Apr 13 2009 13:04 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 26639 12:15PM PS FILED FFR 20 2009 STING ¥ ALEX SINK Bowketed bys ke ore 1M foes penne REPH IN CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: EMERALD COAST FUNERAL HOME CASE NO.: 97372-08-FC (License Number: F041292) / ADMINISTRATIVE COMPLAINT TO: EMERALD COAST FUNERAL HOME 113 Racetrack Road N.E. Fort Walton Beach, Florida 32547 CARRIAGE SERVICES OF FLORIDA, INC., succeeded in merger by CARRIAGE CEMETERY SERVICES, INC., a wholly-owned subsidiary of CARRIAGE SERVICES, INC., d/b/a EMERALD COAST FUNERAL HOME c/o CT Corporation Systems, as Registered Agent 1200 South Pine Island Road Plantation, Florida 33324 You, EMERALD COAST FUNERAL HOME, are hereby notified that the Department of Financial Services (“Department”) has directed an investigation in connection with your license to operate as a Funeral Establishment (26-00) and to operate as an Apprentice/Intern Training Agency (22-00). The allegations set forth below are based on the aforementioned investigation. 1. The Board of Funeral, Cemetery, and Consumer Services (“Board”), created within the Division of Funeral, Cemetery and Consumer Services (“Division”), and the Department, have jurisdiction over your licensure as a as a Funeral Establishment and as an Apprentice/Intern Training Agency and over the subject matter of this proceeding, pursuant to the provisions of Section 20.121, and Chapter 497, Florida Statutes, the Florida Funeral, Cemetery, and Consumer Services Act (“Act”). Apr 13 2009 13:04 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Apr. 13 2663 12:15PM P4 2. The Board has the authority to determine through probable cause panels whether there is probable cause to believe there is a violation of Chapter 497, Florida Statutes, and whether a proposed administrative prosecution of a licensee shall go forward, as set forth in Sections 497.103(1)(v) and 497.153(3), Florida Statutes, 3, On February 5, 2008, a probable cause panel found probable cause to charge you, EMERALD COAST FUNERAL HOME, with violations of Chapter 497, Florida Statutes and the Department’s administrative rules and directed the Department to prosecute those charged violations, 4. At all times relevant to the allegations of this Administrative Complaint, you, EMERALD COAST FUNERAI, HOME, were licensed as a Funeral Establishment and as an Apprentice/Intem Training Agency, (License Number F041292), pursuant to the provisions of Chapter 497, Florida Statutes. 3. At ail times relevant to the allegations of this Administrative Complaint, Jeffery Kevin Watts (“Mr. Watts”), was the Funeral Director in Charge for you, EMERALD COAST FUNERAL HOME. 6. Mr, Watts continues ta be employed as the Funeral Director in Charge for you, EMERALD COAST FUNERAL HOME. 7. The Act provides the following: Each licensed funeral establishment shall have one full-time funeral director in charge and shall have a licensed funeral director reasonably available to the public during normal business hours for that establishment. The full-time funeral director in charge must have an active license and may not be the full-time funeral director in charge of any other funeral establishment or of any other direct disposal establishment. Section 497.380(7), Florida Statutes (2007). &. An individual designated as the funeral director in charge of a funeral establishment is responsible for making sure that the establishment and all persons employed in the establishment Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Apr. 13 2663 12:15PM PS comply with all applicable laws and rules of the department, as required by Rule 69K-21.007(3), Florida Administrative Code. 9. EMERALD COAST FUNERAL HOME is a fictitious name registered with the Florida Department of State, Division of Corporations to Carriage Funeral Holdings, Inc. 10. In Department records, EMERALD COAST FUNERAL HOME identifies its owner as Carriage Services of Florida, Inc. 11. Carriage Cemetery Services, Inc. is the successor by merger to Carriage Services of Florida, Inc. COUNT I 12: The above Genera! Allegations are hereby realleged and fully incorporated herein by reference. ) 13. On or about February 15, 2008, Mr. Watts embalmed and prepared the body of decedent B.C. for funeral services. 14. As part of the preparation, Mr. Watts decided to physically remove a portion of B.C.’s tongue. 15. Instead of preparing the excised portion of B.C.’s tongue for proper disposal with the rest of B.C.’s human remains, Mr. Watts discarded the portion of B.C.’s tongue in the bio-medical waste receptacle in the preparation room at Emerald Coast. 