Section 1. That sections 1151.345, 1161.59, 1733.51, | 7 |
2108.81, 2117.251, 3103.03, 3905.451, 4717.01, 4717.03, 4717.04, | 8 |
4717.13, 4717.99, and 5747.02 be amended and sections 4717.31 and | 9 |
4717.32 of the Revised Code be enacted to read as follows: | 10 |
Sec. 2117.251. A claim under the bill of a funeral director | 69 |
pursuant to section 2117.25 of the Revised Code arises subsequent | 70 |
to the death of the decedent and is not in satisfaction of a | 71 |
personal obligation of the individual during the individual's | 72 |
lifetime. If a decedent during the decedent's lifetime has | 73 |
purchased an irrevocable preneed funeral contract pursuant to | 74 |
section 1111.194717.31 of the Revised Code, then those provisions | 75 |
of section 2117.25 of the Revised Code that relate to the bill of | 76 |
a funeral director, including divisions (A) and (B) of that | 77 |
section, do not apply to the estate of the decedent and the estate | 78 |
is not liable for the funeral expenses of the decedent. | 79 |
(E) If a decedent during the decedent's lifetime has | 106 |
purchased
an
irrevocable preneed funeral contract pursuant to | 107 |
section
1109.754717.31 of the Revised Code, then the duty of | 108 |
support owed
to a
spouse
pursuant to this section does not include | 109 |
an
obligation to pay
for the funeral expenses of the deceased | 110 |
spouse.
This division
does not preclude a surviving spouse from | 111 |
assuming
by contract
the obligation to pay for the funeral | 112 |
expenses of the
deceased
spouse. | 113 |
Sec. 3905.451.
A life insurance policy
that is
issued,
sold, | 114 |
or assigned for the
purpose of
purchasing funeral or
burial goods | 115 |
or
services, and the contractual obligation to
provide the goods | 116 |
or services, are not
subject to divisions (C), (F), (G), (I), and | 117 |
(J) of section
1111.194717.31
of the
Revised Code. | 118 |
(C) "Funeral directing" means the
business or profession of | 128 |
directing
or supervising funerals for profit, the business or | 129 |
profession of preparing dead human bodies for burial by means | 130 |
other than
embalming, the disposition of dead human bodies, the | 131 |
provision or maintenance
of a place for the preparation, the care, | 132 |
or disposition of dead human bodies,
the use in connection with a | 133 |
business of the term "funeral director,"
"undertaker," | 134 |
"mortician," or any other term from which can be implied the | 135 |
business of funeral directing, or the holding out to the public | 136 |
that one is a
funeral director or a disposer of dead human bodies. | 137 |
(K) "Crematory facility" means the
physical location at which | 159 |
a cremation chamber is located and the
cremation process takes | 160 |
place. "Crematory facility" does not include an
infectious waste | 161 |
incineration facility for which a license is held under
division | 162 |
(B) of section 3734.05 of the
Revised Code, or a solid waste | 163 |
incineration
facility for which a license is held under division | 164 |
(A) of that
section that includes a notation pursuant to division | 165 |
(B)(3) of that
section authorizing the facility to also treat | 166 |
infectious wastes, in
connection with the incineration of body | 167 |
parts other than dead human bodies
that were donated to science | 168 |
for purposes of medical education or
research. | 169 |
(U) "Preneed funeral contract" means a written agreement, | 201 |
contract, or series of contracts to sell or otherwise provide any | 202 |
funeral services, funeral goods, including caskets, or any | 203 |
combination of funeral services and funeral goods to be used in | 204 |
connection with the funeral or final disposition of a dead human | 205 |
body, where payment for the goods or services is made either | 206 |
outright or on an installment basis, prior to the death of the | 207 |
person purchasing the goods or services or for whom the goods or | 208 |
services are purchased. Preneed funeral contract does not include | 209 |
any preneed cemetery merchandise and services contract or any | 210 |
agreement, contract, or series of contracts pertaining to the sale | 211 |
of any burial lot, burial or interment right, entombment right, or | 212 |
columbarium right with respect to which an endowment care fund is | 213 |
established or is exempt from establishment pursuant to section | 214 |
1721.21 of the Revised Code. | 215 |
Sec. 4717.03. (A) Members of the board of
embalmers and | 216 |
funeral directors shall annually in July,
or within thirty days | 217 |
after the senate's confirmation of the new
members appointed in | 218 |
that year, meet and organize by selecting
from among its members a | 219 |
president, vice-president, and secretary-treasurer.
