Report to Congressional Requesters

United States General Accounting Office 

GAO 

August 2003 DEATH CARE 

INDUSTRY 

Regulation Varies 

across States and by 

Industry Segment 

GAO-03-757 
GAO’s research shows that states vary in their approach to regulating the 

various segments of the death care industry. A majority of states have more 

than one state organization that is responsible for regulating all or most of 

the industry segments, whereas fewer states rely on one state organization 

for regulating the entire death care industry. 

States also vary in the mechanisms they have and use to enforce regulations 

covering the death care industry and protect consumers. These enforcement 

mechanisms include licensing or registering businesses and practitioners, 

inspecting facilities, and taking enforcement actions against those 

businesses or practitioners that violate state rules or regulations. 

The majority of states regulate funeral homes, crematories, cemeteries, and 

pre-need sales of funeral plans, although the specific licensing requirements 

vary across the states. Fewer states regulate third party sales of funeral 

goods. Further, even in those states that regulate each industry segment, not 

all businesses or practitioners may be subject to licensing or regulation. 

Most states also require inspections of funeral homes and crematories, but 

fewer states require inspections of cemeteries. In most of these states, the 

inspections are conducted annually. Information obtained from the six case 

study states show that these inspections tend to focus on such things as the 

proper posting of licenses, the availability of price lists, and the cleanliness 

and adequacy of equipment and the facilities. 

Since January 1, 2000, a majority of states have taken enforcement actions 

against funeral homes, funeral directors, or embalmers for violations of a 

variety of state rules or regulations. Fewer states, however, have taken such 

actions against the other industry segments. 

States’ Regulation of the Various Segments of the Death Care Industry 

Source: Results from GAO's Web based surveys.

0

10

20

30

40

50

Funeral

homes

Number of states responding to each of GAO's Web based surveys.

48 45 42 42 45

36

44

34

45

16

Total number of states

Number of responding states that stated they regulate the death care industry segment.

Pre-need sales

 of funeral plansa Crematories Cemeteriesb Third party salesof funeral goods

a

GAO’s survey focused on sales of pre-need funeral plans funded through trusts, not those funded 

through insurance. 

b

Not all cemeteries are regulated in these states, though. For example, cemeteries operated by 

municipalities or religious organizations are exempt from regulation in many states. 

Media reports of desecration of 

graves and human remains and 

other types of mismanagement at 

cemeteries and crematories have 

inspired a debate regarding 

whether the federal government 

should take on a greater role in 

regulating the death care industry, 

primarily funeral homes, 

crematories, cemeteries, pre-need 

sales of funeral plans, and third 

party sales of funeral goods. The 

federal government has a limited 

role in regulating the death care 

industry, as most regulatory 

responsibilities are handled at the 

state level. Because of this, federal 

policymakers have expressed an 

interest in understanding the range 

of practices that are used by the 

states to regulate the various 

segments of the death care 

industry. 

Based on surveys of state 

regulators covering the various 

segments of the death care 

industry; and visits to the states of 

California, Florida, Georgia, 

Hawaii, New York, and Texas; this 

report provides information on 

(1) the structures used by states for 

regulating the death care industry, 

and (2) the mechanisms used by 

states for enforcing their 

regulations covering the industry.

The report also provides 

information on the resources 

available to help consumers make 

informed choices regarding death 

care transactions. Details on the 

results of GAO’s surveys of the 

states can be found at: 

http://www.gao.gov/cgibin/getrpt?GAO-03-831SP. 

www.gao.gov/cgi-bin/getrpt?GAO-03-757.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Laurie Ekstrand 

at (202) 512-8777 or ekstrandl@gao.gov. 

Highlights of GAO-03-757, a report to 

congressional requesters 

August 2003

DEATH CARE INDUSTRY 

Regulation Varies across States and by 

Industry Segment 
Page i GAO-03-757 Death Care Industry 

Letter 1

Background 2

Results in Brief 5

Appendix I Objectives, Scope, and Methodology 16 

Objectives 16

Scope and Methodology 16

Appendix II Resources Available to Assist Consumers in Death 

Care Transactions 20 

Resources Available from FTC 20

Resources Available from Death Care Industry Sources 20

Resources Available from Consumer Associations 21

Consumer Protection Information Offered by States 21

Appendix III California’s Regulation of the Death Care Industry 26 

Regulatory Structure 26

Enforcement Mechanisms 26

Appendix IV Florida’s Regulation of the Death Care Industry 30 

Regulatory Structure 30

Enforcement Mechanisms 30

Appendix V Georgia’s Regulation of the Death Care Industry 34 

Regulatory Structure 34

Enforcement Mechanisms 34

Appendix VI Hawaii’s Regulation of the Death Care Industry 38 

Regulatory Structure 38

Enforcement Mechanisms 38

Appendix VII New York’s Regulation of the Death Care Industry 41 

Regulatory Structure 41

Enforcement Mechanisms 41

Contents 
Page ii GAO-03-757 Death Care Industry 

Appendix VIII Texas’s Regulation of the Death Care Industry 44 

Regulatory Structure 44

Enforcement Mechanisms 44

Appendix IX Comparison of Regulation of the Death Care 

Industry across the 6 Case Study States 48 

Appendix X Consolidation of the Death Care Industry and the 

Interstate Transit of Human Remains 58 

Consolidation of the Death Care Industry 58

Interstate Transit of Human Remains 59

Appendix XI GAO Contacts and Staff Acknowledgments 60 

GAO Contacts 60

Staff Acknowledgments 60

Glossary 61 

Tables 

Table 1: Summary of Surveyed States’ Licensing Requirements for 

Funeral Homes, Funeral Directors, and Embalmers 7

Table 2: Summary of Surveyed States’ Licensing Requirements for 

Crematories and Crematory Operators 9

Table 3: Summary of Surveyed States’ Licensing Requirements for 

Cemeteries and Cemetery Operators 10

Table 4: Summary of Surveyed States’ Regulation and Registration 

or Licensing Requirements Regarding Sales of Pre-need 

Funeral Plans 12

Table 5: Summary of Surveyed States’ Regulation and Licensing 

Requirements for Third Party Sales of Funeral Goods 13

Table 6: Listing of State Regulatory Agencies, Death Care Industry 

Associations, and Consumer Associations We Met with in 

the 6 States Visited 18

Table 7: Summary of Consumer Information and Protections 

Offered by the States 22

Table 8: Comparison of Requirements for Funeral Homes across 

the 6 Case Study States 48
Page iii GAO-03-757 Death Care Industry 

Table 9: Comparison of Requirements for Crematories across the 

6 Case Study States 50

Table 10: Comparison of Requirements for Cemeteries across the 

6 Case Study States 52

Table 11: Comparison of Requirements for Pre-Need Funeral Plan 

Sales Funded by Trusts in the 6 Case Study States 54

Table 12: Comparison of Requirements for Third Party Sales of 

Funeral Goods across the 6 Case Study States 57

Figures 

Figure 1: State and Federal Governments’ Roles in Regulating the 

Death Care Industry 4

Figure 2: Mechanisms States Use to Enforce Regulations Pertaining 

to Death Care Industry Segments 6

Abbreviations 

FTC Federal Trade Commission 

NFDA National Funeral Directors Association 

This is a work of the U.S. government and is not subject to copyright protection in the 

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permission from GAO. However, because this work may contain copyrighted images or 

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Page 1 GAO-03-757 Death Care Industry 

August 25, 2003 

The Honorable Christopher J. Dodd 

United States Senate 

The Honorable Mark A. Foley 

House of Representatives 

Media reports of desecration of graves and human remains and other types 

of mismanagement at cemeteries and crematories have inspired a debate 

regarding whether the federal government should take on a greater role in 

regulating the death care industry, that is, the array of providers of funeral 

and cemetery goods and services, such as funeral directors, embalmers, 

crematory operators, cemetery operators, sellers of pre-need funeral 

plans, and third party sellers of funeral goods.1

 In November 2002, bills 

were introduced in the 107th Congress that, if enacted, would have, among 

other things (1) provided federal funding to states that agree to comply 

with newly established federal standards and requirements for regulating 

various segments of the death care industry and (2) expanded the Federal 

Trade Commission’s (FTC) role in protecting consumers in arranging 

death care transactions.2

Though these bills did not pass, policymakers continue to express an 

interest in the range of practices states use to regulate the various 

segments of the death care industry. This report responds to your requests 

that we provide information on the regulation of the industry. Specifically, 

we are reporting on (1) the structures states use for regulating the death 

care industry and (2) the mechanisms states use for enforcing their 

regulations pertaining to the death care industry. We are also providing 

information on resources available to help consumers make informed 

choices regarding death care transactions (see app. II), as well as 

consolidation of the death care industry and the interstate nature of death 

care transactions (see app. X). 

 1

Third party sellers of funeral goods refer primarily to retailers that are not affiliated with a 

funeral home or cemetery that sell caskets and other funeral-related products. 

2

Federal Death Care Inspection and Disclosure Act, S. 3168 and H.R. 5743, 107th Cong. 

(2002). 

United States General Accounting Office 

Washington, DC 20548 
Page 2 GAO-03-757 Death Care Industry 

We gathered information to address the two primary objectives using a 

two-pronged approach. First, we developed five Web based surveys to 

gather information from state regulatory officials covering each of the five 

death care industry segments.3

 Second, we visited and collected more 

specific information from state regulatory officials, death care industry 

officials, and consumer association representatives in six states—

California, Florida, Georgia, Hawaii, New York, and Texas. California, 

Florida, Georgia, and Hawaii were selected because of media reports of 

desecration of graves and human remains and other types of 

mismanagement at cemeteries and crematories in these states. New York 

and Texas were selected because they represent states that have 

comparatively large populations. We will refer to these six states 

throughout the report as the “case study states.” 

We conducted our review between July 2002 and July 2003 in accordance 

with generally accepted government auditing standards. Appendix I 

describes our objectives, scope, and methodology in greater detail. 

While accurate data are not readily available on how much consumers 

spend each year on death care transactions, we do know that it is 

substantial. According to the National Center for Health Statistics, there 

were about 2.4 million deaths registered in the United States in 2000—the 

most recent year for which complete data are available. To put that in 

perspective, the North American Funeral Directors Association reports 

that of the 2.4 million deaths in 2000, approximately 75 percent resulted in 

earth burial or entombment and 25 percent resulted in cremation. The 

Association also reports that based on a 2001 survey, the average adult 

funeral costs $5,180. Multiplying this figure by 1,800,000 (75 percent of the 

2.4 million deaths) provides an estimate of over $9.3 billion spent each 

year on funeral costs alone in the United States. Costs for the estimated 

25 percent of deaths that resulted in cremations would be added to that 

cost figure, but data on cremation costs were not available. 

The death care industry has been undergoing a transformation. According 

to AARP (formerly known as the American Association of Retired 

Persons), the death care industry has historically been fragmented, with 

limited overlap between the funeral and cemetery segments of the 

 3

We did not independently verify the accuracy or completeness of the responses to the Web 

based surveys. 

Background 
Page 3 GAO-03-757 Death Care Industry 

industry.4 Today, such distinctions are diminishing as the death care 

industry is consolidating. Increasingly, funeral directors provide goods and 

services once exclusive to cemetery operators and similarly, cemetery 

operators sell items that were once exclusive to the funeral industry. In 

addition, according to officials within the death care industry, there was 

increased corporate ownership of local funeral homes and cemeteries in 

the 1990s, but that trend has reversed in recent years. 

AARP attributes much of the change in the death care industry in recent 

years to the growth of pre-need sales of funeral and cemetery goods. In the 

past, when nearly all funerals and burials were arranged upon death and 

survivors went to their local funeral homes and cemeteries at the time of 

need, comparatively little competition existed within the industry. Today, 

a growing number of consumers who purchase funeral and cemetery 

goods and services have shopped around in advance. 

Figure 1 shows that the federal government has a limited role in regulating 

the death care industry and that most regulatory responsibilities regarding 

the death care industry are handled at the state level. According to FTC’s 

Funeral Rule, any business that sells or offers to sell both funeral goods 

and funeral services to the public must comply with the Funeral Rule. The 

Funeral Rule specifies, among other things, that consumers are entitled to 

price information about funeral goods and services before they purchase 

them. Thus, the Funeral Rule requires funeral homes and sellers of both 

pre-need and at-need funeral plans to provide the consumer, at the 

beginning of the discussion about arrangements for funeral goods and 

services, a general price list that can be used for comparative shopping, if 

the consumer so wishes. Since the Funeral Rule only applies to businesses 

providing both funeral goods and services, it generally does not apply to 

crematories, cemeteries, or third party sales of funeral goods since these 

businesses usually provide only merchandise or only services. Aside from 

FTC’s Funeral Rule, there is no regulation that specifically addresses the 

marketing practices of the death care industry at the federal level. 

 4

A typical funeral includes a combination of goods (casket and outer burial container) and 

services (care of the body, transportation, and use of facilities). A burial typically includes 

both goods (burial plot and marker) and services (opening and closing of the grave and 

perpetual care). 
Page 4 GAO-03-757 Death Care Industry 

Figure 1: State and Federal Governments’ Roles in Regulating the Death Care 

Industry 

a

Since the Funeral Rule only applies to businesses providing both funeral goods and services, it 

generally does not apply to crematories, cemeteries, or third party sales of funeral goods. 

Consumer associations, death care industry associations, and state 

regulators have divergent views on whether the federal government should 

take on a greater role in regulating the death care industry. While 

consumer associations generally favor an enhanced federal role, 

representatives of the death care industry generally do not. Support among 

state regulators for an enhanced federal role is mixed. Complaint data 

shed little light on this debate. In an earlier report,5

 we found that 

comprehensive information on consumer complaints that would indicate 

the overall nature and extent of problems that consumers experience 

involving the death care industry was not available. While we were able to 

obtain some complaint data involving the death care industry from two 

organizations, the data were not comprehensive because (1) complaint 

data are not systematically gathered within states or across the states, 

(2) there is no central repository for death care industry complaint data, 

(3) not all consumers who experience problems in their death care 

transactions file complaints, and (4) some consumers may file the same 

complaint with more than one organization. Nonetheless, the seriousness 

of the issues involved have prompted some policymakers to consider 

whether the federal government should take on a greater role in regulating 

the death care industry. 

 5

U.S. General Accounting Office, Funeral-Related Industries: Complaints and State Laws 

Vary, and FTC Could Better Manage the Funeral Rule, GAO/GGD-99-156 (Washington, 

D.C.: September 1999). 

Source: GAO.

Funeral

homes

Funeral

homesa

Crematories Cemeteries

Federal

regulation

State

regulation

Death care industry segments

Third party

sales of

funeral goods

Pre-need

sales of

funeral plans 

Pre-need

sales of

funeral plansa
Page 5 GAO-03-757 Death Care Industry 

States vary in their approach to regulating the various segments of the 

death care industry. Twenty-nine states have more than 1 state 

organization—such as a state agency, bureau, or board—that are 

responsible for regulating all or most of the five death care industry 

segments, whereas 21 states rely on 1 state organization for regulating the 

death care industry. For example, in Florida, a board within the 

Department of Business and Professional Regulation and a board within 

the Department of Financial Services are responsible for regulating 

segments of the death care industry. In contrast, California has a bureau 

within the Department of Consumer Affairs that regulates the death care 

industry. Further, in some states, the state regulatory organization focuses 

solely on the death care industry, whereas in other states, organizations 

also have regulatory responsibilities for other industries. For example, the 

Texas Funeral Service Commission focuses exclusively on regulating 

death care-related businesses, whereas Hawaii’s Department of Health’s 

Sanitation Branch regulates some funeral homes but also regulates food 

preparation industries and other businesses. 

States also vary in the mechanisms they have and use to enforce 

regulations covering the various segments of the death care industry. As 

can be seen in figure 2, the enforcement mechanisms used by states to 

regulate the death care industry and protect consumers include licensing 

or registering businesses and practitioners, inspecting facilities, and taking 

enforcement actions against those individuals or businesses that violate 

state rules or regulations. The sections that follow present a summary of 

states’ enforcement mechanisms, segregated by each of the 5 death care 

industry segments. (More detailed information on the 6 case study states’ 

regulation of the separate death care industry segments can be found in 

appendixes III through IX.) 

Results in Brief 

Structure for Regulating 

the Death Care Industry 

Varies across States 

Mechanisms for Enforcing 

Regulations Covering 

the Death Care Industry 

Also Vary across States 
Page 6 GAO-03-757 Death Care Industry 

Figure 2: Mechanisms States Use to Enforce Regulations Pertaining to Death Care 

Industry Segments 

Results of our surveys of state regulators covering the various segments of 

the death care industry show that funeral homes are regulated and 

licensed more than any other segment of the death care industry. 

Table 1 shows that of the 48 states that responded to our survey regarding 

funeral homes, 45 reported that they regulate funeral homes. Of the 

43 states that responded to this issue, all but 1 state regulate all funeral 

homes.6

 The majority of states that regulate funeral homes also require 

funeral homes, funeral directors, and embalmers to be licensed, although 

specific licensing requirements vary. Our work in the 6 case study states 

reflect the same variation in licensing requirements for funeral homes, 

funeral directors, and embalmers found in our survey. For example, 

California, Florida, Georgia, and Texas require all funeral homes, funeral 

directors, and embalmers to hold a license to operate in the state. By 

contrast, Hawaii requires a license only for embalmers and for those 

funeral homes that perform embalmings, but not for funeral directors or 

for funeral homes that do not embalm; and in New York, funeral directors 

are required to be licensed, but there is no separate licensing requirement 

for embalmers or funeral homes.7

 

 6

In Nebraska, all funeral homes are licensed and regulated except those on designated 

tribal reservations. 

7

New York State used to license embalmers separately from funeral directors, but this 

practice ceased in the 1960s. 

Funeral Homes, Funeral 

Directors, and Embalmers 
Page 7 GAO-03-757 Death Care Industry 

Table 1: Summary of Surveyed States’ Licensing Requirements for Funeral Homes, 

Funeral Directors, and Embalmers 

Regulates 

funeral homes

Requires all 

funeral homes 

to be licensed

Requires all 

funeral directors 

to be licensed 

Requires all 

embalmers to be 

licensed

Total 

45 of 48 

responders

42 of 43 

responders

42 of 43 

responders

41 of 42 

responders

Source: Information obtained from answers to GAO’s Web based survey of all 50 states. 

While most of the states that require inspections of funeral homes conduct 

those inspections at least annually, the number of inspectors who conduct 

the inspections varies across the states. Results from our survey of 

funeral-related issues show that 37 of the 43 responding states require 

funeral homes to be inspected, with most of these states requiring funeral 

homes to be inspected at least once a year. Based on the information 

obtained from our case study states, these inspections tend to focus on 

such things as whether (1) equipment and supplies are adequate, 

(2) embalming rooms are clean and properly ventilated, (3) licenses are 

current and conspicuously displayed, and (4) price lists are readily 

available. Among the responding states, the number of inspectors that 

conduct inspections of funeral homes ranges from a low of 1 to a high of 

17, with most reporting they have 1 or 2 inspectors. Further, the percent of 

time inspectors devote to inspecting funeral homes varies, with inspectors 

in half of the responding states devoting 70 percent or less of their time to 

such inspections, while inspectors in the remaining half of the states spend 

80 percent or more of their time inspecting funeral homes. The variation in 

requirements for funeral home inspections among the 6 case study states 

was similar to the variation reflected in our survey. For example, Florida 

and Georgia require all funeral homes to be inspected at least once a year, 

whereas New York has no specific requirement for funeral homes to be 

inspected, but inspections are conducted on a “recurrent basis.” 

Since January 1, 2000, a majority of the states have taken enforcement 

actions against funeral homes, funeral directors, or embalmers for 

violations of state rules or regulations. Of the 42 states that responded to 

this survey issue, 40 had taken enforcement actions, ranging from issuing 

notices of noncompliance, to revoking licenses, and prosecuting violators. 

It must be noted that a low number of enforcement actions taken by a 

state may not be indicative of lax enforcement efforts, but rather could be 

reflective of a general lack of problems involving the death care industry 

in that state. 
Page 8 GAO-03-757 Death Care Industry 

Consistent with results obtained through our funeral home survey, 5 of the 

6 case study states have taken a range of enforcement actions against 

funeral homes, funeral directors, or embalmers for violations of state rules 

or regulations since January 1, 2000. For example, Florida has taken a 

number of actions, including (1) issuing a notice of noncompliance to a 

funeral director for failing to properly display casket prices and (2) placing 

a funeral director on probation, levying a fine against him, and making him 

pass a state examination on state laws and rules after he did not properly 

maintain a body so that it would be suitable for viewing. 

See appendixes III through IX for more detailed information on the 6 case 

study states’ regulation of funeral homes, funeral directors, and 

embalmers. To view the survey covering funeral homes, funeral directors, 

and embalmers and the responding states’ answers to the survey 

questions, go to http://www.gao.gov/cgi-bin/getrpt?GAO-03-831SP. 

A majority of states regulate crematories and require crematories to be 

licensed to operate in their state, but fewer require crematory operators to 

be licensed. Specifically, as shown in table 2, of the 45 states responding to 

our survey covering crematories and crematory operators, 36 regulate 

crematories, and 29 regulate all crematories in the state.8

 Further, of the 

35 states that responded to this issue, 27 require all crematories to be 

licensed to operate within their state, whereas only 16 of these states 

require all crematory operators to be licensed. Our work in the 6 case 

study states exhibits the same variation in licensing requirements and 

practices for crematories and crematory operators. For example, 

California requires all crematories and crematory operators to be licensed 

to operate in the state. In contrast, Hawaii and New York do not license 

either crematories or crematory operators. 

 8

Crematories at state medical schools, not-for-profit crematories, and crematories run by 

religious groups or municipalities are among the crematories that are exempt from some 

states’ regulations. 

Crematories and Crematory 

Operators 
Page 9 GAO-03-757 Death Care Industry 

Table 2: Summary of Surveyed States’ Licensing Requirements for Crematories and 

Crematory Operators 

Regulates 

crematories

Requires all crematories 

to be licensed 

Requires all crematory 

operators to be licensed 

Total 36 of 45 responders 27 of 35 responders 16 of 35 responders

Source: Information obtained from answers to GAO’s Web based survey of all 50 states. 

Similar to funeral homes, most states require inspections of crematories at 

least annually. Of the 36 states that responded to this issue in our survey, 

33 require crematories to be inspected, and most of these states require 

crematories to be inspected at least once a year. The number of inspectors 

who conduct those inspections and the percent of their time devoted to 

inspections of crematories, however, vary from state to state. Among the 

responding states, a majority reported they have 1 or 2 inspectors who 

inspect crematories and, in most of the responding states, these inspectors 

devote 10 percent or less of their time to inspections of crematories. The 

requirements for crematory inspections across the 6 case study states also 

vary. For example, California, Florida, Georgia,9

 and New York require 

inspections of crematories at least once a year. In contrast, neither Hawaii 

nor Texas10 requires inspections of crematories. 

Since January 1, 2000, only a minority of the states that regulate 

crematories have taken enforcement actions against crematories or 

crematory operators for violations of state rules or regulations. Of the 

32 states that responded to this survey question, 13 have taken a variety of 

enforcement actions for violations, ranging from issuing notices of 

noncompliance, to revoking licenses and prosecution. Among the 6 case 

study states, California, Florida, and New York have taken a range of 

 9

In May 2002, subsequent to the discovery of decomposed bodies at the Tri-State Crematory 

in Noble, Georgia, the state amended the definition of the term “crematory” to cover more 

facilities, including the Tri-State Crematory. Prior to this amendment, crematory was 

defined as “any place that is owned by a funeral director or funeral establishment where 

cremation is performed, and which is open to the public other than a hospital, clinic, 

laboratory, or other facility authorized by the Department of Human Resources for such 

purposes.” Because Tri-State Crematory was not owned by a funeral director or funeral 

establishment, it was not covered by the former definition of crematory, and thus not 

subject to regulation. 

10Under a new law, effective September 1, 2003, all licensed crematories will be required to 

be inspected at least once every 2 years by staff of the Texas Funeral Service Commission. 

If the Commission finds a violation, the crematory is required to be inspected annually until 

the Commission determines the crematory is free of violations. 
Page 10 GAO-03-757 Death Care Industry 

enforcement actions for violations of state rules or regulations, whereas 

Georgia, Hawaii, and Texas have not. For example, California placed a 

facility on probation for failing to properly inter or dispose of cremated 

remains. 

See appendixes III through IX for more detailed information on the 6 case 

study states’ regulation of crematories and crematory operators. To view 

the survey covering crematories and crematory operators and the 

responding states’ answers to the survey questions, go to 

http://www.gao.gov/cgi-bin/getrpt?GAO-03-831SP. 

Most states regulate cemeteries, although not all cemeteries in those states 

are subject to regulation.11 Specifically, as shown in table 3, of the 

44 states that responded to our survey covering cemeteries and cemetery 

operators, 34 regulate cemeteries, and 27 of these states noted that not all 

cemeteries are subject to regulation. About half of the states that regulate 

cemeteries require at least some cemetery operators to be licensed, 

although the licensing requirements vary across the states. Of the 33 states 

responding to this issue, 23 said that at least some cemeteries must be 

licensed, whereas only 16 of these states require at least some cemetery 

operators to be licensed. Our work in the 6 case study states shows similar 

results. 

Table 3: Summary of Surveyed States’ Licensing Requirements for Cemeteries and 

Cemetery Operators 

Regulates at least 

some cemeteries

Requires at least 

some cemeteries to 

be licensed 

Requires at least some 

cemetery operators to be 

licensed 

Total 34 of 44 responders 23 of 33 responders 16 of 33 responders

Source: Information obtained from answers to GAO’s Web based survey of all 50 states. 

Cemetery inspection requirements also vary across the states. Of the 

33 states that responded to this issue in our survey, 14 require cemeteries 

to be inspected and, among these states, 6 require inspections of 

cemeteries at least every 2 years. The number of inspectors who inspect 

cemeteries and the percent of their time devoted to these inspections also 

vary across the states. Among the responding states, a majority reported 

they have 3 or less inspectors who inspect cemeteries and, in most of the 

 11For example, cemeteries that are operated by municipalities or by religious organizations 

are exempt from regulation in many states. 

Cemeteries and Cemetery 

Operators 
Page 11 GAO-03-757 Death Care Industry 

responding states, these inspectors devote 50 percent or less of their time 

to inspections of cemeteries. The requirements for cemetery inspections 

across the 6 case study states also vary, with 3 states requiring inspections 

of cemeteries, while the 3 remaining states do not. 

A majority of the responding states have taken actions against cemeteries 

or cemetery operators for violations of state rules or regulations since 

January 1, 2000. Specifically, of the 33 states responding to this issue, 

23 noted they have taken enforcement actions ranging from issuing notices 

of noncompliance, to revoking licenses, and prosecuting violators. 

However, among the 6 case study states, each has taken enforcement 

actions against cemeteries or cemetery operators since January 1, 2000, 

for violations of state rules or regulations. For example, Hawaii suspended 

a cemetery authority license because the licensee did not file required 

audited financial statements, and New York issued a notice of 

noncompliance to a cemetery because its record keeping was not 

sufficient to identify who is buried in each grave. 

More detailed information on the 6 case study states’ regulation of 

cemeteries and cemetery operators can be found in appendixes III through 

IX. To view the survey covering cemeteries and cemetery operators and 

the responding states’ answers to the survey questions, go to 

http://www.gao.gov/cgi-bin/getrpt?GAO-03-831SP. 

Most states regulate pre-need sales of funeral plans.12 Specifically, 

table 4 shows that all 42 of the states that responded to this issue in our 

survey stated that they regulate sales of pre-need funeral plans, with 34 of 

these states regulating all sales of pre-need funeral plans.13 A majority of 

the states that responded to this survey also require at least some sellers 

of pre-need funeral plans—to include the companies or the actual sales 

agents—to be licensed by the state. Of the 38 states that responded to this 

issue, 35 require at least some sellers of pre-need funeral plans to be 

licensed to operate within their state, and 31 of the 38 states responding 

require at least some sellers to register with the state. Similarly, regulation 

of pre-need funeral plan sales in the 6 case study states also varies. For 

example, Florida requires companies to obtain a “certificate of authority” 

 12For purposes of our survey, we focused on regulation of pre-need funeral plans that are 

funded by trusts. 

13Among the pre-need funeral plan sales that are exempt from regulation across the other 

states include those that are funded by insurance. 

Pre-need Sales of Funeral 

Plans 
Page 12 GAO-03-757 Death Care Industry 

in order to sell pre-need funeral plans in the state. In contrast, New York 

only permits licensed funeral directors to sell pre-need funeral plans, 

which must be funded through trusts. 

Table 4: Summary of Surveyed States’ Regulation and Registration or Licensing 

Requirements Regarding Sales of Pre-need Funeral Plans 

Regulates 

pre-need 

funeral plan 

sales 

Regulates all 

pre-need 

funeral plan 

sales 

Requires at least 

some sellers of 

pre-need funeral plans 

to be licensed by the 

state 

Requires at least 

some sellers of 

pre-need funeral 

plans to register with 

the state 

Total 

42 of 42 

responders

34 of 41 

responders

35 of 38 responders 31 of 38 responders

Source: Information obtained from answers to GAO’s Web based survey of all 50 states. 

A majority of states require a portion of the proceeds from sales of preneed funeral plans to be placed in trust, but trusting requirements vary 

across the states. Specifically, results from our survey show that of the 

40 states that responded to this issue, 35 require a percentage of pre-need 

sales revenues to be placed in trust. The trusting requirements vary, 

though, depending on the category of funeral or cemetery goods or 

services purchased. Further, the refunds that purchasers of pre-need 

funeral plans are entitled to if they cancel their pre-need contracts also 

vary across the states. Some states allow consumers who cancel their preneed sales contracts to recoup the amount of principal they paid plus any 

interest that has accrued, while in other states, consumers are entitled 

only to receive a majority of the principal they have paid. Regulation of 

pre-need funeral plan sales in the 6 case study states was consistent with 

the results obtained through our survey. Further, while each of the 6 states 

allow consumers to recoup the majority of the principal they paid when 

they cancel pre-need funeral plans prior to need, requirements vary on the 

amount, if any, of accrued interest to which they are due. 

A majority of the states that regulate pre-need funeral plan sales have 

taken enforcement actions against sellers of such plans for violations of 

state rules or regulations since January 1, 2000. Specifically, of the 

36 states responding to this issue in our survey, 25 stated that they have 

taken such actions. Among the 6 case study states, all have taken at least 

one enforcement action against sellers of pre-need funeral plans for 

violations of state rules or regulations since January 1, 2000. For example, 

California revoked a license of a seller of pre-need funeral plans after the 

state determined the seller, among other things (1) lied about his criminal 

history, (2) fraudulently altered test results to obtain his license, and 
Page 13 GAO-03-757 Death Care Industry 

(3) failed to place pre-need sales funds in trust. Texas issued a notice of 

noncompliance to a cemetery for failure to properly make timely deposits 

to the trust fund as required. 

More detailed information on the 6 case study states’ regulation of preneed funeral plan sales can be found in appendixes III through IX. To view 

the survey covering pre-need sales of funeral plans and the responding 

states’ answers to the survey questions, go to http://www.gao.gov/cgibin/getrpt?GAO-03-831SP. 

Third party sales of funeral goods are regulated less than any other 

segment of the death care industry. As can be seen in table 5, of the 

45 states that responded to our survey covering third party sales of funeral 

goods, only 16 regulate third party sales of funeral goods, and only 10 of 

those states responded that they regulate all third party sales of funeral 

goods.14 Even fewer states require third party sellers of funeral goods to be 

licensed by or registered with the state. Only 9 of the 13 responding states 

require at least some third party sellers to be licensed, and 9 of the 

14 responding states require third party sellers of funeral goods to register 

with the state. Regulation of third party sales in the 6 case study states 

also varies. For example, California, Hawaii, New York, and Texas do not 

regulate or license third party sales of funeral goods. In contrast, Florida 

only regulates monument dealers. 

Table 5: Summary of Surveyed States’ Regulation and Licensing Requirements for 

Third Party Sales of Funeral Goods 

Regulates third 

party sales of 

funeral goods 

Regulates all 

third party 

sales of 

funeral goods

Requires at least 

some third party 

sellers of funeral 

goods to be 

licensed by the 

state

Requires third 

party sellers of 

funeral goods to 

register with the 

state 

Total 

16 of 45 

responders

10 of 15 

responders

9 of 13

responders

9 of 14 

responders

Source: Information obtained from answers to GAO’s Web based survey of all 50 states. 

 14Among the types of third party sales of funeral goods that are exempt from regulation 

across the states that do not regulate all third party sales are Internet sales, sales to 

consumers who need the goods immediately (referred to as “at-need”), and sales of funeral 

goods when the consumer takes possession of the merchandise within a fixed period of 

time. 

Third Party Sales of Funeral 

Goods 
Page 14 GAO-03-757 Death Care Industry 

Few states responded that they have taken enforcement actions against 

third party sellers of funeral goods for violations of state rules or 

regulations since January 1, 2000. Of the 16 responding states that regulate 

third party sales of funeral goods, 14 addressed this issue and, of these, 

6 stated they have taken actions against third party sellers. Among the 

6 case study states, only Georgia has taken any enforcement actions 

against third party sellers of funeral goods since January 1, 2000, and this 

action was to deny the registration of a third party seller. 

More detailed information on the 6 case study states’ regulation of third 

party sellers of funeral goods can be found in appendixes III through IX. 

To view our survey covering third party sales of funeral goods and the 

responding states’ answers to the survey questions, go to 

http://www.gao.gov/cgi-bin/getrpt?GAO-03-831SP. 

As agreed with your office, unless you publicly announce the contents of 

this report earlier, we plan no further distribution until 30 days from the 

report date. At that time, we will send copies of this report to the 

Chairman of the Federal Trade Commission. We will also make copies 

available to others on request. In addition, the report will be available at 

no charge on GAO’s Web site at http://www.gao.gov. 
Page 15 GAO-03-757 Death Care Industry 

If you or your staffs have any questions regarding this report, please 

contact John Mortin or me at (202) 512-8777. Key contributors to this 

report are listed in appendix XI. 

Laurie E. Ekstrand 

Director, Homeland Security & Justice 
Appendix I: Objectives, Scope, and 

Methodology 

Page 16 GAO-03-757 Death Care Industry 

Our overall objectives were to report on (1) states’ roles in and the 

structures used by states for regulating the death care industry and (2) the 

mechanisms used by states for enforcing their regulations pertaining to the 

death care industry. 

To obtain information on the various ways states regulate the death care 

industry, we used a two-pronged approach. First, we determined the 

proper points of contacts within each state for regulating the various 

segments of the death care industry and designed and implemented five 

Web based surveys to gather information on the regulatory structure and 

enforcement mechanisms that are in place in the states to regulate each of 

the five segments of the death care industry we reviewed—funeral homes, 

crematories, cemeteries, pre-need sales of funeral plans,1

 and third party 

sales of funeral goods. In some states, one person was designated as their 

state’s point of contact for responding to all five surveys. In other states, 

there were multiple points of contact for responding to the five separate 

surveys. 

To ensure we obtained the highest response rate possible, we made the 

Web based surveys available to the designated state contacts from 

December 2, 2002, through March 7, 2003, and sent reminders via E-mails 

and telephone calls to the state contacts. Over this 3-month period, we 

obtained responses from 48 states covering regulation of funeral homes, 

45 states covering regulation of crematories, 44 states covering regulation 

of cemeteries, 42 states covering regulation of sales of pre-need funeral 

plans, and 45 states covering regulation of third party sales of funeral 

goods. While the overall response rate was relatively high, not all states 

that completed the surveys provided responses to all the appropriate 

questions. Further, we did not independently verify the accuracy or 

completeness of the responses provided from the Web based surveys. 

The second part of our approach to gathering data on state regulation of 

the death care industry was to visit the 6 states of California, Florida, 

Georgia, Hawaii, New York, and Texas. We conducted work in California, 

Florida, Georgia, and Hawaii because of media reports of desecration of 

graves and human remains and other types of mismanagement at 

cemeteries and crematories in those states. New York and Texas were 

 1

For purposes of our survey, we focused on regulation of pre-need funeral plans that are 

funded by trusts not those funded through insurance. 

Appendix I: Objectives, Scope, and 

Methodology 

Objectives 

Scope and 

Methodology 
Appendix I: Objectives, Scope, and 

Methodology 

Page 17 GAO-03-757 Death Care Industry 

selected because they represent states that have comparatively large 

populations.2

 Within these 6 states, we conducted interviews with the 

relevant regulatory officials to collect more in-depth information and 

documentation on (1) relevant state rules and regulations; (2) the 

structure in place to regulate the death care industry; (3) enforcement 

mechanisms and capabilities that are in place to enforce the relevant state 

rules and regulations; and (4) the results of enforcement efforts—such as 

inspections of facilities, and enforcement actions taken. We also 

researched and reviewed relevant portions of these states’ laws and 

regulations concerning the death care industry. Table 6 provides a listing 

of the state regulatory, death care industry, and consumer associations we 

met in the 6 states visited. The results from our work in these states are 

not generalizeable across all states. 

 2

California, Florida, New York, and Texas, were also included in an earlier report on the 

death care industry, U.S. General Accounting Office, Funeral-Related Industries: 

Complaints and State Laws Vary, and FTC Could Better Manage the Funeral Rule, 

GAO/GGD-99-156 (Washington, D.C.: September 1999). 
Appendix I: Objectives, Scope, and 

Methodology 

Page 18 GAO-03-757 Death Care Industry 

Table 6: Listing of State Regulatory Agencies, Death Care Industry Associations, and Consumer Associations We Met with in 

the 6 States Visited 

State State regulatory agencies Death care industry associations Consumer associations 

California Department of Consumer Affairs, 

Cemetery and Funeral Bureau 

California Funeral Directors Association 

Interment Association of California 

Funeral Consumers Alliance of 

California 

Florida Department of Business and 

Professional Regulation, Board of 

Funeral Directors and Embalmers 

Department of Banking and Finance 

(Now called the Department of 

Financial Services), Bureau of 

Funeral and Cemetery Services 

Florida Funeral Directors Association 

Association of Independent Funeral 

Directors of Florida 

Florida Funeral and Cemetery 

Consumer Advocacy 

Georgia Office of the Secretary of State, 

Securities and Business Regulation 

Division 

Professional Licensing Boards 

Division 

Georgia Funeral Directors Association AARP, Georgia State Office 

Hawaiia Department of Health, Sanitation 

Branch 

Department of Health, Clean Air 

Branch 

Department of Commerce and 

Consumer Affairs, Cemetery and 

Funeral Trust Program 

Hawaii Funeral Directors Association 

Hawaii Allied Memorial Council 

Memorial Society of Hawaii 

New York Department of State, Division of 

Cemeteries 

Department of Health, Bureau of 

Funeral Directing 

New York State Funeral Directors 

Association 

New York State Association of Cemeteries 

Memorial Society of the HudsonMohawk Region 

Texas Texas Funeral Service Commission 

Department of Banking, Special 

Audits Division 

Texas Funeral Directors Association 

Texas Cemeteries Association 

Consumers Union, Southwest 

Region 

Funeral Consumers Alliance of 

Texas 

Source: GAO. 

a

In Hawaii, we also attended a meeting of the “Hawaii Task Force to Examine State Regulators of 

Death Care Providers.” 

Our work focused primarily on the states since most regulatory 

responsibilities regarding the death care industry are handled at the state 

level. We did, however, communicate with officials from the (1) Federal 

Trade Commission, (2) Department of Veterans Affairs’ National Cemetery 

Administration, (3) Environmental Protection Agency, and 

(4) Occupational Safety & Health Administration to obtain information 

and documentation on these agencies’ specific roles and responsibilities 
Appendix I: Objectives, Scope, and 

Methodology 

Page 19 GAO-03-757 Death Care Industry 

in regulating the death care industry and their interaction with state 

agencies that are the primary regulators of the death care industry. 

In order to obtain broader perspectives regarding the death care 

industry—including changing trends and information available to assist 

consumers in making informed choices regarding death care 

transactions—we spoke with officials from the North American Cemetery 

Regulators Association and with representatives from consumer 

associations and the death care industry. Specifically, we met with and 

collected relevant documentation from consumer association officials 

representing AARP, the Funeral Consumers Alliance, and consumer 

associations having an interest in death care industry issues within the 

6 states we visited (see table 6). For the death care industry, we met with 

and collected relevant documentation from officials representing the 

Cremation Association of North American, the International Cemetery and 

Funeral Association, the National Funeral Directors Association, as well as 

local industry associations within the 6 states we visited (see table 6). 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 20 GAO-03-757 Death Care Industry 

There are a variety of resources available to consumers for gathering 

information regarding death care transactions. Through the Federal Trade 

Commission (FTC), various death care industry associations, and 

consumer associations, consumers are able to find brochures and planning 

guides. While the information contained in this appendix is not 

comprehensive, it highlights some sources of information available to 

consumers for making informed choices regarding death care 

transactions. 

FTC provides a printed publication entitled Funerals: A Consumers 

Guide, which is also available on-line at 

(http://www.ftc.gov/bcp/conline/pubs/services/funeral.html) that informs 

consumers on how the Funeral Rule protects them and provides a glossary 

of terms, advice for planning funerals, and a worksheet for consumers to 

compare costs. FTC’s Web site provides links to consumer advocacy and 

industry trade associations, provides a link to electronically file a 

complaint, and posts a toll-free telephone number to its Consumer 

Response Center, 1-877-FTC-HELP (382-4357). 

Representatives from the death care industry associations with whom we 

spoke (both national and local) all provide information on their Internet 

sites and printed documents for consumers. 

• National Funeral Directors Association: The professional association 

for funeral directors and embalmers, has a link entitled “consumer 

resources” on its Web site (www.nfda.org) that consumers can use to find 

information about their state funeral directors associations, associations 

focusing on grief, and funeral planning. Some state funeral directors 

organizations also provide printed and on-line information related to such 

topics as alternatives to traditional funerals, pre-need funeral plans, and 

the role of the funeral director. 

• Cremation Association of North America: A professional association 

promoting the practice of cremation that also provides educational 

brochures on cremation and cremation-related articles for consumers on 

its Web site (http://www.cremationassociation.org). For example, the 

Cremation Association of North America’s Web site offers a brochure 

answering frequently asked questions, such as how cremations are 

performed and whether embalming is necessary. Articles available on the 

Web site cover, for example, the history of cremation and trends 

contributing to the increase in cremation rates. 

Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Resources Available 

from FTC 

Resources Available 

from Death Care 

Industry Sources 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 21 GAO-03-757 Death Care Industry 

• International Cemetery and Funeral Association: Like other industry 

associations we interviewed, this association, a trade association for 

cemeteries, crematories, monument sellers, and funeral homes, provides 

information for consumers via its Web site (http://www.icfa.org). The 

International Cemetery and Funeral Association provides a Consumer 

Resource Guide that answers questions related to dealing with grief, 

burial, cremation, pre-need funeral plans, and the Cemetery Consumer 

Service Council—a voluntary service that mediates complaints between 

consumers and participating cemeteries at no cost to consumers. 

• AARP: An organization for people over 50. Its publications and Web site 

(www.aarp.org) cover a variety of topics of interest to seniors and its Web 

site presents information regarding death care services. 

• Funeral Consumers Alliance: A consumer advocacy association that 

provides death care industry-related information through its Web site 

(http://www.funerals.org). The Web site features such information as a list 

of state and local member organizations, how to file a funeral or cemetery 

complaint, and consumer alerts regarding various aspects of the death 

care industry. State affiliate organizations, also known as memorial 

societies, also provide brochures and Web information, though these 

resources are generally state or county focused. 

Results from our surveys show that most states provide some information 

or protections to consumers regarding their transactions involving the 

death care industry. Table 7 summarizes the range of responses we 

received from the states. 

