By Pitts                                              H.B. No. 2756
         76R7502 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the abolition of the Funeral Services Commission and
 1-3     the transfer of the duties of that commission to the Texas Board of
 1-4     Health; establishing an advisory committee to the Texas Department
 1-5     of Health on funeral services issues.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Section 1, Chapter 251, Acts of the 53rd
 1-8     Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 1-9     Civil Statutes), is amended by amending Subsections E, F, H, T, and
1-10     W and adding Subsections X and Y to read as follows:
1-11           E.  The term "provisional licensee" as herein used is a
1-12     person engaged in learning the practice of funeral directing and/or
1-13     embalming under the instruction, direction, and personal
1-14     supervision of a duly licensed funeral director and/or embalmer of
1-15     and in the State of Texas in accordance with the provisions of this
1-16     Act, and having been duly issued a provisional license by the
1-17     department [commission] prior thereto.
1-18           F.  The term "provisional license program" or "program" as
1-19     used herein shall be construed as diligent attention to assigned
1-20     duties and other matters performed in a licensed funeral
1-21     establishment in this state.  The board [commission] by rule shall
1-22     define the terms of employment of a provisional licensee, which
1-23     must include service by the provisional licensee under actual
1-24     working conditions and under the personal supervision of a licensed
 2-1     funeral director and/or embalmer.
 2-2           H.  The term "due notice" as herein used shall mean published
 2-3     notice of the time and place of regular meetings of the board
 2-4     [commission].  Notice of time, place, and purpose of any meeting of
 2-5     the board [commission] filed with the Texas Register at least seven
 2-6     (7) days prior thereto shall be adequate notice for any regular
 2-7     meeting, including the giving of examinations.
 2-8           T.  "Written memorandum" or "funeral purchase agreement"
 2-9     means a written statement that itemizes the cost of funeral
2-10     services or merchandise selected by a customer from the retail
2-11     price list.  The memorandum must also state the amount paid or owed
2-12     to another person by the funeral establishment on behalf of the
2-13     customer and each fee charged the customer for the cost of
2-14     advancing funds or becoming indebted to another person on behalf of
2-15     the customer.  The memorandum must include the name, address, and
2-16     telephone number of the funeral establishment and the following
2-17     printed notice:  "Charges are only for those items that you
2-18     selected or that are required.  If we are required by law or by a
2-19     cemetery or crematory to use any items, we will explain the reasons
2-20     in writing below." The memorandum must include the name, mailing
2-21     address, and telephone number of the department [Texas Funeral
2-22     Service Commission], and a statement indicating that complaints may
2-23     be directed to the department [commission].
2-24           W.  "Board" means the Texas Board of Health ["Commission"
2-25     means the Texas Funeral Service Commission].
2-26           X.  "Commissioner" means the commissioner of public health.
2-27           Y.  "Department" means the Texas Department of Health.
 3-1           SECTION 2.  Chapter 251, Acts of the 53rd Legislature,
 3-2     Regular Session, 1953 (Article 4582b, Vernon's Texas Civil
 3-3     Statutes), is amended by adding Section 2B to read as follows:
 3-4           Sec. 2B.  ADVISORY COMMITTEE.  (a)  In this section,
 3-5     "advisory committee" means the funeral services advisory committee.
 3-6           (b)  The funeral services advisory committee is established
 3-7     as an advisory committee to the board.  The advisory committee is
 3-8     composed of five members appointed without regard to the race,
 3-9     color, disability, sex, religion, age, or national origin of the
3-10     appointee.  The board shall appoint the members of the advisory
3-11     committee,  three of whom must hold licenses under this Act, only
3-12     one of whom may be an owner of a funeral establishment, and two of
3-13     whom must be public members.
3-14           (c)  A member of the advisory committee serves a three-year
3-15     term.  A member of the advisory committee is not entitled to
3-16     compensation, but is entitled to reimbursement for actual and
3-17     necessary expenses incurred in performing duties as an advisory
3-18     committee member, subject to any applicable limitation on
3-19     reimbursement provided by the General Appropriations Act.
3-20           (d)  The advisory committee shall elect a presiding officer
3-21     from its members. The advisory committee shall meet at the call of
3-22     the presiding officer, but at least three times each year.
3-23           (e)  The advisory committee shall make recommendations to the
3-24     board regarding the licensing and regulation of funeral directors,
3-25     embalmers, funeral establishments, and other persons engaged in
3-26     business in this state in the funeral industry.
3-27           (f)  The advisory committee is not subject to Chapter 2110,
 4-1     Government Code.
 4-2           SECTION 3.  Subsection A, Section 3, Chapter 251, Acts of the
 4-3     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
 4-4     Texas Civil Statutes), is amended to read as follows:
 4-5           A.  The board [commission] is hereby authorized and empowered
 4-6     and it shall be its duty to prescribe and maintain a standard of
 4-7     proficiency, professionalism, and qualifications of those engaged
 4-8     or who may engage in the practice of a funeral director or embalmer
 4-9     and to determine the qualifications necessary to enable any person
4-10     to lawfully practice as a funeral director, to embalm dead human
4-11     bodies, and to collect the fees therefor.  The department
4-12     [commission] shall examine all applicants for funeral directors'
4-13     and embalmers' licenses and for provisional licenses and shall
4-14     issue the proper license to all persons qualified and who meet the
4-15     requirements herein prescribed.
4-16           SECTION 4.  Subdivisions (2) and (3), Subsection B, Section
4-17     3, Chapter 251, Acts of the 53rd Legislature, Regular Session, 1953
4-18     (Article 4582b, Vernon's Texas Civil Statutes), are amended to read
4-19     as follows:
4-20                 (2)  The department [commission] shall administer or
4-21     arrange for the administration of:
4-22                       (a)  a written professionally prepared
4-23     examination on the subjects of:
4-24                             (i)  the art and technique of funeral
4-25     directing;
4-26                             (ii)  the signs of death;
4-27                             (iii)  the manner by which death may be
 5-1     determined;
 5-2                             (iv)  sanitation;
 5-3                             (v)  hygiene;
 5-4                             (vi)  mortuary management and mortuary law;
 5-5                             (vii)  business and professional ethics;
 5-6     and
 5-7                             (viii)  other subjects that may be taught
 5-8     in a recognized school or college of mortuary science; and
 5-9                       (b)  a written examination developed by the
5-10     department [commission] or developed for the department
5-11     [commission] by contract on:
5-12                             (i)  laws applicable to vital statistics
5-13     pertaining to dead human bodies; and
5-14                             (ii)  local and state rules and laws
5-15     relating to the preparation, transportation, care, and disposition
5-16     of dead human bodies.
5-17                 (3)  Not later than the 30th day after the date on
5-18     which a funeral director licensing examination is administered
5-19     under this Act, the department [commission] shall notify each
5-20     examinee of the results of the examination.  However, if an
5-21     examination is graded or reviewed by a national testing service,
5-22     the department [commission] shall notify examinees of the results
5-23     of the examination not later than the 14th day after the date on
5-24     which the department [commission] receives the results from the
5-25     testing service.  If the notice of examination results graded or
5-26     reviewed by a national testing service will be delayed for longer
5-27     than 90 days after the examination date, the department
 6-1     [commission] shall notify the examinee of the reason for the delay
 6-2     before the 90th day.  If requested in writing by a person who fails
 6-3     a licensing examination administered under this Act, the department
 6-4     [commission] shall furnish the person with an analysis of the
 6-5     person's performance on the examination.
 6-6           SECTION 5.  Subdivisions (2) and (3), Subsection C, Section
 6-7     3, Chapter 251, Acts of the 53rd Legislature, Regular Session, 1953
 6-8     (Article 4582b, Vernon's Texas Civil Statutes), are amended to read
 6-9     as follows:
6-10                 (2)  The department [commission] shall administer or
6-11     arrange for the administration of:
6-12                       (a)  a written professionally prepared
6-13     examination on the subjects of:
6-14                             (i)  the anatomy of the human body;
6-15                             (ii)  the cavities of the human body;
6-16                             (iii)  the arterial and venous system of
6-17     the human body;
6-18                             (iv)  blood and discoloration;
6-19                             (v)  bacteriology and hygiene;
6-20                             (vi)  pathology;
6-21                             (vii)  chemistry and embalming;
6-22                             (viii)  arterial and cavity embalming;
6-23                             (ix)  restorative art;
6-24                             (x)  disinfecting;
6-25                             (xi)  embalming special cases;
6-26                             (xii)  contagious and infectious diseases;
6-27                             (xiii)  mortuary management;
 7-1                             (xiv)  care, preservation, transportation,
 7-2     and disposition of dead human bodies;
 7-3                             (xv)  sanitary science; and
 7-4                             (xvi)  other subjects as may be taught in a
 7-5     recognized school or college of mortuary science; and
 7-6                       (b)  a written examination developed by the
 7-7     department [commission] or developed for the department
 7-8     [commission] by contract on:
 7-9                             (i)  laws applicable to vital statistics
7-10     pertaining to dead human bodies; and
7-11                             (ii)  local and state rules and laws
7-12     relating to the care and disposition of dead human bodies.
