Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 15123-15125 [2014-05847]
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Federal Register / Vol. 79, No. 52 / Tuesday, March 18, 2014 / Notices
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than April 10, 2014.
A. Federal Reserve Bank of Atlanta
(Chapelle Davis, Assistant Vice
President) 1000 Peachtree Street NE.,
Atlanta, Georgia 30309:
1. TriSummit Bancorp, Inc., to
become a bank holding company by
acquiring 100 percent of the outstanding
shares of TriSummit Bank, both of
Kingsport, Tennessee.
B. Federal Reserve Bank of St. Louis
(Yvonne Sparks, Community
Development Officer) P.O. Box 442, St.
Louis, Missouri 63166–2034:
1. United Holding Company Inc.,
Springdale, Arkansas, to become a bank
holding company upon the conversion
of United Bank, Springdale, Arkansas,
from a federal savings bank to a statechartered bank.
Board of Governors of the Federal Reserve
System, March 12, 2014.
Michael J. Lewandowski,
Assistant Secretary of the Board.
[FR Doc. 2014–05853 Filed 3–17–14; 8:45 am]
BILLING CODE 6210–01–P
emcdonald on DSK67QTVN1PROD with NOTICES
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
AGENCY:
The FTC intends to ask the
Office of Management and Budget
SUMMARY:
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(‘‘OMB’’) to extend for an additional
three years the current Paperwork
Reduction Act (‘‘PRA’’) clearance for
information collection requirements
contained in its Funeral Industry
Practice Rule (‘‘Funeral Rule’’ or
‘‘Rule’’). That clearance expires on
September 30, 2014.
DATES: Comments must be filed by May
19, 2014.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Paperwork Comment:
FTC File No. P084401’’ on your
comment, and file your comment online
at https://ftcpublic.commentworks.com/
ftc/funeralrulepra by following the
instructions on the web-based form. If
you prefer to file your comment on
paper, mail or deliver your comment to
the following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex J), 600
Pennsylvania Avenue NW., Washington,
DC 20580.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the proposed information
requirements for the Funeral Rule
should be directed to Craig Tregillus,
Attorney, Division of Marketing
Practices, Bureau of Consumer
Protection, Federal Trade Commission,
ctregillus@ftc.gov, (202) 326–2970.
SUPPLEMENTARY INFORMATION: Under the
PRA, 44 U.S.C. 3501–3521, Federal
agencies must obtain approval from
OMB for each collection of information
they conduct or sponsor. ‘‘Collection of
information’’ means agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. 44 U.S.C.
3502(3), 5 CFR 1320.3(c). As required by
section 3506(c)(2)(A) of the PRA, the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing paperwork
clearance for the Funeral Rule, 16 CFR
part 453 (OMB Control Number 3084–
0025). The Funeral Rule ensures that
consumers who are purchasing funeral
goods and services have access to
accurate itemized price information so
they can purchase only the funeral
goods and services they want or need.
In particular, the Rule requires a funeral
provider to: (1) Give consumers a copy
they can keep of the funeral provider’s
General Price List (‘‘GPL’’) that itemizes
the goods and services they offer; (2)
show consumers their Casket Price List
(‘‘CPL’’) and their Outer Burial
Container Price List (‘‘OBCPL’’) at the
outset of any discussion of those items
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or their prices, and in any event before
showing consumers caskets or burial
containers;
(3) provide price information from
their price lists over the telephone; and
(4) give consumers a Statement of
Funeral Goods and Services Selected
(‘‘SFGSS’’) after determining the funeral
arrangements with the consumer (the
‘‘arrangements conference’’). The Rule
requires that funeral providers disclose
this information to consumers and
maintain records to facilitate
enforcement of the Rule.
The estimated burden associated with
the collection of information required
by the Rule is 19,680 hours for
recordkeeping, 102,021 hours for
disclosure, and 39,360 hours for
compliance training for a cumulative
total of 161,061 hours. This estimate is
based on the number of funeral
providers (approximately 19,680),1 the
number of funerals per year (an
estimated 2,513,171),2 and the time
needed to fulfill the information
collection tasks required by the Rule.
Recordkeeping: The Rule requires that
funeral providers retain for one year
copies of price lists and statements of
funeral goods and services selected by
consumers. Based on a maximum
average burden of one hour per provider
per year for this task, the total burden
for the 19,680 providers is 19,680 hours.
