Chariman Faber, Ranking Member Patterson, and the entire Committee on State Government and Agency Review
The Board of Embalmers and Funeral Directors is tasked with licensing and regulating the funeral industry in Ohio.
The mission of the Board is to protect consumers and to regulate the profession by establishing standards through
the licensure of Embalmers, Funeral Directors, Crematory facilities, Embalming facilities and Funeral Homes. The
goal of the Board is to provide quality service(s) that benefit and protect both consumers and licensees.
The Board is comprised of seven members. Five members are licensed Funeral Directors and Embalmers (with one
being knowledgeable in the area of cremation) and two representing the general public. The Board employs six
individuals: two Embalmer-Funeral Facility Inspectors, two Program Administrators, one Certification Licensure
Examiner and one Executive Director. The Board meets monthly to review applications, issue licenses, approve
continuing education programs, discuss compliance issues, take disciplinary action and interview/certify apprentices.
Revenue is based on fees collected through registration, certification of apprentices, initial licensure, examinations,
biennial renewals and financial sanctions. All funds are deposited into Fund 4K90. The Board has not been
dependent on GRF funding. Revenue peaks with the biennial renewal and totaled $1.3 million for 2014/2015 and
$1.4 million for 2016/2017. Using these two budget cycles as a reference, and not assuming an increase in fees,
revenue is projected to be $1.5 - $1.6 million in the 2018/2019 cycle.
It is important to share a brief “fee” history of the fee schedule. Until 2013, the Board had not raised fees since 2003.
The 2013 fee increase was needed to cover current costs and to provide funding for a dedicated staff member to
investigate and audit “Pre-Need” contracts. The (actual) additional revenue recognized by the fee increase covered
current costs, but was not sufficient to cover additional staffing. While this budget does not include a fee increase, I
will recommend to the Funeral Directors Association that they start laying the groundwork for a possible fee increase
for the 2020-2021 budget cycle.
Based on meetings with the Ohio Funeral Directors Association (OFDA), current Board members and the
Administration, the “Pre-Need” issue warrants the Funeral Board employ one additional employee focused primarily
on this subject. Though the budget reflects a full-time position, the Board will study the need, scope and
responsibilities of such a role, and would initially employ someone part-time to better understand the responsibilities
required to manage “Pre-Need” practices. The needs will be better understood with further investigation. The State
Board will seek help from LeanOhio to identify its employment needs.
The State Board and its licensed practitioners, has recognized the management of Preneed funds as the most
concerning issue within the industry. Many Licensee’s have recognized a reduction in income, creating a challenging
climate in regards to cash flow for their business. Legislation is being drafted, led by OFDA (which represents
approximately 85% of Ohios Licensees) requiring its members to pay a fee of $10.00 with each Pre-Need contract.
This fee will be deposited into a “Guarantee Fund” that will cover costs associated with failure to execute a Pre-Need
contract. The Association wants to help fund (if possible) a State Board position dedicated to the Pre-Need issue.
Though this is a consideration, there is nothing finalized regarding such action and the Board cannot depend on this
as a source of revenue.
Additional budget considerations include the implementation of eLicense 3.0 which represents an increase of
approximately $14 thousand annually. We intend to help offset this expense by eliminating BoardDocs ($12 thousand
annually), which has been our website and replace it with an OIT site that offers an easier and more practical user
experience at no expense to the Board. Cutting our Office Supplies by half ($4 thousand) will also help offset the
increase.
The Board appreciates your consideration, and respectfully requests approval of our 2018/2019 budget.
Sincerely,
Tim Derickson