1-1     By:  Marchant (Senate Sponsor - Carona)               H.B. No. 3516
 1-2           (In the Senate - Received from the House May 7, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on
 1-4     Administration; May 13, 1999, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; May 13, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the regulation of funeral directing and embalming.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subsection C, Section 1, Chapter 251, Acts of the
1-11     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
1-12     Texas Civil Statutes), is amended to read as follows:
1-13           C.  (1)  The term "first call" shall mean the beginning of
1-14     the relationship and duty of the funeral director to take charge of
1-15     a dead human body and have same prepared by embalming, cremation,
1-16     or otherwise, for burial or disposition, provided all laws
1-17     pertaining to public health in this state are complied with.
1-18     "First call" does not include calls made by ambulance, when the
1-19     person dispatching the ambulance does not know whether a dead human
1-20     body is to be picked up.  A dead human body shall be picked up on
1-21     first call only under the direction and personal supervision of a
1-22     licensed funeral director or embalmer.
1-23                 (2)  A dead human body may be transferred without a
1-24     licensed funeral director personally making the transfer:
1-25                       (a)  from one funeral home to another funeral
1-26     home; [and]
1-27                       (b)  from a funeral home to and from a morgue
1-28     where an autopsy is to be performed;
1-29                       (c)  to and from an airport, a crematory, or both
1-30     an airport and a crematory; or
1-31                       (d)  in [without a licensed funeral director
1-32     personally making the transfer.  In] circumstances in which there
1-33     is no reasonable probability that unlicensed personnel will
1-34     encounter family members or other persons with whom funeral
1-35     arrangements are normally made by licensed funeral directors or
1-36     embalmers[, a dead human body may be picked up or transferred
1-37     without the personal supervision of a funeral director or
1-38     embalmer].
1-39                 (3)  Any inadvertent contact with family members or
1-40     other persons shall be restricted to unlicensed personnel
1-41     identifying the employer to the person, arranging an appointment
1-42     with the employer for any person who indicates a desire to make
1-43     funeral arrangements for the deceased, and making any disclosure to
1-44     the person that is required by any federal or state regulation.  A
1-45     funeral director or embalmer who directs the removal or transfer of
1-46     a dead human body without providing personal supervision shall be
1-47     held strictly accountable for compliance with the requirements of
1-48     and exceptions to "first call" as provided by this Act.
1-49           SECTION 2.  Subdivision (1), Subsection A, Section 2, Chapter
1-50     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
1-51     4582b, Vernon's Texas Civil Statutes), is amended to read as
1-52     follows:
1-53                 (1)  There is hereby created the Texas Funeral Service
1-54     Commission, with offices located in Austin, Texas, consisting of
1-55     six [nine (9)] commissioners who shall be citizens of the United
1-56     States and residents of the State of Texas.  Two [Four (4)]
1-57     commissioners must hold a license as both an embalmer and a funeral
1-58     director [be licensed embalmers or funeral directors] in the State
1-59     of Texas and each of these commissioners must have a minimum of
1-60     five [(5)] years, consecutively, of such experience in this state
1-61     immediately preceding appointment. Four [At least three (3) such
1-62     licensed commissioners shall be embalmers.  Five (5)] commissioners
1-63     must be representatives of the general public who are not regulated
1-64     under this Act and who have consistently shown an interest in
 2-1     supporting consumer protection.  A person is not eligible for
 2-2     appointment as a public member of the commission if the person or
 2-3     the person's spouse:
 2-4                       (a)  is registered, certified, or licensed by an
 2-5     occupational regulatory agency in the field of funeral services;
 2-6                       (b)  is employed by or participates in the
 2-7     management of a business entity or other organization regulated by
 2-8     the commission or receiving funds from the commission;
 2-9                       (c)  owns or controls, directly or indirectly,
2-10     any interest in a business entity or other organization regulated
2-11     by the commission or receiving funds from the commission; or
2-12                       (d)  uses or receives a substantial amount of
2-13     tangible goods, services, or funds from the commission, other than
2-14     compensation or reimbursement authorized by law for commission
2-15     membership, attendance, or expenses.
2-16           SECTION 3.  Subdivision (2), Subsection A, Section 2, Chapter
2-17     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
2-18     4582b, Vernon's Texas Civil Statutes), is amended to read as
2-19     follows:
2-20                 (2)  The commissioners shall be appointed by the
2-21     Governor, by and with the consent of the Senate for staggered terms
2-22     of six (6) years, with the terms of one-third of the commissioners
2-23     expiring in each odd-numbered year.  Each commissioner shall be
2-24     subject to removal by the Governor for neglect of duty,
2-25     incompetence, or fraudulent or dishonest conduct.  The Governor
2-26     shall remove from the commission any commissioner whose license to
2-27     practice funeral directing and/or embalming has been voided,
2-28     revoked or suspended.  Any vacancy in an unexpired term shall be
2-29     filled by appointment of the Governor for the unexpired term.  No
2-30     commissioner shall be appointed for more than one (1) full term of
2-31     service, except that a commissioner appointed to fill an unexpired
2-32     term with less than three years remaining in the unexpired term may
2-33     be reappointed to the commission for one full term of service.
2-34           SECTION 4.  Subdivision (5), Subsection A, Section 2, Chapter
2-35     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
2-36     4582b, Vernon's Texas Civil Statutes), is amended to read as
2-37     follows:
2-38                 (5)  Two commissioners may participate in any informal
2-39     conference relating to a case that awaits a hearing as described by
2-40     Section 6C of this Act.  One of the two commissioners must hold
2-41     [be] a license as both a [licensed] funeral director and [or]
2-42     embalmer and one must be a public member of the commission.  A
2-43     commissioner who has a personal or private interest, or is employed
2-44     by an entity with a personal or private interest, in a measure,
2-45     proposal, or decision pending before the commission may not vote or
2-46     participate in an informal conference relating to that interest as
2-47     provided by Section 572.058, Government Code.
2-48           SECTION 5.  Subdivision (6), Subsection A, Section 2, Chapter
2-49     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
2-50     4582b, Vernon's Texas Civil Statutes), is amended to read as
2-51     follows:
2-52                 (6)  No person shall be appointed to the commission who
2-53     is an officer or employee of a corporation or other business entity
2-54     controlling or operating, directly or indirectly, more than three
2-55     funeral establishments, if another commissioner is also an officer
2-56     or employee of the same corporation or other business entity.  A
2-57     violation of this subdivision that occurs after a member is
2-58     appointed constitutes a vacancy of each of those member's
2-59     positions, as of the date of the completion of the merger or other
2-60     agreement.  A vacancy under this subdivision shall be filled by the
2-61     governor as soon as practicable.  A member appointed to fill a
2-62     vacancy under this subdivision serves for the remainder of the
2-63     vacated term.
2-64           SECTION 6.  Subdivision (7), Subsection A, Section 2, Chapter
2-65     251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
2-66     4582b, Vernon's Texas Civil Statutes), is amended to read as
2-67     follows:
2-68                 (7)  A person may not serve as a member of the
2-69     commission [or act as the general counsel to the commission] if the
 3-1     person is required to register as a lobbyist under Chapter 305,
 3-2     Government Code, because of the person's activities for
 3-3     compensation on behalf of a profession related to the operation of
 3-4     the commission.
