Ownership of Licensed Funeral Establishments; Disclosure of Ownership

(1) A business entity may engage in the Profession and Business of Embalming and Funeral only if: (a) a controlling interest, reflected by a majority of authorized stock in said entity, is held by one or more Type 3(s); (b) the business of that entity is under the direction and control of a Type 3, who shall be held responsible for ensuring that the entity complies with all applicable laws and regulations governing embalming and funeral directing; and (c) that entity meets the insurance requirements of 239 CMR 3.17. (2) Display of Ownership Information. (a) Every Licensed Funeral Establishment shall display on a sign, located either immediately outside or immediately inside the main entrance, all of the following ownership information: 1. the name of every individual who holds at least a 10% ownership interest in the corporation, limited liability company, partnership, limited liability partnership, association, organization, or other business entity which operates said Licensed Funeral Establishment; 2. the names of any and all corporations, limited liability companies, partnerships, or limited liability partnerships which either directly or indirectly hold an ownership interest of 10% or more in the corporation, limited liability company, partnership, limited liability partnership, association or other business entity which operates that Licensed Funeral Establishment; and 3. The lettering on said signs shall be readily legible. (b) Where an ownership interest of 10% or more in a Licensed Funeral Establishment is held, either directly or indirectly, by one or more corporations, limited liability companies, partnerships or limited liability partnerships, the name, complete headquarters address and telephone number of each such corporation, limited liability company, partnership or limited liability partnership shall also be listed on the business letterhead, invoices, and all Advertising used by said Licensed Funeral Establishment. (3) Changes in Name, Ownership, or Location of a Licensed Funeral Establishment. (a) Whenever the ownership of a Licensed Funeral Establishment changes, the establishment registration shall be deemed cancelled pursuant to M.G.L. c. 112, § 83. (b) A change of ownership shall be deemed to occur whenever the Type(s) originally owning or holding more than a 50% stake in an entity owning the establishment are transferring ownership in the funeral home or entity owning the funeral home such that he/she/they no longer hold more than a 50% controlling interest in the home/entity. For purposes of changes of ownership, a Type 3 registered to a Licensed Funeral Establishment for ten years or more at the time of a transfer in ownership shall be deemed to be an original owner by the Board. (c) A Licensed Funeral Establishment must obtain a new establishment certificate from the Board whenever the name or location of the establishment is changing. (d) A Type 3 and the Licensed Funeral Establishment to which he or she is registered shall notify the Board where said Type 3 no longer maintains at least a 10% ownership interest as required under 239 CMR 3.02. Said notice to the Board shall be made within 30 days of the date in which the Type 3 no longer maintains at least a 10% ownership interest. (e) At least 30 days prior to a closure or change of ownership, a Licensed Funeral Establishment must submit to the Board a closure or change of ownership form which includes but is not limited to information relative to pre-need accounts and cremated remains held by the Licensed Funeral Establishment. Said form shall be prescribed by the Board. (f) For purposes of 239 CMR 3.04(3)(a) through (f), should a registered Type 3 pass away, the direct passage of their ownership interest in a funeral establishment to a widow or widower shall not be deemed a change of ownership. However, if said widow or widower does not hold a Funeral Director registration, and no other original owners of the establishment are so registered, the widow/widower must obtain the services of a validly registered Type 3 to continue operating the funeral establishment. (4) Temporary Absence of a Type 3. (a) A Type 6 may operate a funeral home during the limited absence of a Type 3 for up to 90 days so long as the funeral home is still subject to the direction and ownership of the Type 3. (b) The Board must be notified in writing by the Type 3 whenever he or she will have a Type 6 fill in for him or her in excess of 30 days. (c) Notwithstanding any other restrictions in 239 CMR 3.00, the Board may, after a majority vote, allow a Type 6 to fill in for a Type 3 for a period in excess of 90 days for good cause shown. (5) Pre-need Funeral Arrangements. A Type 6 may conduct pre-need funeral arrangements at any Licensed Funeral Establishment owned by their employer(s) under the following conditions: (a) the Type 6 has been employed by the Type 3 at the subject Licensed Funeral Establishment for at least 30 days; and (b) the Type 6 has written authorization from the employing Type 3 that they have been employed for at least 30 days and may conduct pre-need funeral arrangements. A copy of this authorization must be available for Board review upon request. Notwithstanding this authorization, the employing Type 3 shall remain obligated to review all pre-need contracts entered into by a Type 6. (6) Closing of a Funeral Establishment. (a) The Type 3(s) owning a Licensed Funeral Establishment must notify the Board within ten calendar days upon the closure of that funeral establishment. (b) With regards to pre-need funeral arrangements, a closing Licensed Funeral Establishment must meet the requirements of 239 CMR 4.03(1). (c) All signage must be removed or covered upon closure of the Licensed Funeral Establishment or cancellation of the establishment registration. (d) All advertisements for a Licensed Funeral Establishment, including websites, must cease and/or be taken down upon the closure of said establishment.