USA Statutes : washington
Title : Businesses and professions
Chapter : Embalmers -- Funeral directors
RCW 18.39.240Prearrangement funeral service contracts License required.Only a funeral establishment licensed pursuant to this chapter may enter into prearrangement funeral service contracts.[1989 c 390 § 2; 1982 c 66 § 2.]Notes:Effective dates -- 1982 c 66: "This act shall take effect on September 1, 1982, with the exception of sections 20, 21, and 22 of this act, which are necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately [March 26, 1982]." [1982 c 66 § 24.]Transfer of records, files, and pending business -- 1982 c 66: "(1) All records, files, reports, papers, or other written material in the possession of the insurance commissioner pertaining to the regulation of prepaid funeral expenses shall be delivered to the director of licensing on the effective date of this act.  (2) All business or matters concerning prepaid funeral expenses pending before the insurance commissioner shall be transferred to the director of licensing and assumed by the director on the effective date of this act." [1982 c 66 § 17.]Savings -- 1982 c 66: "The transfer of duties under sections 2 through 14 of this act shall not affect the validity of any rule, action, decision promulgated or held prior to the effective date of this act." [1982 c 66 § 18.] RCW 18.39.360Fraternal or benevolent organizations and labor unions excepted.This chapter does not apply to any funeral right or benefit issued or granted as an incident to or by reason of membership in any fraternal or benevolent association or cooperative or society, or labor union not organized for profit.[1989 c 390 § 12; 1982 c 66 § 14.]Notes:Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.020License required.It is unlawful for any person to act or hold himself or herself out as a funeral director or embalmer or discharge any of the duties of a funeral director or embalmer as defined in this chapter unless the person has a valid license under this chapter. It is unlawful for any person to establish, maintain, or operate a funeral establishment without a valid establishment license.[2005 c 365 § 2; 1987 c 150 § 30; 1981 c 43 § 2; 1937 c 108 § 2; RRS § 8314-1. Prior: 1909 c 215 § 1. Formerly RCW 18.39.020 and 18.39.110.]Notes:Severability -- 1987 c 150: See RCW 18.122.901. RCW 18.39.035Applicant for license as funeral director or embalmer Eligibility.(1) An applicant for a license as a funeral director shall be at least eighteen years of age and must have obtained an associate of arts degree in mortuary science or 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 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 this chapter.  (2) An applicant for a license as an embalmer must be at least eighteen years of age and have obtained an associate of arts degree in mortuary science or completed a course of instruction in an accredited mortuary science college program and other college courses that total sixty semester hours or ninety quarter hours, completed a two-year course of training under a licensed embalmer in this state, and have passed 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 this chapter.[2005 c 365 § 3; 1996 c 217 § 1; 1981 c 43 § 3.] RCW 18.39.050Application Renewal Fees.Every application for an initial license or a license renewal under this chapter shall be made in writing on a form prescribed by the director with such information as the director requires. The director shall set license fees in accordance with RCW 43.24.086.[1985 c 7 § 37; 1982 c 66 § 21; 1981 c 43 § 5; 1975 1st ex.s. c 30 § 42; 1971 ex.s. c 266 § 8; 1937 c 108 § 6; RRS § 8318-1. Formerly RCW 18.39.050, 18.39.060, and 18.39.140.]Notes:Effective dates -- 1982 c 66: See note following RCW 18.39.240. RCW 18.39.175Board Duties and responsibilities Compensation Travel expenses Rules.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 board 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 and enforce reasonable rules. Rules regulating the cremation of human remains shall be adopted in consultation with the cemetery board;  (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; and  (6) To adopt rules establishing mandatory continuing education requirements to be met by persons applying for license renewal.[2005 c 365 § 14; 1996 c 217 § 6; 1994 c 17 § 1. Prior: 1986 c 259 § 64; 1985 c 402 § 6; 1984 c 287 § 34; 1984 c 279 § 53; 1981 c 43 § 11; 1977 ex.s. c 93 § 9.]Notes:Savings -- 1986 c 259 §§ 64, 73: "The repeal of RCW 18.39.179 and the amendment of RCW 18.39.175 by this act shall not be construed as affecting any rights and duties which matured, penalties which were incurred, and proceedings which were begun before June 11, 1986." [1986 c 259 § 74.]Severability -- 1986 c 259: See note following RCW 18.130.010.Legislative finding -- 1985 c 402: See note following RCW 68.50.185.Legislative findings -- Severability -- Effective date -- 1984 c 287: See notes following RCW 43.03.220.Severability -- 1984 c 279: See RCW 18.130.901. RCW 18.39.250Prearrangement contracts Trusts Refunds.