S. B. No. 196 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

S. B. No. 196

Senator Schaffer

Cosponsors: Senators Carey, Cates, Schuler

A BILL

To amend sections 1151.345, 1161.59, 1733.51,

2108.81, 2117.251, 3103.03, 3905.451, 4717.01,

4717.03, 4717.04, 4717.13, 4717.99, and 5747.02,

to enact sections 4717.31 and 4717.32, and to

repeal sections 1111.19 and 1111.99 of the Revised

Code to revise the Preneed Funeral Contract Law.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

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. 1151.345. A savings and loan association, in accordance	11
with sections ~~1111.19 and~~ 1721.211 and 4717.31 of the Revised	12
Code, may receive and hold on deposit moneys under a preneed	13
funeral contract or a preneed cemetery merchandise and services	14
contract.	15

Sec. 1161.59. In accordance with sections ~~1111.19 and~~	16
1721.211 and 4717.31 of the Revised Code, a savings bank may	17
receive and hold on deposit moneys under a preneed funeral	18
contract or a preneed cemetery merchandise and services contract.	19

Sec. 1733.51. A credit union may, subject to sections	20
~~1111.19 and~~ 1721.211 and 4717.31 of the Revised Code, receive and	21
hold on deposit moneys under a preneed funeral contract or preneed	22
cemetery merchandise and services contract.	23

Sec. 2108.81. (A) If either of the following is true,	24
division (B) of this section shall apply:	25

(1) An adult has not executed a written declaration pursuant	26
to sections 2108.70 to 2108.73 of the Revised Code that remains in	27
force at the time of the adult's death.	28

(2) Each person to whom the right of disposition has been	29
assigned or reassigned pursuant to a written declaration is	30
disqualified from exercising the right as described in section	31
2108.75 of the Revised Code.	32

(B) Subject to division (A) of this section and sections	33
2108.75 and 2108.79 of the Revised Code, the right of disposition	34
is assigned to the following persons, if mentally competent adults	35
who can be located with reasonable effort, in the order of	36
priority stated:	37

(1) The deceased person's surviving spouse;

(2) The sole surviving child of the deceased person or, if	39
there is more than one surviving child, all of the surviving	40
children, collectively.;	41

(3) The deceased person's surviving parent or parents;

(4) The deceased person's surviving sibling, whether of the	43
whole or of the half blood or, if there is more than one sibling	44
of the whole or of the half blood, all of the surviving siblings,	45
collectively;	46

(5) The deceased person's surviving grandparent or	47
grandparents;	48

(6) The deceased person's surviving grandchild, or if there	49
is more than one surviving grandchild, all of the surviving	50
grandchildren collectively;	51

(7) The lineal descendants of the deceased person's	52
grandparents, as described in division (I) of section 2105.06 of	53
the Revised Code;	54

~~(7)~~(8) The person who was the deceased person's guardian at	55
the time of the deceased person's death, if a guardian had been	56
appointed;	57

~~(8)~~(9) Any other person willing to assume the right of	58
disposition, including the personal representative of the deceased	59
person's estate or the licensed funeral director with custody of	60
the deceased person's body, after attesting in writing that a good	61
faith effort has been made to locate the persons in divisions	62
(B)(1) to (7) of this section.	63

(10) If the deceased person was an indigent person or other	64
person the final disposition of whose body is the responsibility	65
of the state or a political subdivision of this state, the public	66
officer or employee responsible for arranging the final	67
disposition of the remains or the deceased person.	68

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 ~~1111.19~~4717.31 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

Sec. 3103.03. (A) Each married person must support the	80
person's self and spouse out of the person's property or by the	81
person's labor. If a married person is unable to do so, the spouse	82
of the married person must assist in the support so far as the	83
spouse is able. The biological or adoptive parent of a minor child	84
must support the parent's minor children out of the parent's	85
property or by the parent's labor.	86

(B) Notwithstanding section 3109.01 of the Revised Code and	87
to the extent provided in section ~~3319.86~~3119.86 of the Revised	88
Code, the parental duty of support to children shall continue	89
beyond the age of majority as long as the child continuously	90
attends on a full-time basis any recognized and accredited high	91
school. That duty of support shall continue during seasonal	92
vacation periods.	93

