((RULES OF PROCEDURE FOR)) CREMATION, ALKALINE HYDROLYSIS, AND NATURAL ORGANIC REDUCTION

(1) "Alkaline hydrolysis" or "hydrolysis" means the reduction of human remains to bone fragments and essential elements in a licensed hydrolysis facility using heat, pressure, water and base chemical agents.

(2)"Authorizing agent" means the person(s) legally entitled to control the disposition of the human remains.

(((2) "Crematory authority or endorsement" the legal entity and their authorized representatives, licensed to perform cremations.

(12) "Residue" means the cremation products that may unavoidably remain in the cremation chamber after manual sweeping techniques are performed.))

((A crematory must not take custody of unidentified human remains. Before accepting human remains, the crematory must verify that identification is attached to the cremation container. Upon accepting human remains for cremation, the crematory must make a permanent record of the following:

• An identification number assigned each human remains and inscribed on a metal disc or metal tag. The metal identification disc or tag must identify the crematory and accompany the human remains through each phase of the cremation, processing and packaging. The disc or tag identification number must be recorded on all paperwork regarding a human remains.))(1)(a) A reduction facility must not take custody of unidentified human remains. Before accepting human remains, the reduction facility must verify that identification is attached to the container, shroud, or human remains.

(1) A crematory must not accept ((and))or hold human remains ((for cremation)) unless the human remains are contained in a cremation container which meets the following requirements:

(c) Be resistant to leakage or spillage of bodily fluids.

(2) ((A crematory must not accept human remains in a cremation container having evidence of body fluid leakage.

(3) Human remains that are not embalmed must be held only within a mechanically or commercially acceptable refrigerated facility of adequate capacity, with a maximum temperature of 48 degrees Fahrenheit, or as determined by chapter 246-500 WAC.))The holding facility must:

(1) A hydrolysis facility or natural organic reduction facility must not accept or hold human remains unless the human remains are in a container or shroud that is resistant to leakage or spillage of bodily fluids.

(2) The holding facility must:

(a) Comply with WAC 246-500-020 and all applicable public health laws;

(b) Preserve the dignity of the human remains;

(c) Recognize the health and safety of the hydrolysis facility or natural organic reduction facility operators and others; and

(d) Be secure from access by anyone other than authorized personnel.

(3) If human remains are delivered to a hydrolysis facility or natural organic reduction facility in a container or shroud that is not suitable for placement in the reduction vessel, the transfer of the remains to the vessel must be performed by a properly licensed individual and in accordance with WAC 308-48-030.

(4) When a container or shroud is delivered and shows evidence of bodily fluid leakage, it must be returned to the contracting funeral establishment or transferred to a new container or shroud by a properly licensed individual.

(5) Human remains that are not embalmed must be held only within a mechanically or commercially acceptable refrigerated facility of adequate capacity, with a maximum temperature of 48 degrees Fahrenheit, and otherwise meet the requirements of chapter 246-500 WAC.

(6) If the hydrolysis facility or natural organic reduction facility requires the removal of implanted devices, the devices must be removed by an embalmer or embalmer intern prior to delivery of the human remains to the facility.

(1) ((Cremation))Reduction must not take place until the burial transit permit and authorization for ((cremation))the reduction method are obtained.

(2) Immediately prior to being placed within the ((cremation))reduction chamber, the identification of the human remains must be verified by the ((crematory))reduction facility operator. Appropriate identification of the human remains will be placed near the ((cremation))reduction chamber in such a way as to identify the human remains being ((cremated))reduced. The metal identification disc or metal tag must be placed in the ((cremation))reduction chamber, with the human remains.

(3) Simultaneous ((cremation))reduction of more than one human remains within the same ((cremation))reduction chamber is not permitted, unless written authorization is obtained from the authorizing agent(s)((of each human remains to be cremated simultaneously)). Such written authorization will exempt the ((crematory))reduction facility from all liability for commingling the products of the ((cremation))reduction process.

(4) Simultaneous ((cremation))reduction of more than one human remains within the same ((cremation))reduction chamber may be performed without the authorizations required in subsection (3) of this section, if:

((•))(a) Equipment, techniques, and other devices are employed that keep the human remains separate and distinct, before and during the ((cremation))reduction process((.

•));

(b) Recoverable ((cremated))human remains following reduction are kept separate and distinct after the ((cremation))reduction process.

(5) ((Crematories))Reduction facilities licensed by the state funeral and cemetery board ((or the board of funeral directors and embalmers, will only))will not be used for any other purpose than the ((cremation))reduction of human remains, cadavers, or human body parts.

(1) Upon completion of the ((cremation))reduction process, the end products ((of the cremation process)) must be removed from the ((cremation))reduction chamber, with the exception of residue.

(2) The ((cremation))end products must be placed within an individual container or tray in such a way that will ((insure against))prevent commingling with other ((cremated)) human remains following reduction.

(3) Identification must be attached to the container or tray.

(4) All ((cremated)) human remains following reduction must undergo processing to comply with applicable legal requirements.

(5) Processing ((or pulverization of cremated))of human remains following reduction may not be required if ((cremated)) human remains are ((to be)) placed in a cemetery, mausoleum, or columbarium, or ((building devoted exclusively to religious purposes, or where))if religious or cultural beliefs oppose the practice.

(6) All body prostheses, bridgework, or similar items removed from the ((cremated)) human remains following reduction during processing will be disposed of by the ((crematory))reduction facility, as directed by the authorizing agent.

(1) ((The cremated))Human remains following reduction must be ((placed))packaged in a sealable container((, or in such))or containers as may have been ordered or supplied by the authorizing agent or the reduction facility.

(2) The packaged ((cremated)) human remains will be identified. The metal identification disc or metal tag must stay with the ((cremated)) human remains.

(3) If the ((cremated))entire human remains ((do))will not ((completely fill the))fit within the designated container, the ((remaining space may be filled with suitable packing material. The container must then be securely closed.

(4) If the entire cremated human remains will not fit within the designated container, the remainder of the cremated))remainder of the human remains must be returned to the authorizing agent in ((a second))additional containers, clearly identified as being part of, and together with((,)) the designated container. Upon written consent of the authorizing agent, excess ((cremated)) human remains may be disposed of in any legal manner.

(1) A crematory, hydrolysis facility, or natural organic reduction facility must keep a permanent record of all reductions performed and the disposition or release of the human remains following cremation, alkaline hydrolysis, or natural organic reduction. The record must include the following information:

(a) Name of deceased;

(b) Date of death;

(c) Place of death;

(d) Burial transit permit disposition date;

(e) Date of delivery of human remains to the reduction facility;

(f) Name(s) of authorizing agent;

(g) Relationship of authorizing agent(s);

(h) Name of entity that contracts with the reduction facility;

(i) Starting date of reduction process;

(j) Name of reduction facility operator;

(k) Name of person performing packaging;

(l) Date of packaging human remains following reduction;

(m) Date of release of the reduced human remains following reduction and the name of the individual(s) to whom the human remains were released; and/or

(n) Date and location of disposition of the human remains.

(2) In addition to the recordkeeping requirements listed above, natural organic reduction facilities must also keep a permanent record of:

(a) The ending date of the reduction process; and

(b) The daily temperature data for each natural organic reduction process, including records showing that the minimum temperature of 131 degrees Fahrenheit was reached for seventy-two consecutive hours.

