Sub. S. B. No. 196 As Reported by the Senate Insurance, Commerce and Labor Committee

As Reported by the Senate Insurance, Commerce and Labor Committee

127th General Assembly

Regular Session

2007-2008

Sub. S. B. No. 196

Senator Schaffer

Cosponsors: Senators Carey, Cates, Schuler

A BILL

To amend sections 1151.345, 1161.59, 1721.211,

1733.51, 2108.81, 2117.251, 3103.03, 3901.04,

3905.451, 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.

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

Section 1. That sections 1151.345, 1161.59, 1721.211,	8
1733.51, 2108.81, 2117.251, 3103.03, 3901.04, 3905.451, 4717.01,	9
4717.03, 4717.13, 4717.14, 4717.99, and 5747.02 be amended and	10
sections 4717.31, 4717.32, 4717.33, 4717.34, 4717.35, 4717.36,	11
4717.37, and 4717.38 of the Revised Code be enacted to read as	12
follows:	13

Sec. 1151.345. A savings and loan association, in accordance	14
with sections ~~1111.19 and~~ 1721.211 and 4717.31 to 4717.38 of the	15
Revised Code, may receive and hold on deposit moneys under a	16
preneed funeral contract or a preneed cemetery merchandise and	17
services contract.	18

Sec. 1161.59. In accordance with sections ~~1111.19 and~~	19
1721.211 and 4717.31 to 4717.38 of the Revised Code, a savings	20
bank may receive and hold on deposit moneys under a preneed	21
funeral contract or a preneed cemetery merchandise and services	22
contract.	23

Sec. 1721.211. (A) As used in this section, "preneed	24
cemetery merchandise and services contract" means a written	25
agreement, contract, or series of contracts to sell or otherwise	26
provide an outer burial container, monument, marker, urn, other	27
type of merchandise customarily sold by cemeteries, or opening and	28
closing services to be used or provided in connection with the	29
final disposition of a dead human body, where payment for the	30
container, monument, marker, urn, other type of merchandise	31
customarily sold by cemeteries, or opening and closing services is	32
made either outright or on an installment basis, prior to the	33
death of the person so purchasing or for whom so purchased.	34
"Preneed cemetery merchandise and services contract" does not	35
include any preneed funeral contract or any agreement, contract,	36
or series of contracts pertaining to the sale of any burial lot,	37
burial or interment right, entombment right, or columbarium right	38
with respect to which an endowment care trust is established or is	39
exempt from establishment pursuant to section 1721.21 of the	40
Revised Code.	41

(B) Subject to the limitations and restrictions contained in	42
Chapters 1101. to 1127. of the Revised Code, a trust company	43
licensed under Chapter 1111. of the Revised Code or a national	44
bank, federal savings bank, or federal savings association that	45
pledges securities in accordance with section 1111.04 of the	46
Revised Code or the individuals described in division (C)(2) of	47
this section have the power as trustee to receive and to hold and	48
invest in accordance with sections 2109.37 and 2109.371 of the	49
Revised Code moneys under a preneed cemetery merchandise and	50
services contract.	51

(C)(1) ~~The greater of~~Either one hundred ten per cent of the	52
seller's actual cost or thirty per cent of the seller's retail	53
price of the merchandise and seventy per cent of the seller's	54
retail price of the services to be provided under a preneed	55
cemetery merchandise and services contract shall remain intact as	56
a fund until the death of the person for whose benefit the	57
contract is made or the merchandise is delivered as set forth in	58
division (K) of this section. However, any moneys held pursuant to	59
this section shall be released upon demand of the person for whose	60
benefit the contract was made or upon the demand of the seller for	61
its share of the moneys held and earned interest if the contract	62
has been canceled as set forth in division (G) of this section.	63

(2) The trustee of the fund described in division (C)(1) of	64
this section shall be a trust company licensed under Chapter 1111.	65
of the Revised Code or a national bank, federal savings bank, or	66
federal savings association that pledges securities in accordance	67
with section 1111.04 of the Revised Code or at least three	68
individuals who have been residents of the county in which the	69
seller is located for at least one year, each of whom shall be	70
bonded by a corporate surety in an amount that is at least equal	71
to the amount deposited in the fund of which those persons serve	72
as trustee. Amounts in the fund shall be held and invested in	73
the manner in which trust funds are permitted to be held and	74
invested pursuant to sections 2109.37 and 2109.371 of the Revised	75
Code.	76

(3) Every preneed cemetery and merchandise contract entered	77
into on or after ~~the effective date of this amendment~~October 12,	78
2006, shall include a provision in substantially the following	79
form:	80

NOTICE: Under Ohio law, the person holding the right of	81
disposition of the remains of the beneficiary of this contract	82
pursuant to section 2108.70 or 2108.81 of the Revised Code will	83
have the right to purchase cemetery merchandise and services	84
inconsistent with the merchandise and services set forth in this	85
contract. However, the beneficiary is encouraged to state ~~his or~~	86
~~her~~the beneficiary's preferences as to the manner of final	87
disposition in a declaration of the right of disposition pursuant	88
to section 2108.72 of the Revised Code, including that the	89
arrangements set forth in this contract shall be followed.	90

(D) Within thirty days after the last business day of the	91
month in which the seller of cemetery merchandise or services	92
receives final contractual payment under a preneed cemetery	93
merchandise and services contract, the seller shall deliver ~~the~~	94
~~greater of~~either one hundred ten per cent of the seller's actual	95
cost or thirty per cent of the seller's retail price of the	96
merchandise and seventy per cent of the seller's current retail	97
price of the services as of the date of the contract to a trustee	98
or to trustees as described in division (C)(2) of this section,	99
and the moneys and accruals or income on the moneys shall be held	100
in a fund and designated for the person for whose benefit the fund	101
was established as a preneed cemetery merchandise and services	102
contract fund.	103

(E) The moneys received from more than one preneed cemetery	104
merchandise and services contract may, at the option of the	105
persons for whose benefit the contracts are made, be placed in a	106
common or pooled trust fund in this state under a single trust	107
instrument. If three individuals are designated as the trustees as	108
provided in division (C)(2) of this section, they shall be bonded	109
by a corporate surety or fidelity bond in an aggregate amount of	110
not less than one hundred per cent of the funds held by them as	111
trustees. The trustees or their agent shall, on a continuous	112
basis, keep exact records as to the amount of funds under a single	113
trust instrument being held for the individual beneficiaries	114
showing the amount paid, the amount deposited and invested, and	115
accruals and income.	116

(F) The seller of merchandise or services under a preneed	117
cemetery merchandise and services contract shall annually submit	118
to the division of real estate of the department of commerce an	119
affidavit in a form prescribed by the division, sworn under oath,	120
specifying each of the following:	121

(1) That, within the time specified in division (D) of this	122
section, the amounts required by that division were deposited in	123
an appropriate fund;	124

(2) That the fund has not been used to collateralize or	125
guarantee loans and has not otherwise been subjected to any	126
consensual lien;	127

(3) That the fund is invested in compliance with the	128
investing standards set forth in sections 2109.37 and 2109.371 of	129
the Revised Code;	130

(4) That no moneys have been removed from the fund, except as	131
provided for in this section.	132

(G) This division is subject to division (I) of this section.

133

Any person upon initially entering into a preneed cemetery	134
merchandise and services contract may, within seven days, cancel	135
the contract and request and receive from the seller one hundred	136
per cent of all payments made under the contract. After the	137
expiration of the above period, any person who has entered into a	138
preneed cemetery merchandise and services contract may, on not	139
less than fifteen days' notice, cancel the contract and request	140
and receive from the seller sixty per cent of the payments made	141
under the contract which have been paid up to the time of	142
cancellation; except that, if a preneed cemetery merchandise and	143
services contract stipulates a firm or fixed or guaranteed price	144
for the merchandise or services for future use at a time	145
determined by the death of the person on behalf of whom payments	146
are made, the person who has entered into the contract may, if the	147
merchandise has not been delivered or the services have not been	148
performed as set forth in division (K) or (L) of this section, on	149
not less than fifteen days' notice, cancel the contract and	150
receive from the seller sixty per cent of the principal paid	151
pursuant to the contract and not less than eighty per cent of any	152
interest paid, up to the time of cancellation, and not less than	153
eighty per cent of any accrual or income earned while the moneys	154
have been held pursuant to divisions (C) and (D) of this section,	155
up to the time of cancellation. Upon cancellation, after the	156
moneys have been distributed to the beneficiary pursuant to this	157
division, all remaining moneys being held pursuant to divisions	158
(C) and (D) of this section shall be paid to the seller. If more	159
than one person enters into the contract, all of those persons	160
must request cancellation for it to be effective under this	161
division. In such a case, the seller shall refund to each person	162
only those moneys that each person has paid under the contract.	163

(H) Upon receipt of a certified copy of the certificate of	164
death or evidence of delivery of the merchandise or performance of	165
the services pursuant to division (K) or (L) of this section, the	166
trustee described in division (C)(2) of this section or its agent,	167
shall forthwith pay the fund and accumulated interest, if any, to	168
the person entitled to them under the preneed cemetery merchandise	169
and services contract. The payment of the fund and accumulated	170
interest pursuant to this section, either to a seller or person	171
making the payments, shall relieve the trustee of any further	172
liability on the fund or accumulated interest.	173

(I) Notwithstanding any other provision of this section, any	174
preneed cemetery merchandise and services contract may specify	175
that it is irrevocable. All irrevocable preneed cemetery	176
merchandise and services contracts shall include a clear and	177
conspicuous disclosure of irrevocability in the contract and any	178
person entering into an irrevocable preneed cemetery merchandise	179
and services contract shall sign a separate acknowledgment of the	180
person's waiver of the right to revoke. If a contract satisfies	181
the requirements of this division, division (G) of this section	182
does not apply to that contract.	183

(J) Any preneed cemetery merchandise and services contract	184
that involves the payment of money shall be in writing and in	185
compliance with the laws and rules of this state.	186

(K) For purposes of this section, the seller is considered to	187
have delivered merchandise pursuant to a preneed cemetery	188
merchandise and services contract when either of the following	189
occur:	190

(1) The seller makes actual delivery of the merchandise to	191
the beneficiary, or the seller pays for the merchandise and	192
identifies it as being stored for the benefit of the beneficiary	193
at a manufacturer's warehouse.	194

(2) The seller receives delivery of the merchandise on behalf	195
of the beneficiary, and all of the following occur:	196

(a) The merchandise is permanently affixed to or stored upon	197
the real property of a cemetery located in this state.	198

(b) The seller notifies the beneficiary of receipt of the	199
merchandise and identifies the specific location of the	200
merchandise.	201

(c) The seller at the time of the beneficiary's final payment	202
provides the beneficiary with evidence of ownership in the	203
beneficiary's name showing the merchandise to be free and clear of	204
any liens or other encumbrances.	205

(L) For purposes of this section, a seller is considered to	206
have performed services pursuant to a preneed cemetery merchandise	207
and services contract when the beneficiary's next of kin signs a	208
written statement that the services have been performed or, if no	209
next of kin of the beneficiary can be located through reasonable	210
diligence, when the owner or other person responsible for the	211
operation of the cemetery signs a statement of that nature.	212

