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H. B. No. 282 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Representative Schlichter
Cosponsors:
Representatives Setzer, Webster, Huffman, Stebelton
A BILL
To amend sections 1151.345, 1161.59, 1733.51,
2108.81, 2117.251, 3103.03, 3905.451, 4717.01,
4717.03, 4717.04, 4717.13, 4717.99, and 5747.02,
to enact sections 4717.31 and 4717.32, and to
repeal sections 1111.19 and 1111.99 of the Revised
Code to revise the Preneed Funeral Contract Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1151.345, 1161.59, 1733.51,
2108.81, 2117.251, 3103.03, 3905.451, 4717.01, 4717.03, 4717.04,
4717.13, 4717.99, and 5747.02 be amended and sections 4717.31 and
4717.32 of the Revised Code be enacted to read as follows:
Sec. 1151.345. A savings and loan association, in accordance
with
sections 1111.19 and 1721.211 and 4717.31 of the Revised
Code,
may receive and hold on deposit
moneys under a preneed
funeral contract or a preneed cemetery
merchandise and services
contract.
Sec. 1161.59. In accordance with sections 1111.19 and
1721.211 and 4717.31 of the Revised
Code, a savings bank may
receive and hold on deposit moneys under a preneed
funeral
contract or a preneed cemetery merchandise and
services contract.
Sec. 1733.51. A credit union may, subject to sections
1111.19 and 1721.211 and 4717.31 of
the Revised Code, receive and
hold on deposit moneys under a preneed funeral
contract or preneed
cemetery merchandise and services contract.
Sec. 2108.81. (A) If either of the following is true,
division (B) of this section shall apply:
(1) An adult has not executed a written declaration pursuant
to sections 2108.70 to 2108.73 of the Revised Code that remains in
force at the time of the adult's death.
(2) Each person to whom the right of disposition has been
assigned or reassigned pursuant to a written declaration is
disqualified from exercising the right as described in section
2108.75 of the Revised Code.
(B) Subject to division (A) of this section and sections
2108.75 and 2108.79 of the Revised Code, the right of disposition
is assigned to the following persons, if mentally competent adults
who can be located with reasonable effort, in the order of
priority stated:
(1) The deceased person's surviving spouse;
(2) The sole surviving child of the deceased person or, if
there is more than one surviving child, all of the surviving
children, collectively.;
(3) The deceased person's surviving parent or parents;
(4) The deceased person's surviving sibling, whether of the
whole or of the half blood or, if there is more than one sibling
of the whole or of the half blood, all of the surviving siblings,
collectively;
(5) The deceased person's surviving grandparent or
grandparents;
(6) The deceased person's surviving grandchild, or if there
is more than one surviving grandchild, all of the surviving
grandchildren collectively;
(7) The lineal descendants of the deceased person's
grandparents, as described in division (I) of section 2105.06 of
the Revised Code;
(7)(8) The person who was the deceased person's guardian at
the time of the deceased person's death, if a guardian had been
appointed;
(8)(9) Any other person willing to assume the right of
disposition, including the personal representative of the deceased
person's estate or the licensed funeral director with custody of
the deceased person's body, after attesting in writing that a good
faith effort has been made to locate the persons in divisions
(B)(1) to (7) of this section.
(10) If the deceased person was an indigent person or other
person the final disposition of whose body is the responsibility
of the state or a political subdivision of this state, the public
officer or employee responsible for arranging the final
disposition of the remains or the deceased person.
Sec. 2117.251. A claim under the bill of a funeral director
pursuant to section 2117.25 of the Revised Code arises subsequent
to the death of the decedent and is not in satisfaction of a
personal obligation of the individual during the individual's
lifetime. If a decedent during the decedent's lifetime has
purchased an irrevocable preneed funeral contract pursuant to
section 1111.19 4717.31 of the Revised Code, then those provisions
of section 2117.25 of the Revised Code that relate to the bill of
a funeral director, including divisions (A) and (B) of that
section, do not apply to the estate of the decedent and the estate
is not liable for the funeral expenses of the decedent.
Sec. 3103.03. (A) Each married person must support
the
person's self and
spouse out of the person's
property or by the
person's labor. If a married
person is unable
to do so, the
spouse
of the married person must assist in the
support so far as
the
spouse is able. The biological or adoptive
parent of a minor
child
must support the parent's
minor children
out of the parent's
property or by
the parent's labor.
(B) Notwithstanding section 3109.01 of the Revised Code and
to the extent
provided in section 3319.86 3119.86 of the Revised
Code,
the
parental duty of support to children shall
continue
beyond the age
of majority as long as the child
continuously
attends on a
full-time basis any recognized and
accredited high
school. That
duty of support shall continue
during seasonal
vacation periods.
(C) If a married person neglects to support the
person's
spouse in accordance with this section, any other person, in good
faith, may supply the spouse with necessaries for the support of
the spouse and recover the reasonable value of the necessaries
supplied from the married person who neglected to support the
spouse unless the spouse abandons that person without cause.
(D) If a parent neglects to support the parent's
minor child
in accordance with this section and if the minor child in
question
is unemancipated, any other person, in good faith, may
supply the
minor child with necessaries for the support of the
minor child
and recover the reasonable value of the necessaries
supplied from
the parent who neglected to support the minor
child.
(E) If a decedent during the decedent's lifetime has
purchased
an
irrevocable preneed funeral contract pursuant to
section
1109.75 4717.31 of the Revised Code, then the duty of
support owed
to a
spouse
pursuant to this section does not include
an
obligation to pay
for the funeral expenses of the deceased
spouse.
This division
does not preclude a surviving spouse from
assuming
by contract
the obligation to pay for the funeral
expenses of the
deceased
spouse.
Sec. 3905.451.
A life insurance policy
that is
issued,
sold,
or assigned for the
purpose of
purchasing funeral or
burial goods
or
services, and the contractual obligation to
provide the goods
or services, are not
subject to divisions (C), (F), (G), (I), and
(J) of section
1111.19 4717.31
of the
Revised Code.
Sec. 4717.01. As used in this chapter:
(A) "Embalming" means the
preservation and disinfection, or
attempted preservation and
disinfection, of the dead human body by
application of chemicals
externally, internally, or both.
(B) "Funeral business" means a sole proprietorship,
partnership,
corporation, limited liability company, or other
business entity that is
engaged in funeral directing for profit or
for free from one or more funeral
homes licensed under this
chapter.
(C) "Funeral directing" means the
business or profession of
directing
or supervising funerals for profit, the business or
profession of preparing dead human bodies for burial by means
other than
embalming, the disposition of dead human bodies, the
provision or maintenance
of a place for the preparation, the care,
or disposition of dead human bodies,
the use in connection with a
business of the term "funeral director,"
"undertaker,"
"mortician," or any other term from which can be implied the
business of funeral directing, or the holding out to the public
that one is a
funeral director or a disposer of dead human bodies.
(D) "Funeral home" means a fixed
place for the care,
preparation for burial, or
disposition of
dead human bodies or the
conducting of funerals. Each business location is a
funeral home,
regardless of common ownership or management.
(E) "Embalmer" means a person who
engages, in whole or in
part, in embalming and who is licensed
under this chapter.
(F) "Funeral director" means a person
who engages, in whole
or in part, in funeral directing and who is
licensed under this
chapter.
(G) "Final disposition" has the same
meaning as in division
(J) of section 3705.01 of the
Revised Code.
(H) "Supervision" means the operation
of all phases of the
business of funeral directing or embalming
under the specific
direction of a licensed funeral director or
licensed embalmer.
(I) "Direct supervision" means the
physical presence of a
licensed funeral director or licensed
embalmer while the specific
functions of the funeral or embalming
are being carried out.
(J) "Embalming facility" means a
fixed location, separate
from the funeral home, that is licensed
under this chapter whose
only function is the embalming and
preparation of dead human
bodies.
(K) "Crematory facility" means the
physical location at which
a cremation chamber is located and the
cremation process takes
place. "Crematory facility" does not include an
infectious waste
incineration facility for which a license is held under
division
(B) of section 3734.05 of the
Revised Code, or a solid waste
incineration
facility for which a license is held under division
(A) of that
section that includes a notation pursuant to division
(B)(3) of that
section authorizing the facility to also treat
infectious wastes, in
connection with the incineration of body
parts other than dead human bodies
that were donated to science
for purposes of medical education or
research.
(L) "Crematory" means the building or
portion of a building
that houses the holding facility and the
cremation chamber.
(M) "Cremation" means the technical
process of using heat and
flame to reduce human or animal remains to bone
fragments or ashes
or any combination thereof. "Cremation" includes
processing and
may include the
pulverization of bone fragments.
(N) "Cremation chamber" means the enclosed space within which
cremation takes place.
(O) "Cremated remains" means all
human or animal remains
recovered after the completion of the cremation
process, which may
include the residue of any foreign matter such
as casket material,
dental work, or eyeglasses that were cremated
with the human or
animal remains.
(P) "Lapsed license" means a license
issued under this
chapter that has become invalid because of the
failure of the
licensee to renew the license within the time
limits prescribed
under this chapter.
(Q) "Operator of a crematory facility" means the sole
proprietorship, partnership, corporation, limited liability
company, or other
business entity responsible for the overall
operation of a crematory
facility.
(R) "Processing" means the reduction of identifiable bone
fragments to unidentifiable bone fragments through manual or
mechanical means
after the completion of the cremation process.
(S) "Pulverization" means the reduction of identifiable bone
fragments to granulated particles by manual or mechanical means
after the
completion of the cremation process.
(T) "Financial institution" means a bank, savings bank, or
savings association located in this state and insured by the
federal deposit insurance corporation or a credit union authorized
to do business in this state.
(U) "Preneed funeral contract" means a written agreement,
contract, or series of contracts to sell or otherwise provide any
funeral services, funeral goods, including caskets, or any
combination of funeral services and funeral goods to be used in
connection with the funeral or final disposition of a dead human
body, where payment for the goods or services is made either
outright or on an installment basis, prior to the death of the
person purchasing the goods or services or for whom the goods or
services are purchased. Preneed funeral contract does not include
any preneed cemetery merchandise and services contract or any
agreement, contract, or series of contracts pertaining to the sale
of any burial lot, burial or interment right, entombment right, or
columbarium right with respect to which an endowment care fund is
established or is exempt from establishment pursuant to section
1721.21 of the Revised Code.
Sec. 4717.03. (A) Members of the board of
embalmers and
funeral directors shall annually in July,
or within thirty days
after the senate's confirmation of the new
members appointed in
that year, meet and organize by selecting
from among its members a
president, vice-president, and secretary-treasurer.
The board may
hold other meetings as it determines necessary. A quorum of the
board consists of four members, of whom at least three shall be
members who are embalmers and funeral directors. The concurrence
of at least four members is necessary for the board to take any
action. The president and secretary-treasurer shall sign all
licenses
issued under this chapter and affix the board's seal to
each
license.
(B) The board may appoint an individual who is
not a member
of the board to serve as executive director of the
board. The
executive director serves at the pleasure of the
board and shall
do all of the following:
(1) Serve as the board's chief administrative officer;
(2) Act as custodian of the board's records;
(3) Execute all of the board's orders.
In executing the board's orders, the executive director
may
enter the premises, establishment, office, or place of
business of
any embalmer, funeral director, or operator of a crematory
facility in this state. The executive director may serve and
execute any
process issued by any court under this chapter.
(C) The board may employ clerical or technical
staff who are
not members of the board and who serve at the
pleasure of the
board to provide any clerical or technical
assistance the board
considers necessary. The board may employ
necessary inspectors,
who shall be licensed embalmers and funeral
directors. Any
inspector employed by the board may enter the
premises,
establishment, office, or place of business of any
embalmer,
funeral director, or operator of a crematory facility in this
state,
for the purposes of inspecting the facility and premises;
the
license and registration of embalmers and funeral directors
operating in the facility; and the license of the
funeral home,
embalming facility, or crematory. The inspector
shall serve and
execute any process issued by any court under
this chapter, serve
and execute any papers or process issued by
the board or any
officer or member of the board, and perform any
other duties
delegated by the board.
(D) The president of the board shall
designate three of its
members to serve on the crematory review board, which
is hereby
created, for such time as the president finds appropriate to carry
out the provisions of this chapter. Those members of the crematory
review
board designated by the president to serve and three
members designated by the
cemetery
dispute resolution commission
shall designate, by a majority vote, one person
who is experienced
in the operation of a crematory facility and who is not
affiliated
with a cemetery or a funeral home to serve on the crematory review
board for such time as the crematory review board finds
appropriate. Members
serving on the crematory review board shall
not receive any additional
compensation for serving on the board,
but may be reimbursed for their actual
and necessary expenses
incurred in the performance of official duties as
members of the
board. Members of the crematory review board
shall designate one
from among its members to serve as a chairperson for such
time as
the board finds appropriate. Costs associated with conducting an
adjudicatory hearing in accordance with division (E) of this
section
shall be paid from funds available to the board of
embalmers and funeral
directors.
