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Mortuary and Cemetery Board seeks expanded disciplinary powers after Klamath Falls case
Summary
The Oregon Mortuary and Cemetery Board told the House committee May 13 that Senate Bill 872A would give the board reprimand, probation and emergency suspension powers it lacked during a protracted Klamath Falls cemetery licensing dispute that led to involuntary bankruptcy proceedings.
Chad Russellhouse, executive director of the Oregon Mortuary and Cemetery Board, told the House Committee on Commerce and Consumer Protection that Senate Bill 872A would give the board disciplinary authorities it lacked during a lengthy licensing dispute involving a cemetery in Klamath Falls.
Russellhouse described the case as “a frustrating and devastating situation” that began in March 2016 when the board revoked an operating license and culminated in an involuntary bankruptcy finalized on Nov. 13, 2023. He said the board had no authority to issue a suspension or cease‑and‑desist order, and that lack of authority forced the agency to pursue involuntary bankruptcy proceedings.
“With Senate Bill 872 becoming law, our agency will have the necessary disciplinary action authority to prevent super consumer harm and communities from being negatively impacted by licensees who egregiously violate Oregon law,” Russellhouse said. He asked committee members to imagine a similar episode happening in any community represented by the legislators on the committee.
Committee members had no follow‑up questions during the May 13 hearing and the public hearing on SB 872A was closed. Russellhouse did not request a committee vote that day; the testimony served to explain why the board seeks statutes authorizing reprimands, license limitations, probation conditions, emergency suspensions and an increased civil penalty cap (from $1,000 to $5,000 per violation).
Why it matters: The bill would expand the board’s enforcement toolkit and could shorten and reduce the cost of regulatory responses to licensee misconduct affecting families and property owners interred at cemeteries.