(M) Notwithstanding any other provision of this chapter, any	213
trust may be charged a trustee's fee, which is to be deducted from	214
the earned income or accruals on that trust. The fee shall not	215
exceed the amount that is regularly or usually charged for similar	216
services rendered by the trustee described in division (C)(2) of	217
this section when serving as a trustee.	218

(N) The general assembly intends that this section be	219
construed as a limitation upon the manner in which a person is	220
permitted to accept moneys in prepayment for merchandise and	221
services to be delivered or provided in the future, or merchandise	222
and services to be used or provided in connection with the final	223
disposition of human remains, to the end that at all times members	224
of the public may have an opportunity to arrange and pay for	225
merchandise and services for themselves and their families in	226
advance of need while at the same time providing all possible	227
safeguards whereunder the prepaid moneys cannot be dissipated,	228
whether intentionally or not, so as to be available for the	229
payment for merchandise and services and the providing of	230
merchandise and services used or provided in connection with the	231
final disposition of dead human bodies.	232

(O) This section does not apply to the seller or provider of	233
merchandise or services under a preneed cemetery merchandise and	234
services contract if the contract pertains to a cemetery that is	235
owned and operated entirely and exclusively by an established and	236
legally cognizable church or denomination that is exempt from	237
federal income taxation under section 501(c)(3) of the "Internal	238
Revenue Code of 1954," 26 U.S.C.A. 501, an established fraternal	239
organization, or a municipal corporation or other political	240
subdivision of the state, to a cemetery that is a national	241
cemetery, or to a cemetery that is a family cemetery as defined in	242
section 4767.02 of the Revised Code; provided that, on a voluntary	243
basis, rules and other measures are adopted to safeguard and	244
secure all moneys received under a preneed cemetery merchandise	245
and services contract.	246

(P) This section does not prohibit persons other than	247
cemetery corporations or associations from selling outer burial	248
containers, monuments, markers, urns, or other types of	249
merchandise customarily sold by cemeteries pursuant to a preneed	250
cemetery merchandise and services contract; however all sellers of	251
merchandise pursuant to a preneed cemetery merchandise and	252
services contract shall comply with this section unless the seller	253
is specifically exempt from this section.	254

(Q) Any contract for preneed services or merchandise entered	255
into with a cemetery not registered under section 4767.03 of the	256
Revised Code is voidable.	257

Sec. 1733.51. A credit union may, subject to sections	258
~~1111.19 and~~ 1721.211 and 4717.31 to 4717.38 of the Revised Code,	259
receive and hold on deposit moneys under a preneed funeral	260
contract or preneed cemetery merchandise and services contract.	261

Sec. 2108.81. (A) If either of the following is true,	262
division (B) of this section shall apply:	263

(1) An adult has not executed a written declaration pursuant	264
to sections 2108.70 to 2108.73 of the Revised Code that remains in	265
force at the time of the adult's death.	266

(2) Each person to whom the right of disposition has been	267
assigned or reassigned pursuant to a written declaration is	268
disqualified from exercising the right as described in section	269
2108.75 of the Revised Code.	270

(B) Subject to division (A) of this section and sections	271
2108.75 and 2108.79 of the Revised Code, the right of disposition	272
is assigned to the following persons, if mentally competent adults	273
who can be located with reasonable effort, in the order of	274
priority stated:	275

(1) The deceased person's surviving spouse;

276

(2) The sole surviving child of the deceased person or, if	277
there is more than one surviving child, all of the surviving	278
children, collectively.;	279

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

280

(4) The deceased person's surviving sibling, whether of the	281
whole or of the half blood or, if there is more than one sibling	282
of the whole or of the half blood, all of the surviving siblings,	283
collectively;	284

(5) The deceased person's surviving grandparent or	285
grandparents;	286

(6) The deceased person's surviving grandchild, or if there	287
is more than one surviving grandchild, all of the surviving	288
grandchildren collectively;	289

(7) The lineal descendants of the deceased person's	290
grandparents, as described in division (I) of section 2105.06 of	291
the Revised Code;	292

~~(7)~~(8) The person who was the deceased person's guardian at	293
the time of the deceased person's death, if a guardian had been	294
appointed;	295

~~(8)~~(9) Any other person willing to assume the right of	296
disposition, including the personal representative of the deceased	297
person's estate or the licensed funeral director with custody of	298
the deceased person's body, after attesting in writing that a good	299
faith effort has been made to locate the persons in divisions	300
(B)(1) to (7) of this section.	301

(10) If the deceased person was an indigent person or other	302
person the final disposition of whose body is the financial and	303
statutory responsibility of the state or a political subdivision	304
of this state, the public officer or employee responsible for	305
arranging the final disposition of the remains of the deceased	306
person.	307

Sec. 2117.251. A claim under the bill of a funeral director	308
pursuant to section 2117.25 of the Revised Code arises subsequent	309
to the death of the decedent and is not in satisfaction of a	310
personal obligation of the individual during the individual's	311
lifetime. If a decedent during the decedent's lifetime has	312
purchased an irrevocable preneed funeral contract pursuant to	313
section ~~1111.19~~4717.34 of the Revised Code, then those provisions	314
of section 2117.25 of the Revised Code that relate to the bill of	315
a funeral director, including divisions (A) and (B) of that	316
section, do not apply to the estate of the decedent and the estate	317
is not liable for the funeral expenses of the decedent.	318

Sec. 3103.03. (A) Each married person must support the	319
person's self and spouse out of the person's property or by the	320
person's labor. If a married person is unable to do so, the spouse	321
of the married person must assist in the support so far as the	322
spouse is able. The biological or adoptive parent of a minor child	323
must support the parent's minor children out of the parent's	324
property or by the parent's labor.	325

(B) Notwithstanding section 3109.01 of the Revised Code and	326
to the extent provided in section ~~3319.86~~3119.86 of the Revised	327
Code, the parental duty of support to children shall continue	328
beyond the age of majority as long as the child continuously	329
attends on a full-time basis any recognized and accredited high	330
school. That duty of support shall continue during seasonal	331
vacation periods.	332

(C) If a married person neglects to support the person's	333
spouse in accordance with this section, any other person, in good	334
faith, may supply the spouse with necessaries for the support of	335
the spouse and recover the reasonable value of the necessaries	336
supplied from the married person who neglected to support the	337
spouse unless the spouse abandons that person without cause.	338

(D) If a parent neglects to support the parent's minor child	339
in accordance with this section and if the minor child in question	340
is unemancipated, any other person, in good faith, may supply the	341
minor child with necessaries for the support of the minor child	342
and recover the reasonable value of the necessaries supplied from	343
the parent who neglected to support the minor child.	344

(E) If a decedent during the decedent's lifetime has	345
purchased an irrevocable preneed funeral contract pursuant to	346
section ~~1109.75~~4717.34 of the Revised Code, then the duty of	347
support owed to a spouse pursuant to this section does not include	348
an obligation to pay for the funeral expenses of the deceased	349
spouse. This division does not preclude a surviving spouse from	350
assuming by contract the obligation to pay for the funeral	351
expenses of the deceased spouse.	352

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

353

(1) "Laws of this state relating to insurance" include but	354
are not limited to Chapter 1751. notwithstanding section 1751.08,	355
Chapter 1753., Title XXXIX, sections 5725.18 to 5725.25, and	356
Chapter 5729. of the Revised Code. Sections 4717.31, 4717.33,	357
4717.34, 4717.35, and 4717.37 of the Revised Code are "laws of	358
this state relating to insurance" to the extent those sections	359
apply to insurance companies or insurance agents.	360

(2) "Person" has the meaning defined in division (A) of	361
section 3901.19 of the Revised Code.	362

(B) Whenever it appears to the superintendent of insurance,	363
from the superintendent's files, upon complaint or otherwise, that	364
any person has engaged in, is engaged in, or is about to engage in	365
any act or practice declared to be illegal or prohibited by the	366
laws of this state relating to insurance, or defined as unfair or	367
deceptive by such laws, or when the superintendent believes it to	368
be in the best interest of the public and necessary for the	369
protection of the people in this state, the superintendent or	370
anyone designated by the superintendent under the superintendent's	371
official seal may do any one or more of the following:	372

(1) Require any person to file with the superintendent, on a	373
form that is appropriate for review by the superintendent, an	374
original or additional statement or report in writing, under oath	375
or otherwise, as to any facts or circumstances concerning the	376
person's conduct of the business of insurance within this state	377
and as to any other information that the superintendent considers	378
to be material or relevant to such business;	379

(2) Administer oaths, summon and compel by order or subpoena	380
the attendance of witnesses to testify in relation to any matter	381
which, by the laws of this state relating to insurance, is the	382
subject of inquiry and investigation, and require the production	383
of any book, paper, or document pertaining to such matter. A	384
subpoena, notice, or order under this section may be served by	385
certified mail, return receipt requested. If the subpoena, notice,	386
or order is returned because of inability to deliver, or if no	387
return is received within thirty days of the date of mailing, the	388
subpoena, notice, or order may be served by ordinary mail. If no	389
return of ordinary mail is received within thirty days after the	390
date of mailing, service shall be deemed to have been made. If the	391
subpoena, notice, or order is returned because of inability to	392
deliver, the superintendent may designate a person or persons to	393
effect either personal or residence service upon the witness.	394
Service of any subpoena, notice, or order and return may also be	395
made in any manner authorized under the Rules of Civil Procedure.	396
Such service shall be made by an employee of the department	397
designated by the superintendent, a sheriff, a deputy sheriff, an	398
attorney, or any person authorized by the Rules of Civil Procedure	399
to serve process.	400

In the case of disobedience of any notice, order, or subpoena	401
served on a person or the refusal of a witness to testify to a	402
matter regarding which the person may lawfully be interrogated,	403
the court of common pleas of the county where venue is	404
appropriate, on application by the superintendent, may compel	405
obedience by attachment proceedings for contempt, as in the case	406
of disobedience of the requirements of a subpoena issued from such	407
court, or a refusal to testify therein. Witnesses shall receive	408
the fees and mileage allowed by section 2335.06 of the Revised	409
Code. All such fees, upon the presentation of proper vouchers	410
approved by the superintendent, shall be paid out of the	411
appropriation for the contingent fund of the department of	412
insurance. The fees and mileage of witnesses not summoned by the	413
superintendent or the superintendent's designee shall not be paid	414
by the state.	415

(3) In a case in which there is no administrative procedure	416
available to the superintendent to resolve a matter at issue,	417
request the attorney general to commence an action for a	418
declaratory judgment under Chapter 2721. of the Revised Code with	419
respect to the matter.	420

(4) Initiate criminal proceedings by presenting evidence of	421
the commission of any criminal offense established under the laws	422
of this state relating to insurance to the prosecuting attorney of	423
any county in which the offense may be prosecuted. At the request	424
of the prosecuting attorney, the attorney general may assist in	425
the prosecution of the violation with all the rights, privileges,	426
and powers conferred by law on prosecuting attorneys including,	427
but not limited to, the power to appear before grand juries and to	428
interrogate witnesses before grand juries.	429