7-13                 (3)  Not later than the 30th day after the date on
7-14     which an embalmer licensing examination is administered under this
7-15     Act, the department [commission] shall notify each examinee of the
7-16     results of the examination.  However, if an examination is graded
7-17     or reviewed by a national testing service, the department
7-18     [commission] shall notify examinees of the results of the
7-19     examination not later than the 14th day after the date on which the
7-20     department [commission] receives the results from the testing
7-21     service.  If the notice of examination results graded or reviewed
7-22     by a national testing service will be delayed for longer than 90
7-23     days after the examination date, the department [commission] shall
7-24     notify the examinee of the reason for the delay before the 90th
7-25     day.  If requested in writing by a person who fails a licensing
7-26     examination administered under this Act, the department
7-27     [commission] shall furnish the person with an analysis of the
 8-1     person's performance on the examination.
 8-2           SECTION 6.  Subsections D, E, F, H, I, and J, Section 3,
 8-3     Chapter 251, Acts of the 53rd Legislature, Regular Session, 1953
 8-4     (Article 4582b, Vernon's Texas Civil Statutes), are amended to read
 8-5     as follows:
 8-6           D.  It shall be the duty of the department [commission] to
 8-7     prescribe and supervise the course of instruction received by a
 8-8     provisional licensee while participating in a provisional license
 8-9     program, consistent with the following requirements:
8-10                 1.  Provisional license for embalmer:  A license to
8-11     practice the science of embalming shall not be issued unless and
8-12     until the applicant therefor has served a provisional license
8-13     program of not less than twelve (12) consecutive months under the
8-14     personal supervision and instruction of a licensed embalmer and has
8-15     successfully completed all requirements of the program.  The only
8-16     exception to this requirement shall be in the case of an applicant
8-17     under reciprocity.
8-18                       (a)  Any person, eighteen (18) years of age or
8-19     more, who desires to practice the science of embalming in this
8-20     state, files application therefor, meets the requirements of the
8-21     law and the department [this commission], and possesses such
8-22     qualification to enter into the provisional license program, may be
8-23     registered as a provisional licensee.  A provisional license
8-24     program for embalming must be served by the person after graduation
8-25     from a school or college of mortuary science.  An applicant shall
8-26     pay a license fee at the time he requests to enter the program.
8-27                       (a-1)  An applicant for a license to practice
 9-1     embalming must make a grade of 75 percent or higher on the written
 9-2     examination used by the department [commission].  [The commission
 9-3     may require an applicant to appear before at least one member of
 9-4     the commission for approval of the person's application.  The
 9-5     approval is subject to review by the entire commission.]  An
 9-6     applicant who has not entered the provisional license program
 9-7     before the second anniversary of the date the applicant took the
 9-8     examination must pass the examination again before receiving a
 9-9     provisional license.
9-10                       (b)  Each provisional embalmer shall be issued a
9-11     provisional license by the department [commission] for a
9-12     provisional license program to be served in the State of Texas.
9-13     During the course of the program, a provisional licensee shall work
9-14     on a minimum of sixty (60) cases.  No more than two (2) provisional
9-15     licensees may receive credit for work on any one body.  The board
9-16     [commission] by rule shall define the standards for a case and
9-17     shall establish the minimum number of complete cases a provisional
9-18     licensee is required to execute during the provisional license
9-19     program.  The standards required for a complete case shall include
9-20     all the duties and activities necessary for embalming.  The board
9-21     [commission] by rule also shall establish guidelines for
9-22     provisional licensee supervision under which a provisional licensee
9-23     is granted increased responsibilities during the course of the
9-24     program.
9-25                       (c)  A provisional embalmer must report to the
9-26     department [commission] within ten (10) days after the end of each
9-27     month each case handled by the provisional embalmer or with which
 10-1    the provisional embalmer assisted in handling during that month.
 10-2    Each such report shall be certified by the licensee under whose
 10-3    personal supervision the provisional embalmer performed the work.
 10-4    For any month in which the provisional embalmer did not embalm at
 10-5    least one (1) case under the personal supervision of a licensed
 10-6    embalmer, a report shall be made to the department [commission]
 10-7    notwithstanding.
 10-8                      (d)  The board [commission] shall set the license
 10-9    and examination fees in an amount that is reasonable and necessary
10-10    for the administration of the program.
10-11                2.  Provisional License for Funeral Director:  The term
10-12    of the provisional license program for a funeral director's license
10-13    shall be a period of not less than twelve (12) months, and may be
10-14    served concurrently with the provisional license program for an
10-15    embalmer's license;  however, the provisional license program must
10-16    be served in twelve (12) consecutive months.  A person desiring to
10-17    become a provisional funeral director shall make application to the
10-18    department [commission] on a form provided by the department
10-19    [commission].  An applicant must be not less than eighteen (18)
10-20    years of age and have completed the educational requirements
10-21    prescribed for a funeral director.  The application for
10-22    registration shall be sworn to and accompanied by a fee.  If the
10-23    application is accepted, an applicant will be issued a provisional
10-24    license upon determination by the department [commission] that his
10-25    qualifications are satisfactory.
10-26                      (a)  An applicant for a funeral director's
10-27    license and the examination therefor shall be admitted to the
 11-1    provisional license program only if the applicant applies for and
 11-2    takes the written examination given by the department [commission],
 11-3    and pays the license fee, whereupon he may be licensed as a
 11-4    provisional funeral director if the applicant otherwise meets the
 11-5    requirements of this Act.  An applicant who has not been licensed
 11-6    as a provisional funeral director before the second anniversary of
 11-7    the date the applicant took the examination must pass the
 11-8    examination again before being licensed as a provisional funeral
 11-9    director.
11-10                      (b)  A provisional funeral director must report
11-11    to the department [commission] within ten (10) days after the end
11-12    of each month each case that the provisional funeral director
11-13    assisted in handling during that month.  Each report shall be
11-14    certified to by the licensee under whom the provisional funeral
11-15    director performed the work.  For any month within which the
11-16    provisional funeral director did not assist a licensed funeral
11-17    director in handling a funeral, a report shall be made to the
11-18    department [commission]  notwithstanding.
11-19                      (c)  The provisional license program shall
11-20    include assisting a licensed funeral director in this state with a
11-21    minimum of sixty (60) cases.  No more than two (2) provisional
11-22    licensees may receive credit for work done on any one body.  The
11-23    board [commission] by rule shall define the standards for a case
11-24    and shall set the number of complete cases a provisional licensee
11-25    is required to execute during the program.  The standards required
11-26    for a complete case shall include all the activities necessary from
11-27    the time the body is obtained until final disposition.  The board
 12-1    [commission] by rule also shall establish guidelines for
 12-2    provisional licensee supervision under which a provisional licensee
 12-3    is granted increased responsibilities during the course of the
 12-4    provisional license program.
 12-5                      (d)  The board [commission] shall set the license
 12-6    and examination fees in an amount that is reasonable and necessary
 12-7    for the administration of the program.
 12-8                      (e)  An applicant for a funeral director license
 12-9    may not be considered for licensure until the applicant completes
12-10    all of the requirements of the provisional license program and
12-11    attains a grade of 75 percent or higher on the written examination
12-12    given by the department [commission].  [The commission may require
12-13    an applicant to appear before at least one member of the commission
12-14    for approval of the person's application.  The approval is subject
12-15    to review by the entire commission.]
12-16                3.  Annual renewal of provisional license:  Each
12-17    provisional license issued by the department [commission] to a
12-18    provisional embalmer or funeral director must be renewed on the
12-19    first day of January of each year and will be renewed upon payment
12-20    by the provisional licensee of a renewal fee, provided the
12-21    provisional licensee has observed the rules and regulations of the
12-22    board [commission].  Notice shall be mailed, during the month of
12-23    December each year, to each provisional licensee at his last known
12-24    address, notifying him that the renewal fee is due.  If a
12-25    provisional licensee fails to pay the annual renewal fee by the due
12-26    date, the department [commission] shall impose a late payment
12-27    penalty equal in amount to the license renewal fee and shall
 13-1    suspend the license for nonpayment and notify the provisional
 13-2    licensee of such suspension.  If the said renewal fee and penalty
 13-3    are not then paid within ninety (90) days from the date of such
 13-4    notice of suspension, the department [commission] shall then cancel
 13-5    the license.  Provided, however, after the license has been
 13-6    cancelled, the provisional licensee may apply for reinstatement
 13-7    within eighteen (18) months from the date the license was cancelled
 13-8    and the department [commission] may reinstate the provisional
 13-9    licensee provided all other requirements of the department
13-10    [commission] are met and the license fee and a late payment penalty
13-11    equal in amount to the license fee for the period of the
13-12    cancellation are paid.  A provisional license may not be renewed
13-13    for more than two (2) years from the date of its issuance unless
13-14    the person requests and receives an extension based on hardship
13-15    from the department [commission].  It is provided that the
13-16    registration fee of any provisional licensee who is actively
13-17    engaged in the military service of the United States may be
13-18    remitted for the duration of such service or for such fees and such
13-19    time as the department [commission] may deem advisable upon
13-20    presentation of proper evidence required by the department
13-21    [commission].   The board [commission]  shall set the renewal fee
13-22    and the penalty in an amount that is reasonable and necessary for
13-23    the administration of this Act.  A provisional license that has
13-24    been cancelled or suspended or has lapsed for a period of five (5)
13-25    years or more may be reinstated only if the applicant takes and
13-26    passes the applicable examinations under Subdivision 1 or 2 of this
13-27    subsection.  The board [commission] may adopt rules relating to the
 14-1    reinstatement of provisional licenses under this subdivision.