(C) If a married person neglects to support the person's	94
spouse in accordance with this section, any other person, in good	95
faith, may supply the spouse with necessaries for the support of	96
the spouse and recover the reasonable value of the necessaries	97
supplied from the married person who neglected to support the	98
spouse unless the spouse abandons that person without cause.	99

(D) If a parent neglects to support the parent's minor child	100
in accordance with this section and if the minor child in question	101
is unemancipated, any other person, in good faith, may supply the	102
minor child with necessaries for the support of the minor child	103
and recover the reasonable value of the necessaries supplied from	104
the parent who neglected to support the minor child.	105

(E) If a decedent during the decedent's lifetime has	106
purchased an irrevocable preneed funeral contract pursuant to	107
section ~~1109.75~~4717.31 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 ~~1111.19~~4717.31 of the Revised Code.	118

Sec. 4717.01. As used in this chapter:

119

(A) "Embalming" means the preservation and disinfection, or	120
attempted preservation and disinfection, of the dead human body by	121
application of chemicals externally, internally, or both.	122

(B) "Funeral business" means a sole proprietorship,	123
partnership, corporation, limited liability company, or other	124
business entity that is engaged in funeral directing for profit or	125
for free from one or more funeral homes licensed under this	126
chapter.	127

(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

(D) "Funeral home" means a fixed place for the care,	138
preparation for burial, or disposition of dead human bodies or the	139
conducting of funerals. Each business location is a funeral home,	140
regardless of common ownership or management.	141

(E) "Embalmer" means a person who engages, in whole or in	142
part, in embalming and who is licensed under this chapter.	143

(F) "Funeral director" means a person who engages, in whole	144
or in part, in funeral directing and who is licensed under this	145
chapter.	146

(G) "Final disposition" has the same meaning as in division	147
(J) of section 3705.01 of the Revised Code.	148

(H) "Supervision" means the operation of all phases of the	149
business of funeral directing or embalming under the specific	150
direction of a licensed funeral director or licensed embalmer.	151

(I) "Direct supervision" means the physical presence of a	152
licensed funeral director or licensed embalmer while the specific	153
functions of the funeral or embalming are being carried out.	154

(J) "Embalming facility" means a fixed location, separate	155
from the funeral home, that is licensed under this chapter whose	156
only function is the embalming and preparation of dead human	157
bodies.	158

(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

(L) "Crematory" means the building or portion of a building	170
that houses the holding facility and the cremation chamber.	171

(M) "Cremation" means the technical process of using heat and	172
flame to reduce human or animal remains to bone fragments or ashes	173
or any combination thereof. "Cremation" includes processing and	174
may include the pulverization of bone fragments.	175

(N) "Cremation chamber" means the enclosed space within which	176
cremation takes place.	177

(O) "Cremated remains" means all human or animal remains	178
recovered after the completion of the cremation process, which may	179
include the residue of any foreign matter such as casket material,	180
dental work, or eyeglasses that were cremated with the human or	181
animal remains.	182

(P) "Lapsed license" means a license issued under this	183
chapter that has become invalid because of the failure of the	184
licensee to renew the license within the time limits prescribed	185
under this chapter.	186

(Q) "Operator of a crematory facility" means the sole	187
proprietorship, partnership, corporation, limited liability	188
company, or other business entity responsible for the overall	189
operation of a crematory facility.	190

(R) "Processing" means the reduction of identifiable bone	191
fragments to unidentifiable bone fragments through manual or	192
mechanical means after the completion of the cremation process.	193

(S) "Pulverization" means the reduction of identifiable bone	194
fragments to granulated particles by manual or mechanical means	195
after the completion of the cremation process.	196

(T) "Financial institution" means a bank, savings bank, or	197
savings association located in this state and insured by the	198
federal deposit insurance corporation or a credit union authorized	199
to do business in this state.	200

(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

(B) The board may appoint an individual who is not a member	228
of the board to serve as executive director of the board. The	229
executive director serves at the pleasure of the board and shall	230
do all of the following:	231

(1) Serve as the board's chief administrative officer;

232

(2) Act as custodian of the board's records;

233

(3) Execute all of the board's orders.