 3-5           SECTION 7.  Subsection D, Section 2, Chapter 251, Acts of the
 3-6     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
 3-7     Texas Civil Statutes), is amended to read as follows:
 3-8           D.  The Governor shall designate a public member of the
 3-9     commission [one commissioner] as the presiding officer [Chairman]
3-10     of the commission to serve in that capacity at the pleasure of the
3-11     Governor.  The commission shall elect, after thirty days [(30)
3-12     days'] written notice is given to the commissioners, a public
3-13     member to [Vice-chairman and Secretary from the commissioners who
3-14     shall] serve as assistant presiding officer for one [(1)] year, or
3-15     until a [their] successor is [shall be] elected and qualified in
3-16     cases of resignation or death.  In the absence of an Executive
3-17     Director, the commission may appoint an acting Executive Director.
3-18     The acting Executive Director shall be bonded to the State of Texas
3-19     in a sum equal to the maximum annual anticipated receipts of the
3-20     commission and any premium payable for such bond shall be paid from
3-21     the funds of the commission; likewise, the commission will require
3-22     a bond of the Executive Director, if any, and such bond shall be
3-23     deposited with the comptroller of the State of Texas.  The
3-24     presiding officer [Chairman] of the commission shall preside at all
3-25     meetings of the commission unless otherwise ordered, and [he] shall
3-26     exercise all duties and performances incident to the office of
3-27     presiding officer [Chairman] of the commission, and in the
3-28     presiding officer's [his] absence the assistant presiding officer
3-29     [Vice-chairman] shall preside.  A majority of the commissioners
3-30     shall constitute a quorum for the transaction of business.
3-31           SECTION 8.  Subsection E, Section 2, Chapter 251, Acts of the
3-32     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
3-33     Texas Civil Statutes), is amended to read as follows:
3-34           E. (1)  The commission shall file annually with the Governor
3-35     and the presiding officer of each house of the legislature a
3-36     complete and detailed written report accounting for all funds
3-37     received and disbursed by the commission during the preceding
3-38     fiscal year.  The annual report must be in the form and reported in
3-39     the time provided by the General Appropriations Act.
3-40                 (2)  The commission shall file annually with the
3-41     Governor a list of the names of all duly licensed funeral
3-42     directors, embalmers, and funeral establishments.  A copy shall be
3-43     filed with the Secretary of State for permanent record, a certified
3-44     copy of which, under the hand of the Secretary of State and the
3-45     state seal, shall be admissible as evidence in all courts.
3-46                 (3)  The commission shall file annually with the
3-47     Governor a written description of the activities of the commission
3-48     during the preceding fiscal year.
3-49                 (4)  The commission shall file annually with the
3-50     governor a report on the commission's compliance with Subsections P
3-51     and Q of this section.
3-52           SECTION 9.  Subsection H, Section 2, Chapter 251, Acts of the
3-53     53rd Legislature, Regular Session, 1953 (Article 4582b, Vernon's
3-54     Texas Civil Statutes), is amended to read as follows:
3-55           H.  The commission may employ such inspectors, and clerical
3-56     and technical assistants[, legal counsel other than the attorney
3-57     general, and an Executive Director,] as may be determined by it to
3-58     be necessary to carry out the provisions of this Act, and the
3-59     terms, conditions and expenses of such employment shall be
3-60     determined by the commission.  The commission shall employ and
3-61     supervise an executive director to manage the administrative
3-62     affairs of the commission under this Act.  The commission shall
3-63     determine the terms and conditions of the employment and set the
3-64     salary of the executive director at an amount not to exceed the
3-65     maximum salary for the position as set in the General
3-66     Appropriations Act.  The commission may delegate the commissioner's
3-67     duties to the executive director. The attorney general shall
3-68     designate at least one employee of the attorney general's office to
3-69     advise the commission and to represent the commission in legal
 4-1     proceedings. The commission may not employ legal counsel except as
 4-2     provided by Section 402.0212, Government Code.
 4-3           SECTION 10.  Subsection K, Section 2, Chapter 251, Acts of
 4-4     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
 4-5     Vernon's Texas Civil Statutes), is amended to read as follows:
 4-6           K.  All meetings, including meetings of the committees of the
 4-7     commissioners, [of the commission] shall be open and public. The
 4-8     commission shall develop and implement policies that provide the
 4-9     public with a reasonable opportunity to appear before the
4-10     commission and to speak on any issue under the jurisdiction of the
4-11     commission.  A member of the public is not required to provide
4-12     notice to the commission before appearing and speaking before the
4-13     commissioner under this subsection.
4-14           SECTION 11.  Subsection L, Section 2, Chapter 251, Acts of
4-15     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
4-16     Vernon's Texas Civil Statutes), is amended to read as follows:
4-17           L.  The commission may issue[, or delegate to the executive
4-18     director the power to issue,] subpoenas and subpoenas duces tecum.
4-19     A subpoena or subpoena duces tecum issued under this subsection
4-20     must be served either by personal service or by certified mail,
4-21     return receipt requested.  The commission by rule shall establish
4-22     standards that enable the executive director to issue subpoenas and
4-23     subpoenas duces tecum in connection with a complaint under
4-24     investigation by the commission.
4-25           SECTION 12.  Subsection O, Section 2, Chapter 251, Acts of
4-26     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
4-27     Vernon's Texas Civil Statutes), is amended to read as follows:
4-28           O.  The commission is subject to the open meetings law,
4-29     Chapter 551, Government Code [Chapter 271, Acts of the 60th
4-30     Legislature, Regular Session, 1967, as amended (Article 6252-17,
4-31     Vernon's Texas Civil Statutes)], and the Administrative Procedure
4-32     [and Texas Register] Act, Chapter 2001, Government Code [as amended
4-33     (Article 6252-13a, Vernon's Texas Civil Statutes)]. The
4-34     commission's duties under Chapter 551, Government Code, include the
4-35     requirement under Sections 551.021 and 551.022 to prepare and
4-36     maintain the minutes of each open meeting.
4-37           SECTION 13.  Section 2, Chapter 251, Acts of the 53rd
4-38     Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
4-39     Civil Statutes), is amended by adding Subsection V to read as
4-40     follows:
4-41           V.  A request for an opinion under Subchapter C, Chapter 402,
4-42     Government Code, must be approved by a majority of the
4-43     commissioners.
4-44           SECTION 14.  Subsection T, Section 2, Chapter 251, Acts of
4-45     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
4-46     Vernon's Texas Civil Statutes), is amended to read as follows:
4-47           T.  The commission may institute an action in its own name to
4-48     enjoin the violation of this Act. An action under this subsection
4-49     is in addition to any other action, proceeding, or remedy
4-50     authorized by law. In an action under this subsection, the
4-51     commission shall be represented by the attorney general or[,] a
4-52     county or district attorney[, or counsel designated and authorized
4-53     by the commission].
4-54           SECTION 15.  Section 2A(d), Chapter 251, Acts of the 53rd
4-55     Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
4-56     Civil Statutes), is amended to read as follows:
4-57           (d)  The programs required under Subsections (a) and (b) of
4-58     this section and a [A] policy statement prepared under Subsection
4-59     (c) of this section must cover an annual period, be updated at
4-60     least annually, and be filed with the Governor's office.