(E) Upon receiving
written notice from the board of embalmers
and funeral directors
of any of the following, the crematory
review board shall
conduct an adjudicatory hearing on the matter
in accordance with
Chapter 119. of the Revised Code, except as
otherwise provided in this section or division
(C) of section
4717.14 of the
Revised Code:
(1) Notice provided under division (H) of this section of
an
alleged violation of any provision of this chapter or any
rules
adopted under this chapter, or section 1111.19
of
the
Revised
Code, governing or in
connection with crematory facilities or
cremation;
(2) Notice provided under division
(B) of section 4717.14 of
the Revised Code that
the board of embalmers and funeral
directors
proposes to refuse to grant or renew, or to suspend or revoke, a
license to operate a crematory facility;
(3) Notice provided under division (C) of section 4717.14
of
the Revised Code that the board of embalmers and funeral
directors
has issued an order summarily suspending a license to
operate a
crematory facility;
(4) Notice provided under division (B) of section 4717.15
of
the Revised Code that the board of embalmers and funeral
directors
proposes to issue a notice of violation and order
requiring
payment of a forfeiture for any violation described in
divisions
(A)(9)(a) to (g) of section
4717.04 of
the Revised Code alleged in
connection with
a crematory facility or cremation.
Nothing in division (E) of this section precludes the
crematory review board from appointing an independent examiner in
accordance
with section 119.09 of the Revised Code to conduct any
adjudication hearing required under division (E) of this section.
The crematory review board shall submit a written report
of
findings and advisory recommendations, and a written
transcript of
its proceedings, to the board of embalmers and
funeral directors.
The board of embalmers and funeral directors
shall serve a copy of
the written report of the crematory review
board's findings and
advisory recommendations on the party to
the adjudication or the
party's attorney, by certified mail,
within five days after
receiving the report and advisory
recommendations. A party may
file objections to the written
report with the board of embalmers
and funeral directors within
ten days after receiving the report.
No written report is
final or appealable until it is issued as a
final order by the
board of embalmers and funeral directors and
entered on the
record of the proceedings. The board of embalmers
and funeral
directors shall consider objections filed by the party
prior to
issuing a final order. After reviewing the findings and
advisory recommendations of the crematory review board, the
written transcript of the crematory review board's proceedings,
and any objections filed by a party, the board of embalmers and
funeral directors shall issue a final order in the matter. Any
party may appeal the final order issued by the board of
embalmers
and funeral directors in a matter described in
divisions (E)(1) to
(4) of this
section in accordance with section 119.12 of the
Revised Code, except that the appeal
may be made to the court of
common pleas in the county in which
is located the crematory
facility to which the final order
pertains, or in the county in
which the party resides.
(F) On its own initiative or on receiving a
written complaint
from any person whose identity is made known to
the board of
embalmers and funeral directors, the board shall investigate the
acts or practices of
any person holding or claiming to hold a
license or registration under this
chapter that, if proven to have
occurred, would violate this
chapter or any rules adopted under
it, or section
1111.19 of the
Revised Code. The board may compel
witnesses by
subpoena to appear and testify in relation to
investigations
conducted under this chapter and may require by
subpoena duces
tecum the production of any book, paper, or
document pertaining
to an investigation. If a person does not
comply with a
subpoena or subpoena duces tecum, the board may
apply to the
court of common pleas of any county in this state for
an order
compelling the person to comply with the subpoena or
subpoena
duces tecum, or for failure to do so, to be held in
contempt of
court.
(G) If, as a result of its investigation conducted under
division
(F) of this section, the board of embalmers and funeral
directors has
reasonable cause to believe that the person
investigated is
violating any provision of this chapter or any
rules adopted under
this
chapter, or section 1111.19 of the
Revised
Code, governing or in
connection with embalming, funeral
directing, funeral homes, embalming
facilities, or the operation
of funeral homes or embalming facilities, it may,
after providing
the opportunity for an adjudicatory hearing, issue an order
directing the person to
cease the acts or practices that
constitute the violation. The board shall
conduct the adjudicatory
hearing in accordance with
Chapter 119. of the Revised Code except
that, notwithstanding the provisions of that chapter, the
following shall apply:
(1) The board shall send the notice informing the
person of
the person's right to a hearing by certified mail.
(2) The person is entitled to a hearing only if the person
requests a hearing and if the board receives the request within
thirty days
after the mailing of the notice
described in division
(G)(1) of this section.
(3) A stenographic record shall be taken, in the manner
prescribed in section 119.09 of the Revised Code,
at every
adjudicatory hearing held under this section, regardless
of
whether the record may be the basis of an appeal to a court.
(H) If, as a result of
its investigation conducted under
division
(F) of this section, the board of embalmers and funeral
directors has
reasonable cause to believe that the person
investigated is
violating any provision of this chapter or any
rules adopted under
this chapter, or section 1111.19 of the
Revised
Code, governing or in
connection with crematory facilities
or cremation, the board
shall send written notice of the alleged
violation to the
crematory review board. If, after the conclusion
of the
adjudicatory hearing in the matter conducted under division
(E) of this section, the board
of embalmers and funeral directors
finds that a person is in
violation of any provision of this
chapter or any rules adopted
under this chapter, or section
1111.19 of the
Revised Code, governing or in
connection with
crematory facilities or cremation, the board may
issue a final
order under that division directing the person to
cease the acts
or practices that constitute the
violation.
(I) The board of embalmers and funeral directors may bring a
civil action to enjoin any violation or threatened violation of
section
1111.19; sections 4717.01 to 4717.15 of the Revised
Code
or a rule adopted under any of those
sections;
division (A) or (B)
of section 4717.23; division
(B)(1) or (2), (C)(1) or (2), (D),
(E), or
(F)(1) or (2), or divisions (H) to (K) of section
4717.26;
division (D)(1) of section 4717.27; or divisions
(A) to (C) of
section 4717.28, or section 4717.31 of the
Revised Code. The
action shall be brought in
the county where the violation occurred
or the threatened
violation is expected to occur. At the request
of the board, the
attorney general shall represent the board in
any matter arising
under this chapter.
(J) The board of embalmers and funeral directors and the
crematory review board may issue subpoenas
for funeral directors
and embalmers or persons holding themselves out as
such, for
operators of crematory facilities or persons holding themselves
out
as such, or for any other person whose testimony, in the
opinion of
either board, is necessary. The subpoena shall require
the person
to appear before the appropriate board or any
designated member of either
board, upon any hearing conducted
under this chapter. The penalty for
disobedience to the command of
such a subpoena is the same as for
refusal to answer such a
process issued under authority of the
court of common pleas.
(K) All moneys received by the board of embalmers and funeral
directors from any source shall be deposited in the state treasury
to the
credit of the occupational licensing and regulatory fund
created in section
4743.05 of the Revised Code.
(L) The board of embalmers and funeral directors shall submit
a
written report to the governor on or before the first Monday of
July of each year. This report shall contain a detailed
statement
of the nature and amount of the board's receipts and
the amount
and manner of its expenditures.
Sec. 4717.04. (A) The board of embalmers and
funeral
directors shall adopt rules in accordance with
Chapter 119. of the
Revised Code for the
government, transaction of the business, and
the management of the
affairs of the board of embalmers and
funeral directors and the crematory
review board, and for the
administration and enforcement of this chapter.
These rules shall
include all of the following:
(1) The nature, scope, content, and form of the
application
that must be completed and license examination that
must be passed
in order to receive an embalmer's license or a
funeral director's
license under section 4717.05 of the
Revised Code. The rules shall
ensure both of the
following:
(a) That the embalmer's license examination
tests the
applicant's knowledge through at least a comprehensive
section and
an Ohio laws section;
(b) That the funeral director's license examination
tests the
applicant's knowledge through at least a
comprehensive section, an
Ohio laws section, and a
sanitation section.
(2) The minimum license examination score necessary to
be
licensed under section 4717.05 of the Revised
Code as an embalmer
or as a funeral director;
(3) Procedures for determining the dates of the
embalmer's
and funeral director's license examinations, which
shall be
administered at least once each year, the time and place
of each
examination, and the supervision required for each
examination;
(4) Procedures for determining whether the board shall
accept
an applicant's compliance with the licensure,
registration, or
certification requirements of another state as
grounds for
granting the applicant a license under this chapter;
(5) A determination of whether completion of a
nationally
recognized embalmer's or funeral director's
examination
sufficiently meets the license requirements for the
comprehensive
section of either the embalmer's or the funeral
director's license
examination administered under this chapter;
(6) Continuing education requirements for licensed
embalmers
and funeral directors;
(7) Requirements for the licensing and operation of
funeral
homes;
(8) Requirements for the licensing and operation of
embalming
facilities;
(9) A schedule that lists, and specifies a forfeiture
commensurate with, each
of the following types of conduct which,
for the purposes
of division (A)(9) of this
section and section
4717.15 of the
Revised
Code, are violations of this
chapter:
(a) Obtaining a license under this
chapter by fraud or
misrepresentation either in the application
or in passing the
required examination for the license;
(b) Purposely violating any provision
of sections 4717.01 to
4717.15 of the Revised Code
or a rule adopted under any of those
sections; division (A) or (B) of section 4717.23;
division (B)(1)
or (2), (C)(1) or (2), (D),
(E), or (F)(1) or (2), or divisions
(H) to
(K) of section 4717.26; division (D)(1) of section 4717.27;
or divisions (A) to (C) of section 4717.28 of the Revised Code;
(c) Committing unprofessional
conduct;
(d) Knowingly permitting an
unlicensed person, other than a
person serving an
apprenticeship, to engage in the profession or
business of
embalming or funeral directing under the licensee's
supervision;
(e) Refusing to promptly submit the
custody of a dead human
body upon the express order of the
person legally entitled to the
body;
(f) Transferring a license to operate
a funeral home,
embalming facility, or crematory facility from one owner
or
operator to another, or from one location to another, without
notifying the board;
(g) Misleading the public using false
or deceptive
advertising.
Each instance of the commission of any of the types of
conduct described in divisions
(A)(9)(a),
(b), (c), (d), (e), (f),
and (g) of this section is a separate
violation. The rules adopted
under division
(A)(9) of this section shall
establish the amount
of the forfeiture for a violation of each of
those divisions. The
forfeiture for a first violation shall not
exceed five thousand
dollars, and the forfeiture for a second or
subsequent violation
shall not exceed ten thousand dollars. The
amount of the
forfeiture may differ among the types of
violations according to
what the board considers the
seriousness of each violation.
(10) Requirements for the licensing and operation of
crematory facilities;
(11) Procedures for the issuance of duplicate licenses;
(12) Requirements and procedures for annual reporting of
preneed sales by all preneed sellers;
(13) Procedures for the administration of the preneed
recovery fund.
(B) The board may adopt rules governing the
educational
standards for licensure as an embalmer or funeral
director and the
standards of service and practice to be followed
in embalming and
funeral directing and in the operation of
funeral homes, embalming
facilities, and crematory facilities in
this state.
(C) Nothing in this chapter authorizes the board of embalmers
and
funeral directors to regulate cemeteries, except that the
board shall license
and regulate crematories located at cemeteries
in accordance with this
chapter.
Sec. 4717.13. (A) No person shall do any of
the following:
(1) Engage in the business or profession of funeral
directing
unless the person is licensed as a funeral director under this
chapter, is certified as an apprentice funeral director in
accordance with
rules adopted under section 4717.04 of
the Revised
Code and is assisting a funeral director
licensed under this
chapter, or is a student in a college of mortuary sciences
approved by the board and is under the direct supervision of a
funeral
director licensed by the board;
(2) Engage in embalming unless the person is licensed as an
embalmer under
this chapter, is certified as an apprentice
embalmer in accordance with rules
adopted under section 4717.04 of
the Revised Code and is assisting an embalmer
licensed under
this
chapter, or is a student in a college of
mortuary science approved
by the board and is under the
direct supervision of an embalmer
licensed by the board;
(3) Advertise or otherwise offer to provide or convey
the
impression that the person provides funeral directing services
unless the person is licensed as a funeral director under this
chapter
and is employed by or under contract to a licensed funeral
home
and performs funeral directing services for that funeral home
in
a manner consistent with the advertisement, offering, or
conveyance;
(4) Advertise or otherwise offer to provide or convey
the
impression that the person provides embalming services unless
the
person is licensed as an embalmer under this chapter and is
employed
by or under contract to a licensed funeral home or a
licensed
embalming facility and performs embalming services for
the
funeral home or embalming facility in a manner consistent with
the advertisement, offering, or conveyance;
(5) Operate a funeral home without a license to operate
the
funeral home issued by the board under this chapter;
(6) Practice the business or profession of funeral
directing
from any place except from a funeral home that a person
is
licensed to operate under this chapter;
(7) Practice embalming from any place except from a
funeral
home or embalming facility that a person is licensed to
operate
under this chapter;
(8) Operate a crematory or perform cremation without
a
license to operate the crematory issued under this chapter;
(9) Cremate animals in a cremation chamber in which dead
human bodies or
body parts are cremated or cremate dead human
bodies or human body parts in a
cremation chamber in which animals
are cremated.
(B) No funeral director
or other person in charge of the
final disposition of a dead
human body shall fail to do
one of the
following prior to the interment of the body:
(1) Affix to the ankle or wrist of the deceased a tag
encased
in a durable and long-lasting material that contains the
name,
date of birth, date of death, and social security number
of the
deceased;
(2) Place in the casket a capsule containing a tag bearing
the information
described in division (B)(1) of
this section;
(3) If the body was cremated, place in the vessel
containing
the cremated remains a tag bearing the information described in
division
(B)(1) of this section.