The board may | 220 |
hold other meetings as it determines necessary. A quorum of the | 221 |
board consists of four members, of whom at least three shall be | 222 |
members who are embalmers and funeral directors. The concurrence | 223 |
of at least four members is necessary for the board to take any | 224 |
action. The president and secretary-treasurer shall sign all | 225 |
licenses
issued under this chapter and affix the board's seal to | 226 |
each
license. | 227 |
(C) The board may employ clerical or technical
staff who are | 240 |
not members of the board and who serve at the
pleasure of the | 241 |
board to provide any clerical or technical
assistance the board | 242 |
considers necessary. The board may employ
necessary inspectors, | 243 |
who shall be licensed embalmers and funeral
directors. Any | 244 |
inspector employed by the board may enter the
premises, | 245 |
establishment, office, or place of business of any
embalmer, | 246 |
funeral director, or operator of a crematory facility in this | 247 |
state,
for the purposes of inspecting the facility and premises; | 248 |
the
license and registration of embalmers and funeral directors | 249 |
operating in the facility; and the license of the
funeral home, | 250 |
embalming facility, or crematory. The inspector
shall serve and | 251 |
execute any process issued by any court under
this chapter, serve | 252 |
and execute any papers or process issued by
the board or any | 253 |
officer or member of the board, and perform any
other duties | 254 |
delegated by the board. | 255 |
(D) The president of the board shall
designate three of its | 256 |
members to serve on the crematory review board, which
is hereby | 257 |
created, for such time as the president finds appropriate to carry | 258 |
out the provisions of this chapter. Those members of the crematory | 259 |
review
board designated by the president to serve and three | 260 |
members designated by the
cemetery
dispute resolution commission | 261 |
shall designate, by a majority vote, one person
who is experienced | 262 |
in the operation of a crematory facility and who is not
affiliated | 263 |
with a cemetery or a funeral home to serve on the crematory review | 264 |
board for such time as the crematory review board finds | 265 |
appropriate. Members
serving on the crematory review board shall | 266 |
not receive any additional
compensation for serving on the board, | 267 |
but may be reimbursed for their actual
and necessary expenses | 268 |
incurred in the performance of official duties as
members of the | 269 |
board. Members of the crematory review board
shall designate one | 270 |
from among its members to serve as a chairperson for such
time as | 271 |
the board finds appropriate. Costs associated with conducting an | 272 |
adjudicatory hearing in accordance with division (E) of this | 273 |
section
shall be paid from funds available to the board of | 274 |
embalmers and funeral
directors. | 275 |
The crematory review board shall submit a written report
of | 305 |
findings and advisory recommendations, and a written
transcript of | 306 |
its proceedings, to the board of embalmers and
funeral directors. | 307 |
The board of embalmers and funeral directors
shall serve a copy of | 308 |
the written report of the crematory review
board's findings and | 309 |
advisory recommendations on the party to
the adjudication or the | 310 |
party's attorney, by certified mail,
within five days after | 311 |
receiving the report and advisory
recommendations. A party may | 312 |
file objections to the written
report with the board of embalmers | 313 |
and funeral directors within
ten days after receiving the report. | 314 |
No written report is
final or appealable until it is issued as a | 315 |
final order by the
board of embalmers and funeral directors and | 316 |
entered on the
record of the proceedings. The board of embalmers | 317 |
and funeral
directors shall consider objections filed by the party | 318 |
prior to
issuing a final order. After reviewing the findings and | 319 |
advisory recommendations of the crematory review board, the | 320 |
written transcript of the crematory review board's proceedings, | 321 |
and any objections filed by a party, the board of embalmers and | 322 |
funeral directors shall issue a final order in the matter. Any | 323 |
party may appeal the final order issued by the board of
embalmers | 324 |
and funeral directors in a matter described in
divisions (E)(1) to | 325 |
(4) of this
section in accordance with section 119.12 of the | 326 |
Revised Code, except that the appeal
may be made to the court of | 327 |
common pleas in the county in which
is located the crematory | 328 |
facility to which the final order
pertains, or in the county in | 329 |
which the party resides. | 330 |
(F) On its own initiative or on receiving a
written complaint | 331 |
from any person whose identity is made known to
the board of | 332 |
