1.1                          A bill for an act 
  1.2             relating to health; establishing requirements for the 
  1.3             sale of funeral goods and services and preneed funeral 
  1.4             arrangements; modifying the enforcement authority of 
  1.5             the commissioner of health; modifying licensing 
  1.6             requirements for funeral establishments; prohibiting 
  1.7             certain solicitations of sales by funeral providers; 
  1.8             requiring certain disclosures by funeral providers; 
  1.9             prohibiting certain deceptive acts and practices for 
  1.10            funeral providers; establishing requirements for 
  1.11            preneed funeral agreements; amending Minnesota 
  1.12            Statutes 1998, sections 149A.02, subdivision 22, and 
  1.13            by adding subdivisions; 149A.08, subdivisions 1, 3, 4, 
  1.14            and by adding a subdivision; 149A.70, by adding 
  1.15            subdivisions; 149A.71, subdivisions 1, 2, 3, and 4; 
  1.16            149A.72, subdivisions 5, 6, 7, 9, 10, 11, 12, and 13; 
  1.17            149A.73, subdivisions 1, 3, 4, and by adding a 
  1.18            subdivision; 149A.75; and 149A.97, subdivisions 1, 2, 
  1.19            3, 6, 9, and by adding subdivisions; proposing coding 
  1.20            for new law in Minnesota Statutes, chapter 149A. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1998, section 149A.02, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 3a.  [BURIAL SITE GOODS.] "Burial site goods" means 
  1.25  any goods sold or offered for sale or rental directly to the 
  1.26  public for use in connection with the final disposition of a 
  1.27  dead human body. 
  1.28     Sec. 2.  Minnesota Statutes 1998, section 149A.02, is 
  1.29  amended by adding a subdivision to read: 
  1.30     Subd. 3b.  [BURIAL SITE SERVICES.] "Burial site services" 
  1.31  means any services sold or offered for sale directly to the 
  1.32  public for use in connection with the final disposition of a 
  1.33  dead human body. 
  2.1      Sec. 3.  Minnesota Statutes 1998, section 149A.02, 
  2.2   subdivision 22, is amended to read: 
  2.3      Subd. 22.  [FUNERAL PROVIDER.] "Funeral provider" means any 
  2.4   person that sells or offers to sell funeral goods ~~or~~, funeral 
  2.5   services, burial site goods, or burial site services to the 
  2.6   public.  "Funeral provider" does not include monument builders 
  2.7   who sell and install monuments and headstones, with or without 
  2.8   foundations, at retail to the public, but do not sell any other 
  2.9   funeral good, funeral service, burial good, or burial site 
  2.10  service. 
  2.11     Sec. 4.  Minnesota Statutes 1998, section 149A.02, is 
  2.12  amended by adding a subdivision to read: 
  2.13     Subd. 33a.  [PRENEED CONSUMER.] "Preneed consumer" means an 
  2.14  individual who arranges for funeral goods, funeral services, 
  2.15  burial site goods, or burial site services prior to the death of 
  2.16  that individual or another individual, and who funds those goods 
  2.17  or services through prepayment to a funeral provider or through 
  2.18  purchase of an insurance policy. 
  2.19     Sec. 5.  Minnesota Statutes 1998, section 149A.08, 
  2.20  subdivision 1, is amended to read: 
  2.21     Subdivision 1.  [AUTHORIZATION.] In addition to any other 
  2.22  remedy provided by law, the commissioner may issue a cease and 
  2.23  desist order to: 
  2.24     (1) stop a person from violating or threatening to violate 
  2.25  any law, rule, order, stipulation agreement, settlement, 
  2.26  compliance agreement, license, or permit which the commissioner 
  2.27  is empowered to regulate, enforce, or issue; or 
  2.28     (2) prohibit a funeral provider from engaging in the sale 
  2.29  of preneed funeral goods, funeral services, burial site goods, 
  2.30  or burial site services if the funeral provider has been found 
  2.31  in violation of any provision of this chapter. 
  2.32     Sec. 6.  Minnesota Statutes 1998, section 149A.08, is 
  2.33  amended by adding a subdivision to read: 
  2.34     Subd. 2a.  [SALE OF PRENEED GOODS OR SERVICES; CONTENTS OF 
  2.35  ORDER, HEARING, WHEN EFFECTIVE.] (a) This subdivision applies to 
  2.36  cease and desist orders issued pursuant to subdivision 1, clause 
  3.1   (2).  
  3.2      (b) In addition to the requirements of subdivision 2, a 
  3.3   cease and desist order must also specify that the hearing to 
  3.4   which the funeral provider has a right occurs, if requested, 
  3.5   before the order goes into effect and that a timely request for 
  3.6   a hearing automatically stays the cease and desist order.  
  3.7      (c) A request for a hearing must be in writing, must be 
  3.8   delivered to the commissioner by certified mail within 20 
  3.9   calendar days after the funeral provider receives the order, and 
  3.10  must specifically state the reasons for seeking review of the 
  3.11  order.  If the funeral provider fails to request a hearing in 
  3.12  writing within 20 calendar days of receipt of the order, the 
  3.13  cease and desist order becomes the final order of the 
  3.14  commissioner.  If a funeral provider makes a timely request for 
  3.15  a hearing, the cease and desist order is automatically stayed 
  3.16  pending the outcome of the hearing.  The commissioner must 
  3.17  initiate a hearing within 30 calendar days from the date of 
  3.18  receiving the written request for hearing.  The hearing shall be 
  3.19  conducted pursuant to sections 14.57 to 14.62.  No earlier than 
  3.20  ten calendar days but within 30 calendar days of receiving the 
  3.21  presiding administrative law judge's report, the commissioner 
  3.22  shall issue a final order modifying, vacating, or making 
  3.23  permanent the cease and desist order as the facts require. 
  3.24     Sec. 7.  Minnesota Statutes 1998, section 149A.08, 
  3.25  subdivision 3, is amended to read: 
  3.26     Subd. 3.  [REQUEST FOR HEARING; HEARING; AND FINAL ORDER.] 
  3.27  This subdivision applies to cease and desist orders issued 
  3.28  pursuant to subdivision 1, clause (1).  A request for hearing 
  3.29  must be in writing, delivered to the commissioner by certified 
  3.30  mail within 20 calendar days after the receipt of the cease and 
  3.31  desist order, and specifically state the reasons for seeking 
  3.32  review of the order.  The commissioner must initiate a hearing 
  3.33  within 30 calendar days from the date of receipt of the written 
  3.34  request for hearing.  The hearing shall be conducted pursuant to 
  3.35  sections 14.57 to 14.62.  No earlier than ten calendar days but 
  3.36  within 30 calendar days of receipt of the presiding 
  4.1   administrative law judge's report, the commissioner shall issue 
  4.2   a final order modifying, vacating, or making permanent the cease 
  4.3   and desist order as the facts require.  If, within 20 calendar 
  4.4   days of receipt of the cease and desist order, the subject of 
  4.5   the order fails to request a hearing in writing, the cease and 
  4.6   desist order becomes the final order of the commissioner. 
