written request for hearing.  The hearing shall be 
        conducted pursuant to sections 14.57 to 14.62.  No earlier than 
        ten calendar days but within 30 calendar days of receiving the 
        presiding administrative law judge's report, the commissioner 
        shall issue a final order modifying, vacating, or making 
        permanent the cease and desist order as the facts require. 
           Sec. 7.  Minnesota Statutes 1998, section 149A.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REQUEST FOR HEARING; HEARING; AND FINAL ORDER.] 
        This subdivision applies to cease and desist orders issued 
        pursuant to subdivision 1, clause (1).  A request for hearing 
        must be in writing, delivered to the commissioner by certified 
        mail within 20 calendar days after the receipt of the cease and 
        desist order, and specifically state the reasons for seeking 
        review of the order.  The commissioner must initiate a hearing 
        within 30 calendar days from the date of receipt of the written 
        request for hearing.  The hearing shall be conducted pursuant to 
        sections 14.57 to 14.62.  No earlier than ten calendar days but 
        within 30 calendar days of receipt of the presiding 
        administrative law judge's report, the commissioner shall issue 
        a final order modifying, vacating, or making permanent the cease 
        and desist order as the facts require.  If, within 20 calendar 
        days of receipt of the cease and desist order, the subject of 
        the order fails to request a hearing in writing, the cease and 
        desist order becomes the final order of the commissioner. 
           Sec. 8.  Minnesota Statutes 1998, section 149A.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REQUEST FOR STAY.] This subdivision applies to 
        cease and desist orders issued pursuant to subdivision 1, clause 
        (1).  When a request for a stay accompanies a timely hearing 
        request, the commissioner may, in the commissioner's discretion, 
        grant the stay.  If the commissioner does not grant a requested 
        stay, the commissioner shall refer the request to the office of 
        administrative hearings within three working days from the 
        receipt of the request. Within ten calendar days after receiving 
        the request from the commissioner, an administrative law judge 
        shall issue a recommendation to grant or deny the stay.  The 
        commissioner shall grant or deny the stay within five calendar 
        days of receiving the administrative law judge's recommendation. 
           Sec. 9.  Minnesota Statutes 1998, section 149A.70, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [SOLICITATIONS PROHIBITED IN CERTAIN 
        SITUATIONS.] No funeral provider may directly or indirectly: 
           (1) call upon an individual at a grave site, in a hospital, 
        nursing home, hospice, or similar institution or facility, or at 
        a visitation, wake, or reviewal for the purpose of soliciting 
        the sale of funeral goods, funeral services, burial site goods, 
        or burial site services or for the purpose of making 
        arrangements for a funeral or the final disposition of a dead 
        human body, without a specific request for solicitation from 
        that individual; 
           (2) solicit the sale of funeral goods, funeral services, 
        burial site goods, or burial site services from an individual 
        whose impending death is readily apparent, without a specific 
        request for solicitation from that individual; or 
           (3) engage in telephone solicitation of an individual who 
        has the right to control the final disposition of a dead human 
        body within ten days after the death of the individual whose 
        body is being disposed, without a specific request for 
        solicitation from that individual. 
           This subdivision does not apply to communications between 
        an individual and a funeral provider who is related to the 
        individual by blood, adoption, or marriage. 
           Sec. 10.  Minnesota Statutes 1998, section 149A.70, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [DISCLOSURE OF OWNERSHIP.] All funeral 
        establishments and funeral providers must clearly state by whom 
        they are owned in all business literature, correspondence, and 
        contracts.  
           Sec. 11.  Minnesota Statutes 1998, section 149A.70, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [DISCLOSURE OF CHANGE OF OWNERSHIP.] (a) Within 
        15 days of a change in ownership of a funeral establishment or 
        funeral provider, the funeral establishment or funeral provider 
        shall notify all preneed consumers by first class mail of the 
        change in ownership.  The notification shall advise the preneed 
        consumers of their right to transfer all preneed trust funds to 
        a new funeral provider and shall advise all preneed consumers 
        who have revocable preneed trusts of their right to terminate 
        the trust and receive a refund of all principal paid into the 
        trust, plus interest accrued. 
           (b) For purposes of this subdivision: 
           (1) "change in ownership" means: 
           (i) the sale or transfer of all or substantially all of the 
        assets of a funeral establishment or funeral provider; 
           (ii) the sale or transfer of a controlling interest of a 
        funeral establishment or funeral provider; or 
           (iii) the termination of the business of a funeral 
        establishment or funeral provider where there is no transfer of 
        assets or stock; and 
           (2) "controlling interest" means: 
           (i) an interest in a partnership of greater than 50 
        percent; or 
           (ii) greater than 50 percent of the issued and outstanding 
        shares of a stock of a corporation. 
           Sec. 12.  Minnesota Statutes 1998, section 149A.71, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNFAIR OR DECEPTIVE ACTS OR PRACTICES.] In 
        selling or offering to sell funeral goods or, funeral services, 
        burial site goods, or burial site services to the public, it is 
        an unfair or deceptive act or practice for a funeral provider to 
        fail to furnish accurate price information disclosing the cost 
        to the purchaser for each of the specific funeral goods and, 
        funeral services, burial site goods, or burial site services 
        used in connection with the disposition of dead human bodies to 
        persons inquiring about the purchase of funerals.  Any funeral 
        provider who complies with the preventive requirements in 
        subdivision 2 is not engaged in the unfair or deceptive acts or 
        practices defined in this section. 
           Sec. 13.  Minnesota Statutes 1998, section 149A.71, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PREVENTIVE REQUIREMENTS.] (a) To prevent unfair 
        or deceptive acts or practices, the requirements of this 
        subdivision must be met. 
           (b) Funeral providers must tell persons who ask by 
        telephone about the funeral provider's offerings or prices any 
        accurate information from the price lists described in 
        paragraphs (c) to (e) and any other readily available 
        information that reasonably answers the questions asked. 
           (c) Funeral providers must make available for viewing to 
        people who inquire in person about the offerings or prices of 
        funeral goods or burial site goods, separate printed or 
        typewritten price lists.  Each funeral provider must have a 
        separate price list for each of the following types of goods 
        that are sold or offered for sale: 
           (1) caskets; 
           (2) alternative containers; 
           (3) outer burial containers; and 
           (4) cremation containers and cremated remains containers; 
           (5) markers; and 
           (6) headstones. 
           (d) Each separate price list must contain the name of the 
        funeral provider's place of business and a caption describing 
        the list as a price list for one of the types of funeral 
        goods or burial site goods described in paragraph (c), clauses 
        (1) to (4) (6).  The funeral provider must offer the list upon 
        beginning discussion of, but in any event before showing, the 
        specific funeral goods or burial site goods and must provide a 
        photocopy of the price list, for retention, if so asked by the 
        consumer.  The list must contain, at least, the retail prices of 
        all the specific funeral goods and burial site goods offered 
        which do not require special ordering, enough information to 
        identify each, and the effective date for the price list.  In 
        lieu of a written price list, other formats, such as notebooks, 
        brochures, or charts may be used if they contain the same 
        information as would the printed or typewritten list, and 
        display it in a clear and conspicuous manner.  However, funeral 
        providers are not required to make a specific price list 
        available if the funeral providers place the information 
        required by this paragraph on the general price list described 
        in paragraph (e). 
           (e) Funeral providers must give a printed or typewritten 
        price list, for retention, to persons who inquire in person 
        about the funeral goods or, funeral services, burial site goods, 
        or burial site services or prices offered by the funeral 
        provider.  The funeral provider must give the list upon 
        beginning discussion of either the prices of or the overall type 
        of funeral service or disposition or specific funeral goods or, 
        funeral services, burial site goods, or burial site services 
        offered by the provider.  This requirement applies whether the 
        discussion takes place in the funeral establishment or 
        elsewhere.  However, when the deceased is removed for 
        transportation to the funeral establishment, an in-person 
        request for authorization to embalm does not, by itself, trigger 
        the requirement to offer the general price list.  If the 
        provider, in making an in-person request for authorization to 
        embalm, discloses that embalming is not required by law except 
        in certain special cases, the provider is not required to offer 
        the general price list.  Any other discussion during that time 
        about prices or the selection of funeral goods or, funeral 
        services, burial site goods, or burial site services triggers 
        the requirement to give the consumer a general price list.  The 
        general price list must contain the following information: 
           (1) the name, address, and telephone number of the funeral 
        provider's place of business; 
           (2) a caption describing the list as a "general price 
        list"; 
           (3) the effective date for the price list; 
           (4) the retail prices, in any order, expressed either as a 
        flat fee or as the prices per hour, mile, or other unit of 
        computation, and other information described as follows: 
           (i) forwarding of remains to another funeral establishment, 
        together with a list of the services provided for any quoted 
        price; 
           (ii) receiving remains from another funeral establishment, 
        together with a list of the services provided for any quoted 
        price; 
           (iii) separate prices for each cremation offered by the 
        funeral provider, with the price including an alternative or 
        cremation container, any crematory charges, and a description of 
        the services and container included in the price, where 
        applicable, and the price of cremation where the purchaser 
        provides the container; 
           (iv) separate prices for each immediate burial offered by 
        the funeral provider, including a casket or alternative 
        container, and a description of the services and container 
        included in that price, and the price of immediate burial where 
        the purchaser provides the casket or alternative container; 
           (v) transfer of remains to the funeral establishment; 
           (vi) embalming; 
           (vii) other preparation of the body; 
           (viii) use of facilities, equipment, or staff for viewing; 
           (ix) use of facilities, equipment, or staff for funeral 
        ceremony; 
           (x) use of facilities, equipment, or staff for memorial 
        service; 
           (xi) use of equipment or staff for graveside service; 
