Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes