76R13730 E                           
         By Marchant                                           H.B. No. 3516
         Substitute the following for H.B. No. 3516:
         By Hilderbran                                     C.S.H.B. No. 3516
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of funeral directing and embalming.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection C, Section 1, Chapter 251, Acts of the
 1-5     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
 1-6     Texas Civil Statutes), is amended to read as follows:
 1-7           C.  (1)  The term "first call" shall mean the beginning of
 1-8     the relationship and duty of the funeral director to take charge of
 1-9     a dead human body and have same prepared by embalming, cremation,
1-10     or otherwise, for burial or disposition, provided all laws
1-11     pertaining to public health in this state are complied with.
1-12     "First call" does not include calls made by ambulance, when the
1-13     person dispatching the ambulance does not know whether a dead human
1-14     body is to be picked up.  A dead human body shall be picked up on
1-15     first call only under the direction and personal supervision of a
1-16     licensed funeral director or embalmer.
1-17                 (2)  A dead human body may be transferred without a
1-18     licensed funeral director personally making the transfer:
1-19                       (a)  from one funeral home to another funeral
1-20     home; [and]
1-21                       (b)  from a funeral home to and from a morgue
1-22     where an autopsy is to be performed;
1-23                       (c)  to and from an airport, a crematory, or both
1-24     an airport and a crematory; or
 2-1                       (d)  in [without a licensed funeral director
 2-2     personally making the transfer.  In] circumstances in which there
 2-3     is no reasonable probability that unlicensed personnel will
 2-4     encounter family members or other persons with whom funeral
 2-5     arrangements are normally made by licensed funeral directors or
 2-6     embalmers[, a dead human body may be picked up or transferred
 2-7     without the personal supervision of a funeral director or
 2-8     embalmer].
 2-9                 (3)  Any inadvertent contact with family members or
2-10     other persons shall be restricted to unlicensed personnel
2-11     identifying the employer to the person, arranging an appointment
2-12     with the employer for any person who indicates a desire to make
2-13     funeral arrangements for the deceased, and making any disclosure to
2-14     the person that is required by any federal or state regulation.  A
2-15     funeral director or embalmer who directs the removal or transfer of
2-16     a dead human body without providing personal supervision shall be
2-17     held strictly accountable for compliance with the requirements of
2-18     and exceptions to "first call" as provided by this Act.
2-19           SECTION 2.  Subdivision (1), Subsection A, Section 2, Chapter
2-20     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
2-21     4582b, Vernon's Texas Civil Statutes), is amended to read as
2-22     follows:
2-23                 (1)  There is hereby created the Texas Funeral Service
2-24     Commission, with offices located in Austin, Texas, consisting of
2-25     six [nine (9)] commissioners who shall be citizens of the United
2-26     States and residents of the State of Texas.  Two [Four (4)]
2-27     commissioners must hold a license as both an embalmer and a funeral
 3-1     director [be licensed embalmers or funeral directors] in the State
 3-2     of Texas and each of these commissioners must have a minimum of
 3-3     five [(5)] years, consecutively, of such experience in this state
 3-4     immediately preceding appointment. Four [At least three (3) such
 3-5     licensed commissioners shall be embalmers.  Five (5)] commissioners
 3-6     must be representatives of the general public who are not regulated
 3-7     under this Act and who have consistently shown an interest in
 3-8     supporting consumer protection.  A person is not eligible for
 3-9     appointment as a public member of the commission if the person or
3-10     the person's spouse:
3-11                       (a)  is registered, certified, or licensed by an
3-12     occupational regulatory agency in the field of funeral services;
3-13                       (b)  is employed by or participates in the
3-14     management of a business entity or other organization regulated by
3-15     the commission or receiving funds from the commission;
3-16                       (c)  owns or controls, directly or indirectly,
3-17     any interest in a business entity or other organization regulated
3-18     by the commission or receiving funds from the commission; or
3-19                       (d)  uses or receives a substantial amount of
3-20     tangible goods, services, or funds from the commission, other than
3-21     compensation or reimbursement authorized by law for commission
3-22     membership, attendance, or expenses.
3-23           SECTION 3.  Subdivision (2), Subsection A, Section 2, Chapter
3-24     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
3-25     4582b, Vernon's Texas Civil Statutes), is amended to read as
3-26     follows:
3-27                 (2)  The commissioners shall be appointed by the
 4-1     Governor, by and with the consent of the Senate for staggered terms
 4-2     of six (6) years, with the terms of one-third of the commissioners
 4-3     expiring in each odd-numbered year.  Each commissioner shall be
 4-4     subject to removal by the Governor for neglect of duty,
 4-5     incompetence, or fraudulent or dishonest conduct.  The Governor
 4-6     shall remove from the commission any commissioner whose license to
 4-7     practice funeral directing and/or embalming has been voided,
 4-8     revoked or suspended.  Any vacancy in an unexpired term shall be
 4-9     filled by appointment of the Governor for the unexpired term.  No
4-10     commissioner shall be appointed for more than one (1) full term of
4-11     service, except that a commissioner appointed to fill an unexpired
4-12     term with less than three years remaining in the unexpired term may
4-13     be reappointed to the commission for one full term of service.
4-14           SECTION 4.  Subdivision (5), Subsection A, Section 2, Chapter
4-15     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
4-16     4582b, Vernon's Texas Civil Statutes), is amended to read as
4-17     follows:
4-18                 (5)  Two commissioners may participate in any informal
4-19     conference relating to a case that awaits a hearing as described by
4-20     Section 6C of this Act.  One of the two commissioners must hold
4-21     [be] a license as both a [licensed] funeral director and [or]
4-22     embalmer and one must be a public member of the commission.  A
4-23     commissioner who has a personal or private interest, or is employed
4-24     by an entity with a personal or private interest, in a measure,
4-25     proposal, or decision pending before the commission may not vote or
4-26     participate in an informal conference relating to that interest as
4-27     provided by Section 572.058, Government Code.
 5-1           SECTION 5.  Subdivision (6), Subsection A, Section 2, Chapter
 5-2     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
 5-3     4582b, Vernon's Texas Civil Statutes), is amended to read as
 5-4     follows:
 5-5                 (6)  No person shall be appointed to the commission who
 5-6     is an officer or employee of a corporation or other business entity
 5-7     controlling or operating, directly or indirectly, more than three
 5-8     funeral establishments, if another commissioner is also an officer
 5-9     or employee of the same corporation or other business entity.  A
5-10     violation of this subdivision that occurs after a member is
5-11     appointed constitutes a vacancy of each of those member's
5-12     positions, as of the date of the completion of the merger or other
5-13     agreement.  A vacancy under this subdivision shall be filled by the
5-14     governor as soon as practicable.  A member appointed to fill a
5-15     vacancy under this subdivision serves for the remainder of the
5-16     vacated term.
5-17           SECTION 6.  Subdivision (7), Subsection A, Section 2, Chapter
5-18     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
5-19     4582b, Vernon's Texas Civil Statutes), is amended to read as
5-20     follows:
5-21                 (7)  A person may not serve as a member of the
5-22     commission [or act as the general counsel to the commission] if the
5-23     person is required to register as a lobbyist under Chapter 305,
5-24     Government Code, because of the person's activities for
5-25     compensation on behalf of a profession related to the operation of
5-26     the commission.