234

In executing the board's orders, the executive director may	235
enter the premises, establishment, office, or place of business of	236
any embalmer, funeral director, or operator of a crematory	237
facility in this state. The executive director may serve and	238
execute any process issued by any court under this chapter.	239

(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

(E) Upon receiving written notice from the board of embalmers	276
and funeral directors of any of the following, the crematory	277
review board shall conduct an adjudicatory hearing on the matter	278
in accordance with Chapter 119. of the Revised Code, except as	279
otherwise provided in this section or division (C) of section	280
4717.14 of the Revised Code:	281

(1) Notice provided under division (H) of this section of an	282
alleged violation of any provision of this chapter or any rules	283
adopted under this chapter~~, or section 1111.19 of the Revised~~	284
~~Code,~~ governing or in connection with crematory facilities or	285
cremation;	286

(2) Notice provided under division (B) of section 4717.14 of	287
the Revised Code that the board of embalmers and funeral directors	288
proposes to refuse to grant or renew, or to suspend or revoke, a	289
license to operate a crematory facility;	290

(3) Notice provided under division (C) of section 4717.14 of	291
the Revised Code that the board of embalmers and funeral directors	292
has issued an order summarily suspending a license to operate a	293
crematory facility;	294

(4) Notice provided under division (B) of section 4717.15 of	295
the Revised Code that the board of embalmers and funeral directors	296
proposes to issue a notice of violation and order requiring	297
payment of a forfeiture for any violation described in divisions	298
(A)(9)(a) to (g) of section 4717.04 of the Revised Code alleged in	299
connection with a crematory facility or cremation.	300

Nothing in division (E) of this section precludes the	301
crematory review board from appointing an independent examiner in	302
accordance with section 119.09 of the Revised Code to conduct any	303
adjudication hearing required under division (E) of this section.	304

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

(1) The board shall send the notice informing the person of	361
the person's right to a hearing by certified mail.	362

(2) The person is entitled to a hearing only if the person	363
requests a hearing and if the board receives the request within	364
thirty days after the mailing of the notice described in division	365
(G)(1) of this section.	366

(3) A stenographic record shall be taken, in the manner	367
prescribed in section 119.09 of the Revised Code, at every	368
adjudicatory hearing held under this section, regardless of	369
whether the record may be the basis of an appeal to a court.	370

(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

(K) All moneys received by the board of embalmers and funeral	410
directors from any source shall be deposited in the state treasury	411
to the credit of the occupational licensing and regulatory fund	412
created in section 4743.05 of the Revised Code.	413

(L) The board of embalmers and funeral directors shall submit	414
a written report to the governor on or before the first Monday of	415
July of each year. This report shall contain a detailed statement	416
of the nature and amount of the board's receipts and the amount	417
and manner of its expenditures.	418

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

(1) The nature, scope, content, and form of the application	426
that must be completed and license examination that must be passed	427
in order to receive an embalmer's license or a funeral director's	428
license under section 4717.05 of the Revised Code. The rules shall	429
ensure both of the following:	430

(a) That the embalmer's license examination tests the	431
applicant's knowledge through at least a comprehensive section and	432
an Ohio laws section;	433

(b) That the funeral director's license examination tests the	434
applicant's knowledge through at least a comprehensive section, an	435
Ohio laws section, and a sanitation section.	436

(2) The minimum license examination score necessary to be	437
licensed under section 4717.05 of the Revised Code as an embalmer	438
or as a funeral director;	439

(3) Procedures for determining the dates of the embalmer's	440
and funeral director's license examinations, which shall be	441
administered at least once each year, the time and place of each	442
examination, and the supervision required for each examination;	443

(4) Procedures for determining whether the board shall accept	444
an applicant's compliance with the licensure, registration, or	445
certification requirements of another state as grounds for	446
granting the applicant a license under this chapter;	447