Sec. 3905.451. A life insurance policy or annuity that is	430
issued, sold, or assigned for the purpose of purchasing funeral	431
or burial goods or services, and the contractual obligation to	432
provide the goods or services, are not subject to section ~~1111.19~~	433
4717.36 of the Revised Code.	434

Sec. 4717.01. As used in this chapter:

435

(A) "Embalming" means the preservation and disinfection, or	436
attempted preservation and disinfection, of the dead human body by	437
application of chemicals externally, internally, or both.	438

(B) "Funeral business" means a sole proprietorship,	439
partnership, corporation, limited liability company, or other	440
business entity that is engaged in funeral directing for profit or	441
for free from one or more funeral homes licensed under this	442
chapter.	443

(C) "Funeral directing" means the business or profession of	444
directing or supervising funerals for profit, the arrangement or	445
sale of funeral services, the filling out or execution of a	446
funeral service contract, the business or profession of preparing	447
dead human bodies for burial by means other than embalming, the	448
disposition of dead human bodies, the provision or maintenance of	449
a place for the preparation, the care, or disposition of dead	450
human bodies, the use in connection with a business of the term	451
"funeral director," "undertaker," "mortician," or any other term	452
from which can be implied the business of funeral directing, or	453
the holding out to the public that one is a funeral director or a	454
disposer of dead human bodies.	455

(D) "Funeral home" means a fixed place for the care,	456
preparation for burial, or disposition of dead human bodies or the	457
conducting of funerals. Each business location is a funeral home,	458
regardless of common ownership or management.	459

(E) "Embalmer" means a person who engages, in whole or in	460
part, in embalming and who is licensed under this chapter.	461

(F) "Funeral director" means a person who engages, in whole	462
or in part, in funeral directing and who is licensed under this	463
chapter.	464

(G) "Final disposition" has the same meaning as in division	465
(J) of section 3705.01 of the Revised Code.	466

(H) "Supervision" means the operation of all phases of the	467
business of funeral directing or embalming under the specific	468
direction of a licensed funeral director or licensed embalmer.	469

(I) "Direct supervision" means the physical presence of a	470
licensed funeral director or licensed embalmer while the specific	471
functions of the funeral or embalming are being carried out.	472

(J) "Embalming facility" means a fixed location, separate	473
from the funeral home, that is licensed under this chapter whose	474
only function is the embalming and preparation of dead human	475
bodies.	476

(K) "Crematory facility" means the physical location at which	477
a cremation chamber is located and the cremation process takes	478
place. "Crematory facility" does not include an infectious waste	479
incineration facility for which a license is held under division	480
(B) of section 3734.05 of the Revised Code, or a solid waste	481
incineration facility for which a license is held under division	482
(A) of that section that includes a notation pursuant to division	483
(B)(3) of that section authorizing the facility to also treat	484
infectious wastes, in connection with the incineration of body	485
parts other than dead human bodies that were donated to science	486
for purposes of medical education or research.	487

(L) "Crematory" means the building or portion of a building	488
that houses the holding facility and the cremation chamber.	489

(M) "Cremation" means the technical process of using heat and	490
flame to reduce human or animal remains to bone fragments or ashes	491
or any combination thereof. "Cremation" includes processing and	492
may include the pulverization of bone fragments.	493

(N) "Cremation chamber" means the enclosed space within which	494
cremation takes place.	495

(O) "Cremated remains" means all human or animal remains	496
recovered after the completion of the cremation process, which may	497
include the residue of any foreign matter such as casket material,	498
dental work, or eyeglasses that were cremated with the human or	499
animal remains.	500

(P) "Lapsed license" means a license issued under this	501
chapter that has become invalid because of the failure of the	502
licensee to renew the license within the time limits prescribed	503
under this chapter.	504

(Q) "Operator of a crematory facility" means the sole	505
proprietorship, partnership, corporation, limited liability	506
company, or other business entity responsible for the overall	507
operation of a crematory facility.	508

(R) "Processing" means the reduction of identifiable bone	509
fragments to unidentifiable bone fragments through manual or	510
mechanical means after the completion of the cremation process.	511

(S) "Pulverization" means the reduction of identifiable bone	512
fragments to granulated particles by manual or mechanical means	513
after the completion of the cremation process.	514

(T) "Preneed funeral contract" means a written agreement,	515
contract, or series of contracts to sell or otherwise provide any	516
funeral services, funeral goods, or any combination thereof to be	517
used in connection with the funeral or final disposition of a	518
dead human body, where payment for the goods or services is made	519
either outright or on an installment basis, prior to the death of	520
the person purchasing the goods or services or for whom the goods	521
or services are purchased. "Preneed funeral contract" does not	522
include any preneed cemetery merchandise and services contract or	523
any agreement, contract, or series of contracts pertaining to the	524
sale of any burial lot, burial or interment right, entombment	525
right, or columbarium right with respect to which an endowment	526
care fund is established or is exempt from establishment pursuant	527
to section 1721.21 of the Revised Code.	528

For the purposes of division (T) of this section, "funeral	529
goods" includes caskets.	530

(U) "Purchaser" means the individual who has purchased and	531
financed a preneed funeral contract, and who may or may not be the	532
contract beneficiary.	533

(V) "Contract beneficiary" means the individual for whom	534
funeral goods and funeral services are provided pursuant to a	535
preneed funeral contract.	536

(W) "Seller" means any person that enters into a preneed	537
funeral contract with a purchaser for the provision of funeral	538
goods, funeral services, or both.	539

Sec. 4717.03. (A) Members of the board of embalmers and	540
funeral directors shall annually in July, or within thirty days	541
after the senate's confirmation of the new members appointed in	542
that year, meet and organize by selecting from among its members a	543
president, vice-president, and secretary-treasurer. The board may	544
hold other meetings as it determines necessary. A quorum of the	545
board consists of four members, of whom at least three shall be	546
members who are embalmers and funeral directors. The concurrence	547
of at least four members is necessary for the board to take any	548
action. The president and secretary-treasurer shall sign all	549
licenses issued under this chapter and affix the board's seal to	550
each license.	551

(B) The board may appoint an individual who is not a member	552
of the board to serve as executive director of the board. The	553
executive director serves at the pleasure of the board and shall	554
do all of the following:	555

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

556

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

557

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

558

In executing the board's orders, the executive director may	559
enter the premises, establishment, office, or place of business of	560
any embalmer, funeral director, or operator of a crematory	561
facility in this state. The executive director may serve and	562
execute any process issued by any court under this chapter.	563

(C) The board may employ clerical or technical staff who are	564
not members of the board and who serve at the pleasure of the	565
board to provide any clerical or technical assistance the board	566
considers necessary. The board may employ necessary inspectors,	567
who shall be licensed embalmers and funeral directors. Any	568
inspector employed by the board may enter the premises,	569
establishment, office, or place of business of any embalmer,	570
funeral director, or operator of a crematory facility in this	571
state, for the purposes of inspecting the facility and premises;	572
the license and registration of embalmers and funeral directors	573
operating in the facility; and the license of the funeral home,	574
embalming facility, or crematory. The inspector shall serve and	575
execute any process issued by any court under this chapter, serve	576
and execute any papers or process issued by the board or any	577
officer or member of the board, and perform any other duties	578
delegated by the board.	579

(D) The president of the board shall designate three of its	580
members to serve on the crematory review board, which is hereby	581
created, for such time as the president finds appropriate to carry	582
out the provisions of this chapter. Those members of the crematory	583
review board designated by the president to serve and three	584
members designated by the cemetery dispute resolution commission	585
shall designate, by a majority vote, one person who is experienced	586
in the operation of a crematory facility and who is not affiliated	587
with a cemetery or a funeral home to serve on the crematory review	588
board for such time as the crematory review board finds	589
appropriate. Members serving on the crematory review board shall	590
not receive any additional compensation for serving on the board,	591
but may be reimbursed for their actual and necessary expenses	592
incurred in the performance of official duties as members of the	593
board. Members of the crematory review board shall designate one	594
from among its members to serve as a chairperson for such time as	595
the board finds appropriate. Costs associated with conducting an	596
adjudicatory hearing in accordance with division (E) of this	597
section shall be paid from funds available to the board of	598
embalmers and funeral directors.	599

(E) Upon receiving written notice from the board of embalmers	600
and funeral directors of any of the following, the crematory	601
review board shall conduct an adjudicatory hearing on the matter	602
in accordance with Chapter 119. of the Revised Code, except as	603
otherwise provided in this section or division (C) of section	604
4717.14 of the Revised Code:	605

(1) Notice provided under division (H) of this section of an	606
alleged violation of any provision of this chapter or any rules	607
adopted under this chapter~~, or section 1111.19 of the Revised~~	608
~~Code,~~ governing or in connection with crematory facilities or	609
cremation;	610

(2) Notice provided under division (B) of section 4717.14 of	611
the Revised Code that the board of embalmers and funeral directors	612
proposes to refuse to grant or renew, or to suspend or revoke, a	613
license to operate a crematory facility;	614

(3) Notice provided under division (C) of section 4717.14 of	615
the Revised Code that the board of embalmers and funeral directors	616
has issued an order summarily suspending a license to operate a	617
crematory facility;	618

(4) Notice provided under division (B) of section 4717.15 of	619
the Revised Code that the board of embalmers and funeral directors	620
proposes to issue a notice of violation and order requiring	621
payment of a forfeiture for any violation described in divisions	622
(A)(9)(a) to (g) of section 4717.04 of the Revised Code alleged in	623
connection with a crematory facility or cremation.	624

Nothing in division (E) of this section precludes the	625
crematory review board from appointing an independent examiner in	626
accordance with section 119.09 of the Revised Code to conduct any	627
adjudication hearing required under division (E) of this section.	628

The crematory review board shall submit a written report of	629
findings and advisory recommendations, and a written transcript of	630
its proceedings, to the board of embalmers and funeral directors.	631
The board of embalmers and funeral directors shall serve a copy of	632
the written report of the crematory review board's findings and	633
advisory recommendations on the party to the adjudication or the	634
party's attorney, by certified mail, within five days after	635
receiving the report and advisory recommendations. A party may	636
file objections to the written report with the board of embalmers	637
and funeral directors within ten days after receiving the report.	638
No written report is final or appealable until it is issued as a	639
final order by the board of embalmers and funeral directors and	640
entered on the record of the proceedings. The board of embalmers	641
and funeral directors shall consider objections filed by the party	642
prior to issuing a final order. After reviewing the findings and	643
advisory recommendations of the crematory review board, the	644
written transcript of the crematory review board's proceedings,	645
and any objections filed by a party, the board of embalmers and	646
funeral directors shall issue a final order in the matter. Any	647
party may appeal the final order issued by the board of embalmers	648
and funeral directors in a matter described in divisions (E)(1) to	649
(4) of this section in accordance with section 119.12 of the	650
Revised Code, except that the appeal may be made to the court of	651
common pleas in the county in which is located the crematory	652
facility to which the final order pertains, or in the county in	653
which the party resides.	654

