AN ACT Relating to funeral directors and embalmers; amending RCW 18.39.010, 18.39.035, 18.39.045, 18.39.070, 18.39.170, 18.39.173, 18.39.195, 18.39.250, and 18.39.350; and adding a new section to chapter 18.39 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 1, chapter 108, Laws of 1937 as last amended by section 1, chapter 66, Laws of 1982 and RCW 18.39.010 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Funeral director" means a person engaged in the profession or business of arranging and conducting funerals and supervising or directing the burial and disposal of dead human bodies.

(2) "Embalmer" means a person engaged in the profession or business of disinfecting, preserving or preparing for disposal or transportation of dead human bodies.

(3) "Two-year college course" means the completion of sixty semester hours or ninety quarter hours of college credit, including the satisfactory completion of certain college courses, as set forth in this chapter.

(4) "Funeral establishment" means a place of business licensed in accordance with RCW 18.39.145, conducted at a specific street address or location, and devoted to the care and preparation for burial or disposal of dead human bodies and includes all areas of such business premises and all tools, instruments, and supplies used in preparation and embalming of dead human bodies for burial or disposal.

(5) "Director" means the director of licensing.

(6) "Board" means the state board of funeral directors and embalmers created pursuant to RCW 18.39.173.

(7) "Prearrangement funeral service contract" means any contract, other than a contract entered into by an insurance company, under which, for a specified consideration paid in advance in a lump sum or by installments, a funeral establishment promises, upon the death of a beneficiary named or implied in the contract, to furnish funeral merchandise or services.

(8) "Funeral merchandise or services" means those services normally performed and merchandise normally provided by funeral establishments, including the sale of burial supplies and equipment, but excluding the sale by a cemetery of lands or interests therein, services incidental thereto, markers, memorials, monuments, equipment, crypts, niches, or vaults.

(9) "Qualified public depositary" means a depositary, in Washington, defined by RCW 39.58.010, a credit union as governed by chapter 31.12 RCW, a mutual savings bank as governed by Title 32 RCW, a savings and loan association as governed by Title 33 RCW, or ((a)) an in-state federal credit union or a federal savings and loan association organized, operated, and governed by any act of congress, in which prearrangement funeral service contract funds are deposited in secure deposits including, but not limited to, savings accounts or certificates of deposit and similarly secured instruments by any funeral establishment.

Words used in this chapter importing the singular may be applied to the plural of the person or thing, words importing the plural may be applied to the singular, and words importing the masculine gender may be applied to the female.

Sec. 2. Section 3, chapter 43, Laws of 1981 and RCW 18.39.035 are each amended to read as follows:

(1) An applicant for a license as a funeral director shall be at least eighteen years of age, of good moral character, and must have completed a course of not less than two years in an accredited college, and a one-year course of training under a licensed funeral director in this state. The applicant must also pass an examination ((which shall include the following subjects: Funeral directing, psychology, the signs of death, sanitary science, the preparation, burial, and disposal of dead human bodies, and the shipment of bodies of persons dying of contagious or infectious diseases)) as directed by the board.

(2) An applicant for a license as an embalmer must be at least eighteen years of age, of good moral character, and have completed two years at an accredited college, a two-year course of training under a licensed embalmer in this state, and a full course of instruction in ((~~an embalming~~)) a school of mortuary science approved by the board. ((~~No portion of the course of instruction in the embalming school can be applied towards satisfaction of the two-year college course.~~)) The applicant must also pass an examination ((in each of the following subjects: Embalming, anatomy and physiology including histology, embryology, and dissection, pathology, bacteriology, public health including sanitation and hygiene, chemistry including toxicology, restorative art including plastic surgery and demi-surgery, the care, disinfection, preservation, transportation, burial, and disposal of dead human bodies and the contents of this chapter and of the law of the state relating to infectious diseases and quarantine)) as directed by the board.

(3) The board shall determine the content of the above examinations and what constitutes successful passage. The board may use the assistance of others necessary for the preparation and administration of the examinations. The board may allow any portion of the course of instruction in the embalming school to be applied towards satisfaction of the two-year college course in subsection (2) of this section.

Sec. 3. Section 4, chapter 43, Laws of 1981 as amended by section 20, chapter 66, Laws of 1982 and RCW 18.39.045 are each amended to read as follows:

(1) The two-year college course required under this chapter shall consist of sixty semester or ninety quarter hours of instruction at a school, college, or university accredited by the Northwest Association of Schools and Colleges or other accrediting association approved by the board, with a minimum 2.0 grade point((~~, or a grade of C or better, in each subject required by subsection (2) of this section~~)) or C average. The board may determine any required college courses under this section.

(2) ((Credits shall include one course in each of the following subjects: Psychology, mathematics, chemistry, and biology or zoology. Instruction shall also include two courses in English composition and rhetoric, two courses in social science, and three courses selected from the following subjects: Behavioral sciences, public speaking, counseling, business administration and management, and first aid.