(5) A determination of whether completion of a nationally	448
recognized embalmer's or funeral director's examination	449
sufficiently meets the license requirements for the comprehensive	450
section of either the embalmer's or the funeral director's license	451
examination administered under this chapter;	452

(6) Continuing education requirements for licensed embalmers	453
and funeral directors;	454

(7) Requirements for the licensing and operation of funeral	455
homes;	456

(8) Requirements for the licensing and operation of embalming	457
facilities;	458

(9) A schedule that lists, and specifies a forfeiture	459
commensurate with, each of the following types of conduct which,	460
for the purposes of division (A)(9) of this section and section	461
4717.15 of the Revised Code, are violations of this chapter:	462

(a) Obtaining a license under this chapter by fraud or	463
misrepresentation either in the application or in passing the	464
required examination for the license;	465

(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

472

(d) Knowingly permitting an unlicensed person, other than a	473
person serving an apprenticeship, to engage in the profession or	474
business of embalming or funeral directing under the licensee's	475
supervision;	476

(e) Refusing to promptly submit the custody of a dead human	477
body upon the express order of the person legally entitled to the	478
body;	479

(f) Transferring a license to operate a funeral home,	480
embalming facility, or crematory facility from one owner or	481
operator to another, or from one location to another, without	482
notifying the board;	483

(g) Misleading the public using false or deceptive	484
advertising.	485

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

(10) Requirements for the licensing and operation of	496
crematory facilities;	497

(11) Procedures for the issuance of duplicate licenses;

498

(12) Requirements and procedures for annual reporting of	499
preneed sales by all preneed sellers;	500

(13) Procedures for the administration of the preneed	501
recovery fund.	502

(B) The board may adopt rules governing the educational	503
standards for licensure as an embalmer or funeral director and the	504
standards of service and practice to be followed in embalming and	505
funeral directing and in the operation of funeral homes, embalming	506
facilities, and crematory facilities in this state.	507

(C) Nothing in this chapter authorizes the board of embalmers	508
and funeral directors to regulate cemeteries, except that the	509
board shall license and regulate crematories located at cemeteries	510
in accordance with this chapter.	511

Sec. 4717.13. (A) No person shall do any of the following:

512

(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

(2) Engage in embalming unless the person is licensed as an	521
embalmer under this chapter, is certified as an apprentice	522
embalmer in accordance with rules adopted under section 4717.04 of	523
the Revised Code and is assisting an embalmer licensed under this	524
chapter, or is a student in a college of mortuary science approved	525
by the board and is under the direct supervision of an embalmer	526
licensed by the board;	527

(3) Advertise or otherwise offer to provide or convey the	528
impression that the person provides funeral directing services	529
unless the person is licensed as a funeral director under this	530
chapter and is employed by or under contract to a licensed funeral	531
home and performs funeral directing services for that funeral home	532
in a manner consistent with the advertisement, offering, or	533
conveyance;	534

(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

(5) Operate a funeral home without a license to operate the	542
funeral home issued by the board under this chapter;	543

(6) Practice the business or profession of funeral directing	544
from any place except from a funeral home that a person is	545
licensed to operate under this chapter;	546

(7) Practice embalming from any place except from a funeral	547
home or embalming facility that a person is licensed to operate	548
under this chapter;	549

(8) Operate a crematory or perform cremation without a	550
license to operate the crematory issued under this chapter;	551

(9) Cremate animals in a cremation chamber in which dead	552
human bodies or body parts are cremated or cremate dead human	553
bodies or human body parts in a cremation chamber in which animals	554
are cremated.	555

(B) No funeral director or other person in charge of the	556
final disposition of a dead human body shall fail to do one of the	557
following prior to the interment of the body:	558

(1) Affix to the ankle or wrist of the deceased a tag encased	559
in a durable and long-lasting material that contains the name,	560
date of birth, date of death, and social security number of the	561
deceased;	562

(2) Place in the casket a capsule containing a tag bearing	563
the information described in division (B)(1) of this section;	564

(3) If the body was cremated, place in the vessel containing	565
the cremated remains a tag bearing the information described in	566
division (B)(1) of this section.	567