(C) No person who holds
a funeral home license for a funeral
home that is closed,
or that is owned by a funeral business in
which changes in the ownership of
the funeral business result in a
majority of the ownership of the funeral
business being held by
one or more persons who solely or in combination with
others did
not own a majority of the funeral business immediately prior to
the
change in ownership, shall fail to submit to the
board within
thirty days after the closing or such a change in
ownership of the
funeral business owning the funeral home, a clearly
enumerated
account of
all of the following from which the licensee, at the
time of the closing or
change in ownership of the funeral business
and in connection with the
funeral home, was to receive payment
for providing funeral
services, funeral goods, or any combination
of those in
connection with the funeral or final disposition of a
dead human
body:
(1) Preneed funeral contracts governed by section 1111.19
4717.31
of the Revised Code;
(2) Life insurance policies the benefits of which are
payable
to the provider of funeral or burial goods or services;
(3) Accounts at banks or savings banks insured by the
federal
deposit insurance corporation, savings and loan
associations
insured by the federal savings and loan insurance
corporation or
the Ohio deposit
guarantee fund, or credit unions insured by the
national credit
union administration or a credit union share
guaranty
corporation organized under Chapter 1761. of the Revised
Code that are payable upon the death of the person for whose
benefit
deposits into the accounts were made.
Sec. 4717.31. (A) Only a funeral director licensed pursuant
to Chapter 4717. of the Revised Code may sell a preneed funeral
contract that includes funeral services.
(B) A preneed funeral contract may be funded by the purchase
or assignment of an insurance policy in accordance with section
3905.45 of the Revised Code. Preneed funeral contracts that are
funded by the purchase or assignment of an insurance policy in
accordance with section 3905.45 of the Revised Code are not
subject to divisions (C), (F), (G), (I), and (J) of this section.
Any preneed funeral contract that involves the payment of money or
the purchase or assignment of an insurance policy shall be in
writing and include the following information:
(1) The name, address, and phone number of the seller and the
name, address, and social security number of the purchaser, and,
if the beneficiary of the preneed funeral contract is for someone
other than the purchaser, the name, address, and social security
number of the beneficiary;
(2) A statement of the funeral goods and funeral services
purchased, which disclosure may be made by attaching a copy of the
completed statement of funeral goods and services selected to the
preneed funeral contract;
(3) If the preneed funeral contract is funded by any means
other than an insurance policy or policies, disclosures
identifying the name and address of the trustee, indicating
whether fees, expenses, or taxes will be deducted from the trust,
and a statement of who will be responsible for the taxes owed on
the trust earnings;
(4) If the preneed funeral contract is funded by the purchase
or assignment of one or more insurance policies, disclosures
identifying the name and address of the insurance company and any
right the purchaser has regarding canceling or transferring the
insurance policies;
(5) A disclosure explaining the form in which the purchase
price must be paid and, if the price is to be paid in
installments, a disclosure to the purchaser regarding what
constitutes a default under the preneed funeral contract and the
consequences of the default;
(6) A disclosure informing the purchaser whether the contract
is either a guaranteed price preneed funeral contract or a
non-guaranteed price preneed funeral contract, and, if guaranteed
only in part, the funeral goods or funeral services included in
the guarantee shall be specified. If the preneed funeral contract
is a guaranteed price contract, the contract shall disclose that
the seller, in exchange for all of the proceeds of the trust or
insurance policy, shall provide the funeral goods and services set
forth in the preneed funeral contract without regard to the actual
cost of such funeral goods and services prevailing at the time of
performance. If the preneed funeral contract is a non-guaranteed
price contract, the contract shall disclose that the proceeds of
the trust or insurance policy shall be applied to the current
retail prices of the funeral goods and services set forth in the
contract. It shall further disclose that any surplus funds shall
be paid to the estate of the purchaser and, in the event of an
insufficiency in funds, the seller shall not be required to
perform until payment arrangements satisfactory to the seller have
been made.
(7) A disclosure that the purchaser has the right to make the
contract irrevocable and that if the preneed funeral contract is
irrevocable, the purchaser does not have a right to revoke the
contract;
(8) A disclosure informing the purchaser of the initial right
to cancel the preneed funeral contract within seven days as
provided in division (D) of this section and the right to revoke a
revocable preneed funeral contract in accordance with divisions
(E)(3) and (I)(1) of this section;
(9) A disclosure that the seller may substitute funeral goods
or services of equal quality, value, and workmanship if those
specified in the preneed funeral contract are unavailable at the
time of need;
(10) A disclosure that any purchaser of funeral goods and
services is entitled to receive price information prior to making
that purchase in accordance with the Federal Trade Commission's
funeral industry practices revised rule, 16 C.F.R. Part 453;
(11) The following notice in boldface print and in
substantially the following form:
"NOTICE: Under Ohio law, the person holding the right of
disposition of the remains of the beneficiary of this contract
pursuant to section 2108.70 or 2108.81 of the Revised Code will
have the right to make funeral arrangements inconsistent with the
arrangements set forth in this contract. However, the beneficiary
is encouraged to state his or her preferences as to funeral
arrangements in a declaration of the right of disposition pursuant
to section 2108.72 of the Revised Code, including that the
arrangements set forth in this contract shall be followed."
(12) If the preneed funeral contract is funded by the
purchase of one or more insurance policies, the following notice
in boldface print and in substantially the following form:
"NOTICE: You, as the purchaser of this contract, will be
notified in writing by any insurance company when the insurance
policy or policies that will fund this contract have been issued.
If you do not receive the notice within sixty days of the date you
paid the funds to the seller, you should contact the insurance
company identified in the contract."
(13) If the preneed contract is funded by means other than an
insurance policy, the following notice in boldface print and in
substantially the following form:
"NOTICE: You, as the purchaser of this contract, will be
notified in writing when the trustee of this contract has received
a deposit of the funds you paid the seller under this contract. If
you do not receive the notice within sixty days of the date you
paid the funds to the seller, you should contact the trustee
identified in the contract."
(C) One hundred per cent of all payments for funeral goods
and services made under a preneed funeral contract shall remain
intact and held in trust in accordance with divisions (F), (G),
(I), and (J) of this section for the benefit of the person for
whose benefit the contract is made. No money in a preneed funeral
contract trust shall be distributed from the trust except as
provided in this section. Within thirty days after the seller of
funeral goods or services receives any payment under a preneed
funeral contract, the seller shall deliver the moneys received and
not returned to the purchaser as provided in division (D) of this
section to the trustee designated in the preneed funeral contract.
(D) Any purchaser on initially entering into a preneed
funeral contract may, within seven days, rescind the contract and
request and receive from the seller one hundred per cent of all
payments made under the contract. Each preneed funeral contract
shall contain the following notice in boldface print and in
substantially the following form:
"NOTICE: Under Ohio law, you, as the purchaser of this
contract, may rescind it and receive a refund of all payments you
made under the contract. To rescind the contract, you must notify
the seller within seven days of signing the contract."
