|
Washington Report
January 1999
Industry Challenges for 1999:
Increased Federal Scrutiny,
Efforts to Adopt Uniform State Laws
by Robert M. Fells, Esq., General Counsel
The New Year is barely under way, but already a full agenda of legislative and regulatory issues is confronting our industry. The following summaries highlight some of the topics we will be seeing in 1999:
FTC Funeral Rule Review -- The Federal Trade Commission will be announcing its review of the Funeral Rule any day. Originally scheduled to begin last October, the review proceedings will determine what changes, if any, will be made in Rule. Various industry and consumer advocacy groups will urge the Commission to expand the Rule by covering all sellers. This action would constitute a major expansion of federal regulation of the industry. The ICFA is apparently the only organization opposing Rule expansion. Besides the issue of covering all sellers, consumer advocates want to eliminate the non-declinable professional service fee and, possibly, introduce price controls.
Senate Committee Hearings on Preneed Selling -- In conjunction with FTC Funeral Rule proceedings, the Senate Select Committee on Aging has launched an investigation into preneed sales abuses by the industry. The committee has asked the U.S. General Accounting Office to research the dollar amounts held in trust or through insurance policies due to prepaid contracts. Given the apparent adversarial nature of the inquiry, calls by the committee for greater federal regulation of the industry are expected. Public hearings are planned for mid-year. ICFA has offered its assistance to the GAO and, as with the Funeral Rule, will oppose the expansion of federal regulation of the industry.
AARP Model Preneed Law -- The American Association of Retired Persons, now known officially by its acronym, AARP, is expected to renew its efforts to enact a revised version of its model preneed law in one or more states. Previous versions of the bill had several unworkable provisions including an unlimited cancellation right, 100 percent refund plus interest, and 100 percent trusting. It is unclear whether the revised version will adequately address these concerns. The ICFA, in conjunction with state associations, has opposed efforts to enact the bill.
Uniform State Laws from Regulators -- The North American Cemetery Regulators Association (NCRA) will attempt to publish several policy statements and model guidelines on cremation, cemetery management, and contract disclosures to encourage uniformity of laws in the various states. The ICFA participates on an NCRA advisory committee and is working with NCRA members to resolve some ongoing concerns in the draft statements.
New ICFA Model Guidelines -- After publishing 14 model guidelines for laws and regulations in 1998, plus a new economic study of minimum trust deposit requirements and a preneed consumer satisfaction survey, ICFA plans to publish an additional group of guidelines in 1999. Topics under development include memorial sales and installation, consumer guarantee fund, record keeping requirements, and prepaid contract disclosures.
ICFA members who would like more information on these or other issues should contact association headquarters at 1-800-645-7700.
ICFA Comments on Proposed
Canadian Crematory Regulations
In December, the ICFA submitted comments to the British Columbia Ministry of Attorney General concerning draft crematory regulations the Ministry had circulated for feedback. In its comments, ICFA recommended that the Ministry conduct a cost/benefits analysis to determine the economic impact the proposal would have on industry and the public. ICFA also urged that human remains intended for cremations be classified as non-hazardous and that crematories not be classified in the category of medical waste incinerators.
ICFA cautioned that provisions of the North American Free Trade Agreement (NAFTA) may conflict with proposed sections of the crematory regulations. Finally, ICFA proposed the establishment of an international coalition of governmental agencies, industry groups and concerned scientific organizations to develop uniform performance standards for crematories. The ICFA offered to assist in the establishment of such an entity. Members who would like a copy of the comments should call ICFA headquarters.
Copyright ICFA 1999.
|