(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

(1) Preneed funeral contracts governed by section ~~1111.19~~	583
4717.31 of the Revised Code;	584

(2) Life insurance policies the benefits of which are payable	585
to the provider of funeral or burial goods or services;	586

(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

Sec. 4717.31. (A) Only a funeral director licensed pursuant	595
to Chapter 4717. of the Revised Code may sell a preneed funeral	596
contract that includes funeral services.	597

(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

(2) A statement of the funeral goods and funeral services	612
purchased, which disclosure may be made by attaching a copy of the	613
completed statement of funeral goods and services selected to the	614
preneed funeral contract;	615

(3) If the preneed funeral contract is funded by any means	616
other than an insurance policy or policies, disclosures	617
identifying the name and address of the trustee, indicating	618
whether fees, expenses, or taxes will be deducted from the trust,	619
and a statement of who will be responsible for the taxes owed on	620
the trust earnings;	621

(4) If the preneed funeral contract is funded by the purchase	622
or assignment of one or more insurance policies, disclosures	623
identifying the name and address of the insurance company and any	624
right the purchaser has regarding canceling or transferring the	625
insurance policies;	626

(5) A disclosure explaining the form in which the purchase	627
price must be paid and, if the price is to be paid in	628
installments, a disclosure to the purchaser regarding what	629
constitutes a default under the preneed funeral contract and the	630
consequences of the default;	631

(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

(7) A disclosure that the purchaser has the right to make the	651
contract irrevocable and that if the preneed funeral contract is	652
irrevocable, the purchaser does not have a right to revoke the	653
contract;	654

(8) A disclosure informing the purchaser of the initial right	655
to cancel the preneed funeral contract within seven days as	656
provided in division (D) of this section and the right to revoke a	657
revocable preneed funeral contract in accordance with divisions	658
(E)(3) and (I)(1) of this section;	659

(9) A disclosure that the seller may substitute funeral goods	660
or services of equal quality, value, and workmanship if those	661
specified in the preneed funeral contract are unavailable at the	662
time of need;	663

(10) A disclosure that any purchaser of funeral goods and	664
services is entitled to receive price information prior to making	665
that purchase in accordance with the Federal Trade Commission's	666
funeral industry practices revised rule, 16 C.F.R. Part 453;	667

(11) The following notice in boldface print and in	668
substantially the following form:	669

"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

(12) If the preneed funeral contract is funded by the	679
purchase of one or more insurance policies, the following notice	680
in boldface print and in substantially the following form:	681

"NOTICE: You, as the purchaser of this contract, will be	682
notified in writing by any insurance company when the insurance	683
policy or policies that will fund this contract have been issued.	684
If you do not receive the notice within sixty days of the date you	685
paid the funds to the seller, you should contact the insurance	686
company identified in the contract."	687

(13) If the preneed contract is funded by means other than an	688
insurance policy, the following notice in boldface print and in	689
substantially the following form:	690

"NOTICE: You, as the purchaser of this contract, will be	691
notified in writing when the trustee of this contract has received	692
a deposit of the funds you paid the seller under this contract. If	693
you do not receive the notice within sixty days of the date you	694
paid the funds to the seller, you should contact the trustee	695
identified in the contract."	696

(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

(D) Any purchaser on initially entering into a preneed	708
funeral contract may, within seven days, rescind the contract and	709
request and receive from the seller one hundred per cent of all	710
payments made under the contract. Each preneed funeral contract	711
shall contain the following notice in boldface print and in	712
substantially the following form:	713

"NOTICE: Under Ohio law, you, as the purchaser of this	714
contract, may rescind it and receive a refund of all payments you	715
made under the contract. To rescind the contract, you must notify	716
the seller within seven days of signing the contract."	717

(E)(1) If the preneed funeral contract provides that it will	718
be funded by the purchase of an insurance policy, the seller,	719
within thirty days after receiving any payment under the preneed	720
funeral contract, shall deliver the money received and not	721
returned to the purchaser as provided in division (D) of this	722
section, to the insurance company designated in the preneed	723
funeral contract.	724

