REGULAR BOARD MEETING

MINUTES

June 13, 2001

The North Carolina Board of Mortuary Science met for a duly scheduled Board Meeting on June 13, 2001, at 10:00 a.m. in the Board’s office located at 2321 Crabtree Boulevard, Raleigh, North Carolina.

Present: Nancy Rorie, President; Paul Harris, Vice President, Harvey Leavitt, Secretary; Elliott Futrell; Stuart Cozort; Darryl Hart, Michael McGhee and Julia Jordan.

Also Present: Andrew L. Ritter, Executive Director; Mark E. Henderson, General Counsel; and Jack Nichols, Allen & Pinnix.

Others Present: Patricia Hayes

President Nancy Rorie called the meeting to order.

Julia Jordan gave the invocation.

Ms. Rorie then recognized the North Carolina Funeral Directors Association and the plaque that had been presented to her on behalf of the Board at the Association’s Annual Convention. The plaque commemorates the Board’s 100 years of service to the public.

President Rorie read the Board of Ethics statement, Governor Easley’s Executive Order #1. No one recused themselves at this time.

Mr. Leavitt then asked the Members to read the minutes from the May 9, 2001, meeting. Mr. Cozort had two minor corrections to make: To change the wording under the Crematory Report from “to defer acceptance” to “defer the vote on acceptance” and to update the language under the New Business regarding the Board of Ethics letter. Mr. McGhee made the motion and Mr. Harris seconded. Motion carried.

Ms. Rorie called for Committee Reports.

Finance: Mr. Cozort discussed the Legal Expenses on the Consolidated Income Statement. The changes on Salary/Benefits expense will change the Legal Expenses next month with the addition of Mr. Henderson on staff. Mr. Ritter commented on the recent annual audit by Boyce, Furr & Company. Mr. Harris made the motion to accept the financial report and Ms. Jordan seconded. The motion carried.

Preneed: Mr. Harris stated the Preneed Committee had met prior to the Board meeting and had three items for consideration.

The Preneed Committee would be referring to Disciplinary Committee a file regarding a licensee that is modifying the preneed contracts to keep them from being transferred to other funeral homes. An attorney has written the Board requesting a clarification regarding who can sell preneed. After discussion, Mr. Harris made the motion to reaffirm the Board’s policy and to refer the attorney to 21 NCAC 34D.0202 regarding the Preneed Sales License. Mr. Hart seconded and the motion carried. The last item was in regards to the policy decision at the May 9, 2001 Board meeting regarding the insurance company that had converted from a mutual company to a stock company and was issuing dividend checks to the funeral homes involved. A funeral home had received an $850 check and had asked the Board how to handle this check. The Committee was recommending that the funeral home give the check to the consumer. Discussion ensued. A motion was made by Mr. Harris to advise Sossoman Funeral Home, Morganton, North Carolina, to return the money to the consumer. Mr. Cozort seconded and the motion carried. Mr. McGhee made a motion that if the same situation presents itself to Board staff, to use this motion as policy. Mr. Hart seconded and the motion carried.

Disciplinary: Mr. McGhee presented the report for review. After some discussion, Mr. Cozort made the motion to accept the report and Ms. Jordan seconded. Ms. Rorie called for the vote and the motion passed.

Mr. Henderson had one additional disciplinary matter regarding complaints the office had received concerning advertisements running in the American Legion Magazine by “WhiteLight.” Since “WhiteLight” is not a licensee of North Carolina, Mr. Henderson was bringing this up in open session and then it would be discussed in closed session. This company is advertising preneed sales so they are in violation of several statutes. His was recommending a letter be sent to the Advertising Manager of the American Legion Magazine and this matter be referred to the District Attorney in Cumberland County in accordance with the statute. Discussion ensued. Mr. Leavitt made the motion to accept the recommendation. Ms. Jordan seconded. Motion carried.

Mr. McGhee made the motion to go into closed session to discuss Disciplinary matters.

Upon proper motion, the Board returned to open session.

Laws & Rules: Mr. Leavitt deferred the meeting to Mr. Ritter to discuss HB440. Mr. Ritter reported the bill had gone to Commerce Committee and had a favorable review and unanimous vote. It would be going to Finance today and if it passed there, it would be referred to Senate.

Executive Director’s Report: Mr. Ritter, Ms. Rorie and Mr. Henderson had attended the North Carolina Funeral Directors Association 2001 Annual Convention in Wilmington on June 5 – 7. They manned the Board booth at the Convention Exhibits. Mr. Futrell had joined them on June 6. Ms. Rorie had given the Board report on June 6 at which time the plaque had been presented to her. Patricia Hayes with the NCFDA reported that there were 500 in attendance including the 200 exhibitors. Three petitions have been received for the upcoming Board election—In Category I Beacham McDougald has filed and in Category II Dorman Caudle and Seth Martin have filed. Ms. Rorie asked Mr. Ritter to start including total preneed contracts with his report. Hunter Funeral Home, Ahoskie, had repaid money due to the Recovery Fund in the amount of $6491.48. Legal fees had been incurred in the amount of $2596.48. The difference should be paid to the Recovery Fund and the balance credited to Legal Fees in accordance with the Statute. Mr. Cozort made the motion and Mr. Leavitt seconded. Motion carried. The Open Meeting for the Crematory statute will be at the McKimmon Center on August 15^th at 1:00 after the Board Meeting. Mr. Henderson has taken on all legal aspects of the Board since May 21. The three-inspector program is now in place and Corrine Culbreth is in charge of these field persons.

Attorney’s Report: The Board had adopted his recommendations with regards to “WhiteLight” and the letter would be going out this week.

Unfinished Business: Mr. Harris suggested the funeral section of the manual developed by the Governor’s Crime Commission Child Maltreatment Fatality committee be made available to licensees either on the Board’s website or by mail. Mr. Ritter will get it on the website.

Mr. Harris made the motion to go into closed session to further deliberate the case of the Board vs. R. L. Sanders Funeral Home, Hugh Sanders and Demetrice Brewington. Mr. Cozort and Ms. Rorie recused themselves since they were on the Disciplinary Committee and Ms. Jordan recused herself since she was not at the May 9, 2001, meeting.

Upon proper motion, the Board returned to open session. Mr. Harris made the motion that the Board revoke the funeral service license of Hugh Sanders until the time he can show fitness; suspend the license of Demetrice Brewing for 30 days and refer the matter to the notary office at the North Carolina Secretary of State and put the R. L. Sanders Funeral Home on probation for five years. Mr. Hart seconded and the motion carried.

Ms. Jordan did not vote since she was not privy to the information from the May 9, 2001 Board meeting.

Notice of this action will be mailed to the newspaper in the city where the funeral home is located.

The Board indicated they would provide Allen & Pinnix with detailed findings of fact and conclusions of law so that Allen & Pinnix could prepare the Board’s decision for signatures.

New Business: Mr. Ritter congratulated Ms. Rorie on being presented last month by Senator Plyler the Charles L. Hunley Dedication Award for outstanding work on local, district and regional matters.

Mr. McGhee expressed sincere sympathy on behalf of the Board to Ms. Rorie in the loss of her brother.

There being no further business, the meeting adjourned.

Nancy G.Rorie, President

Harvey Leavitt, Secretary