 14-2                4.  Notification of the department [commission] upon
 14-3    entry into the provisional license program:  When a provisional
 14-4    licensee enters the employ of a licensed embalmer or funeral
 14-5    director, the provisional licensee shall immediately notify the
 14-6    department [commission] of the name and place of business of the
 14-7    licensed embalmer or funeral director under whom the provisional
 14-8    licensee will train, and such notification shall be signed by the
 14-9    embalmer or funeral director in each case.  If at any time
14-10    thereafter the provisional licensee leaves the employ of the
14-11    licensed embalmer or funeral director, the licensed embalmer or
14-12    funeral director shall give the provisional licensee an affidavit
14-13    showing the length of time the provisional licensee has served and
14-14    the number of cases handled while so employed;  the original of
14-15    said affidavit shall be filed with the department [commission] and
14-16    made a matter of record, and a copy shall be furnished to the
14-17    provisional licensee.  The department [commission] shall furnish
14-18    report forms to be used by each provisional licensee.
14-19                5.  A provisional licensee is subject to the same
14-20    disciplinary actions as a holder of a funeral director or embalmer
14-21    license for a violation of this Act or a rule adopted under this
14-22    Act.
14-23          E.  Any person engaged or desiring to engage in the practice
14-24    of embalming or funeral directing in this state, in connection with
14-25    the care and disposition of dead human bodies, shall make written
14-26    application to the department [commission] for a license
14-27    accompanying same with an application fee.  The license or licenses
 15-1    when issued [shall be signed by a majority of the commission and]
 15-2    shall authorize the licensee to practice the science of embalming
 15-3    and/or funeral directing.  All licenses shall be displayed
 15-4    conspicuously in each place of business at which the licensee
 15-5    practices funeral directing or embalming.  A person may renew an
 15-6    unexpired license by paying to the department [commission] before
 15-7    the expiration date of the license the required renewal fee.  If a
 15-8    person's license has been expired for ninety (90) days or less, the
 15-9    person may renew the license by paying to the department
15-10    [commission] the required renewal fee and a penalty fee that is
15-11    one-half of the renewal fee for the license.  If a person's license
15-12    has been expired for longer than ninety (90) days but less than
15-13    five (5) years, the person may renew the license by paying to the
15-14    department [commission] all unpaid renewal fees and a penalty fee
15-15    that is equal to one-half of the total of the unpaid renewal fees.
15-16    If a person's license has been expired for five (5) years or
15-17    longer, the person may not renew the license.  The person may
15-18    obtain a new license by submitting to reexamination and complying
15-19    with the requirements and procedures for obtaining an original
15-20    license.  However, the department [commission] may renew without
15-21    reexamination an expired license of a person who was licensed in
15-22    this state, moved to another state, and is currently licensed and
15-23    has been in practice in the other state for the two (2) years
15-24    preceding application.  The person must pay to the department
15-25    [commission] a fee that is equal to the renewal fee for the
15-26    license.  At least thirty (30) days before the expiration of a
15-27    person's license, the department [commission] shall send written
 16-1    notice of the impending license expiration to the person at the
 16-2    person's last known address according to the records of the
 16-3    department [commission].  The board [commission] may by rule
 16-4    require continuing education as a condition for license renewal
 16-5    except for persons described in Subdivisions 4 and 5 of this
 16-6    subsection.  If any license issued under this Act is lost or
 16-7    destroyed, the holder of any such license may present his
 16-8    application for duplicate license to the department [commission],
 16-9    on a form to be prescribed by the department [commission], together
16-10    with his affidavit of such loss or destruction, and that he is the
16-11    same person to whom such license was issued, and such other
16-12    information concerning its loss or destruction as the department
16-13    [commission] shall require, and shall, upon payment of a duplicate
16-14    license fee, as determined by the board [commission], be granted a
16-15    duplicate license.
16-16                1.  Any license that has been cancelled or suspended
16-17    for a period of five (5) years or more may be reinstated only after
16-18    the applicant shall have passed a written examination as described
16-19    by Subdivision (2), Subsection C, Section 3 of this Act on
16-20    embalming and/or a written examination, as described by Subdivision
16-21    (2), Subsection B, Section 3 of this Act, on funeral directing.
16-22                2.  The board [commission] by rule may adopt a system
16-23    under which licenses expire on various dates during the year.  All
16-24    dates for sending notice regarding payment of fees and dates for
16-25    license suspension for nonpayment shall be adjusted accordingly.
16-26    For the year in which the license expiration date is changed,
16-27    license fees payable shall be prorated on a monthly basis so that
 17-1    each licensee shall pay only that portion of the license fee which
 17-2    is allocable to the number of months during which the license is
 17-3    valid.  On renewal of the license on the new expiration date, the
 17-4    total license renewal fee is payable.
 17-5                3.  The board [commission] shall set the application
 17-6    fee, license fee, registration fee, and duplicate license fee in an
 17-7    amount that is reasonable and necessary for the administration of
 17-8    this Act.
 17-9                4.  On presentation to the department [commission] of
17-10    evidence as prescribed by the department [commission], a licensee
17-11    who is  actively engaged in the military service of the United
17-12    States is exempted from the payment of registration fees for the
17-13    duration of the military service or from the amount of fees and for
17-14    the time as the department [commission] considers advisable.  The
17-15    department [commission] may not consider the period of military
17-16    service in determining whether or not a license has been cancelled,
17-17    suspended, or lapsed under this subsection.
17-18                5.  A licensee who is at least 65 years of age or has a
17-19    disability of 75 percent or greater at the time the application for
17-20    renewal is submitted may apply for renewal of the license in the
17-21    category of retired, inactive status or retired, active status.  On
17-22    application, the department [commission] may renew the license of a
17-23    retired licensee who does not provide funeral or embalming services
17-24    in the category of retired, inactive status.  The board
17-25    [commission] may not charge a fee for the renewal of a license for
17-26    retired, inactive status.  On application, the department
17-27    [commission] may renew the license of a retired licensee who
 18-1    participates in any manner, nominal or otherwise, in the provision
 18-2    of funeral or embalming services in the category of retired, active
 18-3    status.  The board [commission] shall charge a fee equal to 50
 18-4    percent of the current registration fee charged other active
 18-5    licensees.
 18-6          F.  The department [commission] may waive any license
 18-7    requirement for an applicant with a valid license from another
 18-8    state having license requirements substantially equivalent to those
 18-9    of this state.  An applicant shall pay a reciprocal license fee.
18-10    The person's application shall be accompanied by an affidavit made
18-11    by the appropriate authority [Chairman or Secretary of the
18-12    commission which issued the license, or by a duly constituted
18-13    registration officer] of the state, country, or territory by which
18-14    the certificate or license was granted, and on which the
18-15    application for registration in Texas is based, reciting that the
18-16    accompanying certificate or license has not been cancelled,
18-17    suspended or revoked, and that the statement of the qualifications
18-18    made in the application for a license in Texas is true and correct.
18-19    Applicants for a license under the provisions of this Act shall
18-20    subscribe to an oath in writing before an officer authorized by law
18-21    to administer oaths, which shall be a part of such application,
18-22    stating that the license, certificate, or authority under which the
18-23    applicant practiced as a funeral director or embalmer in the state,
18-24    country, or territory from which the applicant removed, was at the
18-25    time of such removal in full force and effect and not cancelled or
18-26    suspended or revoked.  Said application shall also state that the
18-27    applicant is the identical person to whom the said certificate,
 19-1    license, or commission was issued, and that no proceeding has been
 19-2    instituted against the applicant for the cancellation, suspension
 19-3    or revocation of such certificate or license in the state, country,
 19-4    or territory in which the same was issued; and that no prosecution
 19-5    is pending against the applicant in any state or federal court for
 19-6    any offense which, under the laws of the State of Texas, is a
 19-7    felony, or is a misdemeanor related to the practice of embalming or
 19-8    funeral directing.  The board [commission] shall set the reciprocal
 19-9    license fee in an amount that is reasonable and necessary for the
19-10    administration of this Act.