5-27           SECTION 7.  Subsection D, Section 2, Chapter 251, Acts of the
 6-1     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
 6-2     Texas Civil Statutes), is amended to read as follows:
 6-3           D.  The Governor shall designate a public member of the
 6-4     commission [one commissioner] as the presiding officer [Chairman]
 6-5     of the commission to serve in that capacity at the pleasure of the
 6-6     Governor.  The commission shall elect, after thirty days [(30)
 6-7     days'] written notice is given to the commissioners, a public
 6-8     member to [Vice-chairman and Secretary from the commissioners who
 6-9     shall] serve as assistant presiding officer for one [(1)] year, or
6-10     until a [their] successor is [shall be] elected and qualified in
6-11     cases of resignation or death.  In the absence of an Executive
6-12     Director, the commission may appoint an acting Executive Director.
6-13     The acting Executive Director shall be bonded to the State of Texas
6-14     in a sum equal to the maximum annual anticipated receipts of the
6-15     commission and any premium payable for such bond shall be paid from
6-16     the funds of the commission; likewise, the commission will require
6-17     a bond of the Executive Director, if any, and such bond shall be
6-18     deposited with the comptroller of the State of Texas.  The
6-19     presiding officer [Chairman] of the commission shall preside at all
6-20     meetings of the commission unless otherwise ordered, and [he] shall
6-21     exercise all duties and performances incident to the office of
6-22     presiding officer [Chairman] of the commission, and in the
6-23     presiding officer's [his] absence the assistant presiding officer
6-24     [Vice-chairman] shall preside.  A majority of the commissioners
6-25     shall constitute a quorum for the transaction of business.
6-26           SECTION 8.  Subsection E, Section 2, Chapter 251, Acts of the
6-27     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
 7-1     Texas Civil Statutes), is amended to read as follows:
 7-2           E. (1)  The commission shall file annually with the Governor
 7-3     and the presiding officer of each house of the legislature a
 7-4     complete and detailed written report accounting for all funds
 7-5     received and disbursed by the commission during the preceding
 7-6     fiscal year.  The annual report must be in the form and reported in
 7-7     the time provided by the General Appropriations Act.
 7-8                 (2)  The commission shall file annually with the
 7-9     Governor a list of the names of all duly licensed funeral
7-10     directors, embalmers, and funeral establishments.  A copy shall be
7-11     filed with the Secretary of State for permanent record, a certified
7-12     copy of which, under the hand of the Secretary of State and the
7-13     state seal, shall be admissible as evidence in all courts.
7-14                 (3)  The commission shall file annually with the
7-15     Governor a written description of the activities of the commission
7-16     during the preceding fiscal year.
7-17                 (4)  The commission shall file annually with the
7-18     governor a report on the commission's compliance with Subsections P
7-19     and Q of this section.
7-20           SECTION 9.  Subsection H, Section 2, Chapter 251, Acts of the
7-21     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
7-22     Texas Civil Statutes), is amended to read as follows:
7-23           H.  The commission may employ such inspectors, and clerical
7-24     and technical assistants[, legal counsel other than the attorney
7-25     general, and an Executive Director,] as may be determined by it to
7-26     be necessary to carry out the provisions of this Act, and the
7-27     terms, conditions and expenses of such employment shall be
 8-1     determined by the commission.  The commission shall employ and
 8-2     supervise an executive director to manage the administrative
 8-3     affairs of the commission under this Act.  The commission shall
 8-4     determine the terms and conditions of the employment and set the
 8-5     salary of the executive director at an amount not to exceed the
 8-6     maximum salary for the position as set in the General
 8-7     Appropriations Act.  The commission may delegate the commissioner's
 8-8     duties to the executive director. The attorney general shall
 8-9     designate at least one employee of the attorney general's office to
8-10     advise the commission and to represent the commission in legal
8-11     proceedings. The commission may not employ legal counsel except as
8-12     provided by Section 402.0212, Government Code.
8-13           SECTION 10.  Subsection K, Section 2, Chapter 251, Acts of
8-14     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
8-15     Vernon's Texas Civil Statutes), is amended to read as follows:
8-16           K.  All meetings, including meetings of the committees of the
8-17     commissioners, [of the commission] shall be open and public. The
8-18     commission shall develop and implement policies that provide the
8-19     public with a reasonable opportunity to appear before the
8-20     commission and to speak on any issue under the jurisdiction of the
8-21     commission.  A member of the public is not required to provide
8-22     notice to the commission before appearing and speaking before the
8-23     commissioner under this subsection.
8-24           SECTION 11.  Subsection L, Section 2, Chapter 251, Acts of
8-25     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
8-26     Vernon's Texas Civil Statutes), is amended to read as follows:
8-27           L.  The commission may issue[, or delegate to the executive
 9-1     director the power to issue,] subpoenas and subpoenas duces tecum.
 9-2     A subpoena or subpoena duces tecum issued under this subsection
 9-3     must be served either by personal service or by certified mail,
 9-4     return receipt requested.  The commission by order may grant the
 9-5     executive director the power to issue subpoenas and subpoenas duces
 9-6     tecum in connection with a complaint under investigation by the
 9-7     commission.
 9-8           SECTION 12.  Subsection O, Section 2, Chapter 251, Acts of
 9-9     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
9-10     Vernon's Texas Civil Statutes), is amended to read as follows:
9-11           O.  The commission is subject to the open meetings law,
9-12     Chapter 551, Government Code [Chapter 271, Acts of the 60th
9-13     Legislature, Regular Session, 1967, as amended (Article 6252-17,
9-14     Vernon's Texas Civil Statutes)], and the Administrative Procedure
9-15     [and Texas Register] Act, Chapter 2001, Government Code [as amended
9-16     (Article 6252-13a, Vernon's Texas Civil Statutes)]. The
9-17     commission's duties under Chapter 551, Government Code, include the
9-18     requirement under Sections 551.021 and 551.022 to prepare and
9-19     maintain the minutes of each open meeting.
9-20           SECTION 13.  Section 2, Chapter 251, Acts of the 53rd
9-21     Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
9-22     Civil Statutes), is amended by adding Subsection V to read as
9-23     follows:
9-24           V.  A request for an opinion under Subchapter C, Chapter 402,
9-25     Government Code, must be approved by a majority of the
9-26     commissioners.
9-27           SECTION 14.  Subsection T, Section 2, Chapter 251, Acts of
 10-1    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
 10-2    Vernon's Texas Civil Statutes), is amended to read as follows:
 10-3          T.  The commission may institute an action in its own name to
 10-4    enjoin the violation of this Act. An action under this subsection
 10-5    is in addition to any other action, proceeding, or remedy
 10-6    authorized by law. In an action under this subsection, the
 10-7    commission shall be represented by the attorney general or[,] a
 10-8    county or district attorney[, or counsel designated and authorized
 10-9    by the commission].
10-10          SECTION 15.  Section 2A(d), Chapter 251, Acts of the 53rd
10-11    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
10-12    Civil Statutes), is amended to read as follows:
10-13          (d)  The programs required under Subsections (a) and (b) of
10-14    this section and a [A] policy statement prepared under Subsection
10-15    (c) of this section must cover an annual period, be updated at
10-16    least annually, and be filed with the Governor's office.