16. On or about February 17, 2008, Mr. Watts discussed B.C.’s case with embalmer apprentice Kirk Kahler (“Mr. Kahler”), License Number F037900, Mr. Watts told Mr, Kahler about removing the portion of B.C.'s tongue. 17. Mr. Watts removed the tongue from the bio-medical waste receptacle and displayed it for Mr. Kahler to sce. 18. After displaying the tongue for Mr. Kahler in an undignified manner with no Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Apr. 13 2663 12:16PM Pe educational purpose, Mr. Watts discarded the portion of B.C.’s tongue, once again, in the bio- medical waste receptacle, 19. Through his actions, demeanor, and attitude, Mr. Watts did not demonstrate the requisite dignity and respect due to B.C. and the removed portion of B.C.’s human remains, IT 18 THEREFORE CHARGED that you, EMERALD COAST FUNERAL HOME, have violated or are accountable under the following provisions of the Act and the rules promulgated pursuant thereto which constitute grounds for discipline, including the suspension or revocation of your license as a F uneral Establishment and as an Apprentice/Intern Training Agency: (a) The licensing authority shall establish by rule the minimal standards of acceptable and prevailing practices for the handling and storing of dead human bodies, provided that all human remains transported or stored must be completely covered and at all times treated with dignity and respect. [Section 497.386(4), Florida Statutes]; (b) Committing fraud, deceit, negligence, incompetency, or misconduct in the practice of any of the activities regulated under this chapter. [Section 497.152(1)(b), Florida Statutes]; (c) Pailing to perform any statutory or legal obligation placed upon a licensee. [Section 497,152(4)(h), Florida Statutes]; (qd) ‘Violating any provision of this chapter or any lawful order of the board or department or of the statutory predecessors to the board or department. [Section 497,152(1){a), Florida Statutes]. COUNT II 20, The above General Allegations are hereby realleged and fully incorporated herein by reference. 21. Carriage Cemetery Services, Inc. (FEIN: 760592642) succeeded Carriage Services of Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 2669 12:16PM Pr Florida, Ine. (FEIN: 650764830) through a merger filed with the Florida Department of State, Division of Corporations on or about May 4, 2000. 22, Pursuant to Section 497.141(2), an application for licensure under the Act shall include the applicant’s federal tax identification number (FEIN). 23. Because the corporations have different FEINs, they are separate and distinct legal entities, 24, Therefore, as of May 4, 2000, Catriage Cemetery Services, Inc., not Carriage Services of Florida, Inc., owned you, EMERALD COAST FUNERAL HOME. 25, The aforementioned change in ownership should have been promptly reported to the Division. 26, You, EMERALD COAST FUNERAL HOME, through authorized representatives, or Carriage Cometery Services, Inc, failed to promptly inform the Division about a change in status or ownership for EMERALD COAST FUNERAI, HOME. 27. Carriage Cemetery Services, Inc., d/b/a EMERALD COAST FUNERAL HOME, has represented the license issued to Carriage Services of Florida, Inc. as since May 4, 2000. 28. Carriage Cemetery Services, Inc. should have taken the proper steps, including reinspection and payment of applicable fees, to become licensed as the owner of EMERALD COAST FUNERAL HOME. 29, Carriage Cemetery Services, Inc., d/b/a EMERALD COAST FUNERAL HOME, has been practicing without the appropriate funeral establishment license since May 4, 2000. IT I8 THEREFORE CHARGED that you, EMERALD COAST FUNERAL HOME, have violated or are accountable under the following provisions of the Act and the rules promulgated pursuant thereto which constitute grounds for discipline, including the suspension or revocation of your license as a Funeral Establishment and as an Apprentice/Intern Training Agency: Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 2669 12:16PM Pe a) No license issued under this chapter shal] be assignable or transferable except to the extent specifically provided by this chapter. [Section 497,141(10), Florida Statutes]; b) Practicing or offering to practice beyond the scope permitted by this chapter and rules adopted under this chapter for the type of licensure held or accepting and performing professional responsibilities the licensee knows, or has reason to know, the licensee is not competent to perform. [Section 497.152(5)(a), Florida Statutes]; c) Representing as her or his own the license of another. [Section 497.152(5)(c), Florida Statutes]; d) A change in ownership of a funeral establishment shall be promptly reported pursuant to procedures established by rule and