19-11          H.  The department [commission] may, after a hearing as
19-12    provided by Section 6C of this Act, reprimand, assess an
19-13    administrative penalty, revoke, suspend, or probate the suspension
19-14    of a license or provisional license, or impose any combination of
19-15    these sanctions against a licensed funeral director, a licensed
19-16    embalmer, or a provisional licensee.  The department [commission]
19-17    may assess an administrative penalty without a hearing if the
19-18    penalty is assessed in the manner provided by Section 6G of this
19-19    Act.  Action taken by the department [commission] under this
19-20    section may be based only on a violation of this Act or a rule
19-21    adopted under this Act.  The department [commission] may refuse
19-22    without a hearing to license a person or to permit a person to
19-23    serve as a provisional licensee if the person has violated this Act
19-24    or a rule adopted under this Act.  A person whose license or
19-25    provisional license application is refused under this subsection
19-26    may appeal the decision by requesting a hearing not later than the
19-27    30th day after the date of the refusal.  The department
 20-1    [commission] and the person whose application for license or
 20-2    provisional license is refused may agree to the issuance of a
 20-3    probationary license or the department [commission] may, after a
 20-4    hearing, order that a license be issued on a probationary basis.  A
 20-5    violation of this Act includes the following:
 20-6                1.  The presentation to the department [commission] of
 20-7    any license, certificate, or diploma that was illegally or
 20-8    fraudulently obtained, or when fraud or deception has been
 20-9    practiced in passing the examination;
20-10                2.  Conviction of:
20-11                      (A)  a felony; or
20-12                      (B)  a misdemeanor related to the practice of
20-13    embalming or funeral directing;
20-14                3.  Being unfit to practice as a funeral director
20-15    and/or embalmer by reason of insanity and having been adjudged by a
20-16    court of competent jurisdiction to be of unsound mind;
20-17                4.  The use of any statement that misleads or deceives
20-18    the public, including but not limited to false or misleading
20-19    statements regarding (1) any legal, religious, or cemetery
20-20    requirement for funeral merchandise or funeral services, (2) the
20-21    preservative qualities of funeral merchandise or funeral services
20-22    in preventing or substantially delaying natural decomposition or
20-23    decay of human remains, (3) the airtight or watertight properties
20-24    of a casket or outer enclosure, or (4) representations as to
20-25    licensed personnel in the operation of a funeral establishment;
20-26                5.  The purchase, sale, barter, or use, or any offer to
20-27    purchase, sell, barter, or use any license, certificate, or
 21-1    transcript of license or certificate, in or incident to an
 21-2    application to the department [commission] for license to practice
 21-3    as a funeral director and/or embalmer;
 21-4                6.  Altering, with fraudulent intent, any funeral
 21-5    director and/or embalmer license, certificate, or transcript of
 21-6    license or certificate;
 21-7                7.  The use of any funeral director and/or embalmer
 21-8    license, certificate, diploma or transcript of any such funeral
 21-9    director and/or embalmer license, certificate, or diploma that has
21-10    been fraudulently purchased, issued, counterfeited, or materially
21-11    altered;
21-12                8.  The impersonation of, or acting as proxy for,
21-13    another in any examination required by this Act for a funeral
21-14    director and/or embalmer license;
21-15                9.  The impersonation of a licensed funeral director or
21-16    embalmer as authorized by this Act, or permitting or allowing
21-17    another to use a person's license or certificate to practice as a
21-18    funeral director or embalmer in this state;
21-19                10.  A violation of Chapter 154, Finance Code [Section
21-20    1, 5, or 9, Chapter 512, Acts of the 54th Legislature, Regular
21-21    Session, 1955 (Article 548b, Vernon's Texas Civil Statutes)], or a
21-22    rule adopted under that chapter [Act];
21-23                11.  Taking custody of a dead human body without the
21-24    permission of the person or the agent of the person authorized to
21-25    make funeral arrangements for the deceased, or without the
21-26    permission of the medical examiner or justice of the peace when a
21-27    medical examiner or justice of the peace has jurisdiction over the
 22-1    body under Articles 49.02, 49.03, 49.04, and 49.05, Code of
 22-2    Criminal Procedure, refusing to promptly surrender a dead human
 22-3    body to a person or agent authorized to make funeral arrangements
 22-4    for the deceased, or embalming a body without the express written
 22-5    or oral permission of a person authorized to make funeral
 22-6    arrangements for the deceased or without making a documented
 22-7    reasonable effort over a period of at least three (3) hours to
 22-8    obtain the permission;
 22-9                11A.  Embalming or attempting to embalm without proper
22-10    authority a dead human body.  Evidence of embalming or attempting
22-11    to embalm includes, but is not limited to, the making of any
22-12    incision on the body, the raising of any circulatory vessel of the
22-13    body, or the injection of any chemical into the body;
22-14                12.  Wilfully making any false statement on a
22-15    certificate of death or on a document required by this Act or by a
22-16    rule adopted under this Act;
22-17                13.  Employment directly or indirectly of any
22-18    provisional licensee, agent, assistant, embalmer, funeral director,
22-19    employee, or other person on a part or full-time basis, or on
22-20    commission, for the purpose of soliciting individuals or
22-21    institutions by whose influence dead human bodies may be turned
22-22    over to a particular funeral director, embalmer, or funeral
22-23    establishment;
22-24                14.  Presentation of false certification of work done
22-25    as a provisional licensee;
22-26                15.  Unfitness by reason of present substance abuse;
22-27                16.  Whenever a licensee, provisional licensee, or any
 23-1    other person, whether employee, agent, representative, or one in
 23-2    any manner associated with a funeral establishment engages in
 23-3    solicitation as defined in this Act;
 23-4                17.  Failure by the Funeral Director in Charge to
 23-5    provide licensed personnel for direction or personal supervision
 23-6    for a "first call," as that term is defined in this Act;
 23-7                18.  Misappropriation of any funds held by a licensee,
 23-8    funeral establishment, including its employees and agents, or other
 23-9    depository, that create an obligation to provide a funeral service
23-10    or merchandise, including retention for an unreasonable time of
23-11    excess funds paid by or on behalf of the consumer for which the
23-12    consumer is entitled to a refund;
23-13                19.  Performing acts of funeral directing or embalming,
23-14    as those terms are defined in this Act, that are outside the
23-15    licensed scope and authority of the licensee, or performing acts of
23-16    funeral directing or embalming in a capacity other than that of an
23-17    employee, agent, subcontractor, or assignee of a licensed funeral
23-18    establishment that has contracted to perform those acts;
23-19                20.  Engaging in fraudulent, unprofessional, or
23-20    deceptive conduct in providing funeral services or merchandise to a
23-21    consumer;
23-22                21.  Statement or implication by a funeral director or
23-23    embalmer that a customer's concern with the cost of any funeral
23-24    service or funeral merchandise is improper or indicates a lack of
23-25    respect for the deceased;
23-26                22.  Failure by any person arranging for funeral
23-27    services or merchandise to:
 24-1                      (A)  provide a prospective customer with a copy
 24-2    of the brochure required by Section 6E of this Act at the beginning
 24-3    of the arrangement process;
 24-4                      (B)  provide a retail price list to an individual
 24-5    inquiring in person about any funeral service or merchandise for
 24-6    that person to keep;
 24-7                      (C)  explain to the customer or prospective
 24-8    customer that a contractual agreement for funeral services or
 24-9    merchandise may not be entered into before the presentation of the
24-10    retail price list to that person; or
24-11                      (D)  provide general price information by
24-12    telephone within a reasonable time;
24-13                23.  Failure by any person arranging for funeral
24-14    services or merchandise to provide each customer at the conclusion
24-15    of the arrangement process a written memorandum or funeral purchase
24-16    agreement signed by the funeral director making the arrangements
24-17    itemizing the cost of funeral services and funeral merchandise
24-18    selected by the customer;  however, if the customer selects a
24-19    package arrangement based on unit pricing, the itemization
24-20    requirement is satisfied by providing a written memorandum that
24-21    itemizes the discount provided by the package arrangement.  The use
24-22    of unit pricing does not affect the presentation of the retail
24-23    price list as required by Subdivision 22 of this subsection;
24-24                24.  Restricting, hindering, or attempting to restrict
24-25    or hinder (1) the advertising or disclosure of prices and other
24-26    information regarding the availability of funeral services and
24-27    funeral merchandise that is not unfair or deceptive to consumers,
 25-1    or (2) agreements for funeral services between any consumer or
 25-2    group of consumers and funeral directors or embalmers;
 25-3                25.  Failure to retain and make available to the
 25-4    department [commission], upon request, copies of all price lists,
 25-5    written notices, embalming documents, and memoranda of agreement
 25-6    required by  this Act for two (2) years after the date of their
 25-7    distribution or signing;
 25-8                26.  Violation of this Act, any rule adopted under this
 25-9    Act, an order by the board [commission] revoking, suspending, or
25-10    probating a license, an order assessing an administrative penalty,
25-11    or an agreement to pay an administrative penalty regardless of
25-12    whether the agreement is express or implied by Section 6G(d) of
25-13    this Act;
25-14                27.  Dishonest conduct, wilful conduct, negligence, or
25-15    gross negligence in the practice of embalming or funeral directing
25-16    that is likely to or does deceive, defraud, or otherwise injure the
25-17    public;
25-18                28.  Allowing the use of a dead human body by an
25-19    embalming establishment for research or educational purposes
25-20    without complying with Section 4A of this Act;
25-21                29.  Causing the execution of a document by the use of
25-22    fraud, deceit, or misrepresentation; and
25-23                30.  Allowing the presence or participation of a
25-24    student for credit or satisfaction of academic requirements during
25-25    the embalming of a dead human body without complying with Section
25-26    4A of this Act.
25-27          I.  The board [commission] may issue such rules and
 26-1    regulations as may be necessary or desirable to effect the intent
 26-2    of the provisions of this Section.
 26-3          J.  A person who wishes to apply for a funeral director or
 26-4    embalmer license but has a criminal conviction described by
 26-5    Subsection H.2. of this section, may request a hearing on whether
 26-6    the conviction prevents the department [commission] from issuing a
 26-7    license or provisional license.  A hearing under this subsection
 26-8    must be requested before the person enters mortuary school and
 26-9    shall be conducted as required under Section 6C of this Act.  A
26-10    decision made in a hearing under this subsection, unless modified
26-11    on appeal, is binding on the department [commission] and on the
26-12    person who requests the hearing when the person applies to the
26-13    department [commission] for the license or provisional license.