(1) ((A crematory must keep a permanent record of all cremations performed and the disposition or release of the cremated human remains. The record must include the following information:

(3)))When reduced human remains have been in the possession of a reduction facility, funeral establishment or cemetery for a period of ninety days or more, the entity holding the human remains following reduction may arrange for disposition in any legal manner, provided the entity:

(2) No entity making disposition of ((cremated)) human remains following reduction under subsection (((2)))(1) of this section will be liable for the disposition or nonrecoverability of ((cremated))the human remains.

(1) Crematory facilities must:

(a) Only use a commercially produced crematory unit(s); and

(b) Employ a licensed crematory operator or operators.

(2) Hydrolysis facilities must:

(a) Only use a purpose built vessel as a reduction chamber which meets generally accepted standards of the death care profession;

(b) Employ a licensed alkaline hydrolysis operator or operators; and

(c) Comply with all other applicable local, state, and federal laws and regulations.

(3) Natural organic reduction facilities must:

(a) Only use a contained reduction vessel that is designed to promote aerobic reduction and minimizes odors and vectors;

(b) Employ a licensed natural organic reduction facility operator;

(c) Comply with all other applicable local, state, and federal laws and regulations; and

(d) Reach a minimum temperature of 131 degrees Fahrenheit for seventy-two consecutive hours during the reduction process.

(1) A license or endorsement is required in order to operate a crematory, hydrolysis facility, or natural organic reduction facility. Each applicant shall:

(a) Submit an application on a form approved by the funeral and cemetery board; and

(b) Pay a fee as determined by the director per RCW 43.24.086.

(2) The annual license renewal date for reduction facilities is January 31st.

(3) The regulatory fees for reduction facilities are collected at the time of renewal.

(4) All licenses must be posted at the reduction facility.

(1) Licenses are required for operators of each method of reduction. In order to operate a crematory, a hydrolysis facility, or a natural organic reduction facility, applicants must submit:

(a) An application on a form prescribed by the board;

(b) A nonrefundable application fee as defined in WAC 308-48-800; and

(c) A certificate of completion of operator training provided by the equipment manufacturer, or other provider generally accepted by the death care profession, or as approved by the board.

(2) Each operator license will expire annually on the operator's birth date and may be renewed by paying the renewal fee.

(3) Operators of equipment used to perform cremation, alkaline hydrolysis, or natural organic reduction must provide proof of current operator training every five years at the time of the license renewal.

(4) All licenses must be posted at the reduction facility.

(1) Crematories, alkaline hydrolysis facilities, and natural organic reduction facilities regulated under the authority of chapters 18.39 and 68.05 RCW are subject to inspection at least once each year by the inspector of funeral establishments, crematories, alkaline hydrolysis, and natural organic reduction facilities, funeral directors, and embalmers to ensure compliance with Washington state laws and regulations related to health or the handling or disposition of human remains.

(2) Inspections shall cover compliance with applicable statutes and rules. Reduction facilities will be open for inspection during normal business hours. If the facility is not open, the ownership must identify someone to the department that can open the facility for an unannounced inspection, or provide a method of access to the inspector.

(1) The regulatory fees for crematories, alkaline hydrolysis facilities, and natural organic reduction are calculated per disposition and collected at the time of renewal of the license, permit, or endorsement.

(2) For a change of ownership, the selling entity is required to submit the regulatory fee for all dispositions performed by reduction facilities up to the date of transfer of ownership.

(3) Seller must pay the regulatory fees within thirty days after the date of the transfer of ownership.

FINAL DISPOSITION PERMIT

(1) "Authorizing agent" means the person(s) legally entitled to control the disposition of the human remains.

(2) "Final disposition" means burial, entombment, inurnment or scattering.

(1) An authorizing agent or person or persons who have the right to control final disposition of reduced human remains under RCW 68.50.160(3) to dispose of human remains may do so without a permit.

(2) The authorizing agent may designate another person or entity to dispose of the reduced human remains. Where the designee regularly or occasionally disposes of reduced human remains for others, the designee must register to obtain a disposition permit to dispose of reduced human remains by land, sea, or air, where such disposition is made outside dedicated cemetery property.

(3) Reduced human remains may be scattered in any legal manner including:

(a) National parks, after receiving permission from the chief park ranger.

(b) State trust uplands, after receiving permission from the regional manager for each scattering.

(c) Public navigable waters under state control, including Puget Sound, Strait of Juan de Fuca, rivers, streams, and lakes.

(d) The Pacific Ocean beyond the mean lower low water mark. These scatterings must follow U.S. Environmental Protection Agency's General Permit for Burial at Sea. This includes reporting the burial within thirty days to the regional administrator of the U.S. Environmental Protection Agency, Region 10.

(e) Private land, with the permission of the landowner.

(1) Designees who regularly or occasionally dispose of reduced human remains must submit an application for a final disposition permit on a form prescribed by the board and pay the application fee.

(2) All final disposition permits issued under this rule shall be issued for the calendar year and shall expire at midnight, the thirty-first day of January of each year, or at whatever time during any year that ownership or control of any permit holder is transferred or sold.

(3) The final disposition permit fees shall be as set forth in chapter 308-48 WAC and the department shall collect in advance the fees required for licensing.

(1) Final disposition permit holders must provide a certificate of disposition of human remains to the authorizing agent or person authorizing the disposition. The certificate shall identify:

(a) The name of the deceased;

(b) The location and date of the disposition of the human remains;

(c) The manner of disposition (boat, air, or other);

(d) The name of the authorizing agent; and

(e) The name of the funeral home, crematory, hydrolysis facility, natural organic reduction facility, or cemetery arranging the service, if applicable.

(2) Final disposition permit holders must:

(a) Maintain copies of records required under subsection (1) of this section for seven years from the date of disposition; and

(b) Make records available for inspection by the board.

(3) Final disposition permit holders shall report the number of dispositions performed in the previous year on the annual renewal form supplied by the department.

(a) Failure to provide such a report shall automatically suspend the permit.

(b) Such permit may be restored by making the proper report to the department.

FUNERAL DIRECTORS ((AND)), EMBALMERS, CREMATORIES, ALKALINE HYDROLYSIS FACILITIES, AND NATURAL ORGANIC REDUCTION FACILITIES

For the purpose of these rules, the following terms will be construed as follows:

(5)"Embalmer intern" is a person engaged in the study and supervised practical training of embalming under the instruction of a qualified sponsor.

(8)"Funeral director intern" is a person engaged in the study and supervised practical training of funeral directing under the instruction of a qualified sponsor.

(("In its employ" as used in RCW 18.39.148 will include personnel who are employed on a part-time basis as well as personnel who are employed on a full-time basis and be in service at a specific location and involved in the execution of the daily activities of the business.))

(10)"Internship" means a course of required practical training, for a specified period of time, as a prerequisite for obtaining a license to practice the profession of funeral directing or embalming.

Any individual who has been issued a license, in accordance with chapter 18.39 RCW, as a funeral director and/or embalmer having reached at least the age of sixty-two and having discontinued active practice may be eligible to obtain a "retired certificate of registration." If granted, further certificate of registration renewal fees and continuing education are waived. For the purpose of this provision, active practice has the same meaning as funeral director and/or embalmer under RCW 18.39.010 (((1) and (2)))(3) and (4).

(1) Applications. Those persons wishing to obtain the status of a retired registration shall complete an application form, as provided by the board((, and pay the required application fee)). The retired status would become effective upon the filing of a complete application.

