REGULAR BOARD MEETING

MINUTES

March 8, 2006

The North Carolina Board of Funeral Service met for a duly scheduled Board Meeting on March 8, 2006, at the Board’s office located at 1033 Wade Avenue, Raleigh, North Carolina.

Present: Jack Briggs, President; T. E. White, Sr., Vice President; Mark Blake, Secretary; Jody Tyson, William Manson, Rudy Lea, Windell Daniels, Larry Andrews and George Parrott.

Also Present: Paul Harris, Executive Director; Stephen N. Dirksen, General Counsel; Patricia Hayes, Fred Jordan, Jack Nichols, Susan Cox and Lyn Cochrane.

Mr. Briggs called the meeting to order at 9:05 a.m. and gave the invocation.

Mr. Briggs opened the floor for public comment. Fred Jordan with the N. C. Eye Bank invited the Board members and staff to the North Carolina Eye Bank’s Donor Memorial Service on March 25 or March 26, 2006.

Mr. Briggs read Governor Easley’s Executive Order #1 and no one recused themselves at this time.

Mr. Blake stated the minutes for the February meeting had been previously mailed to the Board and there was one correction. Jodie Tyson’s name should be corrected to read Jody. Mr. Andrews made the motion to approve the minutes as corrected and Mr. Daniels seconded. The motion carried.

At this time Mr. Briggs yielded the floor to Mr. Nichols with Allen and Pinnix. Mr. Blake made the motion to go into closed session to discuss a matter of attorney client privilege. Mr. Manson seconded and the motion carried.

Upon proper motion, the Board returned to open session. Mr. Daniels made the motion to authorize Mr. Nichols to file the motion to show cause notice regarding the Gilmore matter. Mr. Tyson seconded and the motion carried. At this time Mr. Nichols departed the meeting.

CE Committee: Mr. Manson stated the Committee had met prior to the Board Meeting. One item of discussion was an insurance-funded contract and Mr. Harris will address this later in the meeting. The CE Committee was also recommending approval of the International Cemetery and Funeral Association Annual Convention & Exposition March 13-16, 2006 in Las Vegas, Nevada.

The Batesville Mobile Education Unit is currently at the Wingate Inn at Research Triangle Park. Mr. Harris is planning to view the unit, Mr. Manson later next week and Mr. Andrews has already viewed. They have applied for continuing education approval and a decision to approve or disapprove will be made later in the meeting. Mr. White stated all items are Batesville items but the education concept of the unit is quite educational.

Disciplinary Committee: In Mr. Parrott presented the Disciplinary Committee Report. Questions and discussion ensued regarding several matters. Mr. Blake made the motion to accept the Disciplinary committee report and Mr. Andrews seconded. The motion carried.

Finance and Personnel: Mr. Daniels presented the February financials. Mr. Daniels called attention to account 5055 Computer. The amount budgeted was not enough to purchaser the new server. Mr. Daniels deferred the meeting to Mr. Harris who explained why additional funds were needed for the server. Mr. Harris has received several bank proposals for the Board’s mortgage and banking needs. This information will be presented at the April meeting. Mr. Daniels made the motion to amend the budget to approve the additional $3500 for the computer purchase. Mr. Tyson seconded the motion. Discussion ensued regarding a “contingency fund” for the 2007 budget. Mr. Briggs called for the vote and the motion carried.

Preneed Report: Mr. Andrews stated the Preneed Committee had met on Tuesday and discussed the wording on the Forethought insurance funded preneed contract. Board staff had found contracts on this form dating back to December 2004. The committee was recommending denial of the form because it had not been submitted to the Board for approval by a licensee. Mr. White made the motion to accept the recommendation of the Preneed Committee. Mr. Daniels seconded. Discussion ensued. Staff is to send a letter advising licensees to cease using the form. Mr. Parrott made an amendment to the motion to have Mr. Harris state in his letter that the form will not be accepted after March 20. Mr. White accepted the amendment to his motion. Mr. Briggs called for the vote and the motion carried.

Mr. Andrews wanted to thank the inspector’s and commended on the fine job they were doing with the examinations.

Mr. Blake asked Mr. Harris to write a letter to Forethought informing them that all Board preneed contract forms must be approved prior to use.

Mr. Tyson asked Mr. Harris to word his letter to the funeral homes involved with the contract not as a threat but as an explanation regarding the “forms” problem.