(1) Any funeral establishment selling funeral merchandise or services by prearrangement funeral service contract and accepting moneys therefore shall establish and maintain one or more prearrangement funeral service trusts under Washington state law with two or more designated trustees, for the benefit of the beneficiary of the prearrangement funeral service contract. Funeral establishments may join with one or more other Washington state licensed funeral establishments in a "master trust" provided that each member of the "master trust" shall comply individually with the requirements of this chapter.  (2) Up to ten percent of the cash purchase price of each prearrangement funeral service contract, excluding sales tax, may be retained by the funeral establishment unless otherwise provided in this chapter. If the prearrangement funeral service contract is canceled within thirty calendar days of its signing, then the purchaser shall receive a full refund of all moneys paid under the contract.  (3) At least ninety percent of the cash purchase price of each prearrangement funeral service contract, paid in advance, excluding sales tax, shall be placed in the trust established or utilized by the funeral establishment. Deposits to the prearrangement funeral service trust shall be made not later than the twentieth day of the month following receipt of each payment made on the last ninety percent of each prearrangement funeral service contract, excluding sales tax.  (4) All prearrangement funeral service trust moneys shall be deposited in an insured account in a public depositary or shall be invested in instruments issued or insured by any agency of the federal government. The account or investments shall be designated as the prearrangement funeral service trust of the funeral establishment for the benefit of the beneficiaries named in the prearrangement funeral service contracts. The prearrangement funeral service trust shall not be considered as, or used as, an asset of the funeral establishment.  (5) After deduction of reasonable fees for the administration of the trust, taxes paid or withheld, or other expenses of the trust, all interest, dividends, or growth earned by a trust shall become a part of the trust. Adequate records shall be maintained to allocate the share of principal and interest to each contract. Fees deducted for the administration of the trust shall not exceed one percent per year of the amount in trust. In no instance shall the administrative charges deducted from the prearrangement funeral service trust reduce, diminish, or in any other way lessen the value of the trust so that the services or merchandise provided for under the contract are reduced, diminished, or in any other way lessened.  (6) Except as otherwise provided in this chapter, the trustees of a prearrangement funeral service trust 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 trustees 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 trustees that the prearrangement funeral merchandise and services covered by the contract have been canceled in accordance with its terms.  (7) Subsequent to the thirty calendar day cancellation period provided for in this chapter, any purchaser or beneficiary who has a revocable prearrangement funeral service contract has the right to demand a refund of the amount in trust.  (8) Prearrangement funeral service contracts which have or should have an account in a prearrangement funeral service trust may be terminated by the board if the funeral establishment goes out of business, becomes insolvent or bankrupt, makes an assignment for the benefit of creditors, has its prearrangement funeral service certificate of registration revoked, or for any other reason is unable to fulfill the obligations under the contract. In such event, or upon demand by the purchaser or beneficiary of the prearrangement funeral service contract, the funeral establishment shall refund to the purchaser or beneficiary all moneys deposited in the trust and allocated to the contract unless otherwise ordered by a court of competent jurisdiction. The purchaser or beneficiary may, in lieu of a refund, elect to transfer the prearrangement funeral service contract and all amounts in trust to another funeral establishment licensed under this chapter which will agree, by endorsement to the contract, to be bound by the contract and to provide the funeral merchandise or services. Election of this option shall not relieve the defaulting funeral establishment of its obligation to the purchaser or beneficiary for any amounts required to be, but not placed, in trust.  (9) Prior to the sale or transfer of ownership or control of any funeral establishment which has contracted for prearrangement funeral service contracts, any person, corporation, or other legal entity desiring to acquire such ownership or control shall apply to the director in accordance with RCW 18.39.145. Persons and business entities selling or relinquishing, and persons and business entities purchasing or acquiring ownership or control of such funeral establishments shall each verify and attest to a report showing the status of the prearrangement funeral service trust or trusts on the date of the sale. This report shall be on a form prescribed by the board and shall be considered part of the application for a funeral establishment license. In the event of failure to comply with this subsection, the funeral establishment shall be deemed to have gone out of business and the provisions of subsection (8) of this section shall apply.  (10) Prearrangement funeral service trust moneys 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 moneys as collateral or other security.  (11)(a) If, at the time of the signing of the prearrangement funeral service contract, the beneficiary of the trust is a recipient of public assistance as defined in RCW 74.04.005, or reasonably anticipates being so defined, the contract may provide that the trust will be irrevocable. If after the contract is entered into, the beneficiary becomes eligible or seeks to become eligible for public assistance under Title 74 RCW, the contract may provide for an election by the beneficiary, or by the purchaser on behalf of the beneficiary, to make the trust irrevocable thereafter in order to become or remain eligible for such assistance.  (b) The department of social and health services shall notify the trustee of any prearrangement service trust that the department has a claim on the estate of a beneficiary for long-term care services. Such notice shall be renewed at least every three years. The trustees upon becoming aware of the death of a beneficiary shall give notice to the department of social and health services, office of financial recovery, who shall file any claim there may be within thirty days of the notice.  (12) Every prearrangement funeral service contract financed through a prearrangement funeral service trust shall contain language which:  (a) Informs the purchaser of the prearrangement funeral service trust and the amount to be deposited in the trust;  (b) Indicates if the contract is revocable or not in accordance with subsection (11) of this section;  (c) Specifies that a full refund of all moneys paid on the contract will be made if the contract is canceled within thirty calendar days of its signing;  (d) Specifies that, in the case of cancellation by a purchaser or beneficiary eligible to cancel under the contract or under this chapter, up to ten percent of the contract amount may be retained by the seller to cover the necessary expenses of selling and setting up the contract;  (e) Identifies the trust to be used and contains information as to how the trustees may be contacted.[2005 c 365 § 21; 1996 c 217 § 8; 1995 1st sp.s. c 18 § 62; 1989 c 390 § 3; 1982 c 66 § 3.]Notes:Conflict with federal requirements -- Severability -- Effective date -- 1995 1st sp.s. c 18: See notes following RCW 74.39A.030.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.260Prearrangement contracts Certificates of registration required Exception.A funeral establishment shall not enter into prearrangement funeral service contracts in this state unless the funeral establishment has obtained a certificate of registration issued by the board and such certificate is then in force.  Certificates of registration shall be maintained by funeral establishments and the funeral establishment shall comply with all requirements related to the sale of prearrangement contracts until all obligations have been fulfilled. The board may, for just cause, release a funeral establishment from specific registration or reporting requirements.[1989 c 390 § 5; 1986 c 259 § 67; 1982 c 66 § 4.]Notes:Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.270Prearrangement contracts Registration qualifications.To qualify for and hold a certificate of registration, a funeral establishment must:  (1) Be licensed pursuant to this chapter; and  (2) Fully comply with and qualify according to the provisions of this chapter.[1982 c 66 § 5.]Notes:Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.280Prearrangement contracts Application for registration.To apply for an original certificate of registration, a funeral establishment must:  (1) File with the board its request showing:  (a) Its name, location, and organization date;  (b) The kinds of funeral business it proposes to transact;  (c) A statement of its financial condition, management, and affairs on a form satisfactory to or furnished by the board;  (d) Documents establishing its trust, or its affiliation with a master trust, and the names and addresses of the trustees if a trust is to be used to finance prearrangement funeral service contracts;  (e) Documents establishing its relationship with insurance carriers if insurance is to be used to finance;  (f) Documents establishing any other financing relationships; and  (g) Such other documents, stipulations, or information as the board may reasonably require to evidence compliance with the provisions of this chapter.  (2) Deposit with the director the fees required by this chapter to be paid for filing the accompanying documents, and for the certificate of registration, if granted.[1989 c 390 § 6; 1986 c 259 § 68; 1982 c 66 § 7.]Notes:Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240.Fees: RCW 18.39.290. RCW 18.39.290Prearrangement contracts Registration Renewal Fees Disposition.All certificates of registration issued pursuant to this chapter shall continue in force until the expiration date unless suspended or revoked. A certificate shall be subject to renewal annually ninety days after the end of its fiscal year, as stated on the original application, by the funeral establishment and payment of the required fees.  