(2) Privileges. In addition to the waiver of the renewal fee and continuing education, a retired registrant is permitted to:

(a) Retain and display the board-issued wall certificate of registration;

(b) Use the title funeral director and/or embalmer, provided that it is supplemented by the term "retired";

(c) Offer consultant services relative to funeral directing and embalming;

(d) Provide references for persons seeking licensure under 18.39 RCW;

(e) Serve as a volunteer in an instructional capacity on funeral directing and/or embalming topics; and

(f) Provide services as a technical expert before a court, or in preparation for pending litigation, on matters directly related to funeral directing and/or embalming work performed by the registrant prior to being granted a retired registration.

(3) Restrictions. A retired registrant is not permitted to: Perform any duties of a funeral director and/or embalmer on a full-time, part-time or occasional basis.

(4) Certificate of registration reinstatement. A retired registrant, upon written request to the board and payment of the current renewal fee, may resume active practice as a funeral director and/or embalmer. At that time, the retired registrant shall be removed from retired status and placed on valid/active status in the records of the board.

(5) Exemptions. Under no circumstances shall a registrant be eligible for a retired certificate of registration if ((his/her))their license(s) has been revoked, surrendered, or in any way permanently terminated by the board under chapter 18.39 RCW. Registrants who are suspended from practice and/or who are subject to terms of a board order at the time they reach age sixty-two, shall not be eligible for a retired registration until such time that the board has removed the restricting conditions.

(1) Funeral establishments, funeral directors, embalmers, interns, employees or agents while providing for the care and handling of human remains shall:

(a) Comply with all applicable Washington state laws, rules and regulations related to health or the handling, transportation or disposition of human remains. This rule includes compliance with OSHA/WISHA standards specifically defined in OSHA 29 C.F.R. 1910.1030 with regard to the handling of human remains and infectious materials.

(b) Not perform any act which will tend to affect adversely the dignity, individual integrity or the respectful and reverential handling and burial or other ((customary))lawful disposition of human remains.

(c) Upon receipt of the human remains, obtain the identity of the human remains as established by the institution, agency, or individual releasing the remains and place an identification bracelet or tag on the ankle or wrist of the remains. In the case of a remains that must be placed in a protective pouch due to the condition of the remains, an identification bracelet or tag should be placed inside the pouch and a second bracelet or tag attached to the exterior of the pouch.

(d) Follow the directions of the individual or individuals that has/have the right to control the disposition of the human remains.

(e) Record and maintain the following information:

(i) Name of deceased;

(ii) Date of death;

(iii) Place of death;

(iv) Name and relationship of person(s) having the right to control the disposition;

(v) Date and time of receipt of remains;

(vi) Date and time of refrigeration and/or embalming;

(vii) Date and time of removal of remains from refrigeration;

(viii) Method, date and location of disposition.

(f) Not separate any organs, viscera or appendages of a human remains from any other portion of the remains for a separate or different disposition. ((The entire noncremated human remains that the funeral establishment has received and has possession of must be maintained and disposed of as one entity.))

(g) Provide refrigerated holding of a human remains for which embalming has not been authorized. In addition to these regulations, the handling and refrigeration of human remains shall be governed by chapter 246-500 WAC.

(2) The care and preparation for burial or other disposition of all human remains shall be private. No one shall be allowed in the embalming or preparation rooms while a human remains is being embalmed or during the course of an autopsy except the licensee, ((his authorized))their licensed employees, and public officials in the discharge of their duties. This rule shall not apply to ((duly authorized)) medical personnel employed in a ((case))situation requiring medical expertise or those authorized to be present by the decedent's next of kin.

(3) Every licensee shall provide a written itemization of any property, money, jewelry, possessions or other items ((of significant value)) found on a human remains in the licensee's care, custody or control to the decedent's next of kin or the proper authorities.

A funeral establishment or branch establishment shall:

(1) Have an exclusive area/office at an identified location for conducting the business which is accessible to the public.

(2) Provide private and secure area(s) for holding human remains which will include:

(a) A mechanically or commercially acceptable refrigerated holding area of adequate capacity for unembalmed remains with a maximum temperature of 48 degrees Fahrenheit or as determined by chapter 246-500 WAC;

(b) A sink with hot and cold running water;

(c) Covered receptacles for soiled linens, bandages, refuse and other waste materials which meet OSHA, WISHA, department of health and any other applicable regulations;

(d) Adequate chemicals for the disinfection of human remains and the equipment used in handling and caring for human remains;

(e) Chemical storage that meets OSHA, WISHA, department of health and any other applicable regulations.

(3) Provide rest rooms that are available for staff and the public.

(4) In the case where the holding of human remains is not provided at this facility, provide the identification of the facility upon request to the board and the individual or individuals that has/have the right to control the disposition of the human remains where this establishment or branch provides for the holding and/or preparation of the human remains entrusted to its care (this ((offsite))off-site facility must meet the requirements of subsection (2) of this section).

(5) Provide for the privacy of uncasketed human remains in vehicles used for transportation of the remains by screening, curtains, or adequately tinted windows.

(6) Provide ((that if embalming is performed at the establishment or branch, no embalming of a human remains shall be performed in a funeral establishment or branch establishment except in a room set aside exclusively for embalming of)) a room used exclusively for embalming human remains if embalming is performed at the establishment or branch. Such room shall be maintained and kept in a clean sanitary condition((, and)). Every embalming and preparation room shall be constructed, equipped, and maintained as follows:

(a) The surfaces of the floor, walls, and ceiling shall be covered with tile or other hard, smooth, impervious washable material.

(b) The room shall be adequately lighted and adequately ventilated. The ventilation shall be provided by an exhaust fan and shall comply with OSHA/WISHA standards.

(c) The room shall be equipped and provided with hot and cold running water, a utility sink, and cabinets, closets or shelves for instruments and supplies.

(d) The room shall be equipped with adequate sewage and waste disposal and drainage facilities and systems and comply with OSHA/WISHA standards.

(e) The doors shall be tight closing and rigid and any windows of the room shall be so maintained as to obstruct any view into such room. The room's entry door(s) must be labeled "Private" or "Authorized Entry Only," and must be locked at all times.

(f) The embalming or preparation table shall be nonporous.

(g) The room shall be equipped with proper and convenient covered receptacles for biohazard refuse.

No licensee will, directly or indirectly, assume control of any human remains without having first obtained authority from the person(s) having the right to control the disposition of the human remains under RCW 68.50.160, as to matters relating to the preparation, handling and final disposition of the human remains (including steps in preparation, autopsy, embalming, dressing, viewing, videotaping, photographing((;)), funeral, ((burial and cremation))disposition merchandise, and disposition arrangements).

No licensee will divulge any information as to illness, cause of death, financial affairs or transactions, and any other information customarily considered confidential, obtained while serving in such licensed capacity.

(1) No licensee will remove, embalm, or perform other preparation of a human remains when ((he/she has))they have information indicating crime or violence in connection with the cause of death, until permission is obtained from a coroner, medical examiner or other qualified official.

(2) Any licensee having or obtaining, as a result of providing services, any information in relation to a possible crime must communicate such information to a properly qualified official.

(3) No licensee will perform any act knowing that it will conceal evidence of crime.

(1) A licensee must display a license in each location where ((he/she is))they are employed. ((Legal duplicates provided by the department at a fee to be determined by the director will be displayed when a licensee is employed at more than one location. The display of photocopies is prohibited.))

No licensee shall lend, place, permit or authorize the placement of ((his/her))their license in any establishment or place of business unless the licensee is an owner, part owner or bona fide employee of such place of business, nor shall a funeral establishment or place of business to pretend or represent that it is legally qualified to perform funeral directing or embalming by any such improper use of ((his/her))their license.

(1) Funeral establishments and ((crematories))branch establishments licensed under the provisions of chapter 18.39 RCW will be inspected at least once each year by the duly appointed department inspector.

(2) Inspections shall cover compliance with applicable statutes and rules. Funeral establishments and ((crematories))branch establishments will be open for inspection during normal business hours. If the establishment or ((crematory))branch establishment is not open, the ownership must identify someone to the department that can open the establishment or ((crematory))branch establishment for an unannounced inspection, or provide a method of access to the inspector.

An applicant for a license as a funeral director shall meet the following requirements:

(1) Be at least eighteen years of age;

(2) Complete the following education requirements at an accredited institution approved by the board:

(a) Obtain an associate of arts degree in mortuary science; or

(b) Complete two years of college course work as follows:

(i) Obtain sixty semester credits or ninety quarter credits of college-level instruction with a minimum 2.0 grade point, or a grade of C or better, in courses listed in (b)(ii) of this subsection.

(ii) Credits shall include one course in psychology, one in mathematics, two courses in English composition, two courses in social science, and three courses selected from the following subjects: Behavioral sciences, public speaking, counseling, business administration and management, computer science, and first aid.

(3) Complete a one-year internship with a licensed funeral director; and

(4) Pass an examination in the funeral arts and an examination in the laws of this state pertaining to the handling, care, transportation, and disposition of human remains and the contents of chapter 18.39 RCW.

(5) An applicant's military training or experience may satisfy some or all of the education and training requirements for licensure as determined by the board on a case-by-case basis.

An applicant for a license as an embalmer must meet the following requirements:

(1) Be at least eighteen years of age.

(2)(a) Obtain an associate of arts degree in mortuary science; or

(b) Complete a course of instruction in an accredited mortuary science college program and other college courses that total sixty semester hours or ninety quarter hours.

(3) Complete a two-year internship under a licensed embalmer.

(4) Pass an examination in the funeral sciences and an examination in the laws of this state pertaining to the handling, care, transportation, and disposition of human remains, and the contents of chapter 18.39 RCW.

(5) An applicant's military training or experience may satisfy some or all of the education and training requirements for licensure as determined by the board on a case-by-case basis.

(1) For the purposes of RCW 18.39.035, the term "two year course of training" shall include the embalming of at least ((fifty))twenty-five human remains under the supervision of a licensed embalmer.

(2) The term "two year" shall consist of at least thirty-six hundred hours of employment and cannot be completed in a period of time less than two calendar years.

(3) Registered embalmer interns shall provide a quarterly report to the board on a form supplied by the board containing information relating to the embalmings the intern has assisted with or performed during the required term of internship.

(4) Licensed sponsors shall provide a quarterly report to the board on a form supplied by the board showing the progress of the intern toward the skill level required to work independently.

(1) The annual license ((or registration)) renewal date for embalmers, funeral directors and interns is the licensee's birth date. Individuals making application and fulfilling requirements for initial license and examination will be issued a license ((or registration)), which will expire on their next birth date.

(2) All licensees, with the exception of academic intern, must renew annually.

(3) Before the expiration date of the license, the director will mail a notice of renewal. The licensee must return such notice along with current renewal fees prior to the expiration of the license. Failure to renew the license prior to the expiration date will require payment of ((the penalty))a late fee.

(1) The responsibility for notifying the director, department of licensing of internship registration and termination rests with the ((employing funeral establishment))licensee sponsor. In order to protect the status of the intern in cases where the employing licensee fails to initiate the required report of registration or termination, the affected intern should initiate and ensure submission of same. The notification shall be certified by signature of the sponsor.

(2) No credit for internship will be allowed for any period during which the intern is not registered pursuant to RCW 18.39.120. In the event an intern's sponsor dies or is otherwise incapable of certifying internship credit, such credit may be given by certification by another licensed funeral director or embalmer who has knowledge of the work performed and the credit due or by documentation or reasonable proof of such credit as determined by the board.

If a licensing applicant fails to complete the licensing process and their records show no activity for six consecutive years, the board will consider the application abandoned. No activity includes, but is not limited to:

(1) Failure to submit the required documents within six consecutive years from the receipt of the most recent information submitted.

(2) Failure to provide the board with any written communication during six consecutive years indicating the applicant is attempting to complete the licensing process.

(3) If the application is considered abandoned, it may be archived or destroyed, and the applicant will be required to reapply for licensure and comply with the licensing requirements in effect at the time of reapplication.

(1) ((It is the intent of the board that the establishment licensure process serve to protect consumers by identifying to the department all locations subject to regulation.)) Any provider of any aspect of the care, shelter, transportation, embalming, other preparation and arrangements for the disposition of human remains must be licensed as a funeral establishment. Establishments must obtain a funeral establishment or branch license for each location.

(2) The establishment license requirement does not apply to a facility whose sole function is to perform reduction of human remains.

(3) Branches of an establishment may operate under the general license of the establishment, pursuant to RCW 18.39.145 and 18.39.148 and the following terms and conditions:

(a) Branch(es) must operate under the same name as the establishment.

(b) Branch(es) must display a current branch license.

(c) Branch(es) must have a licensed funeral director in its employ and available to provide any services requiring the professional skills of a licensee.

(d) The failure of a branch to meet the standards of an establishment may result in cancellation of the establishment license, pursuant to RCW 18.39.148.

(1) For the purposes of RCW 18.39.145 each funeral establishment and branch establishment must employ a designated funeral director. The designated funeral director must:

(a) Have a minimum of one year of practical experience as a licensed funeral director in the state of Washington.

(b) Be involved in the execution of the daily activities of the business.

(c) Complete and submit the designated funeral director form when beginning and leaving the position of designated funeral director.

(2) The designated funeral director may be held responsible for the funeral establishment's compliance with state law or other regulation affecting the handling, custody, care, transportation, or disposition of human remains.

(((1) Every individual licensed as a funeral director and/or embalmer or registered as a funeral director intern and/or embalmer intern, shall be required to complete ten hours of approved continuing education every two years as a condition of renewal of such licenses or registrations.

(3) The department shall not renew a license or registration or issue a new license or registration to any person who has failed to submit evidence of completion of ten hours of approved continuing education for the prior two-year period.))To meet the statutory continuing education requirement for renewing licenses for funeral directors, embalmers, funeral director interns and embalmer interns, the board requires the following:

Any person seeking to reinstate a license ((or registration)) which has lapsed for less than one year must comply with the continuing education requirements for regular renewal of the license ((or registration)). Any person seeking to reinstate a license ((or registration)) which has lapsed for one year or longer must present satisfactory evidence of having completed at least ((ten))five hours of approved continuing education activities for the ((two-year)) period prior to ((his or her))their reinstatement.

In emergency situations, such as personal or family sickness, the funeral and cemetery board ((of funeral directors and embalmers)) may waive, for good cause shown, all or part of the continuing education requirement for a ((particular two-year))renewal period for an individual licensee ((or registrant)). The board will require such verification of the emergency as is necessary to prove its existence.

((All continuing education activities, to satisfy the licensure/registration requirements, must be approved by the board of funeral directors and embalmers. Further, the board shall certify the number of hours to be awarded for participation in each approved continuing education activity.))A new license must be obtained following the sale or transfer of ownership or a controlling interest in a cemetery authority, reduction facility, funeral establishment, or branch establishment. All licenses are nontransferable.