(F) On its own initiative or on receiving a written complaint	655
from any person whose identity is made known to the board of	656
embalmers and funeral directors, the board shall investigate the	657
acts or practices of any person holding or claiming to hold a	658
license or registration under this chapter that, if proven to have	659
occurred, would violate this chapter or any rules adopted under	660
it~~, or section 1111.19 of the Revised Code~~. The board may compel	661
witnesses by subpoena to appear and testify in relation to	662
investigations conducted under this chapter and may require by	663
subpoena duces tecum the production of any book, paper, or	664
document pertaining to an investigation. If a person does not	665
comply with a subpoena or subpoena duces tecum, the board may	666
apply to the court of common pleas of any county in this state for	667
an order compelling the person to comply with the subpoena or	668
subpoena duces tecum, or for failure to do so, to be held in	669
contempt of court.	670

(G) If, as a result of its investigation conducted under	671
division (F) of this section, the board of embalmers and funeral	672
directors has reasonable cause to believe that the person	673
investigated is violating any provision of this chapter or any	674
rules adopted under this chapter~~, or section 1111.19 of the~~	675
~~Revised Code,~~ governing or in connection with embalming, funeral	676
directing, funeral homes, embalming facilities, or the operation	677
of funeral homes or embalming facilities, it may, after providing	678
the opportunity for an adjudicatory hearing, issue an order	679
directing the person to cease the acts or practices that	680
constitute the violation. The board shall conduct the adjudicatory	681
hearing in accordance with Chapter 119. of the Revised Code except	682
that, notwithstanding the provisions of that chapter, the	683
following shall apply:	684

(1) The board shall send the notice informing the person of	685
the person's right to a hearing by certified mail.	686

(2) The person is entitled to a hearing only if the person	687
requests a hearing and if the board receives the request within	688
thirty days after the mailing of the notice described in division	689
(G)(1) of this section.	690

(3) A stenographic record shall be taken, in the manner	691
prescribed in section 119.09 of the Revised Code, at every	692
adjudicatory hearing held under this section, regardless of	693
whether the record may be the basis of an appeal to a court.	694

(H) If, as a result of its investigation conducted under	695
division (F) of this section, the board of embalmers and funeral	696
directors has reasonable cause to believe that the person	697
investigated is violating any provision of this chapter or any	698
rules adopted under this chapter~~, or section 1111.19 of the~~	699
~~Revised Code,~~ governing or in connection with crematory facilities	700
or cremation, the board shall send written notice of the alleged	701
violation to the crematory review board. If, after the conclusion	702
of the adjudicatory hearing in the matter conducted under division	703
(E) of this section, the board of embalmers and funeral directors	704
finds that a person is in violation of any provision of this	705
chapter or any rules adopted under this chapter~~, or section~~	706
~~1111.19 of the Revised Code,~~ governing or in connection with	707
crematory facilities or cremation, the board may issue a final	708
order under that division directing the person to cease the acts	709
or practices that constitute the violation.	710

(I) The board of embalmers and funeral directors may bring a	711
civil action to enjoin any violation or threatened violation of	712
~~section 1111.19;~~ sections 4717.01 to 4717.15 of the Revised Code	713
or a rule adopted under any of those sections; division (A) or (B)	714
of section 4717.23; division (B)(1) or (2), (C)(1) or (2), (D),	715
(E), or (F)(1) or (2), or divisions (H) to (K) of section 4717.26;	716
division (D)(1) of section 4717.27; or divisions (A) to (C) of	717
section 4717.28, or division (D) or (E) of section 4717.31 of the	718
Revised Code. The action shall be brought in the county where	719
the violation occurred or the threatened violation is expected	720
to occur. At the request of the board, the attorney general	721
shall represent the board in any matter arising under this	722
chapter.	723

(J) The board of embalmers and funeral directors and the	724
crematory review board may issue subpoenas for funeral directors	725
and embalmers or persons holding themselves out as such, for	726
operators of crematory facilities or persons holding themselves	727
out as such, or for any other person whose testimony, in the	728
opinion of either board, is necessary. The subpoena shall require	729
the person to appear before the appropriate board or any	730
designated member of either board, upon any hearing conducted	731
under this chapter. The penalty for disobedience to the command of	732
such a subpoena is the same as for refusal to answer such a	733
process issued under authority of the court of common pleas.	734

(K) All moneys received by the board of embalmers and funeral	735
directors from any source shall be deposited in the state treasury	736
to the credit of the occupational licensing and regulatory fund	737
created in section 4743.05 of the Revised Code.	738

(L) The board of embalmers and funeral directors shall submit	739
a written report to the governor on or before the first Monday of	740
July of each year. This report shall contain a detailed statement	741
of the nature and amount of the board's receipts and the amount	742
and manner of its expenditures.	743

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

744

(1) Engage in the business or profession of funeral directing	745
unless the person is licensed as a funeral director under this	746
chapter, is certified as an apprentice funeral director in	747
accordance with rules adopted under section 4717.04 of the Revised	748
Code and is assisting a funeral director licensed under this	749
chapter, or is a student in a college of mortuary sciences	750
approved by the board and is under the direct supervision of a	751
funeral director licensed by the board;	752

(2) Engage in embalming unless the person is licensed as an	753
embalmer under this chapter, is certified as an apprentice	754
embalmer in accordance with rules adopted under section 4717.04 of	755
the Revised Code and is assisting an embalmer licensed under this	756
chapter, or is a student in a college of mortuary science approved	757
by the board and is under the direct supervision of an embalmer	758
licensed by the board;	759

(3) Advertise or otherwise offer to provide or convey the	760
impression that the person provides funeral directing services	761
unless the person is licensed as a funeral director under this	762
chapter and is employed by or under contract to a licensed funeral	763
home and performs funeral directing services for that funeral home	764
in a manner consistent with the advertisement, offering, or	765
conveyance;	766

(4) Advertise or otherwise offer to provide or convey the	767
impression that the person provides embalming services unless the	768
person is licensed as an embalmer under this chapter and is	769
employed by or under contract to a licensed funeral home or a	770
licensed embalming facility and performs embalming services for	771
the funeral home or embalming facility in a manner consistent with	772
the advertisement, offering, or conveyance;	773

(5) Operate a funeral home without a license to operate the	774
funeral home issued by the board under this chapter;	775

(6) Practice the business or profession of funeral directing	776
from any place except from a funeral home that a person is	777
licensed to operate under this chapter;	778

(7) Practice embalming from any place except from a funeral	779
home or embalming facility that a person is licensed to operate	780
under this chapter;	781

(8) Operate a crematory or perform cremation without a	782
license to operate the crematory issued under this chapter;	783

(9) Cremate animals in a cremation chamber in which dead	784
human bodies or body parts are cremated or cremate dead human	785
bodies or human body parts in a cremation chamber in which animals	786
are cremated.	787

(B) No funeral director or other person in charge of the	788
final disposition of a dead human body shall fail to do one of the	789
following prior to the interment of the body:	790

(1) Affix to the ankle or wrist of the deceased a tag encased	791
in a durable and long-lasting material that contains the name,	792
date of birth, date of death, and social security number of the	793
deceased;	794

(2) Place in the casket a capsule containing a tag bearing	795
the information described in division (B)(1) of this section;	796

(3) If the body was cremated, place in the vessel containing	797
the cremated remains a tag bearing the information described in	798
division (B)(1) of this section.	799

(C) No person who holds a funeral home license for a funeral	800
home that is closed, or that is owned by a funeral business in	801
which changes in the ownership of the funeral business result in a	802
majority of the ownership of the funeral business being held by	803
one or more persons who solely or in combination with others did	804
not own a majority of the funeral business immediately prior to	805
the change in ownership, shall fail to submit to the board within	806
thirty days after the closing or such a change in ownership of the	807
funeral business owning the funeral home, a clearly enumerated	808
account of all of the following from which the licensee, at the	809
time of the closing or change in ownership of the funeral business	810
and in connection with the funeral home, was to receive payment	811
for providing funeral services, funeral goods, or any combination	812
of those in connection with the funeral or final disposition of a	813
dead human body:	814

(1) Preneed funeral contracts governed by ~~section 1111.19~~	815
sections 4717.31 to 4717.38 of the Revised Code;	816

(2) Life insurance policies or annuities the benefits of	817
which are payable to the provider of funeral or burial goods or	818
services;	819

(3) Accounts at banks or savings banks insured by the federal	820
deposit insurance corporation, savings and loan associations	821
insured by the federal savings and loan insurance corporation or	822
the Ohio deposit guarantee fund, or credit unions insured by the	823
national credit union administration or a credit union share	824
guaranty corporation organized under Chapter 1761. of the Revised	825
Code that are payable upon the death of the person for whose	826
benefit deposits into the accounts were made.	827

Sec. 4717.14. (A) The board of embalmers and funeral	828
directors may refuse to grant or renew, or may suspend or revoke,	829
any license issued under this chapter for any of the following	830
reasons:	831

(1) The license was obtained by fraud or misrepresentation	832
either in the application or in passing the examination.	833

(2) The applicant or licensee has been convicted of or has	834
pleaded guilty to a felony or of any crime involving moral	835
turpitude.	836

(3) The applicant or licensee has purposely violated any	837
provision of sections 4717.01 to 4717.15 or a rule adopted under	838
any of those sections; division (A) or (B) of section 4717.23;	839
division (B)(1) or (2), (C)(1) or (2), (D), (E), or (F)(1) or (2),	840
or divisions (H) to (K) of section 4717.26; division (D)(1) of	841
section 4717.27; or divisions (A) to (C) of section 4717.28 of the	842
Revised Code; any rule or order of the department of health or a	843
board of health of a health district governing the disposition of	844
dead human bodies; or any other rule or order applicable to the	845
applicant or licensee.	846

(4) The applicant or licensee has committed immoral or	847
unprofessional conduct.	848

(5) The applicant or licensee knowingly permitted an	849
unlicensed person, other than a person serving an apprenticeship,	850
to engage in the profession or business of embalming or funeral	851
directing under the applicant's or licensee's supervision.	852

(6) The applicant or licensee has been habitually	853
intoxicated, or is addicted to the use of morphine, cocaine, or	854
other habit-forming or illegal drugs.	855

(7) The applicant or licensee has refused to promptly submit	856
the custody of a dead human body upon the express order of the	857
person legally entitled to the body.	858

(8) The licensee loaned the licensee's own license, or the	859
applicant or licensee borrowed or used the license of another	860
person, or knowingly aided or abetted the granting of an improper	861
license.	862

(9) The applicant or licensee transferred a license to	863
operate a funeral home, embalming facility, or crematory from one	864
owner or operator to another, or from one location to another,	865
without notifying the board.	866

(10) The applicant or licensee mislead the public by using	867
false or deceptive advertising.	868

(B)(1) The board of embalmers and funeral directors shall	869
refuse to grant or renew, or shall suspend or revoke, an	870
embalmer's, funeral director's, funeral home, or embalming	871
facility license only in accordance with Chapter 119. of the	872
Revised Code.	873

(2) The board shall send to the crematory review board	874
written notice that it proposes to refuse to issue or renew, or	875
proposes to suspend or revoke, a license to operate a crematory	876
facility. If, after the conclusion of the adjudicatory hearing on	877
the matter conducted under division (E) of section 4717.03 of the	878
Revised Code, the board of embalmers and funeral directors finds	879
that any of the circumstances described in divisions (A)(1) to	880
(10) of this section apply to the person named in its proposed	881
action, the board may issue a final order under division (E) of	882
section 4717.03 of the Revised Code refusing to issue or renew, or	883
suspending or revoking, the person's license to operate a	884
crematory facility.	885

(C) If the board of embalmers and funeral directors	886
determines that there is clear and convincing evidence that any of	887
the circumstances described in divisions (A)(1) to (10) of this	888
section apply to the holder of a license issued under this chapter	889
and that the licensee's continued practice presents a danger of	890
immediate and serious harm to the public, the board may suspend	891
the licensee's license without a prior adjudicatory hearing. The	892
executive director of the board shall prepare written allegations	893
for consideration by the board.	894

The board, after reviewing the written allegations, may	895
suspend a license without a prior hearing.	896

The board shall issue a written order of suspension by	897
certified mail or in person in accordance with section 119.07 of	898
the Revised Code. Such an order is not subject to suspension by	899
the court during the pendency of any appeal filed under section	900
119.12 of the Revised Code. If the holder of an embalmer's,	901
funeral director's, funeral home, or embalming facility license	902
requests an adjudicatory hearing by the board, the date set for	903
the hearing shall be within fifteen days, but not earlier than	904
seven days, after the licensee has requested a hearing, unless the	905
board and the licensee agree to a different time for holding the	906
hearing.	907

Upon issuing a written order of suspension to the holder of a	908
license to operate a crematory facility, the board of embalmers	909
and funeral directors shall send written notice of the issuance of	910
the order to the crematory review board. The crematory review	911
board shall hold an adjudicatory hearing on the order under	912
division (E) of section 4717.03 of the Revised Code within fifteen	913
days, but not earlier than seven days, after the issuance of the	914
order, unless the crematory review board and the licensee agree to	915
a different time for holding the adjudicatory hearing.	916

Any summary suspension imposed under this division shall	917
remain in effect, unless reversed on appeal, until a final	918
adjudicatory order issued by the board of embalmers and funeral	919
directors pursuant to this division and Chapter 119. of the	920
Revised Code, or division (E) of section 4717.03 of the Revised	921
Code, as applicable, becomes effective. The board of embalmers and	922
funeral directors shall issue its final adjudicatory order within	923
sixty days after the completion of its hearing or, in the case of	924
the summary suspension of a license to operate a crematory	925
facility, within sixty days after completion of the adjudicatory	926
hearing by the crematory review board. A failure to issue the	927
order within that time results in the dissolution of the summary	928
suspension order, but does not invalidate any subsequent final	929
adjudicatory order.	930

(D) If the board of embalmers and funeral directors suspends	931
or revokes a license held by a funeral director or a funeral home	932
for any reason identified in division (A) of this section and the	933
board has clear and convincing evidence that the funeral home that	934
holds the suspended or revoked license or the licensed funeral	935
home that employs the funeral director that holds the suspended or	936
revoked license is insolvent or is unable to perform its	937
contractual obligation under the preneed funeral contracts to	938
which it is a party, the board may file a complaint with the	939
court of common pleas in the county where the funeral home is	940
located requesting appointment of a receiver to operate or	941
liquidate such funeral home. If the court of common pleas is	942
satisfied with the application for a receivership, the court may	943
appoint a receiver.	944

The board or a receiver may employ and procure whatever	945
assistance or advice is necessary in the receivership or	946
liquidation and distribution of the assets of the funeral home,	947
and, for that purpose, may retain officers or employees of the	948
funeral home as needed. All expenses of the receivership or	949
liquidation shall be paid from the assets of the funeral home and	950
shall be a lien on those assets, and that lien shall be a priority	951
to any other lien.	952

(E) Any holder of a license issued under this chapter who has	953
pleaded guilty to, has been found by a judge or jury to be guilty	954
of, or has had a judicial finding of eligibility for treatment in	955
lieu of conviction entered against the individual in this state	956
for aggravated murder, murder, voluntary manslaughter, felonious	957
assault, kidnapping, rape, sexual battery, gross sexual	958
imposition, aggravated arson, aggravated robbery, or aggravated	959
burglary, or who has pleaded guilty to, has been found by a judge	960
or jury to be guilty of, or has had a judicial finding of	961
eligibility for treatment in lieu of conviction entered against	962
the individual in another jurisdiction for any substantially	963
equivalent criminal offense, is hereby suspended from practice	964
under this chapter by operation of law, and any license issued to	965
the individual under this chapter is hereby suspended by operation	966
of law as of the date of the guilty plea, verdict or finding of	967
guilt, or judicial finding of eligibility for treatment in lieu of	968
conviction, regardless of whether the proceedings are brought in	969
this state or another jurisdiction. The board shall notify the	970
suspended individual of the suspension of the individual's license	971
by the operation of this division by certified mail or in person	972
in accordance with section 119.07 of the Revised Code. If an	973
individual whose license is suspended under this division fails to	974
make a timely request for an adjudicatory hearing, the board shall	975
enter a final order revoking the license.	976

~~(E)~~(F) No person whose license has been suspended or revoked	977
under or by the operation of this section shall practice embalming	978
or funeral directing or operate a funeral home, embalming	979
facility, or crematory facility until the board has reinstated the	980
person's license.	981

Sec. 4717.31. (A) Only a funeral director licensed pursuant	982
to this chapter may sell a preneed funeral contract that includes	983
funeral services. Sections 4717.31 to 4717.38 of the Revised Code	984
do not prohibit a person who is not a licensed funeral director	985
from selling funeral goods pursuant to a preneed funeral contract;	986
however, when a seller sells funeral goods pursuant to a preneed	987
funeral contract, that seller shall comply with those sections	988
unless the seller is specifically exempt from compliance under	989
section 4717.38 of the Revised Code.	990

(B) An insurance agent licensed pursuant to Chapter 3905. of	991
the Revised Code may sell, solicit, or negotiate the sale of an	992
insurance policy or annuity that will be used to fund a preneed	993
funeral contract, but in so doing the insurance agent may not	994
offer advice or make recommendations about funeral services and	995
may not discuss the advantages or disadvantages of any funeral	996
service. In selling, soliciting, or negotiating the sale of an	997
insurance policy or annuity that will be used to fund a preneed	998
funeral contract, the insurance agent may do any of the following:	999

(1) Provide the person purchasing the insurance or annuity	1000
with price lists from one or more funeral homes and other	1001
materials that may assist the person in determining the cost of	1002
funeral goods and services;	1003

(2) Discuss the cost of funeral goods and services with the	1004
person in order to assist the person in selecting the appropriate	1005
amount of life insurance or annuity coverage;	1006

(3) Complete a worksheet or other record to calculate the	1007
estimated cost of a funeral.	1008

(C) Activities conducted pursuant to division (B) of this	1009
section by an insurance agent licensed pursuant to Chapter 3905.	1010
of the Revised Code do not constitute funeral directing, funeral	1011
arranging, the business of directing and supervising funerals for	1012
profit, or the sale of a preneed funeral contract.	1013

(D) No seller shall fail to comply with the requirements and	1014
duties specified in this section and sections 4717.32 to 4717.38	1015
of the Revised Code.	1016

(E) No trustee of a preneed funeral contract trust shall	1017
fail to comply with sections 4717.33, 4717.34, 4717.36, and	1018
4717.37 of the Revised Code.	1019

(F) No insurance agent or insurance company that sells or	1020
offers life insurance policies or annuities used to fund a	1021
preneed funeral contract shall fail to comply with this section	1022
and sections 4717.33, 4717.34, 4717.35, and 4717.37 of the	1023
Revised Code. To the extent this section and sections 4717.33,	1024
4717.34, 4717.35, and 4717.37 of the Revised Code apply to	1025
insurance companies or insurance agents, those sections	1026
constitute laws of this state relating to insurance for purposes	1027
of sections 3901.03 and 3901.04 of the Revised Code and the	1028
superintendent of insurance shall enforce those sections with	1029
respect to insurance companies and insurance agents. The	1030
superintendent may adopt rules in accordance with Chapter 119. of	1031
the Revised Code for purposes of administering and enforcing this	1032
section and sections 4717.33, 4717.34, 4717.35, and 4717.37 of	1033
the Revised Code as those sections apply to insurance companies	1034
or insurance agents.	1035

(G) A preneed funeral contract may be funded by the purchase	1036
or assignment of an insurance policy or annuity in accordance with	1037
section 3905.45 of the Revised Code. A preneed funeral contract	1038
that is funded by the purchase or assignment of an insurance	1039
policy or annuity in accordance with section 3905.45 of the	1040
Revised Code is not subject to section 4717.36 of the Revised	1041
Code.	1042

(H) The board of embalmers and funeral directors shall	1043
administer and enforce the provisions of sections 4717.31 to	1044
4717.38 of the Revised Code concerning the requirements for and	1045
sale of preneed funeral contracts. The superintendent of insurance	1046
shall enforce sections 4717.31, 4717.33, 4717.34, 4717.35, and	1047
4717.37 of the Revised Code to the extent those sections apply to	1048
insurance companies and insurance agents. Payments from a trust,	1049
insurance policy, or annuity, including any fraudulent activities	1050
in which a person engages to obtain payments from a trust,	1051
insurance policy, or annuity, shall be regulated in accordance	1052
with Chapter 1111. or Title XXXIX of the Revised Code, as	1053
applicable.	1054

(I) A seller of a preneed funeral contract that is funded by	1055
insurance or otherwise annually shall submit to the board the	1056
reports the board requires pursuant to division (J) of this	1057
section.	1058

(J) The board shall adopt rules specifying the procedures and	1059
requirements for annual reporting of the sales of all preneed	1060
funeral contracts sold by every seller who is subject to sections	1061
4717.31 to 4717.38 of the Revised Code.	1062

Sec. 4717.32. (A) Any preneed funeral contract that involves	1063
the payment of money or the purchase or assignment of an insurance	1064
policy or annuity shall be in writing and shall include all of the	1065
following information:	1066

(1) The name, address, and phone number of the seller and the	1067
name and address of the purchaser of the contract, and, if the	1068
contract beneficiary is someone other than the purchaser of the	1069
contract, the name and address of the contract beneficiary, and	1070
if the contract involves the payment of money but not the purchase	1071
or assignment of an insurance policy or annuity, the social	1072
security number of the purchaser of the contract or if the	1073
contract beneficiary is someone other than the purchaser, the	1074
social security number of the contract beneficiary;	1075

(2) A statement of the funeral goods and funeral services	1076
purchased, which disclosure may be made by attaching a copy of the	1077
completed statement of funeral goods and services selected to the	1078
preneed funeral contract;	1079