4-61           SECTION 16.  Subsection F, Section 3, Chapter 251, Acts of
4-62     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
4-63     Vernon's Texas Civil Statutes), is amended to read as follows:
4-64           F.  If the applicant meets the requirements established under
4-65     this subsection, the [The] commission shall [may] waive any license
4-66     requirement for an applicant with a [valid] license from another
4-67     state  having license requirements substantially equivalent to
4-68     those of this state and may waive any license requirement for an
4-69     applicant with a license from another state that does not have
 5-1     license requirements substantially equivalent to those of this
 5-2     state.  An applicant shall pay a reciprocal license fee.  The
 5-3     person's application shall be accompanied by an affidavit made by
 5-4     the presiding officer [Chairman or Secretary] of the commission
 5-5     which issued the license, or by a duly constituted registration
 5-6     officer of the state, country, or territory by which the
 5-7     certificate or license was granted, and on which the application
 5-8     for registration in Texas is based, reciting that the accompanying
 5-9     certificate or license has not been cancelled, suspended or
5-10     revoked, and that the statement of the qualifications made in the
5-11     application for a license in Texas is true and correct.  Applicants
5-12     for a license under the provisions of this Act shall subscribe to
5-13     an oath in writing before an officer authorized by law to
5-14     administer oaths, which shall be a part of such application,
5-15     stating that the license, certificate, or authority under which the
5-16     applicant practiced as a funeral director or embalmer in the state,
5-17     country, or territory from which the applicant removed, was at the
5-18     time of such removal in full force and effect and not cancelled or
5-19     suspended or revoked.  Said application shall also state that the
5-20     applicant is the identical person to whom the said certificate,
5-21     license, or commission was issued, and that no proceeding has been
5-22     instituted against the applicant for the cancellation, suspension
5-23     or revocation of such certificate or license in the state, country,
5-24     or territory in which the same was issued; and that no prosecution
5-25     is pending against the applicant in any state or federal court for
5-26     any offense which, under the laws of the State of Texas, is a
5-27     felony, or is a misdemeanor related to the practice of embalming or
5-28     funeral directing.  The commission shall conduct a criminal
5-29     background check on each applicant. An applicant is not eligible
5-30     for a reciprocal license if the applicant has, in the ten years
5-31     preceding the date of the reciprocal license application, been
5-32     finally convicted of a misdemeanor involving moral turpitude or a
5-33     felony. The commission shall set the reciprocal license fee in an
5-34     amount that is reasonable and necessary for the administration of
5-35     this Act.  An applicant for a reciprocal license must:
5-36                 (1)  provide proof that:
5-37                       (a)  the license is in good standing;
5-38                       (b)  the applicant has practiced under the
5-39     license for at least:
5-40                             (i)  one year in the state that issued the
5-41     license if that state has license requirements substantially
5-42     equivalent to those of this state; or
5-43                             (ii)  five years in the state that issued
5-44     the license, if that state does not have license requirements
5-45     substantially equivalent to those of this state; and
5-46                       (c)  the applicant has graduated from an
5-47     accredited college of mortuary science; and
5-48                 (2)  pass a written examination of not more than 50
5-49     questions on applicable state laws and commission rules, which the
5-50     commission shall administer at each regularly scheduled meeting of
5-51     the commission.
5-52           SECTION 17.  Subsection H, Section 3, Chapter 251, Acts of
5-53     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
5-54     Vernon's Texas Civil Statutes), is amended to read as follows:
5-55           H.  The commission may, after a hearing as provided by
5-56     Section 6C of this Act, reprimand, assess an administrative
5-57     penalty, revoke, suspend, or probate the suspension of a license or
5-58     provisional license, or impose any combination of these sanctions
5-59     against a licensed funeral director, a licensed embalmer, or a
5-60     provisional licensee.  The commission may assess an administrative
5-61     penalty before [without] a hearing or a waiver of a right to a
5-62     hearing if the penalty is assessed in the manner provided by
5-63     Section 6G of this Act.  Action taken by the commission under this
5-64     section may be based only on a violation of this Act or a rule
5-65     adopted under this Act.  The commission may refuse before [without]
5-66     a hearing or a waiver of a right to a hearing to license a person
5-67     or to permit a person to serve as a provisional licensee if the
5-68     person has been found to have violated this Act or a rule adopted
5-69     under this Act.  A person whose license or provisional license
 6-1     application is refused under this subsection may appeal the
 6-2     decision by requesting a hearing not later than the 30th day after
 6-3     the date of the refusal.  The commission and the person whose
 6-4     application for license or provisional license is refused may agree
 6-5     to the issuance of a probationary license or the commission may,
 6-6     after a hearing, order that a license be issued on a probationary
 6-7     basis.  A violation of this Act includes the following:
 6-8                 1.  The presentation to the commission of any license,
 6-9     certificate, or diploma that was illegally or fraudulently
6-10     obtained, or when fraud or deception has been practiced in passing
6-11     the examination;
6-12                 2.  Conviction of:
6-13                       (A)  a felony; or
6-14                       (B)  a misdemeanor related to the practice of
6-15     embalming or funeral directing;
6-16                 3.  Being unfit to practice as a funeral director
6-17     and/or embalmer by reason of insanity and having been adjudged by a
6-18     court of competent jurisdiction to be of unsound mind;
6-19                 4.  The use of any statement that misleads or deceives
6-20     the public, including but not limited to false or misleading
6-21     statements regarding (1) any legal, religious, or cemetery
6-22     requirement for funeral merchandise or funeral services, (2) the
6-23     preservative qualities of funeral merchandise or funeral services
6-24     in preventing or substantially delaying natural decomposition or
6-25     decay of human remains, (3) the airtight or watertight properties
6-26     of a casket or outer enclosure, or (4) representations as to
6-27     licensed personnel in the operation of a funeral establishment;
6-28                 5.  The purchase, sale, barter, or use, or any offer to
6-29     purchase, sell, barter, or use any license, certificate, or
6-30     transcript of license or certificate, in or incident to an
6-31     application to the commission for license to practice as a funeral
6-32     director and/or embalmer;
6-33                 6.  Altering, with fraudulent intent, any funeral
6-34     director and/or embalmer license, certificate, or transcript of
6-35     license or certificate;
6-36                 7.  The use of any funeral director and/or embalmer
6-37     license, certificate, diploma or transcript of any such funeral
6-38     director and/or embalmer license, certificate, or diploma that has
6-39     been fraudulently purchased, issued, counterfeited, or materially
6-40     altered;
6-41                 8.  The impersonation of, or acting as proxy for,
6-42     another in any examination required by this Act for a funeral
6-43     director and/or embalmer license;
6-44                 9.  The impersonation of a licensed funeral director or
6-45     embalmer as authorized by this Act, or permitting or allowing
6-46     another to use a person's license or certificate to practice as a
6-47     funeral director or embalmer in this state;
6-48                 10.  A violation of Chapter 154, Finance Code [Section
6-49     1, 5, or 9, Chapter 512, Acts of the 54th Legislature, Regular
6-50     Session, 1955 (Article 548b, Vernon's Texas Civil Statutes)], or a
6-51     rule adopted under that chapter [Act];
6-52                 11.  Taking custody of a dead human body without the
6-53     permission of the person or the agent of the person authorized to
6-54     make funeral arrangements for the deceased, or without the
6-55     permission of the medical examiner or justice of the peace when a
6-56     medical examiner or justice of the peace has jurisdiction over the