26-14          SECTION 7.  Section 4, Chapter 251, Acts of the 53rd
26-15    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
26-16    Civil Statutes), is amended to read as follows:
26-17          Sec. 4.  FUNERAL ESTABLISHMENTS.  A.  All funeral
26-18    establishments shall be licensed by the department [commission].
26-19    All licenses shall expire at midnight on September 30th of each
26-20    year.  Funeral establishments shall apply for a license, and upon
26-21    satisfaction to the department [commission] that this Section has
26-22    been complied with and upon receipt of the licensing fee, an
26-23    initial license shall be duly issued to such new establishments.
26-24    Not later than thirty (30) days prior to the expiration date of
26-25    licenses, the department [commission] shall cause to be issued
26-26    notification in writing by mail to each licensed funeral
26-27    establishment that a renewal fee must be paid not later than
 27-1    September 30th before such license shall be renewed, and upon due
 27-2    receipt of such fees all existing licenses shall be considered
 27-3    automatically renewed.  Any establishment which fails to pay its
 27-4    license renewal fee by the due date is subject to a late payment
 27-5    penalty equal in amount to the license renewal fee, and if the
 27-6    delinquency is more than thirty (30) days, the establishment shall
 27-7    not be permitted to operate as a funeral home until it has applied
 27-8    for and has been granted a new license as in the case of original
 27-9    applications and licenses for new funeral establishments.  The
27-10    board [commission] shall set the funeral establishment license fee,
27-11    the renewal fee, and the penalty in an amount that is reasonable
27-12    and necessary for the administration of this Act.
27-13          B.  No funeral establishment shall conduct funeral business
27-14    as intended under this Act unless duly licensed.  The department
27-15    [commission] may refuse to issue an establishment license to an
27-16    individual, partnership, or corporation if the individual, a
27-17    partner, or an officer or director of the corporation:
27-18                (1)  has been convicted of a felony, or a misdemeanor
27-19    related to the practice of embalming or funeral directing;
27-20                (2)  previously held an establishment license that was
27-21    suspended or revoked;
27-22                (3)  has violated this Act, a rule adopted under this
27-23    Act, or Chapter 154, Finance Code [512, Acts of the 54th
27-24    Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
27-25    Civil Statutes)];
27-26                (4)  submits false information on the application for
27-27    an establishment license; or
 28-1                (5)  attempts to avoid a revocation, suspension, or
 28-2    license refusal by subterfuge or other evasive means.
 28-3          C.  Each funeral establishment shall be required to have a
 28-4    physical plant, equipment and personnel consisting of the
 28-5    following:
 28-6                1.  Some facilities in which funeral services may be
 28-7    conducted;
 28-8                2.  A physical plant which meets building standards and
 28-9    fire safety standards of the state and of the municipality in which
28-10    the establishment is located;
28-11                3.  Access to rolling stock consisting of at least one
28-12    motor hearse;
28-13                4.  A preparation room containing facilities,
28-14    equipment, and supplies required by board [commission] rule to
28-15    ensure the provision of adequate embalming services and other
28-16    facilities necessary to comply with the sanitary code of the state
28-17    and the municipality in which the room is located;
28-18                5.  A display containing sufficient merchandise to
28-19    permit reasonable selection, including five (5) or more adult
28-20    caskets, provided that the least expensive casket offered for sale
28-21    by a funeral establishment must be visibly displayed without
28-22    concealment in the same general manner as other caskets are
28-23    displayed;
28-24                6.  Sufficient licensed personnel who will be available
28-25    to conduct the operation of the funeral establishment;
28-26                7.  A physical plant located at a fixed place, and not
28-27    located on any tax-exempt property or cemetery; and
 29-1                8.  A physical plant which meets the health standards
 29-2    or health ordinances of the state and of the municipality in which
 29-3    the establishment is located.
 29-4          It is expressly provided, however, that an establishment
 29-5    which functions solely as a commercial embalmer, as that term is
 29-6    defined in this Act, shall have a commercial embalmers
 29-7    establishment license, but shall not be required to meet the
 29-8    requirements of sub-sections 1 and 5 of this paragraph C.
 29-9          D. 1.  The department [commission] may, after a hearing as
29-10    provided by Section 6C of this Act, reprimand, assess an
29-11    administrative penalty, revoke, suspend, or probate the suspension
29-12    of a license, or impose any combination of these sanctions against
29-13    a licensed funeral establishment.  The department [commission] may
29-14    assess an administrative penalty without a hearing if the penalty
29-15    is assessed as provided by Section 6G of this Act.  Action taken by
29-16    the department [commission] under this section may only be based on
29-17    a violation of this Act or a rule adopted under this Act.  The
29-18    department [commission] may refuse without a hearing to license an
29-19    establishment if an owner of the establishment has committed an act
29-20    listed in Subsection B of this section.  An establishment whose
29-21    license is refused under this subsection may appeal the decision by
29-22    requesting a hearing not later than the 30th day after the date of
29-23    the refusal.  The department [commission] and the establishment
29-24    whose application for license is refused may agree to the issuance
29-25    of a probationary license or the department [commission] may, after
29-26    a hearing, order that a license be issued on a probationary basis.
29-27    A violation of this Act includes the following:
 30-1                      (a)  Failure of a funeral establishment to
 30-2    substantially comply with the provisions of Subsection B or C of
 30-3    this Section.
 30-4                      (b)  Failure by any person associated with the
 30-5    funeral establishment, whether as an employee, agent,
 30-6    subcontractor, assignee, owner, or otherwise, and whether licensed
 30-7    or unlicensed, to comply with this Act or a rule adopted under this
 30-8    Act.
 30-9                      (c)  The use of any advertising statement of a
30-10    character that misleads or deceives the public, or use of, in
30-11    connection with advertisements, the names of persons who do not
30-12    hold a license as a funeral director or embalmer and representing
30-13    them as being so licensed.
30-14                      (d)  Whenever a licensee, provisional licensee,
30-15    or any other person, whether an employee, agent, or representative,
30-16    or one in any manner associated with a funeral establishment shall
30-17    solicit business or offer any inducement, pecuniary or otherwise,
30-18    for the purpose of securing or attempting to secure business for
30-19    such funeral establishment, unless such solicitation is made
30-20    pursuant to a permit issued under Chapter 154, Finance Code, [512,
30-21    Acts of the 54th Legislature, Regular Session, 1955 (Article 548b,
30-22    Vernon's Texas Civil Statutes)].
30-23                      (e)  Failure by the funeral director in charge to
30-24    provide a licensed funeral director for direction or personal
30-25    supervision of a "first call" as that term is defined in this Act.
30-26                      (f)  Any violation by a funeral establishment or
30-27    a person acting on behalf of a funeral establishment or any person
 31-1    directly or indirectly connected with a funeral establishment of
 31-2    Chapter 154, Finance Code, [512, Acts of the 54th Legislature,
 31-3    Regular Session, 1955 (Article 548b, Vernon's Texas Civil
 31-4    Statutes)] or a rule adopted under that chapter [Act].
 31-5                      (g)  Any violation by a funeral establishment or
 31-6    a person acting on behalf of a funeral establishment of Chapter 193
 31-7    or 361, Health and Safety Code.
 31-8                2.  With respect to violations of Subsection D. 1.(b),
 31-9    (c), (d), (e), (f), or (g), the department [commission] may not
31-10    initiate action against a funeral establishment or in regard to the
31-11    license of a funeral establishment if the complaint is based on the
31-12    conduct of employees, agents, or representatives of such
31-13    establishment performed outside the scope and authority of their
31-14    employment or contrary to the instructions of the funeral
31-15    establishment and its management.
31-16          E.  Each funeral establishment shall designate to the
31-17    department [commission] a funeral director in charge, and such
31-18    funeral director in charge shall be directly responsible for the
31-19    funeral directing and embalming business of the licensee.  The
31-20    funeral director in charge is ultimately responsible for compliance
31-21    with the mortuary laws.  The funeral director in charge may be
31-22    charged with a violation of this Act if a violation occurs in the
31-23    funeral establishment.  Any change or changes in such designation
31-24    of funeral director shall be given to the department [commission]
31-25    promptly.
31-26          F.  The board [commission] may issue such rules and
31-27    regulations as shall comply with and shall effect the intent of the
 32-1    provisions of this Section.
 32-2          G.  (1)  Any premises on which funeral directing or embalming
 32-3    is practiced shall be open at all times to inspection for
 32-4    violations of this Act and of Chapters 193 and 361, Health and
 32-5    Safety Code, by any agent of the department [commission] or by any
 32-6    duly authorized agent of the state or of the county or municipality
 32-7    in which the premises are located.  Each licensed funeral
 32-8    establishment shall be thoroughly inspected annually by an agent of
 32-9    the department [commission] or by an agent of the state or a
32-10    political subdivision thereof whom the department [commission] has
32-11    authorized to make inspections on its behalf.  A report of this
32-12    annual inspection shall be filed with the department [commission].
32-13                (2)  Before an agent of the department [commission]
32-14    conducts an inspection of an establishment, the agent shall review
32-15    the inspection reports on the establishment filed with the
32-16    department [commission].  During the inspection, the agent shall
32-17    determine whether previously identified problems have been
32-18    corrected and whether a pattern of violations exists.  The
32-19    department [commission]  shall consider the information from
32-20    inspection reports when the department [commission] determines
32-21    whether a penalty should be imposed against an establishment.