Disclosure: As noted above, the Rule
requires that funeral providers: (1)
Maintain current price lists for funeral
goods and services, (2) provide written
documentation of the funeral goods and
services selected by consumers making
funeral arrangements, and (3) provide
information about funeral prices in
response to telephone inquiries.
1. Maintaining accurate price lists
may require that funeral providers
revise their price lists occasionally
(most do so once a year, some less
frequently) to reflect price changes. Staff
conservatively estimates that this task
may require a maximum average burden
of two and one-half hours per provider
1 The estimated number of funeral providers is
from 2012 data provided on the National Funeral
Directors Association (‘‘NFDA’’) Web site (see
https://nfda.org/about-funeral-service-/trends-andstatistics.html).
2 The estimated number of funerals conducted
annually is derived from the National Center for
Health Statistics (‘‘NCHS’’), https://www.cdc.gov/
nchs/. According to NCHS, 2,513,171 deaths
occurred in the United States in 2011, the most
recent year for which final data is available. See
National Vital Statistics Reports, vol. 61, no. 06,
‘‘Deaths: Preliminary Data for 2011,’’ available at
https://www.cdc.gov/nchs/data/nvsr/nvsr61/
nvsr61_06.pdf. Staff believes this is a conservative
estimate because not all remains go to a funeral
provider covered by the Rule (e.g., remains sent
directly to a crematory that does not sell urns;
remains donated to a medical school, etc.).
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per year. Thus, the total burden for
19,680 providers is 49,200 hours.
2. Staff retains its prior estimate that
13% of funeral providers prepare
written documentation of funeral goods
and services selected by consumers
specifically due to the Rule’s mandate.
The original rulemaking record
indicated that 87% of funeral providers
provided written documentation of
funeral arrangements, even absent the
Rule’s requirements.3 According to the
rulemaking record, the 13% of funeral
providers who did not provide written
documentation prior to enactment of the
Rule are typically the smallest funeral
homes. The written documentation
requirement can be satisfied through the
use of a standard form, an example of
which the FTC has provided to all
funeral providers in its compliance
guide.4 Based on an estimate that these
smaller funeral homes arrange, on
average, approximately twenty funerals
per year and that it would take each of
them about three minutes to record
prices for each consumer on the
standard form, FTC staff estimates that
the total burden associated with the
written documentation requirement is
one hour per provider, for a total of
2,558 hours [(19,680 funeral providers ×
13%) × (20 statements per year x 3
minutes per statement)].
3. The Funeral Rule also requires
funeral providers to answer telephone
inquiries about the provider’s offerings
or prices. Information received in 2002
from the NFDA indicates that only
about 12% of funeral purchasers make
telephone inquiries, with each call
lasting an estimated ten minutes.5 Thus,
assuming that the average purchaser
who makes telephone inquiries places
one call per funeral to determine
prices,6 the estimated burden is 50,263
hours (2,513,171 funerals per year ×
12% × 10 minutes per inquiry). This
burden likely will decline over time as
3 In a 2002 public comment, the National Funeral
Directors Association asserted that nearly every
funeral home had been providing consumers with
some kind of final statement in writing even before
the Rule took effect. Nonetheless, in an abundance
of caution, staff continues to retain its prior
estimate based on the original rulemaking record.
4 The compliance guide is available at https://
business.ftc.gov/documents/bus05-complyingfuneral-rule.
5 No more recent information thus far has been
available. The Commission invites submission of
more recent data or studies on this subject.
6 Although consumers who pre-plan their own
arrangements may comparison shop and call more
than one funeral home for pricing and other
information, consumers making ‘‘at need’’
arrangements after a death are less likely to take the
time to seek pricing information from more than
one home. Many fail to seek any pricing
information by telephone. Staff therefore believes
that an average of one call per funeral is a
conservative assumption.
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consumers increasingly rely on the
Internet for funeral price information.
In sum, the burden due to the Rule’s
disclosure requirements totals 102,021
hours (49,200 + 2,558 + 50,263).
Training: In addition to the
recordkeeping and disclosure-related
tasks noted above, funeral homes may
also have training requirements
specifically attributable to the Rule.
Staff believes that annual training
burdens associated with the Rule should
be minimal because Rule compliance is
generally included in continuing
education requirements for state
licensing and voluntary certification
programs. Staff estimates that, industrywide, funeral homes would incur no
more than 39,360 hours related to
training specific to the Rule each year.
This estimate is consistent with staff’s
assumption for the current clearance
that an ‘‘average’’ funeral home consists
of approximately five employees (fulltime and part-time employment
combined), but with no more than four
of them having tasks specifically
associated with the Funeral Rule. Staff
retains its estimate that each of the four
employees per firm would each require
one-half hour, at most, per year, for such
training.7 Thus, total estimated time for
training is 39,360 hours (4 employees
per firm × 1⁄2 hour × 19,680 providers).
Labor costs: Labor costs are derived
by applying appropriate hourly cost
figures to the burden hours described
above. The hourly rates used below are
averages.
Clerical personnel, at an hourly rate of
$13.00,8 can perform the recordkeeping
tasks required under the Rule. Based on
the estimated hours burden of 19,680
hours, estimated labor cost for
recordkeeping is $255,840.
The two and one-half hours required
of each provider, on average, to update
price lists should consist of
approximately one and one-half hours
of managerial or professional time, at
7 Funeral homes, depending on size and/or other
factors, may be run by as few as one owner,
manager, or other funeral director to multiple
directors at various compensation levels.
Extrapolating from past NFDA survey input, staff
has theorized an ‘‘average’’ funeral home of
approximately four employees (a funeral services
manager, funeral director, embalmer, and a clerical
receptionist) having tasks and training associated
with Funeral Rule compliance. Compliance training
for other employees (e.g., drivers, maintenance
personnel, attendants) would not be necessary.
8 https://www.bls.gov/news.release/pdf/
ocwage.pdf: Bureau of Labor Statistics, Economic
News Release, March 29, 2013, Table 1, ‘‘National
employment and wage data from the Occupational
Employment Statistics survey by occupation, May
2012.’’ Clerical estimates are derived from the above
source data, rounded upward, for ‘‘receptionists
and information clerks.’’
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$38.42 per hour,9 and one hour of
clerical time, at $13.00 per hour, for a
total of $70.63 per provider [($38.42 per
hour × 1.5 hours) + ($13.00 per hour ×
1 hour)]. Thus, the estimated total labor
cost burden for maintaining price lists is
$1,389,998 ($70.63 per provider ×
19,680 providers).
The incremental cost to the 13% of
small funeral providers who would not
otherwise supply written
documentation of the goods and
services selected by the consumer, as
previously noted, is 2,558 hours.
Assuming managerial or professional
time for these tasks at approximately
$38.42 per hour, the associated labor
cost would be $98,278.
As previously noted, staff estimates
that 50,263 hours of managerial or
professional time is required annually to
respond to telephone inquiries about
prices.10 The associated labor cost at
$38.42 per hour is $1,931,104.
Based on past consultations with
funeral directors, FTC staff estimates
that funeral homes will require no more
than two hours of training per year of
licensed and non-licensed funeral home
staff to comply with the Funeral Rule,11
with four employees of varying types
each spending one-half hour on
training. Applying the assumptions
stated above,12 FTC staff further
assumes labor costing as follows for the
affected employees’ time for compliance
training:
(a) Funeral service manager ($38.42
per hour); (b) non-manager funeral
director ($25.19); (c) embalmer ($21.03
per hour); and (d) a clerical receptionist
or administrative staff member, at $13
per hour.13 This amounts to $960,778,
cumulatively, for all funeral homes
[($38.42 + $25.19 + $21.03 + $13) × 1⁄2
9 Bureau of Labor Statistics, ‘‘May 2012 National
Industry-Specific Occupational Employment and
Wage Estimates,’’ NAICS 812200—Death Care
Services: https://www.bls.gov/oes/current/
naics4_812200.htm# 11–0000.
10 Although some funeral providers may permit
staff who are not funeral directors to provide price
information by telephone, the great majority reserve
that task to a licensed funeral director.
11 Rule compliance is generally included in
continuing education requirements for licensing
and voluntary certification programs. Moreover, as
noted above, the FTC provides its compliance guide
to all funeral providers at no cost, and it is available
on the FTC Web site. See supra note 4.
Additionally, the NFDA provides online guidance
for compliance with the Rule: https://www.nfda.org/
onlinelearning-ftc.html.
