Arizona Laws 32-1391.12. Prearranged funeral sales endorsement; requirements; renewal
A. A funeral establishment that desires to offer or sell prearranged funeral agreements funded by trust shall apply to the department for an endorsement to its establishment license. The department shall issue the endorsement if the funeral establishment satisfies the following requirements:
Terms Used In Arizona Laws 32-1391.12
- Department: means the department of health services. See Arizona Laws 32-1301
- Director: means the director of the department. See Arizona Laws 32-1301
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Fraud: Intentional deception resulting in injury to another.
- Funeral director: means a person who is licensed pursuant to this chapter and who is engaged in funeral directing. See Arizona Laws 32-1301
- Funeral establishment: means a business at a specific location that is licensed pursuant to this chapter and that is devoted to the care, storage or preparation for final disposition or transportation of dead human bodies. See Arizona Laws 32-1301
- License: means a written authorization that is issued by the department and that entitles a person to act as a funeral director or embalmer or to operate a funeral establishment, crematory or alkaline hydrolysis facility in this state. See Arizona Laws 32-1301
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Trustee: A person or institution holding and administering property in trust.
1. Pays the prescribed application fee pursuant to section 32-1309.
2. Provides the name and address of each person owning ten percent or more of the common shares or other ownership or beneficial interest in the funeral establishment.
3. Provides the name and address, any prior names or aliases, all prior addresses for the immediately preceding seven-year period, and the date and location of birth of any responsible funeral director, manager, officer, owner, trustee or other person controlling the funeral establishment and who has been convicted of any of the crimes or has been the subject of any of the court actions described in section 10-202, subsection D, paragraph 1, subdivisions (a), (b) and (c).
4. Delivers a corporate surety bond in favor of this state, executed by a surety company authorized to do business in this state, in the amount that is prescribed by the department and that is recoverable by this state for the benefit of any person injured by a violation of this article. The department shall establish, in its rules, a separate bond requirement amount for each of the following:
(a) Funeral establishments that sold fewer than one hundred prearranged funeral agreements funded by trust during the immediately preceding calendar year.
(b) Funeral establishments that sold one hundred or more but fewer than two hundred fifty prearranged funeral agreements funded by trust during the immediately preceding calendar year.
(c) Funeral establishments that sold two hundred fifty or more prearranged funeral agreements funded by trust during the immediately preceding calendar year.
Bond amount requirements established by the department shall be at least $15,000 but not more than $50,000 for each funeral establishment.
5. Provides the full name and address of the funeral director designated by the funeral establishment to offer or sell prearranged funerals and all of the following:
(a) A recent photograph of the designated funeral director.
(b) Any prior names or aliases used by the designated funeral director.
(c) All prior addresses of the designated funeral director for the immediately preceding seven-year period.
(d) The date and location of the designated funeral director’s birth.
(e) A declaration from the designated funeral director that the funeral director has not been convicted of any felony or convicted of any other crime involving dishonesty, fraud, deception, misrepresentation, embezzlement or breach of fiduciary duty in any state or federal court within the seven-year period immediately preceding the date of application.
(f) A declaration from the designated funeral director that the funeral director has not been the subject of a consumer fraud, securities fraud or civil racketeering judgment or consent order in any state or federal court within the seven-year period immediately preceding the date of application.
6. Provides information about existing prearranged funeral agreements funded by trust of the funeral establishment required by the department.
B. A prearranged funeral sales endorsement shall be renewed annually by the funeral establishment by payment of the prescribed renewal fee pursuant to section 32-1309 and by compliance with the requirements described in subsection A, paragraphs 2, 3 and 4 of this section on or before July 31.
C. Failure to pay the renewal fee by July 31 voids the endorsement. An endorsement voided under this subsection may be reinstated on compliance with subsection B of this section and payment of the prescribed reinstatement fee.