R9-9B-303. Changes Affecting a License

A. The Department considers a change of ownership of a funeral establishment to have occurred when there is a change in the: 1. Type or structure of a controlling entity’s business organization, such as: a. In the case of ownership by a sole proprietor, 10 percent or more interest or a beneficial interest is sold or transferred; or b. In the case of ownership by a partnership or a private corporation, 10 percent or more of the stock, interest, or beneficial interest is sold or transferred; or 2. The management and control of the funeral establishment significantly changes, such that there is a change in who pays the operating expenses or who receives the operating revenue. B. As required by A.R.S. § 32-1388, a licensee shall: 1. Notify the Department in writing within 30 calendar days after the effective date of a change of ownership of a funeral establishment, including the following information, in a Department-provided format: a. The name and license number of the funeral establishment; b. The name, mailing address, email address, and telephone number of the licensee; c. The name, email address, and telephone number of an individual who may be contacted by the Department about the change of ownership; d. The date of the change of ownership; e. The name of the new owner of the funeral establishment; f. An attestation that the records required in R9-9B- 304(J) have been provided to the responsible funeral director for the new owner; and g. The licensee’s signature and date of signing; 2. If the funeral establishment has a prearranged funeral sales endorsement, submit to the Department a copy of the notification sent to the holders of existing prearranged funeral agreements funded by trust regarding the change of ownership of the funeral establishment, according to R9-9B-304(K)(1); and 3. Surrender the funeral establishment license to the Department. C. At least 30 calendar days before a change in the legal name of a funeral establishment that does not affect the structure or ownership of the business organization, a licensee shall submit to the Department an application, including: 1. The following information in a Department-provided format: a. The current name and license number of the funeral establishment; b. The proposed new name of the funeral establishment; c. Whether the funeral establishment has a prearranged funeral sales endorsement; d. The name, email address, and telephone number of an individual who may be contacted by the Department; e. An attestation that the change in the legal name of the funeral establishment does not affect the structure or ownership of the business organization; f. An attestation that the information and documentation submitted as part of the application are true and accurate; and g. The licensee’s signature and the date of signing; 2. A copy of the documents required in R9-9B-306(C) and a sample copy of the Statement of Goods and Services in R9-9B-306(E)(1) without any identifying information about a potential purchaser, reflecting the new name of the funeral establishment; 3. An updated attestation from the responsible funeral director, as specified in R9-301(B)(6), including the new name of the funeral establishment; 4. If the funeral establishment has a prearranged funeral sales endorsement: a. Documentation of the issuance of a corporate surety bond, required in A.R.S. § 32-1391.12(A)(4), in the new name of the funeral establishment, in an amount specified according to R9-9B-307(B)(1); and b. A copy of the notification sent to the holders of existing prearranged funeral agreements funded by trust regarding the name change of the funeral establishment, according to R9-9B-304(K)(2); and 5. The fee in R9-9B-103(A)(8). D. At least 30 calendar days before a change in the legal name of a licensee, which does not affect the structure or ownership of the business organization if the licensee is a business organization, a licensee shall: 1. Notify the Department in writing, including the following information, in a Department-provided format: a. The name and license number of the funeral establishment; b. The current name of the licensee; c. The proposed new name of the licensee; d. The name, email address, and telephone number of an individual who may be contacted by the Department; e. An attestation that the change in the legal name of the licensee does not affect the structure or ownership of the business organization; f. An attestation that the information and documentation submitted as part of the notification are true and accurate; and g. The licensee’s signature and date of signing; and 2. Either: a. If the licensee is an individual, documentation of the individual’s legal name change; or b. If the licensee is a business organization, documentation of the name change, from the Arizona Corporation Commission or other governmental entity, as applicable, registering the new name, that indicates no change in structure or ownership of the business organization. E. At least 30 calendar days before an anticipated change of location of a funeral establishment, without a change of ownership, a licensee shall submit to the Department an application, including: 1. The following information in a Department-provided format: a. The name and license number of the funeral establishment; b. The name, mailing address, email address, and telephone number of the licensee; c. The current physical address of the funeral establishment; d. The new physical address of the funeral establishment; e. The estimated date that the funeral establishment plans to suspend operations at the current address in anticipation of the change of address; f. The estimated date that the funeral establishment plans to be ready to begin operations at the new address; g. The date the funeral establishment will be ready for a licensing inspection; h. Whether the funeral establishment complies with local zoning ordinances, building codes, and fire codes for the new location; i. Whether the licensee agrees to allow the Department to submit supplemental requests for information under R9-9B-102(C)(3); j. An attestation that the change in the location of the funeral establishment does not affect the structure or ownership of the business organization; k. An attestation that the information and documentation submitted as part of the application for a change of location for the funeral establishment are true and accurate; and l. The licensee’s signature and date of signing; 2. A plan for ensuring the condition, dignity, and security of human remains and cremated remains in the possession of the funeral establishment during the change of location; 3. An updated attestation from the responsible funeral director, as specified in R9-301(B)(6), including the new location of the funeral establishment; 4. A floor plan, which is drawn to approximate scale and may be neatly hand-drawn, of each building at the new location of the funeral establishment, showing the function of each room; 5. If the funeral establishment has a prearranged funeral sales endorsement: a. Documentation of the issuance of a corporate surety bond, required in A.R.S. § 32-1391.12(A)(4), at the new location of the funeral establishment, in an amount specified according to R9-9B-307(B)(1); and b. A copy of the notification sent to the holders of existing prearranged funeral agreements funded by trust regarding the change of location of the funeral establishment, according to R9-9B-304(K)(3); and 6. The fee in R9-9B-103(A)(7). F. A licensee shall notify the Department in writing at least 30 calendar days before the anticipated start of a proposed