           (xii) hearse or funeral coach; and 
           (xiii) limousine; and 
           (xiv) separate prices for all cemetery-specific goods and 
        services, including all goods and services associated with 
        interment and burial site goods and services and excluding 
        markers and headstones; 
           (5) the price range for the caskets offered by the funeral 
        provider, together with the statement "A complete price list 
        will be provided at the funeral establishment or casket sale 
        location." or the prices of individual caskets, as disclosed in 
        the manner described in paragraphs (c) and (d); 
           (6) the price range for the alternative containers offered 
        by the funeral provider, together with the statement "A complete 
        price list will be provided at the funeral establishment or 
        alternative container sale location." or the prices of 
        individual alternative containers, as disclosed in the manner 
        described in paragraphs (c) and (d); 
           (7) the price range for the outer burial containers offered 
        by the funeral provider, together with the statement "A complete 
        price list will be provided at the funeral establishment or 
        outer burial container sale location." or the prices of 
        individual outer burial containers, as disclosed in the manner 
        described in paragraphs (c) and (d); 
           (8) the price range for the cremation containers and 
        cremated remains containers offered by the funeral provider, 
        together with the statement "A complete price list will be 
        provided at the funeral establishment or cremation container 
        sale location." or the prices of individual cremation containers 
        and cremated remains containers, as disclosed in the manner 
        described in paragraphs (c) and (d); 
           (9) the price for the basic services of funeral director 
        provider and staff, together with a list of the principal basic 
        services provided for any quoted price and, if the charge cannot 
        be declined by the purchaser, the statement "This fee for our 
        basic services will be added to the total cost of the funeral 
        arrangements you select.  (This fee is already included in our 
        charges for direct cremations, immediate burials, and forwarding 
        or receiving remains.)"  If the charge cannot be declined by the 
        purchaser, the quoted price shall include all charges for the 
        recovery of unallocated funeral provider overhead, and funeral 
        providers may include in the required disclosure the phrase "and 
        overhead" after the word "services."  This services fee is the 
        only funeral provider fee for services, facilities, or 
        unallocated overhead permitted by this subdivision to be 
        nondeclinable, unless otherwise required by law; 
           (10) if the price for basic services, as described in 
        clause (9), is not applicable, the statement "Please note that a 
        fee for the use of our basic services is included in the price 
        of our caskets.  Our services include (specify services 
        provided)."  The fee shall include all charges for the recovery 
        of unallocated funeral provider overhead, and funeral providers 
        may include in the required disclosure the phrase "and overhead" 
        after the word "services."  The statement must be placed on the 
        general price list, together with the casket price range or the 
        prices of individual caskets.  This services fee is the only 
        funeral provider fee for services, facilities, or unallocated 
        overhead permitted by this subdivision to be nondeclinable, 
        unless otherwise required by law.; and 
           (11) the price range for the markers and headstones offered 
        by the funeral provider, together with the statement "A complete 
        price list will be provided at the funeral establishment or 
        marker or headstone sale location." or the prices of individual 
        markers and headstones, as disclosed in the manner described in 
        paragraphs (c) and (d). 
           (f) Funeral providers must give an itemized written 
        statement, for retention, to each consumer who arranges a 
        funeral or other disposition of human remains at the conclusion 
        of the discussion of the arrangements.  The itemized written 
        statement must be signed by the consumer selecting the goods and 
        services and.  If the statement is provided at a funeral 
        establishment, the statement must be signed by the licensed 
        funeral director or mortician planning the arrangements.  If the 
        statement is provided by any other funeral provider, the 
        statement must be signed by an authorized agent of the funeral 
        provider.  The statement must list the funeral goods and, 
        funeral services, burial site goods, or burial site services 
        selected by that consumer and the prices to be paid for each 
        item, specifically itemized cash advance items (these prices 
        must be given to the extent then known or reasonably 
        ascertainable if the prices are not known or reasonably 
        ascertainable, a good faith estimate shall be given and a 
        written statement of the actual charges shall be provided before 
        the final bill is paid), and the total cost of goods and 
        services selected.  The information required by this paragraph 
        may be included on any contract, statement, or other document 
        which the funeral provider would otherwise provide at the 
        conclusion of discussion of arrangements. 
           (g) Funeral providers must give any other price 
        information, in any other format, in addition to that required 
        by paragraphs (c) to (e) so long as the written statement 
        required by paragraph (f) is given when required. 
           (h) Upon receiving actual notice of the death of an 
        individual with whom a funeral provider has entered a preneed 
        funeral agreement, the funeral provider must provide a copy of 
        all preneed funeral agreement documents to the person who 
        controls final disposition of the human remains or to the 
        designee of the person controlling disposition.  The person 
        controlling disposition shall be provided with these documents 
        at the time of the person's first contact with the funeral 
        provider, if the first contact occurs in person at a funeral 
        establishment, crematory, or other place of business of the 
        funeral provider.  If the contact occurs by other means or at 
        another location, the documents must be provided within 24 hours 
        of the first contact. 
           Sec. 14.  Minnesota Statutes 1998, section 149A.71, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PRICES DISPLAYED.] Any funeral provider who 
        sells or offers to sell funeral goods or burial site goods to 
        the public shall, at all times, display the retail price of all 
        displayed funeral goods or burial site goods in a conspicuous 
        place on the goods.  "Conspicuous place" means a place where any 
        consumer viewing the funeral goods or burial site goods would be 
        able to see and read the price and reasonably understand that 
        the price seen is the price of the funeral goods or burial site 
        goods viewed.  Displayed funeral goods or burial site goods are 
        those goods that the funeral provider regularly maintains in 
        inventory and makes available for viewing and purchase by the 
        consumer. 
           Sec. 15.  Minnesota Statutes 1998, section 149A.71, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CASKET, ALTERNATE CONTAINER, AND CREMATION 
        CONTAINER SALES; RECORDS; REQUIRED DISCLOSURES.] Any funeral 
        provider who sells or offers to sell a casket, alternate 
        container, or cremation container to the public must maintain a 
        record of each sale that includes the name of the purchaser, the 
        purchaser's mailing address, the name of the decedent, the date 
        of the decedent's death, and the place of death.  These records 
        shall be open to inspection by the commissioner and reported to 
        the commissioner.  Any funeral provider selling a casket, 
        alternate container, or cremation container to the public, and 
        not having charge of the final disposition of the dead human 
        body, shall enclose within the casket, alternate container, or 
        cremation container information provided by the commissioner 
        that includes a blank certificate of death, and a copy of the 
        statutes and rules controlling the removal, preparation, 
        transportation, arrangements for disposition, and final 
        disposition of a dead human body.  This section subdivision does 
        not apply to morticians, funeral directors, funeral 
        establishments, crematories, or wholesale distributors of 
        caskets, alternate containers, or cremation containers. 
           Sec. 16.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RENTAL CASKETS; DECEPTIVE ACTS OR PRACTICES.] In 
        selling or offering to sell funeral goods or, funeral services, 
        burial site goods, or burial site services to the public, it is 
        a deceptive act or practice for a funeral provider to fail to 
        disclose that a casket has been used in a previous funeral 
        ceremony when that is the case. 
           Sec. 17.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RENTAL CASKETS; PREVENTIVE MEASURES.] To prevent 
        deceptive acts or practices, funeral providers must place the 
        following disclosure in immediate conjunction with the prices 
        shown for funeral goods or funeral services where a casket may 
        be rented rather than purchased:  "If you choose a funeral 
        service where a rental casket is provided, the casket used for 
        the funeral service may have been used in a previous funeral 
        service.  If the casket has been used in a previous funeral 
        service, the interior lining has either been replaced or 
        thoroughly cleaned." 
           Sec. 18.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 7, is amended to read: 
           Subd. 7.  [OUTER BURIAL CONTAINER PROVISIONS; DECEPTIVE 
        ACTS OR PRACTICES.] In selling or offering to sell funeral goods 
        or, funeral services, burial site goods, or burial site services 
        to the public, it is a deceptive act or practice for a funeral 
        provider to represent that state or local laws or regulations, 
        or particular cemeteries, require outer burial containers when 
        that is not the case or to fail to disclose to consumers 
        arranging funerals that state law or local law does not require 
        the purchase of an outer burial container. 
           Sec. 19.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 9, is amended to read: 
           Subd. 9.  [GENERAL PROVISIONS ON LEGAL AND CEMETERY 
        REQUIREMENTS; DECEPTIVE ACTS OR PRACTICES.] In selling or 
        offering to sell funeral goods or, funeral services, burial site 
        goods, or burial site services to the public, it is a deceptive 
        act or practice for a funeral provider to represent that 
        federal, state, or local laws, or particular cemeteries or 
        crematories, require the purchase of any funeral goods or, 
        funeral services, burial site goods, or burial site services 
        when that is not the case. 
           Sec. 20.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 10, is amended to read: 
           Subd. 10.  [GENERAL PROVISIONS ON LEGAL AND CEMETERY 
        REQUIREMENTS; PREVENTIVE REQUIREMENTS.] To prevent deceptive 
        acts or practices, funeral providers must identify and briefly 
        describe in writing on the statement of funeral goods and, 
        funeral services, burial site goods, and burial site services 
        selected, as described in section 149A.71, subdivision 2, 
        paragraph (f), any legal, cemetery, or crematory requirement 
        which the funeral provider represents to consumers as compelling 
        the purchase of funeral goods or, funeral services, burial site 
        goods, or burial site services for the funeral which that 
        consumer is arranging. 
           Sec. 21.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 11, is amended to read: 
           Subd. 11.  [PROVISIONS ON PRESERVATIVE AND PROTECTIVE VALUE 
        CLAIMS; DECEPTIVE ACTS OR PRACTICES.] In selling or offering to 
        sell funeral goods or, funeral services, burial site goods, or 
        burial site services to the public, it is a deceptive act or 
        practice for a funeral provider to represent that funeral 
        goods or, funeral services, burial site goods, or burial site 
        services will delay the natural decomposition of human remains 
        for a long term or indefinite time or to represent that funeral 
        goods or burial site goods have protective features, beyond a 
        lid sealing casket, or will protect the body from grave site 
        substances, when that is not the case. 