32-22                (3)  When an agent inspects an establishment, the agent
32-23    shall inspect for violations under this Act and under Chapters 193
32-24    and 361, Health and Safety Code.
32-25                (4)  The board [commission] by rule shall establish
32-26    procedures for the inspection of a funeral establishment required
32-27    by this subsection.
 33-1          H.  The department [commission] may require funeral
 33-2    establishments with solid waste disposal and sanitation facilities
 33-3    that have not been inspected by the department [Texas Department of
 33-4    Health] to obtain inspection of those facilities by an entity other
 33-5    than the department [Texas Department of Health].  The board
 33-6    [commission] by rule shall establish procedures for inspections
 33-7    required under this subsection.
 33-8          I. (1)  The department [commission], the Texas Department
 33-9    [State Board] of Insurance, and the Banking Department of Texas
33-10    shall adopt a joint memorandum of understanding relating to prepaid
33-11    funeral services and transactions that:
33-12                      (a)  outlines the responsibilities of each agency
33-13    in regulating these services and transactions;
33-14                      (b)  establishes procedures to be used by each
33-15    agency in referring complaints to one of the other agencies;
33-16                      (c)  establishes procedures to be used by each
33-17    agency in investigating a complaint;
33-18                      (d)  establishes procedures to be used by each
33-19    agency in notifying the other agencies of a complaint or of the
33-20    investigation of a complaint;
33-21                      (e)  specifies actions the agencies regard as
33-22    deceptive trade practices;
33-23                      (f)  specifies the information the agencies
33-24    provide consumers and when that information is to be provided; and
33-25                      (g)  sets the administrative penalties each
33-26    agency imposes for violations.
33-27                (2)  Not later than the last month of each state fiscal
 34-1    year, the department [commission] and other agencies shall review
 34-2    and update the memorandum of understanding.
 34-3                (3)  Each agency by rule shall adopt the memorandum of
 34-4    understanding and all revisions to the memorandum.
 34-5          [J. (1)  The commission and the Texas Department of Health
 34-6    shall adopt a joint memorandum of understanding that:]
 34-7                      [(a)  outlines the responsibilities of each
 34-8    agency in regulating funeral establishment requirements under
 34-9    Chapters 193 and 361, Health and Safety Code;]
34-10                      [(b)  establishes procedures by which each agency
34-11    may refer complaints to the other;]
34-12                      [(c)  establishes procedures by which each agency
34-13    will notify the other of violations by funeral establishments under
34-14    Chapters 193 and 361, Health and Safety Code; and]
34-15                      [(d)  coordinates inspection and enforcement
34-16    efforts by both agencies for measures that funeral establishments
34-17    are required to implement under Chapters 193 and 361, Health and
34-18    Safety Code.]
34-19                [(2)  Not later than the last month of each state
34-20    fiscal year, the commission and the Texas Department of Health
34-21    shall review and update the memorandum of understanding.]
34-22                [(3)  Each agency by rule shall adopt the memorandum of
34-23    understanding and all revisions to the memorandum.]
34-24          SECTION 8.  Subsection (c), Section 4A, Chapter 251, Acts of
34-25    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
34-26    Vernon's Texas Civil Statutes), is amended to read as follows:
34-27          (c)  A copy of the written consent required under Subsection
 35-1    (a)  of this section shall be retained for a minimum of two years
 35-2    by the funeral home and permanently by the school or college of
 35-3    mortuary science.  The records of the funeral home maintained under
 35-4    this subsection shall be reasonably available for inspection by the
 35-5    department [commission], the person who provided the consent, or
 35-6    the next of kin of the deceased person.  The records of the school
 35-7    or college of mortuary science shall be reasonably available for
 35-8    inspection by the department [commission].
 35-9          SECTION 9.  Section 5, Chapter 251, Acts of the 53rd
35-10    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
35-11    Civil Statutes), is amended to read as follows:
35-12          Sec. 5.  RULES.  A.  The board [commission] may adopt rules
35-13    and prescribe forms necessary to administer this Act.
35-14          B.  All rules adopted by the board [commission] are subject
35-15    to Chapter 2001, Government Code [the Administrative Procedure and
35-16    Texas Register Act (Article 6252-13a, Vernon's Texas Civil
35-17    Statutes)].
35-18          SECTION 10.  Section 6, Chapter 251, Acts of the 53rd
35-19    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
35-20    Civil Statutes), is amended to read as follows:
35-21          Sec. 6.  PROBATION, WARNING LETTERS; REINSTATEMENT.  (a)  If
35-22    the department [commission] places on probation a person whose
35-23    license has been suspended, the department [commission] may impose
35-24    conditions  on the probation that are reasonable and related to the
35-25    violation for which the license was suspended.  If the department
35-26    [commission] orders probation, the department [commission] may
35-27    require the licensee:
 36-1                (1)  to report regularly to the department [commission]
 36-2    on matters that are the basis of the probation;
 36-3                (2)  to limit practice to the areas prescribed by the
 36-4    department [commission]; or
 36-5                (3)  to continue or renew professional education until
 36-6    the licensee attains a degree of skill satisfactory to the
 36-7    department [commission] in those areas that are the basis of the
 36-8    probation.
 36-9          (b)  If the department [commission] places a licensee on
36-10    probation, the department [commission] shall notify the licensee in
36-11    writing of the probation.  The department [commission] shall
36-12    furnish the licensee with written probationary orders that detail
36-13    the actions required by the department [commission] of the licensee
36-14    during the period of probation.  The department [commission] shall
36-15    develop and adopt a system to monitor the actions of a licensee
36-16    during the period of probation and to determine whether the
36-17    licensee has complied with the probationary orders.
36-18          (c)  When the department [commission] has conducted an
36-19    investigation that identifies a violation of this Act by a licensee
36-20    and the department [commission] does not assess an administrative
36-21    penalty, issue a reprimand, or impose any other penalty against the
36-22    licensee, the department [commission] shall issue a written warning
36-23    to the licensee.  The warning shall describe the violation
36-24    identified during the investigation and shall state the date by
36-25    which the department [commission] must receive from the licensee a
36-26    written report that describes the measures implemented by the
36-27    licensee to correct the violation and the dates those measures were
 37-1    implemented.  If the department [commission] does not receive the
 37-2    report by the required date, the department [commission] shall
 37-3    assess an administrative penalty, in an amount set by the
 37-4    department [commission], on the licensee for the failure to file
 37-5    the report.
 37-6          (d)  Upon application, the department [commission] may
 37-7    reissue a license to practice as a funeral director or embalmer to
 37-8    a person whose license has been cancelled, suspended, or revoked
 37-9    but such application may not be made prior to one (1) year after
37-10    the cancellation, suspension, or revocation, and shall be made in
37-11    such a manner and form as the department [commission] may require.
37-12    A hearing to determine whether to reissue a license shall be held
37-13    before the board [commission] unless the board [commission]
37-14    requires the hearing to be held before a hearings officer.
37-15          SECTION 11.  Section 6B, Chapter 251, Acts of the 53rd
37-16    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
37-17    Civil Statutes), is amended to read as follows:
37-18          Sec. 6B.  CERTIFICATE FOR FOREIGN STUDENTS.  Any citizen of a
37-19    country other than the United States who has completed a full
37-20    course of mortuary science at a department-approved
37-21    [commission-approved] college in Texas, may upon application to the
37-22    department [commission], and after payment of the same examination
37-23    fee required of others, be given the department [commission]
37-24    examinations in either embalming, funeral directing or both, and,
37-25    upon successfully making the minimum grades required of other
37-26    applicants, may be awarded a "Certificate of Merit" by the
37-27    department [commission].  Such certificate shall in no manner
 38-1    authorize a holder thereof to practice embalming and/or funeral
 38-2    directing in this state unless the holder is otherwise licensed as
 38-3    an embalmer and/or funeral director under the provisions of this
 38-4    Act.
 38-5          SECTION 12.  Section 6C, Chapter 251, Acts of the 53rd
 38-6    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 38-7    Civil Statutes), is amended to read as follows:
 38-8          Sec. 6C.  ADMINISTRATIVE PROCEDURE [AND TEXAS REGISTER] ACT.
 38-9    (a)  A person who is denied a license or provisional license by the
38-10    department [commission] is entitled to a hearing before the
38-11    department [commission] in accordance with Chapter 2001, Government
38-12    Code [the Administrative Procedure and Texas Register Act (Article
38-13    6252-13a, Vernon's Texas Civil Statutes)], if the person requests
38-14    the hearing in writing not later than the 30th day after the date
38-15    the notice of denial is sent.
38-16          (b)  A proceeding conducted by the department [commission]
38-17    relating to the denial of a license or provisional license, the
38-18    suspension or revocation of a license, or the imposition of an
38-19    administrative penalty, other than an administrative penalty
38-20    assessed without a hearing as provided by Section 6G of this Act,
38-21    is governed by Chapter 2001, Government Code [the Administrative
38-22    Procedure and Texas Register Act, as amended (Article 6252-13a,
38-23    Vernon's Texas Civil Statutes)].  Judicial review of the proceeding
38-24    is subject to the substantial evidence rule and is governed by
38-25    Chapter 2001, Government Code [the Administrative Procedure and
38-26    Texas Register Act].