(((1) Suspension of fees. Effective January 1, 2015, the listed fees shown in subsection (2) of this section are suspended and replaced with the following:

(1) ((Registration))A license as a funeral director intern or embalmer intern shall not exceed a time period of five years ((from the date of initial registration))cumulative. Following completion of the internship program:

((• The registration))(a) The license for internship will not be renewed.

((•))(b) The intern must qualify for licensure as a funeral director, embalmer or funeral director and embalmer.

(2) Interns must be eighteen years of age and registered under the sponsorship and supervision of a licensed funeral director, embalmer or funeral director and embalmer.

(3) Interns whose job duties require that they perform work at multiple funeral establishment locations may do so and receive training from their sponsor and other licensees as approved by the sponsor.

Licensees who supervise interns:

((•))(1) Must be working and located in the same licensed establishment as the intern, provided: Sponsors may permit interns to perform work at ((multiple funeral))branch establishment locations if required by their job duties.

((•))(2) Each sponsor can supervise a maximum of three interns.

((•))(3) Sponsors of funeral director interns must have a minimum of one year of practical experience as a licensed funeral director in the state of Washington.

((•))(4) Sponsors of embalmer interns must have a minimum of one year of practical experience as a licensed embalmer in the state of Washington.

((•))(5) Sponsors are responsible for work performed by interns registered under the supervision of the sponsor.

A leave of absence from internship requirements may be granted by the board with the following provisions:

((•))(1) The intern submits an appeal to the board for a leave of absence.

((•))(2) The intern is enlisted in military service of the United States or called to active duty in the United States armed forces and resumes internship within one year of release from military service.

((•))(3) The intern is enrolled as a full-time student in a funeral service education program accredited by the American Board of Funeral Service Education (ABFSE).

((•))(4) The board reserves the right to make a determination to waive internship requirements for extenuating circumstances.

((For the purpose of RCW 18.39.010(1), the board has determined that))(1) Transportation of human remains may be performed by ((unregistered))unlicensed persons who are employed by licensed funeral establishments in accordance with WAC 246-500-040.

(3) All transportation of human remains shall be in accordance with chapter 246-500 WAC and RCW 70.58.230.

The purpose of this chapter is to implement the provisions of RCW 18.39.240 through 18.39.345 ((and 18.39.360, by establishing))and to establish rules for the registration of funeral establishments which enter into prearrangement funeral service contracts and to establish uniform minimum requirements for such contracts and prearrangement trust funds.

((Unless the text in this chapter clearly states or requires otherwise, definitions shall be as set forth in RCW 18.39.010.))(1) "Board" means the funeral and cemetery board created pursuant to RCW 18.39.173.

(1) Each funeral establishment entering into prearrangement funeral service contracts in which one or more of the following conditions exist must be registered with the board before entering into such contracts:

(a) The sales price of the contract, using either trust or insurance as a method of funding, guarantees a final price for merchandise and services. The guarantee assures the purchaser that there will be no additional charges for the merchandise and services disclosed within the agreement.

(b) The sales price of the contract using a trust as a method of funding plus accruals will be applied toward the cost of merchandise and services at the time of need. Should the cost of merchandise and services selected at the time of need exceed the sales price of the contract plus accruals, the purchaser will pay the difference. Should the cost of merchandise and services selected at the time of need be less than the sales price of the contract plus accruals, the purchaser will receive a refund for the difference.

(((c) Insurance is used as a method of funding guaranteeing a final price for merchandise and services. Such guarantee assures the purchaser that there will be no additional charges for merchandise and services disclosed in the agreement.))

(2) Before entering into any prearrangement funeral service contracts in this state, a funeral establishment shall first obtain a certificate of registration from the board. To apply for registration, a funeral establishment must file an application on forms approved by the board of funeral directors and embalmers, which includes:

(a) The name, address, and telephone number of the funeral establishment;

(b) A statement of the establishment's current financial condition and an explanation of how the establishment plans to offer, market and service prearrangement contracts including:

(i) The type of business organization which operates the funeral establishment, e.g., sole proprietorship, partnership, or corporation and a list of all officers, directors, partners and managers by name and title, and any person owning more than ten percent of the business;

(ii) ((A balance sheet and a profit and loss statement for the most recently concluded fiscal year and/or))Other ((such)) fiscal documents as the board may require((;)).

(c) The prearrangement funeral service contract forms the establishment proposes to use need not be in final printed form when submitted; however, a copy of the final printed form shall be filed with the board before the form is used;

(d) Identification of the trustee(s) of the prearrangement funeral service trust, including address and telephone number((.)); and

(e) A copy of the prearrangement funeral service trust agreement and the prearrangement funeral service trust depository agreement.

(3) Upon review of the application, the board may require additional information or explanation prior to registration or refusing to register the funeral establishment.

(4) The application shall be accompanied by a check payable to the state treasurer in the amount required by the director for issuance of the certificate of registration.

(1) The terms of prearrangement funeral service contracts are of substantial importance to both consumers and the establishment. Prearrangement funeral service contracts must be approved by the board before being used by a funeral establishment.

(2) Contracts must be written in language that can be easily understood by all parties and printed or typed in easily readable type size and style.

(((2)))(3) Every prearrangement funeral service contract must include the following information:

(a) The name of the purchaser and the beneficiary of the contract;

(b) A description of the services and merchandise to be provided((, if specific merchandise and services are to be furnished, and a statement clearly setting forth whether the purchase price fully pays for such services and merchandise or if the purchase price is to be applied toward the cost of such services and merchandise when they are provided;

(3)));

(4) Such contract shall be dated and be executed by the purchaser and by the funeral establishment through its owner, officer or managing agent.

(1) Each prearrangement funeral trust shall enter into an agreement with one or more depositories in which the responsibilities of the depository are set forth. The agreement shall contain language which:

(a) Sets forth the terms and conditions under which deposits and withdrawals are made;

(b) States that instruments of deposit shall be an insured account in a public depository or shall be invested in ((instruments issued or insured by an agency of the federal government,))accordance with the provisions of RCW 11.100.020 and sets forth the conditions for termination and transfer of the prearrangement trust fund depository agreement.

(2) Prearrangement trust fund depository agreements are an integral part of the prearrangement funeral service contract agreement and shall be approved by the board prior to use. Amendments to or changes in the agreement shall be filed with the board prior to incorporation. The board shall be advised prior to termination of any depository agreement.

(1) Each funeral establishment registered to sell funeral prearrangement contracts must file ((with the board annually, ninety days after the end of its fiscal year,)) a statement of its ((financial condition,)) transactions and affairs for the preceding fiscal year. The statement is due to the board ninety days after the end of its fiscal year.

(2) ((The statement shall include a balance sheet and a profit and loss statement for the preceding fiscal year and/or other such fiscal documents as the board may require.

(3))) The funeral establishment shall list any changes in its officers, directors, managers or partners or any change in ownership greater than ten percent which have occurred in the preceding fiscal year.

(((4)))(3) With respect to each prearrangement funeral service contract trust fund, the following information must be provided:

(a) The name of ((the depository))all trust depositories and the account numbers;

(b) ((The number of outstanding contracts at the beginning of the fiscal year;

(e)))Third-party verification of all prearrangement trust assets;

(d) The number of new contracts ((issued))and the contract amount sold during the fiscal year;

(((f) The amount paid in on such new contracts and the amount deposited in the trust fund for such contracts;

(g)))(e) The total amount received for contracts during the fiscal year;

(f) The number of ((withdrawals))contracts withdrawn from trust and amounts withdrawn from the trust due to contract cancellations and/or instances where the funeral merchandise and services covered by prearrangement contracts have been furnished and delivered. Withdrawals will include principal and earnings;

(((h)))(g) The number of outstanding contracts as of the end of the fiscal year and the amount being held in trust for such contracts.