Resources Available 

from Consumer 

Associations 

Consumer Protection 

Information Offered 

by States 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 22 GAO-03-757 Death Care Industry 

Table 7: Summary of Consumer Information and Protections Offered by the States 

State 

Requires 

death care 

businesses to 

provide 

general price 

lists 

Provides 

one or more 

statesponsored 

complaint 

hot lines 

Provides 

information 

through 

statesponsored 

Web page 

Conducts 

educational 

outreach 

programs 

Provides 

information 

on licensed 

facilities in 

good 

standing 

Holds 

public 

hearings 

Conducts 

investigations of 

legitimate 

consumer 

complaints 

Alabama X X X X 

Alaska X X 

Arizona X X X X 

Arkansas X X X X X X 

California X X X X X X X 

Colorado X X X X 

Connecticut X X X X X 

Delaware X X X X 

Florida X X X X X X 

Georgia X X X X X 

Hawaii X X X X X 

Idaho X X X X 

Illinois X X X X X X X 

Indiana a a a a a a a 

Iowa X X X X X 

Kansas X X X X X X 

Kentucky X X X X X 

Louisiana X X X X X X 

Maine X X X X X 

Maryland X X X X X X X 

Massachusetts X X X X 

Michigan X X X X 

Minnesota X X X X 

Mississippi X X X X X 

Missouri X X X X X X 

Montana X X X 

Nebraska X X X X X 

Nevada X X X X X 

New Hampshire b b b b b b b

New Jersey X X X X X X 

New Mexico X X X X X X 

New York X X X X X 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 23 GAO-03-757 Death Care Industry 

State 

Requires 

death care 

businesses to 

provide 

general price 

lists 

Provides 

one or more 

statesponsored 

complaint 

hot lines 

Provides 

information 

through 

statesponsored 

Web page 

Conducts 

educational 

outreach 

programs 

Provides 

information 

on licensed 

facilities in 

good 

standing 

Holds 

public 

hearings 

Conducts 

investigations of 

legitimate 

consumer 

complaints 

North Carolina X X X X X 

North Dakota X X X X 

Ohio X X X X 

Oklahoma X X X X X 

Oregon X X X 

Pennsylvania X X X X X 

Rhode Island X X X 

South Carolina X X X X 

South Dakota X X X X X X 

Tennessee X 

Texas X X X X X X X 

Utah X X 

Vermont X X X X X 

Virginia X X X X X X X 

Washington X X X X 

West Virginia X X X X X X X 

Wisconsin X X X X 

Wyoming X X X X 

Totals 32 27 42 17 45 19 48 

Source: Information obtained from states’ answers to GAO’s Web based surveys of all 50 states. 

a

State did not provide responses to any of the five Web based surveys. 

b

State did not provide responses to questions regarding consumer protections. 

The 6 states we visited all provide consumers with certain information and 

protections so that they can make informed choices about death care 

transactions. A description of the information and protections available to 

consumers in the 6 states we visited is summarized below. 

• California: Requires that all licensed death care facilities, with the 

exception of cemeteries, place the Cemetery and Funeral Bureau’s name, 

address, and telephone number on all contracts and provide consumers 

with a general price list. Additionally, the Cemetery and Funeral Bureau 

provides a consumer informational guide entitled Consumer Guide to 

Funeral and Cemetery Purchases both in print and on its Web site 

(http://www.cfb.ca.gov) and requires all funeral homes and licensed 

Summary of Results 

from 6 States Visited 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 24 GAO-03-757 Death Care Industry 

cemeteries to display the guide for consumers who inquire about funeral 

or cemetery services and give the guide to consumers before drafting a 

contract. California also has a state sponsored Web page that (1) lists 

some actions taken against licensees through posted press releases, 

(2) provides a complaint hot line number to the Consumer Information 

Center, (3) provides an on-line complaint form, and (4) has a search 

program that allows consumers to research whether firms are in good 

standing. 

• Florida: Provides a state sponsored Web page 

(http://www.myfloridalicense.com) where consumers can obtain 

information on firms in good standing. The Web page also provides a hot 

line number for consumers to contact a customer service agent, as well as 

an on-line complaint form. The Department of Financial Services requires 

its toll-free hot line number to be placed on the signature page of all 

contracts and maintains a Pre-need Funeral Contract Consumer 

Protection Trust Fund for consumers who are defrauded by companies 

that sell pre-need funeral plans. 

• Georgia: Provides on-line information to consumers through a state 

sponsored Web page regarding funeral homes and funeral directors that 

are in good standing with the state. Information regarding cemeteries, preneed dealers and salespersons, and third party sellers of funeral goods 

(merchandise dealers) can be obtained by contacting the Securities and 

Business Regulation Division. The Division also provides general 

consumer information on the Web page. In addition, Georgia holds public 

hearings to address consumer concerns or complaints and conducts 

investigations of legitimate consumer complaints. Further, Georgia 

requires that all cemeteries and businesses that sell pre-need funeral 

merchandise and services provide general price lists to consumers. 

• Hawaii: Provides a state sponsored Web page through the Department of 

Commerce and Consumer Affairs (http://www.ehawaiigov.org) where 

consumers can obtain information about whether a cemetery or pre-need 

licensee is in good standing, verify licensure, and obtain information on 

complaints filed against licensees. The Department of Commerce and 

Consumer Affairs also has a telephone number where consumers can call 

to verify that a business is licensed and to request audited financial 

statements and actuarial reports on trust funds. The Department of Health 

does not have consumer protections that relate to death care transactions. 

• New York: Provides on-line information to consumers through a state 

sponsored Web page that provides information on licensed facilities in 

good standing with the state. New York also conducts educational 
Appendix II: Resources Available to Assist 

Consumers in Death Care Transactions 

Page 25 GAO-03-757 Death Care Industry 

outreach programs to seniors and others. For cemeteries, New York 

requires that a notice be conspicuously posted on or adjacent to the 

cemetery that is in English and includes information such as that the 

cemetery is regulated by the New York State Cemetery Board and lists the 

telephone number of the nearest office of the Division of Cemeteries. In 

addition, cemeteries are required by law to conspicuously post their rules, 

regulations, charges, and prices of their lots in each of their offices. 

• Texas: Requires that all funeral-related businesses provide customers 

with a general price list. Additionally, funeral homes are required to 

provide a brochure, Facts About Funerals, to all customers. Texas 

requires all cemeteries and pre-need companies to provide general price 

lists. Texas maintains complaint hot lines and Web pages and requires its 

regulated entities to include this information on sales agreements and 

price lists. Texas provides information on firms and salespersons in good 

standing and holds public hearings to resolve controversial issues when 

warranted. 
Appendix III: California’s Regulation of the 

Death Care Industry 

Page 26 GAO-03-757 Death Care Industry 

• In California, the Cemetery and Funeral Bureau within the California 

Department of Consumer Affairs regulates funeral homes, funeral 

directors, embalmers, cemeteries, cemetery managers (operators), 

crematories, and crematory managers (operators). The Bureau also 

regulates sales of pre-need funeral plans, but only those that are sold by 

funeral homes that place the sales revenue in trust. California does not 

regulate third party sales of funeral goods. 

• Staff within the Cemetery and Funeral Bureau within the California 

Department of Consumer Affairs focus solely on regulation of the death 

care industry. 

• Requires all funeral homes (also known as “funeral establishments” in 

California), funeral directors, and embalmers to hold a license and 

apprentice embalmers to hold a registration certificate to operate in the 

state. 

• Requires prospective funeral home owners, funeral directors, embalmers, 

and apprentice embalmers to pass a criminal background check. In 

addition to the criminal background checks, prospective funeral directors, 

embalmers, and apprentice embalmers must also be 18 years of age or 

older and pay the appropriate fees. Funeral directors and embalmers must 

pass a state examination. Funeral directors are also required to have an 

Associate of Arts or Science degree. To receive an embalmers license, 

California also requires a 1-year course in an embalming school and a 

2-year apprenticeship with an experienced embalmer in a California 

licensed funeral establishment, during which time the apprentice 

embalmer must embalm or assist in embalming at least 100 cases. 

• Licenses for funeral homes, funeral directors, and embalmers are to be 

renewed annually. 

• Each of California’s 936 funeral homes is to be inspected every 24 to 

30 months. California has four inspectors that spend 100 percent of their 

time conducting such inspections and investigating consumer complaints. 

During inspections of funeral homes, inspectors use a prepared checklist 

and look to ensure, among other things, that (1) arrangement counselors 

have the required training; (2) the facility, the funeral directors, and 

embalmers are properly licensed and that the licenses are conspicuously 

Appendix III: California’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix III: California’s Regulation of the 

Death Care Industry 

Page 27 GAO-03-757 Death Care Industry 

displayed; (3) there is proper maintenance of the preparation room and 

embalming equipment; (4) storage facilities for human remains are 

properly maintained; (5) price lists, contracts, and disclosures meet legal 

requirements; and (6) case files are properly completed. 

• Since January 1, 2000, California has taken a range of enforcement actions 

against funeral homes and funeral directors or embalmers for violations of 

state rules or regulations. The actions taken include issuing notices of 

noncompliance, assessing investigative costs, levying monetary fines, 

placing violators on probation, asking for the voluntary relinquishment of 

a license, suspending a license, revoking licenses, and criminally 

prosecuting a violator. 

• Requires crematories to hold a license to operate in the state. Effective 

July 1, 2003, crematory managers (operators) are required to be licensed 

to operate in California. 

• Requires prospective crematory managers (operators) to be at least 

18 years of age, pass a criminal background check, be a high school 

graduate or have a general equivalency diploma, and pass the state 

crematory manager examination. 

• Licenses for crematories and crematory managers (operators) are to be 

renewed annually. 

• Each of California’s 176 crematories is to be inspected annually. The 

state has two inspectors that spend 100 percent of their time inspecting 

crematories and cemeteries and as of July 1, 2003, added three more 

inspectors. During inspections of crematories, inspectors use a prepared 

checklist and look to ensure, among other things, that the facility is 

properly licensed and has a licensed crematory manager; meets 

refrigeration standards; provides written General Price Lists; there is a 

system for properly identifying remains; the crematory maintains 

employee training records, and price lists; contracts and disclosures meet 

legal requirements; case files, disposition permits, and cremation logs are 

properly completed; and cremated remains are not commingled. 

• Since January 1, 2000, California has taken a range of enforcement actions 

against crematories or crematory operators for violations of state rules or 

regulations. The actions taken include issuing notices of noncompliance, 

assessing investigative costs, levying monetary fines, placing a violator on 

probation, asking for the voluntary relinquishment of licenses, revoking 

licenses, and criminally prosecuting a violator. 

Crematories and 

Crematory Operators 
Appendix III: California’s Regulation of the 

Death Care Industry 

Page 28 GAO-03-757 Death Care Industry 

• Requires some cemeteries to be licensed to operate in the state, but 

private or fraternal cemeteries of less than 10 acres that were formed 

before 1939; and religious and public cemeteries are not subject to 

regulation. Cemetery brokers (supervisors of cemetery sales) and 

cemetery salespersons (persons selling cemetery goods and services, 

cemetery property, and interment space) are to be licensed to operate in 

the state. As of July 1, 2003, California began requiring cemetery managers 

(operators) to be licensed to operate in the state. 

• Requires prospective cemetery managers (operators) to be at least 

18 years of age, pass a criminal background check, be a high school 

graduate or have a general equivalency diploma, pass a state examination, 

and have 2 years of cemetery experience. 

• Licenses for cemeteries are to be renewed annually. Licenses for cemetery 

managers (operators) also have an annual renewal requirement. 

• Effective July 1, 2003, the state began requiring each of its 190 licensed 

cemeteries to be subject to annual, unannounced inspections. The state 

has five inspectors responsible for inspecting cemeteries and crematories. 

These inspectors spend 100 percent of their time inspecting cemeteries 

and investigating consumer complaints involving cemeteries and 

crematories. During inspections of cemeteries, inspectors use a prepared 

checklist and look to ensure that, among other things, the cemetery is 

properly licensed and has a licensed cemetery manager; maintains an 

appropriate record system, price lists, contracts, and that disclosures meet 

legal requirements; case files, disposition permits and interment records 

are properly completed; accurate maps of clearly marked sections and 

plots are maintained; an appropriate amount of dirt covers vaults and 

caskets; and sales of cemetery goods, services, and property meet legal 

requirements. 

• Since January 1, 2000, California has taken a range of enforcement actions 

against cemeteries or cemetery operators for violations of state rules or 

regulations. The actions taken include issuing notices of noncompliance, 

assessing investigative costs, levying monetary fines, placing a violator on 

probation, asking for the voluntary relinquishment of licenses, revoking 

licenses, and criminally prosecuting a violator.1

 1

In its responses to our surveys, California listed the same answers for the actions taken 

against cemeteries or cemetery operators as they did for actions taken against crematories 

and crematory operators. 

Cemeteries and 

Cemetery Operators 
Appendix III: California’s Regulation of the 

Death Care Industry 

Page 29 GAO-03-757 Death Care Industry 

• Regulates only those pre-need funeral plans sold through funeral homes in 

which the proceeds are placed in trust. The state does not license 

companies who sell pre-need funeral plans or their sales staff. The state 

has four auditors whose responsibilities include reviewing pre-need 

contracts for proper language and ensuring the soundness of funds placed 

in trust. 

• Sellers of pre-need funeral plans are required to place into trust 

100 percent of the principal paid for pre-need funeral and cemetery 

goods and services. However, sellers of pre-need funeral plans are 

permitted to take up to 4 percent of the sales revenue out of interest 

earned as an administrative fee. 

• If a purchaser cancels the pre-need contract, the seller is required to 

refund 100 percent of the principal invested and cannot take more than 10 

percent of the interest that has accrued as a revocation fee. 

• Since January 1, 2000, California has taken a range of enforcement actions 

against sellers of pre-need funeral plans for violations of state rules or 

regulations. The actions taken include suspending a license and 

prosecuting a violator. 

• California does not license or register third party sellers of funeral goods, 

but California’s general business law requires price disclosures, in the 

form of a General Price List, individual price tags, and itemized contracts 

of casket retailers. 

• Since January 1, 2000, California has taken no enforcement actions against 

third party sellers of funeral goods. 

Pre-need Sales of 

Funeral Plans 

Third Party Sales of 

Funeral Goods 
Appendix IV: Florida’s Regulation of the 

Death Care Industry 

Page 30 GAO-03-757 Death Care Industry 

• In Florida, two entities regulate the death care industry. The Board of 

Funeral Directors and Embalmers within the Department of Business and 

Professional Regulation regulates funeral homes, funeral directors, 

embalmers, crematories, direct disposers, direct disposer establishments, 

centralized embalming facilities, refrigeration facilities, and removal 

services. In addition, the Board of Funeral and Cemetery Services within 

the Department of Financial Services regulates cemeteries and sellers of 

pre-need funeral plans. Florida does not license third party sellers of 

funeral goods, but registers third party sellers of monuments. 

• Staff who work directly for the Board of Funeral Directors and Embalmers 

within the Department of Business and Professional Regulation, also work 

with other professions. Staff who work for the Board of Funeral and 

Cemetery Services within the Department of Financial Services, focus 

solely on the death care industry. Inspectors in the Department of 

Business and Professional Regulation, however, are responsible for 

inspecting businesses other than just death care-related businesses. Field 

examiners within the Department of Financial Services are only 

responsible for inspections of cemeteries and financial examinations of 

cemeteries and pre-need sales of funeral goods. 

• Requires all funeral homes (also known as “funeral establishments” in 

Florida), funeral directors, and embalmers to hold a license to operate in 

the state. 

• Prospective funeral directors and embalmers are required to, among other 

things, (1) pay an application and examination fee to the state, (2) be at 

least 18 years of age, (3) complete a 1-year internship with a licensed 

funeral director or embalmer, and (4) pass a state and national 

examination. In addition, prospective funeral directors are required to 

have an associates degree in mortuary science, and prospective 

embalmers are to have completed a course in mortuary science. 

• Licenses for funeral homes, funeral directors, and embalmers are to be 

renewed every 2 years. 

• Each of Florida’s 895 funeral homes is to be inspected annually. If 

violations are found, however, the funeral home has 30 days to correct the 

deficiencies and they can be re-inspected. Further, there are additional 

Appendix IV: Florida’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix IV: Florida’s Regulation of the 

Death Care Industry 

Page 31 GAO-03-757 Death Care Industry 

inspections if the funeral home is part of an on-going investigation. The 

state has 17 inspectors, divided among several geographic regions, that 

spend approximately 8 percent of their time inspecting funeral homes and 

crematories. They are also responsible for inspecting other types of 

funeral-related facilities, such as removal services, refrigeration facilities, 

centralized embalming facilities, and direct disposal establishments, in 

addition to barber shops, cosmetologists, and veterinary clinics. During 

inspections of funeral homes, inspectors use a prepared checklist to look 

for such things as whether the facility, the funeral directors, and 

embalmers have current licenses and that the licenses are properly 

displayed; there is adequate ventilation, equipment, and cleanliness in the 

embalming room(s); itemized price lists have the funeral home’s name, 

address, and telephone number; and written agreements for services have 

proper disclosure statements. 

• Since January 1, 2000, Florida has taken a range of enforcement actions 

against funeral homes, funeral directors, or embalmers for violations of 

state rules or regulations. The actions taken include issuing notices of 

noncompliance, sending letters of reprimand, assessing investigative costs, 

levying monetary fines, placing violators on probation, asking for the 

voluntary relinquishment of licenses, suspending licenses, and revoking 

licenses. 

• Requires crematories to hold a license to operate in the state. While 

Florida does not license crematory operators, they do require a designated 

licensed funeral director or direct disposer to be in charge of each 

crematory. 

• Crematory licenses are to be renewed every 2 years. 

• Each of Florida’s 123 crematories is to be inspected annually, but may be 

done more frequently if deficiencies are found or if there is an on-going 

investigation. The same 17 inspectors who inspect funeral homes in 

Florida also conduct inspections of crematories. In conjunction with their 

inspections of funeral homes, other funeral-related facilities, barbershops, 

cosmetologists, and veterinary clinics, these inspectors spend an 

estimated 8 percent of their time inspecting crematories. During 

inspections of crematories, among the items inspectors look at include 

ensuring that the name of the facility and the funeral director in charge is 

posted at the public entrance, a system exists for properly identifying 

human remains, and that bodies are properly placed in the incinerator. 

• Since January 1, 2000, Florida has issued six notices of noncompliance to 

crematories or crematory operators for violations of state rules or 

Crematories and 

Crematory Operators 
Appendix IV: Florida’s Regulation of the 

Death Care Industry 

Page 32 GAO-03-757 Death Care Industry 

regulations, though these are not considered by Florida to be disciplinary 

actions. 

• Requires some cemeteries to be licensed to operate in the state, but 

cemeteries such as those operated by families, or by county, municipal, 

religious, or fraternal organizations are exempt from regulation. Florida 

does not require cemetery operators to be licensed. 

• Cemetery licenses are to be renewed annually. 

• Each of Florida’s 173 licensed cemeteries is to be inspected annually with 

a financial examination every 3 years. If a problem is discovered during an 

inspection, such inspections might occur more frequently. The state has 

11 field examiners that spend 100 percent of their time inspecting 

cemeteries and conducting financial examinations. The inspectors use a 

prepared checklist for these inspections to ensure, among other things, 

that proper licenses are conspicuously displayed, price lists are available, 

and cemetery grounds and roads are maintained. Financial examiners look 

for such things as verification of burial records, reasonable maintenance 

of burial grounds, and that disclosures are given to consumers. 

• Since January 1, 2000, Florida has taken a range of enforcement actions 

against cemeteries or cemetery operators for violations of state rules or 

regulations. The actions taken include issuing notices of noncompliance, 

sending letters of reprimand, levying monetary fines, asking for the 

voluntary relinquishment of a license, revoking licenses, and prosecuting 

violators. 

• Companies who wish to sell pre-need funeral plans are required to obtain 

a “certificate of authority” that authorizes the company to sell pre-need 

funeral plans in Florida. These certificates of authority are renewed 

annually and, with each renewal, licensees must submit a financial 

statement. Separate from its licensing requirements, Florida requires 

companies that sell pre-need funeral plans to contribute $1.001

 to the PreNeed Funeral Contract Consumer Protection Trust Fund to ensure that 

pre-need funds are available to pay for consumers’ funerals in the event 

that sellers of pre-need funeral plans go out of business or otherwise 

cannot meet their contractual obligations to consumers. The state does 

not require the sales agents for these companies to be licensed. Rather, 

 1

Companies that secure pre-need contracts with surety bonds or letters of credit pay $5.00 

per contract. 

Cemeteries and 

Cemetery Operators 

Pre-need Sales of 

Funeral Plans 
Appendix IV: Florida’s Regulation of the 

Death Care Industry 

Page 33 GAO-03-757 Death Care Industry 

sales agents who are not licensed funeral directors are required to register 

with the state. Sales agents are required to renew their registration every 

2 years. The state has 11 field examiners whose responsibilities include, in 

addition to inspecting and examining cemeteries, examining pre-need 

licensees at least once every 3 years to ensure, among other things, that 

(1) the pre-need contracts meet state requirements, (2) sales agents are 

properly registered, and (3) the licensee supported withdrawals from its 

trust fund. 

• The state has different trusting requirements for purchases of pre-need 

funeral and cemetery goods than it does for purchases of pre-need funeral 

and cemetery services. Sellers of pre-need funeral and cemetery goods are 

required to place into trust 110 percent of the wholesale cost or 30 percent 

of the retail price, whichever amount is greater for each good sold. Preneed sellers of funeral or cemetery services are required to place into trust 

a minimum of 70 percent of the total principal. 

• Purchasers are allowed to cancel pre-need contracts at any time. If a 

purchaser cancels the pre-need contract within 30 days, the seller is 

required to refund 100 percent of the principal invested for unused goods 

and services, but is permitted to retain all of the interest accrued. If the 

purchaser cancels the pre-need contract more than 30 days after purchase, 

the seller is required to refund 100 percent of the principal invested for 

unused services, but can retain any interest that may have accrued. Sellers, 

however, are required to deliver goods as stated in the pre-need contract 

or make arrangements with another seller to deliver the purchased goods. 

• Since January 1, 2000, Florida has taken a range of enforcement actions 

against sellers of pre-need funeral plans for violations of state rules or 

regulations. The actions taken include issuing notices of noncompliance, 

sending letters of reprimand, assessing investigative costs, levying 

monetary fines, revoking licenses, and prosecuting violators. 

• Florida does not license third party sellers of funeral goods, but does 

require monument dealers to register with the state. Monument dealers are 

required to (1) be located in a physical location with a street address, 

(2) pay a registration fee, and (3) renew their registration biennially. 

• Since January 1, 2000, Florida has taken no enforcement actions against 

third party sellers of funeral goods for violations of state rules or 

regulations. 

Third Party Sales of 

Funeral Goods 
Appendix V: Georgia’s Regulation of the 

Death Care Industry 

Page 34 GAO-03-757 Death Care Industry 

• In Georgia, regulation of the death care industry is centralized in the Office 

of the Secretary of State. Within this office, the Securities and Business 

Regulation Division regulates perpetual care cemeteries, pre-need sales of 

funeral plans, and third party sales of funeral goods. In addition, the 

Georgia State Board of Funeral Service, within the Secretary of State’s 

Office, regulates funeral homes, funeral directors, and crematories, and is 

supported by staff of the State’s Professional Licensing Boards Division. 

• Staff within the Division responsible for administering and regulating 

cemeteries, pre-need sales of funeral plans, and third party sales of funeral 

goods spend half of their time on the administration and regulation of 

cemeteries, pre-need sales of funeral plans, and third party sales of funeral 

goods and the other half of their time on regulation of charities. Staff that 

work for the State Board of Funeral Service spend about 30 percent of 

their time on death care related issues. 

• Requires all funeral homes, funeral directors, and embalmers to hold a 

license to operate in the state. 

• Prospective funeral directors and embalmers must pass both a national 

and state examination, have a degree in mortuary science, and serve an 

apprenticeship of 3,120 hours over an 18-month period. 

• Licenses for funeral homes, funeral directors, and embalmers are to be 

renewed every 2 years. 

• Each of Georgia’s 736 licensed funeral homes is to be “regularly” inspected 

and all are inspected at least once per year. The state has two inspectors 

that spend 100 percent of their time conducting inspections of funeral 

homes. During these inspections, the inspectors use a prepared checklist 

to look for such things as ensuring whether the embalming room has 

proper equipment, the facility has a range of caskets available with prices 

visibly posted, and licenses for the funeral home and funeral director(s) 

are current and conspicuously displayed. 

• Since January 1, 2000, Georgia has taken a range of enforcement actions 

against funeral homes, funeral directors, or embalmers for violations of 

state rules or regulations. The actions taken include issuing letters of 

reprimand, levying monetary fines, placing violators on probation, asking 

Appendix V: Georgia’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix V: Georgia’s Regulation of the 

Death Care Industry 

Page 35 GAO-03-757 Death Care Industry 

for the voluntary relinquishment of licenses, suspending licenses, and 

revoking licenses. 

• Requires crematories to hold a license to operate in the state. While 

Georgia does not license crematory operators per se, they do require a 

designated licensed funeral director to be in charge of each crematory. 

• Crematory licenses are to be renewed every 2 years. 

• As of May 2002, each of Georgia’s 46 crematories is to be inspected at least 

once a year.1

 The same two inspectors who conduct inspections of funeral 

homes in Georgia also conduct inspections of crematories. During 

inspections of crematories, inspectors use a prepared checklist and look 

to ensure that, among other things, the equipment is operable, there is 

sufficient room for memorial services, and that licenses are current and 

conspicuously displayed. 

• Since January 1, 2000, Georgia has not taken any enforcement actions 

against crematories or crematory operators for violations of state rules or 

regulations. 

• Requires perpetual care cemeteries to be registered to operate in the state, 

but exempts governmentally owned cemeteries, fraternal cemeteries, and 

cemeteries owned and operated by churches, synagogues, or communities, 

and family burial plots. Cemetery operators are not required to be 

licensed, but they are required to register with the state each year. 

• Cemetery registrations are to be renewed annually. 

• While state law does not require annual inspections of Georgia’s 

206 registered cemeteries, inspections are conducted in response to 

complaints. The state has three investigative analysts (inspectors) who 

spend 25 percent of their time inspecting cemeteries. The investigative 

analysts use a checklist and look at such things as whether price lists, 

 1

In May 2002, subsequent to the discovery of decomposed bodies at the Tri-State Crematory 

in Noble, Georgia, the state amended the definition of the term “crematory” to cover more 

facilities, including the Tri-State Crematory. Prior to this amendment, crematory was 

defined as “any place that is owned by a funeral director or funeral establishment where 

cremation is performed, and which is open to the public other than a hospital, clinic, 

laboratory, or other facility authorized by the Department of Human Resources for such 

purposes.” Because Tri-State Crematory was not owned by a funeral director or funeral 

establishment, it was not covered by the former definition of crematory, and thus not 

subject to regulation. 

Crematories and 

Crematory Operators 

Cemeteries and 

Cemetery Operators 
Appendix V: Georgia’s Regulation of the 

Death Care Industry 

Page 36 GAO-03-757 Death Care Industry 

certificates, and sales materials are properly posted, and the general 

condition of the cemetery. The investigative analysts also review financial 

statements and documents. 

• Since January 1, 2000, Georgia has taken a range of enforcement actions 

against cemeteries and cemetery operators for violations of state rules or 

regulations. The actions taken include issuing notices of noncompliance, 

assessing investigative costs, levying monetary fines, and suspending 

licenses. 

• The state does not license companies and their sales agents who sell preneed funeral plans funded by trusts, but these companies and their sales 

agents are to annually register with the state. 

• Sellers of pre-need funeral and cemetery services are required to place 

into trust 100 percent of the principal paid. The state has different trusting 

requirements for sellers of pre-need funeral and cemetery goods. For preneed funeral goods, sellers are required to place into trust 100 percent of 

the principal paid, while sellers of cemetery monuments and outer burial 

containers are required to place into trust 35 percent of the principal paid 

or 110 percent of the wholesale price. 

• If a purchaser cancels the pre-need contract for merchandise and services, 

the seller is required to refund 100 percent of the principal invested and 

100 percent of any interest that has accrued, except that interest is not 

refunded on monuments and vaults. 

• Since January 1, 2000, Georgia has taken enforcement actions against 

sellers of pre-need funeral plans. These actions include four orders 

denying registration of pre-need sales agents. 

• Georgia requires certain, but not all, third party sellers of funeral goods to 

register with the Office of the Secretary of State and these registrations are 

to be renewed at least once per year.2

 2

In Georgia, certain third party sellers are exempt, such as those providing interment and 

disinterment services exclusively at cemeteries exempt from registration. 

Pre-need Sales of 

Funeral Plans 

Third Party Sales of 

Funeral Goods 
Appendix V: Georgia’s Regulation of the 

Death Care Industry 

Page 37 GAO-03-757 Death Care Industry 

• Since January 1, 2000, Georgia has denied the registration of a third party 

seller of funeral goods. 
Appendix VI: Hawaii’s Regulation of the Death 

Care Industry 

Page 38 GAO-03-757 Death Care Industry 

• In Hawaii, regulation of the death care industry is divided between two 

state agencies. The Department of Health has responsibility for regulating 

funeral homes with embalming rooms and embalmers. The Department of 

Commerce and Consumer Affairs regulates cemeteries and pre-need sales 

of funeral plans. Hawaii does not license crematories or third party sellers 

of funeral goods. 