  4.7      Sec. 8.  Minnesota Statutes 1998, section 149A.08, 
  4.8   subdivision 4, is amended to read: 
  4.9      Subd. 4.  [REQUEST FOR STAY.] This subdivision applies to 
  4.10  cease and desist orders issued pursuant to subdivision 1, clause 
  4.11  (1).  When a request for a stay accompanies a timely hearing 
  4.12  request, the commissioner may, in the commissioner's discretion, 
  4.13  grant the stay.  If the commissioner does not grant a requested 
  4.14  stay, the commissioner shall refer the request to the office of 
  4.15  administrative hearings within three working days from the 
  4.16  receipt of the request. Within ten calendar days after receiving 
  4.17  the request from the commissioner, an administrative law judge 
  4.18  shall issue a recommendation to grant or deny the stay.  The 
  4.19  commissioner shall grant or deny the stay within five calendar 
  4.20  days of receiving the administrative law judge's recommendation. 
  4.21     Sec. 9.  Minnesota Statutes 1998, section 149A.70, is 
  4.22  amended by adding a subdivision to read: 
  4.23     Subd. 5a.  [SOLICITATIONS PROHIBITED IN CERTAIN 
  4.24  SITUATIONS.] No funeral provider may directly or indirectly: 
  4.25     (1) call upon an individual at a grave site, in a hospital, 
  4.26  nursing home, hospice, or similar institution or facility, or at 
  4.27  a visitation, wake, or reviewal for the purpose of soliciting 
  4.28  the sale of funeral goods, funeral services, burial site goods, 
  4.29  or burial site services or for the purpose of making 
  4.30  arrangements for a funeral or the final disposition of a dead 
  4.31  human body, without a specific request for solicitation from 
  4.32  that individual; 
  4.33     (2) solicit the sale of funeral goods, funeral services, 
  4.34  burial site goods, or burial site services from an individual 
  4.35  whose impending death is readily apparent, without a specific 
  4.36  request for solicitation from that individual; or 
  5.1      (3) engage in telephone solicitation of an individual who 
  5.2   has the right to control the final disposition of a dead human 
  5.3   body within ten days after the death of the individual whose 
  5.4   body is being disposed, without a specific request for 
  5.5   solicitation from that individual. 
  5.6      This subdivision does not apply to communications between 
  5.7   an individual and a funeral provider who is related to the 
  5.8   individual by blood, adoption, or marriage. 
  5.9      Sec. 10.  Minnesota Statutes 1998, section 149A.70, is 
  5.10  amended by adding a subdivision to read: 
  5.11     Subd. 8.  [DISCLOSURE OF OWNERSHIP AND SALE.] (a) All 
  5.12  funeral establishments and funeral providers must clearly state 
  5.13  by whom they are owned in all business literature, 
  5.14  correspondence, and contracts.  Within 15 days of a change in 
  5.15  ownership of a funeral establishment or funeral provider, the 
  5.16  funeral establishment or funeral provider shall notify all 
  5.17  preneed consumers by first class mail of the change in 
  5.18  ownership.  The notification shall advise the preneed consumers 
  5.19  of their right to transfer all preneed trust funds to a new 
  5.20  funeral provider and shall advise all preneed consumers who have 
  5.21  revocable preneed trusts of their right to terminate the trust 
  5.22  and receive a refund of all principal paid into the trust, plus 
  5.23  interest accrued. 
  5.24     (b) For purposes of this subdivision: 
  5.25     (1) "change in ownership" means: 
  5.26     (i) the sale or transfer of all or substantially all of the 
  5.27  assets of a funeral establishment or funeral provider; 
  5.28     (ii) the sale or transfer of a controlling interest of a 
  5.29  funeral establishment or funeral provider; or 
  5.30     (iii) the termination of the business of a funeral 
  5.31  establishment or funeral provider where there is no transfer of 
  5.32  assets or stock; and 
  5.33     (2) "controlling interest" means: 
  5.34     (i) an interest in a partnership of greater than 50 
  5.35  percent; or 
  5.36     (ii) greater than 50 percent of the issued and outstanding 
  6.1   shares of a stock of a corporation. 
  6.2      Sec. 11.  Minnesota Statutes 1998, section 149A.71, 
  6.3   subdivision 1, is amended to read: 
  6.4      Subdivision 1.  [UNFAIR OR DECEPTIVE ACTS OR PRACTICES.] In 
  6.5   selling or offering to sell funeral goods ~~or~~, funeral services, 
  6.6   burial site goods, or burial site services to the public, it is 
  6.7   an unfair or deceptive act or practice for a funeral provider to 
  6.8   fail to furnish accurate price information disclosing the cost 
  6.9   to the purchaser for each of the specific funeral goods ~~and~~, 
  6.10  funeral services, burial site goods, or burial site services 
  6.11  used in connection with the disposition of dead human bodies to 
  6.12  persons inquiring about the purchase of funerals.  Any funeral 
  6.13  provider who complies with the preventive requirements in 
  6.14  subdivision 2 is not engaged in the unfair or deceptive acts or 
  6.15  practices defined in this section. 
  6.16     Sec. 12.  Minnesota Statutes 1998, section 149A.71, 
  6.17  subdivision 2, is amended to read: 
  6.18     Subd. 2.  [PREVENTIVE REQUIREMENTS.] (a) To prevent unfair 
  6.19  or deceptive acts or practices, the requirements of this 
  6.20  subdivision must be met. 
  6.21     (b) Funeral providers must tell persons who ask by 
  6.22  telephone about the funeral provider's offerings or prices any 
  6.23  accurate information from the price lists described in 
  6.24  paragraphs (c) to (e) and any other readily available 
  6.25  information that reasonably answers the questions asked. 
  6.26     (c) Funeral providers must make available for viewing to 
  6.27  people who inquire in person about the offerings or prices of 
  6.28  funeral goods or burial site goods, separate printed or 
  6.29  typewritten price lists.  Each funeral provider must have a 
  6.30  separate price list for each of the following types of goods 
  6.31  that are sold or offered for sale: 
  6.32     (1) caskets; 
  6.33     (2) alternative containers; 
  6.34     (3) outer burial containers; ~~and~~ 
  6.35     (4) cremation containers and cremated remains containers; 
  6.36     (5) markers; and 
  7.1      (6) headstones. 