~~(3)~~)) This section does not apply to any person registered and in good standing as an apprentice funeral director or embalmer on or before January 1, 1982.

Sec. 4. Section 5, chapter 108, Laws of 1937 as last amended by section 6, chapter 43, Laws of 1981 and RCW 18.39.070 are each amended to read as follows:

((~~(1)~~)) License examinations shall be held ((~~by the director~~)) at least once each year at a time and place to be designated by the director. ((Application to take an examination shall be filed with the director at least forty-five days prior to the examination date and the department shall give each applicant notice of the time and place of the next examination by written notice mailed to the applicant's address as given upon his application not later than fifteen days before the examination, but no person may take an examination unless his application has been on file for at least fifteen days before the examination. The applicant shall be deemed to have passed an examination if the applicant attains a grade of not less than seventy-five percent in each subject of the examination. Any applicant who fails any subject in the first examination shall be entitled, at no additional fee, to a second examination in the subject or subjects at the next regular examination.

~~(2) An applicant for a license hereunder may take his written examination after completing the educational requirements and before completing the course of training required under RCW 18.39.035.~~)) The director may determine the procedures for application and any other procedures related thereto.

Sec. 5. Section 16, chapter 108, Laws of 1937 and RCW 18.39.170 are each amended to read as follows:

There shall be appointed by said director of licensing an agent whose title shall be "inspector of funeral directors and embalmers of the state of Washington." No person shall be eligible for such appointment unless, at the time of his appointment, he shall have been a duly licensed funeral director and embalmer in the state of Washington, with a minimum experience of not less than ((~~five~~)) three consecutive years both as ((an)) a licensed embalmer and as a licensed funeral director in the state of Washington. Said inspector shall hold office during the pleasure of said director of licensing, and the duties of said inspector shall be, and he is hereby authorized, to enter the office, premises, establishment or place of business, where funeral directing or embalming is carried on for the purpose of inspecting and investigating, on behalf of the director or the board, said office, premises, establishment or place of business, ((~~and~~)) the licenses and registrations of embalmers, funeral directors, and apprentices operating therein, and documents and records for compliance with chapters 18.39 and 18.130 RCW, and rules promulgated thereto, by licensees. Such inspector shall serve and execute any papers or process issued by the director of licensing or the board under authority of this chapter or chapter 18.130 RCW, and perform any other duty or duties prescribed or ordered by the director of licensing. Said inspector shall at all times be under the supervision of said director of licensing and he may also assist the state health commissioner in enforcing the provisions of the law relating to health and such rules and regulations as shall have been made and promulgated by the state board of health.

Sec. 6. Section 8, chapter 93, Laws of 1977 ex. sess. and RCW 18.39.173 are each amended to read as follows:

There is hereby established a state board of funeral directors and embalmers to be composed of five members appointed by the governor in accordance with this section, one of whom shall be a public member. ((The three members of the state examining committee for funeral directors and embalmers, which was created pursuant to RCW 43.24.060, as of September 21, 1977 are hereby appointed as members of the board to serve for initial terms. The governor shall appoint two additional members of the board.)) Each professional member of the board shall be licensed in this state as a funeral director and embalmer and a resident of the state of Washington for a period of at least five years next preceding appointment, during which time such member shall have been continuously engaged in the practice as a funeral director or embalmer as defined in this chapter. No person shall be eligible for appointment to the board of funeral directors and embalmers who is financially interested, directly or indirectly, in any embalming college, wholesale funeral supply business, or casket manufacturing business.

All members of the board of funeral directors and embalmers shall be appointed to serve for a term of five years, to expire on July 1 of the year of termination of their term, and until their successors have been appointed and qualified((: PROVIDED, That the governor is granted the power to fix the terms of office of the members of the board first appointed so that the term of office of not more than one member of the board shall terminate in any one year)). In case of a vacancy occurring on the board, the governor shall appoint a qualified member for the remainder of the unexpired term of the vacant office. Any member of the board of funeral directors and embalmers who fails to properly discharge the duties of a member may be removed by the governor.

The board shall meet once annually to elect a chairman, vice chairman, and secretary and take official board action on pending matters by majority vote of all the members of the board of funeral directors and embalmers and at other times when called by the director, the chairman, or a majority of the members. A majority of the members of said board shall at all times constitute a quorum.

Sec. 7. Section 1, chapter 62, Laws of 1979 ex. sess. and RCW 18.39.195 are each amended to read as follows:

(1) Every licensed funeral director, his agent, or his employee shall give, or cause to be given, to the person making funeral arrangements or arranging for shipment, transportation, or other disposition of a deceased person:

(a) If requested by telephone or other means during normal business hours, accurate information regarding the retail prices of funeral merchandise and services offered for sale by that funeral director; and

(b) At the time such arrangements are completed or prior to the time of rendering the service, a written, itemized statement showing to the extent then known the price of merchandise and service that such person making such arrangements has selected, the price of supplemental items of service and merchandise, if any, and the estimated amount of each item for which the funeral service firm will advance money as an accommodation to the person making such funeral arrangements.