(((5)))(4) The annual report form must include a ((year-end statement from the depository as to))copy of the depository(ies) statement(s) to verify the amount of money held in funeral prearrangement trust ((as of the reporting date))as well as the monthly deposit and withdrawal activity during the fiscal year.

(d) Provide a statement from the insurance provider(s) to verify the total face amount of all active insurance policies at the end of the fiscal year.

All payments received must be deposited directly into the appropriate trust fund and may not be offset by the amounts due from the trust prior to deposit. Such deposits must be made on or before the 20th day of the month following receipt of each payment due.

If human remains do not meet the reduction facility criteria for the method of disposition specified on a prearrangement funeral service contract, an alternate method of disposition shall be determined by the person(s) having the right to direct disposition per RCW 68.50.160.

Authorizing agents or persons having the right to direct disposition may change funeral establishments without conflict to the "place and method of disposition," as defined in RCW 68.50.160 (1) and (2). Licensees must permit the release of human remains to another funeral establishment if requested by the authorizing agent or person(s) having the right to direct disposition, even when a prearrangement contract exists.

Prearrangement contract trust or insurance funds must be made available to the funeral establishment designated by the authorizing agent.

(1) The use of telephones for solicitation of prearrangements is prevalent. This form of communication offers unique benefits, but entails special risks and poses potential for abuse. The board finds that any impropriety in telephone solicitation is a matter vitally affecting the public interest. For the general welfare of the public and in order to protect the integrity of the funeral industry, the use of telephones in solicitation of prearrangements must be defined by the board.

(2) Definitions:

(a) "Telephone solicitor" means any person who engages in telephone solicitation on behalf of a holder of an establishment license.

(b) "Telephone solicitation" means an unsolicited telephone call to a person and conversation for the purpose of inducing the person to make funeral prearrangements made without previous invitation, expressed or implied, by the person called.

(3) Time limits:

(a) No licensee may knowingly cause a telephone solicitation to be made to any person more often than once in every six months.

(b) A telephone solicitor shall not place calls which will be received before 8:00 a.m. or after 9:00 p.m.

(4) Unfair/deceptive practices. A telephone solicitor may not engage in any conduct the natural consequence of which is to harass, intimidate, or torment any person in connection with the telephone call.

(5) Identification. Within the first thirty seconds of the telephone call, a telephone solicitor or salesperson shall:

(a) Identify ((himself or herself))themselves, the company on whose behalf the solicitation is being made, the property, goods, or services being represented; and

(b) Terminate the telephone call within ten seconds if the purchaser indicates ((he or she does))they do not wish to continue the conversation.

(6) Termination of contact. If at any time during the telephone contact, the purchaser states or indicates that ((he or she does))they do not wish to be called again by the telephone solicitor or wants to have ((his or her))their name and individual telephone number removed from the telephone lists used by the telephone solicitor, the telephone solicitor shall not make any additional telephone solicitation of the called party at that telephone number within a period of at least one year.

(7) Enforcement. In the event that the board discerns a pattern of violation of these standards the board may act against the registrant's prearrangement registration as provided by chapter 18.39 RCW.

CEMETERIES—ENDOWMENT CARE FUNDS

Any cemetery authority not exempt under chapter 68.40 RCW shall establish, maintain, and operate an inviolable endowment care fund. Endowment care, special care, and other cemetery authorities' endowment care funds may be commingled for investment and the income therefrom shall be divided between the funds in the proportion that each contributed to the sum invested. The funds shall be held in the name of the trustees appointed by the cemetery authority with the words "endowment care fund" being a part of the name.

Endowment care funds shall not be used for any purpose other than to provide, through income only, for the endowment care stipulated in the instrument by which the fund was established.

Endowment care funds shall be used solely for the general care, maintenance, and embellishment of the cemetery, and shall be applied in such manner as the cemetery authority may from time to time determine to be for the best interest of the cemetery.

Only income and not principle from the endowment care funds may be used for the above described cemetery care.

Endowment care funds shall be kept separate and distinct from all assets of the cemetery authority. Endowment care principal shall remain inviolable and may not be reduced in any way not found within chapter 11.100 RCW.

For the purposes of this chapter, the following terms will be construed as follows:

(1) "Board" means the funeral and cemetery board.

(2) "Capital gains" means an increase in principal and is excluded from ordinary income and net ordinary income.

(3) "Cemetery authority" means an entity that has obtained a certificate of authority to operate a cemetery from the funeral and cemetery board.

(4) "Endowment care cemetery" means a cemetery required to establish an endowment care fund in accordance with chapter 68.40 RCW.

(5) "Fiduciary responsibility" means the trustee(s) will manage the endowment care fund in accordance with RCW 11.100.020.

(6) "Gross sales price," in determining "ten percent of the gross sales price" pursuant to RCW 68.40.010, gross sales price shall not include the endowment care fund portion. Endowment care shall be added to the gross sales price and separately identified as endowment care on any contract.

For example: Grave gross sales price - $100.00. Endowment care requirement - $10.00. Total contract price - $110.00.

(7) "Income" means ordinary income, that is, interest, dividends, rents and other amounts received by the fund as current returns on investments, but excludes realized or unrealized capital gains or losses.

(8) "Net ordinary income" means the ordinary income of the fund reduced by the expenses of operating the fund.

(9) "Trustee(s)" means the bank, trust company or persons appointed by the cemetery authority or association of lot owners to hold fiduciary responsibility in managing the endowment care fund in accordance with chapter 68.44 RCW and subject to the direction of the cemetery authority.

Any cemetery authority maintaining an endowment care fund shall maintain a current accounting system in accordance with generally accepted accounting principles. The system shall track sales, receipts, and disbursements and include the following:

(1) An individual contract or agreement with each individual purchasing a right of interment with reference numbering.

(2) A record of:

(a) Payments received and the amount due or paid to the endowment care fund;

(b) Reconciliation of payments to and from the fund; and

(c) All supporting bank and investment statements.

(3) All records required to be maintained pursuant to this rule and Title 68 RCW, whether maintained manually or by computer, shall:

(a) Be retained and available for inspection for a period of seven years; and

(b) Be understandable to the cemetery board examiner or other persons reasonably having cause to access them.

A cemetery authority not exempt per RCW 68.05.400 must make a deposit to the endowment care fund, for scattering, or additional rights of interment, entombment or inurnment, as required in RCW 68.40.010.

In determining the trust fund income for the purpose of RCW 68.44.020 and 68.44.170, an allowance for depreciation on the improved real estate will be used as a determining factor in computing fund income. The cemetery authority must document how depreciation is determined.

All payments received must be deposited directly into the appropriate trust fund and may not be offset by amounts due from the trust prior to deposit. Such deposits must be made on or before the 20th day of the month following receipt of each payment due.

CEMETERIES—ENDOWMENT CARE TOTAL RETURN DISTRIBUTION

For the purposes of this chapter, the following terms will be construed as follows:

(1) "Average fair market value" means the average of the fair market values of assets held by the endowment care fund on the first day of the current fiscal year and the first day of each of the two preceding fiscal years, or the average of the fair market value for the entire term of the fund if there are less than two preceding years.

(2) "Board" means the funeral and cemetery board.

(3) "Cemetery authority" means an entity that has obtained a certificate of authority to operate a cemetery from the funeral and cemetery board.

