REGULAR BOARD MEETING

MINUTES

July 14, 2004

The North Carolina Board of Funeral Service met for a duly scheduled Board Meeting on July 14, 2004, in the Board’s office located at 1033 Wade Avenue, Raleigh, North Carolina.

Present: Alex Lee, President; Jack Briggs, Vice President; Jamie Boles, Secretary; George Parrott, Rudy Lea, Jerry W. Hawks, Jeanette Sherrod, Windell Daniels and Harvey Leavitt.

Also Present: Paul Harris, Executive Director; Stephen N. Dirksen, General Counsel; Bill Joyner, Dan Shackleford and Lyn Cochrane.

President Alex Lee called the meeting to order at 9:20 a.m.

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

Mr. Hawks gave the invocation.

Mr. Lee opened the floor to receive public comment and there was none.

At this time Mr. Lee convened the Public Hearing on the proposed rule changes to 21 NCAC 34.B Funeral Service and 21 NCAC 34 Preneed Funeral Contracts. No one offered comments regarding the rule changes. Mr. Harris stated no correspondence had been received regarding these changes but written comments would be accepted until August 16, 2004. Mr. Lee closed the Public Hearing.

Mr. Boles stated the minutes for the May 17, 2004 meeting had been previously mailed. Mr. Hawks made the motion to accept the minutes as presented and Mr. Lea seconded. The motion carried.

Mr. Briggs stated he would like to make a comment under the public comment section. Mr. Lee agreed. Mr. Briggs informed the Board of the death and burial of the North Carolina Funeral Directors Association representative, Patricia Hayes’ mother. Ms. Hayes was not in attendance due to that death.

Disciplinary: Mr. Parrott presented the Disciplinary Committee report. Discussion ensued. Mr. Boles recused himself from the vote. Mr. Hawks made the motion to accept the report as submitted with the addendum. Mr. Lea seconded and the motion carried.

Finance: Mr. Daniels presented the finance report for May and June 2004. Mr. Harris discussed the changes on the Balance Sheet and Profit and Loss sheet due to the completion of the audit. Mr. Daniels made the motion to accept the report and Mr. Parrott seconded. The motion carried.

Preneed: Mr. Leavitt presented the Preneed Report. Two items were presented for discussion and vote. Mr. Hawks made the motion to accept as Board policy that when a funeral home loses its preneed license, the Board immediately take possession of the preneed records after the thirty-day appeal period expires. Mr. Daniels seconded and the motion carried. Mr. Briggs made the motion to accept as Board policy a set rate of 1% interest on viable Recovery Fund applications to be reviewed annually by the Board in January of each year. Mr. Daniels seconded the motion. Mr. Parrott, Ms. Sherrod, Mr. Hawks, Mr. Boles, Mr. Briggs, Mr. Lea, and Mr. Leavitt voted yes. Mr. Parrott voted no. The motion carried. Mr. Hawks made the motion to accept the Preneed Report as submitted. Mr. Lea seconded and the motion carried.

The Board recessed at 10:15 a.m. and reconvened at 10:30 a.m.

Attorney’s Report: Mr. Dirksen reported that the status of cases pending was provided to the Board for their review and responded to questions. Mr. Boles made the motion to accept the report. Mr. Hawks seconded and the motion carried.

Executive Director’s Report: The annual financial report and report of licensing activities will be mailed to the Office of the Attorney General and Office of the Secretary of State. The property tax issue has not been resolved but a letter will be mailed to the Attorney General’s office before the September meeting. The Executive Director of the Virginia Board of Funeral Directors and Embalmers, Ms. Elizabeth Young, has not yet responded in writing regarding the continuing education issue but has verbally agreed to accept North Carolina’s CE. The new Board member handbooks are being compiled. Twenty-two people attended the June 22 Preneed Review in Raleigh. The next review is July 21 in Hickory and then in Greenville on August 18. Mr. Lee and Mr. Harris will meet with the Board auditor, Ms. Bobbie Furr, to review the audit and this will be reported at the September Board meeting. Mr. Harris requested deferral of discussion of the ICFSEB meal receipt until later in the meeting. The Legislature will study budget procedures of occupational licensing boards.

Discussion regarding the effects of HB859 ensued. Mr. Harris asked Mr. Lee to appoint a committee to review and develop a new Laws and Rules exam. A staff retreat to review renewal procedures will be held at the Board’s office prior to the renewal period. Mr. Harris and Elizabeth Stegall will meet with several trainees and their supervisors to discuss their training program. Mr. Harris asked Mr. Dirksen to explain the use of a summary suspension order to the Board. Mr. Hawks made the motion to accept the Executive Director’s Report with the exception of the deferred items. Mr. Lea seconded and the motion carried.

New Business: The deductible on the new health insurance plan for the Board staff has been increased to $500 for major medical. Mr. Harris requested approval to pursue a deductible reimbursement plan to reimburse any staff member for this amount. A motion was made by Mr. Hawks and seconded by Mr. Daniels. The motion carried.

Old Business: The Rules Review Commission has objected to the proposed changes in Rules that specify forms. The Commission views these as unnecessary. Mr. Briggs made the motion to allow Mr. Dirksen to act on behalf of the Board with regards to the rules change. Mr. Leavitt seconded and the motion carried.

The Board recessed at 11:25 a.m. and reconvened at 11:30 a.m.

Mr. Harris presented a meal receipt for the St. Louis ICFSEB Conference for approval. Mr. Briggs made the motion to approve payment by the Board for this dinner. Mr. Boles seconded and the motion carried.

Mr. Lee appointed Mr. Leavitt, Mr. Hawks and Mr. Parrott to the committee to review and develop a new Laws & Rules exam.

At this time Mr. Daniels made the motion to go into closed session to establish the Board’s position, or instruct staff or agents on the Board’s position on compensation and other material terms of an employment contract. Mr. Parrott seconded and the motion carried.

Upon proper motion, the Board returned to open session. Mr. Hawks made the motion to approve Mr. Harris for his six-month evaluation and allot him the increase that was agreed upon six months ago. Mr. Daniels seconded and the motion carried.

Mr. Lee expressed concern regarding a casket store accepting preneed funds and asked that an examiner look into this.

Informational Items: Mr. Harris submitted several articles for review and informational purposes only.

Mr. Lee opened the floor to receive public comment. Mr. Shackleford suggested the preneed license application require more detailed solvency information.

There being no further business, Mr. Lee adjourned the meeting at 12:16 p.m. for lunch.

The North Carolina Board of Funeral Service reconvened for a duly scheduled Board Hearing on July 14, 2004, at 1:00 p.m. in the Board’s office located at 1033 Wade Avenue, Suite 108, Raleigh, North Carolina. Jack Briggs, Vice President, presiding.

Members also present: Jamie Boles, Jerry Hawks, Rudy Lea, Jeanette Sherrod and Harvey Leavitt. George Parrott and Alex Lee recused themselves from participating since they were on the Disciplinary Committee.

Also Present: Paul Harris, Executive Director; Stephen N. Dirksen, General Counsel

The Board conducted a hearing in the matter of NCBMS vs. Congleton Funeral Home. Mr. Dirksen stated the defendant had requested a continuance until the next Board meeting. Discussion ensued. Mr. Leavitt made the motion to grant continuance and Mr. Hawks seconded. The motion carried.

The hearing was adjourned at 1:05 p.m.

P. Alex Lee, President

James L. Boles, Jr., Secretary