10-17          SECTION 16.  Subsection F, Section 3, Chapter 251, Acts of
10-18    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
10-19    Vernon's Texas Civil Statutes), is amended to read as follows:
10-20          F.  If the applicant meets the requirements established under
10-21    this subsection, the [The] commission shall [may] waive any license
10-22    requirement for an applicant with a [valid] license from another
10-23    state  having license requirements substantially equivalent to
10-24    those of this state and may waive any license requirement for an
10-25    applicant with a license from another state that does not have
10-26    license requirements substantially equivalent to those of this
10-27    state.  An applicant shall pay a reciprocal license fee.  The
 11-1    person's application shall be accompanied by an affidavit made by
 11-2    the presiding officer [Chairman or Secretary] of the commission
 11-3    which issued the license, or by a duly constituted registration
 11-4    officer of the state, country, or territory by which the
 11-5    certificate or license was granted, and on which the application
 11-6    for registration in Texas is based, reciting that the accompanying
 11-7    certificate or license has not been cancelled, suspended or
 11-8    revoked, and that the statement of the qualifications made in the
 11-9    application for a license in Texas is true and correct.  Applicants
11-10    for a license under the provisions of this Act shall subscribe to
11-11    an oath in writing before an officer authorized by law to
11-12    administer oaths, which shall be a part of such application,
11-13    stating that the license, certificate, or authority under which the
11-14    applicant practiced as a funeral director or embalmer in the state,
11-15    country, or territory from which the applicant removed, was at the
11-16    time of such removal in full force and effect and not cancelled or
11-17    suspended or revoked.  Said application shall also state that the
11-18    applicant is the identical person to whom the said certificate,
11-19    license, or commission was issued, and that no proceeding has been
11-20    instituted against the applicant for the cancellation, suspension
11-21    or revocation of such certificate or license in the state, country,
11-22    or territory in which the same was issued; and that no prosecution
11-23    is pending against the applicant in any state or federal court for
11-24    any offense which, under the laws of the State of Texas, is a
11-25    felony, or is a misdemeanor related to the practice of embalming or
11-26    funeral directing.  The commission shall conduct a criminal
11-27    background check on each applicant. An applicant is not eligible
 12-1    for a reciprocal license if the applicant has, in the ten years
 12-2    preceding the date of the reciprocal license application, been
 12-3    finally convicted of a misdemeanor involving moral turpitude or a
 12-4    felony. The commission shall set the reciprocal license fee in an
 12-5    amount that is reasonable and necessary for the administration of
 12-6    this Act.  An applicant for a reciprocal license must:
 12-7                (1)  provide proof that:
 12-8                      (a)  the license is in good standing;
 12-9                      (b)  the applicant has practiced under the
12-10    license for at least:
12-11                            (i)  one year in the state that issued the
12-12    license if that state has license requirements substantially
12-13    equivalent to those of this state; or
12-14                            (ii)  five years in the state that issued
12-15    the license, if that state does not have license requirements
12-16    substantially equivalent to those of this state; and
12-17                      (c)  the applicant has graduated from an
12-18    accredited college of mortuary science; and
12-19                (2)  pass a written examination of not more than 50
12-20    questions on applicable state laws and commission rules, which the
12-21    commission shall administer at each regularly scheduled meeting of
12-22    the commission.
12-23          SECTION 17.  Subsection H, Section 3, Chapter 251, Acts of
12-24    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
12-25    Vernon's Texas Civil Statutes), is amended to read as follows:
12-26          H.  The commission may, after a hearing as provided by
12-27    Section 6C of this Act, reprimand, assess an administrative
 13-1    penalty, revoke, suspend, or probate the suspension of a license or
 13-2    provisional license, or impose any combination of these sanctions
 13-3    against a licensed funeral director, a licensed embalmer, or a
 13-4    provisional licensee.  The commission may assess an administrative
 13-5    penalty before [without] a hearing or a waiver of a right to a
 13-6    hearing if the penalty is assessed in the manner provided by
 13-7    Section 6G of this Act.  Action taken by the commission under this
 13-8    section may be based only on a violation of this Act or a rule
 13-9    adopted under this Act.  The commission may refuse before [without]
13-10    a hearing or a waiver of a right to a hearing to license a person
13-11    or to permit a person to serve as a provisional licensee if the
13-12    person has been found to have violated this Act or a rule adopted
13-13    under this Act.  A person whose license or provisional license
13-14    application is refused under this subsection may appeal the
13-15    decision by requesting a hearing not later than the 30th day after
13-16    the date of the refusal.  The commission and the person whose
13-17    application for license or provisional license is refused may agree
13-18    to the issuance of a probationary license or the commission may,
13-19    after a hearing, order that a license be issued on a probationary
13-20    basis.  A violation of this Act includes the following:
13-21                1.  The presentation to the commission of any license,
13-22    certificate, or diploma that was illegally or fraudulently
13-23    obtained, or when fraud or deception has been practiced in passing
13-24    the examination;
13-25                2.  Conviction of:
13-26                      (A)  a felony; or
13-27                      (B)  a misdemeanor related to the practice of
 14-1    embalming or funeral directing;
 14-2                3.  Being unfit to practice as a funeral director
 14-3    and/or embalmer by reason of insanity and having been adjudged by a
 14-4    court of competent jurisdiction to be of unsound mind;
 14-5                4.  The use of any statement that misleads or deceives
 14-6    the public, including but not limited to false or misleading
 14-7    statements regarding (1) any legal, religious, or cemetery
 14-8    requirement for funeral merchandise or funeral services, (2) the
 14-9    preservative qualities of funeral merchandise or funeral services
14-10    in preventing or substantially delaying natural decomposition or
14-11    decay of human remains, (3) the airtight or watertight properties
14-12    of a casket or outer enclosure, or (4) representations as to
14-13    licensed personnel in the operation of a funeral establishment;
14-14                5.  The purchase, sale, barter, or use, or any offer to
14-15    purchase, sell, barter, or use any license, certificate, or
14-16    transcript of license or certificate, in or incident to an
14-17    application to the commission for license to practice as a funeral
14-18    director and/or embalmer;
14-19                6.  Altering, with fraudulent intent, any funeral
14-20    director and/or embalmer license, certificate, or transcript of
14-21    license or certificate;
14-22                7.  The use of any funeral director and/or embalmer
14-23    license, certificate, diploma or transcript of any such funeral
14-24    director and/or embalmer license, certificate, or diploma that has
14-25    been fraudulently purchased, issued, counterfeited, or materially
14-26    altered;
14-27                8.  The impersonation of, or acting as proxy for,
 15-1    another in any examination required by this Act for a funeral
 15-2    director and/or embalmer license;
 15-3                9.  The impersonation of a licensed funeral director or
 15-4    embalmer as authorized by this Act, or permitting or allowing
 15-5    another to use a person's license or certificate to practice as a
 15-6    funeral director or embalmer in this state;
 15-7                10.  A violation of Chapter 154, Finance Code [Section
 15-8    1, 5, or 9, Chapter 512, Acts of the 54th Legislature, Regular
 15-9    Session, 1955 (Article 548b, Vernon's Texas Civil Statutes)], or a
15-10    rule adopted under that chapter [Act];
15-11                11.  Taking custody of a dead human body without the
15-12    permission of the person or the agent of the person authorized to
15-13    make funeral arrangements for the deceased, or without the
15-14    permission of the medical examiner or justice of the peace when a
15-15    medical examiner or justice of the peace has jurisdiction over the