6-57     body under Articles 49.02, 49.03, 49.04, and 49.05, Code of
6-58     Criminal Procedure, refusing to promptly surrender a dead human
6-59     body to a person or agent authorized to make funeral arrangements
6-60     for the deceased, or embalming a body without the express written
6-61     or oral permission of a person authorized to make funeral
6-62     arrangements for the deceased or without making a documented
6-63     reasonable effort over a period of at least three (3) hours to
6-64     obtain the permission;
6-65                 11A.  Embalming or attempting to embalm without proper
6-66     authority a dead human body.  Evidence of embalming or attempting
6-67     to embalm includes, but is not limited to, the making of any
6-68     incision on the body, the raising of any circulatory vessel of the
6-69     body, or the injection of any chemical into the body;
 7-1                 12.  Wilfully making any false statement on a
 7-2     certificate of death or on a document required by this Act or by a
 7-3     rule adopted under this Act;
 7-4                 13.  Employment directly or indirectly of any
 7-5     provisional licensee, agent, assistant, embalmer, funeral director,
 7-6     employee, or other person on a part or full-time basis, or on
 7-7     commission, for the purpose of soliciting individuals or
 7-8     institutions by whose influence dead human bodies may be turned
 7-9     over to a particular funeral director, embalmer, or funeral
7-10     establishment;
7-11                 14.  Presentation of false certification of work done
7-12     as a provisional licensee;
7-13                 15.  Unfitness by reason of present substance abuse;
7-14                 16.  Whenever a licensee, provisional licensee, or any
7-15     other person, whether employee, agent, representative, or one in
7-16     any manner associated with a funeral establishment engages in
7-17     solicitation as defined in this Act;
7-18                 17.  Failure by the Funeral Director in Charge to
7-19     provide licensed personnel for direction or personal supervision
7-20     for a "first call," as that term is defined in this Act;
7-21                 18.  Misappropriation of any funds held by a licensee,
7-22     funeral establishment, including its employees and agents, or other
7-23     depository, that create an obligation to provide a funeral service
7-24     or merchandise, including retention for an unreasonable time of
7-25     excess funds paid by or on behalf of the consumer for which the
7-26     consumer is entitled to a refund;
7-27                 19.  Performing acts of funeral directing or embalming,
7-28     as those terms are defined in this Act, that are outside the
7-29     licensed scope and authority of the licensee, or performing acts of
7-30     funeral directing or embalming in a capacity other than that of an
7-31     employee, agent, subcontractor, or assignee of a licensed funeral
7-32     establishment that has contracted to perform those acts;
7-33                 20.  Engaging in fraudulent, unprofessional, or
7-34     deceptive conduct in providing funeral services or merchandise to a
7-35     consumer;
7-36                 21.  Statement or implication by a funeral director or
7-37     embalmer that a customer's concern with the cost of any funeral
7-38     service or funeral merchandise is improper or indicates a lack of
7-39     respect for the deceased;
7-40                 22.  Failure by any person arranging for funeral
7-41     services or merchandise to:
7-42                       (A)  provide a prospective customer with a copy
7-43     of the brochure required by Section 6E of this Act at the beginning
7-44     of the arrangement process;
7-45                       (B)  provide a retail price list to an individual
7-46     inquiring in person about any funeral service or merchandise for
7-47     that person to keep;
7-48                       (C)  explain to the customer or prospective
7-49     customer that a contractual agreement for funeral services or
7-50     merchandise may not be entered into before the presentation of the
7-51     retail price list to that person; or
7-52                       (D)  provide general price information by
7-53     telephone within a reasonable time;
7-54                 23.  Failure by any person arranging for funeral
7-55     services or merchandise to provide each customer at the conclusion
7-56     of the arrangement process a written memorandum or funeral purchase
7-57     agreement signed by the funeral director making the arrangements
7-58     itemizing the cost of funeral services and funeral merchandise
7-59     selected by the customer;  however, if the customer selects a
7-60     package arrangement based on unit pricing, the itemization
7-61     requirement is satisfied by providing a written memorandum that
7-62     itemizes the discount provided by the package arrangement.  The use
7-63     of unit pricing does not affect the presentation of the retail
7-64     price list as required by Subdivision 22 of this subsection;
7-65                 24.  Restricting, hindering, or attempting to restrict
7-66     or hinder (1) the advertising or disclosure of prices and other
7-67     information regarding the availability of funeral services and
7-68     funeral merchandise that is not unfair or deceptive to consumers,
7-69     or (2) agreements for funeral services between any consumer or
 8-1     group of consumers and funeral directors or embalmers;
 8-2                 25.  Failure to retain and make available to the
 8-3     commission, upon request, copies of all price lists, written
 8-4     notices, embalming documents, and memoranda of agreement required
 8-5     by this Act for two (2) years after the date of their distribution
 8-6     or signing;
 8-7                 26.  Violation of this Act, any rule adopted under this
 8-8     Act, an order by the commission revoking, suspending, or probating
 8-9     a license, an order assessing an administrative penalty, or an
8-10     agreement to pay an administrative penalty [regardless of whether
8-11     the agreement is express or implied by Section 6G(d) of this Act];
8-12                 27.  Dishonest conduct, wilful conduct, negligence, or
8-13     gross negligence in the practice of embalming or funeral directing
8-14     that is likely to or does deceive, defraud, or otherwise injure the
8-15     public;
8-16                 28.  Allowing the use of a dead human body by an
8-17     embalming establishment for research or educational purposes
8-18     without complying with Section 4A of this Act;
8-19                 29.  Causing the execution of a document by the use of
8-20     fraud, deceit, or misrepresentation; and
8-21                 30.  Allowing the presence or participation of a
8-22     student for credit or satisfaction of academic requirements during
8-23     the embalming of a dead human body without complying with Section
8-24     4A of this Act.
8-25           SECTION 18.  Subsection I, Section 3, Chapter 251, Acts of
8-26     the 53rd Legislature, Regular Session, 1953 (Article 4582b,
8-27     Vernon's Texas Civil Statutes), is amended to read as follows:
8-28           I.  The commission may issue such rules and regulations as
8-29     may be necessary [or desirable] to effect the intent of the
8-30     provisions of this Section.
8-31           SECTION 19.  Section 4, Chapter 251, Acts of the 53rd
8-32     Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
8-33     Civil Statutes), is amended to read as follows:
8-34           Sec. 4.  FUNERAL ESTABLISHMENTS.  A.  All funeral
8-35     establishments shall be licensed by the commission.  All licenses
8-36     shall expire at midnight on September 30th of each year.  Funeral
8-37     establishments shall apply for a license, and upon satisfaction to
8-38     the commission that this Section has been complied with and upon
8-39     receipt of the licensing fee, an initial license shall be duly
8-40     issued to such new establishments.  Not later than thirty (30) days
8-41     prior to the expiration date of licenses, the commission shall
8-42     cause to be issued notification in writing by mail to each licensed
8-43     funeral establishment that a renewal fee must be paid not later
8-44     than September 30th before such license shall be renewed, and upon
8-45     due receipt of such fees all existing licenses shall be considered
8-46     automatically renewed.  Any establishment which fails to pay its
8-47     license renewal fee by the due date is subject to a late payment
8-48     penalty equal in amount to the license renewal fee, and if the
8-49     delinquency is more than thirty (30) days, the establishment shall
8-50     not be permitted to operate as a funeral home until it has applied
8-51     for and has been granted a new license as in the case of original
8-52     applications and licenses for new funeral establishments.  The
8-53     commission shall set the funeral establishment license fee, the
8-54     renewal fee, and the penalty in an amount that is reasonable and
8-55     necessary for the administration of this Act.
8-56           B.  No funeral establishment shall conduct funeral business
8-57     as intended under this Act unless duly licensed.  The commission
8-58     may refuse to issue an establishment license to an individual,
8-59     partnership, or corporation if the individual, a partner, or an
8-60     officer or director of the corporation:
8-61                 (1)  has been convicted of a felony, or a misdemeanor
8-62     related to the practice of embalming or funeral directing;
8-63                 (2)  previously held an establishment license that was
8-64     suspended or revoked;
8-65                 (3)  has violated this Act, a rule adopted under this
8-66     Act, or Chapter 154, Finance Code [512, Acts of the 54th
8-67     Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas
8-68     Civil Statutes)];
8-69                 (4)  submits false information on the application for
 9-1     an establishment license; or
 9-2                 (5)  attempts to avoid a revocation, suspension, or
 9-3     license refusal by subterfuge or other evasive means.
 9-4           C. 1.  Each funeral establishment shall be required to have a
 9-5     physical plant, equipment and personnel consisting of the
 9-6     following:
 9-7                       (A) [1.]  Some facilities in which funeral
 9-8     services may be conducted;
 9-9                       (B) [2.]  A physical plant which meets building
9-10     standards and fire safety standards of the state and of the
9-11     municipality in which the establishment is located;
9-12                       (C) [3.]  Access to rolling stock consisting of
9-13     at least one motor hearse;
9-14                       (D)(1) [4.]  A preparation room containing
9-15     facilities, equipment, and supplies required by commission rule to
9-16     ensure the provision of adequate embalming services; and (2) other
9-17     facilities necessary to comply with the sanitary code of the state
9-18     and the municipality in which the room is located;
9-19                       (E) [5.]  A display containing sufficient
9-20     merchandise to permit reasonable selection, including five (5) or
9-21     more adult caskets, provided that the least expensive casket
9-22     offered for sale by a funeral establishment must be visibly
9-23     displayed without concealment in the same general manner as other
9-24     caskets are displayed;
9-25                       (F) [6.]  Sufficient licensed personnel who will
9-26     be available to conduct the operation of the funeral establishment;
9-27                       (G) [7.]  A physical plant located at a fixed
9-28     place, and not located on any tax-exempt property or cemetery; and
9-29                       (H) [8.]  A physical plant which meets the health
9-30     standards or health ordinances of the state and of the municipality
9-31     in which the establishment is located.
9-32                 2.  It is expressly provided, however, that an
9-33     establishment which functions solely as a commercial embalmer, as
9-34     that term is defined in this Act, shall have a commercial embalmers
9-35     establishment license, but shall not be required to meet the
9-36     requirements of Paragraphs (A) [sub-sections 1] and (E) [5] of
9-37     Subdivision 1 of this Subsection [paragraph] C.
9-38                 3.  An embalming service, whether provided at a funeral
9-39     establishment or other embalming facility licensed under this Act,
9-40     must comply with this Act or a rule adopted under this Act.
9-41           D. 1.  The commission may exempt a funeral establishment from
9-42     the requirements of Subsection C. 1.(D)(1) of this section if:
9-43                       (A)  the majority owner or designated agent of
9-44     record of a funeral establishment submits a written petition to the
9-45     commission requesting an exemption and stating:
9-46                             (i)  the establishment's name and address;
9-47                             (ii)  that the establishment is located
9-48     within 50 miles of a facility owned by the establishment requesting
9-49     the exemption and at which embalming services may be performed; and
9-50                             (iii)  that no embalming services will be
9-51     performed at the establishment; and
9-52                       (B)  the commission determines that the criteria
9-53     in Paragraph (A) of this subsection have been met.
9-54                 2.  The executive director shall notify the petitioner
9-55     of the commission's decision.
9-56                 3.  The exemption remains in effect until:
9-57                       (A)  the establishment is no longer located
9-58     within 50 miles of a facility owned by the exempt establishment or
9-59     at which embalming services may be performed; or
9-60                       (B)  an embalming service has been performed at
9-61     the establishment.
9-62           E [D]. 1.  The commission may, after a hearing as provided by
9-63     Section 6C of this Act, reprimand, assess an administrative
9-64     penalty, revoke, suspend, or probate the suspension of a license,
9-65     or impose any combination of these sanctions against a licensed
9-66     funeral establishment.  The commission may assess an administrative
9-67     penalty before [without] a hearing or a waiver of a right to a
9-68     hearing if the penalty is assessed as provided by Section 6G of
9-69     this Act.  Action taken by the commission under this section may
 10-1    only be based on a violation of this Act or a rule adopted under
 10-2    this Act.  The commission may refuse before [without] a hearing or
 10-3    a waiver of a right to a hearing to license an establishment if an
 10-4    owner of the establishment has been found to have committed an act
 10-5    listed in Subsection B of this section.  An establishment whose
 10-6    license is refused under this subsection may appeal the decision by
 10-7    requesting a hearing not later than the 30th day after the date of
 10-8    the refusal.  The commission and the establishment whose
 10-9    application for license is refused may agree to the issuance of a
10-10    probationary license or the commission may, after a hearing, order
10-11    that a license be issued on a probationary basis.  A funeral
10-12    establishment alleged to have violated this section may waive the
10-13    right to a hearing as provided by Section 6C of this Act.  A
10-14    violation of this Act includes the following:
10-15                      (a)  Failure of a funeral establishment to
10-16    substantially comply with the provisions of Subsection B or C of
10-17    this Section.
10-18                      (b)  Failure by any person associated with the
10-19    funeral establishment, whether as an employee, agent,
10-20    subcontractor, assignee, owner, or otherwise, and whether licensed
10-21    or unlicensed, to comply with this Act or a rule adopted under this
10-22    Act.
10-23                      (c)  The use of any advertising statement of a
10-24    character that misleads or deceives the public, or use of, in
10-25    connection with advertisements, the names of persons who do not
10-26    hold a license as a funeral director or embalmer and representing
10-27    them as being so licensed.
10-28                      (d)  Whenever a licensee, provisional licensee,
10-29    or any other person, whether an employee, agent, or representative,
10-30    or one in any manner associated with a funeral establishment shall
10-31    solicit business or offer any inducement, pecuniary or otherwise,
10-32    for the purpose of securing or attempting to secure business for
10-33    such funeral establishment, unless such solicitation is made
10-34    pursuant to a permit issued under Subchapter C, Chapter 154,
10-35    Finance Code [512, Acts of the 54th Legislature, Regular Session,
10-36    1955 (Article 548b, Vernon's Texas Civil Statutes)].
10-37                      (e)  Failure by the funeral director in charge to
10-38    provide a licensed funeral director for direction or personal
10-39    supervision of a "first call" as that term is defined in this Act.