38-27          (c)(1)  A proceeding brought under Subsection (b) of this
 39-1    section may be held before a hearings officer.  The commissioner
 39-2    [executive director] shall set a time and place for the hearing.
 39-3                (2)  The hearings officer must be an attorney licensed
 39-4    in this state.  In the course of a proceeding the hearings officer
 39-5    may:
 39-6                      (A)  administer oaths;
 39-7                      (B)  take testimony;
 39-8                      (C)  rule on questions of evidence;
 39-9                      (D)  make determinations of fact; or
39-10                      (E)  order compliance with proper discovery
39-11    requests.
39-12                (3)  The department [commission] shall provide the
39-13    hearings officer with a written statement of all board [commission]
39-14    rules or policies that govern the proceeding.
39-15                (4)  At the conclusion of the proceeding the hearings
39-16    officer shall make a ruling on the matter accompanied by written
39-17    findings of facts and conclusions of law.
39-18                (5)  The board [commission] shall review the findings
39-19    of fact, conclusions of law, and ruling of the hearings officer
39-20    before making its final ruling in the proceeding.  The board
39-21    [commission] may also review a transcript of the proceeding before
39-22    making its final ruling.  The board [commission] shall adopt the
39-23    ruling of the hearings officer as its ruling unless it finds good
39-24    cause to issue a different ruling.  The board [commission] shall
39-25    explain in writing the reasons for adopting a ruling other than the
39-26    one issued by the hearings officer.
39-27          (d)  The department [commission] shall inform each interested
 40-1    person, including a person filing the complaint, of the right to
 40-2    obtain at that person's cost a tape or transcript of a hearing or
 40-3    proceeding under this section.
 40-4          SECTION 13.  Subsections (a)-(f), Section 6D, Chapter 251,
 40-5    Acts of the 53rd Legislature, Regular Session, 1953 (Article 4582b,
 40-6    Vernon's Texas Civil Statutes), are amended to read as follows:
 40-7          (a)  The department [commission] shall investigate each
 40-8    complaint received by the department [commission] relating to a
 40-9    funeral director, embalmer, apprentice, or funeral establishment.
40-10    The department [commission] shall keep an information file about
40-11    each complaint filed with the department [commission] that the
40-12    department [commission] has authority to resolve.
40-13          (b)  The department [commission] shall include in each
40-14    information file a description of the complaint, the date on which
40-15    the complaint was filed, the name of the complainant, a description
40-16    of any information obtained by the department [commission] after
40-17    investigating the complaint, a description and date of any formal
40-18    actions taken by the department [commission] relating to the
40-19    complaint, a description of the current status of the complaint,
40-20    and other information that the department [commission] considers
40-21    appropriate.
40-22          (c)  If a written complaint is filed with the department
40-23    [commission] that the department [commission] has authority to
40-24    resolve, the department [commission], at least quarterly until
40-25    final disposition of the complaint and on final disposition of the
40-26    complaint, shall notify the parties to the complaint of the status
40-27    of the complaint unless the notice would jeopardize an undercover
 41-1    investigation.
 41-2          (d)  The information file, except for information in the file
 41-3    obtained by the department [commission] after investigating the
 41-4    complaint, is public information.  The information obtained after
 41-5    investigating the complaint is not public information.
 41-6          (e)  If a person files a complaint with the department
 41-7    [commission] relating to a licensed funeral director, embalmer,
 41-8    provisional licensee, or funeral establishment, the department
 41-9    [commission] shall furnish to the person an explanation of the
41-10    remedies that are available to the person under this Act and
41-11    information about appropriate state or local agencies or officials
41-12    with which the person may file a complaint.
41-13          (f)  The department [commission] shall employ or contract for
41-14    the services of one or more persons to investigate complaints of
41-15    consumer interest and other complaints received by the department
41-16    [commission].  A person who is subject to regulation under this Act
41-17    may not serve as an investigator.  To serve in this position in a
41-18    contractual capacity, a person must be licensed as a private
41-19    investigator under state law.  To serve in this position as an
41-20    employee of the department [commission], a person must:
41-21                (1)  hold a current license as a private investigator
41-22    in this state;
41-23                (2)  have been previously licensed under state or
41-24    federal law as a private investigator; or
41-25                (3)  have been previously employed by a local, state,
41-26    or federal law enforcement agency as an investigator.
41-27          SECTION 14.  Section 6E, Chapter 251, Acts of the 53rd
 42-1    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 42-2    Civil Statutes), is amended to read as follows:
 42-3          Sec. 6E.  PUBLIC INFORMATION.  (a)  The department
 42-4    [commission] shall prepare a brochure with information of public
 42-5    interest explaining matters relating to funerals, describing the
 42-6    functions of the department [commission], and describing the
 42-7    department's [commission's] procedures by which public complaints
 42-8    are filed with and resolved by the department [commission].  The
 42-9    department [commission] shall provide each licensed funeral
42-10    establishment with the number of brochures the department
42-11    [commission] considers appropriate.
42-12          (b)  The department [commission] shall make the brochure
42-13    available to the public and appropriate state agencies.
42-14          (c) [(b)]  A licensed funeral director or an agent of the
42-15    funeral establishment shall provide each prospective customer with
42-16    a copy of the brochure when funeral services are discussed.  A
42-17    funeral establishment shall print copies of the brochure if the
42-18    department [commission] is unable to provide the funeral
42-19    establishment with the number of brochures needed by the funeral
42-20    establishment.
42-21          (d) [(c)]  The board [commission] by rule shall establish
42-22    methods by which consumers and service recipients are notified of
42-23    the name, mailing address, and telephone number of the department
42-24    [commission] for the purpose of directing complaints to the
42-25    department [commission].  The department [commission] may provide
42-26    for that notification:
42-27                (1)  on each registration form, application, or written
 43-1    contract for services of an individual or entity regulated under
 43-2    this Act;
 43-3                (2)  on a sign prominently displayed in the place of
 43-4    business of each individual or entity regulated under this Act; or
 43-5                (3)  in a bill for service provided by an individual or
 43-6    entity regulated under this Act.
 43-7          SECTION 15.  Section 6F, Chapter 251, Acts of the 53rd
 43-8    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 43-9    Civil Statutes), is amended to read as follows:
43-10          Sec. 6F.  EX PARTE COMMUNICATIONS.  The board [commissioners]
43-11    and the employees of the department [commission] are subject to the
43-12    provisions of Chapter 2001, Government Code [the Administrative
43-13    Procedure and Texas Register Act, as amended (Article 6252-13a,
43-14    Vernon's Texas Civil Statutes)], relating to ex parte
43-15    communications.
43-16          SECTION 16.  Subsections (a)-(g), Section 6G, Chapter 251,
43-17    Acts of the 53rd Legislature, Regular Session, 1953 (Article 4582b,
43-18    Vernon's Texas Civil Statutes), are amended to read as follows:
43-19          (a)  If the department [commission] determines that a person
43-20    or establishment regulated under this Act has violated this Act or
43-21    a rule adopted under this Act, the department [commission] may
43-22    assess an administrative penalty against that person or
43-23    establishment as a result of a hearing conducted in the manner
43-24    provided by Section 6C of this Act or as provided by this section.
43-25    If an administrative penalty is assessed after a hearing conducted
43-26    under Section 6C of this Act, the department [commission] shall
43-27    follow the procedures described in Subsections (e) through (h) of
 44-1    this section.
 44-2          (b)  The department [commission] may assess the
 44-3    administrative penalty in an amount not less than One Hundred
 44-4    Dollars ($100) or more than Five Thousand Dollars ($5,000) for each
 44-5    act of violation.  In determining the amount of the penalty, the
 44-6    department [commission] shall employ guidelines established by
 44-7    board [commission] rule.
 44-8          (c)  If, after examination of a possible violation and the
 44-9    facts relating to that possible violation, the department
44-10    [commission] concludes that a violation has occurred, the
44-11    department [commission]  shall issue a preliminary report that
44-12    states the facts on which the conclusion is based, the fact that an
44-13    administrative penalty is to be imposed, and the amount to be
44-14    assessed.  Not later than the tenth (10th) day after the day on
44-15    which the department [commission]  issues the preliminary report,
44-16    the department [commission] shall send a copy of the report to the
44-17    person or establishment charged with the violation, together with a
44-18    statement of the right of the person or establishment to a hearing
44-19    relating to the alleged violation and the amount of the penalty.
44-20          (d)  Not later than the thirtieth (30th) day after the date
44-21    on which the preliminary report is sent, the person or
44-22    establishment charged either may make a written request for a
44-23    hearing or may remit the amount of the administrative penalty to
44-24    the department [commission].  Failure either to request a hearing
44-25    or to remit the amount of the penalty within the time provided by
44-26    this subsection results in a waiver of a right to a hearing under
44-27    this Act.  Unless a hearing is requested, the penalty is due on the
 45-1    thirtieth (30th) day after the date the preliminary report is sent.
 45-2    Failure to pay the penalty by that date automatically suspends the
 45-3    affected license for six (6) months.  If the person or
 45-4    establishment charged requests a hearing, the hearing shall be
 45-5    conducted in the manner provided by Section 6C of this Act.
