WSR 97-21-064

PERMANENT RULES

DEPARTMENT OF LICENSING

(Board of Funeral Directors and Embalmers)

[Filed October 14, 1997, 10:16 a.m.]

Date of Adoption: September 18, 1997.

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

Citation of Existing Rules Affected by this Order: Repealing WAC 308-49-162; and amending WAC 308-49-164.

Statutory Authority for Adoption: RCW 18.39.175(4).

Adopted under notice filed as WSR 97-16-061 on August 1, 1997.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, amended 1, repealed 1.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: Thirty-one days after filing.

September 18, 1997

Merrie Burley

Chairman

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(f) Conditions under which moneys may be withdrawn from the trust and procedures to be followed in making withdrawals;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