• Staff in the Department of Health’s Sanitation Branch are responsible for 

regulating embalmers and funeral homes with embalming rooms, but also 

regulate food preparation and other businesses. Staff in the Department of 

Commerce and Consumer Affairs’ Division of Professional and Vocational 

Licensing regulate cemeteries and sales of pre-need funeral plans, but 

these represent only a portion of the businesses regulated. 

• Hawaii only requires a license for those funeral homes (also known as 

“mortuaries” in Hawaii) that perform embalmings. Funeral homes that do 

not perform embalmings are not licensed. Embalmers are required to be 

licensed, but funeral directors who do not embalm are not licensed. 

• Embalmers are required to serve a 1-year apprenticeship with a licensed 

embalmer if they did not graduate from a nationally recognized embalming 

school, and pass a national and practical examination. 

• Licenses for embalmers and for funeral homes that embalm are to be 

renewed annually. 

• Each of the 17 funeral homes in Hawaii that perform embalmings is to be 

inspected annually. If a funeral home does not perform embalmings, it is 

not inspected. The state has 24 inspectors that spend less than 1 percent of 

their time conducting inspections of embalming rooms within funeral 

homes. These inspectors spend the majority of their time inspecting food 

preparation and other types of businesses. Inspectors use a prepared 

checklist for inspections of funeral homes and they look for such things as 

proper ventilation, sterilized equipment, and proper disposal of 

wastewater. 

• Since January 1, 2000, Hawaii has taken no actions against funeral homes, 

funeral directors, or embalmers for violations of state rules or regulations. 

Appendix VI: Hawaii’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix VI: Hawaii’s Regulation of the Death 

Care Industry 

Page 39 GAO-03-757 Death Care Industry 

• Hawaii does not license crematories or crematory operators. 

• Hawaii does not require inspections of crematories. 

• Since January 1, 2000, Hawaii has taken no actions against crematories or 

crematory operators for violations of state rules or regulations. 

• Hawaii requires some cemeteries to be licensed to operate in the state, but 

cemeteries operated by families, plantations, communities, or churches 

are exempt from regulation. Hawaii does not require cemetery operators 

to be licensed. 

• Cemetery licenses are to be renewed every 2 years. 

• While state law does not require inspections of Hawaii’s 14 licensed 

cemeteries, inspections can be conducted to investigate complaints 

against cemeteries. 

• Since January 1, 2000, Hawaii has taken enforcement actions against 

cemeteries or cemetery operators for violations of state rules or 

regulations. These actions include issuing warning letters and levying a 

monetary fine 

• Companies offering pre-need funeral plans are to obtain a “pre-need 

funeral authority” license to operate, but their sales agents are not 

required to be licensed or registered by the state. Applicants for pre-need 

licenses are required to provide such things as, business registration, 

current financial statements, proof of tax clearances, credit reports, copy 

of the sales contract to be used, a bond of $50,000, trust agreement 

between applicant and trustee, and an application fee. Companies are 

required to renew their licenses every 2 years. A staff person reviews preneed contracts and trust agreements with assistance from a deputy 

attorney general. Licensees are required to submit an audited financial 

statement and actuarial study on a fiscal or calendar year basis to the 

Department of Commerce and Consumer Affairs. The state’s consultant 

reviews the financial statements and actuarial studies. 

• Sellers of pre-need funeral plans are required to place into trust 70 percent 

of the principal and can retain up to 30 percent of the principal for 

recovery of acquisition costs. Purchasers who cancel their pre-need 

contract are entitled to a refund of 100 percent of the principal they paid, 

but none of the interest that has accrued. 

Crematories and 

Crematory Operators 

Cemeteries and 

Cemetery Operators 

Pre-need Sales of 

Funeral Plans 
Appendix VI: Hawaii’s Regulation of the Death 

Care Industry 

Page 40 GAO-03-757 Death Care Industry 

• Since January 1, 2000, Hawaii has issued one warning letter to a licensed 

seller of pre-need funeral plans and prosecuted one seller of pre-need 

funeral plans for violations of state rules or regulations. 

• Hawaii does not license or register third party sellers of funeral goods 

• Since January 1, 2000, Hawaii has taken no actions against third party 

sellers of funeral goods for violations of state rules or regulations. 

Third Party Sales of 

Funeral Goods 
Appendix VII: New York’s Regulation of the 

Death Care Industry 

Page 41 GAO-03-757 Death Care Industry 

• Regulation of the death care industry is handled by two organizations in 

New York. The Bureau of Funeral Directing within the Department of 

Health regulates funeral homes, funeral directors, and embalmers. The 

Bureau also regulates sales of pre-need funeral plans since only licensed 

funeral directors can sell pre-need funeral plans. In addition, the Cemetery 

Board, which is composed of the Secretary of State, the Attorney General, 

and the Commissioner of Health, regulates cemeteries and crematories. 

Within the Department of State, the Division of Cemeteries administers 

both state laws and the Cemetery Board’s rules and regulations. New York 

State does not regulate third party sales of funeral or cemetery goods. 

• Staff responsible for regulating the death care industry in New York work 

exclusively on death care issues and are not responsible for regulating 

other types of businesses. 

• Requires all funeral homes (also called “funeral firms”) to register with the 

state, whereas funeral directors are required to hold a license to operate in 

the state and this license also authorizes them to perform embalmings. As 

such, since the 1960s, New York has had no separate license for 

embalmers. 

• Requires prospective funeral directors to graduate from mortuary school, 

pass both a national and a state examination, and serve a 1-year residency 

with a licensed funeral director. In addition, funeral directors are required 

to have 12 hours of continuing education every 2 years. 

• Funeral homes are required to renew their registration every 2 years and 

funeral directors are also required to renew their registration every 

2 years. 

• While New York has no specific requirement to inspect its estimated 

1,985 funeral homes, the state has two inspectors that spend 20 percent of 

their time conducting inspections of funeral homes on a “recurrent basis.” 

These inspectors use a prepared checklist to look for such things as that 

the embalming room is properly equipped and sanitary, actual retail prices 

are posted on funeral merchandise offered for sale, and licenses and 

registrations are current and conspicuously posted. 

Appendix VII: New York’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix VII: New York’s Regulation of the 

Death Care Industry 

Page 42 GAO-03-757 Death Care Industry 

• Since January 1, 2000, New York has taken a variety of enforcement 

actions against funeral homes, funeral directors, or embalmers for 

violations of state rules or regulations. These actions include issuing 

notices of noncompliance, sending letters of reprimand, levying monetary 

fines, asking for voluntary relinquishment of licenses, revoking licenses, 

and prosecuting violators. 

• Does not license crematories or crematory operators. However, the state 

Cemetery Board must approve every certificate of incorporation of a 

cemetery corporation, which includes crematories. 

• Each of New York’s 43 crematories is to be inspected twice a year. The 

state has the equivalent of 2.5 inspectors available that spend an estimated 

10 percent of their time inspecting crematories. (These inspectors also 

inspect cemeteries.) During inspections of crematories, inspectors use a 

prepared checklist and look to ensure such things as whether the facility is 

maintained in a clean, orderly, and sanitary manner; there is a plan for 

proper identification of human remains; and current charges are properly 

displayed. 

• Since January 1, 2000, New York has issued 5 notices of noncompliance to 

crematories or crematory operators for violations of state rules or 

regulations. 

• The state does not require cemeteries or cemetery operators to be 

licensed, but the Cemetery Board must approve every certificate of 

incorporation of a cemetery corporation. In addition, all cemeteries are 

required to be not-for-profit corporations. 

• New York’s 1,860 regulated cemeteries are inspected about every 6 or 

7 years. More frequent inspections occur if complaints are received. The 

state has the equivalent of 2.5 inspectors who spend 20 percent of their 

time inspecting cemeteries. The inspectors use a checklist and look at 

such things as whether rules and regulations are conspicuously displayed, 

the condition of memorials, evidence of vandalism, and the overall 

condition of the cemetery. 

• Since January 1, 2000, New York has issued 23 notices of noncompliance 

to cemeteries or cemetery operators for violations of state rules or 

regulations. 

• In New York, only licensed and registered funeral directors can sell preneed funeral plans funded by trusts. As such, there is no separate license 

Crematories and 

Crematory Operators 

Cemeteries and 

Cemetery Operators 

Pre-need Sales of 

Funeral Plans 
Appendix VII: New York’s Regulation of the 

Death Care Industry 

Page 43 GAO-03-757 Death Care Industry 

for sellers of pre-need funeral plans. Registrations are to be renewed every 

2 years. 

• Sellers of pre-need funeral goods and services and pre-need cemetery 

goods plans are required to place into trust 100 percent of the principal 

paid. There is no requirement to place into trust proceeds from the preneed sale of cemetery services. 

• If a purchaser cancels the pre-need contract prior to its use, the seller is 

required to refund 100 percent of the principal paid and 100 percent of any 

interest that has accrued. 

• Since January 1, 2000, New York has taken a number of enforcement 

actions against sellers of pre-need funeral plans for violations of state 

rules or regulations. The actions taken include issuing notices of 

noncompliance, sending letters of reprimand, levying monetary fines, 

requiring restitution to consumers, revoking licenses, and prosecuting 

violators. 

• New York does not regulate third party sales of funeral goods. 

• Since January 1, 2000, New York has taken no enforcement actions against 

third party sellers of funeral goods for violations of state rules or 

regulations. 

Third Party Sales of 

Funeral Goods 
Appendix VIII: Texas’s Regulation of the 

Death Care Industry 

Page 44 GAO-03-757 Death Care Industry 

• Regulation of the death care industry is handled by two organizations in 

Texas. The Texas Funeral Service Commission is responsible for 

regulating funeral homes, funeral directors and embalmers, and for 

registering crematories and certain cemeteries. The Department of 

Banking regulates pre-need sales of funeral plans. The Department of 

Banking also regulates third party sellers of funeral and cemetery goods if 

they sell the goods pre-need. If third party sellers sell the goods at-need, 

they are not regulated. 

• Staff in the Texas Funeral Service Commission focus exclusively on 

regulation of death care industry businesses, whereas staff in the 

Department of Banking are responsible for regulating financial businesses 

in addition to pre-need sales of funeral plans. The Department of Banking 

has staff dedicated exclusively to the regulation of pre-need sales of 

funeral plans and perpetual care cemeteries. 

• Requires all funeral homes, funeral directors, and embalmers to hold a 

license to operate in the state. 

• Prospective funeral directors or embalmers must be a graduate of a 

college of mortuary science, pass both a national and state examination, 

pass a criminal background check, serve a 1- to 2-year provisional 

licensing program (internship) period with a licensed funeral home, and 

pass an oral examination before the Texas Funeral Service Commission 

board. In addition, funeral directors and embalmers are required to obtain 

20 hours of continuing professional education every 2 years. 

• Licenses for funeral homes are to be renewed annually, whereas licenses 

for funeral directors and embalmers are to be renewed every 2 years. 

• Each of the estimated 1,300 funeral homes in Texas is to be inspected at 

least once every 2 years.1

 The state has two inspectors that spend 

approximately 90 percent of their time inspecting funeral homes. During 

inspections of funeral homes, these inspectors use a prepared checklist to 

 1

By law, if a violation is found, the funeral home is required to be inspected annually until 

the Texas Funeral Service Commission determines the funeral home is free of violations. 

Appendix VIII: Texas’s Regulation of the 

Death Care Industry 

Regulatory 

Structure 

Enforcement 

Mechanisms 

Funeral Homes, 

Funeral Directors, 

and Embalmers 
Appendix VIII: Texas’s Regulation of the 

Death Care Industry 

Page 45 GAO-03-757 Death Care Industry 

look for such things as whether the embalming room has proper supplies 

and equipment, licenses are current and properly displayed, price lists are 

available, and adequate numbers of caskets are displayed. 

• Since January 1, 2000, Texas has taken a variety of enforcement actions 

against funeral homes, funeral directors, or embalmers for violations of 

state rules or regulations. The enforcement actions include issuing notices 

of noncompliance, sending letters of reprimand, assessing investigative 

costs, levying monetary fines, placing violators on probation, asking for 

the voluntary relinquishment of licenses, suspending licenses, revoking 

licenses, and prosecuting violators. 

• Does not license crematories or crematory operators, but crematories 

must annually register with the Texas Funeral Service Commission.2

• Does not require crematories to be inspected unless the Texas Funeral 

Service Commission receives a complaint.3

• Since January 1, 2000, Texas has taken no enforcement actions against 

crematories or crematory operators for violations of state rules or 

regulations. 

• The state does not require cemeteries to be licensed, but some cemeteries 

must annually register with the Texas Funeral Service Commission.4

Cemeteries that are exempt from registration requirements include public 

cemeteries owned by the state, county, or municipality, family, fraternal, 

and religious cemeteries. Cemetery operators are not required to be 

licensed. 

 2

HB 587, which was signed into law by the Texas Governor on May 29, 2003, will require 

crematories to be licensed starting September 1, 2003, and then renewed annually. 

3

HB 1538, which was signed into law by the Texas Governor on June 20, 2003, will require 

all licensed crematories to be inspected at least once every 2 years effective September 1, 

2003. If the Texas Funeral Service Commission finds a violation, the crematory is required 

to be inspected annually until the Commission determines the crematory is free of 

violations. 

4

Effective September 1, 2003, cemeteries in Texas will be required to be licensed by the 

Texas Funeral Service Commission. These licenses will have to be renewed annually. This 

licensing requirement, however, does not apply to certain cemeteries—such as cemeteries 

owned by a municipality or family, or by a fraternal or religious organization. 

Crematories and 

Crematory Operators 

Cemeteries and 

Cemetery Operators 
Appendix VIII: Texas’s Regulation of the 

Death Care Industry 

Page 46 GAO-03-757 Death Care Industry 

• Texas does not require inspections of its 232 registered cemeteries unless 

the Texas Funeral Service Commission receives a complaint.5

• Since January 1, 2000, Texas has issued notices of noncompliance to and 

assessed investigative costs against cemeteries or cemetery operators for 

violations of state rules or regulations. 

• Companies who wish to sell pre-need funeral plans are required to obtain 

a permit from the Department of Banking. These permits are to be 

renewed at least once each year. The state does not regulate or license the 

individual sales agents of these companies. Contracts used for pre-need 

funeral plan sales must be approved in advance by the Department of 

Banking. 

• Sellers of pre-need funeral plans are required to place into trust 90 percent 

of the principal for funeral goods, funeral services, cemetery goods, and 

cemetery services. The sellers are permitted to retain 10 percent of the 

principal. 