(3) A disclosure informing the purchaser whether the contract	1080
is either a guaranteed preneed funeral contract or a nonguaranteed	1081
preneed funeral contract, and, if the contract is guaranteed only	1082
in part, a disclosure specifying the funeral goods or funeral	1083
services included in the guarantee;	1084

(4) If the preneed funeral contract is a guaranteed contract,	1085
a disclosure that the seller, in exchange for all of the proceeds	1086
of the trust, insurance policy, or annuity, shall provide the	1087
funeral goods and funeral services set forth in the preneed	1088
funeral contract without regard to the actual cost of such	1089
funeral goods and funeral services prevailing at the time of	1090
performance and that the seller may receive any excess funds	1091
remaining after all expenses for the funeral have been paid.	1092

(5) If the preneed funeral contract is a nonguaranteed	1093
contract, a disclosure that the proceeds of the trust, insurance	1094
policy, or annuity shall be applied to the retail prices in effect	1095
at the time of the funeral for the funeral goods and funeral	1096
services set forth in the contract, that any excess funds	1097
remaining after all expenses for the funeral have been paid shall	1098
be paid to the estate of the decedent or the beneficiary named in	1099
the life insurance policy if the preneed funeral contract is	1100
funded by a life insurance policy, and that, in the event of an	1101
insufficiency in funds, the seller shall not be required to	1102
perform until payment arrangements satisfactory to the seller	1103
have been made.	1104

(6) A disclosure that the purchaser has the right to make the	1105
contract irrevocable and that if the preneed funeral contract is	1106
irrevocable, the purchaser does not have a right to revoke the	1107
contract;	1108

(7) A disclosure informing the purchaser of the initial right	1109
to cancel the preneed funeral contract within seven days as	1110
provided in division (A) of section 4717.34 of the Revised Code	1111
and the right to revoke a revocable preneed funeral contract in	1112
accordance with section 4717.35 or division (E) of section 4717.36	1113
of the Revised Code, as applicable;	1114

(8) A disclosure that the seller may substitute funeral goods	1115
or funeral services of equal quality, value, and workmanship if	1116
those specified in the preneed funeral contract are unavailable at	1117
the time of need;	1118

(9) A disclosure that any purchaser of funeral goods and	1119
funeral services is entitled to receive price information prior to	1120
making that purchase in accordance with the federal trade	1121
commission's funeral industry practices revised rule, 16 C.F.R.	1122
part 453;	1123

(10) The following notice in boldface print and in	1124
substantially the following form:	1125

"NOTICE: Under Ohio law, the person holding the right of	1126
disposition of the remains of the individual contract beneficiary	1127
pursuant to section 2108.70 or 2108.81 of the Revised Code will	1128
have the right to make funeral arrangements inconsistent with the	1129
arrangements set forth in this contract. However, the individual	1130
contract beneficiary is encouraged to state his or her preferences	1131
as to funeral arrangements in a declaration of the right of	1132
disposition pursuant to section 2108.72 of the Revised Code,	1133
including that the arrangements set forth in this contract shall	1134
be followed."	1135

(11) The notice described in division (A) of section 4717.34	1136
of the Revised Code.	1137

(B) If a preneed funeral contract is funded by any means	1138
other than an insurance policy or policies, or an annuity or	1139
annuities, the preneed funeral contract shall include all of the	1140
following information in addition to the information required to	1141
be included under division (A) of this section:	1142

(1) Disclosures identifying the name and address of the	1143
trustee of the preneed funeral contract trust established pursuant	1144
to section 4717.36 of the Revised Code, indicating whether fees,	1145
expenses, or taxes will be deducted from the trust, and a	1146
statement of who will be responsible for the taxes owed on the	1147
trust earnings;	1148

(2) A disclosure explaining the form in which the purchase	1149
price must be paid and, if the price is to be paid in	1150
installments, a disclosure to the purchaser regarding what	1151
constitutes a default under the preneed funeral contract and the	1152
consequences of the default;	1153

(3) The following notice in boldface print and in	1154
substantially the following form:	1155

"NOTICE: You, as the purchaser of this contract, will be	1156
notified in writing when the trustee of this contract has received	1157
a deposit of the funds you paid the seller under this contract. If	1158
you do not receive that notice within sixty days after the date	1159
you paid the funds to the seller, you should contact the trustee	1160
identified in the contract."	1161

(4) A disclosure that a purchaser of a preneed funeral	1162
contract that is irrevocable and that stipulates a firm or fixed	1163
or guaranteed price for the funeral services and goods to be	1164
provided under the preneed funeral contract may be charged a	1165
transfer fee as specified in division (F) of section 4717.36 of	1166
the Revised Code if the purchaser wishes to transfer the contract	1167
to another seller.	1168

(C) If a preneed funeral contract is funded by the purchase	1169
or assignment of one or more insurance policies or annuities, the	1170
preneed funeral contract shall include all of the following	1171
information in addition to the information required to be	1172
included under division (A) of this section:	1173

(1) The name and address of each applicable insurance company	1174
and any right the purchaser has regarding canceling or	1175
transferring the applicable insurance policies or annuities;	1176

(2) A description of the terms of payment for any remaining	1177
payments due if the funding is to be paid in installments;	1178

(3) A list of actions that constitute default under a preneed	1179
funeral contract and the consequences of a default;	1180

(4) The following notice in boldface print and in	1181
substantially the following form:	1182

"NOTICE: You, as the purchaser of this contract, will be	1183
notified in writing by the insurance company identified in this	1184
contract when the insurance policy or policies, or annuity or	1185
annuities, that will fund this contract have been issued. If you	1186
do not receive the notice within sixty days after the date you	1187
paid the funds to the seller, you should contact the insurance	1188
company identified in the contract."	1189

(D) The seller of a preneed funeral contract that is funded	1190
by the purchase or assignment of one or more insurance policies or	1191
annuities does not need to include in the contract the information	1192
described in divisions (C)(2) and (3) of this section if those	1193
disclosures are provided in the application for a life insurance	1194
policy or annuity or in the life insurance policy or annuity.	1195

Sec. 4717.33. (A) If a preneed funeral contract is funded by	1196
any means other than an insurance policy or policies, or an	1197
annuity or annuities, the trustee of the trust created pursuant	1198
to section 4717.36 of the Revised Code shall notify the purchaser	1199
of the preneed funeral contract in writing, within fifteen days	1200
after the trustee receives any payment to be deposited into the	1201
trust, that the trustee has received payment. The notice shall	1202
include all of the following information:	1203

(1) The amount the trustee received;

1204

(2) The name and address of the institution described in	1205
division (B) of section 4717.36 of the Revised Code where the	1206
trust is being held;	1207

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

1208

(B) If a preneed funeral contract is funded by the purchase	1209
or assignment of one or more insurance policies or annuities, the	1210
insurance company shall notify the purchaser of the preneed	1211
funeral contract in writing within sixty days after the insurance	1212
company receives an initial premium payment applicable to that	1213
preneed funeral contract. The notice shall include all of the	1214
following information that is pertinent to that preneed funeral	1215
contract:	1216

(1) The amount the insurance company received;

1217

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

1218

(3) The name of the insured;

1219

(4) The amount of the death benefit;

1220

(5) The policy or contract number of the insurance policy,	1221
annuity, or contract.	1222

(C) For purposes of division (B) of this section, delivery of	1223
an insurance policy, certificate, annuity, or contract to the	1224
purchaser shall satisfy the notice requirement specified in that	1225
division.	1226

Sec. 4717.34. (A) Any purchaser, on initially entering into	1227
a preneed funeral contract may, within seven days after entering	1228
into that contract, rescind the contract and request and receive	1229
from the seller of the contract one hundred per cent of all	1230
payments made under the contract. Each preneed funeral contract	1231
shall contain the following notice in boldface print and in	1232
substantially the following form:	1233

"NOTICE: Under Ohio law, you, as the purchaser of this	1234
contract, may rescind it and receive a refund of all payments you	1235
made under the contract. To rescind the contract, you must notify	1236
the seller within seven days of signing the contract."	1237

(B) No preneed funeral contract shall contain a provision	1238
that restricts the purchaser from making the contract irrevocable.	1239
On the purchase by an individual of an irrevocable preneed funeral	1240
contract, the funeral director who sold the contract assumes the	1241
legal obligation to provide for the funeral of the individual	1242
pursuant to the terms of the contract. No money deposited in a	1243
trust fund for an irrevocable preneed funeral contract shall be	1244
withdrawn to purchase an insurance policy or annuity, except that	1245
a trustee may use money in the trust fund to purchase a life	1246
insurance policy or annuity as an investment for the trust fund.	1247

Sec. 4717.35. If a preneed funeral contract contains a	1248
provision stating that the preneed funeral contract will be funded	1249
by the purchase of an insurance policy, the insurance agent who	1250
sold the policy that will fund that preneed funeral contract shall	1251
remit the application for insurance and the premium paid to the	1252
insurance company designated in the preneed funeral contract	1253
within the time period specified in division (B)(15) of section	1254
3905.14 of the Revised Code, unless the purchaser rescinds the	1255
preneed funeral contract in accordance with division (A) of	1256
section 4717.34 of the Revised Code.	1257

If the purchaser of a preneed funeral contract that is	1258
revocable and that is funded by an insurance policy or annuity	1259
elects to cancel the preneed funeral contract, the purchaser	1260
shall provide a written notice to the seller and the insurance	1261
company designated in the contract stating that the purchaser	1262
intends to cancel that contract. Fifteen days after the purchaser	1263
provides the notice to the seller of the contract and the	1264
insurance company, the purchaser may cancel the preneed funeral	1265
contract and change the beneficiary of the insurance policy or	1266
annuity or reassign the benefits under the policy or annuity.	1267

The purchaser of a preneed funeral contract that is	1268
irrevocable and that is funded by an insurance policy or annuity	1269
may transfer the preneed funeral contract to a successor seller	1270
by notifying the original seller of the designation of a	1271
successor seller. Within fifteen days after receiving the written	1272
notice of the designation of the successor seller from the	1273
purchaser, the original seller shall assign the seller's rights	1274
to the proceeds of the policy to the successor seller. The	1275
insurance company shall confirm the change of assignment by	1276
providing written notice to the policyholder.	1277

Sec. 4717.36. (A) This section applies only to preneed	1278
funeral contracts that are funded by any means other than an	1279
insurance policy or policies, or an annuity or annuities.	1280

One hundred per cent of all payments for funeral goods and	1281
funeral services made under a preneed funeral contract shall	1282
remain intact and held in trust in accordance with this section	1283
for the benefit of the contract beneficiary. No money in a preneed	1284
funeral contract trust shall be distributed from the trust except	1285
as provided in this section. Within thirty days after the provider	1286
of the funeral goods or funeral services receives any payment	1287
under a preneed funeral contract, the seller of the preneed	1288
funeral contract shall deliver the moneys received for that	1289
preneed funeral contract that have not been returned to the	1290
purchaser as provided in division (A) of section 4717.34 of the	1291
Revised Code to the trustee designated in the preneed funeral	1292
contract.	1293

(B) The seller shall establish a preneed funeral contract	1294
trust at one of the following types of institutions and shall	1295
designate that institution as the trustee of the preneed funeral	1296
contract trust:	1297