           Sec. 22.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 12, is amended to read: 
           Subd. 12.  [CASH ADVANCE PROVISIONS; DECEPTIVE ACTS OR 
        PRACTICES.] In selling or offering to sell funeral goods or, 
        funeral services, burial site goods, or burial site services to 
        the public, it is a deceptive act or practice for a funeral 
        provider to represent that the price charged for a cash advance 
        item is the same as the cost to the funeral provider for the 
        item when that is not the case or to fail to disclose to the 
        consumer arranging the funeral that the price charged for a cash 
        advance item is not the same as the cost to the funeral provider 
        when that is not the case. 
           Sec. 23.  Minnesota Statutes 1998, section 149A.72, 
        subdivision 13, is amended to read: 
           Subd. 13.  [CASH ADVANCE PROVISIONS; PREVENTIVE 
        REQUIREMENTS.] To prevent deceptive acts or practices, funeral 
        providers must place the following sentence in the itemized 
        statement of funeral goods and, funeral services, burial site 
        goods, and burial site services selected, in immediate 
        conjunction with the list of itemized cash advance items 
        required by section 149A.71, subdivision 2, paragraph (f):  "We 
        charge you for our services in obtaining (specify cash advance 
        items provided).", if the funeral provider makes a charge upon, 
        or receives and retains a rebate, commission, or trade or volume 
        discount upon a cash advance item. 
           Sec. 24.  Minnesota Statutes 1998, section 149A.73, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CASKET FOR CREMATION PROVISIONS; DECEPTIVE 
        ACTS OR PRACTICES.] In selling or offering to sell funeral goods 
        or, funeral services, burial site goods, or burial site services 
        to the public, it is a deceptive act or practice for a funeral 
        provider to require that a casket be purchased for cremation. 
           Sec. 25.  Minnesota Statutes 1998, section 149A.73, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER REQUIRED PURCHASES OF FUNERAL GOODS OR, 
        FUNERAL SERVICES, BURIAL SITE GOODS, OR BURIAL SITE SERVICES; 
        DECEPTIVE ACTS OR PRACTICES.] (a) In selling or offering to sell 
        funeral goods or, funeral services, burial site goods, or burial 
        site services to the public, it is a deceptive act or practice 
        for a funeral provider to condition the furnishing of any 
        funeral good or, funeral service, burial site good, or burial 
        site service to a consumer arranging a funeral upon the purchase 
        of any other funeral good or, funeral service, burial site good, 
        or burial site service, except as may be otherwise required by 
        law or to charge any fee as a condition to furnishing any 
        funeral goods or, funeral services, burial site goods, or burial 
        site services to a consumer arranging a funeral, other than the 
        fees for services of funeral director and staff, other funeral 
        services and, funeral goods, burial site goods, and burial site 
        services selected by the purchaser, and other funeral goods or, 
        funeral services, burial site goods, or burial site services 
        required to be purchased, as explained on the itemized statement 
        in accordance with section 149A.72, subdivision 10. 
           (b) In selling or offering to sell funeral goods, funeral 
        services, burial site goods, or burial site services to the 
        public, it is a deceptive act or practice for a funeral provider 
        to charge an increased price for the handling, placing, or 
        setting of a funeral good or burial site good based upon the 
        fact that the good was not purchased from that funeral provider. 
           Sec. 26.  Minnesota Statutes 1998, section 149A.73, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OTHER REQUIRED PURCHASES OF FUNERAL GOODS OR, 
        FUNERAL SERVICES, BURIAL SITE GOODS, OR BURIAL SITE SERVICES; 
        PREVENTIVE REQUIREMENTS.] To prevent unfair or deceptive acts or 
        practices, funeral providers must place the following disclosure 
        in the general price list, immediately above the prices required 
        by section 149A.71, subdivision 2, paragraph (e), clauses (4) to 
        (10):  "The goods and services shown below are those we can 
        provide to our customers.  You may choose only the items you 
        desire.  If legal or other requirements mean that you must buy 
        any items you did not specifically ask for, we will explain the 
        reason in writing on the statement we provide describing the 
        funeral goods and, funeral services, burial site goods, and 
        burial site services you selected."  However, if the charge for 
        "services of funeral director and staff" cannot be declined by 
        the purchaser, the statement shall include the sentence 
        "However, any funeral arrangements you select will include a 
        charge for our basic services." between the second and third 
        sentences of the sentences specified in this subdivision.  The 
        statement may include the phrase "and overhead" after the word 
        "services" if the fee includes a charge for the recovery of 
        unallocated funeral overhead.  If the funeral provider does not 
        include this disclosure statement, then the following disclosure 
        statement must be placed in the statement of funeral goods and, 
        funeral services, burial site goods, and burial site services 
        selected, as described in section 149A.71, subdivision 2, 
        paragraph (f):  "Charges are only for those items that you 
        selected or that are required.  If we are required by law or by 
        a cemetery or crematory to use any items, we will explain the 
        reasons in writing below."  A funeral provider is not in 
        violation of this subdivision by failing to comply with a 
        request for a combination of goods or services which would be 
        impossible, impractical, or excessively burdensome to provide. 