embalmers and funeral directors, the board shall investigate the | 333 |
acts or practices of
any person holding or claiming to hold a | 334 |
license or registration under this
chapter that, if proven to have | 335 |
occurred, would violate this
chapter or any rules adopted under | 336 |
it, or section
1111.19 of the
Revised Code. The board may compel | 337 |
witnesses by
subpoena to appear and testify in relation to | 338 |
investigations
conducted under this chapter and may require by | 339 |
subpoena duces
tecum the production of any book, paper, or | 340 |
document pertaining
to an investigation. If a person does not | 341 |
comply with a
subpoena or subpoena duces tecum, the board may | 342 |
apply to the
court of common pleas of any county in this state for | 343 |
an order
compelling the person to comply with the subpoena or | 344 |
subpoena
duces tecum, or for failure to do so, to be held in | 345 |
contempt of
court. | 346 |
(G) If, as a result of its investigation conducted under | 347 |
division
(F) of this section, the board of embalmers and funeral | 348 |
directors has
reasonable cause to believe that the person | 349 |
investigated is
violating any provision of this chapter or any | 350 |
rules adopted under
this
chapter, or section 1111.19 of the | 351 |
Revised
Code, governing or in
connection with embalming, funeral | 352 |
directing, funeral homes, embalming
facilities, or the operation | 353 |
of funeral homes or embalming facilities, it may,
after providing | 354 |
the opportunity for an adjudicatory hearing, issue an order | 355 |
directing the person to
cease the acts or practices that | 356 |
constitute the violation. The board shall
conduct the adjudicatory | 357 |
hearing in accordance with
Chapter 119. of the Revised Code except | 358 |
that, notwithstanding the provisions of that chapter, the | 359 |
following shall apply: | 360 |
(H) If, as a result of
its investigation conducted under | 371 |
division
(F) of this section, the board of embalmers and funeral | 372 |
directors has
reasonable cause to believe that the person | 373 |
investigated is
violating any provision of this chapter or any | 374 |
rules adopted under
this chapter, or section 1111.19 of the | 375 |
Revised
Code, governing or in
connection with crematory facilities | 376 |
or cremation, the board
shall send written notice of the alleged | 377 |
violation to the
crematory review board. If, after the conclusion | 378 |
of the
adjudicatory hearing in the matter conducted under division | 379 |
(E) of this section, the board
of embalmers and funeral directors | 380 |
finds that a person is in
violation of any provision of this | 381 |
chapter or any rules adopted
under this chapter, or section | 382 |
1111.19 of the
Revised Code, governing or in
connection with | 383 |
crematory facilities or cremation, the board may
issue a final | 384 |
order under that division directing the person to
cease the acts | 385 |
or practices that constitute the
violation. | 386 |
(I) The board of embalmers and funeral directors may bring a | 387 |
civil action to enjoin any violation or threatened violation of | 388 |
section
1111.19; sections 4717.01 to 4717.15 of the Revised
Code | 389 |
or a rule adopted under any of those
sections;
division (A) or (B) | 390 |
of section 4717.23; division
(B)(1) or (2), (C)(1) or (2), (D), | 391 |
(E), or
(F)(1) or (2), or divisions (H) to (K) of section
4717.26; | 392 |
division (D)(1) of section 4717.27; or divisions
(A) to (C) of | 393 |
section 4717.28, or section 4717.31 of the
Revised Code. The | 394 |
action shall be brought in
the county where the violation occurred | 395 |
or the threatened
violation is expected to occur. At the request | 396 |
of the board, the
attorney general shall represent the board in | 397 |
any matter arising
under this chapter. | 398 |
(J) The board of embalmers and funeral directors and the | 399 |
crematory review board may issue subpoenas
for funeral directors | 400 |
and embalmers or persons holding themselves out as
such, for | 401 |
operators of crematory facilities or persons holding themselves | 402 |
out
as such, or for any other person whose testimony, in the | 403 |
opinion of
either board, is necessary. The subpoena shall require | 404 |
the person
to appear before the appropriate board or any | 405 |
designated member of either
board, upon any hearing conducted | 406 |
under this chapter. The penalty for
disobedience to the command of | 407 |
such a subpoena is the same as for
refusal to answer such a | 408 |
process issued under authority of the
court of common pleas. | 409 |
Sec. 4717.04. (A) The board of embalmers and
funeral | 419 |
directors shall adopt rules in accordance with
Chapter 119. of the | 420 |
Revised Code for the
government, transaction of the business, and | 421 |
the management of the
affairs of the board of embalmers and | 422 |
funeral directors and the crematory
review board, and for the | 423 |
administration and enforcement of this chapter.
