WSR 97-16-061

PROPOSED RULES

DEPARTMENT OF LICENSING

(Board of Funeral Directors and Embalmers)

[Filed August 1, 1997, 10:50 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 95-22-004.

Title of Rule: Prearrangement funeral service trust agreement requirements.

Purpose: To delete WAC 308-49-162 and amend WAC 308-49-164 so that one rule covers all requirements for prearrangement funeral service trust agreements.

Statutory Authority for Adoption: RCW 18.39.175(4).

Statute Being Implemented: Chapter 18.39 RCW.

Reasons Supporting Proposal: It is not necessary to have separate rules for "master" trust agreements and prearrangement funeral service trust agreements. This rule will delete WAC 308-49-162 and amend WAC 308-49-164 so that one rule covers all requirements for prearrangement funeral service trust agreements.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jon Donnellan, Administrator, Department of Licensing, 405 Black Lake Boulevard, Olympia, (360) 586-4905.

Name of Proponent: Board of Funeral Directors and Embalmers, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-49-162 and 308-49-164 are similar in nature, WAC 308-49-162 pertaining to master trust agreement requirements and 308-49-164 pertaining to trust agreement requirements for those firms which are not in a master trust. The proposed rule is intended to combine the two rules as only one rule dealing with all prearrangement funeral service trust agreement requirements is necessary.

Proposal Changes the Following Existing Rules: WAC 308-49-162 and 308-49-164 will be combined into one rule by deleting WAC 308-49-162 and amending WAC 308-49-164 to include any provisions from WAC 308-49-162 which need to be retained.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule does not change the requirements; it simply incorporates two rules into one.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. Department of Licensing is exempt from this statute.

Hearing Location: Holiday Inn (Ballroom "C"), 800 Rainier Avenue South, Renton, WA 98055, (425) 226-7700, on September 18, 1997, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Jon Donnellan by telephone, TDD (360) 586-2788, or (360) 586-4905.

Submit Written Comments to: Jon Donnellan, Administrator, Funeral and Cemetery Unit, P.O. Box 9012, Olympia, WA 98507-9012, (360) 586-4905, FAX (360) 664-2550, by September 11, 1997.

Date of Intended Adoption: September 18, 1997.

August 1, 1997

Jon Donnellan

Administrator

AMENDATORY SECTION (Amending WSR 90-17-148, filed 8/22/90, effective 9/22/90)

WAC 308-49-164 Prearrangement funeral service trust agreement requirements. (1) Each establishment entering into prearrangement funeral service contracts which does not use insurance as a method of funding shall establish one or more prearrangement funeral service trust agreements. The establishment may join with one or more other Washington state licensed funeral establishments in a "master trust."

(2) Such prearrangement funeral service trust agreements shall be between the funeral establishment and trustees designated by the funeral establishment. The agreement shall include language that provides for:

(a) ((Number and appointment)) A minimum of two trustees;

(b) Duties and responsibilities of the trustees;

(c) Method of removal of trustees;

(d) Selection of depository(ies);

(e) Procedures to be followed when the establishment deposits prearrangement funeral service contract moneys;

(f) Conditions under which moneys may be withdrawn from the trust and procedures to be followed in making withdrawals;

(g) Details as to investment and administration of the trust;

(h) Compensation of trustees and expenses to be incurred;

(i) Accounting methods to be used;

(j) Provisions for amendment and termination of the trust agreement.

(3) Such prearrangement funeral service trust agreements are an integral part of the prearrangement funeral service contract and shall be approved by the board prior to use. Amendments, changes to the trust agreement, or termination of the trust agreement shall receive prior approval from the board before incorporation of amendment or change, or implementation of termination.

[Statutory Authority: RCW 18.39.175(4). 90-17-148, 308-49-164, filed 8/22/90, effective 9/22/90.]

REPEALER

The following section of the Washington Administrative Code is repealed: