AN ACT Relating to funeral directors; amending RCW 18.39.035, 18.39.045, 18.39.070, 18.39.100, 18.39.120, 18.39.173, and 18.39.250; reenacting and amending RCW 18.39.150 and 18.39.175; adding a new section to chapter 18.39 RCW; and repealing RCW 18.39.181.

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

Sec. 1. 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 examinations and what constitutes successful passage. The board may use the assistance of a private testing agency or association of licensing boards for the preparation and administration of the examinations. The board may allow any portion of the course of instruction in a school of mortuary science to be applied towards satisfaction of the two-year college course required under subsection (2) of this section.

Sec. 2. 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. In completing the two-year college course required under this section, the board may, by rule, require the successful completion of specific classes.

(((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. 3. 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 establish procedures relating to the submission and processing of applications for, and scheduling of, examinations required under this chapter.

Sec. 4. Section 7, chapter 108, Laws of 1937 and RCW 18.39.100 are each amended to read as follows:

Every license issued ((~~hereunder~~)) under this chapter shall specify the name of the person to whom it is issued((~~, shall bear the signature of the licensee for identification purposes,~~)) and shall be displayed conspicuously in his place of business. No license shall be assigned, and not more than one person shall carry on the profession or business of funeral directing or embalming under one license.

Sec. 5. Section 10, chapter 108, Laws of 1937 as last amended by section 38, chapter 7, Laws of 1985 and RCW 18.39.120 are each amended to read as follows:

Every person engaged in the business of funeral directing or embalming, who employs an apprentice to assist in the conduct of the business, shall register the name of each apprentice with the director at the beginning of the apprenticeship, and shall also forward notice of the termination of the apprenticeship. The registration shall be renewed annually and shall expire on the anniversary of the apprentice's birthdate. Fees determined under RCW 43.24.086 shall be paid for the initial registration of the apprentice, and for each annual renewal. The uniform disciplinary act, chapter 18.130 RCW, governs the registration and denial of registration, and the discipline of registered apprentices under this chapter.

Sec. 6. Section 8, chapter 108, Laws of 1937 as last amended by section 41, chapter 7, Laws of 1985 and by section 63, chapter 259, Laws of 1986 and RCW 18.39.150 are each reenacted and amended to read as follows:

Any licensed funeral director or embalmer whose license has lapsed shall reapply for a license and pay a fee as determined under RCW 43.24.086 before the license may be issued. If the application((~~s under this section shall be~~)) is made within ((~~one~~)) three years ((~~after~~)) of the expiration of the previous license((~~. If the application is not made within one year~~)), the applicant may be reinstated upon written application and payment of all delinquent fees and penalty fee. In the event a license has lapsed for a period longer than three years, the licensee shall be required to take an examination ((~~or submit other satisfactory proof of continued competency approved by the board and~~)), pay the ((~~license~~)) examination fee((~~, as required by this chapter in the case of initial applications, together with~~)) and all unpaid license fees and penalties.

Sec. 7. 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~~)) the 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. No member shall be appointed for more than two successive full terms. 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. 8. Section 9, chapter 93, Laws of 1977 ex. sess. as last amended by section 6, chapter 402, Laws of 1985 and by section 64, chapter 259, Laws of 1986 and RCW 18.39.175 are each reenacted and amended to read as follows:

Each member of the board of funeral directors and embalmers shall be compensated in accordance with RCW 43.03.240 and shall be reimbursed for travel expenses in connection with board duties in accordance with RCW 43.03.050 and 43.03.060.

The state board of funeral directors and embalmers shall have the following duties and responsibilities:

(1) To be responsible for the preparation, conducting, and grading of examinations of applicants for funeral director and embalmer licenses;

(2) To certify to the director the results of examinations of applicants and certify the applicant as having "passed" or "failed";

(3) To make findings and recommendations to the director on any and all matters relating to the enforcement of this chapter;

(4) To adopt, promulgate, and enforce reasonable rules. Rules regulating the cremation of human remains ((~~and establishing fees~~)) and permit requirements shall be adopted in consultation with the cemetery board; and

(5) To examine or audit or to direct the examination and audit of prearrangement funeral service trust fund records for compliance with this chapter and rules adopted by the board.

(6) To conduct disciplinary proceedings under chapter 18.130 RCW if the licensee has violated that chapter or has committed unprofessional conduct, which includes:

(a) Solicitation of human dead bodies by the licensee, his agents, assistants or employees, whether the solicitation occurs after death or while death is impending. This chapter does not prohibit general advertising or the sale of pre-need funeral plans;

(b) Employment by the licensee of persons known as "cappers," "steerers," or "solicitors" or other persons to obtain funeral directing or embalming business;

(c) Employment directly or indirectly of any person for the purpose of calling upon individuals or institutions by whose influence dead human bodies may be turned over to a particular funeral director or embalmer;

(d) The buying of business by the licensee, his agents, assistants or employees, or the direct or indirect payment or offer of payment of a commission by the licensee, his agents, assistants, or employees, for the purpose of securing business;

(e) Solicitation or acceptance by a licensee of any commission or bonus or rebate in consideration of recommending or causing a dead human body to be disposed of in any crematory, mausoleum, or cemetery;

(f) Using any casket or part of a casket which has previously been used as a receptacle for, or in connection with, the burial or other disposition of a dead human body without the written consent of next of kin;

(g) Violation of any state law or municipal or county ordinance or regulation affecting the handling, custody, care, or transportation of dead human bodies;

(h) Refusing to promptly surrender the custody of a dead human body upon the express order of the person lawfully entitled to its custody;

(i) Selling, or offering for sale, a share, certificate, or an interest in the business of any funeral director or embalmer, or in any corporation, firm, or association owning or operating a funeral establishment, which promises or purports to give to purchasers a right to the services of the funeral director, embalmer, or corporation, firm, or association at a charge or cost less than that offered or given to the public; or

(j) Knowingly concealing information concerning a violation of this chapter;

(7) To adopt rules ((~~establishing~~)) setting forth the requirements, if any, of mandatory continuing education ((~~requirements to be met by~~)) for persons applying for license renewal.

Sec. 9. 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.

(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 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; or

(b) If the funeral establishment files a verified statement with the depositary that the prearrangement funeral merchandise and services covered by the contract have been canceled in accordance with its terms.

(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.

(10) The board shall examine the prearrangement trust funds whenever it deems it necessary, but at least once every three years, or whenever the licensee fails after reasonable notice from the board to file the reports required by this chapter or by the board.

The expense of the prearrangement trust fund examination 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.

NEW SECTION. Sec. 10. A new section is added to chapter 18.39 RCW to read as follows:

In addition to any other authority provided by law, the director shall have the following authority:

(1) To set all fees required in this chapter in accordance with RCW 43.24.086;

(2) To establish forms necessary to administer this chapter;

(3) To issue a license to any applicant who has met the education, training, and examination requirements for licensure and deny a license to applicants who do not meet the minimum qualifications for licensure, except that proceedings concerning the denial of licenses based on unprofessional conduct or impaired practice shall be governed by the uniform disciplinary act, chapter 18.130 RCW.

(4) To employ clerical, administrative, and investigative staff as needed to implement and administer this chapter and to employ individuals including those licensed under this chapter to serve as examiners or consultants as necessary to implement and administer this chapter.

(5) To maintain the official department record of all applicants and licensees.

(6) To implement and administer a program for consumer education.

NEW SECTION. Sec. 11. Section 5, chapter 93, Laws of 1977 ex. sess., section 13, chapter 43, Laws of 1981, section 65, chapter 259, Laws of 1986 and RCW 18.39.181 are each repealed.