shall require the relicensure of the funeral establishment, including reinspection and payment of applicable fees. [Section 497.380(12)(a), Florida Statutes]; e) No funeral establishment shall be operated or be opened for business prior to the issuance of a funeral establishment license by the Department for that establishment. Violation of this section shall be grounds for denial of licensure. [Rule 69K-21.001(4), Florida Administrative Code}; f) Violating any provision of this chapter or any lawful order of the board or department or of the statutory predecessors to the board or department. [Section 497,132(1)(a), Florida Statutes}. WHEREFORE, the Department respectfully requests that the Board enter an order imposing one or more of the following penalties: revocation or suspension of your license; imposition of an administrative fine not to exceed five thousand dollars ($5,000) for each count or separate offense; issuance of a written reprimand; placement of you on probation; assessment of costs associated with investigation and prosecution; requiring you to make restitution; imposition of any or all penalties Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Apr. 13 2663 12:17PM Pa delineated within Section 497,153(5), Florida Statutes; and any other relief that the Board is authorized to impose pursuant to Chapter 497, Florida Statutes, and the rules promulgated thereunder. NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, Florida Administrative Code, you have the right to request a proceeding to contest this action by the Department of Financial Services ("Department"). The proceeding request must be in writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice. Completion of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with the General Counsel acting as Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TQ RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WATVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these requirements, Specifically, your response must contain: (a) The name, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"). (b) The name, address, telephone number, facsimile number of the attorney or qualified Apr 13 2009 13:05 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 2663 12:17PM Pile representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) A statement of when the respondent reccived notice of the administrative complaint. (e) A statement including the file number to the administrative complaint, If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative at your expense, to present evidence and argument, to call and cross- examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. Ifa proceeding is requested and there is no dispute of material fact, the provisions of Sections 120.57(2) and 497.153(4)(b), Florida Statutes, apply. You may either submit a written statement and documentary evidence to the Board in lieu of a hearing, or personally attend a hearing conducted by the Board at the location of a regularly scheduled Board meeting, However, if you dispute material facts that are the basis for the Department’s action, you must request an adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. These proceedings are held before a State Administrative Law Judge of the Division of Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. ‘ Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an administrative Apr 13 2009 13:07 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 2689 12:17PM Pil proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. Mediation of this matter pursuant to Section 120.573, Florida Statutes, is not available, No Department attorney will discuss this matter with you until the response has been received by the Department. r hu DATED and SIGNED this a8) _ day of February, 2009. TAMMY T ON Deputy Chief Financial Officer Apr 13 2009 13:07 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Apr. 13 26683 12:18PM Pile CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to the following: EMERALD COAST FUNERAL HOME 113 Racetrack Road N.E. Fort Walton Beach, Florida 32547 CARRIAGE SERVICES OF FLORIDA, INC., succeeded in merger by CARRIAGE CEMETERY SERVICES, INC., a wholly-owned subsidiary of CARRIAGE SERVICES, INC., d/b/a EMERALD COAST FUNERAL HOME c/o CT Corporation Systems, as Registered Agent 1200 South Pine Island Road Plantation, Florida 33324 ‘on , By Certified U.S. Mail, return receipt requested, restricted delivery, this 2O* _. day of February, 2009, Thomas A. “Tad” David, Esq. Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4164 Florida Bar Number 0706868

Docket for Case No: 09-001839

Orders for Case No: 09-001839