           Sec. 27.  Minnesota Statutes 1998, section 149A.73, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [RENTAL OF FUNERAL GOODS.] It is a deceptive act 
        or practice for a funeral provider to require as a condition of 
        providing any funeral good or burial site good that the funeral 
        good or burial site good be purchased by a consumer when rental 
        of the good is practicable. 
           Sec. 28.  [149A.745] [FUNERAL INDUSTRY PRACTICES; 
        PROHIBITION ON PREINTERMENT OF OUTER BURIAL CONTAINERS.] 
           A funeral provider is prohibited from interring a lined and 
        sealed outer burial container until the death of the beneficiary.
           Sec. 29.  Minnesota Statutes 1998, section 149A.75, is 
        amended to read: 
           149A.75 [FUNERAL INDUSTRY PRACTICES; RETENTION OF 
        DOCUMENTS.] 
           Funeral providers must retain and make available for 
        inspection true and accurate copies of the applicable price 
        lists specified in section 149A.71, subdivision 2, paragraphs 
        (c) to (e), for a minimum of one calendar year after the date of 
        their last distribution to customers.  In addition, funeral 
        providers must retain a copy of each statement of funeral goods 
        and, funeral services, burial site goods, and burial site 
        services selected, as described in section 149A.71, subdivision 
        2, paragraph (f), for a minimum of three calendar years from the 
        date of the arrangement conference.  Following this period and 
        subject to any other laws requiring retention of records, the 
        funeral provider may then place the records in storage or reduce 
        them to microfilm, microfiche, laser disc, or any other method 
        that can produce an accurate reproduction of the original 
        record, for retention for a period of ten calendar years from 
        the date of the arrangement conference.  At the end of this 
        period and subject to any other laws requiring retention of 
        records, the funeral provider may destroy the records by 
        shredding, incineration, or any other manner that protects the 
        privacy of the individuals identified in the records. 
           Sec. 30.  Minnesota Statutes 1998, section 149A.97, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE AND INTENT.] It is the intent of 
        the legislature that this section be construed as a limitation 
        upon the manner in which a funeral provider is permitted to 
        accept funds in prepayment of funeral services or burial site 
        services to be performed in the future or in prepayment of 
        funeral or burial goods to be used in connection with the final 
        disposition of human remains. It is further intended to allow 
        members of the public to arrange and pay for funerals, funeral 
        services, funeral or burial goods, or final dispositions funeral 
        goods, funeral services, burial site goods, or burial site 
        services for themselves and their families in advance of need 
        while at the same time providing all possible safeguards so that 
        the prepaid funds cannot be dissipated, whether intentionally or 
        not, so as to be available for the payment of the services and 
        goods selected. 
           Sec. 31.  Minnesota Statutes 1998, section 149A.97, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SCOPE AND REQUIREMENTS.] This section shall not 
        apply to any funeral goods or burial site goods purchased and 
        delivered, either at purchase or within a commercially 
        reasonable amount of time thereafter.  When prior to the death 
        of any person, that person or another, on behalf of that person, 
        enters into any transaction, makes a contract, or any series or 
        combination of transactions or contracts with a funeral provider 
        lawfully doing business in Minnesota, other than an insurance 
        company licensed to do business in Minnesota selling approved 
        insurance or annuity products, by the terms of which, goods or 
        services related to the final disposition of that person will be 
        furnished at-need, then the total of all money paid by the terms 
        of the transaction, contract, or series or combination of 
        transactions or contracts shall be held in trust for the purpose 
        for which it has been paid.  The person for whose benefit the 
        money was paid shall be known as the beneficiary, the person or 
        persons who paid the money shall be known as the purchaser, and 
        the funeral provider shall be known as the depositor. 
           Sec. 32.  Minnesota Statutes 1998, section 149A.97, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NATURE OF TRUST.] Except as provided in this 
        section, nothing in this section shall abate the rights, duties, 
        and powers granted under chapters 501B and 520.  A trust created 
        for the holding of preneed arrangement funds shall be revocable, 
        in its entirety, unless specifically limited by the person 
        purchasing the preneed funeral goods and or services, funeral 
        services, burial site goods, or burial site services.  If the 
        purchaser chooses to limit the revocability of the trust funds, 
        the limitation must be declared in the trust instrument and must 
        be limited to an amount equivalent to the allowable supplemental 
        security income asset exclusion used for determining eligibility 
        for public assistance at the time the trust is created.  
