Sub. S. B. No. 196 As Passed by the House

As Passed by the House

127th General Assembly

Regular Session

2007-2008

Sub. S. B. No. 196

Senator Schaffer

Cosponsors: Senators Carey, Cates, Schuler, Austria, Fedor, Harris, Jacobson, Kearney, Mason, Mumper, Niehaus, Padgett, Roberts, Sawyer, Smith, Spada, Wagoner
Representatives Bacon, Beatty, Collier, Daniels, Domenick, Fessler, Flowers, Gerberry, Grady, Hughes, Letson, Newcomb, Schindel, Schlichter, Setzer, Skindell, Yuko

A BILL

To amend sections 1151.345, 1161.59, 1733.51,

2108.81, 2117.251, 3103.03, 3901.04, 3901.21,

3905.451, 3923.80, 4717.01, 4717.03, 4717.13,

4717.14, 4717.99, and 5747.02, to enact

sections 4717.31 to 4717.38, and to repeal

sections 1111.19 and 1111.99 of the Revised

Code to revise the Preneed Funeral Contract Law

and to exempt the requirement that health

insurers cover routine patient care administered

during a cancer clinical trial from the

requirements regarding mandated health benefit

review.

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

Section 1. That sections 1151.345, 1161.59, 1733.51,	13
2108.81, 2117.251, 3103.03, 3901.04, 3901.21, 3905.451, 3923.80,	14
4717.01, 4717.03, 4717.13, 4717.14, 4717.99, and 5747.02 be	15
amended and sections 4717.31, 4717.32, 4717.33, 4717.34,	16
4717.35, 4717.36, 4717.37, and 4717.38 of the Revised Code be	17
enacted to read as follows:	18

Sec. 1151.345. A savings and loan association, in accordance	19
with sections ~~1111.19 and~~ 1721.211 and 4717.31 to 4717.38 of the	20
Revised Code, may receive and hold on deposit moneys under a	21
preneed funeral contract or a preneed cemetery merchandise and	22
services contract.	23

Sec. 1161.59. In accordance with sections ~~1111.19 and~~	24
1721.211 and 4717.31 to 4717.38 of the Revised Code, a savings	25
bank may receive and hold on deposit moneys under a preneed	26
funeral contract or a preneed cemetery merchandise and services	27
contract.	28

Sec. 1733.51. A credit union may, subject to sections	29
~~1111.19 and~~ 1721.211 and 4717.31 to 4717.38 of the Revised Code,	30
receive and hold on deposit moneys under a preneed funeral	31
contract or preneed cemetery merchandise and services contract.	32

Sec. 2108.81. (A) If either of the following is true,	33
division (B) of this section shall apply:	34

(1) An adult has not executed a written declaration pursuant	35
to sections 2108.70 to 2108.73 of the Revised Code that remains in	36
force at the time of the adult's death.	37

(2) Each person to whom the right of disposition has been	38
assigned or reassigned pursuant to a written declaration is	39
disqualified from exercising the right as described in section	40
2108.75 of the Revised Code.	41

(B) Subject to division (A) of this section and sections	42
2108.75 and 2108.79 of the Revised Code, the right of disposition	43
is assigned to the following persons, if mentally competent adults	44
who can be located with reasonable effort, in the order of	45
priority stated:	46

(1) The deceased person's surviving spouse;

(2) The sole surviving child of the deceased person or, if	48
there is more than one surviving child, all of the surviving	49
children, collectively.;	50

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

(4) The deceased person's surviving sibling, whether of the	52
whole or of the half blood or, if there is more than one sibling	53
of the whole or of the half blood, all of the surviving siblings,	54
collectively;	55

(5) The deceased person's surviving grandparent or	56
grandparents;	57

(6) The deceased person's surviving grandchild, or if there	58
is more than one surviving grandchild, all of the surviving	59
grandchildren collectively;	60

(7) The lineal descendants of the deceased person's	61
grandparents, as described in division (I) of section 2105.06 of	62
the Revised Code;	63

~~(7)~~(8) The person who was the deceased person's guardian at	64
the time of the deceased person's death, if a guardian had been	65
appointed;	66

~~(8)~~(9) Any other person willing to assume the right of	67
disposition, including the personal representative of the deceased	68
person's estate or the licensed funeral director with custody of	69
the deceased person's body, after attesting in writing that a good	70
faith effort has been made to locate the persons in divisions	71
(B)(1) to ~~(7)~~(8) of this section.	72

(10) If the deceased person was an indigent person or other	73
person the final disposition of whose body is the financial and	74
statutory responsibility of the state or a political subdivision	75
of this state, the public officer or employee responsible for	76
arranging the final disposition of the remains of the deceased	77
person.	78

Sec. 2117.251. A claim under the bill of a funeral director	79
pursuant to section 2117.25 of the Revised Code arises subsequent	80
to the death of the decedent and is not in satisfaction of a	81
personal obligation of the individual during the individual's	82
lifetime. If a decedent during the decedent's lifetime has	83
purchased an irrevocable preneed funeral contract pursuant to	84
section ~~1111.19~~4717.34 of the Revised Code, then those provisions	85
of section 2117.25 of the Revised Code that relate to the bill of	86
a funeral director, including divisions (A) and (B) of that	87
section, do not apply to the estate of the decedent and the estate	88
is not liable for the funeral expenses of the decedent.	89

Sec. 3103.03. (A) Each married person must support the	90
person's self and spouse out of the person's property or by the	91
person's labor. If a married person is unable to do so, the spouse	92
of the married person must assist in the support so far as the	93
spouse is able. The biological or adoptive parent of a minor child	94
must support the parent's minor children out of the parent's	95
property or by the parent's labor.	96

(B) Notwithstanding section 3109.01 of the Revised Code and	97
to the extent provided in section ~~3319.86~~3119.86 of the Revised	98
Code, the parental duty of support to children shall continue	99
beyond the age of majority as long as the child continuously	100
attends on a full-time basis any recognized and accredited high	101
school. That duty of support shall continue during seasonal	102
vacation periods.	103

(C) If a married person neglects to support the person's	104
spouse in accordance with this section, any other person, in good	105
faith, may supply the spouse with necessaries for the support of	106
the spouse and recover the reasonable value of the necessaries	107
supplied from the married person who neglected to support the	108
spouse unless the spouse abandons that person without cause.	109

(D) If a parent neglects to support the parent's minor child	110
in accordance with this section and if the minor child in question	111
is unemancipated, any other person, in good faith, may supply the	112
minor child with necessaries for the support of the minor child	113
and recover the reasonable value of the necessaries supplied from	114
the parent who neglected to support the minor child.	115

(E) If a decedent during the decedent's lifetime has	116
purchased an irrevocable preneed funeral contract pursuant to	117
section ~~1109.75~~4717.34 of the Revised Code, then the duty of	118
support owed to a spouse pursuant to this section does not include	119
an obligation to pay for the funeral expenses of the deceased	120
spouse. This division does not preclude a surviving spouse from	121
assuming by contract the obligation to pay for the funeral	122
expenses of the deceased spouse.	123

Sec. 3901.04. (A) As used in this section:

124

(1) "Laws of this state relating to insurance" include but	125
are not limited to Chapter 1751. notwithstanding section 1751.08,	126
Chapter 1753., Title XXXIX, sections 5725.18 to 5725.25, and	127
Chapter 5729. of the Revised Code. Sections 4717.31, 4717.33,	128
4717.34, 4717.35, and 4717.37 of the Revised Code are "laws of	129
this state relating to insurance" to the extent those sections	130
apply to insurance companies or insurance agents.	131

(2) "Person" has the meaning defined in division (A) of	132
section 3901.19 of the Revised Code.	133

(B) Whenever it appears to the superintendent of insurance,	134
from the superintendent's files, upon complaint or otherwise, that	135
any person has engaged in, is engaged in, or is about to engage in	136
any act or practice declared to be illegal or prohibited by the	137
laws of this state relating to insurance, or defined as unfair or	138
deceptive by such laws, or when the superintendent believes it to	139
be in the best interest of the public and necessary for the	140
protection of the people in this state, the superintendent or	141
anyone designated by the superintendent under the superintendent's	142
official seal may do any one or more of the following:	143

(1) Require any person to file with the superintendent, on a	144
form that is appropriate for review by the superintendent, an	145
original or additional statement or report in writing, under oath	146
or otherwise, as to any facts or circumstances concerning the	147
person's conduct of the business of insurance within this state	148
and as to any other information that the superintendent considers	149
to be material or relevant to such business;	150

(2) Administer oaths, summon and compel by order or subpoena	151
the attendance of witnesses to testify in relation to any matter	152
which, by the laws of this state relating to insurance, is the	153
subject of inquiry and investigation, and require the production	154
of any book, paper, or document pertaining to such matter. A	155
subpoena, notice, or order under this section may be served by	156
certified mail, return receipt requested. If the subpoena, notice,	157
or order is returned because of inability to deliver, or if no	158
return is received within thirty days of the date of mailing, the	159
subpoena, notice, or order may be served by ordinary mail. If no	160
return of ordinary mail is received within thirty days after the	161
date of mailing, service shall be deemed to have been made. If the	162
subpoena, notice, or order is returned because of inability to	163
deliver, the superintendent may designate a person or persons to	164
effect either personal or residence service upon the witness.	165
Service of any subpoena, notice, or order and return may also be	166
made in any manner authorized under the Rules of Civil Procedure.	167
Such service shall be made by an employee of the department	168
designated by the superintendent, a sheriff, a deputy sheriff, an	169
attorney, or any person authorized by the Rules of Civil Procedure	170
to serve process.	171

In the case of disobedience of any notice, order, or subpoena	172
served on a person or the refusal of a witness to testify to a	173
matter regarding which the person may lawfully be interrogated,	174
the court of common pleas of the county where venue is	175
appropriate, on application by the superintendent, may compel	176
obedience by attachment proceedings for contempt, as in the case	177
of disobedience of the requirements of a subpoena issued from such	178
court, or a refusal to testify therein. Witnesses shall receive	179
the fees and mileage allowed by section 2335.06 of the Revised	180
Code. All such fees, upon the presentation of proper vouchers	181
approved by the superintendent, shall be paid out of the	182
appropriation for the contingent fund of the department of	183
insurance. The fees and mileage of witnesses not summoned by the	184
superintendent or the superintendent's designee shall not be paid	185
by the state.	186

(3) In a case in which there is no administrative procedure	187
available to the superintendent to resolve a matter at issue,	188
request the attorney general to commence an action for a	189
declaratory judgment under Chapter 2721. of the Revised Code with	190
respect to the matter.	191

(4) Initiate criminal proceedings by presenting evidence of	192
the commission of any criminal offense established under the laws	193
of this state relating to insurance to the prosecuting attorney of	194
any county in which the offense may be prosecuted. At the request	195
of the prosecuting attorney, the attorney general may assist in	196
the prosecution of the violation with all the rights, privileges,	197
and powers conferred by law on prosecuting attorneys including,	198
but not limited to, the power to appear before grand juries and to	199
interrogate witnesses before grand juries.	200

Sec. 3901.21. The following are hereby defined as unfair and	201
deceptive acts or practices in the business of insurance:	202

(A) Making, issuing, circulating, or causing or permitting to	203
be made, issued, or circulated, or preparing with intent to so	204
use, any estimate, illustration, circular, or statement	205
misrepresenting the terms of any policy issued or to be issued or	206
the benefits or advantages promised thereby or the dividends or	207
share of the surplus to be received thereon, or making any false	208
or misleading statements as to the dividends or share of surplus	209
previously paid on similar policies, or making any misleading	210
representation or any misrepresentation as to the financial	211
condition of any insurer as shown by the last preceding verified	212
statement made by it to the insurance department of this state, or	213
as to the legal reserve system upon which any life insurer	214
operates, or using any name or title of any policy or class of	215
policies misrepresenting the true nature thereof, or making any	216
misrepresentation or incomplete comparison to any person for the	217
purpose of inducing or tending to induce such person to purchase,	218
amend, lapse, forfeit, change, or surrender insurance.	219

Any written statement concerning the premiums for a policy	220
which refers to the net cost after credit for an assumed dividend,	221
without an accurate written statement of the gross premiums, cash	222
values, and dividends based on the insurer's current dividend	223
scale, which are used to compute the net cost for such policy, and	224
a prominent warning that the rate of dividend is not guaranteed,	225
is a misrepresentation for the purposes of this division.	226

(B) Making, publishing, disseminating, circulating, or	227
placing before the public or causing, directly or indirectly, to	228
be made, published, disseminated, circulated, or placed before the	229
public, in a newspaper, magazine, or other publication, or in the	230
form of a notice, circular, pamphlet, letter, or poster, or over	231
any radio station, or in any other way, or preparing with intent	232
to so use, an advertisement, announcement, or statement containing	233
any assertion, representation, or statement, with respect to the	234
business of insurance or with respect to any person in the conduct	235
of the person's insurance business, which is untrue, deceptive, or	236
misleading.	237

(C) Making, publishing, disseminating, or circulating,	238
directly or indirectly, or aiding, abetting, or encouraging the	239
making, publishing, disseminating, or circulating, or preparing	240
with intent to so use, any statement, pamphlet, circular, article,	241
or literature, which is false as to the financial condition of an	242
insurer and which is calculated to injure any person engaged in	243
the business of insurance.	244

(D) Filing with any supervisory or other public official, or	245
making, publishing, disseminating, circulating, or delivering to	246
any person, or placing before the public, or causing directly or	247
indirectly to be made, published, disseminated, circulated,	248
delivered to any person, or placed before the public, any false	249
statement of financial condition of an insurer.	250

Making any false entry in any book, report, or statement of	251
any insurer with intent to deceive any agent or examiner lawfully	252
appointed to examine into its condition or into any of its	253
affairs, or any public official to whom such insurer is required	254
by law to report, or who has authority by law to examine into its	255
condition or into any of its affairs, or, with like intent,	256
willfully omitting to make a true entry of any material fact	257
pertaining to the business of such insurer in any book, report, or	258
statement of such insurer, or mutilating, destroying, suppressing,	259
withholding, or concealing any of its records.	260

(E) Issuing or delivering or permitting agents, officers, or	261
employees to issue or deliver agency company stock or other	262
capital stock or benefit certificates or shares in any common-law	263
corporation or securities or any special or advisory board	264
contracts or other contracts of any kind promising returns and	265
profits as an inducement to insurance.	266

(F) Making or permitting any unfair discrimination among	267
individuals of the same class and equal expectation of life in the	268
rates charged for any contract of life insurance or of life	269
annuity or in the dividends or other benefits payable thereon, or	270
in any other of the terms and conditions of such contract.	271

(G)(1) Except as otherwise expressly provided by law,	272
knowingly permitting or offering to make or making any contract of	273
life insurance, life annuity or accident and health insurance, or	274
agreement as to such contract other than as plainly expressed in	275
the contract issued thereon, or paying or allowing, or giving or	276
offering to pay, allow, or give, directly or indirectly, as	277
inducement to such insurance, or annuity, any rebate of premiums	278
payable on the contract, or any special favor or advantage in the	279
dividends or other benefits thereon, or any valuable consideration	280
or inducement whatever not specified in the contract; or giving,	281
or selling, or purchasing, or offering to give, sell, or purchase,	282
as inducement to such insurance or annuity or in connection	283
therewith, any stocks, bonds, or other securities, or other	284
obligations of any insurance company or other corporation,	285
association, or partnership, or any dividends or profits accrued	286
thereon, or anything of value whatsoever not specified in the	287
contract.	288

(2) Nothing in division (F) or division (G)(1) of this	289
section shall be construed as prohibiting any of the following	290
practices: (a) in the case of any contract of life insurance or	291
life annuity, paying bonuses to policyholders or otherwise abating	292
their premiums in whole or in part out of surplus accumulated from	293
nonparticipating insurance, provided that any such bonuses or	294
abatement of premiums shall be fair and equitable to policyholders	295
and for the best interests of the company and its policyholders;	296
(b) in the case of life insurance policies issued on the	297
industrial debit plan, making allowance to policyholders who have	298
continuously for a specified period made premium payments directly	299
to an office of the insurer in an amount which fairly represents	300
the saving in collection expenses; (c) readjustment of the rate of	301
premium for a group insurance policy based on the loss or expense	302
experience thereunder, at the end of the first or any subsequent	303
policy year of insurance thereunder, which may be made retroactive	304
only for such policy year.	305

(H) Making, issuing, circulating, or causing or permitting to	306
be made, issued, or circulated, or preparing with intent to so	307
use, any statement to the effect that a policy of life insurance	308
is, is the equivalent of, or represents shares of capital stock or	309
any rights or options to subscribe for or otherwise acquire any	310
such shares in the life insurance company issuing that policy or	311
any other company.	312

(I) Making, issuing, circulating, or causing or permitting to	313
be made, issued or circulated, or preparing with intent to so	314
issue, any statement to the effect that payments to a policyholder	315
of the principal amounts of a pure endowment are other than	316
payments of a specific benefit for which specific premiums have	317
been paid.	318

(J) Making, issuing, circulating, or causing or permitting to	319
be made, issued, or circulated, or preparing with intent to so	320
use, any statement to the effect that any insurance company was	321
required to change a policy form or related material to comply	322
with Title XXXIX of the Revised Code or any regulation of the	323
superintendent of insurance, for the purpose of inducing or	324
intending to induce any policyholder or prospective policyholder	325
to purchase, amend, lapse, forfeit, change, or surrender	326
insurance.	327

(K) Aiding or abetting another to violate this section.

328

(L) Refusing to issue any policy of insurance, or canceling	329
or declining to renew such policy because of the sex or marital	330
status of the applicant, prospective insured, insured, or	331
policyholder.	332

(M) Making or permitting any unfair discrimination between	333
individuals of the same class and of essentially the same hazard	334
in the amount of premium, policy fees, or rates charged for any	335
policy or contract of insurance, other than life insurance, or in	336
the benefits payable thereunder, or in underwriting standards and	337
practices or eligibility requirements, or in any of the terms or	338
conditions of such contract, or in any other manner whatever.	339

(N) Refusing to make available disability income insurance	340
solely because the applicant's principal occupation is that of	341
managing a household.	342

(O) Refusing, when offering maternity benefits under any	343
individual or group sickness and accident insurance policy, to	344
make maternity benefits available to the policyholder for the	345
individual or individuals to be covered under any comparable	346
policy to be issued for delivery in this state, including family	347
members if the policy otherwise provides coverage for family	348
members. Nothing in this division shall be construed to prohibit	349
an insurer from imposing a reasonable waiting period for such	350
benefits under an individual sickness and accident insurance	351
policy issued to an individual who is not a federally eligible	352
individual or a nonemployer-related group sickness and accident	353
insurance policy, but in no event shall such waiting period exceed	354
two hundred seventy days.	355

For purposes of division (O) of this section, "federally	356
eligible individual" means an eligible individual as defined in 45	357
C.F.R. 148.103.	358

(P) Using, or permitting to be used, a pattern settlement as	359
the basis of any offer of settlement. As used in this division,	360
"pattern settlement" means a method by which liability is	361
routinely imputed to a claimant without an investigation of the	362
particular occurrence upon which the claim is based and by using a	363
predetermined formula for the assignment of liability arising out	364
of occurrences of a similar nature. Nothing in this division shall	365
be construed to prohibit an insurer from determining a claimant's	366
liability by applying formulas or guidelines to the facts and	367
circumstances disclosed by the insurer's investigation of the	368
particular occurrence upon which a claim is based.	369

(Q) Refusing to insure, or refusing to continue to insure, or	370
limiting the amount, extent, or kind of life or sickness and	371
accident insurance or annuity coverage available to an individual,	372
or charging an individual a different rate for the same coverage	373
solely because of blindness or partial blindness. With respect to	374
all other conditions, including the underlying cause of blindness	375
or partial blindness, persons who are blind or partially blind	376
shall be subject to the same standards of sound actuarial	377
principles or actual or reasonably anticipated actuarial	378
experience as are sighted persons. Refusal to insure includes, but	379
is not limited to, denial by an insurer of disability insurance	380
coverage on the grounds that the policy defines "disability" as	381
being presumed in the event that the eyesight of the insured is	382
lost. However, an insurer may exclude from coverage disabilities	383
consisting solely of blindness or partial blindness when such	384
conditions existed at the time the policy was issued. To the	385
extent that the provisions of this division may appear to conflict	386
with any provision of section 3999.16 of the Revised Code, this	387
division applies.	388

(R)(1) Directly or indirectly offering to sell, selling, or	389
delivering, issuing for delivery, renewing, or using or otherwise	390
marketing any policy of insurance or insurance product in	391
connection with or in any way related to the grant of a student	392
loan guaranteed in whole or in part by an agency or commission of	393
this state or the United States, except insurance that is required	394
under federal or state law as a condition for obtaining such a	395
loan and the premium for which is included in the fees and charges	396
applicable to the loan; or, in the case of an insurer or insurance	397
agent, knowingly permitting any lender making such loans to engage	398
in such acts or practices in connection with the insurer's or	399
agent's insurance business.	400

(2) Except in the case of a violation of division (G) of this	401
section, division (R)(1) of this section does not apply to either	402
of the following:	403

(a) Acts or practices of an insurer, its agents,	404
representatives, or employees in connection with the grant of a	405
guaranteed student loan to its insured or the insured's spouse or	406
dependent children where such acts or practices take place more	407
than ninety days after the effective date of the insurance;	408

(b) Acts or practices of an insurer, its agents,	409
representatives, or employees in connection with the solicitation,	410
processing, or issuance of an insurance policy or product covering	411
the student loan borrower or the borrower's spouse or dependent	412
children, where such acts or practices take place more than one	413
hundred eighty days after the date on which the borrower is	414
notified that the student loan was approved.	415

(S) Denying coverage, under any health insurance or health	416
care policy, contract, or plan providing family coverage, to any	417
natural or adopted child of the named insured or subscriber solely	418
on the basis that the child does not reside in the household of	419
the named insured or subscriber.	420

(T)(1) Using any underwriting standard or engaging in any	421
other act or practice that, directly or indirectly, due solely to	422
any health status-related factor in relation to one or more	423
individuals, does either of the following:	424

(a) Terminates or fails to renew an existing individual	425
policy, contract, or plan of health benefits, or a health benefit	426
plan issued to an employer, for which an individual would	427
otherwise be eligible;	428

(b) With respect to a health benefit plan issued to an	429
employer, excludes or causes the exclusion of an individual from	430
coverage under an existing employer-provided policy, contract, or	431
plan of health benefits.	432

(2) The superintendent of insurance may adopt rules in	433
accordance with Chapter 119. of the Revised Code for purposes of	434
implementing division (T)(1) of this section.	435

(3) For purposes of division (T)(1) of this section, "health	436
status-related factor" means any of the following:	437

(a) Health status;

438

(b) Medical condition, including both physical and mental	439
illnesses;	440

441

(d) Receipt of health care;

442

(e) Medical history;

443

(f) Genetic information;

444

(g) Evidence of insurability, including conditions arising	445
out of acts of domestic violence;	446

(h) Disability.