(1) A trust company licensed under Chapter 1111. of the	1298
Revised Code;	1299

(2) A national bank, federal savings bank, or federal savings	1300
association that pledges securities in accordance with section	1301
1111.04 of the Revised Code;	1302

(3) A credit union authorized to conduct business in this	1303
state pursuant to Chapter 1733. of the Revised Code.	1304

(C) Moneys deposited in a preneed funeral contract trust fund	1305
shall be held and invested in the manner in which trust funds are	1306
permitted to be held and invested pursuant to Chapter 1111. of the	1307
Revised Code.	1308

(D) The seller shall establish a separate preneed funeral	1309
contract trust for the moneys paid under each preneed funeral	1310
contract, unless the purchaser or purchasers of a preneed funeral	1311
contract or contracts authorize the seller to place the moneys	1312
paid for that contract or those contracts in a combined preneed	1313
funeral contract trust. The trustee of a combined preneed funeral	1314
contract trust shall keep exact records of the corpus, income,	1315
expenses, and disbursements with regard to each purchaser and	1316
contract beneficiary for whom moneys are held in the trust. The	1317
terms of a preneed funeral contract trust are governed by this	1318
section and the payments from that trust are governed by Chapter	1319
1111. of the Revised Code, except as otherwise provided in this	1320
section.	1321

A trustee of a preneed funeral contract trust may pay taxes	1322
and expenses for a preneed funeral contract trust and may charge a	1323
fee for managing a preneed funeral contract trust. The fee shall	1324
not exceed the amount regularly or usually charged for similar	1325
services rendered by the institutions described in division (B) of	1326
this section when serving as a trustee. The taxes, expenses, and	1327
fees shall be paid only from the accumulated income on that trust.	1328

(E) If the purchaser of a preneed funeral contract that is	1329
revocable elects to cancel the contract, the purchaser shall	1330
provide a written notice to the seller of the contract and the	1331
trustee of the preneed funeral contract trust stating that the	1332
purchaser intends to cancel the contract. Fifteen days after the	1333
purchaser provides that notice to the seller and trustee, the	1334
purchaser may cancel the contract. Upon canceling a preneed	1335
funeral contract pursuant to this division, one of the following	1336
shall occur, as applicable:	1337

(1) If the preneed funeral contract does not stipulate a firm	1338
or fixed or guaranteed price for funeral goods and funeral	1339
services to be provided under the preneed funeral contract, the	1340
trustee shall give to the purchaser all of the assets of the trust	1341
that exist at the time of cancellation, less any fees charged,	1342
distributions paid, and expenses incurred by the trustee pursuant	1343
to division (D) of this section.	1344

(2) If the preneed funeral contract does stipulate a firm or	1345
fixed or guaranteed price for funeral goods and funeral services	1346
to be provided under the contract, the purchaser may request and	1347
receive from the trustee all of the assets of the trust at the	1348
time of cancellation, less a cancellation fee that the original	1349
seller may collect from the trustee that is equal to or less than	1350
ten per cent of the value of the assets of the trust on the date	1351
the trust is cancelled and less any fees charged, distributions	1352
paid, and expenses incurred by the trustee pursuant to division	1353
(D) of this section.	1354

If more than one purchaser enters into the contract, all of	1355
those purchasers must request cancellation of the contract for it	1356
to be effective under this division, and the trustee shall refund	1357
to each purchaser only those funds that purchaser has paid under	1358
the contract and any income earned on those funds in an amount	1359
that is in direct proportion to the amount of funds that	1360
purchaser paid relative to the total amount of payments deposited	1361
in that trust, less any fees charged, distributions paid, and	1362
expenses incurred by the trustee pursuant to division (D) of this	1363
section, the amount of which are in direct proportion to the	1364
amount of funds that purchaser paid relative to the total amount	1365
of payments deposited in that trust.	1366

(F) The purchaser of a preneed funeral contract that is	1367
irrevocable may transfer the preneed funeral contract to a	1368
successor seller. A purchaser who elects to make such a transfer	1369
shall provide a written notice of the designation of a successor	1370
seller to the trustee and the original seller. Within fifteen days	1371
after receiving the written notice of the new designation from the	1372
purchaser, the trustee shall list the successor seller as the	1373
seller of the preneed funeral contract and the original seller	1374
shall relinquish and transfer all rights under the preneed funeral	1375
contract to the successor seller. The trustee shall confirm the	1376
transfer by providing written notice of the transfer to the	1377
original seller, the successor seller, and the purchaser. If the	1378
preneed funeral contract stipulates a firm or fixed or guaranteed	1379
price for the funeral goods and funeral services to be provided	1380
under the preneed funeral contract, the original seller may	1381
collect from the trustee a transfer fee from the trust that equals	1382
up to ten per cent of the value of the assets of the trust on the	1383
date the trust is transferred. If the preneed funeral contract	1384
does not stipulate a firm or fixed or guaranteed price for funeral	1385
goods and funeral services to be provided under the preneed	1386
funeral contract, no transfer fee shall be collected by the	1387
original seller.	1388

(G) If a seller of a preneed funeral contract elects to	1389
transfer a preneed funeral contract trust from an institution	1390
listed in divisions (B)(1) to (3) of this section to a different	1391
institution, the trustee of the original trust shall notify the	1392
purchaser of the preneed funeral contract of that transfer in	1393
writing within thirty days after the transfer occurred and shall	1394
provide the purchaser with the name of and the contact information	1395
for the institution where the new trust is maintained. Upon	1396
receipt of the trust, the trustee of the transferred trust shall	1397
notify the purchaser of the receipt of the trusts in accordance	1398
with division (A) of section 4717.33 of the Revised Code.	1399

(H) If a seller receives a notice that the contract	1400
beneficiary has died and that funeral goods and funeral services	1401
have been provided by a provider other than the seller, except as	1402
otherwise specified in this section, the seller shall direct the	1403
trustee, within thirty days after receiving that notice, to pay to	1404
the contract beneficiary all funds held by the trustee, less any	1405
fees charged, distributions paid, and expenses incurred by the	1406
trustee pursuant to division (D) of this section. In the event the	1407
preneed funeral contract stipulates a firm or fixed or guaranteed	1408
price for funeral goods and funeral services that were to be	1409
provided under the preneed funeral contract, the seller may	1410
collect from the trustee a cancellation fee not exceeding ten per	1411
cent of the value of the assets of the trust on the date the trust	1412
is transferred. If the preneed funeral trust does not stipulate a	1413
firm or fixed or guaranteed price for funeral goods and funeral	1414
services to be provided under the preneed funeral contract, no	1415
cancellation fees shall be collected by the original seller.	1416

(I) A certified copy of the certificate of death or other	1417
evidence of death satisfactory to the trustee shall be furnished	1418
to the trustee as evidence of death, and the trustee shall	1419
promptly pay the accumulated payments and income, if any,	1420
according to the preneed funeral contract. Such payment of the	1421
accumulated payments and income pursuant to this section and, when	1422
applicable, the preneed funeral contract, relieves the trustee of	1423
any further liability on the accumulated payments and income.	1424

Sec. 4717.37. For purposes of sections 4717.31 to 4717.38 of	1425
the Revised Code, a seller is considered to have delivered funeral	1426
goods pursuant to a preneed funeral contract when the seller makes	1427
actual delivery of the goods to the contract beneficiary.	1428

Sec. 4717.38. Sections 4717.31 to 4717.38 of the Revised	1429
Code shall be construed as a limitation on the manner in which a	1430
person is permitted to accept funds in prepayment for funeral	1431
services to be performed in the future, or funeral goods to be	1432
used in connection with the funeral or final disposition of human	1433
remains, to the end that at all times members of the public may	1434
have an opportunity to arrange and pay for a funeral for	1435
themselves and their families in advance of need while at the same	1436
time providing all possible safeguards to ensure that prepaid	1437
funds cannot be dissipated, whether intentionally or not, but	1438
remain available for payment for funeral goods and funeral	1439
services in connection with the funeral or final disposition of	1440
dead human bodies.	1441

Sections 4717.31 to 4717.38 of the Revised Code do not apply	1442
to a seller if that seller is an established and legally	1443
cognizable church or denomination that is exempt from federal	1444
income taxation under section 501(c)(3) of the "Internal Revenue	1445
Code of 1986," 100 Stat. 2085, 26 U.S.C. 501, as amended, and the	1446
preneed funeral contract pertains to a cemetery owned and operated	1447
entirely and exclusively by the church or denomination, on the	1448
condition that the church or denomination adopts, on a voluntary	1449
basis, rules and other measures to safeguard and secure all funds	1450
received under any preneed funeral contract.	1451

Any money, insurance policies, annuities, or other items	1452
delivered in payment of a preneed funeral contract, and any funds	1453
held in trust pursuant to section 4717.36 of the Revised Code,	1454
are exempt from levy, attachment, or sale to satisfy a judgment	1455
or order.	1456

Sec. 4717.99. Whoever violates any provision of sections	1457
4717.01 to 4717.15; division (A) or (B) of section 4717.23;	1458
division (B)(1) or (2), (C)(1) or (2), (D), (E), or (F)(1) or (2),	1459
or divisions (H) to (K) of section 4717.26; division (D)(1) of	1460
section 4717.27; or divisions (A) to (C) of section 4717.28 of the	1461
Revised Code shall be fined not less than one hundred nor more	1462
than five thousand dollars, or imprisoned for not more than one	1463
year, or both, for the first offense. For each subsequent offense	1464
such a person shall be fined not less than one hundred nor more	1465
than ten thousand dollars, or imprisoned for not more than one	1466
year, or both.	1467

Whoever purposely violates division (D) or (E) of section	1468
4717.31 of the Revised Code is guilty of a misdemeanor of the	1469
third degree. If the purpose of a violation of that division is	1470
to commit or facilitate the commission of a felony, whoever	1471
violates that division is guilty of a felony of the fourth	1472
degree.	1473

Sec. 5747.02. (A) For the purpose of providing revenue for	1474
the support of schools and local government functions, to provide	1475
relief to property taxpayers, to provide revenue for the general	1476
revenue fund, and to meet the expenses of administering the tax	1477
levied by this chapter, there is hereby levied on every	1478
individual, trust, and estate residing in or earning or receiving	1479
income in this state, on every individual, trust, and estate	1480
earning or receiving lottery winnings, prizes, or awards pursuant	1481
to Chapter 3770. of the Revised Code, and on every individual,	1482
trust, and estate otherwise having nexus with or in this state	1483
under the Constitution of the United States, an annual tax	1484
measured in the case of individuals by Ohio adjusted gross income	1485
less an exemption for the taxpayer, the taxpayer's spouse, and	1486
each dependent as provided in section 5747.025 of the Revised	1487
Code; measured in the case of trusts by modified Ohio taxable	1488
income under division (D) of this section; and measured in the	1489
case of estates by Ohio taxable income. The tax imposed by this	1490
section on the balance thus obtained is hereby levied as follows:	1491

(1) For taxable years beginning in 2004:

1492

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1493
OR		1494
MODIFIED OHIO		1495
TAXABLE INCOME (TRUSTS)		1496
OR		1497
OHIO TAXABLE INCOME (ESTATES)	TAX	1498

$5,000 or less	.743%	1499
More than $5,000 but not more than $10,000	$37.15 plus 1.486% of the amount in excess of $5,000	1500
More than $10,000 but not more than $15,000	$111.45 plus 2.972% of the amount in excess of $10,000	1501
More than $15,000 but not more than $20,000	$260.05 plus 3.715% of the amount in excess of $15,000	1502
More than $20,000 but not more than $40,000	$445.80 plus 4.457% of the amount in excess of $20,000	1503
More than $40,000 but not more than $80,000	$1,337.20 plus 5.201% of the amount in excess of $40,000	1504
More than $80,000 but not more than $100,000	$3,417.60 plus 5.943% of the amount in excess of $80,000	1505
More than $100,000 but not more than $200,000	$4,606.20 plus 6.9% of the amount in excess of $100,000	1506
More than $200,000	$11,506.20 plus 7.5% of the amount in excess of $200,000	1507

(2) For taxable years beginning in 2005:

1508

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1509
OR		1510
MODIFIED OHIO		1511
TAXABLE INCOME (TRUSTS)		1512
OR		1513
OHIO TAXABLE INCOME (ESTATES)	TAX	1514

$5,000 or less	.712%	1515
More than $5,000 but not more than $10,000	$35.60 plus 1.424% of the amount in excess of $5,000	1516
More than $10,000 but not more than $15,000	$106.80 plus 2.847% of the amount in excess of $10,000	1517
More than $15,000 but not more than $20,000	$249.15 plus 3.559% of the amount in excess of $15,000	1518
More than $20,000 but not more than $40,000	$427.10 plus 4.27% of the amount in excess of $20,000	1519
More than $40,000 but not more than $80,000	$1,281.10 plus 4.983% of the amount in excess of $40,000	1520
More than $80,000 but not more than $100,000	$3,274.30 plus 5.693% of the amount in excess of $80,000	1521
More than $100,000 but not more than $200,000	$4,412.90 plus 6.61% of the amount in excess of $100,000	1522
More than $200,000	$11,022.90 plus 7.185% of the amount in excess of $200,000	1523

(3) For taxable years beginning in 2006:

1524

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1525
OR		1526
MODIFIED OHIO		1527
TAXABLE INCOME (TRUSTS)		1528
OR		1529
OHIO TAXABLE INCOME (ESTATES)	TAX	1530

$5,000 or less	.681%	1531
More than $5,000 but not more than $10,000	$34.05 plus 1.361% of the amount in excess of $5,000	1532
More than $10,000 but not more than $15,000	$102.10 plus 2.722% of the amount in excess of $10,000	1533
More than $15,000 but not more than $20,000	$238.20 plus 3.403% of the amount in excess of $15,000	1534
More than $20,000 but not more than $40,000	$408.35 plus 4.083% of the amount in excess of $20,000	1535
More than $40,000 but not more than $80,000	$1,224.95 plus 4.764% of the amount in excess of $40,000	1536
More than $80,000 but not more than $100,000	$3,130.55 plus 5.444% of the amount in excess of $80,000	1537
More than $100,000 but not more than $200,000	$4,219.35 plus 6.32% of the amount in excess of $100,000	1538
More than $200,000	$10,539.35 plus 6.87% of the amount in excess of $200,000	1539

(4) For taxable years beginning in 2007:

1540

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1541
OR		1542
MODIFIED OHIO		1543
TAXABLE INCOME (TRUSTS)		1544
OR		1545
OHIO TAXABLE INCOME (ESTATES)	TAX	1546

$5,000 or less	.649%	1547
More than $5,000 but not more than $10,000	$32.45 plus 1.299% of the amount in excess of $5,000	1548
More than $10,000 but not more than $15,000	$97.40 plus 2.598% of the amount in excess of $10,000	1549
More than $15,000 but not more than $20,000	$227.30 plus 3.247% of the amount in excess of $15,000	1550
More than $20,000 but not more than $40,000	$389.65 plus 3.895% of the amount in excess of $20,000	1551
More than $40,000 but not more than $80,000	$1,168.65 plus 4.546% of the amount in excess of $40,000	1552
More than $80,000 but not more than $100,000	$2,987.05 plus 5.194% of the amount in excess of $80,000	1553
More than $100,000 but not more than $200,000	$4,025.85 plus 6.031% of the amount in excess of $100,000	1554
More than $200,000	$10,056.85 plus 6.555% of the amount in excess of $200,000	1555

(5) For taxable years beginning in 2008:

1556

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1557
OR		1558
MODIFIED OHIO		1559
TAXABLE INCOME (TRUSTS)		1560
OR		1561
OHIO TAXABLE INCOME (ESTATES)	TAX	1562

$5,000 or less	.618%	1563
More than $5,000 but not more than $10,000	$30.90 plus 1.236% of the amount in excess of $5,000	1564
More than $10,000 but not more than $15,000	$92.70 plus 2.473% of the amount in excess of $10,000	1565
More than $15,000 but not more than $20,000	$216.35 plus 3.091% of the amount in excess of $15,000	1566
More than $20,000 but not more than $40,000	$370.90 plus 3.708% of the amount in excess of $20,000	1567
More than $40,000 but not more than $80,000	$1,112.50 plus 4.327% of the amount in excess of $40,000	1568
More than $80,000 but not more than $100,000	$2,843.30 plus 4.945% of the amount in excess of $80,000	1569
More than $100,000 but not more than $200,000	$3,832.30 plus 5.741% of the amount in excess of $100,000	1570
More than $200,000	$9,573.30 plus 6.24% of the amount in excess of $200,000	1571

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

1572

OHIO ADJUSTED GROSS INCOME LESS EXEMPTIONS (INDIVIDUALS)		1573
OR		1574
MODIFIED OHIO		1575
TAXABLE INCOME (TRUSTS)		1576
OR		1577
OHIO TAXABLE INCOME (ESTATES)	TAX	1578

$5,000 or less	.587%	1579
More than $5,000 but not more than $10,000	$29.35 plus 1.174% of the amount in excess of $5,000	1580
More than $10,000 but not more than $15,000	$88.05 plus 2.348% of the amount in excess of $10,000	1581
More than $15,000 but not more than $20,000	$205.45 plus 2.935% of the amount in excess of $15,000	1582
More than $20,000 but not more than $40,000	$352.20 plus 3.521% of the amount in excess of $20,000	1583
More than $40,000 but not more than $80,000	$1,056.40 plus 4.109% of the amount in excess of $40,000	1584
More than $80,000 but not more than $100,000	$2,700.00 plus 4.695% of the amount in excess of $80,000	1585
More than $100,000 but not more than $200,000	$3,639.00 plus 5.451% of the amount in excess of $100,000	1586
More than $200,000	$9,090.00 plus 5.925% of the amount in excess of $200,000	1587

In July of each year, beginning in 2010, the tax commissioner	1588
shall adjust the income amounts prescribed in this division by	1589
multiplying the percentage increase in the gross domestic product	1590
deflator computed that year under section 5747.025 of the Revised	1591
Code by each of the income amounts resulting from the adjustment	1592
under this division in the preceding year, adding the resulting	1593
product to the corresponding income amount resulting from the	1594
adjustment in the preceding year, and rounding the resulting sum	1595
to the nearest multiple of fifty dollars. The tax commissioner	1596
also shall recompute each of the tax dollar amounts to the extent	1597
necessary to reflect the adjustment of the income amounts. The	1598
rates of taxation shall not be adjusted.	1599

The adjusted amounts apply to taxable years beginning in the	1600
calendar year in which the adjustments are made. The tax	1601
commissioner shall not make such adjustments in any year in which	1602
the amount resulting from the adjustment would be less than the	1603
amount resulting from the adjustment in the preceding year.	1604

(B) If the director of budget and management makes a	1605
certification to the tax commissioner under division (B) of	1606
section 131.44 of the Revised Code, the amount of tax as	1607
determined under division (A) of this section shall be reduced by	1608
the percentage prescribed in that certification for taxable years	1609
beginning in the calendar year in which that certification is	1610
made.	1611

(C) The levy of this tax on income does not prevent a	1612
municipal corporation, a joint economic development zone created	1613
under section 715.691, or a joint economic development district	1614
created under section 715.70 or 715.71 or sections 715.72 to	1615
715.81 of the Revised Code from levying a tax on income.	1616

(D) This division applies only to taxable years of a trust	1617
beginning in 2002 or thereafter.	1618

(1) The tax imposed by this section on a trust shall be	1619
computed by multiplying the Ohio modified taxable income of the	1620
trust by the rates prescribed by division (A) of this section.	1621

(2) A credit is allowed against the tax computed under	1622
division (D) of this section equal to the lesser of (1) the tax	1623
paid to another state or the District of Columbia on the trust's	1624
modified nonbusiness income, other than the portion of the trust's	1625
nonbusiness income that is qualifying investment income as defined	1626
in section 5747.012 of the Revised Code, or (2) the effective tax	1627
rate, based on modified Ohio taxable income, multiplied by the	1628
trust's modified nonbusiness income other than the portion of	1629
trust's nonbusiness income that is qualifying investment income.	1630
The credit applies before any other applicable credits.	1631

(3) The credits enumerated in divisions (A)(1) to (13) of	1632
section 5747.98 of the Revised Code do not apply to a trust	1633
subject to this division. Any credits enumerated in other	1634
divisions of section 5747.98 of the Revised Code apply to a trust	1635
subject to this division. To the extent that the trust distributes	1636
income for the taxable year for which a credit is available to the	1637
trust, the credit shall be shared by the trust and its	1638
beneficiaries. The tax commissioner and the trust shall be guided	1639
by applicable regulations of the United States treasury regarding	1640
the sharing of credits.	1641

(E) For the purposes of this section, "trust" means any trust	1642
described in Subchapter J of Chapter 1 of the Internal Revenue	1643
Code, excluding trusts that are not irrevocable as defined in	1644
division (I)(3)(b) of section 5747.01 of the Revised Code and that	1645
have no modified Ohio taxable income for the taxable year,	1646
charitable remainder trusts, qualified funeral trusts and preneed	1647
funeral contract trusts established pursuant to ~~section 1111.19~~	1648
sections 4717.31 to 4717.38 of the Revised Code that are not	1649
qualified funeral trusts, endowment and perpetual care trusts,	1650
qualified settlement trusts and funds, designated settlement	1651
trusts and funds, and trusts exempted from taxation under section	1652
501(a) of the Internal Revenue Code.	1653

Section 2. That existing sections 1151.345, 1161.59,	1654
1721.211, 1733.51, 2108.81, 2117.251, 3103.03, 3901.04, 3905.451,	1655
4717.01, 4717.03, 4717.13, 4717.14, 4717.99, and 5747.02 and	1656
sections 1111.19 and 1111.99 of the Revised Code are hereby	1657
repealed.	1658

Section 3. Sections 1 and 2 of this act shall take effect	1659
ninety days after the effective date of this act.	1660