(1) A provider may not engage in prearrangement sales or preconstruction sales unless the provider is certified by the Director of the Department of Consumer and Business Services. The director shall:
(a) Establish procedures for issuing certificates required by this section.
(b) Establish standards for determining whether a certificate should be issued.
(c) Set certification and renewal fees.
(d) Require annual renewal of certification.
(e) Establish standards for rules of conduct of certified providers.
(2) The fees described in this section shall be reasonable and shall defray the costs associated with the administration of ORS 97.923 to 97.949.
(3)(a) Every certified provider shall file an annual report with the director on forms provided by the director. The annual report shall contain any information reasonably considered necessary by the director, including but not limited to:
(A) A disclosure of changes in trust deposits;
(B) The number of consecutively numbered prearrangement or preconstruction sales contracts sold during the reporting period;
(C) A complete inventory of the funeral merchandise, cemetery merchandise or a combination thereof delivered in lieu of trust fund requirements under ORS 97.941, including:
(i) The location of the merchandise;
(ii) Merchandise serial numbers or warehouse receipt numbers identified by the name of the purchaser or the beneficiary; and
(iii) The statement of the certified provider that each item of merchandise is in the sellerís possession at the specified location; and
(D) The number of withdrawals from or terminations of any trusts.
(b) If the annual report is not filed or is filed and shows any material discrepancy, the director may take appropriate action and send notification of the matter to the State Mortuary and Cemetery Board.
(c) The director may relieve a certified provider of the duty to file the annual report upon a determination that the certified provider has performed all obligations under the prearrangement sales contract or preconstruction sales contract, or that such obligations lawfully have been assumed by another or have been discharged or canceled.
(4) The director may audit the records of a certified provider that relate to prearrangement sales or preconstruction sales, as the director may consider appropriate. The director may refer any matter outside of normal auditing procedures to the office of the Attorney General for investigation and send notification of the referral to the State Mortuary and Cemetery Board.
(5) The conduct of individuals, including salespersons as defined in ORS 97.923, employed by a certified provider is the direct responsibility of the certified provider.
(6) A certificate issued to a provider is not transferable. A person that seeks to purchase or otherwise acquire control of a cemetery or funeral establishment that is a certified provider shall first apply to the director and obtain approval of the purchase or change in control.
(7) A certificate issued to a provider becomes inactive when the certificate is surrendered to the director. The director retains jurisdiction over the provider as long as trust funds remain on deposit for prearrangement sales contracts or preconstruction sales contracts. While the certificate is inactive, the provider shall:
(a) Cease all prearrangement sales to the public;
(b) Collect and deposit into trust all installment funds paid toward contracts sold prior to becoming inactive;
(c) Seek disbursal of trust funds only in accordance with the requirements of the written contracts and ORS 97.923 to 97.949 until the funds have been exhausted; and
(d) Continue to submit required annual reports and renewal fees until no trust funds remain on deposit. [2001 c.796 §1; 2003 c.362 §3; 2007 c.661 §15]
Note: See note under 97.923.Section: Previous 97.923 97.925 97.926 97.927 97.929 97.930 97.931 97.933 97.935 97.936 97.937 97.939 97.941 97.942 97.943 Next
Last modified: August 7, 2008