15-16    body under Articles 49.02, 49.03, 49.04, and 49.05, Code of
15-17    Criminal Procedure, refusing to promptly surrender a dead human
15-18    body to a person or agent authorized to make funeral arrangements
15-19    for the deceased, or embalming a body without the express written
15-20    or oral permission of a person authorized to make funeral
15-21    arrangements for the deceased or without making a documented
15-22    reasonable effort over a period of at least three (3) hours to
15-23    obtain the permission;
15-24                11A.  Embalming or attempting to embalm without proper
15-25    authority a dead human body.  Evidence of embalming or attempting
15-26    to embalm includes, but is not limited to, the making of any
15-27    incision on the body, the raising of any circulatory vessel of the
 16-1    body, or the injection of any chemical into the body;
 16-2                12.  Wilfully making any false statement on a
 16-3    certificate of death or on a document required by this Act or by a
 16-4    rule adopted under this Act;
 16-5                13.  Employment directly or indirectly of any
 16-6    provisional licensee, agent, assistant, embalmer, funeral director,
 16-7    employee, or other person on a part or full-time basis, or on
 16-8    commission, for the purpose of soliciting individuals or
 16-9    institutions by whose influence dead human bodies may be turned
16-10    over to a particular funeral director, embalmer, or funeral
16-11    establishment;
16-12                14.  Presentation of false certification of work done
16-13    as a provisional licensee;
16-14                15.  Unfitness by reason of present substance abuse;
16-15                16.  Whenever a licensee, provisional licensee, or any
16-16    other person, whether employee, agent, representative, or one in
16-17    any manner associated with a funeral establishment engages in
16-18    solicitation as defined in this Act;
16-19                17.  Failure by the Funeral Director in Charge to
16-20    provide licensed personnel for direction or personal supervision
16-21    for a "first call," as that term is defined in this Act;
16-22                18.  Misappropriation of any funds held by a licensee,
16-23    funeral establishment, including its employees and agents, or other
16-24    depository, that create an obligation to provide a funeral service
16-25    or merchandise, including retention for an unreasonable time of
16-26    excess funds paid by or on behalf of the consumer for which the
16-27    consumer is entitled to a refund;
 17-1                19.  Performing acts of funeral directing or embalming,
 17-2    as those terms are defined in this Act, that are outside the
 17-3    licensed scope and authority of the licensee, or performing acts of
 17-4    funeral directing or embalming in a capacity other than that of an
 17-5    employee, agent, subcontractor, or assignee of a licensed funeral
 17-6    establishment that has contracted to perform those acts;
 17-7                20.  Engaging in fraudulent, unprofessional, or
 17-8    deceptive conduct in providing funeral services or merchandise to a
 17-9    consumer;
17-10                21.  Statement or implication by a funeral director or
17-11    embalmer that a customer's concern with the cost of any funeral
17-12    service or funeral merchandise is improper or indicates a lack of
17-13    respect for the deceased;
17-14                22.  Failure by any person arranging for funeral
17-15    services or merchandise to:
17-16                      (A)  provide a prospective customer with a copy
17-17    of the brochure required by Section 6E of this Act at the beginning
17-18    of the arrangement process;
17-19                      (B)  provide a retail price list to an individual
17-20    inquiring in person about any funeral service or merchandise for
17-21    that person to keep;
17-22                      (C)  explain to the customer or prospective
17-23    customer that a contractual agreement for funeral services or
17-24    merchandise may not be entered into before the presentation of the
17-25    retail price list to that person; or
17-26                      (D)  provide general price information by
17-27    telephone within a reasonable time;
 18-1                23.  Failure by any person arranging for funeral
 18-2    services or merchandise to provide each customer at the conclusion
 18-3    of the arrangement process a written memorandum or funeral purchase
 18-4    agreement signed by the funeral director making the arrangements
 18-5    itemizing the cost of funeral services and funeral merchandise
 18-6    selected by the customer;  however, if the customer selects a
 18-7    package arrangement based on unit pricing, the itemization
 18-8    requirement is satisfied by providing a written memorandum that
 18-9    itemizes the discount provided by the package arrangement.  The use
18-10    of unit pricing does not affect the presentation of the retail
18-11    price list as required by Subdivision 22 of this subsection;
18-12                24.  Restricting, hindering, or attempting to restrict
18-13    or hinder (1) the advertising or disclosure of prices and other
18-14    information regarding the availability of funeral services and
18-15    funeral merchandise that is not unfair or deceptive to consumers,
18-16    or (2) agreements for funeral services between any consumer or
18-17    group of consumers and funeral directors or embalmers;
18-18                25.  Failure to retain and make available to the
18-19    commission, upon request, copies of all price lists, written
18-20    notices, embalming documents, and memoranda of agreement required
18-21    by this Act for two (2) years after the date of their distribution
18-22    or signing;
18-23                26.  Violation of this Act, any rule adopted under this
18-24    Act, an order by the commission revoking, suspending, or probating
18-25    a license, an order assessing an administrative penalty, or an
18-26    agreement to pay an administrative penalty [regardless of whether
18-27    the agreement is express or implied by Section 6G(d) of this Act];
 19-1                27.  Dishonest conduct, wilful conduct, negligence, or
 19-2    gross negligence in the practice of embalming or funeral directing
 19-3    that is likely to or does deceive, defraud, or otherwise injure the
 19-4    public;
 19-5                28.  Allowing the use of a dead human body by an
 19-6    embalming establishment for research or educational purposes
 19-7    without complying with Section 4A of this Act;
 19-8                29.  Causing the execution of a document by the use of
 19-9    fraud, deceit, or misrepresentation; and
19-10                30.  Allowing the presence or participation of a
19-11    student for credit or satisfaction of academic requirements during
19-12    the embalming of a dead human body without complying with Section
19-13    4A of this Act.
19-14          SECTION 18.  Subsection I, Section 3, Chapter 251, Acts of
19-15    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
19-16    Vernon's Texas Civil Statutes), is amended to read as follows:
19-17          I.  The commission may issue such rules and regulations as
19-18    may be necessary [or desirable] to effect the intent of the
19-19    provisions of this Section.
19-20          SECTION 19.  Section 4, Chapter 251, Acts of the 53rd
19-21    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
19-22    Civil Statutes), is amended to read as follows:
19-23          Sec. 4.  FUNERAL ESTABLISHMENTS.  A.  All funeral
19-24    establishments shall be licensed by the commission.  All licenses
19-25    shall expire at midnight on September 30th of each year.  Funeral
19-26    establishments shall apply for a license, and upon satisfaction to
19-27    the commission that this Section has been complied with and upon
 20-1    receipt of the licensing fee, an initial license shall be duly
 20-2    issued to such new establishments.  Not later than thirty (30) days
 20-3    prior to the expiration date of licenses, the commission shall
 20-4    cause to be issued notification in writing by mail to each licensed
 20-5    funeral establishment that a renewal fee must be paid not later
 20-6    than September 30th before such license shall be renewed, and upon
 20-7    due receipt of such fees all existing licenses shall be considered
 20-8    automatically renewed.  Any establishment which fails to pay its
 20-9    license renewal fee by the due date is subject to a late payment
20-10    penalty equal in amount to the license renewal fee, and if the
20-11    delinquency is more than thirty (30) days, the establishment shall
20-12    not be permitted to operate as a funeral home until it has applied
20-13    for and has been granted a new license as in the case of original
20-14    applications and licenses for new funeral establishments.  The
20-15    commission shall set the funeral establishment license fee, the
20-16    renewal fee, and the penalty in an amount that is reasonable and
20-17    necessary for the administration of this Act.