• For pre-need funeral plan contracts purchased prior to September 1, 2001, 

or held less than 1 year, if a purchaser cancels the pre-need contract, the 

seller is required to refund 90 percent of the principal invested, but is 

permitted to retain all of the interest accrued. For pre-need contracts 

purchased on or after September 1, 2001, if a purchaser cancels the preneed contract after 1 year, the seller is required to refund 90 percent of the 

principal invested and 50 percent of the interest accrued. 

• Since January 1, 2000, Texas has taken a variety of enforcement actions 

against sellers of pre-need funeral plans for violations of state rules or 

regulations. The actions include issuing notices of noncompliance; 

assessing investigative costs; conducting follow-up examinations; levying 

monetary fines; placing violators on probation; suspending permits; 

revoking permits; and issuing cease, desist, and seizure orders. 

• Texas does not regulate third party sales of funeral goods. 

 5

Effective September 1, 2003, cemeteries will be required to be inspected at least once 

every 2 years. If the Texas Funeral Service Commission finds a violation, the cemetery is 

required to be inspected annually until the Commission determines the cemetery is free of 

violations. 

Pre-need Sales of 

Funeral Plans 

Third Party Sales of 

Funeral Goods 
Appendix VIII: Texas’s Regulation of the 

Death Care Industry 

Page 47 GAO-03-757 Death Care Industry 

• Since January 1, 2000, Texas has taken no enforcement actions against 

third party sellers of funeral goods for violations of state rules or 

regulations. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 48 GAO-03-757 Death Care Industry 

Table 8: Comparison of Requirements for Funeral Homes across the 6 Case Study States 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration renewals 

Inspection 

requirements Inspection staff 

Percent of time allocated 

to inspections 

California Funeral homes, 

funeral directors, 

and embalmers are 

required to be 

licensed. 

Licenses for funeral 

homes, funeral 

directors, and 

embalmers are to be 

renewed annually. 

Each of California’s 

936 funeral homes is 

to be inspected every 

24 to 30 months. 

There are 4 

inspectors 

responsible for 

inspecting California’s 

936 funeral homes. 

The inspectors spend 

100% of their time 

inspecting funeral homes 

and investigating 

consumer complaints 

involving funeral homes. 

Florida Funeral homes, 

funeral directors, 

and embalmers are 

required to be 

licensed. 

Licenses for funeral 

homes, funeral 

directors, and 

embalmers are to be 

renewed every 2 

years. 

Each of Florida’s 895 

funeral homes is to be 

inspected annually. 

There are 17 

inspectors who, 

among other things, 

are responsible for 

inspecting Florida’s 

895 funeral homes 

and its 123 

crematories. 

The inspectors spend an 

estimated 8% of their time 

on inspections of funeral 

homes and crematories. 

They are also responsible 

for inspecting other 

funeral-related facilities, 

such as removal services, 

direct refrigeration 

facilities, centralized 

embalming facilities, and 

direct disposers in addition 

to barber shops, 

veterinary clinics, and 

cosmetologists. 

Georgia Funeral homes, 

funeral directors, 

and embalmers are 

required to be 

licensed. 

Licenses for funeral 

homes, funeral 

directors, and 

embalmers are to be 

renewed every 2 

years. 

Each of Georgia’s 736 

funeral homes is to be 

“regularly” inspected 

and all are inspected 

at least once a year. 

There are 2 

inspectors 

responsible for 

inspecting Georgia’s 

736 funeral homes 

and its 46 crematories 

The inspectors spend 

100% of their time on 

inspections of funeral 

homes and crematories. 

Hawaii Embalmers and 

funeral homes that 

perform 

embalmings are 

required to be 

licensed. Funeral 

directors and 

funeral homes that 

do not perform 

embalmings are not 

licensed. 

Licenses for 

embalmers and funeral 

homes that perform 

embalmings are to be 

renewed annually. 

Each of Hawaii’s 17 

funeral homes that 

perform embalmings is 

to be inspected 

annually 

There are 24 

inspectors who, 

among other things, 

are responsible for 

inspecting Hawaii’s 17 

funeral homes that 

perform embalmings. 

The inspectors spend less 

than 1% of their time 

inspecting funeral homes’ 

embalming rooms. They 

spend most of their time 

inspecting food 

establishments. 

Appendix IX: Comparison of Regulation of 

the Death Care Industry across the 6 Case 

Study States 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 49 GAO-03-757 Death Care Industry 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration renewals 

Inspection 

requirements Inspection staff 

Percent of time allocated 

to inspections 

New York Funeral homes are 

required to register, 

but are not 

licensed. Funeral 

directors are 

required to be 

licensed and 

registered. There is 

no separate license 

for embalmers 

Funeral firms and 

funeral directors are 

required to renew their 

registrations every 2 

years. 

There is no specific 

requirement for New 

York’s estimated 1,985 

funeral firms to be 

inspected, but they are 

inspected on a 

“recurrent basis.” 

There are 2 

investigators who, 

among other things, 

are responsible for 

inspecting New York’s 

estimated 1,985 

funeral firms. 

The investigators spend 

an estimated 20% of their 

time on inspections of 

funeral firms and the 

remainder of their time on 

other issues related to 

regulation of funeral firms, 

funeral directors, and 

sales of pre-need funeral 

plans. 

Texas Funeral homes, 

funeral directors, 

and embalmers are 

required to be 

licensed. 

Funeral home licenses 

are to be renewed 

annually and licenses 

for funeral directors 

and embalmers are to 

be renewed every 2 

years. 

Each of Texas’s 

estimated 1,300 

funeral homes is to be 

inspected at least once 

every 2 years. 

There are 2 

inspectors who, 

among other things, 

are responsible for 

inspecting Texas’s 

estimated 1,300 

funeral homes. 

The inspectors spend an 

estimated 90% of their 

time on inspections of 

funeral homes and the 

remainder of their time on 

other issues related to 

regulation of funeral 

homes and funeral 

directors. 

Source: GAO analysis of data provided by officials within the 6 case study states. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 50 GAO-03-757 Death Care Industry 

Table 9: Comparison of Requirements for Crematories across the 6 Case Study States 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration 

renewals 

Inspection 

requirements Inspection staff 

Percent of time 

allocated to inspections

California Crematories and 

crematory operators 

are required to be 

licensed. 

Licenses for 

crematories and 

crematory operators 

are to be renewed 

annually. 

Each of California’s 

176 crematories is to 

be inspected annually.

There are 2 

inspectors 

responsible for 

inspecting and 

investigating 

complaints about 

California’s 176 

licensed crematories 

and its 190 licensed 

cemeteries. Effective 

July 1, 2003, 3 more 

inspectors will be 

available to inspect 

and investigate 

crematories and 

cemeteries. 

The inspectors spend 

100% of their time on 

inspections and 

investigations of 

crematories and 

cemeteries. 

Florida Crematories are 

required to be 

licensed, but not 

crematory operators. 

Each crematory, 

however, must 

designate a licensed 

funeral director to be 

in charge. 

Crematory licenses 

are to be renewed 

every 2 years 

Each of Florida’s 123 

crematories is to be 

inspected annually. 

There are 17 

inspectors 

responsible for 

inspecting Florida’s 

123 crematories and 

its 895 funeral homes. 

The inspectors spend an 

estimated 8% of their time 

on inspections of funeral 

homes and crematories. 

They are also responsible 

for inspecting other 

funeral-related facilities, 

such as removal services, 

direct refrigeration 

facilities, centralized 

embalming facilities, and 

direct disposers in 

addition to barber shops, 

veterinary clinics, and 

cosmetologists. 

Georgia Crematories are 

required to be 

licensed, but not 

crematory operators. 

Each crematory, 

however, must 

designate a funeral 

director to be in 

charge. 

Crematory licenses 

are to be renewed 

every 2 years 

As of May 2002, each 

of Georgia’s 46 

crematories is to be 

inspected at least 

once per year. 

There are 2 

inspectors 

responsible for 

inspecting Georgia’s 

46 crematories and its 

736 funeral homes. 

The inspectors spend 

100% of their time on 

inspections of crematories 

and funeral homes. 

Hawaii Neither crematories 

nor crematory 

operators are required 

to be licensed. 

Not applicable. Crematories are not 

required to be 

inspected. 

Not applicable. Not applicable. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 51 GAO-03-757 Death Care Industry 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration 

renewals 

Inspection 

requirements Inspection staff 

Percent of time 

allocated to inspections

New York Neither crematories 

nor crematory 

operators are required 

to be licensed. 

However, New York’s 

Cemetery Board must 

approve every 

certificate of 

incorporation of a 

cemetery corporation, 

which includes 

crematories. 

Not applicable. Each of New York’s 43 

crematories is to be 

inspected twice a year.

The state has the 

equivalent of 2.5 

inspectors available 

to conduct 

inspections of 

crematories. These 

inspectors also 

inspect cemeteries. 

The inspectors spend an 

estimated 10% of their 

time inspecting 

crematories. 

The inspectors spend the 

rest of their time 

performing other duties 

related to regulation of 

crematories and 

cemeteries. 

Texas Neither crematories 

nor crematory 

operators are required 

to be licensed, but 

crematories must 

register.a

Crematories must 

annually renew their 

registration.a

Crematories are not 

required to be 

inspected, but 

inspections are 

performed if a 

complaint is received.b

Not applicable. Not applicable. 

Source: GAO analysis of data provided by officials within the 6 case study states. 

a

Effective September 1, 2003, crematories in Texas will be required to be licensed and the licenses 

will be required to be renewed annually. 

b

Effective September 1, 2003, crematories in Texas will be required to be inspected at least once 

every 2 years. If the Texas Funeral Service Commission finds a violation, the crematory is required to 

be inspected annually until the Commission determines the crematory is free of violations. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 52 GAO-03-757 Death Care Industry 

Table 10: Comparison of Requirements for Cemeteries across the 6 Case Study States 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration 

renewals 

Inspection 

requirements 

Inspection or 

examination staff 

Percent of time 

allocated to 

inspections or 

examinations 

California Some cemeteries are 

required to be licensed 

and cemetery 

managers are required 

to be licensed. 

Licenses for nonexempt cemeteries 

and for cemetery 

managers are to be 

renewed annually. 

Effective July 1, 2003, 

each of California’s 

190 licensed 

cemeteries is subject 

to annual inspections. 

There are 2 inspectors 

responsible for 

inspecting and 

investigating 

California’s 190 

licensed cemeteries 

and its 176 

crematories. Effective 

July 1, 2003, 3 more 

inspectors will be 

available to inspect 

and investigate 

cemeteries and 

crematories. 

The inspectors spend 

100% of their time on 

inspections and 

investigations of 

cemeteries and 

crematories. 

Florida The state estimates 

that it has 3,000 

cemeteries, but most 

are exempt from 

regulation. While some 

cemeteries are 

required to be 

licensed, cemetery 

operators are not 

required to be 

licensed. 

Licenses for nonexempt cemeteries 

are to be renewed 

annually. 

Each of Florida’s 173 

licensed cemeteries is 

to be inspected 

annually, with financial 

examinations to be 

performed very 3 

years. 

There are 11 field 

examiners responsible 

for inspecting/ 

examining Florida’s 

173 licensed 

cemeteries and sellers 

of pre-need funeral 

plans. 

The field examiners 

spend 100% of their 

time on inspections of 

licensed cemeteries 

and financial 

examinations of 

cemeteries and sellers 

of pre-need funeral 

plans. 

Georgia Some cemeteries are 

required to register. 

Cemetery operators 

are not required to be 

licensed, but they must 

register. 

Registrations for nonexempt cemeteries 

and for cemetery 

operators are to be 

renewed annually. 

There is no 

requirement for 

inspections of 

Georgia’s 206 

registered cemeteries, 

but they are inspected 

in response to 

complaints. 

There are 3 

investigative analysts 

responsible for 

examining Georgia’s 

206 registered 

cemeteries. 

The investigative 

analysts spend an 

estimated 25% of their 

time on inspections of 

registered cemeteries. 

In addition, they review 

cemetery trust fund 

and escrow records 

and accounts and 

annual financial 

statements for 

cemeteries. They are 

also are responsible for 

reviewing financial 

records for other types 

of businesses, like 

sellers of pre-need 

funeral plans and 

charities. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 53 GAO-03-757 Death Care Industry 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration 

renewals 

Inspection 

requirements 

Inspection or 

examination staff 

Percent of time 

allocated to 

inspections or 

examinations 

Hawaii Some cemeteries are 

required to be 

licensed, but cemetery 

operators are not 

required to be 

licensed. 

Licenses for nonexempt cemeteries 

are to be renewed 

every 2 years. 

There is no 

requirement for 

inspections of Hawaii’s 

14 licensed 

cemeteries, but they 

can be inspected in 

response to 

complaints. 

Not applicable. Not applicable. 

New York There is no 

requirement for 

cemeteries or 

cemetery operators to 

be licensed, but the 

Cemetery Board must 

approve the certificate 

of incorporation for 

each cemetery and all 

regulated cemeteries 

are required to be notfor-profit corporations. 

Not applicable Inspections of New 

York’s 1,860 regulated 

cemeteries are 

conducted every 6 or 7 

years, but are done 

more frequently if 

complaints are 

received. 

There are the 

equivalent of 2.5 

inspectors responsible 

for inspecting New 

York’s 1,860 regulated 

cemeteries. 

The inspectors spend 

an estimated 20% of 

their time inspecting 

cemeteries. The 

inspectors spend the 

rest of their time 

performing other duties 

related to regulation of 

cemeteries and 

crematories. 

Texas There is no 

requirement for 

cemeteries or 

cemetery operators to 

be licensed, but 

cemeteries must 

register with the state.a

Texas did not provide 

information on the 

number of cemeteries 

that are exempt from 

regulation. 

Cemeteries must 

annually renew their 

registration with the 

state.a

There is no 

requirement for 

Texas’s 232 registered 

cemeteries to be 

inspected unless a 

complaint is received.b

There are 8 examiners 

responsible for on-site 

examinations at 

Texas’s 232 registered 

cemeteries. 

These 8 examiners 

spend an estimated 

35% of their time 

examining registered 

cemeteries. The 

examiners spend the 

majority (65%) of their 

time examining trust 

funds and contracts for 

pre-need funeral plans. 

Source: GAO analysis of data provided by officials within the 6 case study states. 

Note: Of the 6 case study states, only Florida provided information on the total number of cemeteries 

that operate in their state. The types of cemeteries that are exempt from regulation include those 

cemeteries that are affiliated with a religious organization or that are owned and operated by a 

municipality. 

a

Effective September 1, 2003, cemeteries in Texas will be required to be licensed by the Texas 

Funeral Service Commission. These licenses will have to be renewed annually. This licensing 

requirement, however, does not apply to certain cemeteries—such as cemeteries owned by a 

municipality or family, or by a fraternal or religious organization. 

b

Effective September 1, 2003, cemeteries will be required to be inspected at least once every 2 years. 