  7.2      (d) Each separate price list must contain the name of the 
  7.3   funeral provider's place of business and a caption describing 
  7.4   the list as a price list for one of the types of funeral 
  7.5   goods or burial site goods described in paragraph (c), clauses 
  7.6   (1) to ~~(4)~~ (6).  The funeral provider must offer the list upon 
  7.7   beginning discussion of, but in any event before showing, the 
  7.8   specific funeral goods or burial site goods and must provide a 
  7.9   photocopy of the price list, for retention, if so asked by the 
  7.10  consumer.  The list must contain, at least, the retail prices of 
  7.11  all the specific funeral goods and burial site goods offered 
  7.12  which do not require special ordering, enough information to 
  7.13  identify each, and the effective date for the price list.  In 
  7.14  lieu of a written price list, other formats, such as notebooks, 
  7.15  brochures, or charts may be used if they contain the same 
  7.16  information as would the printed or typewritten list, and 
  7.17  display it in a clear and conspicuous manner.  However, funeral 
  7.18  providers are not required to make a specific price list 
  7.19  available if the funeral providers place the information 
  7.20  required by this paragraph on the general price list described 
  7.21  in paragraph (e). 
  7.22     (e) Funeral providers must give a printed or typewritten 
  7.23  price list, for retention, to persons who inquire in person 
  7.24  about the funeral goods ~~or~~, funeral services, burial site goods, 
  7.25  or burial site services or prices offered by the funeral 
  7.26  provider.  The funeral provider must give the list upon 
  7.27  beginning discussion of either the prices of or the overall type 
  7.28  of funeral service or disposition or specific funeral goods ~~or~~, 
  7.29  funeral services, burial site goods, or burial site services 
  7.30  offered by the provider.  This requirement applies whether the 
  7.31  discussion takes place in the funeral establishment or 
  7.32  elsewhere.  However, when the deceased is removed for 
  7.33  transportation to the funeral establishment, an in-person 
  7.34  request for authorization to embalm does not, by itself, trigger 
  7.35  the requirement to offer the general price list.  If the 
  7.36  provider, in making an in-person request for authorization to 
  8.1   embalm, discloses that embalming is not required by law except 
  8.2   in certain special cases, the provider is not required to offer 
  8.3   the general price list.  Any other discussion during that time 
  8.4   about prices or the selection of funeral goods ~~or~~, funeral 
  8.5   services, burial site goods, or burial site services triggers 
  8.6   the requirement to give the consumer a general price list.  The 
  8.7   general price list must contain the following information: 
  8.8      (1) the name, address, and telephone number of the funeral 
  8.9   provider's place of business; 
  8.10     (2) a caption describing the list as a "general price 
  8.11  list"; 
  8.12     (3) the effective date for the price list; 
  8.13     (4) the retail prices, in any order, expressed either as a 
  8.14  flat fee or as the prices per hour, mile, or other unit of 
  8.15  computation, and other information described as follows: 
  8.16     (i) forwarding of remains to another funeral establishment, 
  8.17  together with a list of the services provided for any quoted 
  8.18  price; 
  8.19     (ii) receiving remains from another funeral establishment, 
  8.20  together with a list of the services provided for any quoted 
  8.21  price; 
  8.22     (iii) separate prices for each cremation offered by the 
  8.23  funeral provider, with the price including an alternative or 
  8.24  cremation container, any crematory charges, and a description of 
  8.25  the services and container included in the price, where 
  8.26  applicable, and the price of cremation where the purchaser 
  8.27  provides the container; 
  8.28     (iv) separate prices for each immediate burial offered by 
  8.29  the funeral provider, including a casket or alternative 
  8.30  container, and a description of the services and container 
  8.31  included in that price, and the price of immediate burial where 
  8.32  the purchaser provides the casket or alternative container; 
  8.33     (v) transfer of remains to the funeral establishment; 
  8.34     (vi) embalming; 
  8.35     (vii) other preparation of the body; 
  8.36     (viii) use of facilities, equipment, or staff for viewing; 
  9.1      (ix) use of facilities, equipment, or staff for funeral 
  9.2   ceremony; 
  9.3      (x) use of facilities, equipment, or staff for memorial 
  9.4   service; 
  9.5      (xi) use of equipment or staff for graveside service; 
  9.6      (xii) hearse or funeral coach; ~~and~~ 
  9.7      (xiii) limousine; and 
  9.8      (xiv) separate prices for all cemetery-specific goods and 
  9.9   services, including all goods and services associated with 
  9.10  interment and burial site goods and services and excluding 
  9.11  markers and headstones; 
  9.12     (5) the price range for the caskets offered by the funeral 
  9.13  provider, together with the statement "A complete price list 
  9.14  will be provided at the funeral establishment or casket sale 
  9.15  location." or the prices of individual caskets, as disclosed in 
  9.16  the manner described in paragraphs (c) and (d); 
  9.17     (6) the price range for the alternative containers offered 
  9.18  by the funeral provider, together with the statement "A complete 
  9.19  price list will be provided at the funeral establishment or 
  9.20  alternative container sale location." or the prices of 
  9.21  individual alternative containers, as disclosed in the manner 
  9.22  described in paragraphs (c) and (d); 
  9.23     (7) the price range for the outer burial containers offered 
  9.24  by the funeral provider, together with the statement "A complete 
  9.25  price list will be provided at the funeral establishment or 
  9.26  outer burial container sale location." or the prices of 
  9.27  individual outer burial containers, as disclosed in the manner 
  9.28  described in paragraphs (c) and (d); 
  9.29     (8) the price range for the cremation containers and 
  9.30  cremated remains containers offered by the funeral provider, 
  9.31  together with the statement "A complete price list will be 
  9.32  provided at the funeral establishment or cremation container 
  9.33  sale location." or the prices of individual cremation containers 
  9.34  and cremated remains containers, as disclosed in the manner 
  9.35  described in paragraphs (c) and (d); 
  9.36     (9) the price for the basic services of funeral ~~director~~ 
 10.1   provider and staff, together with a list of the principal basic 
 10.2   services provided for any quoted price and, if the charge cannot 
 10.3   be declined by the purchaser, the statement "This fee for our 
 10.4   basic services will be added to the total cost of the funeral 
 10.5   arrangements you select.  (This fee is already included in our 
 10.6   charges for direct cremations, immediate burials, and forwarding 
 10.7   or receiving remains.)"  If the charge cannot be declined by the 
 10.8   purchaser, the quoted price shall include all charges for the 
 10.9   recovery of unallocated funeral provider overhead, and funeral 
 10.10  providers may include in the required disclosure the phrase "and 
 10.11  overhead" after the word "services."  This services fee is the 
 10.12  only funeral provider fee for services, facilities, or 
 10.13  unallocated overhead permitted by this subdivision to be 
 10.14  nondeclinable, unless otherwise required by law; 
 10.15     (10) if the price for basic services, as described in 
 10.16  clause (9), is not applicable, the statement "Please note that a 
 10.17  fee for the use of our basic services is included in the price 
 10.18  of our caskets.  Our services include (specify services 
 10.19  provided)."  The fee shall include all charges for the recovery 
 10.20  of unallocated funeral provider overhead, and funeral providers 
 10.21  may include in the required disclosure the phrase "and overhead" 
 10.22  after the word "services."  The statement must be placed on the 
 10.23  general price list, together with the casket price range or the 
 10.24  prices of individual caskets.  This services fee is the only 
 10.25  funeral provider fee for services, facilities, or unallocated 
 10.26  overhead permitted by this subdivision to be nondeclinable, 
 10.27  unless otherwise required by law~~.~~; and 
 10.28     (11) the price range for the markers and headstones offered 
 10.29  by the funeral provider, together with the statement "A complete 
 10.30  price list will be provided at the funeral establishment or 
 10.31  marker or headstone sale location." or the prices of individual 
 10.32  markers and headstones, as disclosed in the manner described in 
 10.33  paragraphs (c) and (d). 
