Senate Bill 0196c1

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    Florida Senate - 1999                            CS for SB 196

    By the Committee on Regulated Industries





    315-742A-99

  1                      A bill to be entitled

  2         An act relating to funeral and cemetery

  3         services; amending s. 470.034, F.S.; requiring

  4         licensees and registrants to give notice to

  5         prospective purchasers of the ownership of the

  6         business providing the merchandise or services;

  7         requiring disclosures in advertisements and

  8         contracts; providing for voidability of

  9         contracts; amending ss. 497.201, 497.213, F.S.;

10         requiring applications for cemetery licenses

11         and license renewals to contain ownership

12         information; amending s. 497.333, F.S.;

13         requiring sellers of burial rights,

14         merchandise, or services to give notice to

15         prospective purchasers of the ownership of the

16         business providing the merchandise or services;

17         requiring disclosures in advertisements and

18         contracts; providing for voidability of

19         contracts; requiring specified state agencies

20         to coordinate recordkeeping and reporting of

21         certain data; providing an effective date.

22

23  Be It Enacted by the Legislature of the State of Florida:

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25         Section 1.  Section 470.034, Florida Statutes, is

26  amended to read:

27         470.034  Disclosure of information to public.--If a

28  licensee or registrant offers to provide services to the

29  public, she or he shall be subject to disciplinary action as

30  provided in this chapter if she or he:

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1         (1)  Fails to reasonably provide by telephone, upon

  2  request, accurate information regarding the retail prices of

  3  funeral merchandise and services offered for sale by that

  4  licensee or registrant.

  5         (2)  Fails to fully disclose all of her or his

  6  available services and merchandise prior to the selection of a

  7  casket.  The full disclosure required shall identify what is

  8  included in the funeral or direct disposition and the prices

  9  of all services and merchandise provided by the licensee or

10  registrant. Full disclosure shall also be made in the case of

11  a funeral or direct disposition with regard to the use of

12  funeral merchandise which is not to be disposed of with the

13  body, and written permission shall be obtained from the

14  purchaser.

15         (3)  Makes any false or misleading statements of the

16  legal requirement as to the conditions under which

17  preservation of a dead human body is required or as to the

18  necessity of a casket or outer burial container.

19         (4)  Fails to disclose, when such disclosure is

20  desired, the components of the prices for alternatives such

21  as:

22         (a)  Graveside service.

23         (b)  Direct disposition.

24         (c)  Body donation without any rites or ceremonies

25  prior to the delivery of the body and prices of service if

26  there are to be such after the residue has been removed

27  following the use thereof.

28         (5)  Fails to include in each advertisement for

29  merchandise or services a clear and conspicuous statement

30  identifying the owner of the business that would provide the

31  merchandise or services. As used in this subsection, the term

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1  "owner" includes, but is not limited to, a publicly traded

  2  corporation owning more than 10 percent of a licensee or

  3  registrant.

  4         (6)  Fails to provide to each prospective purchaser of

  5  merchandise or services, prior to the purchase, a clear and

  6  conspicuous written statement identifying the owner of the

  7  business that would provide the merchandise or services. As

  8  used in this subsection, the term "owner" includes, but is not

  9  limited to, a publicly traded corporation owning more than 10

10  percent of a licensee or registrant.

11         (7)  Fails to include in each contract for purchase of

12  merchandise or services a clear and conspicuous statement

13  identifying the owner of each business that will provide the

14  merchandise or services. Additionally, if a contract does not

15  contain this disclosure, the contract is voidable by the

16  purchaser. In any action based on this subsection, the

17  licensee or registrant has the burden of proof to show that

18  the disclosure was made. As used in this subsection, the term

19  "owner" includes, but is not limited to, a publicly traded

20  corporation owning more than 10 percent of a licensee or

21  registrant.

22         Section 2.  Subsection (2) of section 497.201, Florida

23  Statutes, is amended to read:

24         497.201  Cemetery companies; license; application;

25  fee.--

26         (2)  The department may require any person desiring to

27  establish a cemetery company who applies for a license to

28  provide any information reasonably necessary to make a

29  determination of the applicant's eligibility for licensure.

30  Any person desiring to establish a cemetery company shall

31  first:

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1         (a)  File an application that which, states the exact

  2  location of the proposed cemetery, which site shall contain

  3  not less than 15 contiguous acres, and that identifies the

  4  business or corporation that will own the cemetery; provide a

  5  financial statement signed by all officers of the company that

  6  attests which attest to a net worth of at least $50,000, which

  7  net worth must be continuously maintained as a condition of

  8  licensure; and pay an application fee of $5,000;

  9         (b)  Create a legal entity; and

10         (c)  Demonstrate to the satisfaction of the board that

11  the applicant possesses the ability, experience, financial

12  stability, and integrity to operate a cemetery.

13         Section 3.  Section 497.213, Florida Statutes, is

14  amended to read:

15         497.213  Annual license fees.--

16         (1)  The department shall collect from each cemetery

17  company operating under the provisions of this chapter an

18  annual license fee as follows:

19         (a)  For a cemetery with less than $25,000 annual gross

20  sales....................................................$250.

21         (b)  For a cemetery with at least $25,000 but less than

22  $100,000 annual gross sales..............................$350.

23         (c)  For a cemetery with annual gross sales of at least

24  $100,000 but less than $250,000..........................$600.

25         (d)  For a cemetery with annual gross sales of at least

26  $250,000 but less than $500,000..........................$900.

27         (e)  For a cemetery with annual gross sales of at least

28  $500,000 but less than $750,000........................$1,350.