447

(U) With respect to a health benefit plan issued to a small	448
employer, as those terms are defined in section 3924.01 of the	449
Revised Code, negligently or willfully placing coverage for	450
adverse risks with a certain carrier, as defined in section	451
3924.01 of the Revised Code.	452

(V) Using any program, scheme, device, or other unfair act or	453
practice that, directly or indirectly, causes or results in the	454
placing of coverage for adverse risks with another carrier, as	455
defined in section 3924.01 of the Revised Code.	456

(W) Failing to comply with section 3923.23, 3923.231,	457
3923.232, 3923.233, or 3923.234 of the Revised Code by engaging in	458
any unfair, discriminatory reimbursement practice.	459

(X) Intentionally establishing an unfair premium for, or	460
misrepresenting the cost of, any insurance policy financed under a	461
premium finance agreement of an insurance premium finance company.	462

(Y)(1)(a) Limiting coverage under, refusing to issue,	463
canceling, or refusing to renew, any individual policy or contract	464
of life insurance, or limiting coverage under or refusing to issue	465
any individual policy or contract of health insurance, for the	466
reason that the insured or applicant for insurance is or has been	467
a victim of domestic violence;	468

(b) Adding a surcharge or rating factor to a premium of any	469
individual policy or contract of life or health insurance for the	470
reason that the insured or applicant for insurance is or has been	471
a victim of domestic violence;	472

(c) Denying coverage under, or limiting coverage under, any	473
policy or contract of life or health insurance, for the reason	474
that a claim under the policy or contract arises from an incident	475
of domestic violence;	476

(d) Inquiring, directly or indirectly, of an insured under,	477
or of an applicant for, a policy or contract of life or health	478
insurance, as to whether the insured or applicant is or has been a	479
victim of domestic violence, or inquiring as to whether the	480
insured or applicant has sought shelter or protection from	481
domestic violence or has sought medical or psychological treatment	482
as a victim of domestic violence.	483

(2) Nothing in division (Y)(1) of this section shall be	484
construed to prohibit an insurer from inquiring as to, or from	485
underwriting or rating a risk on the basis of, a person's physical	486
or mental condition, even if the condition has been caused by	487
domestic violence, provided that all of the following apply:	488

(a) The insurer routinely considers the condition in	489
underwriting or in rating risks, and does so in the same manner	490
for a victim of domestic violence as for an insured or applicant	491
who is not a victim of domestic violence;	492

(b) The insurer does not refuse to issue any policy or	493
contract of life or health insurance or cancel or refuse to renew	494
any policy or contract of life insurance, solely on the basis of	495
the condition, except where such refusal to issue, cancellation,	496
or refusal to renew is based on sound actuarial principles or is	497
related to actual or reasonably anticipated experience;	498

(c) The insurer does not consider a person's status as being	499
or as having been a victim of domestic violence, in itself, to be	500
a physical or mental condition;	501

(d) The underwriting or rating of a risk on the basis of the	502
condition is not used to evade the intent of division (Y)(1) of	503
this section, or of any other provision of the Revised Code.	504

(3)(a) Nothing in division (Y)(1) of this section shall be	505
construed to prohibit an insurer from refusing to issue a policy	506
or contract of life insurance insuring the life of a person who is	507
or has been a victim of domestic violence if the person who	508
committed the act of domestic violence is the applicant for the	509
insurance or would be the owner of the insurance policy or	510
contract.	511

(b) Nothing in division (Y)(2) of this section shall be	512
construed to permit an insurer to cancel or refuse to renew any	513
policy or contract of health insurance in violation of the "Health	514
Insurance Portability and Accountability Act of 1996," 110 Stat.	515
1955, 42 U.S.C.A. 300gg-41(b), as amended, or in a manner that	516
violates or is inconsistent with any provision of the Revised Code	517
that implements the "Health Insurance Portability and	518
Accountability Act of 1996."	519

(4) An insurer is immune from any civil or criminal liability	520
that otherwise might be incurred or imposed as a result of any	521
action taken by the insurer to comply with division (Y) of this	522
section.	523

(5) As used in division (Y) of this section, "domestic	524
violence" means any of the following acts:	525

(a) Knowingly causing or attempting to cause physical harm to	526
a family or household member;	527

(b) Recklessly causing serious physical harm to a family or	528
household member;	529

(c) Knowingly causing, by threat of force, a family or	530
household member to believe that the person will cause imminent	531
physical harm to the family or household member.	532

For the purpose of division (Y)(5) of this section, "family	533
or household member" has the same meaning as in section 2919.25 of	534
the Revised Code.	535

Nothing in division (Y)(5) of this section shall be construed	536
to require, as a condition to the application of division (Y) of	537
this section, that the act described in division (Y)(5) of this	538
section be the basis of a criminal prosecution.	539

(Z) Disclosing a coroner's records by an insurer in violation	540
of section 313.10 of the Revised Code.	541

(AA) Making, issuing, circulating, or causing or permitting	542
to be made, issued, or circulated any statement or representation	543
that a life insurance policy or annuity is a contract for the	544
purchase of funeral goods or services.	545

With respect to private passenger automobile insurance, no	546
insurer shall charge different premium rates to persons residing	547
within the limits of any municipal corporation based solely on the	548
location of the residence of the insured within those limits.	549

The enumeration in sections 3901.19 to 3901.26 of the Revised	550
Code of specific unfair or deceptive acts or practices in the	551
business of insurance is not exclusive or restrictive or intended	552
to limit the powers of the superintendent of insurance to adopt	553
rules to implement this section, or to take action under other	554
sections of the Revised Code.	555

This section does not prohibit the sale of shares of any	556
investment company registered under the "Investment Company Act of	557
1940," 54 Stat. 789, 15 U.S.C.A. 80a-1, as amended, or any	558
policies, annuities, or other contracts described in section	559
3907.15 of the Revised Code.	560

As used in this section, "estimate," "statement,"	561
"representation," "misrepresentation," "advertisement," or	562
"announcement" includes oral or written occurrences.	563

Sec. 3905.451. A life insurance policy or annuity that is	564
issued, sold, or assigned for the purpose of purchasing funeral	565
or burial goods or services, and the contractual obligation to	566
provide the goods or services, are not subject to section ~~1111.19~~	567
4717.36 of the Revised Code.	568

Sec. 3923.80. (A) NoNotwithstanding section 3901.71 of the	569
Revised Code, no health benefit plan or public employee benefit	570
plan shall deny coverage for the costs of any routine patient	571
care administered to an insured participating in any stage of an	572
eligible cancer clinical trial, if that care would be covered	573
under the plan if the insured was not participating in a clinical	574
trial.	575

(B) The coverage that may not be excluded under division (A)	576
of this section is subject to all terms, conditions, restrictions,	577
exclusions, and limitations that apply to any other coverage under	578
the plan, policy, or arrangement for services performed by	579
participating and nonparticipating providers. Nothing in this	580
section shall be construed as requiring reimbursement to a	581
provider or facility providing the routine care that does not have	582
a health care contract with the entity issuing the health benefit	583
plan or public employee benefit plan, or as prohibiting the entity	584
issuing a health benefit plan or public employee benefit plan that	585
does not have a health care contract with the provider or	586
facility providing the routine care from negotiating a single case	587
or other agreement for coverage.	588

589

(1) "Eligible cancer clinical trial" means a cancer clinical	590
trial that meets all of the following criteria:	591

(a) A purpose of the trial is to test whether the	592
intervention potentially improves the trial participant's health	593
outcomes.	594

(b) The treatment provided as part of the trial is given with	595
the intention of improving the trial participant's health	596
outcomes.	597

(c) The trial has a therapeutic intent and is not designed	598
exclusively to test toxicity or disease pathophysiology.	599

(d) The trial does one of the following:

600

(i) Tests how to administer a health care service, item, or	601
drug for the treatment of cancer;	602

(ii) Tests responses to a health care service, item, or drug	603
for the treatment of cancer;	604

(iii) Compares the effectiveness of a health care service,	605
item, or drug for the treatment of cancer with that of other	606
health care services, items, or drugs for the treatment of cancer;	607

(iv) Studies new uses of a health care service, item, or drug	608
for the treatment of cancer.	609

(e) The trial is approved by one of the following entities:

610

(i) The national institutes of health or one of its	611
cooperative groups or centers under the United States department	612
of health and human services;	613

(ii) The United States food and drug administration;

614

(iii) The United States department of defense;

615

(iv) The United States department of veterans' affairs.

616

(2) "Subject of a cancer clinical trial" means the health	617
care service, item, or drug that is being evaluated in the	618
clinical trial and that is not routine patient care.	619

(3) "Health benefit plan" has the same meaning as in section	620
3924.01 of the Revised Code.	621

(4) "Routine patient care" means all health care services	622
consistent with the coverage provided in the health benefit plan	623
or public employee benefit plan for the treatment of cancer,	624
including the type and frequency of any diagnostic modality,	625
that is typically covered for a cancer patient who is not	626
enrolled in a cancer clinical trial, and that was not	627
necessitated solely because of the trial.	628

(5) For purposes of this section, a health benefit plan or	629
public employee benefit plan may exclude coverage for any of the	630
following:	631

(a) A health care service, item, or drug that is the subject	632
of the cancer clinical trial;	633

(b) A health care service, item, or drug provided solely to	634
satisfy data collection and analysis needs for the cancer clinical	635
trial that is not used in the direct clinical management of the	636
patient;	637

(c) An investigational or experimental drug or device that	638
has not been approved for market by the United States food and	639
drug administration;	640

(d) Transportation, lodging, food, or other expenses for the	641
patient, or a family member or companion of the patient, that are	642
associated with the travel to or from a facility providing the	643
cancer clinical trial;	644

(e) An item or drug provided by the cancer clinical trial	645
sponsors free of charge for any patient;	646

(f) A service, item, or drug that is eligible for	647
reimbursement by a person other than the insurer, including the	648
sponsor of the cancer clinical trial.	649

Sec. 4717.01. As used in this chapter:

650

(A) "Embalming" means the preservation and disinfection, or	651
attempted preservation and disinfection, of the dead human body by	652
application of chemicals externally, internally, or both.	653

(B) "Funeral business" means a sole proprietorship,	654
partnership, corporation, limited liability company, or other	655
business entity that is engaged in funeral directing for profit or	656
for free from one or more funeral homes licensed under this	657
chapter.	658

(C) "Funeral directing" means the business or profession of	659
directing or supervising funerals for profit, the arrangement or	660
sale of funeral services, the filling out or execution of a	661
funeral service contract, the business or profession of preparing	662
dead human bodies for burial by means other than embalming, the	663
disposition of dead human bodies, the provision or maintenance of	664
a place for the preparation, the care, or disposition of dead	665
human bodies, the use in connection with a business of the term	666
"funeral director," "undertaker," "mortician," or any other term	667
from which can be implied the business of funeral directing, or	668
the holding out to the public that one is a funeral director or a	669
disposer of dead human bodies.	670

(D) "Funeral home" means a fixed place for the care,	671
preparation for burial, or disposition of dead human bodies or the	672
conducting of funerals. Each business location is a funeral home,	673
regardless of common ownership or management.	674

(E) "Embalmer" means a person who engages, in whole or in	675
part, in embalming and who is licensed under this chapter.	676

(F) "Funeral director" means a person who engages, in whole	677
or in part, in funeral directing and who is licensed under this	678
chapter.	679

(G) "Final disposition" has the same meaning as in division	680
(J) of section 3705.01 of the Revised Code.	681

(H) "Supervision" means the operation of all phases of the	682
business of funeral directing or embalming under the specific	683
direction of a licensed funeral director or licensed embalmer.	684

(I) "Direct supervision" means the physical presence of a	685
licensed funeral director or licensed embalmer while the specific	686
functions of the funeral or embalming are being carried out.	687

(J) "Embalming facility" means a fixed location, separate	688
from the funeral home, that is licensed under this chapter whose	689
only function is the embalming and preparation of dead human	690
bodies.	691

(K) "Crematory facility" means the physical location at which	692
a cremation chamber is located and the cremation process takes	693
place. "Crematory facility" does not include an infectious waste	694
incineration facility for which a license is held under division	695
(B) of section 3734.05 of the Revised Code, or a solid waste	696
incineration facility for which a license is held under division	697
(A) of that section that includes a notation pursuant to division	698
(B)(3) of that section authorizing the facility to also treat	699
infectious wastes, in connection with the incineration of body	700
parts other than dead human bodies that were donated to science	701
for purposes of medical education or research.	702

(L) "Crematory" means the building or portion of a building	703
that houses the holding facility and the cremation chamber.	704

(M) "Cremation" means the technical process of using heat and	705
flame to reduce human or animal remains to bone fragments or ashes	706
or any combination thereof. "Cremation" includes processing and	707
may include the pulverization of bone fragments.	708

(N) "Cremation chamber" means the enclosed space within which	709
cremation takes place.	710

(O) "Cremated remains" means all human or animal remains	711
recovered after the completion of the cremation process, which may	712
include the residue of any foreign matter such as casket material,	713
dental work, or eyeglasses that were cremated with the human or	714
animal remains.	715

(P) "Lapsed license" means a license issued under this	716
chapter that has become invalid because of the failure of the	717
licensee to renew the license within the time limits prescribed	718
under this chapter.	719

(Q) "Operator of a crematory facility" means the sole	720
proprietorship, partnership, corporation, limited liability	721
company, or other business entity responsible for the overall	722
operation of a crematory facility.	723

(R) "Processing" means the reduction of identifiable bone	724
fragments to unidentifiable bone fragments through manual or	725
mechanical means after the completion of the cremation process.	726

(S) "Pulverization" means the reduction of identifiable bone	727
fragments to granulated particles by manual or mechanical means	728
after the completion of the cremation process.	729