 10.34     (f) Funeral providers must give an itemized written 
 10.35  statement, for retention, to each consumer who arranges a 
 10.36  funeral or other disposition of human remains at the conclusion 
 11.1   of the discussion of the arrangements.  The itemized written 
 11.2   statement must be signed by the consumer selecting the goods and 
 11.3   services ~~and~~.  If the statement is provided at a funeral 
 11.4   establishment, the statement must be signed by the licensed 
 11.5   funeral director or mortician planning the arrangements.  If the 
 11.6   statement is provided by any other funeral provider, the 
 11.7   statement must be signed by an authorized agent of the funeral 
 11.8   provider.  The statement must list the funeral goods ~~and~~, 
 11.9   funeral services, burial site goods, or burial site services 
 11.10  selected by that consumer and the prices to be paid for each 
 11.11  item, specifically itemized cash advance items (these prices 
 11.12  must be given to the extent then known or reasonably 
 11.13  ascertainable if the prices are not known or reasonably 
 11.14  ascertainable, a good faith estimate shall be given and a 
 11.15  written statement of the actual charges shall be provided before 
 11.16  the final bill is paid), and the total cost of goods and 
 11.17  services selected.  The information required by this paragraph 
 11.18  may be included on any contract, statement, or other document 
 11.19  which the funeral provider would otherwise provide at the 
 11.20  conclusion of discussion of arrangements. 
 11.21     (g) Funeral providers must give any other price 
 11.22  information, in any other format, in addition to that required 
 11.23  by paragraphs (c) to (e) so long as the written statement 
 11.24  required by paragraph (f) is given when required. 
 11.25     (h) Upon receiving actual notice of the death of an 
 11.26  individual with whom a funeral provider has entered a preneed 
 11.27  funeral agreement, the funeral provider must provide a copy of 
 11.28  all preneed funeral agreement documents to the person who 
 11.29  controls final disposition of the human remains or to the 
 11.30  designee of the person controlling disposition.  The person 
 11.31  controlling disposition shall be provided with these documents 
 11.32  at the time of the person's first contact with the funeral 
 11.33  provider, if the first contact occurs in person at a funeral 
 11.34  establishment, crematory, or other place of business of the 
 11.35  funeral provider.  If the contact occurs by other means or at 
 11.36  another location, the documents must be provided within 24 hours 
 12.1   of the first contact. 
 12.2      Sec. 13.  Minnesota Statutes 1998, section 149A.71, 
 12.3   subdivision 3, is amended to read: 
 12.4      Subd. 3.  [PRICES DISPLAYED.] Any funeral provider who 
 12.5   sells or offers to sell funeral goods or burial site goods to 
 12.6   the public shall, at all times, display the retail price of all 
 12.7   displayed funeral goods or burial site goods in a conspicuous 
 12.8   place on the goods.  "Conspicuous place" means a place where any 
 12.9   consumer viewing the funeral goods or burial site goods would be 
 12.10  able to see and read the price and reasonably understand that 
 12.11  the price seen is the price of the funeral goods or burial site 
 12.12  goods viewed.  Displayed funeral goods or burial site goods are 
 12.13  those goods that the funeral provider regularly maintains in 
 12.14  inventory and makes available for viewing and purchase by the 
 12.15  consumer. 
 12.16     Sec. 14.  Minnesota Statutes 1998, section 149A.71, 
 12.17  subdivision 4, is amended to read: 
 12.18     Subd. 4.  [CASKET, ALTERNATE CONTAINER, AND CREMATION 
 12.19  CONTAINER SALES; RECORDS; REQUIRED DISCLOSURES.] Any funeral 
 12.20  provider who sells or offers to sell a casket, alternate 
 12.21  container, or cremation container to the public must maintain a 
 12.22  record of each sale that includes the name of the purchaser, the 
 12.23  purchaser's mailing address, the name of the decedent, the date 
 12.24  of the decedent's death, and the place of death.  These records 
 12.25  shall be open to inspection by the commissioner and reported to 
 12.26  the commissioner.  Any funeral provider selling a casket, 
 12.27  alternate container, or cremation container to the public, and 
 12.28  not having charge of the final disposition of the dead human 
 12.29  body, shall enclose within the casket, alternate container, or 
 12.30  cremation container information provided by the commissioner 
 12.31  that includes a blank certificate of death, and a copy of the 
 12.32  statutes and rules controlling the removal, preparation, 
 12.33  transportation, arrangements for disposition, and final 
 12.34  disposition of a dead human body.  This ~~section~~ subdivision does 
 12.35  not apply to morticians, funeral directors, funeral 
 12.36  establishments, crematories, or wholesale distributors of 
 13.1   caskets, alternate containers, or cremation containers. 
 13.2      Sec. 15.  Minnesota Statutes 1998, section 149A.72, 
 13.3   subdivision 5, is amended to read: 
 13.4      Subd. 5.  [RENTAL CASKETS; DECEPTIVE ACTS OR PRACTICES.] In 
 13.5   selling or offering to sell funeral goods ~~or~~, funeral services, 
 13.6   burial site goods, or burial site services to the public, it is 
 13.7   a deceptive act or practice for a funeral provider to fail to 
 13.8   disclose that a casket has been used in a previous funeral 
 13.9   ceremony when that is the case. 
 13.10     Sec. 16.  Minnesota Statutes 1998, section 149A.72, 
 13.11  subdivision 6, is amended to read: 
 13.12     Subd. 6.  [RENTAL CASKETS; PREVENTIVE MEASURES.] To prevent 
 13.13  deceptive acts or practices, funeral providers must place the 
 13.14  following disclosure in immediate conjunction with the prices 
 13.15  shown for funeral goods or funeral services where a casket may 
 13.16  be rented rather than purchased:  "If you choose a funeral 
 13.17  service where a rental casket is provided, the casket used for 
 13.18  the funeral service may have been used in a previous funeral 
 13.19  service.  If the casket has been used in a previous funeral 
 13.20  service, the interior lining has either been replaced or 
 13.21  thoroughly cleaned." 