20-18          B.  No funeral establishment shall conduct funeral business
20-19    as intended under this Act unless duly licensed.  The commission
20-20    may refuse to issue an establishment license to an individual,
20-21    partnership, or corporation if the individual, a partner, or an
20-22    officer or director of the corporation:
20-23                (1)  has been convicted of a felony, or a misdemeanor
20-24    related to the practice of embalming or funeral directing;
20-25                (2)  previously held an establishment license that was
20-26    suspended or revoked;
20-27                (3)  has violated this Act, a rule adopted under this
 21-1    Act, or Chapter 154, Finance Code [512, Acts of the 54th
 21-2    Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
 21-3    Civil Statutes)];
 21-4                (4)  submits false information on the application for
 21-5    an establishment license; or
 21-6                (5)  attempts to avoid a revocation, suspension, or
 21-7    license refusal by subterfuge or other evasive means.
 21-8          C. 1.  Each funeral establishment shall be required to have a
 21-9    physical plant, equipment and personnel consisting of the
21-10    following:
21-11                      (A) [1.]  Some facilities in which funeral
21-12    services may be conducted;
21-13                      (B) [2.]  A physical plant which meets building
21-14    standards and fire safety standards of the state and of the
21-15    municipality in which the establishment is located;
21-16                      (C) [3.]  Access to rolling stock consisting of
21-17    at least one motor hearse;
21-18                      (D) [4.]  A preparation room containing
21-19    facilities, equipment, and supplies required by commission rule to
21-20    ensure the provision of adequate embalming services and other
21-21    facilities necessary to comply with the sanitary code of the state
21-22    and the municipality in which the room is located;
21-23                      (E) [5.]  A display containing sufficient
21-24    merchandise to permit reasonable selection, including five (5) or
21-25    more adult caskets, provided that the least expensive casket
21-26    offered for sale by a funeral establishment must be visibly
21-27    displayed without concealment in the same general manner as other
 22-1    caskets are displayed;
 22-2                      (F) [6.]  Sufficient licensed personnel who will
 22-3    be available to conduct the operation of the funeral establishment;
 22-4                      (G) [7.]  A physical plant located at a fixed
 22-5    place, and not located on any tax-exempt property or cemetery; and
 22-6                      (H) [8.]  A physical plant which meets the health
 22-7    standards or health ordinances of the state and of the municipality
 22-8    in which the establishment is located.
 22-9                2.  It is expressly provided, however, that an
22-10    establishment which functions solely as a commercial embalmer, as
22-11    that term is defined in this Act, shall have a commercial embalmers
22-12    establishment license, but shall not be required to meet the
22-13    requirements of Paragraphs (A) [sub-sections 1] and (E) [5] of
22-14    Subdivision 1 of this Subsection [paragraph] C.
22-15                3.  An embalming service, whether provided at a funeral
22-16    establishment or other embalming facility licensed under this Act,
22-17    must comply with this Act or a rule adopted under this Act.
22-18          D. 1.  The commission may exempt a funeral establishment from
22-19    the requirements of Subsection C. 1.(D)  of this section if:
22-20                      (A)  the majority owner or designated agent of
22-21    record of a funeral establishment submits a written petition to the
22-22    commission requesting an exemption and stating:
22-23                            (i)  the establishment's name and address;
22-24                            (ii)  that the establishment is located
22-25    within 50 miles of a facility owned by the establishment requesting
22-26    the exemption and at which embalming services may be performed; and
22-27                            (iii)  that no embalming services will be
 23-1    performed at the establishment; and
 23-2                      (B)  the commission determines that the criteria
 23-3    in Paragraph (A) of this subsection have been met.
 23-4                2.  The executive director shall notify the petitioner
 23-5    of the commission's decision.
 23-6                3.  The exemption remains in effect until:
 23-7                      (A)  the establishment is no longer located
 23-8    within 50 miles of a facility owned by the exempt establishment or
 23-9    at which embalming services may be performed; or
23-10                      (B)  an embalming service has been performed at
23-11    the establishment.
23-12          E [D]. 1.  The commission may, after a hearing as provided by
23-13    Section 6C of this Act, reprimand, assess an administrative
23-14    penalty, revoke, suspend, or probate the suspension of a license,
23-15    or impose any combination of these sanctions against a licensed
23-16    funeral establishment.  The commission may assess an administrative
23-17    penalty before [without] a hearing or a waiver of a right to a
23-18    hearing if the penalty is assessed as provided by Section 6G of
23-19    this Act.  Action taken by the commission under this section may
23-20    only be based on a violation of this Act or a rule adopted under
23-21    this Act.  The commission may refuse before [without] a hearing or
23-22    a waiver of a right to a hearing to license an establishment if an
23-23    owner of the establishment has been found to have committed an act
23-24    listed in Subsection B of this section.  An establishment whose
23-25    license is refused under this subsection may appeal the decision by
23-26    requesting a hearing not later than the 30th day after the date of
23-27    the refusal.  The commission and the establishment whose
 24-1    application for license is refused may agree to the issuance of a
 24-2    probationary license or the commission may, after a hearing, order
 24-3    that a license be issued on a probationary basis.  A funeral
 24-4    establishment alleged to have violated this section may waive the
 24-5    right to a hearing as provided by Section 6C of this Act.  A
 24-6    violation of this Act includes the following:
 24-7                      (a)  Failure of a funeral establishment to
 24-8    substantially comply with the provisions of Subsection B or C of
 24-9    this Section.
24-10                      (b)  Failure by any person associated with the
24-11    funeral establishment, whether as an employee, agent,
24-12    subcontractor, assignee, owner, or otherwise, and whether licensed
24-13    or unlicensed, to comply with this Act or a rule adopted under this
24-14    Act.
24-15                      (c)  The use of any advertising statement of a
24-16    character that misleads or deceives the public, or use of, in
24-17    connection with advertisements, the names of persons who do not
24-18    hold a license as a funeral director or embalmer and representing
24-19    them as being so licensed.
24-20                      (d)  Whenever a licensee, provisional licensee,
24-21    or any other person, whether an employee, agent, or representative,
24-22    or one in any manner associated with a funeral establishment shall
24-23    solicit business or offer any inducement, pecuniary or otherwise,
24-24    for the purpose of securing or attempting to secure business for
24-25    such funeral establishment, unless such solicitation is made
24-26    pursuant to a permit issued under Subchapter C, Chapter 154,
24-27    Finance Code [512, Acts of the 54th Legislature, Regular Session,
 25-1    1955 (Article 548b, Vernon's Texas Civil Statutes)].
 25-2                      (e)  Failure by the funeral director in charge to
 25-3    provide a licensed funeral director for direction or personal
 25-4    supervision of a "first call" as that term is defined in this Act.
