18VAC65-30 Regulations for Preneed Funeral Planning

REGULATIONS

Vol. 29 Iss. 25 - August 12, 2013

TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING

BOARD OF FUNERAL DIRECTORS AND EMBALMERS

Chapter 30

Fast-Track Regulation

Title of Regulation: 18VAC65-30. Regulations for Preneed Funeral Planning (amending 18VAC65-30-70).

Statutory Authority: §§ 54.1-2400, 54.1-2803, and 54.1-2820 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: September 11, 2013.

Effective Date: September 26, 2013.

Agency Contact: Lisa Russell Hahn, Executive Director, Board of Funeral Directors and Embalmers, 9960 Mayland Drive, Suite 300, Richmond, VA 23233-1463, telephone [phone], FAX [phone], or email [e-mail].

Basis: Section 54.1-2400 of the Code of Virginia provides the general powers and duties of Board of Funeral Directors and Embalmers, including to promulgate regulations; and §§ 54.1-2803 and 54.1-2804 of the Code of Virginia authorize the board to regulate preneed funeral planning services and to determine the qualifications to enable any person to engage in the practice of preneed funeral planning.

Purpose: This action is in response to a periodic review of regulations. The overall purpose of the amended regulation is clarification and ease of compliance with requirements for preneed funeral planning. Less restrictive regulation for recordkeeping will result in a modest decrease in the regulatory burden without any associated risk of harm to the public. The board will continue to have the ability to monitor compliance and to enforce regulations that protect the public health and safety in preneed contracts.

Rationale for Using Fast-Track Process: The fast-track process is being used because the amendment to the regulation results in a less restrictive regulation. There should be no controversy from this periodic review recommendation.

Substance: Amendments will allow a contract provider to maintain a chronological or an alphabetical listing of all preneed contracts.

Issues: There are no real advantages or disadvantages to the public. Clarification of rules or a modest reduction in regulatory requirements will benefit licensees, but there is not likely to be a perceptible advantage to the consumer. There are no advantages or disadvantages to the Commonwealth.

Small Business Impact Report of Findings: This regulatory action serves as the report of findings of the regulatory review pursuant to § 2.2-4007.1 of the Code of Virginia.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The proposed changes will allow funeral service providers to maintain preneed contracts in an alphabetical order.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. The proposed changes will allow funeral service providers to maintain preneed contracts in an alphabetical order. Current regulations require providers to maintain a chronological listing of all preneed contracts. According to the Department of Health Professions (DHP), chronological listing is required primarily for ease of inspection to check compliance with the requirements for preneed funeral planning. However, DHP reports that some providers prefer to maintain their preneed contracts in an alphabetical rather than a chronological order due to ease of access.

This change will accommodate the preferences of providers who wish to maintain their contracts in an alphabetical order. The proposed less restrictive record keeping requirement should benefit some providers while complicating an inspectors verification of compliance by a small margin. However, neither the benefits nor the costs are likely to be significant.

Businesses and Entities Affected. The proposed regulations primarily apply to funeral service establishments. There are 426 licensed establishments in Virginia. DHP believes that most of the establishments offer preneed funeral services.

Localities Particularly Affected. The proposed regulations apply throughout the Commonwealth.

Projected Impact on Employment. No significant impact on employment is expected.

Effects on the Use and Value of Private Property. No significant effect on the use and value of private property is expected.

Small Businesses: Costs and Other Effects. Many of the funeral establishments are believed to be small businesses. As discussed above, the proposed less restrictive record keeping requirement should benefit some of them.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed regulations do not impose an adverse impact on small businesses.

Real Estate Development Costs. No effect on real estate development costs is expected.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, a determination of the public benefit, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The Board of Funeral Directors and Embalmers concurs with the analysis of the Department of Planning and Budget for amendments to 18VAC65-30, Regulations for Preneed Funeral Planning.

Summary:

The amendments are recommended as a result of a periodic review of 18VAC65-30, Regulations for Preneed Funeral Planning. Amendments allow a contract provider to maintain a chronological or an alphabetical listing of all preneed contracts.

18VAC65-30-70. Record reporting.

A. A contract provider shall keep a chronological or an alphabetical listing of all preneed contracts. The listing shall include the following:

1. Name of contract buyer;

2. Name of contract beneficiary;

3. Date of contract;

4. How contract was funded;

5. Whether up to 10% of funds are retained by the contract provider for contracts funded through trust; and

6. Whether funeral goods and supplies are stored for the contract buyer.

B. A contract provider who discontinues its business operations shall notify the board and each existing contract buyer in writing.

VA.R. Doc. No. R13-3666; Filed July 19, 2013, 11:38 a.m.