These rules shall | 424 |
include all of the following: | 425 |
(b) Purposely violating any provision
of sections 4717.01 to | 466 |
4717.15 of the Revised Code
or a rule adopted under any of those | 467 |
sections; division (A) or (B) of section 4717.23;
division (B)(1) | 468 |
or (2), (C)(1) or (2), (D),
(E), or (F)(1) or (2), or divisions | 469 |
(H) to
(K) of section 4717.26; division (D)(1) of section 4717.27; | 470 |
or divisions (A) to (C) of section 4717.28 of the Revised Code; | 471 |
Each instance of the commission of any of the types of | 486 |
conduct described in divisions
(A)(9)(a),
(b), (c), (d), (e), (f), | 487 |
and (g) of this section is a separate
violation. The rules adopted | 488 |
under division
(A)(9) of this section shall
establish the amount | 489 |
of the forfeiture for a violation of each of
those divisions. The | 490 |
forfeiture for a first violation shall not
exceed five thousand | 491 |
dollars, and the forfeiture for a second or
subsequent violation | 492 |
shall not exceed ten thousand dollars. The
amount of the | 493 |
forfeiture may differ among the types of
violations according to | 494 |
what the board considers the
seriousness of each violation. | 495 |
(1) Engage in the business or profession of funeral
directing | 513 |
unless the person is licensed as a funeral director under this | 514 |
chapter, is certified as an apprentice funeral director in | 515 |
accordance with
rules adopted under section 4717.04 of
the Revised | 516 |
Code and is assisting a funeral director
licensed under this | 517 |
chapter, or is a student in a college of mortuary sciences | 518 |
approved by the board and is under the direct supervision of a | 519 |
funeral
director licensed by the board; | 520 |
(4) Advertise or otherwise offer to provide or convey
the | 535 |
impression that the person provides embalming services unless
the | 536 |
person is licensed as an embalmer under this chapter and is | 537 |
employed
by or under contract to a licensed funeral home or a | 538 |
licensed
embalming facility and performs embalming services for | 539 |
the
funeral home or embalming facility in a manner consistent with | 540 |
the advertisement, offering, or conveyance; | 541 |
(C) No person who holds
a funeral home license for a funeral | 568 |
home that is closed,
or that is owned by a funeral business in | 569 |
which changes in the ownership of
the funeral business result in a | 570 |
majority of the ownership of the funeral
business being held by | 571 |
one or more persons who solely or in combination with
others did | 572 |
not own a majority of the funeral business immediately prior to | 573 |
the
change in ownership, shall fail to submit to the
board within | 574 |
thirty days after the closing or such a change in
ownership of the | 575 |
funeral business owning the funeral home, a clearly
enumerated | 576 |
account of
all of the following from which the licensee, at the | 577 |
time of the closing or
change in ownership of the funeral business | 578 |
and in connection with the
funeral home, was to receive payment | 579 |
for providing funeral
services, funeral goods, or any combination | 580 |
of those in
connection with the funeral or final disposition of a | 581 |
dead human
body: | 582 |
(3) Accounts at banks or savings banks insured by the
federal | 587 |
deposit insurance corporation, savings and loan
associations | 588 |
insured by the federal savings and loan insurance
corporation or | 589 |
the Ohio deposit
guarantee fund, or credit unions insured by the | 590 |
national credit
union administration or a credit union share | 591 |
guaranty
corporation organized under Chapter 1761. of the Revised | 592 |
Code that are payable upon the death of the person for whose | 593 |
benefit
deposits into the accounts were made. | 594 |
(B) A preneed funeral contract may be funded by the purchase | 598 |
or assignment of an insurance policy in accordance with section | 599 |
3905.45 of the Revised Code. Preneed funeral contracts that are | 600 |
funded by the purchase or assignment of an insurance policy in | 601 |
accordance with section 3905.45 of the Revised Code are not | 602 |
subject to divisions (C), (F), (G), (I), and (J) of this section. | 603 |
Any preneed funeral contract that involves the payment of money or | 604 |
the purchase or assignment of an insurance policy shall be in | 605 |
writing and include the following information: | 606 |
(1) The name, address, and phone number of the seller and the | 607 |
name, address, and social security number of the purchaser, and, | 608 |
if the beneficiary of the preneed funeral contract is for someone | 609 |
other than the purchaser, the name, address, and social security | 610 |
number of the beneficiary; | 611 |