           Sec. 33.  Minnesota Statutes 1998, section 149A.97, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [REQUIREMENTS FOR PRENEED FUNERAL 
        AGREEMENTS.] It is unlawful for any person residing or doing 
        business in this state to enter a preneed funeral agreement 
        unless the agreement: 
           (1) is written in clear, understandable language and 
        printed in a type that is easy to read in size and style; 
           (2) contains a complete, itemized description of the 
        funeral goods, funeral services, burial site goods, or burial 
        site services selected or purchased, including, when 
        appropriate, manufacturer's name, model numbers, style numbers, 
        and description of the type of material used in construction; 
           (3) discloses clearly and conspicuously whether the prices 
        of the goods and services selected are guaranteed; 
           (4) discloses that funding options for a preneed funeral 
        agreement consist of either prepayment to the funeral provider 
        or the purchase of an insurance policy; 
           (5) discloses whether the funds received from the purchaser 
        are required to be placed in a trust and, if the funds are 
        required to be placed in a trust, provides the following 
        information: 
           (i) lists the location of the trust account, including the 
        name, address, and telephone number of the institution where the 
        money will be held and any identifying account numbers, the 
        amount of money to be trusted, and the names of the trustees; 
        and 
           (ii) advises the purchaser as to the disposition of the 
        interest from the trust and as to responsibility for taxes owed 
        on the interest; 
           (6) contains the names, addresses, and telephone numbers of 
        the Minnesota department of health as the regulatory agency for 
        preneed trust accounts and the Minnesota attorney general's 
        office as the regulatory agency that handles consumer 
        complaints; 
           (7) discloses clearly and conspicuously that any person who 
        makes payment under a preneed funeral agreement may cancel the 
        agreement subject to the procedures for cancellation specified 
        in subdivision 6a; 
           (8) contains the following statement, in bold-faced type 
        and a minimum size of ten points: 
           "Within 15 calendar days after receipt of any money 
        required to be held in trust, all such money must be deposited 
        in a banking institution, savings association, or credit union, 
        organized under state or federal laws, the accounts of which are 
        insured by an instrumentality of the federal government.  The 
        person for whose benefit the money was paid according to this 
        agreement shall be known as the beneficiary; the person or 
        persons who paid the money shall be known as the purchaser; and 
        the funeral provider shall be known as the depositor.  The money 
        must be carried in a separate account with the names of the 
        depositor and the purchaser as trustees for the beneficiary. 
           The preneed arrangement trust shall be considered an asset 
        of the purchaser until the death of the beneficiary.  At the 
        death of the beneficiary, the money in the trust shall be 
        considered an asset of the beneficiary's estate, to the extent 
        that the value of the trust exceeds the actual value for the 
        goods and services provided at-need.  This does not alter any 
        asset exclusion requirements that exist under federal law.  The 
        depositor as trustee must disclose in writing the location of 
        the trust account, including the name and address of the 
        institution where the money is being held and any identifying 
        account numbers, to the beneficiary when the money is deposited 
        and when there are any subsequent changes to the location of the 
        trust account."; 
           (9) for agreements with revocable trusts, contains the 
        following statement, in bold-faced type and a minimum size of 
        ten points: 
           "REVOCABLE TRUST: 
           The preneed arrangement trust being created by the 
        purchaser is revocable.  These trust funds, including all 
        principal and accrued interest, are the purchaser's assets.  The 
        purchaser may withdraw the principal and accrued interest at any 
        time prior to the death of the beneficiary.  At the death of the 
        beneficiary, the funds shall be distributed in their entirety, 
        principal plus accrued interest, with no fees retained by the 
        trustees as administrative fees.  The funds shall be distributed 
        for the payment of the at-need funeral goods, funeral services, 
        burial site goods, or burial site services selected, with any 
        excess funds distributed to the beneficiary's estate.  At any 
        time before or at the time of the beneficiary's death, the 
        purchaser may transfer the preneed arrangements and related 
        trust funds for use in the payment of funeral goods, funeral 
        services, burial site goods, or burial site services.  The 
        purchaser may not be charged any fee in connection with the 
        transfer of a preneed arrangement and trust funds."; 
           (10) for agreements with irrevocable trusts, contains the 
        following statement, in bold-faced type and a minimum size of 
        ten points: 
           "IRREVOCABLE TRUST: 
           A trust created to hold preneed arrangement funds is 
        revocable in its entirety unless specifically limited by the 
        purchaser.  The purchaser has chosen to create an irrevocable 
        trust in the amount of $ (insert the dollar amount of the 
        purchaser's irrevocable trust).  The revocable portion of this 
        trust fund is limited to that amount that exceeds the allowable 
        supplemental security income asset exclusion used for 
        determining eligibility for public assistance at the time the 
        trust is created.  The principal and accrued interest may not be 
        withdrawn from the trust prior to the beneficiary's death, 
        except to the extent that the trust funds exceed the irrevocable 
        trust limitation.  At the time of the beneficiary's death, the 
        funds shall be distributed in their entirety, principal plus 
        accrued interest, with no fees retained by the trustees as 
        administrative fees.  The funds shall be distributed for the 
        payment of the at-need funeral goods, funeral services, burial 
        site goods, or burial site services selected, with any excess 
        funds distributed to the beneficiary's estate.  At any time 
        prior to or at the time of the beneficiary's death, the 
        purchaser may transfer the preneed arrangements and trust funds 
        for use in the payment of funeral goods, funeral services, 
        burial site goods, or burial site services.  The purchaser may 
        not be charged any fee in connection with the transfer of a 
        preneed arrangement and trust funds."; 
           (11) provides that if the particular funeral goods, funeral 
        services, burial site goods, or burial site services specified 
        in the agreement are unavailable at the time of delivery, the 
        funeral provider must furnish goods and services similar in 
        style and at least equal in quality to the material and 
        workmanship of the goods or services specified and that the 
        representative of the beneficiary has the right to choose the 
        goods or services to be substituted; and 
           (12) contains an itemization of the sale of grave lots, 
        spaces, lawn crypts, niches, or mausoleum crypts separate from 
        all other goods and services selected. 
           Sec. 34.  Minnesota Statutes 1998, section 149A.97, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [FINANCE CHARGES ON PRENEED ARRANGEMENTS 
        PROHIBITED.] Funeral providers are prohibited from assessing 
        finance charges on preneed arrangements. 
           Sec. 35.  Minnesota Statutes 1998, section 149A.97, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DISBURSEMENT OF TRUST FUNDS.] The funds held in 
        trust, including principal and accrued interest, may be 
        distributed prior to the death of the beneficiary upon demand by 
        the purchaser as specified in subdivision 6a, to the extent that 
        the trust is designated revocable.  At the death of the 
        beneficiary and with satisfactory proof of death provided to the 
        institution holding the trust funds, the funds, including 
        principal and accrued interest, may be distributed by either the 
        depositor as trustee or the purchaser as trustee, subject to 
        section 149A.80.  The funds shall be distributed in their 
        entirety, with no fees to be retained by the trustees as 
        administrative fees.  The funds shall be distributed for the 
        payment of the actual at-need value of the funeral goods and/or, 
        funeral services, burial site goods, or burial site services 
        selected with any excess funds distributed to the estate of the 
        decedent. 
           Sec. 36.  Minnesota Statutes 1998, section 149A.97, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [CANCELLATION OF AGREEMENT FOR PRENEED 
        ARRANGEMENTS.] (a) If a purchaser cancels an agreement for an 
        irrevocable trust for preneed arrangements at any time before 
        midnight of the third business day after the date of the 
        agreement, the purchaser shall receive a refund of all 
        consideration paid according to the agreement.  The refund must 
        be distributed to the purchaser within 15 business days 
        following receipt by the funeral provider of the cancellation 
        notice from the purchaser.  
           (b) If the purchaser cancels an agreement for a revocable 
        trust for preneed arrangements at any time after the date of the 
        agreement, all funds held in a revocable trust, including all 
        principal and accrued interest, must be distributed to the 
        purchaser within 15 business days following receipt by the 
        funeral provider of the cancellation notice. 
           (c) Cancellation is evidenced by the purchaser giving 
        written notice of cancellation to the funeral provider at the 
        address provided in the agreement.  Notice of cancellation, if 
        given by mail, is effective upon deposit in a mailbox, properly 
        addressed to the funeral provider and postage prepaid.  Notice 
        of cancellation need not take any specific form and is 
        sufficient if it indicates, by any form of written expression, 
        the intention of the purchaser not to be bound by the agreement. 
           Sec. 37.  Minnesota Statutes 1998, section 149A.97, 
        subdivision 9, is amended to read: 
           Subd. 9.  [REQUIRED RECORDS.] Every funeral provider 
        lawfully doing business in Minnesota that accepts funds under 
        subdivision 2 must create and maintain on its premises or other 
        business location in Minnesota an accurate record of every trust 
        fund established with the funeral provider as trustee.  The 
        record must contain the following information: 
           (1) the names of the purchaser, beneficiary, and depositor; 
           (2) the date, location, identifying account numbers, and 
        amount of the funds originally deposited; 
           (3) any subsequent changes to the location of the account, 
        identifying account number, or trustee designation; 
           (4) the date, amount, and payee of any distributions from 
        the account; and 
           (5) all supporting documentation, including a copy of the 
        original trust agreement, copies of any contracts for the 
        purchase of preneed funeral goods and services, and any other 
        appropriate documentation. 
           Sec. 38.  [RECOMMENDATIONS.] 
           The commissioner of health shall make recommendations by 
        January 15, 2001, to the chairs of the senate health and family 
        security budget division and the house health and human services 
        finance division on whether there is a need for additional 
        funding for ongoing implementation of the regulatory provisions 
        of Minnesota Statutes, chapter 149A, and if so, proposals for an 
        alternative funding source other than the general fund. 
           Sec. 39.  [EFFECTIVE DATE.] 
           Section 10 is effective January 1, 2001. 
           Presented to the governor April 20, 2000 
           Signed by the governor April 24, 2000, 1:36 p.m.