(E)(1) If the preneed funeral contract provides that it will
be funded by the purchase of an insurance policy, the seller,
within thirty days after receiving any payment under the preneed
funeral contract, shall deliver the money received and not
returned to the purchaser as provided in division (D) of this
section, to the insurance company designated in the preneed
funeral contract.
(2) The insurance company receiving payment from a preneed
funeral contract seller for an insurance policy to fund the
preneed funeral contract shall notify the purchaser of the
contract in writing of the amount of any payment received within
fifteen days of the receipt of the payment.
(3) The purchaser of a preneed funeral contract that is not
irrevocable and that is funded by an insurance policy may, on not
less than fifteen days' notice, cancel the preneed funeral
contract and change the beneficiary of the insurance policy or
reassign the benefits under the policy.
(4) The purchaser of a preneed funeral contract that is
irrevocable and that is funded by an insurance policy may transfer
the preneed funeral contract to a successor seller. Within fifteen
days of receiving the written notice of the designation of the
successor seller from the purchaser, the original seller shall
notify the insurance company to transfer all rights under the
insurance policy to the successor seller. The insurance company
shall confirm the transfer to the original seller, the successor
seller, and the purchaser by written notice to each.
(F) The trustee of each preneed funeral contract shall be a
trust company licensed under Chapter 1111. of the Revised Code or
a national bank or federal savings association that pledges
securities in accordance with section 1111.04 of the Revised Code
or at least three individuals who have been residents of the
county in which the seller is located for at least one year, each
of whom shall be bonded by a corporate surety in an amount that is
at least equal to the amount deposited in the fund of which those
persons serve as trustee. Amounts in the fund shall be held and
invested in the manner in which trust funds are permitted to be
held and invested pursuant to sections 2109.37 and 2109.371 of the
Revised Code.
(G)(1) A trustee shall establish a separate preneed funeral
contract trust for the moneys paid under each preneed funeral
contract, unless the purchaser under a preneed funeral contract
authorizes the trustee to place the moneys paid in a combined
preneed funeral contract trust. The trustee of a combined preneed
funeral contract trust shall keep exact records of the corpus,
income, expenses, and disbursements with regard to each
beneficiary of a preneed funeral contract for whom moneys are held
in the trust. The terms of a preneed funeral contract trust are
governed by this section.
(2) The trustee of a preneed funeral contract shall notify
the purchaser of the contract in writing of the amount of any
deposit with the trustee of a payment under the contract within
fifteen days of receiving the deposit from the seller of the
contract.
(3) A trustee may charge a fee for managing a preneed funeral
contract trust. The fee shall not exceed the amount regularly or
usually charged for similar services rendered by the financial
institution when serving as a trustee, and shall be paid only from
the income on that trust.
(H) No preneed funeral contract shall restrict the purchaser
from making the contract irrevocable. On the purchase by an
individual of an irrevocable preneed funeral contract, the selling
funeral director assumes the legal obligation to provide for the
funeral of the individual pursuant to the terms of the contract.
No money deposited in a trust fund for an irrevocable preneed
contract shall be withdrawn to purchase an insurance policy.
(I)(1) The purchaser of a preneed funeral contract that is
not irrevocable may, on not less than fifteen days' notice, cancel
the contract and request and receive from the trustee payments
made under the contract and any income earned up to the time of
cancellation, less fees, distributions, and expenses made pursuant
to this section; except, if a preneed funeral contract stipulates
a firm or fixed or guaranteed price for funeral services and goods
for future use at a time determined by the death of the
beneficiary of the preneed funeral contract, the purchaser, on not
less than fifteen days' notice, may cancel the contract and
receive from the trustee ninety per cent of the principal paid
pursuant to the preneed funeral contract, not less than eighty per
cent of any interest earned up to the time of cancellation, and
not less than eighty per cent of any income earned on the funds
since the funds were paid to the seller and up to the time of
cancellation less any fees, distributions, and expenses. On
cancellation, after the funds are distributed to the purchaser
pursuant to this division, the trustee shall distribute all
remaining funds attributable to the cancelled preneed funeral
contract to the seller. If more than one purchaser enters into the
contract, all of those purchasers must request cancellation for it
to be effective under this division, and the trustee shall refund
to each purchaser only those funds that purchaser has paid under
the contract and a proportionate amount of any income earned on
those funds, less any fees, distributions, and expenses.
(2) The purchaser of a preneed funeral contract that is
irrevocable may transfer the preneed funeral contract to a
successor seller. Within fifteen days of receiving the written
notice of the new designation from the purchaser, the trustee
shall list the successor seller as the seller of the preneed
funeral contract and the original seller shall relinquish and
transfer all rights under the preneed funeral contract to the
successor seller. The trustee shall confirm the transfer to the
original seller, the successor seller, and the purchaser by
written notice to each. If the preneed funeral contract stipulates
a firm or fixed or guaranteed price for the funeral services and
goods to be provided under the preneed funeral contract, the
original seller may collect from the trustee a cancellation fee
not exceeding ten per cent of the principal paid pursuant to the
preneed funeral contract and twenty per cent of any interest or
income earned on the funds since the time the funds were paid to
the seller up to the time of transfer. If the preneed funeral
contract does not stipulate a firm or fixed or guaranteed price
for funeral services and goods to be provided under the preneed
funeral contract, no cancellation fee may be collected by the
original seller.
(3) Within thirty days after a seller receives notice that
the beneficiary of a preneed funeral contract has died and that
funeral services and goods have been provided by a different
provider, the seller shall notify the trustee to pay to the estate
of the beneficiary of the preneed funeral contract all funds held
by the trustee, less fees, distributions, and expenses made
pursuant to this section; provided, however, that in the event the
preneed funeral contract stipulates a firm or fixed or guaranteed
price for funeral services and goods that were to be provided
under the preneed funeral contract, the seller may collect from
the trustee a cancellation fee not exceeding ten per cent of the
principal paid pursuant to the preneed funeral contract and twenty
per cent of any interest or income earned on the funds since the
time the funds were paid to the seller up to the date that the
trust funds were paid to the estate of the beneficiary. If the
preneed funeral trust does not stipulate a firm or fixed or
guaranteed price for funeral services and goods to be provided
under the preneed funeral contract, no cancellation fees may be
collected by the original seller.
(J) A certified copy of the certificate of death or other
evidence of death satisfactory to the trustee shall be furnished
to the trustee as evidence of death, and the trustee shall
promptly pay the accumulated payments and income, if any,
according to the preneed funeral contract. The payment of the
accumulated payments and income pursuant to this section and, when
applicable, the preneed funeral contract, shall relieve the
trustee of any further liability on the accumulated payments and
income.
(K) For purposes of this section, the seller is deemed to
have delivered funeral goods pursuant to a preneed funeral
contract when the seller makes actual delivery of the goods to the
beneficiary.
(L) All sellers of funeral goods or services under a preneed
funeral contract, whether funded by insurance or otherwise,
annually shall submit to the board of embalmers and funeral
directors the reports the board requires.