The director shall determine and collect fees related to certificate of registration licensure.  All fees so collected shall be remitted by the director to the state treasurer not later than the first business day following receipt of such funds and the funds shall be credited to the funeral directors and embalmers account.[1993 c 43 § 1; 1986 c 259 § 69; 1982 c 66 § 8.]Notes:Effective date of 1993 c 43 -- 1993 sp.s. c 24: "Chapter 43, Laws of 1993 is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993." [1993 sp.s. c 24 § 931.]Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.300Grounds for disciplinary action.In addition to the grounds for action set forth in RCW 18.235.130, the board may take the disciplinary action set forth in RCW 18.235.110 against the funeral establishment's license, the license of any funeral director and/or the funeral establishment's certificate of registration, if the licensee or registrant:  (1) Fails to comply with any provisions of this chapter or any proper order or regulation of the board;  (2) Is found by the board to be in such condition that further execution of prearrangement contracts could be hazardous to purchasers or beneficiaries and the people of this state;  (3) Refuses to be examined, or refuses to submit to examination by the board when required;  (4) Fails to pay the expense of an examination; or  (5) Is found by the board after investigation or receipt of reliable information to be managed by persons who are incompetent or untrustworthy or so lacking in managerial experience as to make the proposed or continued execution or servicing of prearrangement funeral service contracts hazardous to purchasers, beneficiaries, or to the public.[2002 c 86 § 219; 1989 c 390 § 7; 1986 c 259 § 70; 1982 c 66 § 6.]Notes:Effective dates -- 2002 c 86: See note following RCW 18.08.340.Part headings not law -- Severability -- 2002 c 86: See RCW 18.235.902 and 18.235.903.Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.320Prearrangement contracts Annual financial statement Failure to file.(1) Each funeral establishment which has prearrangement funeral service contracts outstanding shall annually, as required by the board, file with the board a true and accurate statement of its financial condition and transactions and affairs involving prearrangement funeral service contracts for its preceding fiscal year. The statement shall be on such forms and shall contain such information as required by this chapter and by the board.  (2) The board shall take disciplinary action against the certificate of registration of any funeral establishment which fails to file its annual statement when due or after any extension of time which the board has, for good cause, granted.[1989 c 390 § 8; 1986 c 259 § 71; 1982 c 66 § 10.]Notes:Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.330Prearrangement contract forms Approval required Grounds for disapproval.No prearrangement funeral contract forms shall be used without the prior approval of the board.  The board shall disapprove any such contract form, or withdraw prior approval, when such form:  (1) Violates or does not comply with this chapter;  (2) Contains or incorporates by reference any inconsistent, ambiguous or misleading clauses, or exceptions and conditions which unreasonably or deceptively affect the merchandise or service purported to be provided in the general coverage of the contract;  (3) Has any title, heading, or other part of its provisions which is misleading;  (4) Is being solicited by deceptive advertising;  (5) Fails to disclose fully the terms of the funeral service being provided by the contract, including but not limited to, any discounts, guarantees, provisions for merchandise or service substitutions or other significant items; or  (6) Is not written in language which the board considers to be easily understood by the purchaser.[1989 c 390 § 9; 1986 c 259 § 72; 1982 c 66 § 11.]Notes:Severability -- 1986 c 259: See note following RCW 18.130.010.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240. RCW 18.39.350Violations Penalty Consumer protection Retail installment contracts.Any person who violates or fails to comply with, or aids or abets any person in the violation of, or failure to comply with any of the provisions of this chapter is guilty of a class C felony pursuant to chapter 9A.20 RCW. Any such violation constitutes an unfair practice under chapter 19.86 RCW and this chapter and conviction thereunder is grounds for license revocation under this chapter and RCW 18.235.110. Retail installment contracts under this chapter shall be governed by chapter 63.14 RCW.[2002 c 86 § 220; 1989 c 390 § 11; 1982 c 66 § 13.]Notes:Effective dates -- 2002 c 86: See note following RCW 18.08.340.Part headings not law -- Severability -- 2002 c 86: See RCW 18.235.902 and 18.235.903.Effective dates -- Transfer of records, files, and pending business -- Savings -- 1982 c 66: See notes following RCW 18.39.240.Unlawful business practices -- Penalty: RCW 18.39.220.