(1) For each prearrangement contract, a cemetery
authority shall deposit the greater of the following amounts in
its prearrangement trust fund:
(a) For merchandise:
(i) Fifty percent of the contract price; or
(ii) The wholesale cost of the item.
(b) For services:
(i) Fifty percent of the contract price; or
(ii) The direct cost of providing the service.
(2) Any cemetery authority which does not file and maintain
with the board a bond as provided in subsection (4) of this
section shall deposit in its prearrangement trust fund an amount
as determined under subsection (1) of this section, excluding
sales tax and endowment care if such charge is made.
(3) Any cemetery authority which files and maintains with
the board a bond as provided in subsection (4) of this section
may retain the nontrustable portion of the contract before
depositing the balance of payments into its prearrangement trust
fund, as determined under subsection (1) of this section,
excluding sales tax and endowment care, if such charge is made.
(4) Each cemetery authority electing to make payments to its
prearrangement trust fund pursuant to subsection (3) of this
section shall file and maintain with the board a bond, issued by
a surety company authorized to do business in the state, in the
amount by which the cemetery authority's contingent liability for
refunds pursuant to RCW 68.46.060 exceeds the amount deposited in
its prearrangement trust fund. The bond shall be conditioned
that it is for the use and benefit of any person requesting a
refund pursuant to RCW 68.46.060 if the cemetery authority does
not promptly pay to the person the refund due pursuant to RCW 68.46.060. In addition to any other remedy, every person not
promptly receiving the refund due pursuant to RCW 68.46.060 may
sue the surety for the refund. The liability of the surety shall
not exceed the amount of the bond. Termination or cancellation
shall not be effective unless notice is delivered by the surety
to the board at least thirty days prior to the date of
termination or cancellation. The board shall immediately notify
the cemetery authority affected by the termination or
cancellation by certified mail, return receipt requested. The
cemetery authority shall thereupon obtain another bond or make
such other arrangement as may be satisfactory to the board to
ensure its ability to make refunds pursuant to RCW 68.46.060.
(5) Deposits to the prearrangement trust fund shall be made
not later than the twentieth day of each month following receipt
of each payment required to be deposited. If a prearrangement
contract is sold, pledged, or otherwise encumbered as security
for a loan by the cemetery authority, the cemetery authority
shall pay into the prearrangement trust fund fifty percent of the
total sale price of the prearrangement contract within twenty
days of receipt of payment of the proceeds from the sale or loan.
(6) Any failure to fund a prearrangement contract as
required by this section shall be grounds for disciplinary action
against the cemetery authority and the cemetery authority's
prearrangement sales license.
[2005 c 365 § 127; 1984 c 53 § 3; 1979 c 21 § 24; 1973 1st ex.s. c 68 § 3.]