 13.22     Sec. 17.  Minnesota Statutes 1998, section 149A.72, 
 13.23  subdivision 7, is amended to read: 
 13.24     Subd. 7.  [OUTER BURIAL CONTAINER PROVISIONS; DECEPTIVE 
 13.25  ACTS OR PRACTICES.] In selling or offering to sell funeral goods 
 13.26  ~~or~~, funeral services, burial site goods, or burial site services 
 13.27  to the public, it is a deceptive act or practice for a funeral 
 13.28  provider to represent that state or local laws or regulations, 
 13.29  or particular cemeteries, require outer burial containers when 
 13.30  that is not the case or to fail to disclose to consumers 
 13.31  arranging funerals that state law or local law does not require 
 13.32  the purchase of an outer burial container. 
 13.33     Sec. 18.  Minnesota Statutes 1998, section 149A.72, 
 13.34  subdivision 9, is amended to read: 
 13.35     Subd. 9.  [GENERAL PROVISIONS ON LEGAL AND CEMETERY 
 13.36  REQUIREMENTS; DECEPTIVE ACTS OR PRACTICES.] In selling or 
 14.1   offering to sell funeral goods ~~or~~, funeral services, burial site 
 14.2   goods, or burial site services to the public, it is a deceptive 
 14.3   act or practice for a funeral provider to represent that 
 14.4   federal, state, or local laws, or particular cemeteries or 
 14.5   crematories, require the purchase of any funeral goods ~~or~~, 
 14.6   funeral services, burial site goods, or burial site services 
 14.7   when that is not the case. 
 14.8      Sec. 19.  Minnesota Statutes 1998, section 149A.72, 
 14.9   subdivision 10, is amended to read: 
 14.10     Subd. 10.  [GENERAL PROVISIONS ON LEGAL AND CEMETERY 
 14.11  REQUIREMENTS; PREVENTIVE REQUIREMENTS.] To prevent deceptive 
 14.12  acts or practices, funeral providers must identify and briefly 
 14.13  describe in writing on the statement of funeral goods ~~and~~, 
 14.14  funeral services, burial site goods, and burial site services 
 14.15  selected, as described in section 149A.71, subdivision 2, 
 14.16  paragraph (f), any legal, cemetery, or crematory requirement 
 14.17  which the funeral provider represents to consumers as compelling 
 14.18  the purchase of funeral goods ~~or~~, funeral services, burial site 
 14.19  goods, or burial site services for the funeral which that 
 14.20  consumer is arranging. 
 14.21     Sec. 20.  Minnesota Statutes 1998, section 149A.72, 
 14.22  subdivision 11, is amended to read: 
 14.23     Subd. 11.  [PROVISIONS ON PRESERVATIVE AND PROTECTIVE VALUE 
 14.24  CLAIMS; DECEPTIVE ACTS OR PRACTICES.] In selling or offering to 
 14.25  sell funeral goods ~~or~~, funeral services, burial site goods, or 
 14.26  burial site services to the public, it is a deceptive act or 
 14.27  practice for a funeral provider to represent that funeral 
 14.28  goods ~~or~~, funeral services, burial site goods, or burial site 
 14.29  services will delay the natural decomposition of human remains 
 14.30  for a long term or indefinite time or to represent that funeral 
 14.31  goods or burial site goods have protective features, beyond a 
 14.32  lid sealing casket, or will protect the body from grave site 
 14.33  substances, when that is not the case. 
 14.34     Sec. 21.  Minnesota Statutes 1998, section 149A.72, 
 14.35  subdivision 12, is amended to read: 
 14.36     Subd. 12.  [CASH ADVANCE PROVISIONS; DECEPTIVE ACTS OR 
 15.1   PRACTICES.] In selling or offering to sell funeral goods ~~or~~, 
 15.2   funeral services, burial site goods, or burial site services to 
 15.3   the public, it is a deceptive act or practice for a funeral 
 15.4   provider to represent that the price charged for a cash advance 
 15.5   item is the same as the cost to the funeral provider for the 
 15.6   item when that is not the case or to fail to disclose to the 
 15.7   consumer arranging the funeral that the price charged for a cash 
 15.8   advance item is not the same as the cost to the funeral provider 
 15.9   when that is not the case. 
 15.10     Sec. 22.  Minnesota Statutes 1998, section 149A.72, 
 15.11  subdivision 13, is amended to read: 
 15.12     Subd. 13.  [CASH ADVANCE PROVISIONS; PREVENTIVE 
 15.13  REQUIREMENTS.] To prevent deceptive acts or practices, funeral 
 15.14  providers must place the following sentence in the itemized 
 15.15  statement of funeral goods ~~and~~, funeral services, burial site 
 15.16  goods, and burial site services selected, in immediate 
 15.17  conjunction with the list of itemized cash advance items 
 15.18  required by section 149A.71, subdivision 2, paragraph (f):  "We 
 15.19  charge you for our services in obtaining (specify cash advance 
 15.20  items provided).", if the funeral provider makes a charge upon, 
 15.21  or receives and retains a rebate, commission, or trade or volume 
 15.22  discount upon a cash advance item. 
 15.23     Sec. 23.  Minnesota Statutes 1998, section 149A.73, 
 15.24  subdivision 1, is amended to read: 
 15.25     Subdivision 1.  [CASKET FOR CREMATION PROVISIONS; DECEPTIVE 
 15.26  ACTS OR PRACTICES.] In selling or offering to sell funeral goods 
 15.27  ~~or~~, funeral services, burial site goods, or burial site services 
 15.28  to the public, it is a deceptive act or practice for a funeral 
 15.29  provider to require that a casket be purchased for cremation. 
 15.30     Sec. 24.  Minnesota Statutes 1998, section 149A.73, 
 15.31  subdivision 3, is amended to read: 
 15.32     Subd. 3.  [OTHER REQUIRED PURCHASES OF FUNERAL GOODS ~~OR~~, 
 15.33  FUNERAL SERVICES, BURIAL SITE GOODS, OR BURIAL SITE SERVICES; 
 15.34  DECEPTIVE ACTS OR PRACTICES.] (a) In selling or offering to sell 
 15.35  funeral goods ~~or~~, funeral services, burial site goods, or burial 
 15.36  site services to the public, it is a deceptive act or practice 
 16.1   for a funeral provider to condition the furnishing of any 
 16.2   funeral good ~~or~~, funeral service, burial site good, or burial 
 16.3   site service to a consumer arranging a funeral upon the purchase 
 16.4   of any other funeral good ~~or~~, funeral service, burial site good, 
 16.5   or burial site service, except as may be otherwise required by 
 16.6   law or to charge any fee as a condition to furnishing any 
 16.7   funeral goods ~~or~~, funeral services, burial site goods, or burial 
 16.8   site services to a consumer arranging a funeral, other than the 
 16.9   fees for services of funeral director and staff, other funeral 
 16.10  services ~~and~~, funeral goods, burial site goods, and burial site 
 16.11  services selected by the purchaser, and other funeral goods ~~or~~, 
 16.12  funeral services, burial site goods, or burial site services 
 16.13  required to be purchased, as explained on the itemized statement 
 16.14  in accordance with section 149A.72, subdivision 10. 