10-40                      (f)  Any violation by a funeral establishment or
10-41    a person acting on behalf of a funeral establishment or any person
10-42    directly or indirectly connected with a funeral establishment of
10-43    Chapter 154, Finance Code [512, Acts of the 54th Legislature,
10-44    Regular Session, 1955 (Article 548b, Vernon's Texas Civil
10-45    Statutes)] or a rule adopted under that chapter [Act].
10-46                      (g)  Any violation by a funeral establishment or
10-47    a person acting on behalf of a funeral establishment of Chapter 193
10-48    or 361, Health and Safety Code.
10-49                2.  With respect to violations of Subsection E [D].
10-50    1.(b), (c), (d), (e), (f), or (g), the commission may not initiate
10-51    action against a funeral establishment or in regard to the license
10-52    of a funeral establishment if the complaint is based on the conduct
10-53    of employees, agents, or representatives of such establishment
10-54    performed outside the scope and authority of their employment or
10-55    contrary to the instructions of the funeral establishment and its
10-56    management.
10-57          F [E].  Each funeral establishment shall designate to the
10-58    commission a funeral director in charge, and such funeral director
10-59    in charge shall be directly responsible for the funeral directing
10-60    and embalming business of the licensee.  The funeral director in
10-61    charge is ultimately responsible for compliance with the mortuary
10-62    laws.  The funeral director in charge may be charged with a
10-63    violation of this Act if a violation occurs in the funeral
10-64    establishment.  Any change or changes in such designation of
10-65    funeral director shall be given to the commission promptly.
10-66          G [F].  The commission may issue such rules and regulations
10-67    as shall comply with and shall effect the intent of the provisions
10-68    of this Section.
10-69          H [G].  (1) Any premises on which funeral directing or
 11-1    embalming is practiced shall be open at all times to inspection for
 11-2    violations of this Act and of Chapters 193 and 361, Health and
 11-3    Safety Code, by any agent of the commission or by any duly
 11-4    authorized agent of the state or of the county or municipality in
 11-5    which the premises are located.  Each licensed funeral
 11-6    establishment shall be thoroughly inspected annually by an agent of
 11-7    the commission or by an agent of the state or a political
 11-8    subdivision thereof whom the commission has authorized to make
 11-9    inspections on its behalf.  A report of this annual inspection
11-10    shall be filed with the commission.
11-11                (2)  Before an agent of the commission conducts an
11-12    inspection of an establishment, the agent shall review the
11-13    inspection reports on the establishment filed with the commission.
11-14    During the inspection, the agent shall determine whether previously
11-15    identified problems have been corrected and whether a pattern of
11-16    violations exists.  The commission shall consider the information
11-17    from inspection reports when the commission determines whether a
11-18    penalty should be imposed against an establishment.
11-19                (3)  When an agent inspects an establishment, the agent
11-20    shall inspect for violations under this Act and under Chapters 193
11-21    and 361, Health and Safety Code.
11-22                (4)  The commission by rule shall establish procedures
11-23    for the inspection of a funeral establishment required by this
11-24    subsection.
11-25          I [H].  The commission may require funeral establishments
11-26    with solid waste disposal and sanitation facilities that have not
11-27    been inspected by the Texas Department of Health to obtain
11-28    inspection of those facilities by an entity other than the Texas
11-29    Department of Health.  The commission by rule shall establish
11-30    procedures for inspections required under this subsection.
11-31          J [I].  (1)  The commission, the Texas Department [State
11-32    Board] of Insurance, and the Banking Department of Texas shall
11-33    adopt a joint memorandum of understanding relating to prepaid
11-34    funeral services and transactions that:
11-35                      (a)  outlines the responsibilities of each agency
11-36    in regulating these services and transactions;
11-37                      (b)  establishes procedures to be used by each
11-38    agency in referring complaints to one of the other agencies;
11-39                      (c)  establishes procedures to be used by each
11-40    agency in investigating a complaint;
11-41                      (d)  establishes procedures to be used by each
11-42    agency in notifying the other agencies of a complaint or of the
11-43    investigation of a complaint;
11-44                      (e)  specifies actions the agencies regard as
11-45    deceptive trade practices;
11-46                      (f)  specifies the information the agencies
11-47    provide consumers and when that information is to be provided; and
11-48                      (g)  sets the administrative penalties each
11-49    agency imposes for violations.
11-50                (2)  Not later than the last month of each state fiscal
11-51    year, the commission and other agencies shall review and update the
11-52    memorandum of understanding.
11-53                (3)  Each agency by rule shall adopt the memorandum of
11-54    understanding and all revisions to the memorandum.
11-55          K [J].  (1)  The commission and the Texas Department of
11-56    Health shall adopt a joint memorandum of understanding that:
11-57                      (a)  outlines the responsibilities of each agency
11-58    in regulating funeral establishment requirements under Chapters 193
11-59    and 361, Health and Safety Code;
11-60                      (b)  establishes procedures by which each agency
11-61    may refer complaints to the other;
11-62                      (c)  establishes procedures by which each agency
11-63    will notify the other of violations by funeral establishments under
11-64    Chapters 193 and 361, Health and Safety Code; and
11-65                      (d)  coordinates inspection and enforcement
11-66    efforts by both agencies for measures that funeral establishments
11-67    are required to implement under Chapters 193 and 361, Health and
11-68    Safety Code.
11-69                (2)  Not later than the last month of each state fiscal
 12-1    year, the commission and the Texas Department of Health shall
 12-2    review and update the memorandum of understanding.
 12-3                (3)  Each agency by rule shall adopt the memorandum of
 12-4    understanding and all revisions to the memorandum.
 12-5          SECTION 20.  Subsection B, Section 5, Chapter 251, Acts of
 12-6    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
 12-7    Vernon's Texas Civil Statutes), is amended to read as follows:
 12-8          B.  All rules adopted by the commission are subject to the
 12-9    Administrative Procedure [and Texas Register] Act, Chapter 2001,
12-10    Government Code [(Article 6252-13a, Vernon's Texas Civil
12-11    Statutes)].
12-12          SECTION 21.  Section 6C, Chapter 251, Acts of the 53rd
12-13    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
12-14    Civil Statutes), is amended to read as follows:
12-15          Sec. 6C.  APPLICATION OF ADMINISTRATIVE PROCEDURE [AND TEXAS
12-16    REGISTER] ACT.  (a)  A person who is denied a license or
12-17    provisional license by the commission is entitled to a hearing
12-18    before the commission in accordance with the Administrative
12-19    Procedure [and Texas Register] Act, Chapter 2001, Government Code
12-20    [(Article 6252-13a, Vernon's Texas Civil Statutes)], if the person
12-21    requests the hearing in writing not later than the 30th day after
12-22    the date the notice of denial is sent.
12-23          (b)  A proceeding conducted by the commission relating to the
12-24    denial of a license or provisional license, the suspension or
12-25    revocation of a license, [or] the imposition of an administrative
12-26    penalty, or a reprimand other than an administrative penalty
12-27    assessed before [without] a hearing or a waiver of a hearing as
12-28    provided by Section 6G of this Act, is governed by the
12-29    Administrative Procedure [and Texas Register] Act, Chapter 2001,
12-30    Government Code [as amended (Article 6252-13a, Vernon's Texas Civil
12-31    Statutes)].  Judicial review of the proceeding is subject to the
12-32    substantial evidence rule and is governed by the Administrative
12-33    Procedure [and Texas Register] Act.
