VERY OLD INFO HERE MORE HISTORY THAN ANYTHING ELSE ON THIS PAGE
NEWS
To: MFDA MEMBERS
From: Philip F. Conway, President
Date: March 14, 2005
Subject: Miscellaneous Updates
Indigent Services Survey:
To support the advancement of legislation to help resolve the inequities that currently exist in the statute regarding the funeral and burial of indigents in the Commonwealth of Massachusetts by the Department of Transition Assistance, the Association is collecting data that will be presented to a legislative committee at the time hearings are held on the proposed bills.
To expedite the process, a survey has been created on the website "Survey Monkey". If you do not have access to the internet, please contact the MFDA office and a printed copy of the survey will be faxed or mailed to you the same day.
Please note the following:
1. Price information is as of the end of year 12/31/04. Do not enter 2005 data.
2. The password for access is MFDA (case sensitive).
3. You can complete the survey at several sittings or all at once. If you partially complete the survey you will be returned to the spot where you left off when you log back on. Once you have completed the survey in its entirety, you cannot return to the site with the same e-mail address. Therefore, do not page through to review the questions &endash; even if you do not enter answers to the questions, it will consider your survey complete.
4. Only one survey per funeral home please. However, if you have multiple locations and the charges are different, use a different e-mail address for each location. If you do not have a different e-mail address for each location, call the MFDA office for further instructions.
5. Complete the survey, in its entirety, not later than midnight, Tuesday, March 22nd.
6. The survey site is fully protected to insure the integrity of your response.
7. Any questions or comments? Let us know; we want to make this as user friendly as possible.
8. To access the survey enter the link below or visit the link on our website at www.massfda.org
http://www.surveymonkey.com/CheckPassword.asp?SID=828353&U=66201828353&A=&C=
Thank you for your participation.
The "Next Generation" Funeral Service Licensee Networking Session
The "Next Generation" Funeral Service Licensee Networking Session will be held on April 5th at the Lantana in Randolph, MA, from 4:00pm &endash; 9:00pm, featuring a special presentation by Vanderlyn R. Pine, PhD., retired Professor of Sociology at the State University of New York at New Paltz and nationally recognized Funeral Service Speaker and Consultant. Sponsor a graduating mortuary science student, participate in an informative program by industry leaders about funeral service trends, association benefits and network with those who may be seeking positions in the very near future. On top of that, earn 4 CEU's toward your license renewal.
Invitations have already been mailed to all New England Institute students. FINE students, at the request of their Dean, will be receiving invitations directly from the school. If you have or are aware of a student at FINE or another funeral service school that has not received an invitation and would like to attend, please contact the MFDA office.
Independent Contractors:
Could you effectively operate your funeral home if you had to stop using independent contractors? What about if you had to treat your independent contractors as employees and offer them the same benefits as your regular staff? A new Massachusetts law may require you to start thinking and talking about these questions with your accountant or employee benefits specialist. Last year, a law took effect that both clarifies which workers may be classified as independent contractors and expands the presumption of employment status to other wage and hour taxation and workmen's compensation statutes. The Massachusetts's Attorney General is responsible for enforcing the independent contractor statute and has recently published an advisory setting forth his interpretation of the new law.
Funeral establishments and their accountants should familiarize themselves with the new guidance which is available on the Internet @ www.ago.state.ma.us/filelibrary/148BAdvisory.pdf. The state law is stricter than the federal standards of the Fair Labor Standards Act and the Internal Revenue Service, with implications for unemployment insurance, workers compensation, and taxation, as well as overtime and benefits.
MFDA members should also be aware that the guidance raises new questions about the scope of the law and which businesses are covered. MFDA is closely monitoring activities to clarify the law's scope, intent and impact.
Additional discussion on this statute will be included in the next MFDA Association News. In the meantime, if you do use independent contractors, you should consult with your accountant.
New Employment Posters Required &endash; Don't Buy Them - - They're Free:
Three new posters &endash; two state, one federal &endash; that all employers must post in the workplace have been issued.
The Massachusetts Office of Fair Labor and Business Practices has updated its minimum wage poster. Employers may download the poster at www.ago.state.ma.us/sp.cfm?pageid-1001 (the third poster down the list), or may telephone the Fair Labor Office at 617-727-3476 to request a free copy.
The Massachusetts Commission against Discrimination has a new Fair Employment poster regarding military status. The link is www.mass.gov/mcad/forms.html; scroll down to fair employment poster.
The U.S. Department of Labor has issues a new required poster concerning employees' rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA). This poster is available at www.dol.gov/vets (click on the poster at the top of the page). If you do not have website access, call the MFDA office and we will send you a copy of any of these posters.