 25-5                      (f)  Any violation by a funeral establishment or
 25-6    a person acting on behalf of a funeral establishment or any person
 25-7    directly or indirectly connected with a funeral establishment of
 25-8    Chapter 154, Finance Code [512, Acts of the 54th Legislature,
 25-9    Regular Session, 1955 (Article 548b, Vernon's Texas Civil
25-10    Statutes)] or a rule adopted under that chapter [Act].
25-11                      (g)  Any violation by a funeral establishment or
25-12    a person acting on behalf of a funeral establishment of Chapter 193
25-13    or 361, Health and Safety Code.
25-14                2.  With respect to violations of Subsection E [D].
25-15    1.(b), (c), (d), (e), (f), or (g), the commission may not initiate
25-16    action against a funeral establishment or in regard to the license
25-17    of a funeral establishment if the complaint is based on the conduct
25-18    of employees, agents, or representatives of such establishment
25-19    performed outside the scope and authority of their employment or
25-20    contrary to the instructions of the funeral establishment and its
25-21    management.
25-22          F [E].  Each funeral establishment shall designate to the
25-23    commission a funeral director in charge, and such funeral director
25-24    in charge shall be directly responsible for the funeral directing
25-25    and embalming business of the licensee.  The funeral director in
25-26    charge is ultimately responsible for compliance with the mortuary
25-27    laws.  The funeral director in charge may be charged with a
 26-1    violation of this Act if a violation occurs in the funeral
 26-2    establishment.  Any change or changes in such designation of
 26-3    funeral director shall be given to the commission promptly.
 26-4          G [F].  The commission may issue such rules and regulations
 26-5    as shall comply with and shall effect the intent of the provisions
 26-6    of this Section.
 26-7          H [G].  (1) Any premises on which funeral directing or
 26-8    embalming is practiced shall be open at all times to inspection for
 26-9    violations of this Act and of Chapters 193 and 361, Health and
26-10    Safety Code, by any agent of the commission or by any duly
26-11    authorized agent of the state or of the county or municipality in
26-12    which the premises are located.  Each licensed funeral
26-13    establishment shall be thoroughly inspected annually by an agent of
26-14    the commission or by an agent of the state or a political
26-15    subdivision thereof whom the commission has authorized to make
26-16    inspections on its behalf.  A report of this annual inspection
26-17    shall be filed with the commission.
26-18                (2)  Before an agent of the commission conducts an
26-19    inspection of an establishment, the agent shall review the
26-20    inspection reports on the establishment filed with the commission.
26-21    During the inspection, the agent shall determine whether previously
26-22    identified problems have been corrected and whether a pattern of
26-23    violations exists.  The commission shall consider the information
26-24    from inspection reports when the commission determines whether a
26-25    penalty should be imposed against an establishment.
26-26                (3)  When an agent inspects an establishment, the agent
26-27    shall inspect for violations under this Act and under Chapters 193
 27-1    and 361, Health and Safety Code.
 27-2                (4)  The commission by rule shall establish procedures
 27-3    for the inspection of a funeral establishment required by this
 27-4    subsection.
 27-5          I [H].  The commission may require funeral establishments
 27-6    with solid waste disposal and sanitation facilities that have not
 27-7    been inspected by the Texas Department of Health to obtain
 27-8    inspection of those facilities by an entity other than the Texas
 27-9    Department of Health.  The commission by rule shall establish
27-10    procedures for inspections required under this subsection.
27-11          J [I].  (1)  The commission, the Texas Department [State
27-12    Board] of Insurance, and the Banking Department of Texas shall
27-13    adopt a joint memorandum of understanding relating to prepaid
27-14    funeral services and transactions that:
27-15                      (a)  outlines the responsibilities of each agency
27-16    in regulating these services and transactions;
27-17                      (b)  establishes procedures to be used by each
27-18    agency in referring complaints to one of the other agencies;
27-19                      (c)  establishes procedures to be used by each
27-20    agency in investigating a complaint;
27-21                      (d)  establishes procedures to be used by each
27-22    agency in notifying the other agencies of a complaint or of the
27-23    investigation of a complaint;
27-24                      (e)  specifies actions the agencies regard as
27-25    deceptive trade practices;
27-26                      (f)  specifies the information the agencies
27-27    provide consumers and when that information is to be provided; and
 28-1                      (g)  sets the administrative penalties each
 28-2    agency imposes for violations.
 28-3                (2)  Not later than the last month of each state fiscal
 28-4    year, the commission and other agencies shall review and update the
 28-5    memorandum of understanding.
 28-6                (3)  Each agency by rule shall adopt the memorandum of
 28-7    understanding and all revisions to the memorandum.
 28-8          K [J].  (1)  The commission and the Texas Department of
 28-9    Health shall adopt a joint memorandum of understanding that:
28-10                      (a)  outlines the responsibilities of each agency
28-11    in regulating funeral establishment requirements under Chapters 193
28-12    and 361, Health and Safety Code;
28-13                      (b)  establishes procedures by which each agency
28-14    may refer complaints to the other;
28-15                      (c)  establishes procedures by which each agency
28-16    will notify the other of violations by funeral establishments under
28-17    Chapters 193 and 361, Health and Safety Code; and
28-18                      (d)  coordinates inspection and enforcement
28-19    efforts by both agencies for measures that funeral establishments
28-20    are required to implement under Chapters 193 and 361, Health and
28-21    Safety Code.
28-22                (2)  Not later than the last month of each state fiscal
28-23    year, the commission and the Texas Department of Health shall
28-24    review and update the memorandum of understanding.
28-25                (3)  Each agency by rule shall adopt the memorandum of
28-26    understanding and all revisions to the memorandum.
28-27          SECTION 20.  Subsection B, Section 5, Chapter 251, Acts of
 29-1    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
 29-2    Vernon's Texas Civil Statutes), is amended to read as follows:
 29-3          B.  All rules adopted by the commission are subject to the
 29-4    Administrative Procedure [and Texas Register] Act, Chapter 2001,
 29-5    Government Code [(Article 6252-13a, Vernon's Texas Civil
 29-6    Statutes)].
 29-7          SECTION 21.  Section 6C, Chapter 251, Acts of the 53rd
 29-8    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 29-9    Civil Statutes), is amended to read as follows:
29-10          Sec. 6C.  APPLICATION OF ADMINISTRATIVE PROCEDURE [AND TEXAS
29-11    REGISTER] ACT.  (a)  A person who is denied a license or
29-12    provisional license by the commission is entitled to a hearing
29-13    before the commission in accordance with the Administrative
29-14    Procedure [and Texas Register] Act, Chapter 2001, Government Code
29-15    [(Article 6252-13a, Vernon's Texas Civil Statutes)], if the person
29-16    requests the hearing in writing not later than the 30th day after
29-17    the date the notice of denial is sent.
29-18          (b)  A proceeding conducted by the commission relating to the
29-19    denial of a license or provisional license, the suspension or
29-20    revocation of a license, [or] the imposition of an administrative
29-21    penalty, or a reprimand other than an administrative penalty
29-22    assessed before [without] a hearing or a waiver of a hearing as
29-23    provided by Section 6G of this Act, is governed by the
29-24    Administrative Procedure [and Texas Register] Act, Chapter 2001,
29-25    Government Code [as amended (Article 6252-13a, Vernon's Texas Civil
29-26    Statutes)].  Judicial review of the proceeding is subject to the
29-27    substantial evidence rule and is governed by the Administrative
 30-1    Procedure [and Texas Register] Act.
 30-2          (c)(1)  A proceeding brought under Subsection (b) of this
 30-3    section shall [may] be held before an administrative law judge
 30-4    employed by the State Office of Administrative Hearings [a hearings
 30-5    officer].  [The executive director shall set a time and place for
 30-6    the hearing.]
 30-7                (2)  [The hearings officer must be an attorney licensed
 30-8    in this state.]  In the course of a proceeding the administrative
 30-9    law judge [hearings officer] may:
30-10                      (A)  administer oaths;
30-11                      (B)  take testimony;
30-12                      (C)  rule on questions of evidence;
30-13                      (D)  make determinations of fact; or
30-14                      (E)  order compliance with proper discovery
30-15    requests.
30-16                (3)  The commission shall provide the administrative
30-17    law judge [hearings officer] with a written statement of all
30-18    commission rules or policies that govern the proceeding.
30-19                (4)  At the conclusion of the proceeding the
30-20    administrative law judge [hearings officer] shall make a ruling on
30-21    the matter accompanied by written findings of facts and conclusions
30-22    of law.
30-23                (5)  The commission shall review the findings of fact,
30-24    conclusions of law, and ruling of the administrative law judge
30-25    [hearings officer] before making its final ruling in the
30-26    proceeding.  The commission may also review a transcript of the
30-27    proceeding before making its final ruling.  The commission shall
 31-1    adopt the ruling of the administrative law judge [hearings officer]
 31-2    as its ruling unless it finds good cause to issue a different
 31-3    ruling.  The commission shall explain in writing the reasons for
 31-4    adopting a ruling other than the one issued by the administrative
 31-5    law judge [hearings officer].
 31-6          (d)  The commission shall inform each interested person,
 31-7    including a person filing the complaint, of the right to obtain at
 31-8    that person's cost a tape or transcript of a hearing or proceeding
 31-9    under this section.
31-10          (e)  A funeral establishment alleged to have violated this
31-11    Act or a rule adopted under this Act may waive the right to a
31-12    hearing as provided by this section by written notification to the
31-13    commission.
31-14          SECTION 22.  Section 6D, Chapter 251, Acts of the 53rd
31-15    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
31-16    Civil Statutes), is amended to read as follows:
31-17          Sec. 6D.  COMPLAINTS.  (a)  The commission shall investigate
31-18    each complaint received by the commission relating to a funeral
31-19    director, embalmer, apprentice, or funeral establishment. The
31-20    commission shall keep an information file about each complaint
31-21    filed with the commission that the commission has authority to
31-22    resolve.
31-23          (b)  The commission shall include in each information file a
31-24    description of the complaint, the date on which the complaint was
31-25    filed, the name of the complainant, a description of any
31-26    information obtained by the commission after investigating the
31-27    complaint, a description and date of any formal actions taken by
 32-1    the commission relating to the complaint, a description of the
 32-2    current status of the complaint, and other information that the
 32-3    commission considers appropriate.
 32-4          (c)  If a written complaint is filed with the commission that
 32-5    the commission has authority to resolve, the commission, at least
 32-6    quarterly until final disposition of the complaint and on final
 32-7    disposition of the complaint, shall notify the parties to the
 32-8    complaint of the status of the complaint unless the notice would
 32-9    jeopardize an undercover investigation.
32-10          (d)  The information file[, except for information in the
32-11    file obtained by the commission after investigating the complaint,]
32-12    is public information, except for information relating to a
32-13    complaint that has not reached a final disposition.  [The
32-14    information obtained after investigating the complaint is not
32-15    public information.]
32-16          (e)  If a person files a complaint with the commission
32-17    relating to a licensed funeral director, embalmer, provisional
32-18    licensee, or funeral establishment, the commission shall furnish to
32-19    the person an explanation of the remedies that are available to the
32-20    person under this Act and information about appropriate state or
32-21    local agencies or officials with which the person may file a
32-22    complaint.
32-23          (f)  The commission shall employ [or contract for the
32-24    services of] one or more persons to investigate complaints of
32-25    consumer interest and other complaints received by the commission.
32-26    [A person who is subject to regulation under this Act may not serve
32-27    as an investigator.  To serve in this position in a contractual
 33-1    capacity, a person must be licensed as a private investigator under
 33-2    state law.  To serve in this position as an employee of the
 33-3    commission, a person must:]
 33-4                [(1)  hold a current license as a private investigator
 33-5    in this state;]
 33-6                [(2)  have been previously licensed under state or
 33-7    federal law as a private investigator; or]
 33-8                [(3)  have been previously employed by a local, state,
 33-9    or federal law enforcement agency as an investigator.]
33-10          (g)  The complainant is entitled to attend any proceeding
33-11    resulting from the complaint.
33-12          SECTION 23.  Section 6F, Chapter 251, Acts of the 53rd
33-13    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
33-14    Civil Statutes), is amended to read as follows:
33-15          Sec. 6F.  EX PARTE COMMUNICATIONS.  The commissioners and the
33-16    employees of the commission are subject to the provisions of the
33-17    Administrative Procedure [and Texas Register] Act, Chapter 2001,
33-18    Government Code [as amended (Article 6252-13a, Vernon's Texas Civil
33-19    Statutes)], relating to ex parte communications.
33-20          SECTION 24.  Subsections (c) and (e), Section 6G, Chapter
33-21    251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
33-22    4582b, Vernon's Texas Civil Statutes), are amended to read as
33-23    follows:
33-24          (c)  If, after examination of a possible violation and the
33-25    facts relating to that possible violation, the commission concludes
33-26    that a violation has occurred, the commission shall issue a
33-27    preliminary report that states the facts on which the conclusion is
 34-1    based, the fact that an administrative penalty is to be imposed,
 34-2    and the amount to be assessed.  Until an order has been entered
 34-3    after a hearing on the possible violation, the amount to be
 34-4    assessed may be disclosed only to the person or establishment
 34-5    charged with the violation, unless that person or establishment has
 34-6    waived the right to a hearing or paid the amount to the commission.
 34-7    Not later than the tenth (10th) day after the day on which the
 34-8    commission issues the preliminary report, the commission shall send
 34-9    a copy of the report to the person or establishment charged with
34-10    the violation, together with a statement of the right of the person
34-11    or establishment to a hearing relating to the alleged violation and
34-12    the amount of the penalty.
34-13          (e)(1)  If an administrative penalty is assessed after a
34-14    hearing conducted under Section 6C of this Act, not later than the
34-15    thirtieth (30th) day after the date on which the order is sent or a
34-16    motion for rehearing is denied, the person or establishment charged
34-17    shall pay the administrative penalty in full, or[, if] the person
34-18    or establishment may, not later than the 30th day after the date
34-19    the order is sent or a motion for rehearing is denied, [wishes to]
34-20    contest either the amount of the penalty or the fact of the
34-21    violation, but if the penalty that the person or establishment
34-22    wishes to contest is greater than $5,000, the person or
34-23    establishment shall not later than the thirtieth (30th) day after
34-24    the date on which the order is sent or a motion for rehearing is
34-25    denied:
34-26                      (A)  [remit the assessed amount to the commission
34-27    for deposit in an escrow account; or]
 35-1                      [(B)]  post a supersedeas bond in a form approved
 35-2    by the commission for the amount of the penalty; or
 35-3                      (B)  if the person or establishment cannot afford
 35-4    to pay the penalty or file the bond, files an affidavit in the
 35-5    manner required by the Texas Rules of Civil Procedure for a person
 35-6    who cannot afford to file security for costs, subject to the right
 35-7    of the commission to contest the affidavit as provided by those
 35-8    rules.
 35-9                (2)  If, after judicial review, it is determined that
35-10    no violation occurred [or that the amount of the penalty should be
35-11    reduced], the court shall order, when the court's judgment becomes
35-12    final, the release of the bond if the person or establishment gave
35-13    a supersedeas bond.  If the person or establishment gave a
35-14    supersedeas bond and the amount of the penalty is reduced, the
35-15    court shall order the release of the bond after the person or
35-16    establishment pays the reduced amount. [commission shall remit the
35-17    appropriate amount to the person or establishment charged with the
35-18    violation not later than the thirtieth (30th) day after the date on
35-19    which the judicial determination becomes final.]
35-20          SECTION 25.  Section 6H, Chapter 251, Acts of the 53rd
35-21    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
35-22    Civil Statutes), is amended to read as follows:
35-23          Sec. 6H.  REPRIMAND.  [(a)]  If the commission determines
35-24    that a person or establishment regulated under this Act has
35-25    violated this Act or a rule adopted under this Act, the commission
35-26    may issue a reprimand against that person or establishment.  The
35-27    commission may issue the reprimand without any other sanction or in
 36-1    conjunction with the assessment of an administrative penalty or the
 36-2    revocation, suspension, or probation of the license.  The
 36-3    commission may issue a letter of reprimand:
 36-4                (1)  after a hearing conducted in the manner provided
 36-5    by Section 6C of this Act; or
 36-6                (2)  without a hearing if the person or establishment
 36-7    waives a hearing [or as provided by this section].
 36-8          [(b)  If, after examination of a possible violation and the
 36-9    facts relating to that possible violation, the commission concludes
36-10    that a violation has occurred, the commission may issue a
36-11    preliminary report that states the facts on which the conclusion is
36-12    based and that a reprimand is to be issued.  If the reprimand is to
36-13    be issued in addition to the assessment of an administrative
36-14    penalty under Section 6G of this Act, the preliminary reports may
36-15    be combined.  Not later than the tenth (10th) day after the day on
36-16    which the commission issues the preliminary report, the commission
36-17    shall send a copy of the report to the person or establishment
36-18    charged with the violation, together with a statement of the right
36-19    of the person or establishment to a hearing relating to the alleged
36-20    violations.]
36-21          [(c)  Not later than the thirtieth (30th) day after the date
36-22    on which the preliminary report is sent, the person or
36-23    establishment charged may make a written request for a hearing.
36-24    Failure to request a hearing within the time provided by this
36-25    subsection results in a waiver of a right to a hearing under this
36-26    Act and the reprimand shall be issued by the commission and placed
36-27    in the permanent files of the commission.  If the person or
 37-1    establishment charged requests a hearing, the hearing shall be
 37-2    conducted in the manner provided by Section 6C of this Act.  If it
 37-3    is determined after hearing that the person or establishment has
 37-4    committed the alleged violation, the commission is not limited to
 37-5    the issuance of a reprimand but may also take any action allowed
 37-6    under this Act.]
 37-7          SECTION 26.  Section 6I, Chapter 251, Acts of the 53rd
 37-8    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 37-9    Civil Statutes), is amended to read as follows:
37-10          Sec. 6I.  REPEAT AND MULTIPLE OFFENDERS.  (a)  The commission
37-11    or an administrative law judge employed by the State Office of
37-12    Administrative Hearings [a hearings officer] shall review each
37-13    disciplinary proceeding to determine whether the licensee has
37-14    committed the same type of violation on one or more previous
37-15    occasions.  If it is determined that the licensee has previously
37-16    committed the same type of violation, the commission or the
37-17    administrative law judge [hearings officer] shall impose a
37-18    disciplinary action that is more severe than that imposed on the
37-19    previous occasion.
37-20          (b)  In a disciplinary proceeding involving multiple
37-21    violations of this Act, the commission or the administrative law
37-22    judge [hearings officer] shall impose a disciplinary action that is
37-23    more severe than the disciplinary action that would be imposed
37-24    cumulatively for each of the individual violations.
37-25          SECTION 27.  (a)  This Act takes effect September 1, 1999.
37-26          (b)  The changes in law made by this Act apply only to an
37-27    offense committed  on or after the effective date of this Act.  For
 38-1    purposes of this section, an offense is committed before the
 38-2    effective date of this Act if any element of the offense occurs
 38-3    before that date.  An offense committed before the effective date
 38-4    of this Act is covered by the law in effect when the offense was
 38-5    committed, and the former law is continued in effect for that
 38-6    purpose.
 38-7          (c)  The changes in law made by this Act apply only to a
 38-8    proceeding commenced on or after the effective date of this Act.  A
 38-9    proceeding that is commenced before the effective date of this Act
38-10    is governed by the law in effect when the proceeding was commenced,
38-11    and that law is continued in effect for that purpose.
38-12          SECTION 28.  (a)  The terms of the members of the Texas
38-13    Funeral Service Commission serving on the effective date of this
38-14    Act expire, and that policymaking body as it existed immediately
38-15    before the effective date of this Act is abolished on the effective
38-16    date of this Act.
38-17          (b)  As soon as practicable after the effective date of this
38-18    Act, the governor shall make appointments to the Texas Funeral
38-19    Service Commission to accomplish the membership plan for the
38-20    commission established by Section 2, Chapter 251, Acts of the 53rd
38-21    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
38-22    Civil Statutes), as amended by this Act.  This section does not
38-23    prohibit a person who is a member of the commission on the
38-24    effective date of this Act and who possesses the qualifications
38-25    required under Section 2, Chapter 251, Acts of the 53rd
38-26    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
38-27    Civil Statutes), as amended by this Act, from being reappointed to
 39-1    the commission under this subsection.
 39-2          (c)  In making appointments under this section, the governor
 39-3    shall appoint:
 39-4                (1)  two members for terms expiring on February 1,
 39-5    2001;
 39-6                (2)  two members for terms expiring on February 1,
 39-7    2003; and
 39-8                (3)  two members for terms expiring on February 1,
 39-9    2005.
39-10          SECTION 29.  Subsection C, Section 2, Chapter 251, Acts of
39-11    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
39-12    Vernon's Texas Civil Statutes), is amended to read as follows:
39-13          C.  The commission shall meet in Austin, Texas, in regular
39-14    session at least once each calendar quarter [two (2) times] for the
39-15    transaction of business.  Examination for funeral directors and
39-16    embalmers shall be held at least once during each year at such
39-17    times and places as the commission may designate and give due
39-18    notice thereof.  Special meetings or hearings may be held at such
39-19    time and place as may be determined by and upon call of the
39-20    presiding officer [Chairman], assistant presiding officer
39-21    [Vice-chairman], or three (3) members [commissioners].
39-22          SECTION 30.  The importance of this legislation and the
39-23    crowded condition of the calendars in both houses create an
39-24    emergency and an imperative public necessity that the
39-25    constitutional rule requiring bills to be read on three several
39-26    days in each house be suspended, and this rule is hereby suspended.