REGULAR BOARD MEETING

MINUTES

May 15, 2002

The North Carolina Board of Mortuary Science met for a duly scheduled Board Meeting on May 15, 2002 at 1:00 p.m. in the Bellamy Room at the Hilton Wilmington Riverside, 301 North Water Street, Wilmington, North Carolina.

Present: Paul Harris, President; Harvey Leavitt, Vice President; Alex Lee, Secretary; Stuart Cozort, Darryl Hart, Jack Briggs, Nancy Rorie, Windell Daniels and Bill Groce.

Also Present: Mark E. Henderson, Executive Director; Barry Bloch, General Counsel.

Others Present: Patricia Hayes; Dan Shackleford; William Joyner; Wayne Gaskin; Cameron Shearon; Dean Wilkerson; Tina Hargett; Jody Tyson; and Donnie Beck.

President Paul Harris called the meeting to order and read the Board of Ethics statement, Governor Easley’s Executive Order #1. No one recused themselves at this time.

Darryl Hart gave the invocation.

Mr. Lee submitted the March minutes for approval. Mr. Daniels made the motion to accept the minutes as submitted and Mr. Leavitt seconded the motion. The motion carried.

At this time the Board prepared to enter into deliberations in the case of the North Carolina Board of Mortuary Science vs. Hargett Funeral Home (Greensboro) and Hargett Funeral Services of High Point, Inc. Since Ms. Hargett was not present at the March hearing, she was now being permitted to make a statement and enter evidence at this time.

Mr. Leavitt made the motion to delay deliberation of NCBMS v. Hargett Funeral Home until later in the meeting. Mr. Lee seconded the motion. Mr. Harris called for the vote and the motion failed. At 1:22 p.m. Ms. Rorie made the motion to go into closed session to deliberate the appropriate disciplinary actions, if any, to be taken against the licensees. Mr. Hart seconded the motion and the motion carried. Mr. Lee and Mr. Cozort were recused from participation in the deliberation due to their participation in the consideration of this matter as members of the Disciplinary Committee.

Upon proper motion the meeting returned to open session at 2:15 p.m. Mr. Leavitt made the motion that Hargett Funeral Home (Greensboro) and Hargett Funeral Services of High Point, Inc., 1. Have their preneed licenses revoked for both locations; 2. Surrender all preneed contracts for both locations; 3. The Board will allow respondents to reapply for their preneed licenses upon demonstration they meet all criteria. Mr. Daniels seconded the motion. Discussion ensured. Mr. Harris called for the vote and the motion passed. Mr. Bloch asked President Harris whether his Proposed Findings of Fact, Conclusions of Law and Sanctions were accepted. President Harris stated that they were accepted.

Attorney’s Report: Mr. Bloch reported that the status of the cases pending was provided to the Board for their review under Tab 3 and he was available for questions.

President Harris then went to the Board’s New Business regarding the proposed changes to the statutes. Three persons had requested permission to appear and make comments regarding these changes: Cameron Shearon, First Citizens Bank, made comments regarding the proposal to no longer allow the 10% retention and the benefits of leaving this on the preneed contract; Wayne Gaskin, funeral licensee, made comments regarding the proposal to add Section 90-210.25(a2), which would require licensees to own, be employed by or be an agent of a funeral establishment. He gave the Board a book with signatures on a petition to reconsider the language in this section; and Dean Wilkerson, funeral licensee, made comments regarding the proposal to no longer allow withholding up to 10% on preneed contracts. President Harris thanked Mr. Shearon, Mr. Gaskin and Mr. Wilkerson for their comments.

President Harris then asked Mr. Henderson to continue with the review of the proposed changes to the statutes. The Board discussed various aspects of the proposed statutes. The Board agreed on several amendments to the proposed statutes.

Mr. Henderson indicated he would have these changes reflected in the proposed statutes and posted on the website as quickly as possible.

At this time President Harris called for Committee Reports.

Finance: Mr. Cozort presented the Financials for March and April 2002. Mr. Cozort stated he was available for any questions. Mr. Henderson made comments regarding the QuickBooks program. Discussion ensured. A motion was made by Mr. Daniels and seconded by Ms. Rorie to accept the report. Motion carried.

Disciplinary: Mr. Lee stated the Committee had met the previous day and was recommending acceptance of all cases as submitted by the Committee. Mr. Groce seconded and the motion carried.

Personnel: Mr. Groce submitted letters from the three insurance carriers: The disability insurance will increase insignificantly; the dental insurance will increase insignificantly; and the health insurance will increase substantially. The Committee was recommending the change of the health insurance plan only from Choice Plus 250 to Choice Plus 500. The plan was the same except the co-pay and per hospital visit amounts would increase. Mr. Daniels made the motion to accept the recommendation and Mr. Hart seconded. The motion carried.

Preneed: Mr. Briggs stated there were no items for discussion this month and submitted the Preneed Report. Ms. Rorie made the motion to accept the report. Mr. Lee seconded and the motion carried.

Executive Director’s Report: Mr. Henderson stated the draft of the Preneed Manual would be presented to the Preneed Committee by the June meeting. Homesteaders Insurance and Forethought Insurance had responded to his request to submit comments on the drafts of the preneed contracts and he had spoken conversations with both companies. A public hearing should probably be scheduled in conjunction with the August Board meeting.

Mr. Henderson reported he had changed the contents of the Preneed Contract Verification letter so that it includes a question concerning when the consumer gave money to the licensee. This should better enable the Board to ensure preneed money is being deposited within five days as required by the statute.

Mr. Henderson stated he had responded to several surveys and form letters from the State of North Carolina requesting information regarding our computer system, health insurance, annual auditing, and telephone equipment. Mr. Henderson also had submitted an annual report to the General Assembly as required by Chapter 90-210.70(d) of the statutes. Mr. Henderson also reported that an additional requirement was recently imposed on rule changes that increase fees.

Mr. Henderson stated the Board’s Training Program was approved by the N. C. Department of Labor.

Mr. Henderson noted that the CLEAR Conference in Las Vegas would be held on September 12-14. The Board’s next CE class will be December 10^th and the President’s Christmas Dinner will be that same night, December 10 at 6:30. The Board meeting will be the next day, December 11.

New Business: Mr. Henderson stated the judge in the Crown Memorial Case had not issued a final decision; however, the Judge had issued a preliminary decision indicating that he believed Crown Memorial was violating the law with regard to practicing funeral services, but that the preneed statute was unconstitutional to the extent it limits the pool of eligible preneed licensees by only allowing funeral establishments to obtain a preneed license. Mr. Henderson stated the Board had the option of requesting a study commission, which would be asked to address the issue of consumer protection in the purchase of funeral goods from a funeral establishment and the purchase of cemetery merchandise from a cemetery. Mr. Daniels made the motion to request a study commission and Ms. Rorie seconded. The motion carried.

Mr. Henderson stated the annual Mutual Burial Association assessment amount was recommended at $100.00 per association and $.35 per member. Although this would raise less revenue than was budgeted, the Board should not raise these assessments at this time. Mr. Cozort made the motion to accept these amounts. Mr. Lee seconded and the motion carried.

There being no further business, the meeting adjourned at 5:20 p.m.

Paul Harris, President

Alex Lee, Secretary