Jack Kazlauskas Educational Open
In recognition of his lifelong love for continuing education and professional development, the Golf Committee has decided to rename the annual scholarship outing. It will now be referred to as the "Jack Kazlauskas Educational Open." All proceeds from the outing benefit the Massachusetts Funeral Service Educational Foundation. Foundation proceeds will be used to underwrite scholarships and other special educational/consumer information events. This year's tournament will be held at the Ocean Edge Resort and Golf Club on Friday, June 3rd. Watch your mail for details.
Annual Banquet and Installation of Officers
Mark your calendars for the 2005 Annual Meeting and Professional Development Symposium at the Ocean Edge Resort and Golf Club in Brewster, MA on June 3rd and 4th. Start your weekend off on Friday at the Educational Open. Raffles and Prizes will be awarded! On Friday evening, enjoy a good old fashioned Cape Cod Clambake and our 2nd Annual Auction to benefit the Scholarship Fund. On Saturday, attend our Professional Symposium. Don't miss our Annual Banquet and Installation of Officers on Saturday evening. Watch your mail for details, but make your room reservation today!
Ocean Edge Rooms &endash; Reserve Now!
Make your room reservations now! Attached is the room reservation form for Ocean Edge Resort and Golf Club. All room reservations must be made by May 10, 2005 to receive the MFDA Group Rate.
Verizon Yellow Pages Advertising
The MFDA has submitted two communications to Verizon Yellow Pages asking them to discontinue their policy of allowing advertising/listing of businesses (retail casket stores, florists, etc.) other than "Funeral Directors/Establishments" under that category in their publication. Initial reports from Verizon indicate that they are willing to consider and act on our position. More details will be available in the next MFDA Association News. Thank you to Ed Mazur for contacting us about this problem in the Springfield area Yellow Pages.
"North Shore" State Board Meeting:
Ralph Barile has asked us to advise you that the January "North Shore" State Board of Funeral Directing and Embalming meeting that was cancelled due to snow has now been rescheduled for April 12, 2005 at 1 p.m. at the Montvale Plaza in Stoneham. For more information or to confirm this meeting, please contact the Board directly at 617-727-1718.
Celestial Casket Files Bankruptcy; Consumers Keep Asking Questions!
With the owner of the third-party casket company, Celestial Casket, filing for personal bankruptcy, Kathleen K. Ryan, General Counsel for the Pennsylvania Funeral Directors Association says consumers and funeral directors continue to call asking what they should do (some Massachusetts members have told us about clients that have prepaid for these caskets through the American Legion or AMVETS program). "I am referring them to the Attorney General's Office in Pittsburgh," says Ryan, "so they can be included in the injunction proceedings instituted against Celestial and its principal, Joseph Stabile." If you are aware of any Massachusetts resident that may have an interest in this proceeding, they can reach the Attorney General's Office in Pittsburgh by contacting the investigator, Darlene Westfall at 412-565-3526, or the attorney, Amy Schulman at 412-565-5134.
Circle of Tapawingo 2005:
The Circle of Tapawingo is entering its fourth year offering a week long overnight camp program in Sweden, Maine to girls who have experienced the death of a parent. Campers should be between the ages of 8 and 12 years old and the program continues to be tuition free. The Circle 2005 will be held from Monday, August 22 through Saturday, August 27th. There are only twenty openings. If you have any potential referrals or questions about the program please call Cathy Spear, LICSW, Director of Camper Services at 781-237-7289.
Walk for MS / Join the Biggins Team:
The Chris Biggins Team &emdash; A Walk For Mom &emdash; April 10, 2005
Dear MFDA Members:
In March of 2004, our family was devastated to find out that our "Mom" had been diagnosed with MS. At first it was a very difficult thing to accept. Through time and education, we've learned how to individually adjust all of our lives to MS. Over the past year our mom has shown us what a trooper she really is. We joined the walk last year and were very successful! This year were looking to raise an even larger walking team & contributions! Our family is ready to walk for the fight of MS, and of course most importantly, for our "Mom".
Erin Biggins
Daughter of Bob and Chris Biggins
Magoun Biggins Funeral Home, Rockland, Massachusetts.
Would you like to be a sponsor of Erin's team in honor of her mom Chris with the objective of helping to find a cure for MS? Please click on her team page at http://www.nationalmssociety.org//MAM/personal/my_team.asp?pa=51437339&pd=MAM0EWLK20050410BOS or contact Erin @ erinbiggins@aol.com for more details about how you can help.
2nd Annual NEI Alumni St. Patrick's Day Pub Night
To be held at Doyle's Pub in at 3484 Washington Street, Jamaica Plain on Thursday, March 31, 2005 at 6:00pm. Cash Bar &endash; Pizza &endash; Appetizers. For more information, contact Mike Flynn at 617 828-7856.
In a message dated 2/15/05 1:55:18 PM, Mike Flynn in Boston, Massachusetts writes:
Samantha Jane Brasco arrived 12:00pm today! (Feb. 15, 2005) She arrived at 7lbs 8oz, and very happy and healthy! Mom, Dad and Samantha all seem to be doing well! AN EASY birth Paul says, and I'm sure when I talk to Stacy the story may change!!!!
In a message dated 9/30/04 11:24:39 AM, Mflynn6705 writes:
Hi all,
Just a quick note to save the date of Tuesday, April 5, 2005 (evening) . We are planning on having our Graduating Students / New Licensee Conference that evening. This will include MFDA members and students from any of the funeral schools. (NEI , FINE).
We will be having some guest speakers, door prizes, a panel discussion, and some other great things.
If anyone has any suggestions please email them to myself or the MFDA office @ admin@massfda.org. Or feel free to call me. Also if anyone would like to assist on this project let me know.
I'm looking forward to doing this again in April and hope it will be a HUGE success.
Thanks
Mike Flynn
617-828-7856
mflynn6705@aol.com
In a message dated 9/8/04 10:38:07 AM, mnolan@massfda.org writes:
Edward Bortone, Director of Security at Lahey Clinic in Burlington, Mass has asked us to send along the following information regarding parking at the loading dock:
Please be advised that parking at the Loading Dock within the Fire Lines (striping area) will no longer be acceptable. The Fire Lanes have been modified per the Burlington Fire Department in order to allow 18 feet between the curb and the lot for fire truck access at all times.
Please park beside the Fire Lane or in the first dock space. If your vehicle is spotted in the fire lanes, we will be forced to have your vehicle towed.
Thank you for your consideration in this matter.
If you have any questions or comments, please direct them to Mr. Bortone @ 781-744-8240.
Margie Nolan
Massachusetts Funeral Directors Association
In a message dated 6/19/2003 11:54:20 AM, Mike Flynn in Boston writes:
Boston Burial Permits
Effective Saturday June 21, 2003 The Burial Permits Office - Weekend and Holiday Operations will move from the Mattapan Campus to:
NEW LOCATION:
South Block Building
35 Northampton Street
Boston, MA 02118
4th Floor
Piano Lounge
PHONES: Phones will remain the same:
(617) 534-9129 Phone
(617) 534-9338 Fax
DIRECTIONS:
Take Massachusetts Ave. to Albany St., take a right onto Northampton St , proceed to 35 Northampton St.
PARKING:
Free parking will be available to Funeral Directors at the left side of the entrance of the building. The parking space is labeled "No Parking, Parking for BPHC Employees only" however Funeral Directors are authorized to park there on weekends and holidays. Please do not block the driveway entrance to the parking garage sign-in at the security desk, take the elevators to the 4th floor, and walk through the lobby and hallway, following the signs that will direct you to the Piano Lounge.
For more information please call the Burial Permit desk at (617) 534-2842. Thank you.
Boston Public Health Commission
MORE
With budget cuts, we can expect government services to decrease, particularly burial transit permits availability on weekends.
In a message dated 6/8/2003 7:36:37 PM, Mike Flynn in Boston Massachusetts writes:
Per the City of Boston, City Hall Death Records
Certified copies of Death will now cost 12.00 each as of July 1, 2003
Burial Permits with the Boston Public Health Comm. Will be $20.00 which is in effect now.
Corrections for Death Certificates will now cost $50.00
Per Judy McCarthy, City of Boston
MORE
Mike also writes
I got word today from Aries at 1010 Mass Ave. That today was going to be
the last day (Sun. 6/8/03) that the Boston Public Health Comm. Will issue
permits from the Mattapan Location on weekends. No word yet as of where
they will be issued from. Hopefully they will know by Tues. 6/10
As soon as I hear more i ll forward the info
MORE
In a message dated 6/12/2003 10:07:56 AM, Mike forwarded this too!
Effective July 1st Cambridge Mass is increasing their fee for Burial Permits from $5.00 to $10.00
Per Harold Cox
Chief Public Health Officer
Health Dept.
119 Windsor St.
Cambridge
MORE
Town of Brookline Mass. Fee increase for burial permits and removal permits effective July 1, 2003 $20.00
Per Patrick Maloney, MPHA
Asst. Director of Health
Town of Brookline
MORE
City of Lowell, Massachusetts will not have Burial Permits available on weekends or holidays effective July 1st 2003.
END OF ABOVE ARTICLE
In a message dated 1/28/03 6:10:07 PM, Fred in Massachusetts writes:
The Massachusetts Board of Registration of Funeral Directors & Embalmers entered into a Consent Agreement with 30 Massachusetts Funeral Homes in resolution of complaints that the funeral homes had not consistently listed on stationary, invoices, and advertising materials the fact that Service Corporation International ("SCI") possessed an ownership interest of 10% or more in the funeral homes. Massachusetts funeral home regulations requires all funeral homes to list on their letterhead stationary, invoices, and all advertising materials, the name, complete address and telephone number of all entities which possess an ownership interest of 10% or more in the funeral home.
According to the agreement, the funeral homes received a formal reprimand and have agreed to come into compliance with the regulation as required by the Board and to submit documentation required by the Board. SCI and the funeral homes cooperated with the Board of Funeral Directors and Embalmers in resolving the advertising issues.
The affected funeral homes include:
* Arthur J. Brunelle Jr., Funeral Home in Chicopee
* Birchcrest Funeral Home in Swansea
* Brooklawn Funeral Home in New Bedford
* Carr Funeral Home in Everett
* Cherry Place Funeral Home in Fall River
* Deware Funeral Home in Quincy
* Duckett Funeral Home in Sudbury
* Eustis - Cornell Funeral Home in Marblehead
* Fairlawn Mortuary in Fairhaven
* Faye McCabe Funeral Home in Lowell
* Gillooly Funeral Home in Walpole
* J.E. Henderson Funeral Home in Everett
* Jeffrey E. Sullivan Funeral Home in Fall River
* Joseph A. Langone Funeral Home in Boston
* J.S. Waterman & Sons Funeral Homes in Wellesley and Boston
* Kirby-Rapino Funeral Home in E. Boston
* Maplewood Funeral Home in Fall River
* Messier Funeral Home in Holyoke
* National Cremation Service in Quincy
* Perlman Funeral Home in Worcester
* Pillsbury Funeral Homes in Spencer, Brookfield, N. Brookfield and Barre
* Richardson Funeral Home in Lynn
* Rose E. Sullivan Funeral Home in Somerset
* Stanetsky Memorial Chapels in Brookline and Salem
* Wadsworth-Chiappini Funeral Home in Framingham
The Board of Registration of Funeral Directors and Embalmers maintains establishment certificates for approximately 700 funeral homes in Massachusetts and 2,600 licenses for embalmers and funeral directors in Massachusetts. The Board seeks to ensure that persons and establishments licensed to provide funeral services to the citizens of the Commonwealth comply with regulations designed to promote public health and the protection of consumers.
http://www.state.ma.us/reg/Consumer/press2003/em012103.htm
MASSACHUSETTS FUNERAL DIRECTORS ASSOCIATION January 23, 2003
Dear Colleague:
Ø Do you need an affordable and easy way to obtain your CEU's?
Ø Are you looking forward to hitting the slopes, shopping, dining or just getting away for weekend?
Ø Is your family asking for a fun winter getaway?
If your answer is yes to any of the above, plan to join with us at:
The Massachusetts and New Hampshire Funeral Directors Association
'Almost Annual' Mid Winter Meeting
February 28, 2003 - March 2, 2003
(Friday to Sunday)
The Red Jacket Mountain View Resort
North Conway, New Hampshire
Our schedule is as follows:
· Friday Night:
· Welcome Cocktail reception
· Saturday:
· CEU Session featuring David Walkinshaw in the morning.
· Saturday afternoon free for skiing, shopping, relaxing
· A social event with the New Hampshire FDA members Saturday evening
· Sunday:
· Buffet Brunch,
· Check out - or plan to ski, shop, etc. in the North Conway area!
Space will go quickly due to the popularity of the North Conway region on winter weekends. If you plan to participate, we'd recommend that you immediately return the attached room reservation form to the Red Jacket Mountain View Resort to reserve your space!
The tuition for our CEU program, "WHAT GOOD ARE FUNERALS?" (5 CEU's) is only $50 for members. Please notify the MFDA office if you want to register for this session.
I hope you can join us for what looks to be a great weekend!
Sincerely,
Rick
RICHARD C. DEWHIRST, CFSP, CPC
President
MASSACHUSETTS FUNERAL DIRECTORS ASSOCIATION IMPORTANT INFORMATION
TO; MFDA MEMBERS
FROM: RICHARD C. DIREST CPC, CUSP
PRESIDENT MFDA
RYE: REPORT OF SENATE POST AUDIT AND
OVERSIGHT BUREAU RYE: PREENED FUNERAL
CONTRACTS
DATE: JANUARY 3, 2003
Attached please find a copy of the above referenced report which was released by the Office of Senator Cheryl A- Jacques. We felt it important that you have a copy of this Policy Brief as soon as it became available.
As you know, the Massachusetts Funeral Directors Association is very committed to working to insure the safety of preened funeral funds and the confidence of consumers who make prepaid funeral arrangements. Fraudulent or embezzlement schemes cannot be tolerated by the profession and the hundreds of Massachusetts funeral establishments who operate honestly and ethically in the many communities of our state.
Additional information is forthcoming regarding this report the findings and the recommendations. In the interim we encourage your comments about the issues contained within. Please mail^ fax or e-mail them to us at the addresses shown below.
POLICY BRIEF
Senate Post Audit end Oversight Bureau'
Chair. Senator Cheryl A, Jacques
JANUARY 2003
Robbing the Grave
PROTECTING CONSUMERS FROM PRENEED FUNERAL CONTRACT FRAUD AND LOSS
> Thousands of consumers in Massachusetts have entered into pre-need contracts with funeral homes in order to protect their loved one from the burden of costly funerals by paying in advance for their funeral arrangements;
> There have been at least eight separate; documented examples of funeral homes that have left dozens of consumers in Massachusetts empty-handed, stripped of the funds they invested in preneed funeral contracts due to fraud or other actions by funeral home officials.
> Massachusetts law and regulations govern preneed contracts. but do not adequately protect preneed Investments that are mishandled or lost through bad investment decisions; fraud or embezzlement schemes
> At least nine other states have created a financial safety net to protect consumers if their preneed funeral accounts are mishandled or lost
Background
The cost of funerals has been increasing at a 3 rapid rate making payment for funeral goods and services/ a major expense; According to the Funeral Consumers Alliance, the average funeral costs more than $5,000> This price excludes cemetery and monument expenses, which bring the total costs of a funeral to approximately $8;000 to $10.000. The National Funeral Directors Association found that. even when adjusted for inflation the average cost of a funeral has risen 26% since 1991-
As a result of high costs many individual consumers pay and arrange for their funerals by entering into 'preened contracts with funeral homes far goods and services upon their death. According to the National Funeral Directors Association i 30% to 40% of the nation^ funerals are arranged before the death of the Individual As of 1998. more than seven million Americans had entered into preneed contracts Between 1995 and 1999
*****
the American Association of Retired Persons (AARP) reports that the total amount of money in preneed contracts rose from $18 billion to more than $25 billion.
Mirroring the national trance pro-need contract sales in Massachusetts have risen over the past several years and the cost of funerals in the state has continued to rise; Thousands OF pro-need contracts exist in Massachusetts,
There are a number of reasons why pro-need contract safes are rifling- For many. the most compelling reason lo purchase a preneed contrast is to relieve loved-ones of the financial burdens associated with death ¥
Much of the growth over the last several years in preneed contract sales has occurred as a result of the growing elderly population and the increasingly competitive nature of the funeral industry. Funeral homes have become more aggressive in trying to lock in future business and as the number of seniors continues to grow, the marketing of preneed contracts continues to Increase. Many seniors set aside money for their funeral arrangements in pro-need accounts when they are entering a nursing home and enrolling in the Medicaid program, an expenditure allowed under Medicaid guideline®.
There have been at least eight separate documented examples of funeral homes that have left dozens of consumers in Massachusetts empty-handed, stripped of the funds they invested in pro-need funeral contracts due to-fraud or other actions by funeral home officials. This can make it necessary for elderly people and their surviving families to raise funds to pay for the funeral a second time; Massachusetts regulates preneed contracts, but does not provide adequate consumer protection against their misuse. Consumers who invest In preneed contracts do not expect to lose their money or to leave their grieving families to scramble for funds to pay for their funeral after they have already made the financial arrangements- Massachusetts Background
Chapter 112 sections 82 through 87 of the General Laws of Massachusetts regulate funeral directors and funeral homes- All funeral directors and funeral homes are required to fulfill certain qualifications in order to be registered licensed and certified by the state. The Division of Professional Licensing Board of Registration of Funeral Services (the Board) has the authority to create rules and regulations regarding standards of service and practice for funeral directors. Additionally, the Board is authorized by law to deny; suspend or revoke the state approved license or certificate of a funeral director who has been convicted of a crime involving moral turpitude or unprofessional conduct. For example. funeral directors could lose their license or certification if convicted of misrepresentation or fraud.
The Board has developed detailed regulations to protect consumers who buy preneed contracts (CUR 2SS-4,00 through 239-4.10), However, there is no provision under the Board's regulations that would provide a way for consumers to be reimbursed for any funds lost through fraud and mismanagement
*****
All pre-need contract must be arranged between a consumer and a state-registered funeral director on behalf of a licensed funeral home. In Massachusetts, approximately 700 funeral establishments and 2.000 individuals are licensed to sell pre-need contract.
Under current regulations, money received by a funeral home through a pre-need contract must be invested in a bank account or an insurance policy such as a funeral trust bank account or a pre-need insurance policy or annuity; the pro-need contract funds are Invested in a bank account in the name of the funeral home, as a trust for the individual consumer who is listed as the beneficiary. The funds are to be used exclusively for carrying out the terms of the contract. Upon entering into the contract, the consumer relinquishes the rights and responsibilities $ for the management of and access to the funds.
It Could Happen to You
Fifty-three consumers lost the pre-need contract money they had invested with the Morrison Funeral Home in Wakefield- These elderly consumers lost amounts ranging from $445 to 6685. for a total loss of more than $150,00(1 One Massachusetts women, the late Eleanor Atwater of wakefield, entered into a pre-need contract with Morrison Funeral Home worth more than $5,000. Her son, David Atwater, went to the Morrison Funeral Home every year to receive his mother's account statement and to verify the amount of funds in her account
After her death, Mrs..- Atwater's family was shocked to find that the money she had invested in a pre-need contract had disappeared without a trace; The local police department found that the funeral director, Paul Morrison, had withdrawn the prepaid money from the bank_ Upon further Investigation, the state Attorney Generals® office discovered that Morrison had run into some financial difficulties and closed his funeral home without settling his accounts or notifying his customers. As a result, Mrs.. Atwater^s family had to take out personal loans to pay for her funeral.
In 1994, Paul Morrison was formally charged with five counts of larceny from customers of Morrison Funeral Home; Morrison pled guilty and was sentenced to one year in Jail. in a separate civil lawsuit, the state Attorney General's office initiated negotiations with Morrison in order to collect restitution from him on behalf of his customers; On February 27, 1?1996 the Suffolk Superior Court ruled in favor of the commonwealth specifying Morrison would be obligated to make quarterly payments, dependent on his income level, to a fund set up at the state Attorney General's office to repay his victims. However, Morrison was disabled and had little income. The most any victim, including Mrs..; Atwater's family, was able to recover was $100.
All Massachusetts funeral directors are required to file annual reports with the Board listing the number of new pre-need contracts, how and where contract funds are invested and the location of contract records, Massachusetts regulations also require that pre-need funeral contracts include a list of the rights and obligations of each party, and that the contract holder must inform the consumer in writing of any changes to the contract terms. Funeral homes must also provide consumers entering Into negotiations or discussions regarding pre-need contract® with a buyers guide that 1$ approved by the Board and that contains information on prices and services, financing options and consequences as well as cancellation rights;
Under certain circumstances, Massachusetts consumers can cancel a pro-need contract-If a contract is canceled within ten days after it is signed, the consumer can retrieve all money invested without penalties If a consumer wants to cancel their contract after ten days and if the terms of the contract did not make It irrevocable, the consumer con get back the entire balance minus any bank fees or taxes paid by the funeral home;
All funeral trusts must follow investment, amendment; disclosure access, disposition, transfer, and cancellation requirements; Furthermore funeral directors are required to give notice of changes affecting the contracts and trusts are obligated to locate the beneficiaries of the trusts, and must keep records on the funds- There are also specific requirements that money In a pro-need contract placed in an insurance policy or annuity must comply with all applicable state and federal laws.
A funeral home experiencing bankruptcy is required to notify all customers with pre-paid contracts and to advise them about possible arrangements to retrieve their money-
Consumers have the option of getting a refund, transferring their money to another account with a new funeral home or leaving their money where it is Investigating Pre-Need Fund Mismanagement
In 2002. the state Attorney General's office initiated litigation against two funeral homes and their director - Bick and Curry Funeral Home; inc of Beverly allegedly mishandled the pre-need contracts of approximately 14 consumers_ worth a total of $85,000 in addition approximately 48 consumers Of the Johnston Funeral Home of Bridge water are missing about $140,000 in pro-need contract deposits«
In the case against Bick and Curry Funeral Home the funeral home owner had failed to provide records to the Board of Registration of Funeral Services on the funds consumers had Invested. When the funeral home owner passed away, his estate could not account for approximately $85,000 In pro-need contract deposits^ A settlement was fifed at the end of October that provided -for the return of $98,000 (the original deposits plus interest) to the consumers who had pre-pald for funeral arrangements-
In the second case. Johnston Funeral Home's director had also failed to provide records to the Board on its pre-pald contracts, and the Board decided to refer the case to the Office of the Attorney General because the Board could not determine whether the funds had been unlawfully used In just these two cases, e total of approximately 62 consumers had lost at at least $225,000.. exclusive of interest on their deposits.
Other Massachusetts Concerns
Some other concerns have been raised regarding pre-need contracts end funeral homes in Massachusetts
Bait and Switch
When consumers enter into pre-need contracts most will not need the goods and services of the funeral home or director immediately. When the services are needed, the funeral home may have stopped providing a particular service that was originally agreed upon as a part at the contract or the good may not be manufactured anymore This would make it necessary for a different service to be provided In place of the original service. Funeral homes are currently allowed to charge more money for these "new" services if it, service requested in the pre-need contract are unavailable at the time of the consumer's death Thus; survivors can be faced with additional charges when they were led to believe that all expenses had been taken care of by the pre-need contract,
A Regulation Loophole
Pre-need funeral contract funds can be invested in a bank account or an insurance policy; Often the funds are invested in funeral trust accounts. Current regulations allow the funds to be placed in other types of financial accounts, such as a standard savings account- However, despite the fact that such accounts are allowed current Board regulations do not directly apply to some of these investment vehicles; such as the standard savings account Consequently a funeral home can plaice a consumer's pre-need contract funds into an account that is not subject to the Board's protective regulations;
Reporting Glitches
Massachusetts funeral home directors are required to submit an annual report to the Board detailing specific information about pre-need contracts under their jurisdiction- However they are not required to submit the names of each consumer investing in pre-need services; Thus: when cases of fraud occur; the Board is often only aware of the problem if consumers come forward to complain about lost funds. It Is possible that there may be victims of pre-need fraud and abuse who have lost money, taut are too grief-stricken to notify the Board of their loss; or may not yet be aware that their money has been lost or misused,
Experiences in Other States
At least nine states have established consumer protection guarantees to ensure that preneed investments are protected. States have chosen to provide these protections in a variety of ways including; requiring funeral directors to pay a small fee for each funeral or contract to fund a guarantee account which would reimburse consumers for lost investments, requiring consumers to pay a fee for each contract they buy to fund a guarantee account: or requiring funeral directors and cemetery associations to purchase a bond to guarantee the funds. If a victim needs to make use of a guarantee fund, some states have provisions that allow a state entity to require the funeral director in question to repay the fund.
A Repayment Success Story
Eldery consumers entrusted Kenneth Sprague, a New Hampshire funeral director and at the time. a part owner of Spadafora Funeral Home in Malden Massachusetts, with thousands of dollars in advance payments For their funerals. Hem/ever in 1997; according to press account; Sprague was caught storing corpses because he had already spent the pre-paid funeral contract money that the Individuals had Invested for their cremation. A total of $160,000 In pre-need contract funds from 46 consumer was missing.
Sprague was charged with falsifying records and failing to deposit the money that he received for pre-paid funerals. He was sentenced to three years In prison. He was also required to pay into a fund set up by New Hampshire authorities to make restitution to the affected families.
One of the families who got caught in Sprague's scheme was from Massachusetts; and faced the loss of $3,227 they had invested in a pre-need contract ¥ The Massachusetts Board of Registration of Funeral Services was able to arrange for this family to be compensated from the New Hampshire fund.
State Initiatives:
Indiana charges funeral directors an annual fee ranging from $2.50 to $10.00 foreach new pre-need contract, depending on the value of each contract The fee canbe paid by the funeral director or charged to the purchaser. The money is then put into a Pre-Need Consumer Protection Fund that is administered by the estate end used to reimburse consumers who have lost their pre-need contract Investments due to fraud or mismanagement. When the account balance reaches 1.5 million, payments are suspended until the balance is below that amount,
In North Carolina the state Board of Mortuary Science administers a Pre-Need Recovery Fund. Funeral homes that gel! pre-need contracts must pay a fee to the Board of up to $20 for each contract In the event that a reimbursement is necessary; the Board Is authorized to bring action against the responsible funeral home director to recover the lost money-
Florida's Pre-Need Funeral Contract Consumer Protection Trust's Fund is administered and regulated by the state Board of Funeral and Cemetery Services. Funeral directors with Pre-need contracts must pay a per contract fee annually. For each contract less than or equal to $1.500. the fee is $2,50, and for each contract greater than $1»500 the fee is $5.00. if the balance of the account is greater than $1 million; the Board can lower the fees to no less than $1 per contract.
Bonds Can Protect Pre-Need«d Consumers
The North Dakota Securities Commissioner requires funeral directors find cemetery associations that use pre-need funeral contracts to place a bond with the Commission to protect against fraud. The bond amount covers 10% to 15% of the amount the funeral director has In outstanding funeral contracts, a number that is based on the average of the funeral director's last three years of sales. The minimum bond is $3,000, and the maximum bond is $20,000. The funeral provider must also report to the slate annually on each individual pre-need contract.
The Connecticut Legislature's Select Committee on Aging proposed a bill in 2000 to protect consumers purchasing contracts for funeral services. The bill would require funeral home owners, before selling pro-paid contracts, to post a surety bond or a series of bonds in varying amounts. The amount of the bond would vary according to the number of homes the funeral director owns. ranging from $50.000 for one to four homes to $1,000,000 for 15 or more homes. Anyone damaged by the wrongful conversion of pre¬ paid funds would have the right to sue against the bonds to recover damages, including reasonable attorney fees.
Findings
¥ Thousand of consumers throughout the state have invested their money in pre-need funeral contracts to relieve their family members of future financial burdens and to protect them from the high and rising cost of funerals.
¥ There have been et least eight separate, documented cases over the past several years in which dozens of consumers in Massachusetts have been left empty-handed. stripped of the funds they have invested In pre-need funeral contracts. Yet, Massachusetts law and regulation^ despite their strengths, do not provide adequate protection for consumers, if their money disappears due to bad investment decisions or fraud and embezzlement schemes,
At least nine states have established mechanisms to protect the money consumers invest in pro-need contracts.
Recommendations Consumers deserve to know that the Investments they make for their funerals are secure.
The Board of Registration or Funeral services should do the following:
*******
¥ A financial safety net should be established so that victims of pre-need contract fraud or mismanagement will have the ability to regain lost funds The Board should promulgate regulations establishing a protective mechanism and should recommend to the Legislature any statutory changes that are necessary ^ to accomplish this goal.
¥ Funeral home should not be allowed to charge more money for ^new goods or services if the services requested in the contract are unavailable or the goods are no longer manufactured at the tine of the consumer's death If portions of the contract cannot be honored» the consumer should receive comparable service at the same cost. or be reimbursed for that portion of the contract.
¥ Standard savings accounts and all other possible financial vehicles where pre-need funds can be held should be included under the Board's regulations governing the use of the funds.
¥ Funeral homes should be required to submit the names of all people who hold pro-need contract® lo the Board In their annual reports so that in case of fraud or abuse, the Board may notify each person who has been affected.
For more information contact Senator Cheryl Jacues Chair of the Senate Post Pent Audit Oversight Committee at either cjacques@senate.state.ma.us or 817 722-1555.
In a message dated 2/14/02 5:20:59 PM, Mike in Massachusetts writes:
This was e-mailed to me from a fellow funeral director, Pass it along ! MIKE
Hi everyone. I just wanted to let you know that we were contacted by a local board of health/town clerk's office today regarding death certificates. They said that the state will no longer be accepting death certificates that have R-301-99 printed on the lower left corner. All certificates must now be imprinted with R-301-01. You can contact the Office of Vital Statistics on Mount Vernon Street in Dorchester for the updated R-301-01 death certificates.
Above is: Elaine Trudeau, The Registrar of Vital Records and Statistics (death, birth records etc.) She was our first speaker and she enlightened us to the Electronic Death Certificate mandated for January 01, 2003. She told us there are a few prototypes and New Jersey's version of the electronic death certificate seems to be the most favored model. Elaine also had Death Registration Packets for everyone this 38 page hand out has all the latest guidelines on how to pass in the perfect death certificate.
Above: Larry Sussman, CTBS the Director of Quality Assurance at the New England Organ Bank, Larry and Ginnie told us that each year they are referred 40,000 Potential Donors and I was astounded to learn that less than 500 are used by the organ bank, every death in Massachusetts is referred to the New England Organ Bank and these folks wanted to let us know how easy it is to work with them. You can call the New England Organ Bank at 800-446-6362 and/or you can e-mail Larry Sussman their director at Larry_Sussman@neob.com
Light was not the best for pictures, but these are the best pictures I could get most zooming in across the room, these are candid shots, taken at random.