(2) No such funeral director, his agent, or his employee, shall bill or cause to be billed any item that is referred to as a "cash advanced" item unless the net amount paid for such item by the funeral director is the same amount as is billed to such funeral director.

Sec. 8. Section 3, chapter 66, Laws of 1982 and RCW 18.39.250 are each amended to read as follows:

(1) Any funeral establishment selling by prearrangement funeral service contract any funeral merchandise or services shall establish and maintain one or more prearrangement funeral service trust funds for the benefit of the beneficiary of the prearrangement funeral service contract.

(2) Fifteen percent of the cash purchase price of each prearrangement funeral service contract, excluding sales tax, may be retained by the funeral establishment. Deposits to the prearrangement funeral service trust fund shall be made not later than the twentieth day of the month following the receipt of each payment made on the last eighty-five percent of each prearrangement funeral service contract, excluding sales tax if not collected.

(3) All prearrangement funeral service trust funds shall be deposited in a qualified public depositary. The account shall be designated as the prearrangement funeral service trust fund of the particular funeral establishment for the benefit of the beneficiaries named in the prearrangement funeral service contract.

(4) All interest((~~, dividends, increases, or accretions of whatever nature~~)) earned by a trust fund shall be kept unimpaired and shall become a part of the trust fund, and adequate records shall be maintained to allocate the share thereof to each contract.

(5) A depositary designated as the depositary of a prearrangement funeral service trust fund shall permit withdrawal of all funds deposited under a prearrangement funeral service contract, plus ((~~accruals~~)) interest thereon, under the following circumstances and conditions:

(a) If the funeral establishment files a verified statement with the depositary that the prearrangement funeral merchandise and services covered by the contract have been furnished and delivered in accordance therewith accompanied by a copy of the death certificate; ((or))

(b) If the funeral establishment files a verified statement, signed by its representative and the purchaser or beneficiary, with the depositary that the prearrangement funeral merchandise and services covered by the contract have been canceled in accordance with its terms, in which case such funds shall be submitted by the depositary directly to the purchaser or beneficiary; or

(6) Any purchaser or beneficiary who has procured a prearrangement funeral service contract has the right to demand a refund of the entire amount paid on the contract, together with all interest((~~, dividends, increases, or accretions to the funds~~)).

(7) Prearrangement funeral service contracts shall automatically terminate if the funeral establishment goes out of business, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors, or for any other reason is unable to fulfill the obligations under the contract. In such event, and upon demand by the purchaser or beneficiary of the prearrangement funeral service contract, the depositary of the prearrangement funeral service contract funds shall refund to the purchaser or beneficiary all funds deposited under the contract, unless otherwise ordered by a court of competent jurisdiction.

(8) Prearrangement funeral service trust funds shall not be used, directly or indirectly, for the benefit of the funeral establishment or any director, officer, agent, or employee of the funeral establishment including, but not limited to, any encumbrance, pledge, or other use of prearrangement funeral service trust funds as collateral or other security.

(9) Every prearrangement funeral service contract shall contain language which informs the purchaser of the prearrangement funeral service trust fund and the amount to be deposited in the trust fund, which shall not be less than eighty-five percent of the cash purchase price of the contract.

NEW SECTION. Sec. 9. A new section is added to chapter 18.39 RCW to read as follows:

The board shall examine the prearrangement trust funds:

(1) Whenever it deems necessary, but at least once every three years;

(2) Whenever the licensee fails after reasonable notice from the board to file the reports required by this chapter or by the board; or

(3) Whenever it is requested by verified petition signed by twenty-five purchasers or beneficiaries of prearrangement merchandise or services alleging that the prearrangement trust funds are not in compliance with this title, in which case the examination shall be at the expense of the petitioners.

The expense of the prearrangement trust fund examination as provided in subsections (1) and (2) of this section shall be paid by the licensee. Such examination shall be privately conducted in the principal office of the licensee and the records relating to prearrangement contracts and trust funds shall be available at such office.

Sec. 10. Section 13, chapter 66, Laws of 1982 and RCW 18.39.350 are each amended to read as follows:

Any person who violates or fails to comply with, or aids or abets any person in the violation of, or failure to comply with any of the provisions of this chapter is guilty of a gross misdemeanor pursuant to chapter 9A.20 RCW. Any such violation constitutes an unfair practice under chapter 19.86 RCW and this chapter and conviction thereunder is grounds for license revocation under this chapter. Retail installment transactions under this chapter shall be governed by chapter 63.14 RCW. Finance or other charges may not be charged for prearrangement contracts except as the board allows by rule.