12-34          (c)(1)  A proceeding brought under Subsection (b) of this
12-35    section shall [may] be held before an administrative law judge
12-36    employed by the State Office of Administrative Hearings [a hearings
12-37    officer].  [The executive director shall set a time and place for
12-38    the hearing.]
12-39                (2)  [The hearings officer must be an attorney licensed
12-40    in this state.]  In the course of a proceeding the administrative
12-41    law judge [hearings officer] may:
12-42                      (A)  administer oaths;
12-43                      (B)  take testimony;
12-44                      (C)  rule on questions of evidence;
12-45                      (D)  make determinations of fact; or
12-46                      (E)  order compliance with proper discovery
12-47    requests.
12-48                (3)  The commission shall provide the administrative
12-49    law judge [hearings officer] with a written statement of all
12-50    commission rules or policies that govern the proceeding.
12-51                (4)  At the conclusion of the proceeding the
12-52    administrative law judge [hearings officer] shall make a ruling on
12-53    the matter accompanied by written findings of facts and conclusions
12-54    of law.
12-55                (5)  The commission shall review the findings of fact,
12-56    conclusions of law, and ruling of the administrative law judge
12-57    [hearings officer] before making its final ruling in the
12-58    proceeding.  The commission may also review a transcript of the
12-59    proceeding before making its final ruling.  The commission shall
12-60    adopt the ruling of the administrative law judge [hearings officer]
12-61    as its ruling unless it finds good cause to issue a different
12-62    ruling.  The commission shall explain in writing the reasons for
12-63    adopting a ruling other than the one issued by the administrative
12-64    law judge [hearings officer].
12-65          (d)  The commission shall inform each interested person,
12-66    including a person filing the complaint, of the right to obtain at
12-67    that person's cost a tape or transcript of a hearing or proceeding
12-68    under this section.
12-69          (e)  A funeral establishment alleged to have violated this
 13-1    Act or a rule adopted under this Act may waive the right to a
 13-2    hearing as provided by this section by written notification to the
 13-3    commission.
 13-4          SECTION 22.  Section 6D, Chapter 251, Acts of the 53rd
 13-5    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 13-6    Civil Statutes), is amended to read as follows:
 13-7          Sec. 6D.  COMPLAINTS.  (a)  The commission shall investigate
 13-8    each complaint received by the commission relating to a funeral
 13-9    director, embalmer, apprentice, or funeral establishment. The
13-10    commission shall keep an information file about each complaint
13-11    filed with the commission that the commission has authority to
13-12    resolve.
13-13          (b)  The commission shall include in each information file a
13-14    description of the complaint, the date on which the complaint was
13-15    filed, the name of the complainant, a description of any
13-16    information obtained by the commission after investigating the
13-17    complaint, a description and date of any formal actions taken by
13-18    the commission relating to the complaint, a description of the
13-19    current status of the complaint, and other information that the
13-20    commission considers appropriate.
13-21          (c)  If a written complaint is filed with the commission that
13-22    the commission has authority to resolve, the commission, at least
13-23    quarterly until final disposition of the complaint and on final
13-24    disposition of the complaint, shall notify the parties to the
13-25    complaint of the status of the complaint unless the notice would
13-26    jeopardize an undercover investigation.
13-27          (d)  The information file[, except for information in the
13-28    file obtained by the commission after investigating the complaint,]
13-29    is public information, except for information relating to a
13-30    complaint that has not reached a final disposition.  [The
13-31    information obtained after investigating the complaint is not
13-32    public information.]
13-33          (e)  If a person files a complaint with the commission
13-34    relating to a licensed funeral director, embalmer, provisional
13-35    licensee, or funeral establishment, the commission shall furnish to
13-36    the person an explanation of the remedies that are available to the
13-37    person under this Act and information about appropriate state or
13-38    local agencies or officials with which the person may file a
13-39    complaint.
13-40          (f)  The commission shall employ [or contract for the
13-41    services of] one or more persons to investigate complaints of
13-42    consumer interest and other complaints received by the commission.
13-43    [A person who is subject to regulation under this Act may not serve
13-44    as an investigator.  To serve in this position in a contractual
13-45    capacity, a person must be licensed as a private investigator under
13-46    state law.  To serve in this position as an employee of the
13-47    commission, a person must:]
13-48                [(1)  hold a current license as a private investigator
13-49    in this state;]
13-50                [(2)  have been previously licensed under state or
13-51    federal law as a private investigator; or]
13-52                [(3)  have been previously employed by a local, state,
13-53    or federal law enforcement agency as an investigator.]
13-54          (g)  The complainant is entitled to attend any proceeding
13-55    resulting from the complaint.
13-56          SECTION 23.  Section 6F, Chapter 251, Acts of the 53rd
13-57    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
13-58    Civil Statutes), is amended to read as follows:
13-59          Sec. 6F.  EX PARTE COMMUNICATIONS.  The commissioners and the
13-60    employees of the commission are subject to the provisions of the
13-61    Administrative Procedure [and Texas Register] Act, Chapter 2001,
13-62    Government Code [as amended (Article 6252-13a, Vernon's Texas Civil
13-63    Statutes)], relating to ex parte communications.
13-64          SECTION 24.  Subsections (c) and (e), Section 6G, Chapter
13-65    251, Acts of the 53rd Legislature, Regular Session, 1953 (Article
13-66    4582b, Vernon's Texas Civil Statutes), are amended to read as
13-67    follows:
13-68          (c)  If, after examination of a possible violation and the
13-69    facts relating to that possible violation, the commission concludes
 14-1    that a violation has occurred, the commission shall issue a
 14-2    preliminary report that states the facts on which the conclusion is
 14-3    based, the fact that an administrative penalty is to be imposed,
 14-4    and the amount to be assessed.  Until a hearing has been held on
 14-5    the possible violation, the amount to be assessed may be disclosed
 14-6    only to the person or establishment charged with the violation,
 14-7    unless that person or establishment has waived the right to a
 14-8    hearing or paid the amount to the commission.  Not later than the
 14-9    tenth (10th) day after the day on which the commission issues the
14-10    preliminary report, the commission shall send a copy of the report
14-11    to the person or establishment charged with the violation, together
14-12    with a statement of the right of the person or establishment to a
14-13    hearing relating to the alleged violation and the amount of the
14-14    penalty.
14-15          (e)(1)  If an administrative penalty is assessed after a
14-16    hearing conducted under Section 6C of this Act, not later than the
14-17    thirtieth (30th) day after the date on which the order is sent or a
14-18    motion for rehearing is denied, the person or establishment charged
14-19    shall pay the administrative penalty in full, or[, if] the person
14-20    or establishment may, not later than the 30th day after the date
14-21    the order is sent or a motion for rehearing is denied, [wishes to]
14-22    contest either the amount of the penalty or the fact of the
14-23    violation, but if the penalty that the person or establishment
14-24    wishes to contest is greater than $5,000, the person or
14-25    establishment shall not later than the thirtieth (30th) day after
14-26    the date on which the order is sent or a motion for rehearing is
14-27    denied:
14-28                      (A)  [remit the assessed amount to the commission
14-29    for deposit in an escrow account; or]
14-30                      [(B)]  post a supersedeas bond in a form approved
14-31    by the commission for the amount of the penalty; or
14-32                      (B)  if the person or establishment cannot afford
14-33    to pay the penalty or file the bond, files an affidavit in the
14-34    manner required by the Texas Rules of Civil Procedure for a person
14-35    who cannot afford to file security for costs, subject to the right
14-36    of the commission to contest the affidavit as provided by those
14-37    rules.
14-38                (2)  If, after judicial review, it is determined that
14-39    no violation occurred [or that the amount of the penalty should be
14-40    reduced], the court shall order, when the court's judgment becomes
14-41    final, the release of the bond if the person or establishment gave
14-42    a supersedeas bond.  If the person or establishment gave a
14-43    supersedeas bond and the amount of the penalty is reduced, the
14-44    court shall order the release of the bond after the person or
14-45    establishment pays the reduced amount. [commission shall remit the
14-46    appropriate amount to the person or establishment charged with the
14-47    violation not later than the thirtieth (30th) day after the date on
14-48    which the judicial determination becomes final.]
14-49          SECTION 25.  Section 6H, Chapter 251, Acts of the 53rd
14-50    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
14-51    Civil Statutes), is amended to read as follows:
14-52          Sec. 6H.  REPRIMAND.  [(a)]  If the commission determines
14-53    that a person or establishment regulated under this Act has
14-54    violated this Act or a rule adopted under this Act, the commission
14-55    may issue a reprimand against that person or establishment.  The
14-56    commission may issue the reprimand without any other sanction or in
14-57    conjunction with the assessment of an administrative penalty or the
14-58    revocation, suspension, or probation of the license.  The
14-59    commission may issue a letter of reprimand:
14-60                (1)  after a hearing conducted in the manner provided
14-61    by Section 6C of this Act; or
14-62                (2)  without a hearing if the person or establishment
14-63    waives a hearing [or as provided by this section].
14-64          [(b)  If, after examination of a possible violation and the
14-65    facts relating to that possible violation, the commission concludes
14-66    that a violation has occurred, the commission may issue a
14-67    preliminary report that states the facts on which the conclusion is
14-68    based and that a reprimand is to be issued.  If the reprimand is to
14-69    be issued in addition to the assessment of an administrative
 15-1    penalty under Section 6G of this Act, the preliminary reports may
 15-2    be combined.  Not later than the tenth (10th) day after the day on
 15-3    which the commission issues the preliminary report, the commission
 15-4    shall send a copy of the report to the person or establishment
 15-5    charged with the violation, together with a statement of the right
 15-6    of the person or establishment to a hearing relating to the alleged
 15-7    violations.]
 15-8          [(c)  Not later than the thirtieth (30th) day after the date
 15-9    on which the preliminary report is sent, the person or
15-10    establishment charged may make a written request for a hearing.
15-11    Failure to request a hearing within the time provided by this
15-12    subsection results in a waiver of a right to a hearing under this
15-13    Act and the reprimand shall be issued by the commission and placed
15-14    in the permanent files of the commission.  If the person or
15-15    establishment charged requests a hearing, the hearing shall be
15-16    conducted in the manner provided by Section 6C of this Act.  If it
15-17    is determined after hearing that the person or establishment has
15-18    committed the alleged violation, the commission is not limited to
15-19    the issuance of a reprimand but may also take any action allowed
15-20    under this Act.]
15-21          SECTION 26.  Section 6I, Chapter 251, Acts of the 53rd
15-22    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
15-23    Civil Statutes), is amended to read as follows:
15-24          Sec. 6I.  REPEAT AND MULTIPLE OFFENDERS.  (a)  The commission
15-25    or an administrative law judge employed by the State Office of
15-26    Administrative Hearings [a hearings officer] shall review each
15-27    disciplinary proceeding to determine whether the licensee has
15-28    committed the same type of violation on one or more previous
15-29    occasions.  If it is determined that the licensee has previously
15-30    committed the same type of violation, the commission or the
15-31    administrative law judge [hearings officer] shall impose a
15-32    disciplinary action that is more severe than that imposed on the
15-33    previous occasion.
15-34          (b)  In a disciplinary proceeding involving multiple
15-35    violations of this Act, the commission or the administrative law
15-36    judge [hearings officer] shall impose a disciplinary action that is
15-37    more severe than the disciplinary action that would be imposed
15-38    cumulatively for each of the individual violations.
15-39          SECTION 27.  Subsection C, Section 2, Chapter 251, Acts of
15-40    the 53rd Legislature, Regular Session, 1953 (Article 4582b,
15-41    Vernon's Texas Civil Statutes), is amended to read as follows:
15-42          C.  The commission shall meet in Austin, Texas, in regular
15-43    session at least once each calendar quarter [two (2) times each
15-44    year] for the transaction of business.  Examination for funeral
15-45    directors and embalmers shall be held at least once during each
15-46    year at such times and places as the commission may designate and
15-47    give due notice thereof.  Special meetings or hearings may be held
15-48    at such time and place as may be determined by and upon call of the
15-49    presiding officer [Chairman], assistant presiding officer
15-50    [Vice-chairman], or three (3) members [commissioners].
15-51          SECTION 28.  (a)  This Act takes effect September 1, 1999.
15-52          (b)  The changes in law made by this Act apply only to an
15-53    offense committed  on or after the effective date of this Act.  For
15-54    purposes of this section, an offense is committed before the
15-55    effective date of this Act if any element of the offense occurs
15-56    before that date.  An offense committed before the effective date
15-57    of this Act is covered by the law in effect when the offense was
15-58    committed, and the former law is continued in effect for that
15-59    purpose.
15-60          (c)  The changes in law made by this Act apply only to a
15-61    proceeding commenced on or after the effective date of this Act.  A
15-62    proceeding that is commenced before the effective date of this Act
15-63    is governed by the law in effect when the proceeding was commenced,
15-64    and that law is continued in effect for that purpose.
15-65          SECTION 29.  (a)  The terms of the members of the Texas
15-66    Funeral Service Commission serving on the effective date of this
15-67    Act expire, and that policymaking body as it existed immediately
15-68    before the effective date of this Act is abolished on the effective
15-69    date of this Act.
 16-1          (b)  As soon as practicable after the effective date of this
 16-2    Act, the governor shall make appointments to the Texas Funeral
 16-3    Service Commission to accomplish the membership plan for the
 16-4    commission established by Section 2, Chapter 251, Acts of the 53rd
 16-5    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
 16-6    Civil Statutes), as amended by this Act.  This section does not
 16-7    prohibit a person who is a member of the commission on the
 16-8    effective date of this Act and who possesses the qualifications
 16-9    required under Section 2, Chapter 251, Acts of the 53rd
16-10    Legislature, Regular Session, 1953 (Article 4582b, Vernon's Texas
16-11    Civil Statutes), as amended by this Act, from being reappointed to
16-12    the commission under this subsection.
16-13          (c)  In making appointments under this section, the governor
16-14    shall appoint:
16-15                (1)  two members for terms expiring on February 1,
16-16    2001;
16-17                (2)  two members for terms expiring on February 1,
16-18    2003; and
16-19                (3)  two members for terms expiring on February 1,
16-20    2005.
16-21          SECTION 30.  The importance of this legislation and the
16-22    crowded condition of the calendars in both houses create an
16-23    emergency and an imperative public necessity that the
16-24    constitutional rule requiring bills to be read on three several
16-25    days in each house be suspended, and this rule is hereby suspended.
16-26                                 * * * * *