(T) "Preneed funeral contract" means a written agreement,	730
contract, or series of contracts to sell or otherwise provide any	731
funeral services, funeral goods, or any combination thereof to be	732
used in connection with the funeral or final disposition of a	733
dead human body, where payment for the goods or services is made	734
either outright or on an installment basis, prior to the death of	735
the person purchasing the goods or services or for whom the goods	736
or services are purchased. "Preneed funeral contract" does not	737
include any preneed cemetery merchandise and services contract or	738
any agreement, contract, or series of contracts pertaining to the	739
sale of any burial lot, burial or interment right, entombment	740
right, or columbarium right with respect to which an endowment	741
care fund is established or is exempt from establishment pursuant	742
to section 1721.21 of the Revised Code.	743

For the purposes of division (T) of this section, "funeral	744
goods" includes caskets.	745

(U) "Purchaser" means the individual who has purchased and	746
financed a preneed funeral contract, and who may or may not be the	747
contract beneficiary.	748

(V) "Contract beneficiary" means the individual for whom	749
funeral goods and funeral services are provided pursuant to a	750
preneed funeral contract.	751

(W) "Seller" means any person that enters into a preneed	752
funeral contract with a purchaser for the provision of funeral	753
goods, funeral services, or both.	754

Sec. 4717.03. (A) Members of the board of embalmers and	755
funeral directors shall annually in July, or within thirty days	756
after the senate's confirmation of the new members appointed in	757
that year, meet and organize by selecting from among its members a	758
president, vice-president, and secretary-treasurer. The board may	759
hold other meetings as it determines necessary. A quorum of the	760
board consists of four members, of whom at least three shall be	761
members who are embalmers and funeral directors. The concurrence	762
of at least four members is necessary for the board to take any	763
action. The president and secretary-treasurer shall sign all	764
licenses issued under this chapter and affix the board's seal to	765
each license.	766

(B) The board may appoint an individual who is not a member	767
of the board to serve as executive director of the board. The	768
executive director serves at the pleasure of the board and shall	769
do all of the following:	770

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

771

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

772

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

773

In executing the board's orders, the executive director may	774
enter the premises, establishment, office, or place of business of	775
any embalmer, funeral director, or operator of a crematory	776
facility in this state. The executive director may serve and	777
execute any process issued by any court under this chapter.	778

(C) The board may employ clerical or technical staff who are	779
not members of the board and who serve at the pleasure of the	780
board to provide any clerical or technical assistance the board	781
considers necessary. The board may employ necessary inspectors,	782
who shall be licensed embalmers and funeral directors. Any	783
inspector employed by the board may enter the premises,	784
establishment, office, or place of business of any embalmer,	785
funeral director, or operator of a crematory facility in this	786
state, for the purposes of inspecting the facility and premises;	787
the license and registration of embalmers and funeral directors	788
operating in the facility; and the license of the funeral home,	789
embalming facility, or crematory. The inspector shall serve and	790
execute any process issued by any court under this chapter, serve	791
and execute any papers or process issued by the board or any	792
officer or member of the board, and perform any other duties	793
delegated by the board.	794

(D) The president of the board shall designate three of its	795
members to serve on the crematory review board, which is hereby	796
created, for such time as the president finds appropriate to carry	797
out the provisions of this chapter. Those members of the crematory	798
review board designated by the president to serve and three	799
members designated by the cemetery dispute resolution commission	800
shall designate, by a majority vote, one person who is experienced	801
in the operation of a crematory facility and who is not affiliated	802
with a cemetery or a funeral home to serve on the crematory review	803
board for such time as the crematory review board finds	804
appropriate. Members serving on the crematory review board shall	805
not receive any additional compensation for serving on the board,	806
but may be reimbursed for their actual and necessary expenses	807
incurred in the performance of official duties as members of the	808
board. Members of the crematory review board shall designate one	809
from among its members to serve as a chairperson for such time as	810
the board finds appropriate. Costs associated with conducting an	811
adjudicatory hearing in accordance with division (E) of this	812
section shall be paid from funds available to the board of	813
embalmers and funeral directors.	814

(E) Upon receiving written notice from the board of embalmers	815
and funeral directors of any of the following, the crematory	816
review board shall conduct an adjudicatory hearing on the matter	817
in accordance with Chapter 119. of the Revised Code, except as	818
otherwise provided in this section or division (C) of section	819
4717.14 of the Revised Code:	820

(1) Notice provided under division (H) of this section of an	821
alleged violation of any provision of this chapter or any rules	822
adopted under this chapter~~, or section 1111.19 of the Revised~~	823
~~Code,~~ governing or in connection with crematory facilities or	824
cremation;	825

(2) Notice provided under division (B) of section 4717.14 of	826
the Revised Code that the board of embalmers and funeral directors	827
proposes to refuse to grant or renew, or to suspend or revoke, a	828
license to operate a crematory facility;	829

(3) Notice provided under division (C) of section 4717.14 of	830
the Revised Code that the board of embalmers and funeral directors	831
has issued an order summarily suspending a license to operate a	832
crematory facility;	833

(4) Notice provided under division (B) of section 4717.15 of	834
the Revised Code that the board of embalmers and funeral directors	835
proposes to issue a notice of violation and order requiring	836
payment of a forfeiture for any violation described in divisions	837
(A)(9)(a) to (g) of section 4717.04 of the Revised Code alleged in	838
connection with a crematory facility or cremation.	839

Nothing in division (E) of this section precludes the	840
crematory review board from appointing an independent examiner in	841
accordance with section 119.09 of the Revised Code to conduct any	842
adjudication hearing required under division (E) of this section.	843

The crematory review board shall submit a written report of	844
findings and advisory recommendations, and a written transcript of	845
its proceedings, to the board of embalmers and funeral directors.	846
The board of embalmers and funeral directors shall serve a copy of	847
the written report of the crematory review board's findings and	848
advisory recommendations on the party to the adjudication or the	849
party's attorney, by certified mail, within five days after	850
receiving the report and advisory recommendations. A party may	851
file objections to the written report with the board of embalmers	852
and funeral directors within ten days after receiving the report.	853
No written report is final or appealable until it is issued as a	854
final order by the board of embalmers and funeral directors and	855
entered on the record of the proceedings. The board of embalmers	856
and funeral directors shall consider objections filed by the party	857
prior to issuing a final order. After reviewing the findings and	858
advisory recommendations of the crematory review board, the	859
written transcript of the crematory review board's proceedings,	860
and any objections filed by a party, the board of embalmers and	861
funeral directors shall issue a final order in the matter. Any	862
party may appeal the final order issued by the board of embalmers	863
and funeral directors in a matter described in divisions (E)(1) to	864
(4) of this section in accordance with section 119.12 of the	865
Revised Code, except that the appeal may be made to the court of	866
common pleas in the county in which is located the crematory	867
facility to which the final order pertains, or in the county in	868
which the party resides.	869

(F) On its own initiative or on receiving a written complaint	870
from any person whose identity is made known to the board of	871
embalmers and funeral directors, the board shall investigate the	872
acts or practices of any person holding or claiming to hold a	873
license or registration under this chapter that, if proven to have	874
occurred, would violate this chapter or any rules adopted under	875
it~~, or section 1111.19 of the Revised Code~~. The board may compel	876
witnesses by subpoena to appear and testify in relation to	877
investigations conducted under this chapter and may require by	878
subpoena duces tecum the production of any book, paper, or	879
document pertaining to an investigation. If a person does not	880
comply with a subpoena or subpoena duces tecum, the board may	881
apply to the court of common pleas of any county in this state for	882
an order compelling the person to comply with the subpoena or	883
subpoena duces tecum, or for failure to do so, to be held in	884
contempt of court.	885

(G) If, as a result of its investigation conducted under	886
division (F) of this section, the board of embalmers and funeral	887
directors has reasonable cause to believe that the person	888
investigated is violating any provision of this chapter or any	889
rules adopted under this chapter~~, or section 1111.19 of the~~	890
~~Revised Code,~~ governing or in connection with embalming, funeral	891
directing, funeral homes, embalming facilities, or the operation	892
of funeral homes or embalming facilities, it may, after providing	893
the opportunity for an adjudicatory hearing, issue an order	894
directing the person to cease the acts or practices that	895
constitute the violation. The board shall conduct the adjudicatory	896
hearing in accordance with Chapter 119. of the Revised Code except	897
that, notwithstanding the provisions of that chapter, the	898
following shall apply:	899

(1) The board shall send the notice informing the person of	900
the person's right to a hearing by certified mail.	901

(2) The person is entitled to a hearing only if the person	902
requests a hearing and if the board receives the request within	903
thirty days after the mailing of the notice described in division	904
(G)(1) of this section.	905

(3) A stenographic record shall be taken, in the manner	906
prescribed in section 119.09 of the Revised Code, at every	907
adjudicatory hearing held under this section, regardless of	908
whether the record may be the basis of an appeal to a court.	909

(H) If, as a result of its investigation conducted under	910
division (F) of this section, the board of embalmers and funeral	911
directors has reasonable cause to believe that the person	912
investigated is violating any provision of this chapter or any	913
rules adopted under this chapter~~, or section 1111.19 of the~~	914
~~Revised Code,~~ governing or in connection with crematory facilities	915
or cremation, the board shall send written notice of the alleged	916
violation to the crematory review board. If, after the conclusion	917
of the adjudicatory hearing in the matter conducted under division	918
(E) of this section, the board of embalmers and funeral directors	919
finds that a person is in violation of any provision of this	920
chapter or any rules adopted under this chapter~~, or section~~	921
~~1111.19 of the Revised Code,~~ governing or in connection with	922
crematory facilities or cremation, the board may issue a final	923
order under that division directing the person to cease the acts	924
or practices that constitute the violation.	925

(I) The board of embalmers and funeral directors may bring a	926
civil action to enjoin any violation or threatened violation of	927
~~section 1111.19;~~ sections 4717.01 to 4717.15 of the Revised Code	928
or a rule adopted under any of those sections; division (A) or (B)	929
of section 4717.23; division (B)(1) or (2), (C)(1) or (2), (D),	930
(E), or (F)(1) or (2), or divisions (H) to (K) of section 4717.26;	931
division (D)(1) of section 4717.27; or divisions (A) to (C) of	932
section 4717.28, or division (D) or (E) of section 4717.31 of the	933
Revised Code. The action shall be brought in the county where	934
the violation occurred or the threatened violation is expected	935
to occur. At the request of the board, the attorney general	936
shall represent the board in any matter arising under this	937
chapter.	938

(J) The board of embalmers and funeral directors and the	939
crematory review board may issue subpoenas for funeral directors	940
and embalmers or persons holding themselves out as such, for	941
operators of crematory facilities or persons holding themselves	942
out as such, or for any other person whose testimony, in the	943
opinion of either board, is necessary. The subpoena shall require	944
the person to appear before the appropriate board or any	945
designated member of either board, upon any hearing conducted	946
under this chapter. The penalty for disobedience to the command of	947
such a subpoena is the same as for refusal to answer such a	948
process issued under authority of the court of common pleas.	949

(K) All moneys received by the board of embalmers and funeral	950
directors from any source shall be deposited in the state treasury	951
to the credit of the occupational licensing and regulatory fund	952
created in section 4743.05 of the Revised Code.	953

(L) The board of embalmers and funeral directors shall submit	954
a written report to the governor on or before the first Monday of	955
July of each year. This report shall contain a detailed statement	956
of the nature and amount of the board's receipts and the amount	957
and manner of its expenditures.	958

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

959

(1) Engage in the business or profession of funeral directing	960
unless the person is licensed as a funeral director under this	961
chapter, is certified as an apprentice funeral director in	962
accordance with rules adopted under section 4717.04 of the Revised	963
Code and is assisting a funeral director licensed under this	964
chapter, or is a student in a college of mortuary sciences	965
approved by the board and is under the direct supervision of a	966
funeral director licensed by the board;	967

(2) Engage in embalming unless the person is licensed as an	968
embalmer under this chapter, is certified as an apprentice	969
embalmer in accordance with rules adopted under section 4717.04 of	970
the Revised Code and is assisting an embalmer licensed under this	971
chapter, or is a student in a college of mortuary science approved	972
by the board and is under the direct supervision of an embalmer	973
licensed by the board;	974

(3) Advertise or otherwise offer to provide or convey the	975
impression that the person provides funeral directing services	976
unless the person is licensed as a funeral director under this	977
chapter and is employed by or under contract to a licensed funeral	978
home and performs funeral directing services for that funeral home	979
in a manner consistent with the advertisement, offering, or	980
conveyance;	981

(4) Advertise or otherwise offer to provide or convey the	982
impression that the person provides embalming services unless the	983
person is licensed as an embalmer under this chapter and is	984
employed by or under contract to a licensed funeral home or a	985
licensed embalming facility and performs embalming services for	986
the funeral home or embalming facility in a manner consistent with	987
the advertisement, offering, or conveyance;	988