(2) The insurance company receiving payment from a preneed	725
funeral contract seller for an insurance policy to fund the	726
preneed funeral contract shall notify the purchaser of the	727
contract in writing of the amount of any payment received within	728
fifteen days of the receipt of the payment.	729

(3) The purchaser of a preneed funeral contract that is not	730
irrevocable and that is funded by an insurance policy may, on not	731
less than fifteen days' notice, cancel the preneed funeral	732
contract and change the beneficiary of the insurance policy or	733
reassign the benefits under the policy.	734

(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

(2) The trustee of a preneed funeral contract shall notify	766
the purchaser of the contract in writing of the amount of any	767
deposit with the trustee of a payment under the contract within	768
fifteen days of receiving the deposit from the seller of the	769
contract.	770

(3) A trustee may charge a fee for managing a preneed funeral	771
contract trust. The fee shall not exceed the amount regularly or	772
usually charged for similar services rendered by the financial	773
institution when serving as a trustee, and shall be paid only from	774
the income on that trust.	775

(H) No preneed funeral contract shall restrict the purchaser	776
from making the contract irrevocable. On the purchase by an	777
individual of an irrevocable preneed funeral contract, the selling	778
funeral director assumes the legal obligation to provide for the	779
funeral of the individual pursuant to the terms of the contract.	780
No money deposited in a trust fund for an irrevocable preneed	781
contract shall be withdrawn to purchase an insurance policy.	782

(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

(K) For purposes of this section, the seller is deemed to	857
have delivered funeral goods pursuant to a preneed funeral	858
contract when the seller makes actual delivery of the goods to the	859
beneficiary.	860

(L) All sellers of funeral goods or services under a preneed	861
funeral contract, whether funded by insurance or otherwise,	862
annually shall submit to the board of embalmers and funeral	863
directors the reports the board requires.	864

(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

(O) This section does not prohibit persons who are not	887
licensed funeral directors from selling funeral goods pursuant to	888
a preneed funeral contract; however, all sellers of funeral goods	889
pursuant to a preneed funeral contract shall comply with this	890
section unless the seller is specifically exempt from compliance	891
by this section.	892

(P) Any money, insurance policies, or other items delivered	893
in payment of a preneed funeral contract, and any funds held in	894
trust pursuant to this section, are exempt from levy, attachment,	895
or sale to satisfy a judgment or order.	896

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

(C) The remaining one-half of the fees remitted to the board	915
in accordance with division (B) of this section shall be used by	916
the board to administer the preneed recovery fund and to monitor	917
the preneed annual reports filed by sellers of preneed funeral	918
contracts.	919

(D) The board shall adopt rules governing management of the	920
preneed recovery fund, the presentation and processing of	921
applications for reimbursement, and subrogation or assignment of	922
the rights of any reimbursed applicant.	923

(E) The board may expend moneys in the fund for the following	924
purposes:	925

(1) To make reimbursements on approved applications;

926

(2) To purchase insurance to cover losses as deemed	927
appropriate by the board and not inconsistent with the purposes of	928
the fund;	929

(3) To invest such portions of the fund as are not currently	930
needed to reimburse losses and maintain adequate reserves as are	931
permitted to be made by fiduciaries under state law.	932

(F) Reimbursements from the fund shall be made only to the	933
extent to which such losses are not bonded or otherwise covered,	934
protected, or reimbursed, and only after the applicant has	935
complied with all applicable rules of the board.	936

(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

(I) The fund shall not be applied toward any reimbursement on	953
losses on a preneed funeral contract that was entered into prior	954
to the effective date of this section.	955

(J) If at the end of any fiscal year for the state, the	956
balance in the fund exceeds two million dollars, the amount	957
collected from purchasers of preneed funeral contracts during the	958
next fiscal year shall be reduced from ten dollars to five	959
dollars, with all such proceeds to be used by the board in	960
accordance with division (C) of this section.	961

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

Whoever purposely violates section 4717.31 of the Revised	973
Code is guilty of a felony of the fourth degree.	974

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

(1) For taxable years beginning in 2004:

993

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		994
OR		995
MODIFIED OHIO		996
TAXABLE INCOME (TRUSTS)		997
OR		998
OHIO TAXABLE INCOME (ESTATES)	TAX	999

$5,000 or less	.743%	1000
More than $5,000 but not more than $10,000	$37.15 plus 1.486% of the amount in excess of $5,000	1001
More than $10,000 but not more than $15,000	$111.45 plus 2.972% of the amount in excess of $10,000	1002
More than $15,000 but not more than $20,000	$260.05 plus 3.715% of the amount in excess of $15,000	1003
More than $20,000 but not more than $40,000	$445.80 plus 4.457% of the amount in excess of $20,000	1004
More than $40,000 but not more than $80,000	$1,337.20 plus 5.201% of the amount in excess of $40,000	1005
More than $80,000 but not more than $100,000	$3,417.60 plus 5.943% of the amount in excess of $80,000	1006
More than $100,000 but not more than $200,000	$4,606.20 plus 6.9% of the amount in excess of $100,000	1007
More than $200,000	$11,506.20 plus 7.5% of the amount in excess of $200,000	1008

(2) For taxable years beginning in 2005:

1009

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1010
OR		1011
MODIFIED OHIO		1012
TAXABLE INCOME (TRUSTS)		1013
OR		1014
OHIO TAXABLE INCOME (ESTATES)	TAX	1015

$5,000 or less	.712%	1016
More than $5,000 but not more than $10,000	$35.60 plus 1.424% of the amount in excess of $5,000	1017
More than $10,000 but not more than $15,000	$106.80 plus 2.847% of the amount in excess of $10,000	1018
More than $15,000 but not more than $20,000	$249.15 plus 3.559% of the amount in excess of $15,000	1019
More than $20,000 but not more than $40,000	$427.10 plus 4.27% of the amount in excess of $20,000	1020
More than $40,000 but not more than $80,000	$1,281.10 plus 4.983% of the amount in excess of $40,000	1021
More than $80,000 but not more than $100,000	$3,274.30 plus 5.693% of the amount in excess of $80,000	1022
More than $100,000 but not more than $200,000	$4,412.90 plus 6.61% of the amount in excess of $100,000	1023
More than $200,000	$11,022.90 plus 7.185% of the amount in excess of $200,000	1024

(3) For taxable years beginning in 2006:

1025

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1026
OR		1027
MODIFIED OHIO		1028
TAXABLE INCOME (TRUSTS)		1029
OR		1030
OHIO TAXABLE INCOME (ESTATES)	TAX	1031

$5,000 or less	.681%	1032
More than $5,000 but not more than $10,000	$34.05 plus 1.361% of the amount in excess of $5,000	1033
More than $10,000 but not more than $15,000	$102.10 plus 2.722% of the amount in excess of $10,000	1034
More than $15,000 but not more than $20,000	$238.20 plus 3.403% of the amount in excess of $15,000	1035
More than $20,000 but not more than $40,000	$408.35 plus 4.083% of the amount in excess of $20,000	1036
More than $40,000 but not more than $80,000	$1,224.95 plus 4.764% of the amount in excess of $40,000	1037
More than $80,000 but not more than $100,000	$3,130.55 plus 5.444% of the amount in excess of $80,000	1038
More than $100,000 but not more than $200,000	$4,219.35 plus 6.32% of the amount in excess of $100,000	1039
More than $200,000	$10,539.35 plus 6.87% of the amount in excess of $200,000	1040

(4) For taxable years beginning in 2007:

1041

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1042
OR		1043
MODIFIED OHIO		1044
TAXABLE INCOME (TRUSTS)		1045
OR		1046
OHIO TAXABLE INCOME (ESTATES)	TAX	1047