(4) "Endowment care cemetery" means a cemetery required to establish an endowment care fund in accordance with chapter 68.40 RCW.

(5) "Extraordinary distributions" means distributions from the endowment care fund pursuant to written consent of the board.

(6) "Fair market value" means the fair market value of the assets held by the fund, reduced by all known noncontingent liabilities.

(a) The fair market value of real estate will be established by the county assessor's valuation on the first day of the current fiscal year.

(b) The fair market value of fractional ownership interests in real estate will be determined by generally accepted valuation methods.

(c) The fair market value of the endowment care fund assets that are not publicly traded on a stock or other regulated securities exchange shall be determined by written valuation certified by a qualified independent public appraiser or qualified independent certified public accountant not affiliated with the cemetery authority or its principals within twelve months of the first day of the fiscal year. If the valuation is not provided, the asset(s) will be assigned a zero value for the purpose of determining fair market value.

(7) "Fiduciary responsibility" means the trustee(s) will manage the endowment care fund in accordance with RCW 11.100.020.

(1) An application for implementation of the total return distribution method shall be submitted at least sixty days prior to the effective date of the election to use total return. The cemetery authority shall provide the board with the following:

(a) A written investment and distribution policy in which future distributions from the endowment care fund will be total return distribution amounts rather than net ordinary income distribution amounts. The investment goals shall be to achieve principal growth through investments including, but not limited to, equity investments, as well as achieve current income through investments including, but not limited to, income investments.

(b) An amended endowment care trust agreement to clearly show intent to use the total return distribution method.

(c) A written document establishing the average fair market value signed by the cemetery authority and/or trustee(s), and supporting documents.

(d) Completed application form indicating the total return percentage and signed by the cemetery authority.

(2) The application shall be considered approved unless the cemetery authority or trustee is notified otherwise by the board within thirty days of receipt. Such notification shall contain details of the information needed to remedy any deficiencies in the application.

(3) The maximum total return percentage for the first year will be four percent. The cemetery authority or trustee may submit a written request to the board to modify the total return percentage twelve months after implementation of the total return distribution method.

(4) If the cemetery authority or trustee alters the total return percentage, the cemetery authority or trustee shall send written notice to the board. This notification shall be made before the first distribution is taken based on the new total return percentage and shall contain the revised total return percentage and the reason for the revision.

(5) The trustee shall distribute income to the cemetery authority at least annually or in more frequent installments agreed to by the trustee and the cemetery authority.

(6) A cemetery authority that converts the endowment care fund to a total return fund may elect to reconvert the fund to a net ordinary income fund by submitting written documentation to the board in support of the reconversion at least sixty days before the proposed effective date of the reconversion, including a copy of the trust agreement, notification on the proposed effective date of the reconversion, and any additional information required by the board.

(7) Unless an application and required documents for conversion to the total return distribution method have been received and approved by the board, a cemetery authority or trustee(s) may distribute only the net ordinary income from the endowment care fund for the general care, maintenance, and embellishment of the cemetery.

The cemetery authority or trustee shall calculate the average fair market value of the fund at the beginning of each fiscal year. Appraisal methods and/or sources utilized to determine fair market value to establish the initial value must remain the same in each reporting year.

(1) When calculating the average fair market value, if assets have been added to the fund during the years used to determine the average, the amount of each addition is added to all years in which such addition was not included. If extraordinary distributions were taken during any of the years used to determine the average, the amount of each distribution is subtracted from all years in which the distribution was not included.

(2) The cemetery authority or trustee shall exclude from the fair market value calculations any asset for which the fair market value cannot be established.

(3) The cemetery authority or trustee shall use the fair market value to calculate the average fair market value.

(1) The board may take corrective measures including reducing the total return percentage under one or more of the following circumstances:

(a) If the average fair market value of the endowment care fund declines by ten percent or more over a two-year period;

(b) The fair market value of the fund at the beginning of a fiscal year is less than eighty percent of the fair market value of the fund the first day of the fiscal year when the endowment care fund started making distributions based on the total return distribution method; or

(c) There is an uncorrected endowment care deficiency as determined by the board's audit of the endowment care funds.

(2) The board may evaluate the endowment care fund conditions and choose not to impose corrective measures if it finds that:

(a) The reasons are due to unusual or temporary factors not within the control of the cemetery authority or the trustee and which could not have been reasonably anticipated;

(b) The current investment policy of the fund is reasonably designed to protect the fund from further declines in fair market value; or

(c) The exception appears to be both necessary and appropriate for the continued protection of the endowment care fund.

(3) The cemetery authority or trustee(s) shall not utilize the total return distribution method for part of the endowment care assets and concurrently distribute net income for part of the endowment care assets. Endowment care distributions may only be taken as net ordinary income or the total return distribution method.

(1) In the event that the fees paid by the endowment care fund exceed one percent of the average fair market value, the amount in excess of one percent shall be paid from the distribution.

(2) Taxes may be paid from the corpus.

The cemetery authority will provide the board with a report that includes the average fair market value used to determine distribution for the following year and maintain a record of the fair market value each year while using the total return distribution method.

As part of the cemetery endowment care annual report required by RCW 68.05.180 and 68.05.235, cemetery authorities approved to use the total return distribution method must file an addendum to the annual report which details the following:

(1) The asset allocation;

(2) The annual distribution to the cemetery authority;

(3) Any changes to the investment and distribution policy;

(4) Calculation of the average fair market value to determine the current year's distribution and supporting documents; and

(5) Any other information the board deems pertinent.

CEMETERIES PREARRANGEMENT CONTRACTS

Any cemetery authority selling by prearrangement contracts any merchandise or services shall establish and maintain one or more prearrangement trust funds for the benefit of beneficiaries of prearrangement contracts.

All definitions of chapter 68.46 RCW apply to this chapter. In addition, the following definition applies:

"Direct cost" for the purpose of chapter 68.46 RCW, direct cost includes actual labor cost and other costs associated with delivery of the service. For example: Direct cost of providing an opening and closing may include labor, materials, fuel, equipment maintenance, and a share of overhead including benefits and insurance.

In addition to all other requirements of the law relating to consumer contracts, cemetery prearrangement contracts must have:

(1) A specific itemization of charges and descriptions for each merchandise or service to be furnished or delivered.

(2) An itemization of services to be performed on delivered merchandise such as marker installation and care.

(3) An itemization of charges and descriptions for each grave niche or crypt sold with endowment care listed separately.

All payments received must be deposited directly into the appropriate trust fund and may not be offset by amounts due from the trust prior to deposit. Such deposits must be made on or before the 20th day of the month following receipt of each payment due.

All cemetery prearrangement contracts must state on the contract what form or forms of delivery of merchandise will constitute "delivery" to satisfy the requirements of RCW 68.46.050.

Prearrangement services, including shipment and installation of cemetery prearrangement merchandise, shall not be deemed to have been furnished within the meaning of RCW 68.46.050(1) until performance of such services has actually occurred.

Cemetery prearrangement merchandise and services will be delivered within the meaning of RCW 68.46.050(1) when:

(1) Actual delivery of the merchandise is made to the contract beneficiary;

(2) Delivery of the merchandise is made to the cemetery authority for the contract beneficiary and the merchandise is permanently affixed to real property, columbarium or mausoleum; or

(3) Delivery of the merchandise to the cemetery authority for the contract beneficiary with the storage provided by the cemetery authority, provided:

(a) That fifty percent of the service charge of the installation and other services to be performed upon the merchandise is maintained in the prearrangement trust fund; and

(b) An insurance provision is maintained when merchandise is stored in a building or on cemetery grounds.