(6) A disclosure informing the purchaser whether the contract | 632 |
is either a guaranteed price preneed funeral contract or a | 633 |
non-guaranteed price preneed funeral contract, and, if guaranteed | 634 |
only in part, the funeral goods or funeral services included in | 635 |
the guarantee shall be specified. If the preneed funeral contract | 636 |
is a guaranteed price contract, the contract shall disclose that | 637 |
the seller, in exchange for all of the proceeds of the trust or | 638 |
insurance policy, shall provide the funeral goods and services set | 639 |
forth in the preneed funeral contract without regard to the actual | 640 |
cost of such funeral goods and services prevailing at the time of | 641 |
performance. If the preneed funeral contract is a non-guaranteed | 642 |
price contract, the contract shall disclose that the proceeds of | 643 |
the trust or insurance policy shall be applied to the current | 644 |
retail prices of the funeral goods and services set forth in the | 645 |
contract. It shall further disclose that any surplus funds shall | 646 |
be paid to the estate of the purchaser and, in the event of an | 647 |
insufficiency in funds, the seller shall not be required to | 648 |
perform until payment arrangements satisfactory to the seller have | 649 |
been made. | 650 |
"NOTICE: Under Ohio law, the person holding the right of | 670 |
disposition of the remains of the beneficiary of this contract | 671 |
pursuant to section 2108.70 or 2108.81 of the Revised Code will | 672 |
have the right to make funeral arrangements inconsistent with the | 673 |
arrangements set forth in this contract. However, the beneficiary | 674 |
is encouraged to state his or her preferences as to funeral | 675 |
arrangements in a declaration of the right of disposition pursuant | 676 |
to section 2108.72 of the Revised Code, including that the | 677 |
arrangements set forth in this contract shall be followed." | 678 |
(C) One hundred per cent of all payments for funeral goods | 697 |
and services made under a preneed funeral contract shall remain | 698 |
intact and held in trust in accordance with divisions (F), (G), | 699 |
(I), and (J) of this section for the benefit of the person for | 700 |
whose benefit the contract is made. No money in a preneed funeral | 701 |
contract trust shall be distributed from the trust except as | 702 |
provided in this section. Within thirty days after the seller of | 703 |
funeral goods or services receives any payment under a preneed | 704 |
funeral contract, the seller shall deliver the moneys received and | 705 |
not returned to the purchaser as provided in division (D) of this | 706 |
section to the trustee designated in the preneed funeral contract. | 707 |
(4) The purchaser of a preneed funeral contract that is | 735 |
irrevocable and that is funded by an insurance policy may transfer | 736 |
the preneed funeral contract to a successor seller. Within fifteen | 737 |
days of receiving the written notice of the designation of the | 738 |
successor seller from the purchaser, the original seller shall | 739 |
notify the insurance company to transfer all rights under the | 740 |
insurance policy to the successor seller. The insurance company | 741 |
shall confirm the transfer to the original seller, the successor | 742 |
seller, and the purchaser by written notice to each. | 743 |
(F) The trustee of each preneed funeral contract shall be a | 744 |
trust company licensed under Chapter 1111. of the Revised Code or | 745 |
a national bank or federal savings association that pledges | 746 |
securities in accordance with section 1111.04 of the Revised Code | 747 |
or at least three individuals who have been residents of the | 748 |
county in which the seller is located for at least one year, each | 749 |
of whom shall be bonded by a corporate surety in an amount that is | 750 |
at least equal to the amount deposited in the fund of which those | 751 |
persons serve as trustee. Amounts in the fund shall be held and | 752 |
invested in the manner in which trust funds are permitted to be | 753 |
held and invested pursuant to sections 2109.37 and 2109.371 of the | 754 |
Revised Code. | 755 |
(G)(1) A trustee shall establish a separate preneed funeral | 756 |
contract trust for the moneys paid under each preneed funeral | 757 |
contract, unless the purchaser under a preneed funeral contract | 758 |
authorizes the trustee to place the moneys paid in a combined | 759 |
preneed funeral contract trust. The trustee of a combined preneed | 760 |
funeral contract trust shall keep exact records of the corpus, | 761 |
income, expenses, and disbursements with regard to each | 762 |
beneficiary of a preneed funeral contract for whom moneys are held | 763 |