 45-6          (e)(1)  If an administrative penalty is assessed after a
 45-7    hearing conducted under Section 6C of this Act, not later than the
 45-8    thirtieth (30th) day after the date on which the order is sent or a
 45-9    motion for rehearing is denied, the person or establishment charged
45-10    shall pay the administrative penalty in full, or, if the person or
45-11    establishment wishes to contest either the amount of the penalty or
45-12    the fact of the violation, the person or establishment shall not
45-13    later than the thirtieth (30th) day after the date on which the
45-14    order is sent or a motion for rehearing is denied:
45-15                      (A)  remit the assessed amount to the department
45-16    [commission] for deposit in an escrow account; or
45-17                      (B)  post a supersedeas bond in a form approved
45-18    by the department [commission] for the amount of the penalty.
45-19                (2)  If, after judicial review, it is determined that
45-20    no violation occurred or that the amount of the penalty should be
45-21    reduced, the department [commission] shall remit the appropriate
45-22    amount to the person or establishment charged with the violation
45-23    not later than the thirtieth (30th) day after the date on which the
45-24    judicial determination becomes final.
45-25          (f)  Failure to remit the amount of the administrative
45-26    penalty to or post bond with the department [commission] within the
45-27    time provided by this Act results in a waiver of all legal rights
 46-1    to contest the violation or the amount of the penalty.  If the
 46-2    person or establishment fails to remit the amount of the
 46-3    administrative penalty to or post bond with the department
 46-4    [commission] within that time, or within a longer period with the
 46-5    consent of the department [commission], the license of that person
 46-6    or establishment is suspended for six (6) months.  After notice and
 46-7    a hearing, the department [commission] may extend the license
 46-8    suspension for a longer period or may revoke or cancel the license
 46-9    for failure to remit the penalty or post bond.
46-10          (g)  An administrative penalty owed under this Act shall be
46-11    recovered in a civil action brought by the Attorney General at the
46-12    request of the department [commission].
46-13          SECTION 17.  Section 6H, Chapter 251, Acts of the 53rd
46-14    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
46-15    Civil Statutes), is amended to read as follows:
46-16          Sec. 6H.  REPRIMAND.  (a)  If the department [commission]
46-17    determines that a person or establishment regulated under this Act
46-18    has violated this Act or a rule adopted under this Act, the
46-19    department [commission] may issue a reprimand against that person
46-20    or establishment.  The department [commission] may issue the
46-21    reprimand without any other sanction or in conjunction with the
46-22    assessment of an administrative penalty or the revocation,
46-23    suspension, or probation of the license.  The department
46-24    [commission] may issue a letter of reprimand after a hearing
46-25    conducted in the manner provided by Section 6C of this Act or as
46-26    provided by this section.
46-27          (b)  If, after examination of a possible violation and the
 47-1    facts relating to that possible violation, the department
 47-2    [commission] concludes that a violation has occurred, the
 47-3    department [commission]  may issue a preliminary report that states
 47-4    the facts on which the conclusion is based and that a reprimand is
 47-5    to be issued.  If the reprimand is to be issued in addition to the
 47-6    assessment of an administrative penalty under Section 6G of this
 47-7    Act, the preliminary reports may be combined.  Not later than the
 47-8    tenth (10th) day after the day on which the department [commission]
 47-9    issues the preliminary report, the department [commission] shall
47-10    send a copy of the report to the person or establishment charged
47-11    with the violation, together with a statement of the right of the
47-12    person or establishment to a hearing relating to the alleged
47-13    violations.
47-14          (c)  Not later than the thirtieth (30th) day after the date
47-15    on which the preliminary report is sent, the person or
47-16    establishment charged may make a written request for a hearing.
47-17    Failure to request a hearing within the time provided by this
47-18    subsection results in a waiver of a right to a hearing under this
47-19    Act and the reprimand shall be issued by the department
47-20    [commission] and placed in the permanent files of the department
47-21    [commission].  If the person or establishment charged requests a
47-22    hearing, the hearing shall be conducted in the manner provided by
47-23    Section 6C of this Act.  If it is determined after hearing that the
47-24    person or establishment has committed the alleged violation, the
47-25    department [commission] is not limited to the issuance of a
47-26    reprimand but may also take any action allowed under this Act.
47-27          SECTION 18.  Section 6I, Chapter 251, Acts of the 53rd
 48-1    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 48-2    Civil Statutes), is amended to read as follows:
 48-3          Sec. 6I.  REPEAT AND MULTIPLE OFFENDERS.  (a)  The department
 48-4    [commission] or a hearings officer shall review each disciplinary
 48-5    proceeding to determine whether the licensee has committed the same
 48-6    type of violation on one or more previous occasions.  If it is
 48-7    determined that the licensee has previously committed the same type
 48-8    of violation, the department [commission] or hearings officer shall
 48-9    impose a disciplinary action that is more severe than that imposed
48-10    on the previous occasion.
48-11          (b)  In a disciplinary proceeding involving multiple
48-12    violations of this Act, the department [commission] or the hearings
48-13    officer shall impose a disciplinary action that is more severe than
48-14    the disciplinary action that would be imposed cumulatively for each
48-15    of the individual violations.
48-16          SECTION 19.  Subsection (b), Section 7, Chapter 251, Acts of
48-17    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
48-18    Vernon's Texas Civil Statutes), is amended to read as follows:
48-19          (b)  The department [commission] may file a complaint with
48-20    the appropriate governmental authorities to begin prosecution of a
48-21    person who commits an offense under Section 6A of this Act.  The
48-22    department [commission] or any adversely affected party may sue a
48-23    funeral establishment or embalmer or funeral director who fails to
48-24    comply with this Act or a rule adopted under this Act for
48-25    appropriate injunctive relief.  This Act does not affect a remedy
48-26    or enforcement power under other laws.
48-27          SECTION 20.  Section 9, Chapter 251, Acts of the 53rd
 49-1    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 49-2    Civil Statutes), is amended to read as follows:
 49-3          Sec. 9.  CONSTRUCTION WITH OTHER LAW.  This Act does not
 49-4    limit or replace the authority of the Banking Department of Texas
 49-5    to regulate and enforce Chapter 154, Finance Code [512, Acts of the
 49-6    54th Legislature, Regular Session, 1955 (Article 548b, Vernon's
 49-7    Texas Civil Statutes)].  The authority of the department
 49-8    [commission] as to Chapter 154, Finance Code, [512, Acts of the
 49-9    54th Legislature, Regular Session, 1955 (Article 548b, Vernon's
49-10    Texas Civil Statutes), and its subsequent amendments] is limited to
49-11    the imposition of an administrative penalty, issuance of a
49-12    reprimand, or suspension, revocation, or probation of a license
49-13    issued by the department [commission].
49-14          SECTION 21.  Sections 2 and 2A, Chapter 251, Acts of the 53rd
49-15    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
49-16    Civil Statutes), are repealed.
49-17          SECTION 22.  (a)  This Act takes effect September 1, 1999.
49-18          (b)  The Funeral Services Commission is abolished and its
49-19    powers and duties are transferred to the Texas Department of Health
49-20    on the effective date of this Act.  The terms of office of the
49-21    members of the Funeral Services Commission expire on the effective
49-22    date of this Act.
49-23          (c)  A reference in law to the Funeral Services Commission
49-24    means the Texas Department of Health or the Texas Board of Health,
49-25    as applicable.  A reference in law to the executive director of the
49-26    Funeral Services Commission means the commissioner of public
49-27    health.
 50-1          (d)  The Texas Department of Health has all the powers and
 50-2    duties of the abolished commission provided by law.  The Texas
 50-3    Department of Health has all the property, funds, rules, unspent
 50-4    appropriations, documents, rights, and obligations of the abolished
 50-5    commission except to the extent the laws governing the commission's
 50-6    powers and duties are amended by this Act. On the effective date of
 50-7    this Act, the Texas Department of Health shall employ at least
 50-8    seven full-time employees who were employed by the Funeral Services
 50-9    Commission on the day immediately before the effective date of this
50-10    Act.  At least five of those employees must have experience in
50-11    licensing programs and investigations operated by the Funeral
50-12    Services Commission before the effective date of this Act.
50-13          (e)  The rules, policies, procedures, and decisions of the
50-14    abolished commission are continued in effect as rules, policies,
50-15    procedures, and decisions of the Texas Board of Health until
50-16    superseded by a rule or other appropriate action of the Texas Board
50-17    of Health.
50-18          (f)  The validity of a rule, form, or procedure adopted,
50-19    contract or acquisition made, proceeding begun, obligation
50-20    incurred, right accrued, or other action taken by or in connection
50-21    with the authority of the Funeral Services Commission before it is
50-22    abolished under Subsection (b) of this section is not affected by
50-23    this Act.  To the extent those actions continue to have any effect
50-24    on or after September 1, 1999, they are considered to be the
50-25    actions of the Texas Department of Health.
50-26          (g)  The members of the funeral services advisory committee
50-27    created under Section 2B, Chapter 251, Acts of the 53rd
 51-1    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 51-2    Civil Statutes), as added by this Act, shall be appointed not later
 51-3    than December 31, 1999.
 51-4          SECTION 23.  The importance of this legislation and the
 51-5    crowded condition of the calendars in both houses create an
 51-6    emergency and an imperative public necessity that the
 51-7    constitutional rule requiring bills to be read on three several
 51-8    days in each house be suspended, and this rule is hereby suspended.