29         (f)  For a cemetery with annual gross sales of at least

30  $750,000 but less than $1,000,000......................$1,750.

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1         (g)  For a cemetery with annual gross sales of

  2  $1,000,000 or more.....................................$2,650.

  3         (2)  An application for license renewal shall be

  4  submitted, along with the applicable license fee, on or before

  5  December 31 each year in the case of an existing cemetery

  6  company and before any sale of cemetery property in the case

  7  of a new cemetery company or a change of ownership or control

  8  pursuant to ss. 497.205 and 497.209. The application must

  9  identify the business or corporation that owns or will own the

10  cemetery. If the renewal application and fee are not received

11  by December 31, the department shall collect a penalty in the

12  amount of $200 per month or fraction of a month for each month

13  delinquent.  For the purposes of this subsection, a renewal

14  application and fee submitted by mail shall be considered

15  timely submitted and received if postmarked by December 31 of

16  the applicable year.

17         Section 4.  Section 497.333, Florida Statutes, is

18  amended to read:

19         497.333  Disclosure of information to public.--A

20  licensee offering to provide burial rights, merchandise, or

21  services to the public shall:

22         (1)  Provide by telephone, upon request, accurate

23  information regarding the retail prices of burial merchandise

24  and services offered for sale by the licensee.

25         (2)  Fully disclose all regularly offered services and

26  merchandise prior to the selection of burial services or

27  merchandise.  The full disclosure required shall identify the

28  prices of all burial rights, services, and merchandise

29  provided by the licensee.

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1         (3)  Not make any false or misleading statements of the

  2  legal requirement as to the necessity of a casket or outer

  3  burial container.

  4         (4)  Provide a good faith estimate of all fees and

  5  costs the customer will incur to use any burial rights,

  6  merchandise, or services purchased.

  7         (5)  Provide to the customer, upon request, a current

  8  copy of the bylaws of the licensee.

  9         (6)  Provide to the customer, upon the purchase of any

10  burial right, merchandise, or service, a written contract, the

11  form of which has been approved by the board.

12         (a)  The written contract shall be completed as to all

13  essential provisions prior to the signing of the contract by

14  the customer.

15         (b)  The written contract shall provide an itemization

16  of the amounts charged for all services, merchandise, and

17  fees, which itemization shall be clearly and conspicuously

18  segregated from everything else on the written contract.

19         (c)  A description of the merchandise covered by the

20  contract to include, when applicable, model, manufacturer, and

21  other relevant specifications.

22         (7)  Provide the licensee's policy on cancellation and

23  refunds to each customer.

24         (8)  In a manner established by rule of the board,

25  provide on the signature page, clearly and conspicuously in

26  boldfaced 10-point type or larger, the following:

27         (a)  The words "purchase price."

28         (b)  The amount to be trusted.

29         (c)  The amount to be refunded upon contract

30  cancellation.

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1         (d)  The amounts allocated to merchandise, services,

  2  and cash advances.

  3         (e)  The toll-free number of the department which is

  4  available for questions or complaints.

  5         (f)  A statement that the purchaser shall have 30 days

  6  from the date of execution of contract to cancel the contract

  7  and receive a total refund of all moneys paid.

  8         (9)  Each seller of burial rights, merchandise, or

  9  services shall include in each advertisement for burial

10  rights, merchandise, or services a clear and conspicuous

11  statement identifying the owner of the business that would

12  provide the burial rights, merchandise, or services. As used

13  in this subsection, the term "owner" includes, but is not

14  limited to, a publicly traded corporation owning more than 10

15  percent of a licensee or registrant providing such rights,

16  merchandise, or services.

17         (10)  Each seller of burial rights, merchandise, or

18  services shall provide to each prospective purchaser, prior to

19  the purchase, a clear and conspicuous written statement

20  identifying the owner of the business that would provide the

21  burial rights, merchandise, or services. As used in this

22  subsection, the term "owner" includes, but is not limited to,

23  a publicly traded corporation owning more than 10 percent of a

24  licensee or registrant providing such rights, merchandise, or

25  services.

26         (11)  Each seller of burial rights, merchandise, or

27  services shall include in each contract for purchase of burial

28  rights, merchandise, or services, a clear and conspicuous

29  statement identifying the owner of each business that will

30  provide the burial rights, merchandise, or services.

31  Additionally, if a contract does not contain this disclosure,

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    Florida Senate - 1999                            CS for SB 196
    315-742A-99




  1  the contract is voidable by the purchaser. In any action based

  2  on this subsection, the licensee or registrant has the burden

  3  of proof to show that the disclosure was made. As used in this

  4  subsection, the term "owner" includes, but is not limited to,

  5  a publicly traded corporation owning more than 10 percent of a

  6  licensee or registrant providing such rights, merchandise, or

  7  services.

  8         Section 5.  In order to provide more useful information

  9  to the Legislature and the public concerning consumer

10  complaints about the funeral and cemetery industries, the

11  Department of Business and Professional Regulation, the

12  Department of Banking and Finance, and the Department of

13  Agriculture and Consumer Services are to coordinate the method

14  in which they keep records of and report data on such

15  complaints, including the categories and the format used to

16  organize this data.

17         Section 6.  This act shall take effect October 1, 1999.

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19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                              SB 196

21

22  The Committee Substitute for Senate Bill 196 deletes
    provisions requiring advance notice of intent to acquire a
23  business and inserts a provision regarding specified state
    agencies to coordinate record keeping and reporting of data on
24  consumer complaints.

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