Examination Report: Mr. Blake stated seven applicants took the last Board pathology exam and six failed. Mr. Blake and Mr. Harris had met on February 16 by teleconference with Dr. Klapper, Mike Landon and Dalene Paul to review the pathology test and receive suggestions regarding the exam. Mr. Blake and Mr. Harris will meet with the Exam Committee after the Board meeting to discuss the conversation. A complete report will be given at the April meeting.

Traineeship Report: There was none.

At this time Mr. Briggs called for a recess. The Board reconvened at 11:00 at which time Susan Cox, Board Inspector, entered the meeting.

Attorney’s Report: Mr. Dirksen reported that the status of cases pending was provided to the Board for their review. Mr. Briggs thanked Mr. Dirksen on behalf of the Board for his hard work during Tuesday hearing.

Executive Director’s Report: Mr. Harris stated the individual Inspector Reports were submitted for review. Twenty-two reports have been filed since February 8. One funeral home was cited for FTC issues (prices), incorrect ownership structure, and condition of preparation room.

The following establishment changes were made: Gilmore Mortuary & Funeral Service, Inc., Lexington—ownership and name change; Ridge funeral Home and Cremation Service, LLC, Asheboro—ownership change; Robinson Funeral Home, Clinton—closed; Colonial Funeral Home Stokes Chapel, Sandy Ridge—new funeral home.

415 inspection reports included: 306 preneed, 31 crematories, 9 chapels and the balance were new establishments, new crematories and reinspections.

Mr. Harris introduced and turned the meeting over to Ms. Cox for her report to the Board. Ms. Cox answered questions and thanked the Board for their support of the Inspectors. She then departed the meeting.

Since February 8, 2006, funeral service licenses have been issued to Cynthia Ann Bradley, Mia M. Giniunans, Matthew F. Howe, Natasha Kabar, Tyson Eugene Nixon, Janelle R. Paten and Brian Tew. Christopher Howard Noe has converted his funeral director license to a funeral service license. Trainees registered since February 8, 2006, include Jeffery Braley, Shirley Davis, Demetrice Nixon, Mark Rosen, William Oran-Joaquin Lum-Sandlin, Dan Smith, Jr., and John Spruill, Jr.

Currently, there are eighty-six mutual burial associations in operation. Annual Reports were due February 15, 2006, nine requested extensions and two are late without requesting extensions. These two are being fined $25 per day. There are 74,974 members with a total of $5,379,118.59 in assets.

Mr. Harris submitted a letter from Rules Review regarding the Crematory statute but no further action was required by the Board.

The Condo Association was still researching the property line at the back parking lot of the building.

A preneed review is being planned for late April. A cash advance computation will be added to the website for funeral homes to use in computing the cash advance amounts on preneed contracts.

A Board retreat/seminar to be held in Wilmington in May is being researched. The CE Committee will make a decision and information will be included in the next newsletter, which go out in April.

New Business: Mr. Harris recommended the Mutual Burial Associations be assessed $100 per association and $.35 per member, which is the same as 2005. Mr. Tyson made the motion to accept these amounts and Mr. Andrews seconded. The motion carried.

Since the closing of Robinson Funeral Home in Clinton, the Lawson Mutual Burial Association members had been unable to pay their dues. A notice had been placed in the local newspaper regarding the funeral home closing and 95% of the telephone calls the Board had received were regarding the MBA. The Board can dissolve the Association, or the MBA can ask for authority to dissolve the MBA or the funds can be transferred to another MBA. Mr. Harris recommended another newspaper notice be run notifying the members of a special meeting to discuss the Association. Mr. Lloyd Davis would be in charge of the meeting. Discussion ensued.

Old Business: The transport company that had comments regarding their casketing and dressing a body at the February meeting was unable to attend the March meeting but will be available at the April Board meeting.

Mr. Tyson stated he might have found a company that will make the State Seal for the Board Meeting Room.

Information items: Mr. Harris stated that he and three other Board members would attend the ICFSEB conference in Louisville, Kentucky, April 8-9, 2006.

Mr. Harris stated the afternoon hearings had been cancelled.

Mr. Manson made the motion to accept the recommendation of the CE Committee regarding approval of the International Cemetery and Funeral Association Annual Convention & Exposition for continuing education credit. Mr. Blake seconded and the motion carried.

Mr. Briggs opened the floor for public comment. There was none.

The meeting adjourned at 11:50 a.m.

Jack D. Briggs, President

Mark Blake, Secretary