1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to health; establishing requirements for the 1.3 sale of funeral goods and services and preneed funeral 1.4 arrangements; modifying the enforcement authority of 1.5 the commissioner of health; 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 23, and 1.13 by adding subdivisions; 149A.08, subdivisions 1, 3, 4, 1.14 and by adding a subdivision; 149A.50, subdivision 1; 1.15 149A.70, by adding subdivisions; 149A.71, subdivisions 1.16 2 and 4; 149A.73, subdivision 3; and 149A.97, 1.17 subdivision 6, and by adding subdivisions; proposing 1.18 coding for new law in Minnesota Statutes, chapter 149A. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 Section 1. Minnesota Statutes 1998, section 149A.02, is 1.21 amended by adding a subdivision to read: 1.22 Subd. 3a. [BURIAL SITE GOODS AND SERVICES.] "Burial site 1.23 goods and services" means all goods and services provided at a 1.24 burial site that are associated with the final disposition of a 1.25 dead human body. 1.26 Sec. 2. Minnesota Statutes 1998, section 149A.02, 1.27 subdivision 23, is amended to read: 1.28 Subd. 23. [FUNERAL SERVICES.] "Funeral services" means any 1.29 services which may be used to: (1) care for and prepare dead 1.30 human bodies for burial, cremation, or other final 1.31 disposition;andor (2) arrange, supervise, or conduct the 1.32 funeral ceremony or the final disposition of dead human bodies. 2.1 Sec. 3. Minnesota Statutes 1998, section 149A.02, is 2.2 amended by adding a subdivision to read: 2.3 Subd. 33a. [PRENEED CONSUMER.] "Preneed consumer" means an 2.4 individual who arranges for funeral goods or services prior to 2.5 the death of that individual or another individual, and who 2.6 funds those goods or services through prepayment to a funeral 2.7 provider or through purchase of an insurance policy. 2.8 Sec. 4. Minnesota Statutes 1998, section 149A.08, 2.9 subdivision 1, is amended to read: 2.10 Subdivision 1. [AUTHORIZATION.] In addition to any other 2.11 remedy provided by law, the commissioner may issue a cease and 2.12 desist order to: 2.13 (1) stop a person from violating or threatening to violate 2.14 any law, rule, order, stipulation agreement, settlement, 2.15 compliance agreement, license, or permit which the commissioner 2.16 is empowered to regulate, enforce, or issue; or 2.17 (2) prohibit a funeral provider from engaging in the sale 2.18 of preneed funeral goods or funeral services if the funeral 2.19 provider has been found in violation of any provision of this 2.20 chapter. 2.21 Sec. 5. Minnesota Statutes 1998, section 149A.08, is 2.22 amended by adding a subdivision to read: 2.23 Subd. 2a. [SALE OF PRENEED GOODS OR SERVICES; CONTENTS OF 2.24 ORDER, HEARING, WHEN EFFECTIVE.] (a) This subdivision applies to 2.25 cease and desist orders issued pursuant to subdivision 1, clause 2.26 (2). 2.27 (b) In addition to the requirements of subdivision 2, a 2.28 cease and desist order must also specify that the hearing to 2.29 which the funeral provider has a right occurs, if requested, 2.30 before the order goes into effect and that a timely request for 2.31 a hearing automatically stays the cease and desist order. 2.32 (c) A request for a hearing must be in writing, must be 2.33 delivered to the commissioner by certified mail within 20 2.34 calendar days after the funeral provider receives the order, and 2.35 must specifically state the reasons for seeking review of the 2.36 order. If the funeral provider fails to request a hearing in 3.1 writing within 20 calendar days of receipt of the order, the 3.2 cease and desist order becomes the final order of the 3.3 commissioner. If a funeral provider makes a timely request for 3.4 a hearing, the cease and desist order is automatically stayed 3.5 pending the outcome of the hearing. The commissioner must 3.6 initiate a hearing within 30 calendar days from the date of 3.7 receiving the written request for hearing. The hearing shall be 3.8 conducted pursuant to sections 14.57 to 14.62. No earlier than 3.9 ten calendar days but within 30 calendar days of receiving the 3.10 presiding administrative law judge's report, the commissioner 3.11 shall issue a final order modifying, vacating, or making 3.12 permanent the cease and desist order as the facts require. 3.13 Sec. 6. Minnesota Statutes 1998, section 149A.08, 3.14 subdivision 3, is amended to read: 3.15 Subd. 3. [REQUEST FOR HEARING; HEARING; AND FINAL ORDER.] 3.16 This subdivision applies to cease and desist orders issued 3.17 pursuant to subdivision 1, clause (1). A request for hearing 3.18 must be in writing, delivered to the commissioner by certified 3.19 mail within 20 calendar days after the receipt of the cease and 3.20 desist order, and specifically state the reasons for seeking 3.21 review of the order. The commissioner must initiate a hearing 3.22 within 30 calendar days from the date of receipt of the written 3.23 request for hearing. The hearing shall be conducted pursuant to 3.24 sections 14.57 to 14.62. No earlier than ten calendar days but 3.25 within 30 calendar days of receipt of the presiding 3.26 administrative law judge's report, the commissioner shall issue 3.27 a final order modifying, vacating, or making permanent the cease 3.28 and desist order as the facts require. If, within 20 calendar 3.29 days of receipt of the cease and desist order, the subject of 3.30 the order fails to request a hearing in writing, the cease and 3.31 desist order becomes the final order of the commissioner. 3.32 Sec. 7. Minnesota Statutes 1998, section 149A.08, 3.33 subdivision 4, is amended to read: 3.34 Subd. 4. [REQUEST FOR STAY.] This subdivision applies to 3.35 cease and desist orders issued pursuant to subdivision 1, clause 3.36 (1). When a request for a stay accompanies a timely hearing 4.1 request, the commissioner may, in the commissioner's discretion, 4.2 grant the stay. If the commissioner does not grant a requested 4.3 stay, the commissioner shall refer the request to the office of 4.4 administrative hearings within three working days from the 4.5 receipt of the request. Within ten calendar days after receiving 4.6 the request from the commissioner, an administrative law judge 4.7 shall issue a recommendation to grant or deny the stay. The 4.8 commissioner shall grant or deny the stay within five calendar 4.9 days of receiving the administrative law judge's recommendation. 4.10 Sec. 8. Minnesota Statutes 1998, section 149A.50, 4.11 subdivision 1, is amended to read: 4.12 Subdivision 1. [LICENSE REQUIRED.] (a) Except as provided 4.13 in paragraph (b) and section 149A.01, subdivision 3, no person 4.14 shall maintain, manage, or operate a place or premise devoted to 4.15 or used in the holding, care, or preparation of a dead human 4.16 body for final disposition, or any place used as the office or 4.17 place of business for the provision of funeral services, without 4.18 possessing a valid license to operate a funeral establishment 4.19 issued by the commissioner of health. 4.20 (b) Any place or premises that is used for the provision of 4.21 funeral services and is not used in the holding, care, or 4.22 preparation of a dead human body for final disposition, is not 4.23 required to be licensed as a funeral establishment. Any place 4.24 or premises that is used in the holding, care, or preparation of 4.25 a dead human body for final disposition must be licensed as a 4.26 funeral establishment. 4.27 Sec. 9. Minnesota Statutes 1998, section 149A.70, is 4.28 amended by adding a subdivision to read: 4.29 Subd. 5a. [SOLICITATIONS PROHIBITED IN CERTAIN 4.30 SITUATIONS.] No funeral provider may directly or indirectly: 4.31 (1) call upon an individual at a grave site or in a 4.32 hospital, nursing home, hospice, or similar institution or 4.33 facility for the purpose of soliciting the sale of funeral goods 4.34 or funeral services or for the purpose of making arrangements 4.35 for a funeral or the final disposition of a dead human body, 4.36 without a specific request for solicitation from that 5.1 individual; 5.2 (2) solicit the sale of funeral goods or services from an 5.3 individual whose impending death is readily apparent, without a 5.4 specific request for solicitation from that individual; or 5.5 (3) engage in telephone solicitation of an individual who 5.6 has the right to control the final disposition of a dead human 5.7 body within ten days after the death of the individual whose 5.8 body is being disposed. 5.9 This subdivision does not apply to communications between 5.10 an individual and a funeral provider who is related to the 5.11 individual by blood, adoption, or marriage. 5.12 Sec. 10. Minnesota Statutes 1998, section 149A.70, is 5.13 amended by adding a subdivision to read: 5.14 Subd. 8. [DISCLOSURE OF OWNERSHIP AND SALE.] (a) All 5.15 funeral establishments and funeral providers must clearly state 5.16 by whom they are owned in all advertisements, excluding 5.17 permanent signs that are on the property of the funeral 5.18 establishment or funeral provider, and on all business 5.19 literature, correspondence, and contracts. Within 15 days of a 5.20 change in ownership of a funeral establishment or funeral 5.21 provider, the funeral establishment or funeral provider shall 5.22 notify all preneed consumers by first class mail of the change 5.23 in ownership. The notification shall advise the preneed 5.24 consumers of their right to transfer all preneed trust funds to 5.25 a new funeral provider and shall advise all preneed consumers 5.26 who have revocable preneed trusts of their right to terminate 5.27 the trust and receive a refund of all principal paid into the 5.28 trust, plus interest accrued. 5.29 (b) For purposes of this subdivision: 5.30 (1) "change in ownership" means: 5.31 (i) the sale or transfer of all or substantially all of the 5.32 assets of a funeral establishment or funeral provider; 5.33 (ii) the sale or transfer of a controlling interest of a 5.34 funeral establishment or funeral provider; or 5.35 (iii) the termination of the business of a funeral 5.36 establishment or funeral provider where there is no transfer of 6.1 assets or stock; and 6.2 (2) "controlling interest" means: 6.3 (i) an interest in a partnership of greater than 50 6.4 percent; or 6.5 (ii) greater than 50 percent of the issued and outstanding 6.6 shares of a stock of a corporation. 6.7 Sec. 11. Minnesota Statutes 1998, section 149A.71, 6.8 subdivision 2, is amended to read: 6.9 Subd. 2. [PREVENTIVE REQUIREMENTS.] (a) To prevent unfair 6.10 or deceptive acts or practices, the requirements of this 6.11 subdivision must be met. 6.12 (b) Funeral providers must tell persons who ask by 6.13 telephone about the funeral provider's offerings or prices any 6.14 accurate information from the price lists described in 6.15 paragraphs (c) to (e) and any other readily available 6.16 information that reasonably answers the questions asked. 6.17 (c) Funeral providers must make available for viewing to 6.18 people who inquire in person about the offerings or prices of 6.19 funeral goods or funeral services, separate printed or 6.20 typewritten price lists. Each funeral provider must have a 6.21 separate price list for each of the following types of goods and 6.22 services that are sold or offered for sale: 6.23 (1) caskets; 6.24 (2) alternative containers; 6.25 (3) outer burial containers;and6.26 (4) cremation containers and cremated remains containers; 6.27 and 6.28 (5) cemetery-specific goods and services, including all 6.29 goods and services associated with interment and burial site 6.30 goods and services. 6.31 (d) Each separate price list must contain the name of the 6.32 funeral provider's place of business and a caption describing 6.33 the list as a price list for one of the types of funeral 6.34 goods or funeral services described in paragraph (c), clauses 6.35 (1) to(4)(5). The funeral provider must offer the list upon 6.36 beginning discussion of, but in any event before showing, the 7.1 specific funeral goods or services and must provide a photocopy 7.2 of the price list, for retention, if so asked by the consumer. 7.3 The list must contain, at least, the retail prices of all the 7.4 specific funeral goods and services offered which do not require 7.5 special ordering, enough information to identify each, and the 7.6 effective date for the price list. In lieu of a written price 7.7 list, other formats, such as notebooks, brochures, or charts may 7.8 be used if they contain the same information as would the 7.9 printed or typewritten list, and display it in a clear and 7.10 conspicuous manner. However, funeral providers are not required 7.11 to make a specific price list available if the funeral providers 7.12 place the information required by this paragraph on the general 7.13 price list described in paragraph (e). 7.14 (e) Funeral providers must give a printed or typewritten 7.15 price list, for retention, to persons who inquire in person 7.16 about the funeral goods or funeral services or prices offered by 7.17 the funeral provider. The funeral provider must give the list 7.18 upon beginning discussion of either the prices of or the overall 7.19 type of funeral service or disposition or specific funeral goods 7.20 or funeral services offered by the provider. This requirement 7.21 applies whether the discussion takes place in the funeral 7.22 establishment or elsewhere. However, when the deceased is 7.23 removed for transportation to the funeral establishment, an 7.24 in-person request for authorization to embalm does not, by 7.25 itself, trigger the requirement to offer the general price 7.26 list. If the provider, in making an in-person request for 7.27 authorization to embalm, discloses that embalming is not 7.28 required by law except in certain special cases, the provider is 7.29 not required to offer the general price list. Any other 7.30 discussion during that time about prices or the selection of 7.31 funeral goods or funeral services triggers the requirement to 7.32 give the consumer a general price list. The general price list 7.33 must contain the following information: 7.34 (1) the name, address, and telephone number of the funeral 7.35 provider's place of business; 7.36 (2) a caption describing the list as a "general price 8.1 list"; 8.2 (3) the effective date for the price list; 8.3 (4) the retail prices, in any order, expressed either as a 8.4 flat fee or as the prices per hour, mile, or other unit of 8.5 computation, and other information described as follows: 8.6 (i) forwarding of remains to another funeral establishment, 8.7 together with a list of the services provided for any quoted 8.8 price; 8.9 (ii) receiving remains from another funeral establishment, 8.10 together with a list of the services provided for any quoted 8.11 price; 8.12 (iii) separate prices for each cremation offered by the 8.13 funeral provider, with the price including an alternative or 8.14 cremation container, any crematory charges, and a description of 8.15 the services and container included in the price, where 8.16 applicable, and the price of cremation where the purchaser 8.17 provides the container; 8.18 (iv) separate prices for each immediate burial offered by 8.19 the funeral provider, including a casket or alternative 8.20 container, and a description of the services and container 8.21 included in that price, and the price of immediate burial where 8.22 the purchaser provides the casket or alternative container; 8.23 (v) transfer of remains to the funeral establishment; 8.24 (vi) embalming; 8.25 (vii) other preparation of the body; 8.26 (viii) use of facilities, equipment, or staff for viewing; 8.27 (ix) use of facilities, equipment, or staff for funeral 8.28 ceremony; 8.29 (x) use of facilities, equipment, or staff for memorial 8.30 service; 8.31 (xi) use of equipment or staff for graveside service; 8.32 (xii) hearse or funeral coach;and8.33 (xiii) limousine; and 8.34 (xiv) separate prices for all cemetery-specific goods and 8.35 services, including all goods and services associated with 8.36 interment and burial site goods and services; 9.1 (5) the price range for the caskets offered by the funeral 9.2 provider, together with the statement "A complete price list 9.3 will be provided at the funeral establishment." or the prices of 9.4 individual caskets, as disclosed in the manner described in 9.5 paragraphs (c) and (d); 9.6 (6) the price range for the alternative containers offered 9.7 by the funeral provider, together with the statement "A complete 9.8 price list will be provided at the funeral establishment." or 9.9 the prices of individual alternative containers, as disclosed in 9.10 the manner described in paragraphs (c) and (d); 9.11 (7) the price range for the outer burial containers offered 9.12 by the funeral provider, together with the statement "A complete 9.13 price list will be provided at the funeral establishment." or 9.14 the prices of individual outer burial containers, as disclosed 9.15 in the manner described in paragraphs (c) and (d); 9.16 (8) the price range for the cremation containers and 9.17 cremated remains containers offered by the funeral provider, 9.18 together with the statement "A complete price list will be 9.19 provided at the funeral establishment." or the prices of 9.20 individual cremation containers and cremated remains containers, 9.21 as disclosed in the manner described in paragraphs (c) and (d); 9.22 (9) the price for the basic services of funeral director 9.23 and staff, together with a list of the principal basic services 9.24 provided for any quoted price and, if the charge cannot be 9.25 declined by the purchaser, the statement "This fee for our basic 9.26 services will be added to the total cost of the funeral 9.27 arrangements you select. (This fee is already included in our 9.28 charges for direct cremations, immediate burials, and forwarding 9.29 or receiving remains.)" If the charge cannot be declined by the 9.30 purchaser, the quoted price shall include all charges for the 9.31 recovery of unallocated funeral provider overhead, and funeral 9.32 providers may include in the required disclosure the phrase "and 9.33 overhead" after the word "services." This services fee is the 9.34 only funeral provider fee for services, facilities, or 9.35 unallocated overhead permitted by this subdivision to be 9.36 nondeclinable, unless otherwise required by law; 10.1 (10) if the price for basic services, as described in 10.2 clause (9), is not applicable, the statement "Please note that a 10.3 fee for the use of our basic services is included in the price 10.4 of our caskets. Our services include (specify services 10.5 provided)." The fee shall include all charges for the recovery 10.6 of unallocated funeral provider overhead, and funeral providers 10.7 may include in the required disclosure the phrase "and overhead" 10.8 after the word "services." The statement must be placed on the 10.9 general price list, together with the casket price range or the 10.10 prices of individual caskets. This services fee is the only 10.11 funeral provider fee for services, facilities, or unallocated 10.12 overhead permitted by this subdivision to be nondeclinable, 10.13 unless otherwise required by law. 10.14 (f) Funeral providers must give an itemized written 10.15 statement, for retention, to each consumer who arranges a 10.16 funeral or other disposition of human remains at the conclusion 10.17 of the discussion of the arrangements. The itemized written 10.18 statement must be signed by the consumer selecting the goods and 10.19 services and the licensed funeral director or mortician planning 10.20 the arrangements. The statement must list the funeral goods and 10.21 funeral services selected by that consumer and the prices to be 10.22 paid for each item, specifically itemized cash advance items 10.23 (these prices must be given to the extent then known or 10.24 reasonably ascertainable if the prices are not known or 10.25 reasonably ascertainable, a good faith estimate shall be given 10.26 and a written statement of the actual charges shall be provided 10.27 before the final bill is paid), and the total cost of goods and 10.28 services selected. The information required by this paragraph 10.29 may be included on any contract, statement, or other document 10.30 which the funeral provider would otherwise provide at the 10.31 conclusion of discussion of arrangements. 10.32 (g) Funeral providers must give any other price 10.33 information, in any other format, in addition to that required 10.34 by paragraphs (c) to (e) so long as the written statement 10.35 required by paragraph (f) is given when required. 10.36 (h) Upon receiving actual notice of the death of an 11.1 individual for whom a funeral provider has made preneed 11.2 arrangements, the funeral provider must provide a copy of all 11.3 preneed arrangement documents to the person who controls final 11.4 disposition of the human remains or to the designee of the 11.5 person controlling disposition. The person controlling 11.6 disposition shall be provided with these documents at the time 11.7 of the person's first contact with the funeral provider, if the 11.8 first contact occurs in person at a funeral establishment, 11.9 crematory, or other place of business of the funeral provider. 11.10 If the contact occurs by other means or at another location, the 11.11 documents must be provided within 24 hours of the first contact. 11.12 Sec. 12. Minnesota Statutes 1998, section 149A.71, 11.13 subdivision 4, is amended to read: 11.14 Subd. 4. [CASKET, ALTERNATE CONTAINER, AND CREMATION 11.15 CONTAINER SALES; RECORDS; REQUIRED DISCLOSURES.] Any funeral 11.16 provider who sells or offers to sell a casket, alternate 11.17 container, or cremation container to the public must maintain a 11.18 record of each sale that includes the name of the purchaser, the 11.19 purchaser's mailing address, the name of the decedent, the date 11.20 of the decedent's death, and the place of death. These records 11.21 shall be open to inspection by the commissioner and reported to 11.22 the commissioner. Any funeral provider selling a casket, 11.23 alternate container, or cremation container to the public, and 11.24 not having charge of the final disposition of the dead human 11.25 body, shall enclose within the casket, alternate container, or 11.26 cremation container information provided by the commissioner 11.27 that includes a blank certificate of death, and a copy of the 11.28 statutes and rules controlling the removal, preparation, 11.29 transportation, arrangements for disposition, and final 11.30 disposition of a dead human body. Thissectionsubdivision does 11.31 not apply to morticians, funeral directors, funeral 11.32 establishments, crematories, or wholesale distributors of 11.33 caskets, alternate containers, or cremation containers. 11.34 Sec. 13. Minnesota Statutes 1998, section 149A.73, 11.35 subdivision 3, is amended to read: 11.36 Subd. 3. [OTHER REQUIRED PURCHASES OF FUNERAL GOODS OR 12.1 FUNERAL SERVICES; DECEPTIVE ACTS OR PRACTICES.] (a) In selling 12.2 or offering to sell funeral goods or funeral services to the 12.3 public, it is a deceptive act or practice for a funeral provider 12.4 to condition the furnishing of any funeral good or funeral 12.5 service to a consumer arranging a funeral upon the purchase of 12.6 any other funeral good or funeral service, except as may be 12.7 otherwise required by law or to charge any fee as a condition to 12.8 furnishing any funeral goods or funeral services to a consumer 12.9 arranging a funeral, other than the fees for services of funeral 12.10 director and staff, other funeral services and funeral goods 12.11 selected by the purchaser, and other funeral goods or services 12.12 required to be purchased, as explained on the itemized statement 12.13 in accordance with section 149A.72, subdivision 10. 12.14 (b) In selling or offering to sell funeral goods or funeral 12.15 services to the public, it is a deceptive act or practice for a 12.16 funeral provider to charge an increased price for the handling, 12.17 placing, or setting of a funeral good based upon the fact that 12.18 the good was not purchased from that funeral provider. 12.19 Sec. 14. [149A.745] [FUNERAL INDUSTRY PRACTICES; 12.20 PROHIBITION ON PREINTERMENT OF OUTER BURIAL CONTAINERS.] 12.21 A funeral provider is prohibited from interring an outer 12.22 burial container until the death of the beneficiary. 12.23 Sec. 15. Minnesota Statutes 1998, section 149A.97, is 12.24 amended by adding a subdivision to read: 12.25 Subd. 3a. [REQUIREMENTS FOR PRENEED FUNERAL 12.26 AGREEMENTS.] It is unlawful for any person residing or doing 12.27 business in this state to make preneed arrangements unless an 12.28 agreement for preneed arrangements: 12.29 (1) is written in clear, understandable language and 12.30 printed in a type that is easy to read in size and style; 12.31 (2) contains a complete, itemized description of the 12.32 funeral goods and funeral services selected or purchased, 12.33 including, when appropriate, manufacturer's name, model numbers, 12.34 style numbers, and description of the type of material used in 12.35 construction; 12.36 (3) discloses clearly and conspicuously whether the prices 13.1 of the goods and services selected are guaranteed; 13.2 (4) discloses that funding options for preneed arrangements 13.3 consist of either prepayment to the funeral provider or the 13.4 purchase of an insurance policy; 13.5 (5) discloses whether the funds received from the purchaser 13.6 are required to be placed in a trust and, if the funds are 13.7 required to be placed in a trust, provides the following 13.8 information: 13.9 (i) lists the location of the trust account, including the 13.10 name, address, and telephone number of the institution where the 13.11 money will be held and any identifying account numbers, the 13.12 amount of money to be trusted, and the names of the trustees; 13.13 and 13.14 (ii) advises the purchaser as to the disposition of the 13.15 interest from the trust and as to responsibility for taxes owed 13.16 on the interest; 13.17 (6) contains the names, addresses, and telephone numbers of 13.18 the Minnesota department of health as the regulatory agency for 13.19 preneed trust accounts and the Minnesota attorney general's 13.20 office as the regulatory agency that handles consumer 13.21 complaints; 13.22 (7) discloses clearly and conspicuously that any person who 13.23 makes payment under a preneed funeral agreement may cancel the 13.24 agreement subject to the procedures for cancellation specified 13.25 in subdivision 6a; 13.26 (8) contains the following statement, in bold-faced type 13.27 and a minimum size of ten points: 13.28 "Within fifteen calendar days after receipt of any money 13.29 required to be held in trust, all such money must be deposited 13.30 in a banking institution, savings association, or credit union, 13.31 organized under state or federal laws, the accounts of which are 13.32 insured by an instrumentality of the federal government. The 13.33 person for whose benefit the money was paid according to this 13.34 agreement shall be known as the beneficiary; the person or 13.35 persons who paid the money shall be known as the purchaser; and 13.36 the funeral provider shall be known as the depositor. The money 14.1 must be carried in a separate account with the names of the 14.2 depositor and the purchaser as trustees for the beneficiary. 14.3 The preneed arrangement trust shall be considered an asset 14.4 of the purchaser until the death of the beneficiary. At the 14.5 death of the beneficiary, the money in the trust shall be 14.6 considered an asset of the beneficiary's estate, to the extent 14.7 that the value of the trust exceeds the actual value for the 14.8 goods and services provided at-need. This does not alter any 14.9 asset exclusion requirements that exist under federal law. The 14.10 depositor as trustee must disclose in writing the location of 14.11 the trust account, including the name and address of the 14.12 institution where the money is being held and any identifying 14.13 account numbers, to the beneficiary when the money is deposited 14.14 and when there are any subsequent changes to the location of the 14.15 trust account."; 14.16 (9) for agreements with revocable trusts, contains the 14.17 following statement, in bold-faced type and a minimum size of 14.18 ten points: 14.19 "REVOCABLE TRUST: 14.20 The preneed arrangement trust being created by the 14.21 purchaser is revocable. These trust funds, including all 14.22 principal and accrued interest, are the purchaser's assets. The 14.23 purchaser may withdraw the principal and accrued interest at any 14.24 time prior to the death of the beneficiary. At the death of the 14.25 beneficiary, the funds shall be distributed in their entirety, 14.26 principal plus accrued interest, with no fees retained by the 14.27 trustees as administrative fees. The funds shall be distributed 14.28 for the payment of the at-need funeral goods or services 14.29 selected, with any excess funds distributed to the beneficiary's 14.30 estate. At any time before or at the time of the beneficiary's 14.31 death, the purchaser may transfer the preneed arrangements and 14.32 related trust funds for use in the payment of funeral goods and 14.33 services. The purchaser may not be charged any fee in 14.34 connection with the transfer of a preneed arrangement and trust 14.35 funds."; 14.36 (10) for agreements with irrevocable trusts, contains the 15.1 following statement, in bold-faced type and a minimum size of 15.2 ten points: 15.3 "IRREVOCABLE TRUST: 15.4 A trust created to hold preneed arrangement funds is 15.5 revocable in its entirety unless specifically limited by the 15.6 purchaser. The purchaser has chosen to create an irrevocable 15.7 trust in the amount of $ (insert the dollar amount of the 15.8 purchaser's irrevocable trust). The revocable portion of this 15.9 trust fund is limited to that amount that exceeds the allowable 15.10 supplemental security income asset exclusion used for 15.11 determining eligibility for public assistance at the time the 15.12 trust is created. The principal and accrued interest may not be 15.13 withdrawn from the trust prior to the beneficiary's death, 15.14 except to the extent that the trust funds exceed the irrevocable 15.15 trust limitation. At the time of the beneficiary's death, the 15.16 funds shall be distributed in their entirety, principal plus 15.17 accrued interest, with no fees retained by the trustees as 15.18 administrative fees. The funds shall be distributed for the 15.19 payment of the at-need funeral goods or services selected, with 15.20 any excess funds distributed to the beneficiary's estate. At 15.21 any time prior to or at the time of the beneficiary's death, the 15.22 purchaser may transfer the preneed