(M) This section shall be construed as a limitation on the
manner in which a person is permitted to accept funds in
prepayment for funeral services to be performed in the future, or
funeral goods to be used in connection with the funeral or final
disposition of human remains, to the end that at all times members
of the public may have an opportunity to arrange and pay for a
funeral for themselves and their families in advance of need while
at the same time providing all possible safeguards to ensure that
prepaid funds cannot be dissipated, whether intentionally or not,
but remain available for payment for funeral goods and services in
connection with the funeral or final disposition of dead human
bodies.
(N) This section does not apply when the seller of funeral
goods or services under a preneed funeral contract is an
established and legally cognizable church or denomination that is
exempt from federal income taxation under section 501(c)(3) of the
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 501, as
amended, and the preneed funeral contract pertains to a cemetery
owned and operated entirely and exclusively by the church or
denomination; provided the church or denomination adopts, on a
voluntary basis, rules and other measures to safeguard and secure
all funds received under any preneed funeral contract.
(O) This section does not prohibit persons who are not
licensed funeral directors from selling funeral goods pursuant to
a preneed funeral contract; however, all sellers of funeral goods
pursuant to a preneed funeral contract shall comply with this
section unless the seller is specifically exempt from compliance
by this section.
(P) Any money, insurance policies, or other items delivered
in payment of a preneed funeral contract, and any funds held in
trust pursuant to this section, are exempt from levy, attachment,
or sale to satisfy a judgment or order.
Sec. 4717.32. (A) There is hereby created in the state
treasury the preneed recovery fund, which shall be used to
reimburse any purchaser of a preneed funeral contract who has
incurred financial losses as a result of the malfeasance,
misfeasance, default, failure, or insolvency of any seller of a
preneed funeral contract. All investment earnings of the fund
shall be credited to the fund.
(B) A seller of a preneed funeral contract that is funded by
the payment of money or by an insurance policy shall collect from
each purchaser of a preneed funeral contract a fee of ten dollars.
The sellers of preneed funeral contracts annually shall remit the
fees collected to the board of embalmers and funeral directors
quarterly within thirty days after the end of March, June,
September, and December for all preneed funeral contracts that
have been entered into during the three-month period. The board
shall deposit one-half of the fees collected into the preneed
recovery fund, to be expended only for the purposes specified in
division (E) of this section.
(C) The remaining one-half of the fees remitted to the board
in accordance with division (B) of this section shall be used by
the board to administer the preneed recovery fund and to monitor
the preneed annual reports filed by sellers of preneed funeral
contracts.
(D) The board shall adopt rules governing management of the
preneed recovery fund, the presentation and processing of
applications for reimbursement, and subrogation or assignment of
the rights of any reimbursed applicant.
(E) The board may expend moneys in the fund for the following
purposes:
(1) To make reimbursements on approved applications;
(2) To purchase insurance to cover losses as deemed
appropriate by the board and not inconsistent with the purposes of
the fund;
(3) To invest such portions of the fund as are not currently
needed to reimburse losses and maintain adequate reserves as are
permitted to be made by fiduciaries under state law.
(F) Reimbursements from the fund shall be made only to the
extent to which such losses are not bonded or otherwise covered,
protected, or reimbursed, and only after the applicant has
complied with all applicable rules of the board.
(G) The board shall investigate all applications made and may
reject or allow such claims in whole or in part to the extent that
the moneys are available in the fund. The board has complete
discretion to determine the order and manner of payment of
approved applications. All payments are a matter of privilege and
not a right, and no person has any right in the fund as a
third-party beneficiary or otherwise. No attorney may be
compensated by the board for prosecuting an application for
reimbursement.
(H) In the event reimbursement is made to an applicant under
this section, the board is subrogated in the reimbursed amount and
may bring any action it deems advisable against any person,
including a seller of a preneed funeral contract. The board may
enforce any claims it may have for restitution or otherwise and
may employ and compensate consultants, agents, legal counsel,
accountants, and any other person it deems appropriate.
(I) The fund shall not be applied toward any reimbursement on
losses on a preneed funeral contract that was entered into prior
to the effective date of this section.
(J) If at the end of any fiscal year for the state, the
balance in the fund exceeds two million dollars, the amount
collected from purchasers of preneed funeral contracts during the
next fiscal year shall be reduced from ten dollars to five
dollars, with all such proceeds to be used by the board in
accordance with division (C) of this section.
Sec. 4717.99. Whoever violates any provision of
sections
4717.01 to 4717.15; division (A) or (B) of
section 4717.23;
division (B)(1) or (2), (C)(1) or (2),
(D), (E), or (F)(1) or (2),
or divisions
(H) to (K) of section 4717.26; division (D)(1) of
section 4717.27; or divisions (A) to (C) of section 4717.28
of the
Revised Code shall be fined not less than one hundred nor more
than
five thousand dollars, or imprisoned for not more than one
year, or both, for
the first offense. For each subsequent
offense
such a person shall be fined not less than one hundred
nor more
than ten thousand dollars, or imprisoned for not more
than one
year, or both.
Whoever purposely violates section 4717.31 of the Revised
Code is guilty of a felony of the fourth degree.