modification, which includes a substantial improvement, enlargement, reduction, alteration, or other substantial change in the funeral establishment or another structure on the premises at the funeral establishment, including: 1. The following information in a Department-provided format: a. The name and license number of the funeral establishment; b. A description of the proposed modification; c. Whether the modification will comply with local zoning ordinances, building codes, and fire codes; d. The estimated date of completion of the modification; e. The date the funeral establishment will be ready for a licensing inspection; f. The name, email address, and telephone number of an individual who may be contacted by the Department; g. An attestation that the information and documentation submitted as part of the application for a modification of the funeral establishment are true and accurate; and h. The licensee’s signature and date of signing; 2. A plan for ensuring the condition, dignity, and security of human remains and cremated remains in the possession of the funeral establishment during the modification; and 3. A floor plan, which is drawn to approximate scale and may be neatly hand-drawn, of each building in which a modification of the funeral establishment will be made: a. Showing the function of each room, and b. Indicating the changes to be made. G. Within seven calendar days after a change in a responsible funeral director, the new responsible funeral director shall submit to the Department an attestation, in a Department-provided format, including: 1. The name and license number of the funeral establishment; 2. The name and license number of the former responsible funeral director; 3. The name and license number of the new responsible funeral director; 4. The date of the change in responsible funeral director; 5. Whether the contact email address for the funeral establishment is changing and, if so, the new contact email address for the funeral establishment; 6. A statement that the new responsible funeral director: a. Is licensed under Article 2 of this Subchapter; b. Is familiar with the requirements in A.R.S. Title 32, Chapter 12, and the rules in this Subchapter; c. Accepts responsibility for the operation of and services provided by the funeral establishment; and d. Will ensure that the funeral establishment will be equipped and operated according to the requirements in A.R.S. Title 32, Chapter 12, and the rules in this Subchapter; and 7. The new responsible funeral director’s signature and date of signing. H. A licensee shall notify the Department in writing, including in the notification the name and license number of the funeral establishment, no later than 30 calendar days after a change in any of the following: 1. The email address or mailing address of the funeral establishment, including the new email address or mailing address; 2. The email address or telephone number of the licensee, including the new email address or telephone number; or 3. An individual employed by or contracted with the funeral establishment to offer prearranged funerals, including the name and address of the individual. I. If a licensee intends to close a funeral establishment, without a change of ownership or change of location, the licensee shall: 1. Notify the Department in writing at least 30 calendar days before the anticipated date the funeral establishment will close, including the following information, in a Department-provided format: a. The name and license number of the funeral establishment; b. The name of the licensee; c. The estimated date that the funeral establishment plans to close; d. The name, email address, and telephone number of an individual who may be contacted by the Department; e. The name, email address, and telephone number of the person that will have custody of records required to be maintained by the funeral establishment according to R9-9B-304(J); f. A statement that, as of the date specified according to subsection (I)(1)(c), the funeral establishment will have no human remains or cremated remains on the premises; g. An attestation that the information and documentation submitted as part of the notification are true and accurate; and h. The licensee’s signature and date of signing; and 2. Within seven calendar days after the date specified according to subsection (I)(1)(c): a. Submit to the Department an attestation that the records required to be maintained by the funeral establishment according to R9-9B-304(J) have been transferred into the custody of the person named according to subsection (I)(1)(e) and the date of the transfer; b. If the funeral establishment has a prearranged funeral sales endorsement, submit to the Department: i. A copy of the notification sent to the holders of existing prearranged funeral agreements funded by trust regarding the closing of the funeral establishment, according to R9-9B-304(K)(5); and ii. An attestation that any trust funds have been disbursed to the holders of existing prearranged funeral agreements funded by trust; and c. Surrender the funeral establishment license to the Department. J. If the Department receives the notification of a change of ownership in subsection (B) or closure of the funeral establishment in subsection (I), the Department shall void the licensee’s license to operate a funeral establishment as of the date specified by the licensee in subsection (B)(1)(d) or (I)(1)(c), as applicable. K. If the Department receives an application for a change in the name of a funeral establishment in subsection (C) or notification in subsection (D) of a change in the legal name of a licensee, the Department shall: 1. Determine whether the change affects the structure or ownership of a business organization; 2. If the change in the name of a funeral establishment or licensee does not affect the structure or ownership of a business organization: a. For a change in the name of a funeral establishment, issue to the licensee an amended license showing the new legal name of the funeral establishment, keeping the current license expiration date; or b. For a change in the legal name of a licensee, notify the licensee that records have been updated; and 3. If the change in the name of the funeral establishment or licensee affects the structure or ownership of a business organization, notify the licensee that: a. The funeral establishment is required to comply with subsection (B); b. The new owner may apply for a new funeral establishment license according to R9-9B-301; and c. According to R9-9B-301(A), funeral industry services cannot be provided until a new license or interim permit is issued. L. If the Department receives an application for a change in the location of a funeral establishment in subsection (E), the Department shall: 1. Conduct an inspection of the premises; and 2. If the funeral establishment is compliant with A.R.S. Title 32, Chapter 12, and this Subchapter, issue to the licensee an amended license for the funeral establishment that incorporates the new address and retains the expiration date of the existing license. M. If the Department receives an application in subsection (F) of a proposed modification, the Department: 1. May conduct an inspection of the premises; and 2. Shall notify the licensee that the funeral establishment is: a. Compliant with A.R.S. Title 32, Chapter 12, and this Subchapter; or b. Not compliant with A.R.S. Title 32, Chapter 12, and this Subchapter, and: i. Request a plan of correction for instances of noncompliance, and ii. State whether the funeral establishment may continue operations before corrections are completed.