arrangements and trust funds 15.23 for use in the payment of funeral goods and services. The 15.24 purchaser may not be charged any fee in connection with the 15.25 transfer of a preneed arrangement and trust funds."; 15.26 (11) provides that if the particular funeral goods or 15.27 funeral services specified in the agreement are unavailable at 15.28 the time of delivery, the funeral provider must furnish goods 15.29 and services similar in style and at least equal in quality to 15.30 the material and workmanship of the goods or services specified 15.31 and that the representative of the beneficiary has the right to 15.32 choose the goods or services to be substituted; and 15.33 (12) contains an itemization of the sale of grave lots, 15.34 spaces, lawn crypts, niches, or mausoleum crypts separate from 15.35 all other funeral goods and services selected. 15.36 Sec. 16. Minnesota Statutes 1998, section 149A.97, is 16.1 amended by adding a subdivision to read: 16.2 Subd. 4a. [FINANCE CHARGES ON PRENEED ARRANGEMENTS 16.3 PROHIBITED.] Funeral providers are prohibited from assessing 16.4 finance charges on preneed arrangements. 16.5 Sec. 17. Minnesota Statutes 1998, section 149A.97, 16.6 subdivision 6, is amended to read: 16.7 Subd. 6. [DISBURSEMENT OF TRUST FUNDS.] The funds held in 16.8 trust, including principal and accrued interest, may be 16.9 distributed prior to the death of the beneficiary upon demand by 16.10 the purchaser as specified in subdivision 6a, to the extent that 16.11 the trust is designated revocable. At the death of the 16.12 beneficiary and with satisfactory proof of death provided to the 16.13 institution holding the trust funds, the funds, including 16.14 principal and accrued interest, may be distributed by either the 16.15 depositor as trustee or the purchaser as trustee, subject to 16.16 section 149A.80. The funds shall be distributed in their 16.17 entirety, with no fees to be retained by the trustees as 16.18 administrative fees. The funds shall be distributed for the 16.19 payment of the actual at-need value of the funeral goods and/or 16.20 services selected with any excess funds distributed to the 16.21 estate of the decedent. 16.22 Sec. 18. Minnesota Statutes 1998, section 149A.97, is 16.23 amended by adding a subdivision to read: 16.24 Subd. 6a. [CANCELLATION OF AGREEMENT FOR PRENEED 16.25 ARRANGEMENTS.] (a) If a purchaser cancels an agreement for an 16.26 irrevocable trust for preneed arrangements at any time before 16.27 midnight of the third business day after the date of the 16.28 agreement, the purchaser shall receive a refund of all 16.29 consideration paid according to the agreement. The refund must 16.30 be distributed to the purchaser within 15 business days 16.31 following receipt by the funeral provider of the cancellation 16.32 notice from the purchaser. 16.33 (b) If the purchaser cancels an agreement for a revocable 16.34 trust for preneed arrangements at any time after the date of the 16.35 agreement, all funds held in a revocable trust, including all 16.36 principal and accrued interest, must be distributed to the 17.1 purchaser within 15 business days following receipt by the 17.2 funeral provider of the cancellation notice. 17.3 (c) Cancellation is evidenced by the purchaser giving 17.4 written notice of cancellation to the funeral provider at the 17.5 address provided in the agreement. Notice of cancellation, if 17.6 given by mail, is effective upon deposit in a mailbox, properly 17.7 addressed to the funeral provider and postage prepaid. Notice 17.8 of cancellation need not take any specific form and is 17.9 sufficient if it indicates, by any form of written expression, 17.10 the intention of the purchaser not to be bound by the agreement. 17.11 Sec. 19. Minnesota Statutes 1998, section 149A.97, is 17.12 amended by adding a subdivision to read: 17.13 Subd. 6b. [APPLICATION OF PAYMENT.] When purchasing grave 17.14 lots, spaces, lawn crypts, niches, or mausoleum crypts at the 17.15 same time as making preneed arrangements, payments made by the 17.16 purchaser shall be first applied to the price of the purchased 17.17 grave lots, spaces, lawn crypts, niches, or mausoleum crypts, 17.18 until such products are paid for in full. All further funds 17.19 received from the purchaser shall be applied toward prepayment 17.20 of the funeral goods and funeral services identified in the 17.21 preneed funeral agreement.