HLS 10RS-1167 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 451 BY REPRESENTATIVE RITCHIE FUNERALS & FUNERAL HOMES: Provides for changes to the regulation of solicitation by funeral homes AN ACT1 To amend and reenact R.S. 37:831(11), (40), and (72) and 846(A)(introductory paragraph),2 (2), and (3), relative to solicitation by funeral homes; to define "capper", "steerer",3 or "runner"; to define "funeral goods and services"; to define "solicitation"; to4 authorize the imposition of sanctions or fines; to prohibit solicitation by funeral5 home directors; and to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 37:831(11), (40), and (72) and 846(A)(introductory paragraph), (2),8 and (3) are hereby amended and reenacted to read as follows: 9 §831. Definitions10 For purposes of this Chapter and implementation thereof, the following terms11 shall have the meaning as defined herein, unless the context clearly indicates12 otherwise:13 * * *14 (11) "Capper", or "steerer", "or runner" means any business agent or other15 a person who, for monetary benefits or other considerations, procures or attempts to16 deceive, delude, procure business at the direction of, request of, or in cooperation17 with a licensee by means of deceit, trick, cheat, swindle, defraud, or mislead fraud,18 or misleading statements.19 * * *20 HLS 10RS-1167 ORIGINAL HB NO. 451 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (40) "Funeral goods and services" means any one or more of the following1 goods or services:2 (a) goods Goods which are sold or offered for sale directly to the public for3 use in connection with funeral services.4 (b) and any Any services which may be used to care for and or prepare5 deceased human remains for burial, cremation, or other final disposition.6 (c) and to To arrange, supervise, or conduct the funeral ceremony or the final7 disposition of deceased human bodies, including, but not limited to, bodies.8 (d) funeral Funeral merchandise.9 * * *10 (72) "Solicitation" means the act or practice of any licensee or any agent,11 employee, or person acting on their behalf, of approaching someone with a person12 or a group of persons making a request or plea, or to urge someone toward a13 particular cause as it may pertain to the care, custody, or disposition of a dead human14 body.15 * * *16 §846. Refusal to grant or renew licenses; revocation or suspension; grounds;17 hearings18 A. The board may refuse to grant, refuse to renew, or may suspend or19 revoke, any license, or impose a sanction or fine in keeping with the penalty20 provision of this Part, when the applicant or licensee is found guilty of any of the21 following acts or omissions:22 * * *23 (2) Paying, giving or offering, directly or indirectly, orally or in writing, any24 money, credit, discount, gratuity or other thing of value to a third party as an25 inducement for the business of a prospective customer, provided that this prohibition26 shall not be in any way construed as prohibiting to prohibit any of the following:27 HLS 10RS-1167 ORIGINAL HB NO. 451 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (a) the The execution or servicing by the parties thereto of any funeral service1 contract of the type or preneed funeral contract recognized or required by any2 provisions of R.S. Title Titles 22 and 37 of the Louisiana Revised Statutes of 1950.3 (b) A licensee from providing promotional pricing that is disclosed on its4 general price list, including the dollar amount or method of determining the dollar5 amount of any discount, directly to a consumer.6 (c) A licensee from providing discounted or free funeral goods and services7 for infants or a member of an indigent family.8 (3)(a) Solicitation of business, either in person or through agents commonly9 known as "cappers" or "steerers." which is intimidating, overreaching, fraudulent,10 or misleading, that uses undue influence, or that takes advantage of a person's lack11 of knowledge or emotional vulnerability, or engaging in any of the following:12 (i) At-need solicitation of sales of funeral goods and services or funeral or13 disposition arrangements.14 (ii) Soliciting, accepting, or paying consideration for recommending a15 provider of funeral goods and services or disposition arrangements or using the16 services of cappers, steerers, or runners.17 (iii) Contacting persons receiving care in hospitals, rest homes, nursing18 homes, hospices, or similar institutions for the purpose of soliciting preneed funeral19 contracts or the sale of funeral goods and services or making funeral or disposition20 arrangements without first having been specifically requested by that person.21 (iv) Contacting a person suffering ill health or the relatives, caregivers,22 acquaintances, health care providers, or persons having the right to control the23 disposition of the remains of an individual whose death is impending or whose death24 has recently occurred for the purposes of soliciting preneed funeral contracts or the25 sale of funeral goods and services or making funeral or disposition arrangements for26 that individual without first having been specifically requested by that person27 seeking information about funeral goods or services.28 HLS 10RS-1167 ORIGINAL HB NO. 451 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) This Paragraph shall not apply to communications between persons1 related by blood, adoption, or marriage.2 (c) Nothing in this Section shall be construed to restrict the rights of a person3 to advertise or use direct mail or other communications in a manner directed to4 members of groups, associations, organizations, or the general public, or to contact5 persons responding to such communications or who initiate discussion of the funeral6 goods and services being offered.7 * * *8 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Ritchie HB No. 451 Abstract: Defines "capper", "steerer", or "runner", "funeral goods and services", and "solicitation". Authorizes the imposition of sanctions or fines for prohibited acts. Prohibits certain acts of solicitation by funeral home directors. Present law defines "capper" or "steerer"as any business agent or other person who attempts to deceive, delude, trick, cheat, swindle, defraud, or mislead. Proposed law defines "capper", "steerer", "or runner" as a person who, for monetary benefits or other considerations, procures or attempts to procure business at the direction of, request of, or in cooperation with a licensee by means of deceit, trick, fraud, or misleading statements. Present law defines "funeral goods and services" as goods which are sold or offered for sale directly to the public for use in connection with funeral services and any services which may be used to care for and prepare deceased human remains for burial, cremation, or other final disposition and to arrange, supervise, or conduct the funeral ceremony or the final disposition of deceased human bodies, including, but not limited to, funeral merchandise. Proposed law defines "funeral goods and services" as any one or more of the following goods or services: (1)Goods which are sold or offered for sale directly to the public for use in connection with funeral services. (2)Any services which may be used to care for or prepare deceased human remains for burial, cremation, or other final disposition. (3)To arrange, supervise, or conduct the funeral ceremony or the final disposition of deceased human bodies. (4)Funeral merchandise. HLS 10RS-1167 ORIGINAL HB NO. 451 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law defines "solicitation" as the act or practice of approaching someone with a request or plea, or to urge someone toward a particular cause as it may pertain to the care, custody, or disposition of a dead human body. Proposed law defines "solicitation" as the act or practice of any licensee or any agent, employee, or person acting on their behalf, of approaching a person or a group of persons making a request or plea, or to urge someone toward a particular cause as it may pertain to the care, custody, or disposition of a dead human body. Present law authorizes the La. State Board of Embalmers and Funeral Directors to refuse to grant, refuse to renew, or to suspend or revoke any license when the applicant or licensee is found guilty of certain prohibited acts or omissions. Proposed law authorizes the board to also impose a sanction or fine when the applicant or licensee is found guilty of certain prohibited acts or omissions. Present law prohibits paying, giving, or offering, directly or indirectly, orally or in writing, any money, credit, discount, gratuity, or other thing of value as an inducement for the business of a prospective customer; provided that the prohibition shall not be in any way construed as prohibiting the execution or servicing by the parties thereto of any funeral service contract of the type recognized or required by any provisions of present law. Proposed law prohibits paying, giving, or offering, directly or indirectly, orally or in writing, any money, credit, discount, gratuity, or other thing of value to a third party as an inducement for the business of a prospective customer, provided that this prohibition shall not be construed to prohibit any of the following: (1)The execution or servicing by the parties thereto of any funeral service contract or preneed funeral contract recognized by any provisions of present law. (2)A licensee from providing promotional pricing that is disclosed on its general price list, including the dollar amount or method of determining the dollar amount of any discount, directly to a consumer. (3)A licensee from providing discounted or free funeral goods and services for infants or a member of an indigent family. Present law prohibits solicitation of business, either in person or through agents commonly known as "cappers" or "steerers". Proposed law prohibits solicitation which is intimidating, overreaching, fraudulent, or misleading, that uses undue influence, or that takes advantage of a person's lack of knowledge or emotional vulnerability, or is engaging any of the following: (1)At-need solicitation of sales of funeral goods and services or funeral or disposition arrangements. (2)Soliciting, accepting, or paying consideration for recommending a provider of funeral goods and services or disposition arrangements or using the services of cappers, steerers, or runners. (3)Contacting persons receiving care in hospitals, rest homes, nursing homes, hospices, or similar institutions for the purpose of soliciting preneed funeral contracts or the sale of funeral goods and services or making funeral or disposition arrangements without first having been specifically requested by that person. (4)Contacting a person suffering ill health or the relatives, caregivers, acquaintances, health care providers, or persons having the right to control the disposition of the HLS 10RS-1167 ORIGINAL HB NO. 451 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. remains of an individual whose death is impending or whose death has recently occurred for the purposes of soliciting preneed funeral contracts or the sale of funeral goods and services or making funeral or disposition arrangements for that individual without first having been specifically requested by that person seeking information about funeral goods or services. Proposed law shall not apply to communications between persons related by blood, adoption, or marriage. Proposed law shall not be construed to restrict the rights of a person to advertise or use direct mail or other communications in a manner directed to members of groups, associations, organizations, or the general public, or to contact persons responding to such communications or who initiate discussion of the funeral goods and services being offered. (Amends R.S. 37:831(11), (40), and (72) and 846(A)(intro. para.), (2), and (3))