$5,000 or less	.649%	1048
More than $5,000 but not more than $10,000	$32.45 plus 1.299% of the amount in excess of $5,000	1049
More than $10,000 but not more than $15,000	$97.40 plus 2.598% of the amount in excess of $10,000	1050
More than $15,000 but not more than $20,000	$227.30 plus 3.247% of the amount in excess of $15,000	1051
More than $20,000 but not more than $40,000	$389.65 plus 3.895% of the amount in excess of $20,000	1052
More than $40,000 but not more than $80,000	$1,168.65 plus 4.546% of the amount in excess of $40,000	1053
More than $80,000 but not more than $100,000	$2,987.05 plus 5.194% of the amount in excess of $80,000	1054
More than $100,000 but not more than $200,000	$4,025.85 plus 6.031% of the amount in excess of $100,000	1055
More than $200,000	$10,056.85 plus 6.555% of the amount in excess of $200,000	1056

(5) For taxable years beginning in 2008:

1057

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1058
OR		1059
MODIFIED OHIO		1060
TAXABLE INCOME (TRUSTS)		1061
OR		1062
OHIO TAXABLE INCOME (ESTATES)	TAX	1063

$5,000 or less	.618%	1064
More than $5,000 but not more than $10,000	$30.90 plus 1.236% of the amount in excess of $5,000	1065
More than $10,000 but not more than $15,000	$92.70 plus 2.473% of the amount in excess of $10,000	1066
More than $15,000 but not more than $20,000	$216.35 plus 3.091% of the amount in excess of $15,000	1067
More than $20,000 but not more than $40,000	$370.90 plus 3.708% of the amount in excess of $20,000	1068
More than $40,000 but not more than $80,000	$1,112.50 plus 4.327% of the amount in excess of $40,000	1069
More than $80,000 but not more than $100,000	$2,843.30 plus 4.945% of the amount in excess of $80,000	1070
More than $100,000 but not more than $200,000	$3,832.30 plus 5.741% of the amount in excess of $100,000	1071
More than $200,000	$9,573.30 plus 6.24% of the amount in excess of $200,000	1072

(6) For taxable years beginning in 2009 or thereafter:

1073

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1074
OR		1075
MODIFIED OHIO		1076
TAXABLE INCOME (TRUSTS)		1077
OR		1078
OHIO TAXABLE INCOME (ESTATES)	TAX	1079

$5,000 or less	.587%	1080
More than $5,000 but not more than $10,000	$29.35 plus 1.174% of the amount in excess of $5,000	1081
More than $10,000 but not more than $15,000	$88.05 plus 2.348% of the amount in excess of $10,000	1082
More than $15,000 but not more than $20,000	$205.45 plus 2.935% of the amount in excess of $15,000	1083
More than $20,000 but not more than $40,000	$352.20 plus 3.521% of the amount in excess of $20,000	1084
More than $40,000 but not more than $80,000	$1,056.40 plus 4.109% of the amount in excess of $40,000	1085
More than $80,000 but not more than $100,000	$2,700.00 plus 4.695% of the amount in excess of $80,000	1086
More than $100,000 but not more than $200,000	$3,639.00 plus 5.451% of the amount in excess of $100,000	1087
More than $200,000	$9,090.00 plus 5.925% of the amount in excess of $200,000	1088

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

The adjusted amounts apply to taxable years beginning in the	1101
calendar year in which the adjustments are made. The tax	1102
commissioner shall not make such adjustments in any year in which	1103
the amount resulting from the adjustment would be less than the	1104
amount resulting from the adjustment in the preceding year.	1105

(B) If the director of budget and management makes a	1106
certification to the tax commissioner under division (B) of	1107
section 131.44 of the Revised Code, the amount of tax as	1108
determined under division (A) of this section shall be reduced by	1109
the percentage prescribed in that certification for taxable years	1110
beginning in the calendar year in which that certification is	1111
made.	1112

(C) The levy of this tax on income does not prevent a	1113
municipal corporation, a joint economic development zone created	1114
under section 715.691, or a joint economic development district	1115
created under section 715.70 or 715.71 or sections 715.72 to	1116
715.81 of the Revised Code from levying a tax on income.	1117

(D) This division applies only to taxable years of a trust	1118
beginning in 2002 or thereafter.	1119

(1) The tax imposed by this section on a trust shall be	1120
computed by multiplying the Ohio modified taxable income of the	1121
trust by the rates prescribed by division (A) of this section.	1122

(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