in the trust. The terms of a preneed funeral contract trust are | 764 |
governed by this section. | 765 |
(I)(1) The purchaser of a preneed funeral contract that is | 783 |
not irrevocable may, on not less than fifteen days' notice, cancel | 784 |
the contract and request and receive from the trustee payments | 785 |
made under the contract and any income earned up to the time of | 786 |
cancellation, less fees, distributions, and expenses made pursuant | 787 |
to this section; except, if a preneed funeral contract stipulates | 788 |
a firm or fixed or guaranteed price for funeral services and goods | 789 |
for future use at a time determined by the death of the | 790 |
beneficiary of the preneed funeral contract, the purchaser, on not | 791 |
less than fifteen days' notice, may cancel the contract and | 792 |
receive from the trustee ninety per cent of the principal paid | 793 |
pursuant to the preneed funeral contract, not less than eighty per | 794 |
cent of any interest earned up to the time of cancellation, and | 795 |
not less than eighty per cent of any income earned on the funds | 796 |
since the funds were paid to the seller and up to the time of | 797 |
cancellation less any fees, distributions, and expenses. On | 798 |
cancellation, after the funds are distributed to the purchaser | 799 |
pursuant to this division, the trustee shall distribute all | 800 |
remaining funds attributable to the cancelled preneed funeral | 801 |
contract to the seller. If more than one purchaser enters into the | 802 |
contract, all of those purchasers must request cancellation for it | 803 |
to be effective under this division, and the trustee shall refund | 804 |
to each purchaser only those funds that purchaser has paid under | 805 |
the contract and a proportionate amount of any income earned on | 806 |
those funds, less any fees, distributions, and expenses. | 807 |
(2) The purchaser of a preneed funeral contract that is | 808 |
irrevocable may transfer the preneed funeral contract to a | 809 |
successor seller. Within fifteen days of receiving the written | 810 |
notice of the new designation from the purchaser, the trustee | 811 |
shall list the successor seller as the seller of the preneed | 812 |
funeral contract and the original seller shall relinquish and | 813 |
transfer all rights under the preneed funeral contract to the | 814 |
successor seller. The trustee shall confirm the transfer to the | 815 |
original seller, the successor seller, and the purchaser by | 816 |
written notice to each. If the preneed funeral contract stipulates | 817 |
a firm or fixed or guaranteed price for the funeral services and | 818 |
goods to be provided under the preneed funeral contract, the | 819 |
original seller may collect from the trustee a cancellation fee | 820 |
not exceeding ten per cent of the principal paid pursuant to the | 821 |
preneed funeral contract and twenty per cent of any interest or | 822 |
income earned on the funds since the time the funds were paid to | 823 |
the seller up to the time of transfer. If the preneed funeral | 824 |
contract does not stipulate a firm or fixed or guaranteed price | 825 |
for funeral services and goods to be provided under the preneed | 826 |
funeral contract, no cancellation fee may be collected by the | 827 |
original seller. | 828 |
(3) Within thirty days after a seller receives notice that | 829 |
the beneficiary of a preneed funeral contract has died and that | 830 |
funeral services and goods have been provided by a different | 831 |
provider, the seller shall notify the trustee to pay to the estate | 832 |
of the beneficiary of the preneed funeral contract all funds held | 833 |
by the trustee, less fees, distributions, and expenses made | 834 |
pursuant to this section; provided, however, that in the event the | 835 |
preneed funeral contract stipulates a firm or fixed or guaranteed | 836 |
price for funeral services and goods that were to be provided | 837 |
under the preneed funeral contract, the seller may collect from | 838 |
the trustee a cancellation fee not exceeding ten per cent of the | 839 |
principal paid pursuant to the preneed funeral contract and twenty | 840 |
per cent of any interest or income earned on the funds since the | 841 |
time the funds were paid to the seller up to the date that the | 842 |
trust funds were paid to the estate of the beneficiary. If the | 843 |
preneed funeral trust does not stipulate a firm or fixed or | 844 |
guaranteed price for funeral services and goods to be provided | 845 |
under the preneed funeral contract, no cancellation fees may be | 846 |
collected by the original seller. | 847 |
(J) A certified copy of the certificate of death or other | 848 |
evidence of death satisfactory to the trustee shall be furnished | 849 |