 16.15     (b) In selling or offering to sell funeral goods, funeral 
 16.16  services, burial site goods, or burial site services to the 
 16.17  public, it is a deceptive act or practice for a funeral provider 
 16.18  to charge an increased price for the handling, placing, or 
 16.19  setting of a funeral good or burial site good based upon the 
 16.20  fact that the good was not purchased from that funeral provider. 
 16.21     Sec. 25.  Minnesota Statutes 1998, section 149A.73, 
 16.22  subdivision 4, is amended to read: 
 16.23     Subd. 4.  [OTHER REQUIRED PURCHASES OF FUNERAL GOODS ~~OR~~, 
 16.24  FUNERAL SERVICES, BURIAL SITE GOODS, OR BURIAL SITE SERVICES; 
 16.25  PREVENTIVE REQUIREMENTS.] To prevent unfair or deceptive acts or 
 16.26  practices, funeral providers must place the following disclosure 
 16.27  in the general price list, immediately above the prices required 
 16.28  by section 149A.71, subdivision 2, paragraph (e), clauses (4) to 
 16.29  (10):  "The goods and services shown below are those we can 
 16.30  provide to our customers.  You may choose only the items you 
 16.31  desire.  If legal or other requirements mean that you must buy 
 16.32  any items you did not specifically ask for, we will explain the 
 16.33  reason in writing on the statement we provide describing the 
 16.34  funeral goods ~~and~~, funeral services, burial site goods, and 
 16.35  burial site services you selected."  However, if the charge for 
 16.36  "services of funeral director and staff" cannot be declined by 
 17.1   the purchaser, the statement shall include the sentence 
 17.2   "However, any funeral arrangements you select will include a 
 17.3   charge for our basic services." between the second and third 
 17.4   sentences of the sentences specified in this subdivision.  The 
 17.5   statement may include the phrase "and overhead" after the word 
 17.6   "services" if the fee includes a charge for the recovery of 
 17.7   unallocated funeral overhead.  If the funeral provider does not 
 17.8   include this disclosure statement, then the following disclosure 
 17.9   statement must be placed in the statement of funeral goods ~~and~~, 
 17.10  funeral services, burial site goods, and burial site services 
 17.11  selected, as described in section 149A.71, subdivision 2, 
 17.12  paragraph (f):  "Charges are only for those items that you 
 17.13  selected or that are required.  If we are required by law or by 
 17.14  a cemetery or crematory to use any items, we will explain the 
 17.15  reasons in writing below."  A funeral provider is not in 
 17.16  violation of this subdivision by failing to comply with a 
 17.17  request for a combination of goods or services which would be 
 17.18  impossible, impractical, or excessively burdensome to provide. 
 17.19     Sec. 26.  Minnesota Statutes 1998, section 149A.73, is 
 17.20  amended by adding a subdivision to read: 
 17.21     Subd. 5.  [RENTAL OF FUNERAL GOODS.] It is a deceptive act 
 17.22  or practice for a funeral provider to require as a condition of 
 17.23  providing any funeral good or burial site good that the funeral 
 17.24  good or burial site good be purchased by a consumer when rental 
 17.25  of the good is practicable. 
 17.26     Sec. 27.  [149A.745] [FUNERAL INDUSTRY PRACTICES; 
 17.27  PROHIBITION ON PREINTERMENT OF OUTER BURIAL CONTAINERS.] 
 17.28     A funeral provider is prohibited from interring a lined and 
 17.29  sealed outer burial container until the death of the beneficiary.
 17.30     Sec. 28.  Minnesota Statutes 1998, section 149A.75, is 
 17.31  amended to read: 
 17.32     149A.75 [FUNERAL INDUSTRY PRACTICES; RETENTION OF 
 17.33  DOCUMENTS.] 
 17.34     Funeral providers must retain and make available for 
 17.35  inspection true and accurate copies of the applicable price 
 17.36  lists specified in section 149A.71, subdivision 2, paragraphs 
 18.1   (c) to (e), for a minimum of one calendar year after the date of 
 18.2   their last distribution to customers.  In addition, funeral 
 18.3   providers must retain a copy of each statement of funeral goods 
 18.4   ~~and~~, funeral services, burial site goods, and burial site 
 18.5   services selected, as described in section 149A.71, subdivision 
 18.6   2, paragraph (f), for a minimum of three calendar years from the 
 18.7   date of the arrangement conference.  Following this period and 
 18.8   subject to any other laws requiring retention of records, the 
 18.9   funeral provider may then place the records in storage or reduce 
 18.10  them to microfilm, microfiche, laser disc, or any other method 
 18.11  that can produce an accurate reproduction of the original 
 18.12  record, for retention for a period of ten calendar years from 
 18.13  the date of the arrangement conference.  At the end of this 
 18.14  period and subject to any other laws requiring retention of 
 18.15  records, the funeral provider may destroy the records by 
 18.16  shredding, incineration, or any other manner that protects the 
 18.17  privacy of the individuals identified in the records. 
 18.18     Sec. 29.  Minnesota Statutes 1998, section 149A.97, 
 18.19  subdivision 1, is amended to read: 
 18.20     Subdivision 1.  [PURPOSE AND INTENT.] It is the intent of 
 18.21  the legislature that this section be construed as a limitation 
 18.22  upon the manner in which a funeral provider is permitted to 
 18.23  accept funds in prepayment of funeral services or burial site 
 18.24  services to be performed in the future or in prepayment of 
 18.25  funeral or burial goods to be used in connection with the final 
 18.26  disposition of human remains. It is further intended to allow 
 18.27  members of the public to arrange and pay for ~~funerals, funeral~~ 
 18.28  ~~services, funeral or burial goods, or final dispositions~~ funeral 
 18.29  goods, funeral services, burial site goods, or burial site 
 18.30  services for themselves and their families in advance of need 
 18.31  while at the same time providing all possible safeguards so that 
 18.32  the prepaid funds cannot be dissipated, whether intentionally or 
 18.33  not, so as to be available for the payment of the services and 
 18.34  goods selected. 
 18.35     Sec. 30.  Minnesota Statutes 1998, section 149A.97, 
 18.36  subdivision 2, is amended to read: 
 19.1      Subd. 2.  [SCOPE AND REQUIREMENTS.] This section shall not 
 19.2   apply to any funeral goods or burial site goods purchased and 
 19.3   delivered, either at purchase or within a commercially 
 19.4   reasonable amount of time thereafter.  When prior to the death 
 19.5   of any person, that person or another, on behalf of that person, 
 19.6   enters into any transaction, makes a contract, or any series or 
 19.7   combination of transactions or contracts with a funeral provider 
 19.8   lawfully doing business in Minnesota, other than an insurance 
 19.9   company licensed to do business in Minnesota selling approved 
 19.10  insurance or annuity products, by the terms of which, goods or 
 19.11  services related to the final disposition of that person will be 
 19.12  furnished at-need, then the total of all money paid by the terms 
 19.13  of the transaction, contract, or series or combination of 
 19.14  transactions or contracts shall be held in trust for the purpose 
 19.15  for which it has been paid.  The person for whose benefit the 
 19.16  money was paid shall be known as the beneficiary, the person or 
 19.17  persons who paid the money shall be known as the purchaser, and 
 19.18  the funeral provider shall be known as the depositor. 
