Complete Story
07/23/2010OFDA Legal ReportBY T. SCOTT GILLIGANJuly 21, 2010 BOARD MEETING
1. Rush Bill. H.R. 3655, which is referred to as the Rush Bill, should be voted out by the House Committee this week and go to the full House for consideration. If passed, the Bill would compel the FTC to issue a new regulation that would impose upon all sellers of funeral goods or services the same type of legal obligations that funeral homes have under the Funeral Rule. The sponsor, Rep. Bobby Rush of Illinois, will probably allow some type of exemption for religious cemeteries that are operated by non-profit organizations. He will oppose any exemption for religious cemeteries that are operated by for-profit companies. NFDA expects the Bill to pass the House later this summer or in the early fall. Passage in the Senate is problematic however. Members should contact their representatives and urge them to vote for H.R. 3655.
2. Unclaimed Cremated Remains of Veterans. A new law in Ohio went into effect this month which requires a funeral home to contact the Department of Veterans Affairs (VA) prior to disposing of any unclaimed cremated remains. Under current law, Ohio funeral homes may dispose of cremated remains that are unclaimed 60 days after cremation. The cremated remains may be disposed of in a grave, crypt or niche. However, under the new law, the funeral home must first contact the VA with the names of the decedents whose cremated remains are being disposed of. The VA then has 60 days to determine if any of the decedents were veterans and, if so, whether the VA wants the cremated remains interred in a Veterans cemetery (at the expense of the VA). If within that 60 day period the VA notifies the funeral home that one or more of the decedents are veterans and the VA is willing to pay transportation and interment costs, then the funeral home is to follow the VA’s instructions for interment. If the VA does not contact the funeral home within that 60 day period, then the funeral home may proceed with the disposition. OFDA has an article explaining the new law on its website. The article also contains contact information for the VA as well as a sample letter a funeral home may use to notify the VA.
3. Estate Tax Bill. A new federal estate tax bill has been introduced into the Senate. Currently, there is no federal estate tax, but it is scheduled to come back in 2011 at the old 55% tax rate with a personal exemption of only $1 million. The new Bill would establish a permanent tax rate of 35% (which would be phased in over the next few years) and a personal exemption of $5 million. NFDA supports the new Bill.
4. OFDA Member Medicaid Guidebook. OFDA has developed a Guidebook for members on Medicaid regulations and preneed contracts. The Guidebook is available on the OFDA website HERE.
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