Sec. 5747.02. (A) For the purpose of providing revenue for
the
support of schools and local government functions, to provide
relief to property taxpayers, to provide revenue for the general
revenue fund, and to meet the expenses of administering the tax
levied by this chapter, there is hereby levied on every
individual, trust,
and
estate residing in or earning or
receiving
income in
this state, on every individual, trust, and
estate
earning
or receiving
lottery winnings, prizes, or awards
pursuant
to
Chapter 3770. of
the Revised Code, and on every
individual,
trust, and estate
otherwise
having nexus with or in
this state
under the Constitution
of the
United States, an annual
tax
measured in the
case of individuals
by
Ohio adjusted gross income
less
an exemption for the
taxpayer, the
taxpayer's spouse, and
each
dependent as provided in section
5747.025 of the Revised
Code;
measured in the case of trusts by modified
Ohio taxable
income
under
division
(D) of this section; and measured in the
case of
estates
by
Ohio
taxable
income. The tax imposed by this
section on the
balance
thus obtained is
hereby levied as follows:
(1) For taxable years beginning in 2004:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.743% |
More than $5,000 but not more than $10,000 |
|
$37.15 plus 1.486% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$111.45 plus 2.972% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$260.05 plus 3.715% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$445.80 plus 4.457% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,337.20 plus 5.201% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$3,417.60 plus 5.943% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$4,606.20 plus 6.9% of the amount in excess of $100,000 |
More than $200,000 |
|
$11,506.20 plus 7.5% of the amount in excess of $200,000 |
(2) For taxable years beginning in 2005:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.712% |
More than $5,000 but not more than $10,000 |
|
$35.60 plus 1.424% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$106.80 plus 2.847% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$249.15 plus 3.559% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$427.10 plus 4.27% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,281.10 plus 4.983% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$3,274.30 plus 5.693% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$4,412.90 plus 6.61% of the amount in excess of $100,000 |
More than $200,000 |
|
$11,022.90 plus 7.185% of the amount in excess of $200,000 |
(3) For taxable years beginning in 2006:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.681% |
More than $5,000 but not more than $10,000 |
|
$34.05 plus 1.361% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$102.10 plus 2.722% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$238.20 plus 3.403% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$408.35 plus 4.083% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,224.95 plus 4.764% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$3,130.55 plus 5.444% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$4,219.35 plus 6.32% of the amount in excess of $100,000 |
More than $200,000 |
|
$10,539.35 plus 6.87% of the amount in excess of $200,000 |
(4) For taxable years beginning in 2007:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.649% |
More than $5,000 but not more than $10,000 |
|
$32.45 plus 1.299% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$97.40 plus 2.598% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$227.30 plus 3.247% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$389.65 plus 3.895% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,168.65 plus 4.546% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$2,987.05 plus 5.194% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$4,025.85 plus 6.031% of the amount in excess of $100,000 |
More than $200,000 |
|
$10,056.85 plus 6.555% of the amount in excess of $200,000 |
(5) For taxable years beginning in 2008:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.618% |
More than $5,000 but not more than $10,000 |
|
$30.90 plus 1.236% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$92.70 plus 2.473% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$216.35 plus 3.091% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$370.90 plus 3.708% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,112.50 plus 4.327% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$2,843.30 plus 4.945% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$3,832.30 plus 5.741% of the amount in excess of $100,000 |
More than $200,000 |
|
$9,573.30 plus 6.24% of the amount in excess of $200,000 |
(6) For taxable years beginning in 2009 or thereafter:
OHIO ADJUSTED GROSS INCOME LESS
EXEMPTIONS (INDIVIDUALS) |
|
OR |
|
MODIFIED
OHIO |
|
TAXABLE INCOME (TRUSTS) |
|
OR |
|
OHIO TAXABLE INCOME (ESTATES) |
TAX |
$5,000 or less |
|
.587% |
More than $5,000 but not more than $10,000 |
|
$29.35 plus 1.174% of the amount in excess of $5,000 |
More than $10,000 but not more than $15,000 |
|
$88.05 plus 2.348% of the amount in excess of $10,000 |
More than $15,000 but not more than $20,000 |
|
$205.45 plus 2.935% of the amount in excess of $15,000 |
More than $20,000 but not more than $40,000 |
|
$352.20 plus 3.521% of the amount in excess of $20,000 |
More than $40,000 but not more than $80,000 |
|
$1,056.40 plus 4.109% of the amount in excess of $40,000 |
More than $80,000 but not more than $100,000 |
|
$2,700.00 plus 4.695% of the amount in excess of $80,000 |
More than $100,000 but not more than $200,000 |
|
$3,639.00 plus 5.451% of the amount in excess of $100,000 |
More than $200,000 |
|
$9,090.00 plus 5.925% of the amount in excess of $200,000 |
In July of each year, beginning in 2010, the tax
commissioner
shall adjust the income amounts prescribed in this
division by
multiplying the percentage increase in the gross
domestic product
deflator computed that year under section
5747.025 of the Revised
Code by each of the income amounts
resulting from the adjustment
under this division in the preceding
year, adding the resulting
product to the corresponding income
amount resulting from the
adjustment in the preceding year, and
rounding the resulting sum
to the nearest multiple of fifty
dollars. The tax commissioner
also shall recompute each of the
tax dollar amounts to the extent
necessary to reflect the
adjustment of the income amounts. The
rates of taxation shall not
be adjusted.
The adjusted amounts apply to taxable years beginning in the
calendar year in which the adjustments are made. The tax
commissioner shall not make such adjustments in any year in which
the amount resulting from the adjustment would be less than the
amount resulting from the adjustment in the preceding year.
(B) If the director of budget and management makes a
certification to the tax commissioner under division (B)
of
section
131.44 of the Revised Code, the amount of tax as
determined under division (A)
of this section shall be reduced by
the percentage prescribed in that
certification for taxable years
beginning in the calendar year in which that
certification is
made.
(C) The levy of this tax on income does not prevent a
municipal
corporation, a joint economic development zone created
under section 715.691,
or a joint economic development district
created under
section 715.70 or 715.71 or sections 715.72 to
715.81 of the Revised Code from
levying a tax on income.
(D)
This division applies only
to taxable
years of a trust
beginning in 2002 or thereafter.
(1) The tax imposed by this section on a trust shall be
computed
by multiplying the
Ohio modified taxable income of the
trust
by the
rates prescribed by division (A) of this section.
(2) A credit is allowed against the tax computed under
division
(D) of this section equal to the lesser of (1) the tax
paid to
another state or the District of Columbia on
the trust's
modified nonbusiness
income, other than the portion of
the trust's
nonbusiness income that is qualifying investment
income as defined
in section 5747.012 of the Revised Code, or (2)
the effective tax
rate, based on
modified
Ohio taxable income,
multiplied by the
trust's modified nonbusiness
income
other than the portion of
trust's nonbusiness income that is
qualifying investment income.
The credit applies before any other
applicable credits.
(3) The credits enumerated in divisions (A)(1) to
(13) of
section 5747.98 of the Revised Code do not apply to a
trust
subject to this division.
Any credits enumerated in other
divisions of section 5747.98 of the Revised Code apply to a trust
subject to this division. To the extent that the trust
distributes
income for the taxable year for which a credit is
available to the
trust, the credit shall be shared by the trust
and its
beneficiaries. The tax commissioner and the trust shall
be guided
by applicable regulations of the United States treasury
regarding
the sharing of credits.
(E) For the purposes of this section, "trust" means any
trust
described in Subchapter J
of Chapter 1 of the Internal
Revenue
Code,
excluding
trusts that are not irrevocable as
defined in
division (I)(3)(b) of section 5747.01 of the Revised
Code and that
have no modified Ohio taxable income for the taxable
year,
charitable remainder trusts, qualified funeral trusts and preneed
funeral contract trusts established pursuant to section 1111.19
4717.31 of the Revised Code that are not qualified funeral trusts,
endowment and perpetual care trusts, qualified settlement trusts
and funds, designated settlement trusts and funds, and trusts
exempted from taxation under section 501(a)
of
the Internal
Revenue Code.
Section 2. That existing sections 1151.345, 1161.59,
1733.51, 2108.81, 2117.251, 3103.03, 3905.451, 4717.01, 4717.03,
4717.04, 4717.13, 4717.99, and 5747.02 and sections 1111.19 and
1111.99 of the Revised Code are hereby repealed.
|
|