to the trustee as evidence of death, and the trustee shall | 850 |
promptly pay the accumulated payments and income, if any, | 851 |
according to the preneed funeral contract. The payment of the | 852 |
accumulated payments and income pursuant to this section and, when | 853 |
applicable, the preneed funeral contract, shall relieve the | 854 |
trustee of any further liability on the accumulated payments and | 855 |
income. | 856 |
(M) This section shall be construed as a limitation on the | 865 |
manner in which a person is permitted to accept funds in | 866 |
prepayment for funeral services to be performed in the future, or | 867 |
funeral goods to be used in connection with the funeral or final | 868 |
disposition of human remains, to the end that at all times members | 869 |
of the public may have an opportunity to arrange and pay for a | 870 |
funeral for themselves and their families in advance of need while | 871 |
at the same time providing all possible safeguards to ensure that | 872 |
prepaid funds cannot be dissipated, whether intentionally or not, | 873 |
but remain available for payment for funeral goods and services in | 874 |
connection with the funeral or final disposition of dead human | 875 |
bodies. | 876 |
(N) This section does not apply when the seller of funeral | 877 |
goods or services under a preneed funeral contract is an | 878 |
established and legally cognizable church or denomination that is | 879 |
exempt from federal income taxation under section 501(c)(3) of the | 880 |
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 501, as | 881 |
amended, and the preneed funeral contract pertains to a cemetery | 882 |
owned and operated entirely and exclusively by the church or | 883 |
denomination; provided the church or denomination adopts, on a | 884 |
voluntary basis, rules and other measures to safeguard and secure | 885 |
all funds received under any preneed funeral contract. | 886 |
Sec. 4717.32. (A) There is hereby created in the state | 897 |
treasury the preneed recovery fund, which shall be used to | 898 |
reimburse any purchaser of a preneed funeral contract who has | 899 |
incurred financial losses as a result of the malfeasance, | 900 |
misfeasance, default, failure, or insolvency of any seller of a | 901 |
preneed funeral contract. All investment earnings of the fund | 902 |
shall be credited to the fund. | 903 |
(B) A seller of a preneed funeral contract that is funded by | 904 |
the payment of money or by an insurance policy shall collect from | 905 |
each purchaser of a preneed funeral contract a fee of ten dollars. | 906 |
The sellers of preneed funeral contracts annually shall remit the | 907 |
fees collected to the board of embalmers and funeral directors | 908 |
quarterly within thirty days after the end of March, June, | 909 |
September, and December for all preneed funeral contracts that | 910 |
have been entered into during the three-month period. The board | 911 |
shall deposit one-half of the fees collected into the preneed | 912 |
recovery fund, to be expended only for the purposes specified in | 913 |
division (E) of this section. | 914 |
(G) The board shall investigate all applications made and may | 937 |
reject or allow such claims in whole or in part to the extent that | 938 |
the moneys are available in the fund. The board has complete | 939 |
discretion to determine the order and manner of payment of | 940 |
approved applications. All payments are a matter of privilege and | 941 |
not a right, and no person has any right in the fund as a | 942 |
third-party beneficiary or otherwise. No attorney may be | 943 |
compensated by the board for prosecuting an application for | 944 |
reimbursement. | 945 |
(H) In the event reimbursement is made to an applicant under | 946 |
this section, the board is subrogated in the reimbursed amount and | 947 |
may bring any action it deems advisable against any person, | 948 |
including a seller of a preneed funeral contract. The board may | 949 |
enforce any claims it may have for restitution or otherwise and | 950 |
may employ and compensate consultants, agents, legal counsel, | 951 |
accountants, and any other person it deems appropriate. | 952 |
Sec. 4717.99. Whoever violates any provision of
sections | 962 |
4717.01 to 4717.15; division (A) or (B) of
section 4717.23; | 963 |
division (B)(1) or (2), (C)(1) or (2),
(D), (E), or (F)(1) or (2), | 964 |
or divisions
(H) to (K) of section 4717.26; division (D)(1) of | 965 |
section 4717.27; or divisions (A) to (C) of section 4717.28
of the | 966 |
Revised Code shall be fined not less than one hundred nor more | 967 |
than
five thousand dollars, or imprisoned for not more than one | 968 |
year, or both, for
the first offense. For each subsequent
offense | 969 |