 19.19     Sec. 31.  Minnesota Statutes 1998, section 149A.97, 
 19.20  subdivision 3, is amended to read: 
 19.21     Subd. 3.  [NATURE OF TRUST.] Except as provided in this 
 19.22  section, nothing in this section shall abate the rights, duties, 
 19.23  and powers granted under chapters 501B and 520.  A trust created 
 19.24  for the holding of preneed arrangement funds shall be revocable, 
 19.25  in its entirety, unless specifically limited by the person 
 19.26  purchasing the preneed funeral goods ~~and or services~~, funeral 
 19.27  services, burial site goods, or burial site services.  If the 
 19.28  purchaser chooses to limit the revocability of the trust funds, 
 19.29  the limitation must be declared in the trust instrument and must 
 19.30  be limited to an amount equivalent to the allowable supplemental 
 19.31  security income asset exclusion used for determining eligibility 
 19.32  for public assistance at the time the trust is created.  
 19.33     Sec. 32.  Minnesota Statutes 1998, section 149A.97, is 
 19.34  amended by adding a subdivision to read: 
 19.35     Subd. 3a.  [REQUIREMENTS FOR PRENEED FUNERAL 
 19.36  AGREEMENTS.] It is unlawful for any person residing or doing 
 20.1   business in this state to enter a preneed funeral agreement 
 20.2   unless the agreement: 
 20.3      (1) is written in clear, understandable language and 
 20.4   printed in a type that is easy to read in size and style; 
 20.5      (2) contains a complete, itemized description of the 
 20.6   funeral goods, funeral services, burial site goods, or burial 
 20.7   site services selected or purchased, including, when 
 20.8   appropriate, manufacturer's name, model numbers, style numbers, 
 20.9   and description of the type of material used in construction; 
 20.10     (3) discloses clearly and conspicuously whether the prices 
 20.11  of the goods and services selected are guaranteed; 
 20.12     (4) discloses that funding options for a preneed funeral 
 20.13  agreement consist of either prepayment to the funeral provider 
 20.14  or the purchase of an insurance policy; 
 20.15     (5) discloses whether the funds received from the purchaser 
 20.16  are required to be placed in a trust and, if the funds are 
 20.17  required to be placed in a trust, provides the following 
 20.18  information: 
 20.19     (i) lists the location of the trust account, including the 
 20.20  name, address, and telephone number of the institution where the 
 20.21  money will be held and any identifying account numbers, the 
 20.22  amount of money to be trusted, and the names of the trustees; 
 20.23  and 
 20.24     (ii) advises the purchaser as to the disposition of the 
 20.25  interest from the trust and as to responsibility for taxes owed 
 20.26  on the interest; 
 20.27     (6) contains the names, addresses, and telephone numbers of 
 20.28  the Minnesota department of health as the regulatory agency for 
 20.29  preneed trust accounts and the Minnesota attorney general's 
 20.30  office as the regulatory agency that handles consumer 
 20.31  complaints; 
 20.32     (7) discloses clearly and conspicuously that any person who 
 20.33  makes payment under a preneed funeral agreement may cancel the 
 20.34  agreement subject to the procedures for cancellation specified 
 20.35  in subdivision 6a; 
 20.36     (8) contains the following statement, in bold-faced type 
 21.1   and a minimum size of ten points: 
 21.2      "Within 15 calendar days after receipt of any money 
 21.3   required to be held in trust, all such money must be deposited 
 21.4   in a banking institution, savings association, or credit union, 
 21.5   organized under state or federal laws, the accounts of which are 
 21.6   insured by an instrumentality of the federal government.  The 
 21.7   person for whose benefit the money was paid according to this 
 21.8   agreement shall be known as the beneficiary; the person or 
 21.9   persons who paid the money shall be known as the purchaser; and 
 21.10  the funeral provider shall be known as the depositor.  The money 
 21.11  must be carried in a separate account with the names of the 
 21.12  depositor and the purchaser as trustees for the beneficiary. 
 21.13     The preneed arrangement trust shall be considered an asset 
 21.14  of the purchaser until the death of the beneficiary.  At the 
 21.15  death of the beneficiary, the money in the trust shall be 
 21.16  considered an asset of the beneficiary's estate, to the extent 
 21.17  that the value of the trust exceeds the actual value for the 
 21.18  goods and services provided at-need.  This does not alter any 
 21.19  asset exclusion requirements that exist under federal law.  The 
 21.20  depositor as trustee must disclose in writing the location of 
 21.21  the trust account, including the name and address of the 
 21.22  institution where the money is being held and any identifying 
 21.23  account numbers, to the beneficiary when the money is deposited 
 21.24  and when there are any subsequent changes to the location of the 
 21.25  trust account."; 
 21.26     (9) for agreements with revocable trusts, contains the 
 21.27  following statement, in bold-faced type and a minimum size of 
 21.28  ten points: 
 21.29     "REVOCABLE TRUST: 
 21.30     The preneed arrangement trust being created by the 
 21.31  purchaser is revocable.  These trust funds, including all 
 21.32  principal and accrued interest, are the purchaser's assets.  The 
 21.33  purchaser may withdraw the principal and accrued interest at any 
 21.34  time prior to the death of the beneficiary.  At the death of the 
 21.35  beneficiary, the funds shall be distributed in their entirety, 
 21.36  principal plus accrued interest, with no fees retained by the 
 22.1   trustees as administrative fees.  The funds shall be distributed 
 22.2   for the payment of the at-need funeral goods, funeral services, 
 22.3   burial site goods, or burial site services selected, with any 
 22.4   excess funds distributed to the beneficiary's estate.  At any 
 22.5   time before or at the time of the beneficiary's death, the 
 22.6   purchaser may transfer the preneed arrangements and related 
 22.7   trust funds for use in the payment of funeral goods, funeral 
 22.8   services, burial site goods, or burial site services.  The 
 22.9   purchaser may not be charged any fee in connection with the 
 22.10  transfer of a preneed arrangement and trust funds."; 
 22.11     (10) for agreements with irrevocable trusts, contains the 
 22.12  following statement, in bold-faced type and a minimum size of 
 22.13  ten points: 
 22.14     "IRREVOCABLE TRUST: 
 22.15     A trust created to hold preneed arrangement funds is 
 22.16  revocable in its entirety unless specifically limited by the 
 22.17  purchaser.  The purchaser has chosen to create an irrevocable 
 22.18  trust in the amount of $ (insert the dollar amount of the 
