OFFICE OF CEMETERY OVERSIGHT
ADVISORY COUNCIL ON CEMETERY OPERATIONS
MINUTES
DATE: June 25, 2009
TIME: 10:10 a.m. – 1:10 p.m.
PLACE: Department of Labor, Licensing and Regulation, 500 N. Calvert Street 2nd Floor Conference Room Baltimore, Maryland 21202,
MEMBERS PRESENT:
David Goodman, Chair
Jay Cherry
Richard Cody
Susan Cohen
Frank Porter
Harriet Suskin
Walter Tegeler
David Zinner
MEMBERS ABSENT:
Erich March
Sarah Rex
STAFF PRESENT:
Benjamin Foster, Director
Patricia Tress, Investigator
Leila Whitley, Administrative Aide
Paulette Wirsching, Assistant Attorney General
Stanley Botts, Commissioner, DLLR-Occupational and Professional Licensing
Shannon Davis, Outreach Coordinator
GUESTS:
Hari Close, President, Maryland State Board of Morticians & Funeral Directors
Laurie Sheffield-James, Executive Director, Maryland State Board of Morticians & Funeral Directors
CALL TO ORDER:
Chair Goodman called the meeting to order at 10:10 a.m.
MINUTES:
By motion made by Mr. Zinner and seconded by Mr. Tegeler, the Minutes of the May 28, 2009 meeting were accepted with changes.
ANNOUNCEMENTS:
Chair Goodman asked if anyone attended Mr. March’s wedding. Ms. Suskin along with her husband and Ms. Whitley along with her family attended the wedding.
Chair Goodman stated there are two individuals from the Morticians’ Board in attendance at the Council’s meeting. Ms. Sheffield-James, Executive Director of the Morticians’ Board and Mr. Hari P. Close, President of the Morticians’ Board.
GUEST REMARKS:
Mr. Close provided a little background about himself. He has been in the industry for quite some time. Mr. Close spoke about the importance of the Morticians’ Board and the Office of Cemetery Oversight working together to develop oversight for cremation. He stated that “we can disagree and not be disagreeable.” He stated that we are all colleagues and that we simply represent different segments of the same industry. He spoke about how we can’t correct what happened yesterday, but we can work together and look at things from a different perspective. He said that now is the time to put territorial issues behind, that we can no longer be territorial and extended an invitation saying, “let’s go to Annapolis together.” Mr. Close then spoke about crematories needing to be regulated and appealed for compromise
Ms. Sheffield-James stated Mr. Foster has been to every Mortician’s Board meeting since he (Mr. Foster) came onboard with the Office of Cemetery Oversight (OCO). In reference to the proposed cremation bill Mr. Close stated “cremation” is a final disposition. Ms. Sheffield-James stated the Morticians’ control crematories in funeral homes, OCO would be controlling crematories in cemeteries. It has not been decided yet which office would control the freestanding crematories. . Several Advisory Council members thanked them both for attending the meeting and liking their attitudes in reference to the two offices working together, appreciating their openness, message of cooperation and for extending an olive branch,. Mr. Close concluded by stating there should be a single statute the two offices should use to regulate cremations. Mr. Porter stated the OCO has always extended a welcome to the Morticians and this is an opportunity now for the two offices “to go through the door together.”
DRAFT CREMATION LANGUAGE:
Ms. Wirsching briefly commented on revising HB 326 (2002 Bifurcated Bill). She reported that she took out the part on “final disposition”. A question arose about who would regulate the free standing-crematories. Ms. Wirsching stated under the draft bill, the OCO would be regulating them. Ms. Wirsching also commented on the joint brochure needing to be updated and including cremation.
Ms. Cohen wanted to know about preneed trust funds being required. Mr. Close said they are required, up to $1,000,000.00 in the guarantee fund. Mr. Close stated the Morticians Board Trust Fund Committee consists of three board members-one from each trade and one consumer. Mr. Close also stated once the cremation bill is passed, consumers would see the two offices working together. Mr. Zinner asked if Mr. Close could see the two offices, having a joint meeting after the cremation bill is passed. Mr. Close stated he has no problem with that.
There was a question about when the summer study committee would be meeting to review proposals for cremation legislation. Apparently due to challenges around scheduling this has been moved to some time in early fall.
SALES PRACTICE ISSUE:
Ms. Tress spoke briefly about a licensee recently putting on a contract that there was a “mandatory state fee”. The licensee was advised on two separate occasions that they cannot state this on their contracts. The fee is to be paid by the licensee, but can be passed on to the consumer through administrative charges. Ms. Suskin stated that, “maybe there needs to be training for licensees.” Ms. Suskin went to a cemetery and requested a price list (it is required by state law) but the counselor looked at her as if to say he didn’t know anything about a price list.
Ms. Tress is in the process of revising the current inspection checklist. The original form was designed several years ago, and Ms. Tress feels the form needs to be updated. Several Advisory Council members were asking about training classes for counselors (annually). Ms. Wirsching stated there could be training classes set up for the counselors, but OCO cannot require the counselors to attend. A statement was made by an Advisory Council member that there may be fear of counselors leaving one cemetery (company) to go to another if all counselors were invited to attend a training class. Ms. Tress said that maybe different training classes could be set up at different times for different cemeteries (companies).
Mr. Foster opined that instead of continuing education being required, all the information needed to get to counselors could be put on a CD (compact disc) and sent out to each cemetery. All counselors would then have to attest whether they actually watched the CD. Ms. Wirsching commented counselors agree by signing the application form to comply with the law and regulations.
PERPETUAL CARE TRUST ACCOUNTS:
Chair Goodman took the Advisory Council members and staff through a review of part I of a three part article written by Hayden Burrus (Principal Actuary of HB Actuarial Services in Delray Beach, Florida) on Perpetual Care. Part I was entitled, “How to Put Aside Enough Now To Cover Cemetery Costs Later”. Using power point slides, Chair Goodman highlighted some of the ideas and concepts featured in the article that related to the Council’s examination of current Perpetual Care statutes and regulations. Mr. Cody stated some cemeteries do not pay taxes on gains from Perpetual care Funds and related how this posed an unfair economic advantage to for-profit cemeteries that were obligated to pay these taxes.
Mr. Zinner spoke about the idea of cemeteries needing to do an analysis to see if their perpetual care trust accounts have enough money to cover future costs. Mr. Foster stated he is looking at trust reports to see how much money they are putting away for the upkeep of the cemetery based on sales. Ms. Wirsching stated it should be 10% on the burial space only – the second right of interment does not pay the 10%. Chair Goodman shared that Richard Fishman who is Director of the New York State Cemetery Board spoke about the concept of cemeteries in New York following a formula involving setting aside at least $300,000 per acre into perpetual care trust accounts to insure adequate funds would be available for future need.
There was discussion on how many burials are there in a year in the state of Maryland. . Mr. Cherry spoke about there being a $2,000 cost difference between crematories and questioned what impact cremation will have on Perpetual Care. Chair Goodman stated that the percentage of consumers choosing cremation is increasing significantly as opposed to choosing traditional burial in the state of Maryland. Mr. Zinner suggested trying to find a cemetery that has actually done an analysis of their perpetual care and have them share it with the Advisory Council.
DIRECTOR’S REPORT:
Mr. Foster stated he has been favorably received at all of the Morticians’ Board meetings.
INVESTIGATOR’S REPORT:
Ms. Tress stated she has received a complaint against an historic Eastern Shore cemetery. The cemetery is not currently licensed, but an application and accompanying documents were given to the President of the cemetery association and the cemetery will be licensed in the near future. The complaint involved a maintenance issue. The cemetery association has limited funds, but has undertaken fund-raising efforts and utilizes various civic groups to help with the maintenance and general upkeep of the cemetery. The cemetery is limited to what they can do to remove the weeds in that the cemetery cannot use weed killer because it is close to a river. Inmates from the local detention center have also been used for cutting the grass, removing weeds and other general duties.
One of the Advisory Council members brought up a question concerning trust agreements. Ms. Tress stated the Office is closely reviewing trust reports. The Office will take whatever action is deemed necessary against cemeteries whose trust accounts are underfunded or are not funding in accordance with Maryland law.
Ms. Tress briefly spoke about Larry Deffenbaugh, the former owner of Southern Memorial Gardens. Several days before his violation of probation hearing, Mr. Deffenbaugh was reported missing off the coast of Virginia. It is suspected he faked his own death. Ms. Tress received a phone call from America’s Most Wanted concerning Mr. Deffenbaugh’s disappearance.
Mr. Porter asked is there any mechanism that can be used when a cemetery does not renew. Ms. Wirsching stated OCO could issue a cease and desist order or seek an injunction.
NEW BUSINESS:
Mr. Goodman stated the next meeting would be held on July 23, 2009. Ms. Suskin will be providing refreshments. Mr. Goodman is scheduled to attend the July Morticians’ meeting on behalf of OCO and Mr. Zinner is scheduled for the August meeting.
ADJOURNMENT:
A motion to adjourn the meeting made by Mr. Porter, and was seconded by Mr. Zinner. The meeting adjourned at 1:10 p.m.
Approved:
_____With corrections
_____Without corrections
______
(Signature of Chairman) (Date)
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