such a person shall be fined not less than one hundred
nor more | 970 |
than ten thousand dollars, or imprisoned for not more
than one | 971 |
year, or both. | 972 |
Sec. 5747.02. (A) For the purpose of providing revenue for | 975 |
the
support of schools and local government functions, to provide | 976 |
relief to property taxpayers, to provide revenue for the general | 977 |
revenue fund, and to meet the expenses of administering the tax | 978 |
levied by this chapter, there is hereby levied on every | 979 |
individual, trust,
and
estate residing in or earning or
receiving | 980 |
income in
this state, on every individual, trust, and
estate | 981 |
earning
or receiving
lottery winnings, prizes, or awards
pursuant | 982 |
to
Chapter 3770. of
the Revised Code, and on every
individual, | 983 |
trust, and estate
otherwise
having nexus with or in
this state | 984 |
under the Constitution
of the
United States, an annual
tax | 985 |
measured in the
case of individuals
by
Ohio adjusted gross income | 986 |
less
an exemption for the
taxpayer, the
taxpayer's spouse, and | 987 |
each
dependent as provided in section
5747.025 of the Revised | 988 |
Code;
measured in the case of trusts by modified
Ohio taxable | 989 |
income
under
division
(D) of this section; and measured in the | 990 |
case of
estates
by
Ohio
taxable
income. The tax imposed by this | 991 |
section on the
balance
thus obtained is
hereby levied as follows: | 992 |
In July of each year, beginning in 2010, the tax
commissioner | 1089 |
shall adjust the income amounts prescribed in this
division by | 1090 |
multiplying the percentage increase in the gross
domestic product | 1091 |
deflator computed that year under section
5747.025 of the Revised | 1092 |
Code by each of the income amounts
resulting from the adjustment | 1093 |
under this division in the preceding
year, adding the resulting | 1094 |
product to the corresponding income
amount resulting from the | 1095 |
adjustment in the preceding year, and
rounding the resulting sum | 1096 |
to the nearest multiple of fifty
dollars. The tax commissioner | 1097 |
also shall recompute each of the
tax dollar amounts to the extent | 1098 |
necessary to reflect the
adjustment of the income amounts. The | 1099 |
rates of taxation shall not
be adjusted. | 1100 |
(2) A credit is allowed against the tax computed under | 1123 |
division
(D) of this section equal to the lesser of (1) the tax | 1124 |
paid to
another state or the District of Columbia on
the trust's | 1125 |
modified nonbusiness
income, other than the portion of
the trust's | 1126 |
nonbusiness income that is qualifying investment
income as defined | 1127 |
in section 5747.012 of the Revised Code, or (2)
the effective tax | 1128 |
rate, based on
modified
Ohio taxable income,
multiplied by the | 1129 |
trust's modified nonbusiness
income
other than the portion of | 1130 |
trust's nonbusiness income that is
qualifying investment income. | 1131 |
The credit applies before any other
applicable credits. | 1132 |
(3) The credits enumerated in divisions (A)(1) to
(13) of | 1133 |
section 5747.98 of the Revised Code do not apply to a
trust | 1134 |
subject to this division.
Any credits enumerated in other | 1135 |
divisions of section 5747.98 of the Revised Code apply to a trust | 1136 |
subject to this division. To the extent that the trust
distributes | 1137 |
income for the taxable year for which a credit is
available to the | 1138 |
trust, the credit shall be shared by the trust
and its | 1139 |
beneficiaries. The tax commissioner and the trust shall
be guided | 1140 |
by applicable regulations of the United States treasury
regarding | 1141 |
the sharing of credits. | 1142 |
(E) For the purposes of this section, "trust" means any
trust | 1143 |
described in Subchapter J
of Chapter 1 of the Internal
Revenue | 1144 |
Code,
excluding
trusts that are not irrevocable as
defined in | 1145 |
division (I)(3)(b) of section 5747.01 of the Revised
Code and that | 1146 |
have no modified Ohio taxable income for the taxable
year, | 1147 |
charitable remainder trusts, qualified funeral trusts and preneed | 1148 |
funeral contract trusts established pursuant to section 1111.19 | 1149 |
4717.31 of the Revised Code that are not qualified funeral trusts, | 1150 |
endowment and perpetual care trusts, qualified settlement trusts | 1151 |
and funds, designated settlement trusts and funds, and trusts | 1152 |
exempted from taxation under section 501(a)
of
the Internal | 1153 |
Revenue Code. | 1154 |
Section 2. That existing sections 1151.345, 1161.59, | 1155 |
1733.51, 2108.81, 2117.251, 3103.03, 3905.451, 4717.01, 4717.03, | 1156 |
4717.04, 4717.13, 4717.99, and 5747.02 and sections 1111.19 and | 1157 |
1111.99 of the Revised Code are hereby repealed. | 1158 |