Verlin Stoll is a 27-year-old entrepreneurial dynamo who owns Crescent
Tide funeral home in Saint Paul, Minn. Verlin has built a successful
business because he offers low-cost funerals while providing
high-quality service. His business is also one of the only funeral
homes that benefits low-income families who cannot afford the high
prices of the big funeral-home companies.
Verlin wants to
expand his business, hire new employees and continue to offer the lowest
prices in the Twin Cities, but Minnesota refuses to let Verlin build a
second funeral home unless he builds a $30,000 embalming room that he
will never use.
Minnesota’s law is irrational. Embalming is
never required just because someone passes away and the state does not
even require funeral homes to do their own embalming. In fact, it is
perfectly legal to outsource embalming to a third-party embalmer.
Minnesota’s largest funeral chain has 17 locations with 17 embalming
rooms, but actually uses only one of those rooms.
Why is Minnesota forcing Verlin to waste $30,000 on a useless embalming room as a condition of expanding his thriving business?
So
that the big, full-amenity funeral-home businesses can benefit from a
law that drives up prices for consumers and operating expenses for
competitors such as Verlin. Verlin’s basic services fee is only $250,
which is about 90 percent lower than the $2,500 that the average Twin
Cities’ funeral home charges. Verlin’s business model is built on
minimizing fixed costs, which is why he does not have a hearse or
chapel, and this law—to the advantage of his competitors—stands in the
way of him expanding his low-cost, high-quality approach.
The
government should not force Minnesotans to do useless things. That is
why on January 19, 2012, Verlin and the Institute for Justice challenged
the law in state court.
The Minnesota Constitution protects
every Minnesotan’s economic liberty, which means that it protects
entrepreneurs from being burdened by legal requirements that are either
useless or designed to suppress honest competition.
A victory
here will not only free Verlin from an unconstitutional restraint on his
economic liberty, but protect entrepreneurs across the state from
pointless laws and bureaucracy.