If the Texas Funeral Service Commission finds a violation, the cemetery is required to be inspected 

annually until the Commission determines the cemetery is free of violations. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 54 GAO-03-757 Death Care Industry 

Table 11: Comparison of Requirements for Pre-Need Funeral Plan Sales Funded by Trusts in the 6 Case Study States 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration renewals

Trusting 

requirements 

Reimbursement 

requirements 

Inspection/audit 

resources 

California State regulates only 

pre-need funeral plan 

sales by funeral 

homes in which the 

proceeds are placed 

in trust. 

Not applicable. Sellers of pre-need 

funeral plans are 

required to place into 

trust 100% of the 

principal paid for 

funeral and cemetery 

goods and services. 

If a purchaser cancels 

a pre-need contract, 

the seller is required to 

refund 100% of the 

principal paid and 

cannot take more than 

10% of the interest that 

may have accrued. 

There are 4 auditors 

who review pre-need 

contracts for proper 

language and for 

ensuring the 

soundness of funds 

placed in trust. 

Florida Companies that wish 

to sell pre-need 

funeral plans are 

required to obtain a 

“certificate of 

authority” that 

authorizes them to sell 

pre-need funeral plans 

in Florida. Sales 

agents for these 

companies are not 

required to be 

licensed, but they 

must register. 

Companies are 

required to renew their 

certificate of authority 

each year and to 

annually submit 

financial statements. 

Sales agents of these 

companies are 

required to renew their 

registration with the 

state every 2 years. 

Sellers of pre-need 

funeral and cemetery 

goods are required to 

place into trust 110% 

of the wholesale cost 

or 30% of the retail 

price, whichever 

amount is greater for 

each good sold. Preneed sellers of funeral 

or cemetery services 

are required to place 

into trust a minimum 

of 70% of the total 

principal. 

If a purchaser cancels 

the pre-need contract 

within 30 days of 

purchase, the seller is 

required to refund 

100% of all funds paid. 

If a purchaser cancels 

the pre-need contract 

more than 30 days 

after purchase, the 

seller is required to 

refund 100% of the 

principal invested for 

unused services, but 

can retain any interest 

that may have accrued. 

Sellers, however, are 

required to deliver 

goods as stated in the 

pre-need contract or 

make arrangements 

with another seller to 

deliver the purchased 

goods. 

There are 11 

examiners who, 

besides inspecting and 

examining licensed 

cemeteries, also 

examine pre-need 

licensees (companies) 

to ensure, among other 

things, that pre-need 

contracts meet state 

requirements, sales 

agents are properly 

registered, and 

whether the licensees 

supported withdrawals 

from its trust fund. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 55 GAO-03-757 Death Care Industry 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration renewals

Trusting 

requirements 

Reimbursement 

requirements 

Inspection/audit 

resources 

Georgia Neither companies 

that sell pre-need 

funeral plans nor their 

sales agents are 

required to be 

licensed, but the 

companies and their 

sales agents are to 

register. 

Companies that sell 

pre-need funeral plans 

and their sales agents 

are to renew their 

registration with the 

state each year. 

Sellers of pre-need 

funeral plans are 

required to place in 

trust 100% of the 

principal paid. For preneed funeral goods, 

sellers are required to 

place in trust 100% of 

the principal paid, 

while sellers of 

cemetery goods 

(monuments and outer 

burial containers) are 

required to place in 

trust 35% of the 

principal paid or 110% 

of the wholesale price.

If a purchaser cancels 

the pre-need contract, 

the seller is required to 

refund 100% of the 

principal invested and 

100% of any interest 

that may have accrued. 

There are 3 

investigative analysts 

responsible for 

examining financial 

statements of sellers of 

pre-need funeral plans. 

These field examiners 

are also responsible for 

examining financial 

records of other 

businesses, like 

cemeteries and 

charities. 

Hawaii Companies that want 

to sell pre-need 

funeral plans in Hawaii 

are required to obtain 

a “pre-need funeral 

authority license.” The 

companies’ sales 

agents are not 

required to be 

licensed or registered. 

Companies are 

required to renew their 

“pre-need funeral 

authority license” 

every 2 years. 

Companies that sell 

pre-need funeral plans 

are required to place 

in trust 70% of the 

principal and can 

retain up to 30% for 

recovery of acquisition 

costs. 

Purchasers of pre-need 

funeral plans that 

cancel their contract 

are entitled to a refund 

of 100% of the principal 

they paid, but none of 

the interest that may 

have accrued. 

A staff person reviews 

pre-need contracts and 

trust agreements with 

assistance from the 

Deputy Attorney 

General. Companies 

that sell pre-need 

funeral plans are 

required to submit an 

audited financial 

statement and an 

actuarial statement on 

a fiscal or calendar 

year basis. The state’s 

consultant reviews the 

financial and actuarial 

statements. 

New York In New York, only 

licensed and 

registered funeral 

directors can sell preneed funeral plans 

funded by trusts. As 

such, there is no 

separate license for 

sellers of pre-need 

funeral plans. 

Registrations for 

selling pre-need 

funeral plans are to be 

renewed every 2 

years. 

Sellers of pre-need 

funeral goods and 

services and pre-need 

cemetery goods are 

required to place in 

trust 100% of the 

principal paid. There is 

no requirement to 

place in trust proceeds 

from the sale of 

cemetery services. 

If a purchaser cancels 

a pre-need contract, 

the seller is required to 

refund 100% of the 

principal paid and 

100% of any interest 

that may have accrued. 

Two investigators 

perform reviews of preneed funeral plan 

contracts. These 2 

investigators are also 

responsible for 

regulations involving 

funeral homes and 

funeral directors. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 56 GAO-03-757 Death Care Industry 

State 

Licensing or 

registration 

requirements 

Licensing or 

registration renewals

Trusting 

requirements 

Reimbursement 

requirements 

Inspection/audit 

resources 

Texas Companies that wish 

to sell trust-funded 

pre-need funeral plans 

in Texas are required 

to obtain a permit from 

the Department of 

Banking. Texas does 

not regulate or license 

the sales agents for 

these companies. 

Companies that sell 

trust-funded pre-need 

funeral plans in Texas 

are required to renew 

their permit at least 

once per year. 

Sellers of pre-need 

funeral plans are 

required to place in 

trust 90% of the 

principal for funeral 

and cemetery goods 

and services. Sellers 

are permitted to retain 

10% of the principal. 

For contracts 

purchased prior to 

September 1, 2001, or 

held for less than 1 

year, if a purchaser 

cancels a pre-need 

contract, the seller is 

required to refund 90% 

of the principal 

invested, but is 

permitted to retain all of 

the interest that may 

have accrued. For 

trust-funded pre-need 

contracts purchased on 

or after September 1, 

2001, if the purchaser 

cancels the contract 

after 1 year, the seller 

is required to refund 

90% of the principal 

invested and 50% of 

any interest that may 

have accrued. 

Texas has 8 examiners 

who spend 65% of their 

time on reviewing preneed funeral plan sales 

contracts and 

examining the trust 

funds from sales of 

pre-need funeral plans. 

These examinations 

are performed every 12 

to 16 months. These 

same 8 examiners 

spend the remaining 

35% of their time 

examining financial 

records of regulated 

cemeteries. 

Source: GAO analysis of data provided by officials within the 6 case study states. 
Appendix IX: Comparison of Regulation of the 

Death Care Industry across the 6 Case Study 

States 

Page 57 GAO-03-757 Death Care Industry 

Table 12: Comparison of Requirements for Third Party Sales of Funeral Goods 

across the 6 Case Study States 

State Licensing or registration requirements 

California There is no licensing or registration requirement for third party sellers of 

funeral goods, but California requires that casket retailers provide a General 

Price List, individual price tag, and an itemized contract. 

Florida There is no licensing requirement for third party sellers of funeral goods, but 

monument dealers are required to (1) register with the state, (2) be located 

in a physical location with a street address, (3) and pay a registration fee. 

Monument dealers must renew their registration every 2 years. 

Georgia Some third party sellers are required to register with the Office of the 

Secretary of State. These registrations are to be renewed at least once per 

yeara

Hawaii There is no licensing or registration requirement for third party sellers of 

funeral goods. 

New York There is no licensing or registration requirement for third party sellers of 

funeral goods. 

Texas There is no licensing or registration requirement for third party sellers of 

funeral goods. 

Source: GAO analysis of data provided by officials within the 6 case study states. 

a

In Georgia, some third party sellers are exempt from registration requirements, such as those 

providing interment and disinterment services exclusively at cemeteries that are exempt from 

regulation. 
Appendix X: Consolidation of the Death Care 

Industry and the Interstate Transit of Human 

Remains 

Page 58 GAO-03-757 Death Care Industry 

During our review, questions arose about the extent to which the death 

care industry has been undergoing a transformation from an industry 

comprised of small, family-owned businesses to one where many of the 

small businesses had been “consolidated” under corporate ownership by 

large, publicly traded companies. The variety of possible ownership 

arrangements for this industry, as for any other, can take a range of forms, 

including single ownership of one establishment, single ownership of 

multiple establishments (that could exclusively be of one type such as 

funeral homes, or multiple types, such as funeral homes and cemeteries), 

partnerships of various configurations, to corporations of all sizes. We 

contacted death care industry associations, state regulators in the 6 case 

study states, and national and state consumer associations to gather data 

on the configuration of the death care industry, and particularly on 

ownership of death care-related businesses by large corporations, but 

found very limited data available. 

According to officials within the death care industry and state regulators 

within the 6 case study states, the corporate purchases of funeral homes 

and cemeteries reached a peak in the late 1990s. Since that time, according 

to these officials, the large, publicly traded corporations have been 

divesting themselves of funeral homes and cemeteries. Data we obtained 

from the National Funeral Directors Association (NFDA) support these 

officials’ statements. According to NFDA data, as of July 2003, there were 

an estimated 21,710 funeral homes in the United States—89 percent of 

which were owned by individuals, families, or closely held private 

corporations and the remaining 11 percent were owned by one of the 

publicly traded corporations. The data further show that while the number 

of funeral homes in the United States has remained fairly stable since 

1998, the percent of funeral homes in the United States owned by one of 

the publicly traded corporations has decreased slightly since 1998—from 

13 percent in 1998, to 12 percent in 2002, and then to 11 percent in 2003.1

We have not reviewed these data to verify their validity, and our 

information on corporate ownership relate only to the large, publicly 

traded corporations. 

 1

Data on corporate ownership of funeral homes in the Unites States were not available for 

prior years because until recently, NFDA has not gathered these data on a regular basis. 

Appendix X: Consolidation of the Death Care 

Industry and the Interstate Transit of Human 

Remains 

Consolidation of the 

Death Care Industry 
Appendix X: Consolidation of the Death Care 

Industry and the Interstate Transit of Human 

Remains 

Page 59 GAO-03-757 Death Care Industry 

While it is clear that a number of people die each year in locations other 

than where they or their families want their remains to be placed, no 

systematic data are available to document the extent to which death care 

transactions involve the shipment of human remains across state lines. 

Human remains can be transported from location to location, including 

across state lines, by aircraft, motor vehicles, trains, or other modes of 

transportation. For those living and working in areas proximate to state 

boundaries, the transport of human remains across jurisdictions is no 

doubt routine. For example, an individual could die in Maryland and be 

transported to Virginia or the District of Columbia for burial. Similarly, an 

individual could work and die in New York City and be transported to the 

location of his home in New Jersey or Connecticut for burial. The number 

of these interstate movements is generally not maintained. 

We were unable to gather data from airlines or interstate shipping 

companies about the extent to which death care transactions involve 

interstate transport of human remains because either they did not compile 

such data or they would not share these data for proprietary reasons.2

 We 

also contacted officials in our 6 case study states to find out if their states 

maintain records of the interstate transit of human remains either to or 

from their state. Only Florida was able to provide any data on this issue. 

Specifically, the data provided by a state official showed that, between 

1999 and 2002, the remains of between 14 and 15 percent of the individuals 

who died in Florida were transported out-of-state. State officials did not 

have data on the number of bodies that were transported into Florida from 

other states for final disposition. 

 2

One airline was willing to provide data for 3 recent years, but we are not reporting the data 

because we were unable to obtain comparable data from other airlines or interstate 

shipping companies to provide a more complete picture of trends involving the interstate 

transport of human remains. 

Interstate Transit of 

Human Remains 
Appendix XI: GAO Contacts and Staff 

Acknowledgments 

Page 60 GAO-03-757 Death Care Industry 

John Mortin (202) 512-8777 or mortinj@gao.gov 

Leo Barbour, Christopher Conrad, Tahra Edwards, Stu Kaufman, 

Daniel Mesler, Susan Michal-Smith, John Mingus, Amy Rosewarne, and 

Greg Wilmoth made key contributions to this report. 

Appendix XI: GAO Contacts and Staff 

Acknowledgments 

GAO Contacts 

Staff 

Acknowledgments 
Glossary 

Page 61 GAO-03-757 Death Care Industry 

This glossary is provided for reader convenience, not to provide 

authoritative or complete definitions. 

An area of ground set aside for burial or entombment. 

The person who operates or manages the cemetery. 

The process of burning human remains and the container encasing them 

and processing the resulting bone fragments into ash. 

A furnace for cremating remains or a building housing such a furnace. 

The person who is responsible for operating or managing the crematory. 

The process of preserving a dead body by means of circulating a 

preservative fluid through the veins and arteries. 

A professional who disinfects or preserves dead human bodies by the 

injection or external application of antiseptics, disinfectants, or 

preservative fluids. 

A professional who prepares for the burial or other disposition of dead 

human bodies, supervises such burial or disposition, maintains a funeral 

establishment for such purposes, counsels with survivors. Synonym: 

mortician, undertaker. 

A building used for the purpose of embalming, arranging and conducting 

funerals. Also called “funeral establishment,” “funeral firm,” or “mortuary” 

in some states. 

A method of identifying the occupant of a particular grave. Monuments or 

markers are usually of metal or stone, which gives such data as the name 

of the individual, date and place of birth, date and place of death. 

Glossary 

Cemetery 

Cemetery Operator 

Cremation 

Crematory 

Crematory Operator 

Embalming 

Embalmer 

Funeral Director 

Funeral Home 

Monument or Memorial 

Marker 
Glossary 

Page 62 GAO-03-757 Death Care Industry 

That part of the funeral service profession dealing with the proper 

preparation of the body for final disposition. 

A contractual agreement whereby funeral and/or burial arrangements are 

made and paid for by an individual prior to his/her death. 

Companies or businesses that are not affiliated with a funeral home or 

cemetery that sell funeral goods. 

Mortuary Science 

Pre-need Funeral Plan 

Third Party Sellers of 

Funeral Goods 

(440147) 
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