(5) Operate a funeral home without a license to operate the	989
funeral home issued by the board under this chapter;	990

(6) Practice the business or profession of funeral directing	991
from any place except from a funeral home that a person is	992
licensed to operate under this chapter;	993

(7) Practice embalming from any place except from a funeral	994
home or embalming facility that a person is licensed to operate	995
under this chapter;	996

(8) Operate a crematory or perform cremation without a	997
license to operate the crematory issued under this chapter;	998

(9) Cremate animals in a cremation chamber in which dead	999
human bodies or body parts are cremated or cremate dead human	1000
bodies or human body parts in a cremation chamber in which animals	1001
are cremated.	1002

(B) No funeral director or other person in charge of the	1003
final disposition of a dead human body shall fail to do one of the	1004
following prior to the interment of the body:	1005

(1) Affix to the ankle or wrist of the deceased a tag encased	1006
in a durable and long-lasting material that contains the name,	1007
date of birth, date of death, and social security number of the	1008
deceased;	1009

(2) Place in the casket a capsule containing a tag bearing	1010
the information described in division (B)(1) of this section;	1011

(3) If the body was cremated, place in the vessel containing	1012
the cremated remains a tag bearing the information described in	1013
division (B)(1) of this section.	1014

(C) No person who holds a funeral home license for a funeral	1015
home that is closed, or that is owned by a funeral business in	1016
which changes in the ownership of the funeral business result in a	1017
majority of the ownership of the funeral business being held by	1018
one or more persons who solely or in combination with others did	1019
not own a majority of the funeral business immediately prior to	1020
the change in ownership, shall fail to submit to the board within	1021
thirty days after the closing or such a change in ownership of the	1022
funeral business owning the funeral home, a clearly enumerated	1023
account of all of the following from which the licensee, at the	1024
time of the closing or change in ownership of the funeral business	1025
and in connection with the funeral home, was to receive payment	1026
for providing funeral services, funeral goods, or any combination	1027
of those in connection with the funeral or final disposition of a	1028
dead human body:	1029

(1) Preneed funeral contracts governed by ~~section 1111.19~~	1030
sections 4717.31 to 4717.38 of the Revised Code;	1031

(2) Life insurance policies or annuities the benefits of	1032
which are payable to the provider of funeral or burial goods or	1033
services;	1034

(3) Accounts at banks or savings banks insured by the federal	1035
deposit insurance corporation, savings and loan associations	1036
insured by the federal savings and loan insurance corporation or	1037
the Ohio deposit guarantee fund, or credit unions insured by the	1038
national credit union administration or a credit union share	1039
guaranty corporation organized under Chapter 1761. of the Revised	1040
Code that are payable upon the death of the person for whose	1041
benefit deposits into the accounts were made.	1042

Sec. 4717.14. (A) The board of embalmers and funeral	1043
directors may refuse to grant or renew, or may suspend or revoke,	1044
any license issued under this chapter for any of the following	1045
reasons:	1046

(1) The license was obtained by fraud or misrepresentation	1047
either in the application or in passing the examination.	1048

(2) The applicant or licensee has been convicted of or has	1049
pleaded guilty to a felony or of any crime involving moral	1050
turpitude.	1051

(3) The applicant or licensee has purposely violated any	1052
provision of sections 4717.01 to 4717.15 or a rule adopted under	1053
any of those sections; division (A) or (B) of section 4717.23;	1054
division (B)(1) or (2), (C)(1) or (2), (D), (E), or (F)(1) or (2),	1055
or divisions (H) to (K) of section 4717.26; division (D)(1) of	1056
section 4717.27; or divisions (A) to (C) of section 4717.28 of the	1057
Revised Code; any rule or order of the department of health or a	1058
board of health of a health district governing the disposition of	1059
dead human bodies; or any other rule or order applicable to the	1060
applicant or licensee.	1061

(4) The applicant or licensee has committed immoral or	1062
unprofessional conduct.	1063

(5) The applicant or licensee knowingly permitted an	1064
unlicensed person, other than a person serving an apprenticeship,	1065
to engage in the profession or business of embalming or funeral	1066
directing under the applicant's or licensee's supervision.	1067

(6) The applicant or licensee has been habitually	1068
intoxicated, or is addicted to the use of morphine, cocaine, or	1069
other habit-forming or illegal drugs.	1070

(7) The applicant or licensee has refused to promptly submit	1071
the custody of a dead human body upon the express order of the	1072
person legally entitled to the body.	1073

(8) The licensee loaned the licensee's own license, or the	1074
applicant or licensee borrowed or used the license of another	1075
person, or knowingly aided or abetted the granting of an improper	1076
license.	1077

(9) The applicant or licensee transferred a license to	1078
operate a funeral home, embalming facility, or crematory from one	1079
owner or operator to another, or from one location to another,	1080
without notifying the board.	1081

(10) The applicant or licensee mislead the public by using	1082
false or deceptive advertising.	1083

(B)(1) The board of embalmers and funeral directors shall	1084
refuse to grant or renew, or shall suspend or revoke, an	1085
embalmer's, funeral director's, funeral home, or embalming	1086
facility license only in accordance with Chapter 119. of the	1087
Revised Code.	1088

(2) The board shall send to the crematory review board	1089
written notice that it proposes to refuse to issue or renew, or	1090
proposes to suspend or revoke, a license to operate a crematory	1091
facility. If, after the conclusion of the adjudicatory hearing on	1092
the matter conducted under division (E) of section 4717.03 of the	1093
Revised Code, the board of embalmers and funeral directors finds	1094
that any of the circumstances described in divisions (A)(1) to	1095
(10) of this section apply to the person named in its proposed	1096
action, the board may issue a final order under division (E) of	1097
section 4717.03 of the Revised Code refusing to issue or renew, or	1098
suspending or revoking, the person's license to operate a	1099
crematory facility.	1100

(C) If the board of embalmers and funeral directors	1101
determines that there is clear and convincing evidence that any of	1102
the circumstances described in divisions (A)(1) to (10) of this	1103
section apply to the holder of a license issued under this chapter	1104
and that the licensee's continued practice presents a danger of	1105
immediate and serious harm to the public, the board may suspend	1106
the licensee's license without a prior adjudicatory hearing. The	1107
executive director of the board shall prepare written allegations	1108
for consideration by the board.	1109

The board, after reviewing the written allegations, may	1110
suspend a license without a prior hearing.	1111

The board shall issue a written order of suspension by	1112
certified mail or in person in accordance with section 119.07 of	1113
the Revised Code. Such an order is not subject to suspension by	1114
the court during the pendency of any appeal filed under section	1115
119.12 of the Revised Code. If the holder of an embalmer's,	1116
funeral director's, funeral home, or embalming facility license	1117
requests an adjudicatory hearing by the board, the date set for	1118
the hearing shall be within fifteen days, but not earlier than	1119
seven days, after the licensee has requested a hearing, unless the	1120
board and the licensee agree to a different time for holding the	1121
hearing.	1122

Upon issuing a written order of suspension to the holder of a	1123
license to operate a crematory facility, the board of embalmers	1124
and funeral directors shall send written notice of the issuance of	1125
the order to the crematory review board. The crematory review	1126
board shall hold an adjudicatory hearing on the order under	1127
division (E) of section 4717.03 of the Revised Code within fifteen	1128
days, but not earlier than seven days, after the issuance of the	1129
order, unless the crematory review board and the licensee agree to	1130
a different time for holding the adjudicatory hearing.	1131

Any summary suspension imposed under this division shall	1132
remain in effect, unless reversed on appeal, until a final	1133
adjudicatory order issued by the board of embalmers and funeral	1134
directors pursuant to this division and Chapter 119. of the	1135
Revised Code, or division (E) of section 4717.03 of the Revised	1136
Code, as applicable, becomes effective. The board of embalmers and	1137
funeral directors shall issue its final adjudicatory order within	1138
sixty days after the completion of its hearing or, in the case of	1139
the summary suspension of a license to operate a crematory	1140
facility, within sixty days after completion of the adjudicatory	1141
hearing by the crematory review board. A failure to issue the	1142
order within that time results in the dissolution of the summary	1143
suspension order, but does not invalidate any subsequent final	1144
adjudicatory order.	1145

(D) If the board of embalmers and funeral directors suspends	1146
or revokes a license held by a funeral director or a funeral home	1147
for any reason identified in division (A) of this section, the	1148
board may file a complaint with the court of common pleas in the	1149
county where the violation occurred requesting appointment of a	1150
receiver and the sequestration of the assets of the funeral home	1151
that held the suspended or revoked license or the licensed funeral	1152
home that employs the funeral director that held the suspended or	1153
revoked license. If the court of common pleas is satisfied with	1154
the application for a receivership, the court may appoint a	1155
receiver.	1156

The board or a receiver may employ and procure whatever	1157
assistance or advice is necessary in the receivership or	1158
liquidation and distribution of the assets of the funeral home,	1159
and, for that purpose, may retain officers or employees of the	1160
funeral home as needed. All expenses of the receivership or	1161
liquidation shall be paid from the assets of the funeral home and	1162
shall be a lien on those assets, and that lien shall be a priority	1163
to any other lien.	1164

(E) Any holder of a license issued under this chapter who has	1165
pleaded guilty to, has been found by a judge or jury to be guilty	1166
of, or has had a judicial finding of eligibility for treatment in	1167
lieu of conviction entered against the individual in this state	1168
for aggravated murder, murder, voluntary manslaughter, felonious	1169
assault, kidnapping, rape, sexual battery, gross sexual	1170
imposition, aggravated arson, aggravated robbery, or aggravated	1171
burglary, or who has pleaded guilty to, has been found by a judge	1172
or jury to be guilty of, or has had a judicial finding of	1173
eligibility for treatment in lieu of conviction entered against	1174
the individual in another jurisdiction for any substantially	1175
equivalent criminal offense, is hereby suspended from practice	1176
under this chapter by operation of law, and any license issued to	1177
the individual under this chapter is hereby suspended by operation	1178
of law as of the date of the guilty plea, verdict or finding of	1179
guilt, or judicial finding of eligibility for treatment in lieu of	1180
conviction, regardless of whether the proceedings are brought in	1181
this state or another jurisdiction. The board shall notify the	1182
suspended individual of the suspension of the individual's license	1183
by the operation of this division by certified mail or in person	1184
in accordance with section 119.07 of the Revised Code. If an	1185
individual whose license is suspended under this division fails to	1186
make a timely request for an adjudicatory hearing, the board shall	1187
enter a final order revoking the license.	1188

~~(E)~~(F) No person whose license has been suspended or revoked	1189
under or by the operation of this section shall practice embalming	1190
or funeral directing or operate a funeral home, embalming	1191
facility, or crematory facility until the board has reinstated the	1192
person's license.	1193

Sec. 4717.31. (A) Only a funeral director licensed pursuant	1194
to this chapter may sell a preneed funeral contract that includes	1195
funeral services. Sections 4717.31 to 4717.38 of the Revised Code	1196
do not prohibit a person who is not a licensed funeral director	1197
from selling funeral goods pursuant to a preneed funeral contract;	1198
however, when a seller sells funeral goods pursuant to a preneed	1199
funeral contract, that seller shall comply with those sections	1200
unless the seller is specifically exempt from compliance under	1201
section 4717.38 of the Revised Code.	1202

(B) An insurance agent licensed pursuant to Chapter 3905. of	1203
the Revised Code may sell, solicit, or negotiate the sale of an	1204
insurance policy or annuity that will be used to fund a preneed	1205
funeral contract, but in so doing the insurance agent may not	1206
offer advice or make recommendations about funeral services and	1207
may not discuss the advantages or disadvantages of any funeral	1208
service. In selling, soliciting, or negotiating the sale of an	1209
insurance policy or annuity that will be used to fund a preneed	1210
funeral contract, the insurance agent may do any of the following:	1211

(1) Provide the person purchasing the insurance policy or	1212
annuity with price lists from one or more funeral homes and other	1213
materials that may assist the person in determining the cost of	1214
funeral goods and services;	1215

(2) Discuss the cost of funeral goods and services with the	1216
person in order to assist the person in selecting the appropriate	1217
amount of life insurance or annuity coverage;	1218

(3) Complete a worksheet or other record to calculate the	1219
estimated cost of a funeral.	1220