 22.19  purchaser's irrevocable trust).  The revocable portion of this 
 22.20  trust fund is limited to that amount that exceeds the allowable 
 22.21  supplemental security income asset exclusion used for 
 22.22  determining eligibility for public assistance at the time the 
 22.23  trust is created.  The principal and accrued interest may not be 
 22.24  withdrawn from the trust prior to the beneficiary's death, 
 22.25  except to the extent that the trust funds exceed the irrevocable 
 22.26  trust limitation.  At the time of the beneficiary's death, the 
 22.27  funds shall be distributed in their entirety, principal plus 
 22.28  accrued interest, with no fees retained by the trustees as 
 22.29  administrative fees.  The funds shall be distributed for the 
 22.30  payment of the at-need funeral goods, funeral services, burial 
 22.31  site goods, or burial site services selected, with any excess 
 22.32  funds distributed to the beneficiary's estate.  At any time 
 22.33  prior to or at the time of the beneficiary's death, the 
 22.34  purchaser may transfer the preneed arrangements and trust funds 
 22.35  for use in the payment of funeral goods, funeral services, 
 22.36  burial site goods, or burial site services.  The purchaser may 
 23.1   not be charged any fee in connection with the transfer of a 
 23.2   preneed arrangement and trust funds."; 
 23.3      (11) provides that if the particular funeral goods, funeral 
 23.4   services, burial site goods, or burial site services specified 
 23.5   in the agreement are unavailable at the time of delivery, the 
 23.6   funeral provider must furnish goods and services similar in 
 23.7   style and at least equal in quality to the material and 
 23.8   workmanship of the goods or services specified and that the 
 23.9   representative of the beneficiary has the right to choose the 
 23.10  goods or services to be substituted; and 
 23.11     (12) contains an itemization of the sale of grave lots, 
 23.12  spaces, lawn crypts, niches, or mausoleum crypts separate from 
 23.13  all other goods and services selected. 
 23.14     Sec. 33.  Minnesota Statutes 1998, section 149A.97, is 
 23.15  amended by adding a subdivision to read: 
 23.16     Subd. 4a.  [FINANCE CHARGES ON PRENEED ARRANGEMENTS 
 23.17  PROHIBITED.] Funeral providers are prohibited from assessing 
 23.18  finance charges on preneed arrangements. 
 23.19     Sec. 34.  Minnesota Statutes 1998, section 149A.97, 
 23.20  subdivision 6, is amended to read: 
 23.21     Subd. 6.  [DISBURSEMENT OF TRUST FUNDS.] The funds held in 
 23.22  trust, including principal and accrued interest, may be 
 23.23  distributed prior to the death of the beneficiary upon demand by 
 23.24  the purchaser as specified in subdivision 6a, to the extent that 
 23.25  the trust is designated revocable.  At the death of the 
 23.26  beneficiary and with satisfactory proof of death provided to the 
 23.27  institution holding the trust funds, the funds, including 
 23.28  principal and accrued interest, may be distributed by either the 
 23.29  depositor as trustee or the purchaser as trustee, subject to 
 23.30  section 149A.80.  The funds shall be distributed in their 
 23.31  entirety, with no fees to be retained by the trustees as 
 23.32  administrative fees.  The funds shall be distributed for the 
 23.33  payment of the actual at-need value of the funeral goods ~~and/or~~, 
 23.34  funeral services, burial site goods, or burial site services 
 23.35  selected with any excess funds distributed to the estate of the 
 23.36  decedent. 
 24.1      Sec. 35.  Minnesota Statutes 1998, section 149A.97, is 
 24.2   amended by adding a subdivision to read: 
 24.3      Subd. 6a.  [CANCELLATION OF AGREEMENT FOR PRENEED 
 24.4   ARRANGEMENTS.] (a) If a purchaser cancels an agreement for an 
 24.5   irrevocable trust for preneed arrangements at any time before 
 24.6   midnight of the third business day after the date of the 
 24.7   agreement, the purchaser shall receive a refund of all 
 24.8   consideration paid according to the agreement.  The refund must 
 24.9   be distributed to the purchaser within 15 business days 
 24.10  following receipt by the funeral provider of the cancellation 
 24.11  notice from the purchaser.  
 24.12     (b) If the purchaser cancels an agreement for a revocable 
 24.13  trust for preneed arrangements at any time after the date of the 
 24.14  agreement, all funds held in a revocable trust, including all 
 24.15  principal and accrued interest, must be distributed to the 
 24.16  purchaser within 15 business days following receipt by the 
 24.17  funeral provider of the cancellation notice. 
 24.18     (c) Cancellation is evidenced by the purchaser giving 
 24.19  written notice of cancellation to the funeral provider at the 
 24.20  address provided in the agreement.  Notice of cancellation, if 
 24.21  given by mail, is effective upon deposit in a mailbox, properly 
 24.22  addressed to the funeral provider and postage prepaid.  Notice 
 24.23  of cancellation need not take any specific form and is 
 24.24  sufficient if it indicates, by any form of written expression, 
 24.25  the intention of the purchaser not to be bound by the agreement. 
 24.26     Sec. 36.  Minnesota Statutes 1998, section 149A.97, 
 24.27  subdivision 9, is amended to read: 
 24.28     Subd. 9.  [REQUIRED RECORDS.] Every funeral provider 
 24.29  lawfully doing business in Minnesota that accepts funds under 
 24.30  subdivision 2 must create and maintain on its premises or other 
 24.31  business location in Minnesota an accurate record of every trust 
 24.32  fund established with the funeral provider as trustee.  The 
 24.33  record must contain the following information: 
 24.34     (1) the names of the purchaser, beneficiary, and depositor; 
 24.35     (2) the date, location, identifying account numbers, and 
 24.36  amount of the funds originally deposited; 
 25.1      (3) any subsequent changes to the location of the account, 
 25.2   identifying account number, or trustee designation; 
 25.3      (4) the date, amount, and payee of any distributions from 
 25.4   the account; and 
 25.5      (5) all supporting documentation, including a copy of the 
 25.6   original trust agreement, copies of any contracts for the 
 25.7   purchase of preneed ~~funeral~~ goods and services, and any other 
 25.8   appropriate documentation. 
 25.9      Sec. 37.  [RECOMMENDATIONS.] 
 25.10     The commissioner of health shall make recommendations by 
 25.11  January 15, 2001, to the chairs of the senate health and family 
 25.12  security budget division and the house health and human services 
 25.13  finance division on whether there is a need for additional 
 25.14  funding for ongoing implementation of the regulatory provisions 
 25.15  of Minnesota Statutes, chapter 149A, and if so, proposals for an 
 25.16  alternative funding source other than the general fund.