12 See note 7 and accompanying text.
13 Bureau of Labor Statistics, ‘‘May 2012 National
Industry-Specific Occupational Employment and
Wage Estimates,’’ NAICS 812200—Death Care
Services: https://www.bls.gov/oes/current/
naics4_812200.htm# 11-0000 (mean hourly wages
for funeral service manager, funeral director,
embalmer). See supra note 8 and accompanying text
regarding the mean hourly wage for ‘‘receptionists
and information clerks.’’
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hour per employee × 19,680 funeral
homes].
The total labor cost of the three
disclosure requirements imposed by the
Funeral Rule is $3,419,380 ($1,389,998
+ $98,278 + $1,931,104). The total labor
cost for recordkeeping is $255,840. The
total labor cost for disclosure,
recordkeeping, and training is
$4,635,998 ($3,419,380 for disclosure +
$255,840 for recordkeeping + $960,778
for training).
Capital or other non-labor costs: The
Rule imposes minimal capital costs and
no current start-up costs. The Rule first
took effect in 1984 and the revised Rule
took effect in 1994, so funeral providers
should already have in place necessary
equipment to carry out tasks associated
with Rule compliance. Moreover, most
funeral homes already have access, for
other business purposes, to the ordinary
office equipment needed for
compliance, so the Rule likely imposes
minimal additional capital expense.
Compliance with the Rule, however,
does entail some expense to funeral
providers for printing and duplication
of required disclosures. Assuming, as
required by the Rule, that one copy of
the general price list is provided to
consumers for each funeral or cremation
conducted, at a cost of 25¢ per copy,14
this would amount to 2,513,171 copies
per year at a cumulative industry cost of
$628,293 (2,513,171 funerals per year 15
× 25¢ per price list). In addition, the
funeral providers that furnish
consumers with a statement of funeral
goods and services solely because of the
Rule’s mandate will incur additional
printing and copying costs. Assuming
that those 2,558 providers (19,680
funeral providers × 13%) use the
standard two-page form shown in the
compliance guide, at twenty-five cents
per copy, at an average of twenty
funerals per year, the added cost burden
would be $12,790 (2,558 providers × 20
funerals per year × 25¢). Thus,
estimated non-labor costs total
$641,083.
Request for Comment: Pursuant to
Section 3506(c)(2)(A) of the PRA, the
FTC invites comments on: (1) Whether
the disclosure requirements are
necessary, including whether the
information will be practically useful;
(2) the accuracy of our burden estimates,
14 Although copies of the casket price list and
outer burial container price list must be shown to
consumers, the Rule does not require that they be
given to consumers. Thus, the cost of printing a
single copy of these two disclosures to show
consumers is de minimis, and is not included in
this estimate of printing costs. Moreover, the
general price list need not exceed, and may be still
shorter than, the two-page model provided in the
compliance guide.
15 See note 2 and accompanying text.
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including whether the methodology and
assumptions used are valid; (3) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(4) ways to minimize the burden of
providing the required information to
consumers.
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before May 19, 2014. Write ‘‘Paperwork
Comment: FTC File No. P084401’’ on
your comment. Your comment—
including your name and your state—
will be placed on the public record of
this proceeding, including, to the extent
practicable, on the public Commission
Web site, at https://www.ftc.gov/os/
publiccomments.shtm. As a matter of
discretion, the Commission tries to
remove individuals’ home contact
information from comments before
placing them on the Commission Web
site.
Because your comment will be made
public, you are solely responsible for
making sure that your comment does
not include any sensitive personal
information, like anyone’s Social
Security number, date of birth, driver’s
license number or other state
identification number or foreign country
equivalent, passport number, financial
account number, or credit or debit card
number. You are also solely responsible
for making sure that your comment does
not include any sensitive health
information, like medical records or
other individually identifiable health
information. In addition, do not include
any ‘‘[t]rade secret or any commercial or
financial information which is . . .
privileged or confidential’’ as provided
in Section 6(f) of the FTC Act 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16CFR
4.10(a)(2). In particular, do not include
competitively sensitive information
such as costs, sales statistics,
inventories, formulas, patterns devices,
manufacturing processes, or customer
names.
If you want the Commission to give
your comment confidential treatment,
you must file it in paper form, with a
request for confidential treatment, and
you have to follow the procedure
explained in FTC Rule 4.9(c).16 Your
comment will be kept confidential only
if the FTC General Counsel grants your
request in accordance with the law and
the public interest.
Postal mail addressed to the
Commission is subject to delay due to
16 In
particular, the written request for
confidential treatment that accompanies the
comment must include the factual and legal basis
for the request, and must identify the specific
portions of the comment to be withheld from the
public record. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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15125
heightened security screening. As a
result, we encourage you to submit your
comments online. To make sure that the
Commission considers your online
comment, you must file it at https://
ftcpublic.commentworks.com/ftc/
funeralrulepra, by following the
instructions on the web-based form. If
this Notice appears at https://
www.regulations.gov/#!home, you also
may file a comment through that Web
site.
If you file your comment on paper,
write ‘‘Paperwork Comment: FTC File
No. P084401’’ on your comment and on
the envelope, and mail or deliver it to
the following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex J), 600
Pennsylvania Avenue NW., Washington,
DC 20580. If possible, submit your
paper comment to the Commission by
courier or overnight service.
The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before May 19, 2014. You can find more
information, including routine uses
permitted by the Privacy Act, in the
Commission’s privacy policy, at https://
www.ftc.gov/ftc/privacy.htm.
David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2014–05847 Filed 3–17–14; 8:45 am]
BILLING CODE 6750–01–P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities;
Submission for OMB Review;
Comment Request
AGENCY: Federal Trade Commission.
ACTION: Notice and request for comment.
In compliance with the
Paperwork Reduction Act (PRA) of
1995, the FTC is seeking public
comments on its request to OMB for a
three-year extension of the current PRA
clearance for the information collection
requirements contained in the Informal
Dispute Settlement Procedures Rule.
That clearance expires on March 31,
2014.
SUMMARY:
Comments must be received by
April 17, 2014.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
DATES:
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Agencies
[Federal Register Volume 79, Number 52 (Tuesday, March 18, 2014)]
[Notices]
[Pages 15123-15125]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-05847]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The FTC intends to ask the Office of Management and Budget
(``OMB'') to extend for an additional three years the current Paperwork
Reduction Act (``PRA'') clearance for information collection
requirements contained in its Funeral Industry Practice Rule (``Funeral
Rule'' or ``Rule''). That clearance expires on September 30, 2014.
DATES: Comments must be filed by May 19, 2014.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Paperwork Comment: FTC
File No. P084401'' on your comment, and file your comment online at
https://ftcpublic.commentworks.com/ftc/funeralrulepra by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex
J), 600 Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed information requirements for the Funeral Rule
should be directed to Craig Tregillus, Attorney, Division of Marketing
Practices, Bureau of Consumer Protection, Federal Trade Commission,
ctregillus@ftc.gov, (202) 326-2970.
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3521, Federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3), 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing paperwork clearance for
the Funeral Rule, 16 CFR part 453 (OMB Control Number 3084-0025). The
Funeral Rule ensures that consumers who are purchasing funeral goods
and services have access to accurate itemized price information so they
can purchase only the funeral goods and services they want or need. In
particular, the Rule requires a funeral provider to: (1) Give consumers
a copy they can keep of the funeral provider's General Price List
(``GPL'') that itemizes the goods and services they offer; (2) show
consumers their Casket Price List (``CPL'') and their Outer Burial
Container Price List (``OBCPL'') at the outset of any discussion of
those items or their prices, and in any event before showing consumers
caskets or burial containers;
(3) provide price information from their price lists over the
telephone; and (4) give consumers a Statement of Funeral Goods and
Services Selected (``SFGSS'') after determining the funeral
arrangements with the consumer (the ``arrangements conference''). The
Rule requires that funeral providers disclose this information to
consumers and maintain records to facilitate enforcement of the Rule.
The estimated burden associated with the collection of information
required by the Rule is 19,680 hours for recordkeeping, 102,021 hours
for disclosure, and 39,360 hours for compliance training for a
cumulative total of 161,061 hours. This estimate is based on the number
of funeral providers (approximately 19,680),\1\ the number of funerals
per year (an estimated 2,513,171),\2\ and the time needed to fulfill
the information collection tasks required by the Rule.
---------------------------------------------------------------------------
\1\ The estimated number of funeral providers is from 2012 data
provided on the National Funeral Directors Association (``NFDA'')
Web site (see https://nfda.org/about-funeral-service-/trends-and-statistics.html).
\2\ The estimated number of funerals conducted annually is
derived from the National Center for Health Statistics (``NCHS''),
https://www.cdc.gov/nchs/. According to NCHS, 2,513,171 deaths
occurred in the United States in 2011, the most recent year for
which final data is available. See National Vital Statistics
Reports, vol. 61, no. 06, ``Deaths: Preliminary Data for 2011,''
available at https://www.cdc.gov/nchs/data/nvsr/nvsr61/nvsr61_06.pdf. Staff believes this is a conservative estimate because not
all remains go to a funeral provider covered by the Rule (e.g.,
remains sent directly to a crematory that does not sell urns;
remains donated to a medical school, etc.).
---------------------------------------------------------------------------
Recordkeeping: The Rule requires that funeral providers retain for
one year copies of price lists and statements of funeral goods and
services selected by consumers. Based on a maximum average burden of
one hour per provider per year for this task, the total burden for the
19,680 providers is 19,680 hours.
Disclosure: As noted above, the Rule requires that funeral
providers: (1) Maintain current price lists for funeral goods and
services, (2) provide written documentation of the funeral goods and
services selected by consumers making funeral arrangements, and (3)
provide information about funeral prices in response to telephone
inquiries.
1. Maintaining accurate price lists may require that funeral
providers revise their price lists occasionally (most do so once a
year, some less frequently) to reflect price changes. Staff
conservatively estimates that this task may require a maximum average
burden of two and one-half hours per provider
[[Page 15124]]
per year. Thus, the total burden for 19,680 providers is 49,200 hours.
2. Staff retains its prior estimate that 13% of funeral providers
prepare written documentation of funeral goods and services selected by
consumers specifically due to the Rule's mandate. The original
rulemaking record indicated that 87% of funeral providers provided
written documentation of funeral arrangements, even absent the Rule's
requirements.\3\ According to the rulemaking record, the 13% of funeral
providers who did not provide written documentation prior to enactment
of the Rule are typically the smallest funeral homes. The written
documentation requirement can be satisfied through the use of a
standard form, an example of which the FTC has provided to all funeral
providers in its compliance guide.\4\ Based on an estimate that these
smaller funeral homes arrange, on average, approximately twenty
funerals per year and that it would take each of them about three
minutes to record prices for each consumer on the standard form, FTC
staff estimates that the total burden associated with the written
documentation requirement is one hour per provider, for a total of
2,558 hours [(19,680 funeral providers x 13%) x (20 statements per year
x 3 minutes per statement)].
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\3\ In a 2002 public comment, the National Funeral Directors
Association asserted that nearly every funeral home had been
providing consumers with some kind of final statement in writing
even before the Rule took effect. Nonetheless, in an abundance of
caution, staff continues to retain its prior estimate based on the
original rulemaking record.
\4\ The compliance guide is available at https://business.ftc.gov/documents/bus05-complying-funeral-rule.
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3. The Funeral Rule also requires funeral providers to answer
telephone inquiries about the provider's offerings or prices.
Information received in 2002 from the NFDA indicates that only about
12% of funeral purchasers make telephone inquiries, with each call
lasting an estimated ten minutes.\5\ Thus, assuming that the average
purchaser who makes telephone inquiries places one call per funeral to
determine prices,\6\ the estimated burden is 50,263 hours (2,513,171
funerals per year x 12% x 10 minutes per inquiry). This burden likely
will decline over time as consumers increasingly rely on the Internet
for funeral price information.
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\5\ No more recent information thus far has been available. The
Commission invites submission of more recent data or studies on this
subject.
\6\ Although consumers who pre-plan their own arrangements may
comparison shop and call more than one funeral home for pricing and
other information, consumers making ``at need'' arrangements after a
death are less likely to take the time to seek pricing information
from more than one home. Many fail to seek any pricing information
by telephone. Staff therefore believes that an average of one call
per funeral is a conservative assumption.
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In sum, the burden due to the Rule's disclosure requirements totals
102,021 hours (49,200 + 2,558 + 50,263).
Training: In addition to the recordkeeping and disclosure-related
tasks noted above, funeral homes may also have training requirements
specifically attributable to the Rule. Staff believes that annual
training burdens associated with the Rule should be minimal because
Rule compliance is generally included in continuing education
requirements for state licensing and voluntary certification programs.
Staff estimates that, industry-wide, funeral homes would incur no more
than 39,360 hours related to training specific to the Rule each year.