(C) Activities conducted pursuant to division (B) of this	1221
section by an insurance agent licensed pursuant to Chapter 3905.	1222
of the Revised Code do not constitute funeral directing, funeral	1223
arranging, the business of directing and supervising funerals for	1224
profit, or the sale of a preneed funeral contract.	1225

(D) No seller shall fail to comply with the requirements and	1226
duties specified in this section and sections 4717.32 to 4717.38	1227
of the Revised Code.	1228

(E) No trustee of a preneed funeral contract trust shall	1229
fail to comply with sections 4717.33, 4717.34, 4717.36, and	1230
4717.37 of the Revised Code.	1231

(F) No insurance agent or insurance company that sells or	1232
offers life insurance policies or annuities used to fund a	1233
preneed funeral contract shall fail to comply with this section	1234
and sections 4717.33, 4717.34, 4717.35, and 4717.37 of the	1235
Revised Code. To the extent this section and sections 4717.33,	1236
4717.34, 4717.35, and 4717.37 of the Revised Code apply to	1237
insurance companies or insurance agents, those sections	1238
constitute laws of this state relating to insurance for purposes	1239
of sections 3901.03 and 3901.04 of the Revised Code and the	1240
superintendent of insurance shall enforce those sections with	1241
respect to insurance companies and insurance agents. The	1242
superintendent may adopt rules in accordance with Chapter 119. of	1243
the Revised Code for purposes of administering and enforcing this	1244
section and sections 4717.33, 4717.34, 4717.35, and 4717.37 of	1245
the Revised Code as those sections apply to insurance companies	1246
or insurance agents.	1247

(G) A preneed funeral contract may be funded by the purchase	1248
or assignment of an insurance policy or annuity in accordance with	1249
section 3905.45 of the Revised Code. A preneed funeral contract	1250
that is funded by the purchase or assignment of an insurance	1251
policy or annuity in accordance with section 3905.45 of the	1252
Revised Code is not subject to section 4717.36 of the Revised	1253
Code.	1254

(H) The board of embalmers and funeral directors shall	1255
administer and enforce the provisions of sections 4717.31 to	1256
4717.38 of the Revised Code concerning the requirements for and	1257
sale of preneed funeral contracts. The superintendent of insurance	1258
shall enforce sections 4717.31, 4717.33, 4717.34, 4717.35, and	1259
4717.37 of the Revised Code to the extent those sections apply to	1260
insurance companies and insurance agents. Payments from a trust,	1261
insurance policy, or annuity, including any fraudulent activities	1262
in which a person engages to obtain payments from a trust,	1263
insurance policy, or annuity, shall be regulated in accordance	1264
with Chapter 1111. or Title XXXIX of the Revised Code, as	1265
applicable.	1266

(I) A seller of a preneed funeral contract that is funded by	1267
insurance or otherwise annually shall submit to the board the	1268
reports the board requires pursuant to division (J) of this	1269
section.	1270

(J) The board shall adopt rules specifying the procedures and	1271
requirements for annual reporting of the sales of all preneed	1272
funeral contracts sold by every seller who is subject to sections	1273
4717.31 to 4717.38 of the Revised Code.	1274

Sec. 4717.32. (A) Any preneed funeral contract that involves	1275
the payment of money or the purchase or assignment of an insurance	1276
policy or annuity shall be in writing and shall include all of the	1277
following information:	1278

(1) The name, address, and phone number of the seller and the	1279
name and address of the purchaser of the contract, and, if the	1280
contract beneficiary is someone other than the purchaser of the	1281
contract, the name and address of the contract beneficiary, and	1282
if the contract involves the payment of money but not the purchase	1283
or assignment of an insurance policy or annuity, the social	1284
security number of the purchaser of the contract or if the	1285
contract beneficiary is someone other than the purchaser, the	1286
social security number of the contract beneficiary;	1287

(2) A statement of the funeral goods and funeral services	1288
purchased, which disclosure may be made by attaching a copy of the	1289
completed statement of funeral goods and services selected to the	1290
preneed funeral contract;	1291

(3) A disclosure informing the purchaser whether the contract	1292
is either a guaranteed preneed funeral contract or a nonguaranteed	1293
preneed funeral contract, and, if the contract is guaranteed only	1294
in part, a disclosure specifying the funeral goods or funeral	1295
services included in the guarantee;	1296

(4) If the preneed funeral contract is a guaranteed contract,	1297
a disclosure that the seller, in exchange for all of the proceeds	1298
of the trust, insurance policy, or annuity, shall provide the	1299
funeral goods and funeral services set forth in the preneed	1300
funeral contract without regard to the actual cost of such	1301
funeral goods and funeral services prevailing at the time of	1302
performance and that the seller may receive any excess funds	1303
remaining after all expenses for the funeral have been paid.	1304

(5) If the preneed funeral contract is a nonguaranteed	1305
contract, a disclosure that the proceeds of the trust, insurance	1306
policy, or annuity shall be applied to the retail prices in effect	1307
at the time of the funeral for the funeral goods and funeral	1308
services set forth in the contract, that any excess funds	1309
remaining after all expenses for the funeral have been paid shall	1310
be paid to the estate of the decedent or the beneficiary named in	1311
the life insurance policy if the preneed funeral contract is	1312
funded by a life insurance policy, and that, in the event of an	1313
insufficiency in funds, the seller shall not be required to	1314
perform until payment arrangements satisfactory to the seller	1315
have been made.	1316

(6) A disclosure that the purchaser has the right to make the	1317
contract irrevocable and that if the preneed funeral contract is	1318
irrevocable, the purchaser does not have a right to revoke the	1319
contract;	1320

(7) A disclosure informing the purchaser of the initial right	1321
to cancel the preneed funeral contract within seven days as	1322
provided in division (A) of section 4717.34 of the Revised Code	1323
and the right to revoke a revocable preneed funeral contract in	1324
accordance with section 4717.35 or division (E) of section 4717.36	1325
of the Revised Code, as applicable;	1326

(8) A disclosure that the seller may substitute funeral goods	1327
or funeral services of equal quality, value, and workmanship if	1328
those specified in the preneed funeral contract are unavailable at	1329
the time of need;	1330

(9) A disclosure that any purchaser of funeral goods and	1331
funeral services is entitled to receive price information prior to	1332
making that purchase in accordance with the federal trade	1333
commission's funeral industry practices revised rule, 16 C.F.R.	1334
part 453;	1335

(10) The following notice in boldface print and in	1336
substantially the following form:	1337

"NOTICE: Under Ohio law, the person holding the right of	1338
disposition of the remains of the individual contract beneficiary	1339
pursuant to section 2108.70 or 2108.81 of the Revised Code will	1340
have the right to make funeral arrangements inconsistent with the	1341
arrangements set forth in this contract. However, the individual	1342
contract beneficiary is encouraged to state his or her preferences	1343
as to funeral arrangements in a declaration of the right of	1344
disposition pursuant to section 2108.72 of the Revised Code,	1345
including that the arrangements set forth in this contract shall	1346
be followed."	1347

(11) The notice described in division (A) of section 4717.34	1348
of the Revised Code.	1349

(B) If a preneed funeral contract is funded by any means	1350
other than an insurance policy or policies, or an annuity or	1351
annuities, the preneed funeral contract shall include all of the	1352
following information in addition to the information required to	1353
be included under division (A) of this section:	1354

(1) Disclosures identifying the name and address of the	1355
trustee of the preneed funeral contract trust established pursuant	1356
to section 4717.36 of the Revised Code, indicating whether fees,	1357
expenses, or taxes will be deducted from the trust, and a	1358
statement of who will be responsible for the taxes owed on the	1359
trust earnings;	1360

(2) A disclosure explaining the form in which the purchase	1361
price must be paid and, if the price is to be paid in	1362
installments, a disclosure to the purchaser regarding what	1363
constitutes a default under the preneed funeral contract and the	1364
consequences of the default;	1365

(3) The following notice in boldface print and in	1366
substantially the following form:	1367

"NOTICE: You, as the purchaser of this contract, will be	1368
notified in writing when the trustee of this contract has received	1369
a deposit of the funds you paid the seller under this contract. If	1370
you do not receive that notice within sixty days after the date	1371
you paid the funds to the seller, you should contact the trustee	1372
identified in the contract."	1373

(4) A disclosure that a purchaser of a preneed funeral	1374
contract that is irrevocable and that stipulates a firm or fixed	1375
or guaranteed price for the funeral services and goods to be	1376
provided under the preneed funeral contract may be charged a	1377
transfer fee as specified in division (F) of section 4717.36 of	1378
the Revised Code if the purchaser wishes to transfer the contract	1379
to another seller.	1380

(C) If a preneed funeral contract is funded by the purchase	1381
or assignment of one or more insurance policies or annuities, the	1382
preneed funeral contract shall include all of the following	1383
information in addition to the information required to be	1384
included under division (A) of this section:	1385

(1) The name and address of each applicable insurance company	1386
and any right the purchaser has regarding canceling or	1387
transferring the applicable insurance policies or annuities;	1388

(2) A description of the terms of payment for any remaining	1389
payments due if the funding is to be paid in installments;	1390

(3) A list of actions that constitute default under a preneed	1391
funeral contract and the consequences of a default;	1392

(4) The following notice in boldface print and in	1393
substantially the following form:	1394

"NOTICE: You, as the purchaser of this contract, will be	1395
notified in writing by the insurance company identified in this	1396
contract when the insurance policy or policies, or annuity or	1397
annuities, that will fund this contract have been issued. If you	1398
do not receive the notice within sixty days after the date you	1399
paid the funds to the seller, you should contact the insurance	1400
company identified in the contract."	1401

(D) The seller of a preneed funeral contract that is funded	1402
by the purchase or assignment of one or more insurance policies or	1403
annuities does not need to include in the contract the information	1404
described in divisions (C)(2) and (3) of this section if those	1405
disclosures are provided in the application for a life insurance	1406
policy or annuity or in the life insurance policy or annuity.	1407

Sec. 4717.33. (A) If a preneed funeral contract is funded by	1408
any means other than an insurance policy or policies, or an	1409
annuity or annuities, the trustee of the trust created pursuant	1410
to section 4717.36 of the Revised Code shall notify the purchaser	1411
of the preneed funeral contract in writing, within fifteen days	1412
after the trustee receives any payment to be deposited into the	1413
trust, that the trustee has received payment. The notice shall	1414
include all of the following information:	1415

(1) The amount the trustee received;

1416

(2) The name and address of the institution described in	1417
division (B) of section 4717.36 of the Revised Code where the	1418
trust is being held;	1419

(3) The name of the beneficiary of that trust.

1420

(B) If a preneed funeral contract is funded by the purchase	1421
or assignment of one or more insurance policies or annuities, the	1422
insurance company shall notify the purchaser of the preneed	1423
funeral contract in writing within sixty days after the insurance	1424
company receives an initial premium payment applicable to that	1425
preneed funeral contract. The notice shall include all of the	1426
following information that is pertinent to that preneed funeral	1427
contract:	1428

(1) The amount the insurance company received;

1429

(2) The name and address of the insurance company;

1430

(3) The name of the insured;

1431

(4) The amount of the death benefit;

1432

(5) The policy or contract number of the insurance policy,	1433
annuity, or contract.	1434

(C) For purposes of division (B) of this section, delivery of	1435
an insurance policy, certificate, annuity, or contract to the	1436
purchaser shall satisfy the notice requirement specified in that	1437
division.	1438

Sec. 4717.34. (A) Any purchaser, on initially entering into	1439
a preneed funeral contract may, within seven days after entering	1440
into that contract, rescind the contract and request and receive	1441
from the seller of the contract one hundred per cent of all	1442
payments made under the contract. Each preneed funeral contract	1443
shall contain the following notice in boldface print and in	1444
substantially the following form:	1445

"NOTICE: Under Ohio law, you, as the purchaser of this	1446
contract, may rescind it and receive a refund of all payments you	1447
made under the contract. To rescind the contract, you must notify	1448
the seller within seven days of signing the contract."	1449

(B) No preneed funeral contract shall contain a provision	1450
that restricts the purchaser from making the contract irrevocable.	1451
On the purchase by an individual of an irrevocable preneed funeral	1452
contract, the funeral director who sold the contract assumes the	1453
legal obligation to provide for the funeral of the individual	1454
pursuant to the terms of the contract. No money deposited in a	1455
trust fund for an irrevocable preneed funeral contract shall be	1456
withdrawn to purchase an insurance policy or annuity, except that	1457
a trustee may use money in the trust fund to purchase a life	1458
insurance policy or annuity as an investment for the trust fund.	1459