(4) The cemetery authority has paid its supplier for prearrangement merchandise, and the supplier has caused the merchandise to be manufactured and stored, and has caused title to the merchandise to be transferred to the contract beneficiary, and has agreed to ship the merchandise upon his request or the request of the cemetery authority; provided:

(a) That fifty percent of the service charge of delivery, installation and other costs are maintained in the prearrangement trust fund by the cemetery authority. The delivery and installation cost must be itemized on the prearrangement contract, in accordance with WAC 308-51B-020.

(b) This subsection will apply to the manufacture and storage of merchandise such as, but not limited to, vaults, liners, urns and marker bases.

No person, firm or corporation will be deemed a supplier for purposes of this chapter, unless it:

(1) Permanently and unalterably identifies all merchandise with the name of the contract beneficiary;

(2) Submits, upon request of the board, a report of all merchandise which has been purchased through a Washington cemetery authority and has been placed in storage;

(3) Permits the board or its designee, at any time, to examine stored merchandise which was purchased through a Washington cemetery authority and to examine any document pertaining thereto;

(4) Submits evidence of a bond ensuring the existing and good title of any merchandise due any contract beneficiary purchased through a Washington cemetery authority; and

(5) Submits evidence ensuring that all merchandise purchased through a Washington cemetery authority and being stored by the supplier is insured for casualty, theft or other loss.

Subsection (1) of this section will not apply to merchandise that is manufactured and stored without being permanently labeled or engraved with the beneficiaries' name. Suppliers must maintain an inventory equal to the amount sold.

In any instance where a prearrangement contract containing undelivered merchandise or services is sold, pledged, or otherwise encumbered as security for a loan by cemetery authority, the cemetery authority shall pay into the prearrangement trust fund fifty percent of the total sale price of the prearrangement contract within twenty days of receipt of payment of the proceeds from the sale or loan.

(1) Any cemetery authority selling undeveloped graves, unconstructed crypts or niches in accordance with chapter 68.46 RCW must make available to the purchaser a statement of the estimated completion date of the development or construction at the time the prearrangement contract is signed.

(2) The estimated completion date must also:

(a) Be submitted to the cemetery board annually with the financial reports required by RCW 68.46.090.

(b) Be made available to holders of prearrangement contracts affected by the development or construction in the offices of the cemetery authority.

(3) A cemetery authority must maintain an equivalent inventory of constructed crypts, niches and developed graves, equal to ten percent of the unconstructed crypts, niches and undeveloped graves sold through prearrangement contracts. The equivalent inventory must be located within the cemetery or an adjacent cemetery under common ownership.

(4) Trust fund deposits required for the prearrangement contract sales of undeveloped property, will be in accordance with RCW 68.46.030.

Any cemetery authority maintaining a prearrangement trust fund shall maintain a current accounting system in accordance with generally accepted accounting principles. The system shall track sales, receipts and disbursements, and include the following:

(1) An individual contract or agreement with each individual establishing a prearrangement trust agreement.

(2) A record of payments received and the amount due or paid to the prearrangement trust fund.

(3) Reconciliation of payments to and from the fund.

(4) All supporting bank and investment statements.

(5) Documentation to verify all other assets of the prearrangement trust.

(6) All records required to be maintained pursuant to this rule and Title 68 RCW, whether maintained manually or by computer, shall:

(a) Be retained and available for inspection for a period of seven years.

(b) Be understandable to the cemetery board examiner or other persons reasonably having cause to access them.

To qualify as an applicant for a prearrangement sales license as set forth in RCW 68.05.155 and 68.46.150, applicant must hold a valid and unsuspended certificate of authority to operate a cemetery issued by the state funeral and cemetery board.

(1) The use of telephones for solicitation of prearrangements is prevalent. This form of communication offers unique benefits, but entails special risk and poses potential for abuse. The board finds that any impropriety in telephone solicitation is a matter vitally affecting the public interest. For the general welfare of the public and in order to protect the integrity of the cemetery industry, the use of telephones in solicitation of prearrangements must be defined by the board.

(2) Definitions:

(a) "Telephone solicitation" means an unsolicited telephone call to a person and conversation for the purpose of inducing the person to make cemetery prearrangements made without previous invitation, expressed or implied, by the person called.

(b) "Telephone solicitor" means any person who engages in telephone solicitation on behalf of a holder of a certificate of authority to operate.

(3) Time limits:

(a) No licensee may knowingly cause a telephone solicitation to be made to any person more often than once in every six months.

(b) A telephone solicitor shall not place calls which will be received before 8:00 a.m. or after 9:00 p.m.

(4) Unfair/deceptive practices. A telephone solicitor may not engage in any conduct the natural consequence of which is to harass, intimidate, or torment any person in connection with the telephone call.

(5) Identification. Within the first thirty seconds of the telephone call, a telephone solicitor or salesperson shall:

(a) Identify themselves, the company on whose behalf the solicitation is being made, the property, goods, or services being represented; and

(b) Terminate the telephone call within ten seconds if the purchaser indicates they do not wish to continue the conversation.

(6) Termination of contact. If at any time during the telephone contact, the purchaser states or indicates that they do not wish to be called again by the telephone solicitor or wants to have their name and individual telephone number removed from the telephone lists used by the telephone solicitor, the telephone solicitor shall not make any additional telephone solicitation of the called party at that telephone number within a period of at least one year.

(7) Enforcement. In the event that the board discerns a pattern of violation of these standards the board may act against the licensee's prearrangement license as provided by Title 68 RCW.

A hybrid unit shall mean any combination "casket-vault" that is designed, intended, or represented to function as a substitute for a casket and/or a vault, or intended to serve the same purpose as a casket or a vault or in lieu thereof.

Hybrid units specified as cemetery merchandise or services in cemetery prearrangement contracts must be itemized, and must disclose and describe all items of support or services which are required or may be required for the future or intended use of hybrid units. "Support or service" as used herein means any function, activity, or object, and their availability, required or that may be required to meet a buyer's expectations for necessary cemetery merchandise or services and/or funeral merchandise or services. Whether items of support or services are included in the immediate purchase price or are reserved for future sale at the time of need, must be clearly set forth in the cemetery prearrangement contract, and in all advertising or representations pertaining to preneed or prearrangement contract sales of hybrid units.

ABANDONED CEMETERIES

The definitions found in chapters 68.04 and 68.60 RCW apply to this section.

(1) Human remains or reduced human remains may be buried in an abandoned cemetery under the following conditions:

(a) Ownership of the plot, right of interment or vested right of placement can be clearly established pursuant to chapter 68.32 RCW;

(b) The person(s) having the right to control disposition per RCW 68.50.160 has documentation issued by the cemetery authority prior to the date of abandonment establishing ownership of the plot, right of interment or vested right of placement for the human remains to be buried; or

(c) When a court of competent jurisdiction finds that there is sufficient evidence of ownership, right of interment or vested right of placement and issues a court order.

(2) The person(s) having the right to control disposition must follow the requirements found in RCW 70.58.230 through 70.58.260 prior to the burial of human remains.

(3) Human remains may be removed from an abandoned cemetery with the permission of the superior court of the county where the cemetery is situated and a disinterment permit per RCW 70.58.230.

(4) The person(s) having the right to control disposition may place a grave marker on the grave of human remains buried in an abandoned cemetery and may do all things commonly allowed on dedicated cemetery property.

(5) The person(s) having the right to control disposition must provide a record of the burial to the department of archaeology and historic preservation.