ORS 97.933: Certification of provider of prearrangement or preconstruction sales; annual reports; rules; audits; fees.

(1) An entity may not engage in prearrangement sales or preconstruction sales, administer prearrangement sales or preconstruction sales or provide merchandise or services to fulfill prearrangement sales or preconstruction sales unless the entity is certified by the Director of the Department of Consumer and Business Services. Each location at which an entity engages in prearrangement sales or preconstruction sales, administers prearrangement sales or preconstruction sales or provides merchandise or services to fulfill prearrangement sales or preconstruction sales must be separately certified. The director shall: (a) Establish procedures for issuing certificates required by this section. (b) Establish standards for determining whether a certificate should be issued. (c) Set certification and renewal fees. (d) Require annual renewal of certification. (e) Establish standards for rules of conduct of certified providers. (2) The fees described in this section must be sufficient to meet the costs associated with the administration of ORS 97.923 to 97.949 and to maintain a reasonable emergency fund. (3)(a) A certified provider shall file an annual report with the director on forms prescribed by the director by rule. The annual report must contain any information reasonably considered necessary by the director, including but not limited to: (A) A disclosure of deposits and withdrawals of trust funds; (B) The number of consecutively numbered prearrangement or preconstruction sales contracts sold during the reporting period; (C) A complete inventory of the funeral merchandise and cemetery merchandise delivered in lieu of trust fund requirements under ORS 97.941, including: (i) The location of the merchandise; (ii) Merchandise serial numbers or warehouse receipt numbers identified by the name of the purchaser or the beneficiary; and (iii) The statement of the certified provider that each item of merchandise is in the seller’s possession at the specified location; and (D) The number of withdrawals from or terminations of any trusts. (b) If the annual report is not filed or is filed and shows any material discrepancy, the director may take appropriate action and send notification of the matter to the State Mortuary and Cemetery Board. (c) The director may relieve a certified provider of the duty to file the annual report upon a determination that the certified provider has performed all obligations under the prearrangement sales contract or preconstruction sales contract, or that such obligations lawfully have been assumed by another certified provider or have been discharged or canceled. (4) The director may audit the records of a certified provider that relate to prearrangement sales or preconstruction sales, as the director may consider appropriate. The director may refer any matter outside of normal auditing procedures to the office of the Attorney General for investigation and send notification of the referral to the State Mortuary and Cemetery Board. (5) The conduct of individuals, including salespersons as defined in ORS 97.923, employed by a certified provider is the direct responsibility of the certified provider. (6) Authority to operate as a certified provider is not transferable. An entity that seeks to purchase or otherwise acquire control of a cemetery or funeral establishment shall first apply to the director to become a certified provider. [2001 c.796 §1; 2003 c.362 §3; 2007 c.661 §15; 2012 c.7 §4]