Sec. 4717.35. If a preneed funeral contract contains a	1460
provision stating that the preneed funeral contract will be funded	1461
by the purchase of an insurance policy, the insurance agent who	1462
sold the policy that will fund that preneed funeral contract shall	1463
remit the application for insurance and the premium paid to the	1464
insurance company designated in the preneed funeral contract	1465
within the time period specified in division (B)(15) of section	1466
3905.14 of the Revised Code, unless the purchaser rescinds the	1467
preneed funeral contract in accordance with division (A) of	1468
section 4717.34 of the Revised Code.	1469

If the purchaser of a preneed funeral contract that is	1470
revocable and that is funded by an insurance policy or annuity	1471
elects to cancel the preneed funeral contract, the purchaser	1472
shall provide a written notice to the seller and the insurance	1473
company designated in the contract stating that the purchaser	1474
intends to cancel that contract. Fifteen days after the purchaser	1475
provides the notice to the seller of the contract and the	1476
insurance company, the purchaser may cancel the preneed funeral	1477
contract and change the beneficiary of the insurance policy or	1478
annuity or reassign the benefits under the policy or annuity.	1479

The purchaser of a preneed funeral contract that is	1480
irrevocable and that is funded by an insurance policy or annuity	1481
may transfer the preneed funeral contract to a successor seller	1482
by notifying the original seller of the designation of a	1483
successor seller. Within fifteen days after receiving the written	1484
notice of the designation of the successor seller from the	1485
purchaser, the original seller shall assign the seller's rights	1486
to the proceeds of the policy to the successor seller. The	1487
insurance company shall confirm the change of assignment by	1488
providing written notice to the policyholder.	1489

Sec. 4717.36. (A) This section applies only to preneed	1490
funeral contracts that are funded by any means other than an	1491
insurance policy or policies, or an annuity or annuities.	1492

One hundred per cent of all payments for funeral goods and	1493
funeral services made under a preneed funeral contract shall	1494
remain intact and held in trust in accordance with this section	1495
for the benefit of the contract beneficiary. No money in a preneed	1496
funeral contract trust shall be distributed from the trust except	1497
as provided in this section. Within thirty days after the provider	1498
of the funeral goods or funeral services receives any payment	1499
under a preneed funeral contract, the seller of the preneed	1500
funeral contract shall deliver the moneys received for that	1501
preneed funeral contract that have not been returned to the	1502
purchaser as provided in division (A) of section 4717.34 of the	1503
Revised Code to the trustee designated in the preneed funeral	1504
contract.	1505

(B) The seller shall establish a preneed funeral contract	1506
trust at one of the following types of institutions and shall	1507
designate that institution as the trustee of the preneed funeral	1508
contract trust:	1509

(1) A trust company licensed under Chapter 1111. of the	1510
Revised Code;	1511

(2) A national bank, federal savings bank, or federal savings	1512
association that pledges securities in accordance with section	1513
1111.04 of the Revised Code;	1514

(3) A credit union authorized to conduct business in this	1515
state pursuant to Chapter 1733. of the Revised Code.	1516

(C) Moneys deposited in a preneed funeral contract trust fund	1517
shall be held and invested in the manner in which trust funds are	1518
permitted to be held and invested pursuant to Chapter 1111. of the	1519
Revised Code.	1520

(D) The seller shall establish a separate preneed funeral	1521
contract trust for the moneys paid under each preneed funeral	1522
contract, unless the purchaser or purchasers of a preneed funeral	1523
contract or contracts authorize the seller to place the moneys	1524
paid for that contract or those contracts in a combined preneed	1525
funeral contract trust. The trustee of a combined preneed funeral	1526
contract trust shall keep exact records of the corpus, income,	1527
expenses, and disbursements with regard to each purchaser and	1528
contract beneficiary for whom moneys are held in the trust. The	1529
terms of a preneed funeral contract trust are governed by this	1530
section and the payments from that trust are governed by Chapter	1531
1111. of the Revised Code, except as otherwise provided in this	1532
section.	1533

A trustee of a preneed funeral contract trust may pay taxes	1534
and expenses for a preneed funeral contract trust and may charge a	1535
fee for managing a preneed funeral contract trust. The fee shall	1536
not exceed the amount regularly or usually charged for similar	1537
services rendered by the institutions described in division (B) of	1538
this section when serving as a trustee. The taxes, expenses, and	1539
fees shall be paid only from the accumulated income on that trust.	1540

(E) If the purchaser of a preneed funeral contract that is	1541
revocable elects to cancel the contract, the purchaser shall	1542
provide a written notice to the seller of the contract and the	1543
trustee of the preneed funeral contract trust stating that the	1544
purchaser intends to cancel the contract. Fifteen days after the	1545
purchaser provides that notice to the seller and trustee, the	1546
purchaser may cancel the contract. Upon canceling a preneed	1547
funeral contract pursuant to this division, one of the following	1548
shall occur, as applicable:	1549

(1) If the preneed funeral contract does not stipulate a firm	1550
or fixed or guaranteed price for funeral goods and funeral	1551
services to be provided under the preneed funeral contract, the	1552
trustee shall give to the purchaser all of the assets of the trust	1553
that exist at the time of cancellation, less any fees charged,	1554
distributions paid, and expenses incurred by the trustee pursuant	1555
to division (D) of this section.	1556

(2) If the preneed funeral contract does stipulate a firm or	1557
fixed or guaranteed price for funeral goods and funeral services	1558
to be provided under the contract, the purchaser may request and	1559
receive from the trustee all of the assets of the trust at the	1560
time of cancellation, less a cancellation fee that the original	1561
seller may collect from the trustee that is equal to or less than	1562
ten per cent of the value of the assets of the trust on the date	1563
the trust is cancelled and less any fees charged, distributions	1564
paid, and expenses incurred by the trustee pursuant to division	1565
(D) of this section.	1566

If more than one purchaser enters into the contract, all of	1567
those purchasers must request cancellation of the contract for it	1568
to be effective under this division, and the trustee shall refund	1569
to each purchaser only those funds that purchaser has paid under	1570
the contract and any income earned on those funds in an amount	1571
that is in direct proportion to the amount of funds that	1572
purchaser paid relative to the total amount of payments deposited	1573
in that trust, less any fees charged, distributions paid, and	1574
expenses incurred by the trustee pursuant to division (D) of this	1575
section, the amount of which are in direct proportion to the	1576
amount of funds that purchaser paid relative to the total amount	1577
of payments deposited in that trust.	1578

(F) The purchaser of a preneed funeral contract that is	1579
irrevocable may transfer the preneed funeral contract to a	1580
successor seller. A purchaser who elects to make such a transfer	1581
shall provide a written notice of the designation of a successor	1582
seller to the trustee and the original seller. Within fifteen days	1583
after receiving the written notice of the new designation from the	1584
purchaser, the trustee shall list the successor seller as the	1585
seller of the preneed funeral contract and the original seller	1586
shall relinquish and transfer all rights under the preneed funeral	1587
contract to the successor seller. The trustee shall confirm the	1588
transfer by providing written notice of the transfer to the	1589
original seller, the successor seller, and the purchaser. If the	1590
preneed funeral contract stipulates a firm or fixed or guaranteed	1591
price for the funeral goods and funeral services to be provided	1592
under the preneed funeral contract, the original seller may	1593
collect from the trustee a transfer fee from the trust that equals	1594
up to ten per cent of the value of the assets of the trust on the	1595
date the trust is transferred. If the preneed funeral contract	1596
does not stipulate a firm or fixed or guaranteed price for funeral	1597
goods and funeral services to be provided under the preneed	1598
funeral contract, no transfer fee shall be collected by the	1599
original seller.	1600

(G) If a seller of a preneed funeral contract elects to	1601
transfer a preneed funeral contract trust from an institution	1602
listed in divisions (B)(1) to (3) of this section to a different	1603
institution, the trustee of the original trust shall notify the	1604
purchaser of the preneed funeral contract of that transfer in	1605
writing within thirty days after the transfer occurred and shall	1606
provide the purchaser with the name of and the contact information	1607
for the institution where the new trust is maintained. Upon	1608
receipt of the trust, the trustee of the transferred trust shall	1609
notify the purchaser of the receipt of the trusts in accordance	1610
with division (A) of section 4717.33 of the Revised Code.	1611

(H) If a seller receives a notice that the contract	1612
beneficiary has died and that funeral goods and funeral services	1613
have been provided by a provider other than the seller, except as	1614
otherwise specified in this section, the seller shall direct the	1615
trustee, within thirty days after receiving that notice, to pay to	1616
the contract beneficiary all funds held by the trustee, less any	1617
fees charged, distributions paid, and expenses incurred by the	1618
trustee pursuant to division (D) of this section. In the event the	1619
preneed funeral contract stipulates a firm or fixed or guaranteed	1620
price for funeral goods and funeral services that were to be	1621
provided under the preneed funeral contract, the seller may	1622
collect from the trustee a cancellation fee not exceeding ten per	1623
cent of the value of the assets of the trust on the date the trust	1624
is transferred. If the preneed funeral trust does not stipulate a	1625
firm or fixed or guaranteed price for funeral goods and funeral	1626
services to be provided under the preneed funeral contract, no	1627
cancellation fees shall be collected by the original seller.	1628

(I) A certified copy of the certificate of death or other	1629
evidence of death satisfactory to the trustee shall be furnished	1630
to the trustee as evidence of death, and the trustee shall	1631
promptly pay the accumulated payments and income, if any,	1632
according to the preneed funeral contract. Such payment of the	1633
accumulated payments and income pursuant to this section and, when	1634
applicable, the preneed funeral contract, relieves the trustee of	1635
any further liability on the accumulated payments and income.	1636

Sec. 4717.37. For purposes of sections 4717.31 to 4717.38 of	1637
the Revised Code, a seller is considered to have delivered funeral	1638
goods pursuant to a preneed funeral contract when the seller makes	1639
actual delivery of the goods to the contract beneficiary.	1640

Sec. 4717.38. Sections 4717.31 to 4717.38 of the Revised	1641
Code shall be construed as a limitation on the manner in which a	1642
person is permitted to accept funds in prepayment for funeral	1643
services to be performed in the future, or funeral goods to be	1644
used in connection with the funeral or final disposition of human	1645
remains, to the end that at all times members of the public may	1646
have an opportunity to arrange and pay for a funeral for	1647
themselves and their families in advance of need while at the same	1648
time providing all possible safeguards to ensure that prepaid	1649
funds cannot be dissipated, whether intentionally or not, but	1650
remain available for payment for funeral goods and funeral	1651
services in connection with the funeral or final disposition of	1652
dead human bodies.	1653

Sections 4717.31 to 4717.38 of the Revised Code do not apply	1654
to a seller if that seller is an established and legally	1655
cognizable church or denomination that is exempt from federal	1656
income taxation under section 501(c)(3) of the "Internal Revenue	1657
Code of 1986," 100 Stat. 2085, 26 U.S.C. 501, as amended, and the	1658
preneed funeral contract pertains to a cemetery owned and operated	1659
entirely and exclusively by the church or denomination, on the	1660
condition that the church or denomination adopts, on a voluntary	1661
basis, rules and other measures to safeguard and secure all funds	1662
received under any preneed funeral contract.	1663

Any money, insurance policies, annuities, or other items	1664
delivered in payment of a preneed funeral contract, and any funds	1665
held in trust pursuant to section 4717.36 of the Revised Code,	1666
are exempt from levy, attachment, or sale to satisfy a judgment	1667
or order.	1668

Sec. 4717.99. Whoever violates any provision of sections	1669
4717.01 to 4717.15; division (A) or (B) of section 4717.23;	1670
division (B)(1) or (2), (C)(1) or (2), (D), (E), or (F)(1) or (2),	1671
or divisions (H) to (K) of section 4717.26; division (D)(1) of	1672
section 4717.27; or divisions (A) to (C) of section 4717.28 of the	1673
Revised Code shall be fined not less than one hundred nor more	1674
than five thousand dollars, or imprisoned for not more than one	1675
year, or both, for the first offense. For each subsequent offense	1676
such a person shall be fined not less than one hundred nor more	1677
than ten thousand dollars, or imprisoned for not more than one	1678
year, or both.	1679

Whoever purposely violates division (D) or (E) of section	1680
4717.31 of the Revised Code is guilty of a misdemeanor of the	1681
third degree. If the purpose of a violation of that division is	1682
to commit or facilitate the commission of a felony, whoever	1683
violates that division is guilty of a felony of the fourth	1684
degree.	1685