This estimate is consistent with staff's assumption for the current
clearance that an ``average'' funeral home consists of approximately
five employees (full-time and part-time employment combined), but with
no more than four of them having tasks specifically associated with the
Funeral Rule. Staff retains its estimate that each of the four
employees per firm would each require one-half hour, at most, per year,
for such training.\7\ Thus, total estimated time for training is 39,360
hours (4 employees per firm x \1/2\ hour x 19,680 providers).
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\7\ Funeral homes, depending on size and/or other factors, may
be run by as few as one owner, manager, or other funeral director to
multiple directors at various compensation levels. Extrapolating
from past NFDA survey input, staff has theorized an ``average''
funeral home of approximately four employees (a funeral services
manager, funeral director, embalmer, and a clerical receptionist)
having tasks and training associated with Funeral Rule compliance.
Compliance training for other employees (e.g., drivers, maintenance
personnel, attendants) would not be necessary.
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Labor costs: Labor costs are derived by applying appropriate hourly
cost figures to the burden hours described above. The hourly rates used
below are averages.
Clerical personnel, at an hourly rate of $13.00,\8\ can perform the
recordkeeping tasks required under the Rule. Based on the estimated
hours burden of 19,680 hours, estimated labor cost for recordkeeping is
$255,840.
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\8\ https://www.bls.gov/news.release/pdf/ocwage.pdf: Bureau of
Labor Statistics, Economic News Release, March 29, 2013, Table 1,
``National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2012.'' Clerical estimates are
derived from the above source data, rounded upward, for
``receptionists and information clerks.''
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The two and one-half hours required of each provider, on average,
to update price lists should consist of approximately one and one-half
hours of managerial or professional time, at $38.42 per hour,\9\ and
one hour of clerical time, at $13.00 per hour, for a total of $70.63
per provider [($38.42 per hour x 1.5 hours) + ($13.00 per hour x 1
hour)]. Thus, the estimated total labor cost burden for maintaining
price lists is $1,389,998 ($70.63 per provider x 19,680 providers).
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\9\ Bureau of Labor Statistics, ``May 2012 National Industry-
Specific Occupational Employment and Wage Estimates,'' NAICS
812200--Death Care Services: https://www.bls.gov/oes/current/naics4_812200.htm# 11-0000.
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The incremental cost to the 13% of small funeral providers who
would not otherwise supply written documentation of the goods and
services selected by the consumer, as previously noted, is 2,558 hours.
Assuming managerial or professional time for these tasks at
approximately $38.42 per hour, the associated labor cost would be
$98,278.
As previously noted, staff estimates that 50,263 hours of
managerial or professional time is required annually to respond to
telephone inquiries about prices.\10\ The associated labor cost at
$38.42 per hour is $1,931,104.
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\10\ Although some funeral providers may permit staff who are
not funeral directors to provide price information by telephone, the
great majority reserve that task to a licensed funeral director.
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Based on past consultations with funeral directors, FTC staff
estimates that funeral homes will require no more than two hours of
training per year of licensed and non-licensed funeral home staff to
comply with the Funeral Rule,\11\ with four employees of varying types
each spending one-half hour on training. Applying the assumptions
stated above,\12\ FTC staff further assumes labor costing as follows
for the affected employees' time for compliance training:
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\11\ Rule compliance is generally included in continuing
education requirements for licensing and voluntary certification
programs. Moreover, as noted above, the FTC provides its compliance
guide to all funeral providers at no cost, and it is available on
the FTC Web site. See supra note 4. Additionally, the NFDA provides
online guidance for compliance with the Rule: https://www.nfda.org/onlinelearning-ftc.html.
\12\ See note 7 and accompanying text.
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(a) Funeral service manager ($38.42 per hour); (b) non-manager
funeral director ($25.19); (c) embalmer ($21.03 per hour); and (d) a
clerical receptionist or administrative staff member, at $13 per
hour.\13\ This amounts to $960,778, cumulatively, for all funeral homes
[($38.42 + $25.19 + $21.03 + $13) x \1/2\
[[Page 15125]]
hour per employee x 19,680 funeral homes].
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\13\ Bureau of Labor Statistics, ``May 2012 National Industry-
Specific Occupational Employment and Wage Estimates,'' NAICS
812200--Death Care Services: https://www.bls.gov/oes/current/naics4_812200.htm# 11-0000 (mean hourly wages for funeral service manager,
funeral director, embalmer). See supra note 8 and accompanying text
regarding the mean hourly wage for ``receptionists and information
clerks.''
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The total labor cost of the three disclosure requirements imposed
by the Funeral Rule is $3,419,380 ($1,389,998 + $98,278 + $1,931,104).
The total labor cost for recordkeeping is $255,840. The total labor
cost for disclosure, recordkeeping, and training is $4,635,998
($3,419,380 for disclosure + $255,840 for recordkeeping + $960,778 for
training).
Capital or other non-labor costs: The Rule imposes minimal capital
costs and no current start-up costs. The Rule first took effect in 1984
and the revised Rule took effect in 1994, so funeral providers should
already have in place necessary equipment to carry out tasks associated
with Rule compliance. Moreover, most funeral homes already have access,
for other business purposes, to the ordinary office equipment needed
for compliance, so the Rule likely imposes minimal additional capital
expense.
Compliance with the Rule, however, does entail some expense to
funeral providers for printing and duplication of required disclosures.
Assuming, as required by the Rule, that one copy of the general price
list is provided to consumers for each funeral or cremation conducted,
at a cost of 25[cent] per copy,\14\ this would amount to 2,513,171
copies per year at a cumulative industry cost of $628,293 (2,513,171
funerals per year \15\ x 25[cent] per price list). In addition, the
funeral providers that furnish consumers with a statement of funeral
goods and services solely because of the Rule's mandate will incur
additional printing and copying costs. Assuming that those 2,558
providers (19,680 funeral providers x 13%) use the standard two-page
form shown in the compliance guide, at twenty-five cents per copy, at
an average of twenty funerals per year, the added cost burden would be
$12,790 (2,558 providers x 20 funerals per year x 25[cent]). Thus,
estimated non-labor costs total $641,083.
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\14\ Although copies of the casket price list and outer burial
container price list must be shown to consumers, the Rule does not
require that they be given to consumers. Thus, the cost of printing
a single copy of these two disclosures to show consumers is de
minimis, and is not included in this estimate of printing costs.
Moreover, the general price list need not exceed, and may be still
shorter than, the two-page model provided in the compliance guide.
\15\ See note 2 and accompanying text.
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Request for Comment: Pursuant to Section 3506(c)(2)(A) of the PRA,
the FTC invites comments on: (1) Whether the disclosure requirements
are necessary, including whether the information will be practically
useful; (2) the accuracy of our burden estimates, including whether the
methodology and assumptions used are valid; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) ways to minimize the burden of providing the required information
to consumers.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before May 19, 2014.
Write ``Paperwork Comment: FTC File No. P084401'' on your comment. Your
comment--including your name and your state--will be placed on the
public record of this proceeding, including, to the extent practicable,
on the public Commission Web site, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to
remove individuals' home contact information from comments before
placing them on the Commission Web site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, like anyone's Social Security number,
date of birth, driver's license number or other state identification
number or foreign country equivalent, passport number, financial
account number, or credit or debit card number. You are also solely
responsible for making sure that your comment does not include any
sensitive health information, like medical records or other
individually identifiable health information. In addition, do not
include any ``[t]rade secret or any commercial or financial information
which is . . . privileged or confidential'' as provided in Section 6(f)
of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16CFR
4.10(a)(2). In particular, do not include competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns devices, manufacturing processes, or customer names.
If you want the Commission to give your comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you have to follow the procedure explained
in FTC Rule 4.9(c).\16\ Your comment will be kept confidential only if
the FTC General Counsel grants your request in accordance with the law
and the public interest.
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\16\ In particular, the written request for confidential
treatment that accompanies the comment must include the factual and
legal basis for the request, and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule
4.9(c), 16 CFR 4.9(c).
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Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/funeralrulepra, by following the instructions on the web-based
form. If this Notice appears at https://www.regulations.gov/#!home, you
also may file a comment through that Web site.
If you file your comment on paper, write ``Paperwork Comment: FTC
File No. P084401'' on your comment and on the envelope, and mail or
deliver it to the following address: Federal Trade Commission, Office
of the Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW.,
Washington, DC 20580. If possible, submit your paper comment to the
Commission by courier or overnight service.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before May 19, 2014.
You can find more information, including routine uses permitted by the
Privacy Act, in the Commission's privacy policy, at https://www.ftc.gov/ftc/privacy.htm.
David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2014-05847 Filed 3-17-14; 8:45 am]
BILLING CODE 6750-01-P