Sec. 5747.02. (A) For the purpose of providing revenue for	1686
the support of schools and local government functions, to provide	1687
relief to property taxpayers, to provide revenue for the general	1688
revenue fund, and to meet the expenses of administering the tax	1689
levied by this chapter, there is hereby levied on every	1690
individual, trust, and estate residing in or earning or receiving	1691
income in this state, on every individual, trust, and estate	1692
earning or receiving lottery winnings, prizes, or awards pursuant	1693
to Chapter 3770. of the Revised Code, and on every individual,	1694
trust, and estate otherwise having nexus with or in this state	1695
under the Constitution of the United States, an annual tax	1696
measured in the case of individuals by Ohio adjusted gross income	1697
less an exemption for the taxpayer, the taxpayer's spouse, and	1698
each dependent as provided in section 5747.025 of the Revised	1699
Code; measured in the case of trusts by modified Ohio taxable	1700
income under division (D) of this section; and measured in the	1701
case of estates by Ohio taxable income. The tax imposed by this	1702
section on the balance thus obtained is hereby levied as follows:	1703

(1) For taxable years beginning in 2004:

1704

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1705
OR		1706
MODIFIED OHIO		1707
TAXABLE INCOME (TRUSTS)		1708
OR		1709
OHIO TAXABLE INCOME (ESTATES)	TAX	1710

$5,000 or less	.743%	1711
More than $5,000 but not more than $10,000	$37.15 plus 1.486% of the amount in excess of $5,000	1712
More than $10,000 but not more than $15,000	$111.45 plus 2.972% of the amount in excess of $10,000	1713
More than $15,000 but not more than $20,000	$260.05 plus 3.715% of the amount in excess of $15,000	1714
More than $20,000 but not more than $40,000	$445.80 plus 4.457% of the amount in excess of $20,000	1715
More than $40,000 but not more than $80,000	$1,337.20 plus 5.201% of the amount in excess of $40,000	1716
More than $80,000 but not more than $100,000	$3,417.60 plus 5.943% of the amount in excess of $80,000	1717
More than $100,000 but not more than $200,000	$4,606.20 plus 6.9% of the amount in excess of $100,000	1718
More than $200,000	$11,506.20 plus 7.5% of the amount in excess of $200,000	1719

(2) For taxable years beginning in 2005:

1720

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1721
OR		1722
MODIFIED OHIO		1723
TAXABLE INCOME (TRUSTS)		1724
OR		1725
OHIO TAXABLE INCOME (ESTATES)	TAX	1726

$5,000 or less	.712%	1727
More than $5,000 but not more than $10,000	$35.60 plus 1.424% of the amount in excess of $5,000	1728
More than $10,000 but not more than $15,000	$106.80 plus 2.847% of the amount in excess of $10,000	1729
More than $15,000 but not more than $20,000	$249.15 plus 3.559% of the amount in excess of $15,000	1730
More than $20,000 but not more than $40,000	$427.10 plus 4.27% of the amount in excess of $20,000	1731
More than $40,000 but not more than $80,000	$1,281.10 plus 4.983% of the amount in excess of $40,000	1732
More than $80,000 but not more than $100,000	$3,274.30 plus 5.693% of the amount in excess of $80,000	1733
More than $100,000 but not more than $200,000	$4,412.90 plus 6.61% of the amount in excess of $100,000	1734
More than $200,000	$11,022.90 plus 7.185% of the amount in excess of $200,000	1735

(3) For taxable years beginning in 2006:

1736

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1737
OR		1738
MODIFIED OHIO		1739
TAXABLE INCOME (TRUSTS)		1740
OR		1741
OHIO TAXABLE INCOME (ESTATES)	TAX	1742

$5,000 or less	.681%	1743
More than $5,000 but not more than $10,000	$34.05 plus 1.361% of the amount in excess of $5,000	1744
More than $10,000 but not more than $15,000	$102.10 plus 2.722% of the amount in excess of $10,000	1745
More than $15,000 but not more than $20,000	$238.20 plus 3.403% of the amount in excess of $15,000	1746
More than $20,000 but not more than $40,000	$408.35 plus 4.083% of the amount in excess of $20,000	1747
More than $40,000 but not more than $80,000	$1,224.95 plus 4.764% of the amount in excess of $40,000	1748
More than $80,000 but not more than $100,000	$3,130.55 plus 5.444% of the amount in excess of $80,000	1749
More than $100,000 but not more than $200,000	$4,219.35 plus 6.32% of the amount in excess of $100,000	1750
More than $200,000	$10,539.35 plus 6.87% of the amount in excess of $200,000	1751

(4) For taxable years beginning in 2007:

1752

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1753
OR		1754
MODIFIED OHIO		1755
TAXABLE INCOME (TRUSTS)		1756
OR		1757
OHIO TAXABLE INCOME (ESTATES)	TAX	1758

$5,000 or less	.649%	1759
More than $5,000 but not more than $10,000	$32.45 plus 1.299% of the amount in excess of $5,000	1760
More than $10,000 but not more than $15,000	$97.40 plus 2.598% of the amount in excess of $10,000	1761
More than $15,000 but not more than $20,000	$227.30 plus 3.247% of the amount in excess of $15,000	1762
More than $20,000 but not more than $40,000	$389.65 plus 3.895% of the amount in excess of $20,000	1763
More than $40,000 but not more than $80,000	$1,168.65 plus 4.546% of the amount in excess of $40,000	1764
More than $80,000 but not more than $100,000	$2,987.05 plus 5.194% of the amount in excess of $80,000	1765
More than $100,000 but not more than $200,000	$4,025.85 plus 6.031% of the amount in excess of $100,000	1766
More than $200,000	$10,056.85 plus 6.555% of the amount in excess of $200,000	1767

(5) For taxable years beginning in 2008:

1768

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1769
OR		1770
MODIFIED OHIO		1771
TAXABLE INCOME (TRUSTS)		1772
OR		1773
OHIO TAXABLE INCOME (ESTATES)	TAX	1774

$5,000 or less	.618%	1775
More than $5,000 but not more than $10,000	$30.90 plus 1.236% of the amount in excess of $5,000	1776
More than $10,000 but not more than $15,000	$92.70 plus 2.473% of the amount in excess of $10,000	1777
More than $15,000 but not more than $20,000	$216.35 plus 3.091% of the amount in excess of $15,000	1778
More than $20,000 but not more than $40,000	$370.90 plus 3.708% of the amount in excess of $20,000	1779
More than $40,000 but not more than $80,000	$1,112.50 plus 4.327% of the amount in excess of $40,000	1780
More than $80,000 but not more than $100,000	$2,843.30 plus 4.945% of the amount in excess of $80,000	1781
More than $100,000 but not more than $200,000	$3,832.30 plus 5.741% of the amount in excess of $100,000	1782
More than $200,000	$9,573.30 plus 6.24% of the amount in excess of $200,000	1783

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

1784

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1785
OR		1786
MODIFIED OHIO		1787
TAXABLE INCOME (TRUSTS)		1788
OR		1789
OHIO TAXABLE INCOME (ESTATES)	TAX	1790

$5,000 or less	.587%	1791
More than $5,000 but not more than $10,000	$29.35 plus 1.174% of the amount in excess of $5,000	1792
More than $10,000 but not more than $15,000	$88.05 plus 2.348% of the amount in excess of $10,000	1793
More than $15,000 but not more than $20,000	$205.45 plus 2.935% of the amount in excess of $15,000	1794
More than $20,000 but not more than $40,000	$352.20 plus 3.521% of the amount in excess of $20,000	1795
More than $40,000 but not more than $80,000	$1,056.40 plus 4.109% of the amount in excess of $40,000	1796
More than $80,000 but not more than $100,000	$2,700.00 plus 4.695% of the amount in excess of $80,000	1797
More than $100,000 but not more than $200,000	$3,639.00 plus 5.451% of the amount in excess of $100,000	1798
More than $200,000	$9,090.00 plus 5.925% of the amount in excess of $200,000	1799

In July of each year, beginning in 2010, the tax commissioner	1800
shall adjust the income amounts prescribed in this division by	1801
multiplying the percentage increase in the gross domestic product	1802
deflator computed that year under section 5747.025 of the Revised	1803
Code by each of the income amounts resulting from the adjustment	1804
under this division in the preceding year, adding the resulting	1805
product to the corresponding income amount resulting from the	1806
adjustment in the preceding year, and rounding the resulting sum	1807
to the nearest multiple of fifty dollars. The tax commissioner	1808
also shall recompute each of the tax dollar amounts to the extent	1809
necessary to reflect the adjustment of the income amounts. The	1810
rates of taxation shall not be adjusted.	1811

The adjusted amounts apply to taxable years beginning in the	1812
calendar year in which the adjustments are made. The tax	1813
commissioner shall not make such adjustments in any year in which	1814
the amount resulting from the adjustment would be less than the	1815
amount resulting from the adjustment in the preceding year.	1816

(B) If the director of budget and management makes a	1817
certification to the tax commissioner under division (B) of	1818
section 131.44 of the Revised Code, the amount of tax as	1819
determined under division (A) of this section shall be reduced by	1820
the percentage prescribed in that certification for taxable years	1821
beginning in the calendar year in which that certification is	1822
made.	1823

(C) The levy of this tax on income does not prevent a	1824
municipal corporation, a joint economic development zone created	1825
under section 715.691, or a joint economic development district	1826
created under section 715.70 or 715.71 or sections 715.72 to	1827
715.81 of the Revised Code from levying a tax on income.	1828

(D) This division applies only to taxable years of a trust	1829
beginning in 2002 or thereafter.	1830

(1) The tax imposed by this section on a trust shall be	1831
computed by multiplying the Ohio modified taxable income of the	1832
trust by the rates prescribed by division (A) of this section.	1833

(2) A nonresident trust may claim a credit against the tax	1834
computed under division (D) of this section equal to the lesser	1835
of (1) the tax paid to another state or the District of Columbia	1836
on the nonresident trust's modified nonbusiness income, other	1837
than the portion of the nonresident trust's nonbusiness income	1838
that is qualifying investment income as defined in section	1839
5747.012 of the Revised Code, or (2) the effective tax rate, based	1840
on modified Ohio taxable income, multiplied by the nonresident	1841
trust's modified nonbusiness income other than the portion of the	1842
nonresident trust's nonbusiness income that is qualifying	1843
investment income. The credit applies before any other applicable	1844
credits.	1845

(3) The credits enumerated in divisions (A)(1) to (13) of	1846
section 5747.98 of the Revised Code do not apply to a trust	1847
subject to division (D) of this section. Any credits enumerated	1848
in other divisions of section 5747.98 of the Revised Code apply	1849
to a trust subject to division (D) of this section. To the extent	1850
that the trust distributes income for the taxable year for which	1851
a credit is available to the trust, the credit shall be shared by	1852
the trust and its beneficiaries. The tax commissioner and the	1853
trust shall be guided by applicable regulations of the United	1854
States treasury regarding the sharing of credits.	1855

(E) For the purposes of this section, "trust" means any trust	1856
described in Subchapter J of Chapter 1 of the Internal Revenue	1857
Code, excluding trusts that are not irrevocable as defined in	1858
division (I)(3)(b) of section 5747.01 of the Revised Code and that	1859
have no modified Ohio taxable income for the taxable year,	1860
charitable remainder trusts, qualified funeral trusts and preneed	1861
funeral contract trusts established pursuant to ~~section 1111.19~~	1862
sections 4717.31 to 4717.38 of the Revised Code that are not	1863
qualified funeral trusts, endowment and perpetual care trusts,	1864
qualified settlement trusts and funds, designated settlement	1865
trusts and funds, and trusts exempted from taxation under section	1866
501(a) of the Internal Revenue Code.	1867

Section 2. That existing sections 1151.345, 1161.59,	1868
1733.51, 2108.81, 2117.251, 3103.03, 3901.04, 3901.21, 3905.451,	1869
3923.80, 4717.01, 4717.03, 4717.13, 4717.14, 4717.99, and	1870
5747.02 and sections 1111.19 and 1111.99 of the Revised Code	1871
are hereby repealed.	1872

Section 3. Sections 1 and 2 of this act, except for section	1873
3923.80 of the Revised Code, shall take effect ninety days after	1874
the effective date of this act. Section 3923.80 of the Revised	1875
Code, as amended by this act, shall take effect at the earliest	1876
time permitted by law.	1877