1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Funeral
 1-3     Service Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           ARTICLE 1.  TEXAS FUNERAL SERVICE COMMISSION AMENDMENTS
 1-6           SECTION 1.01.  Section 101.002, Occupations Code, is amended
 1-7     to read as follows:
 1-8           Sec. 101.002.  COMPOSITION OF COUNCIL.  The council consists
 1-9     of 15 [14] members, with one member appointed by each of the
1-10     following:
1-11                 (1)  the Texas Board of Chiropractic Examiners;
1-12                 (2)  the State Board of Dental Examiners;
1-13                 (3)  the Texas Optometry Board;
1-14                 (4)  the Texas State Board of Pharmacy;
1-15                 (5)  the Texas State Board of Podiatric Medical
1-16     Examiners;
1-17                 (6)  the State Board of Veterinary Medical Examiners;
1-18                 (7)  the Texas State Board of Medical Examiners;
1-19                 (8)  the Board of Nurse Examiners;
1-20                 (9)  the Texas State Board of Examiners of
1-21     Psychologists;
1-22                 (10)  the Board of Vocational Nurse Examiners;
1-23                 (11)  the Texas Funeral Service Commission;
1-24                 (12)  the entity that regulates the practice of
 2-1     physical therapy;
 2-2                 (13) [(12)]  the entity that regulates the practice of
 2-3     occupational therapy;
 2-4                 (14) [(13)]  the health licensing division of the Texas
 2-5     Department of Health; and
 2-6                 (15) [(14)]  the governor's office.
 2-7           SECTION 1.02.  Subchapter B, Chapter 101, Occupations Code,
 2-8     is amended by adding Section 101.0515 to read as follows:
 2-9           Sec. 101.0515.  APPLICABILITY OF SUBCHAPTER.  This subchapter
2-10     does not apply to the Texas Funeral Service Commission.
2-11           SECTION 1.03.  Section 651.001, Occupations Code, is amended
2-12     to read as follows:
2-13           Sec. 651.001.  DEFINITIONS.  In this chapter:
2-14                 (1)  "Cemetery" means a place that is used or intended
2-15     to be used for interment, and includes a graveyard, burial park, or
2-16     mausoleum.
2-17                 (2)  "Commission" means the Texas Funeral Service
2-18     Commission.
2-19                 (3)  "Crematory" means a structure containing a furnace
2-20     used or intended to be used for the cremation of human remains.
2-21                 (4) [(2)]  "Embalmer" means a person licensed under
2-22     this chapter who for compensation, wholly or partly, disinfects or
2-23     preserves a dead human body by:
2-24                       (A)  using chemical substances, fluids, or gases,
2-25     including by introducing those substances, fluids, or gases into
2-26     the body by:
2-27                             (i)  vascular or hypodermic injection; or
 3-1                             (ii)  direct application into the organs or
 3-2     cavities; or
 3-3                       (B)  another method intended to disinfect or
 3-4     preserve a dead human body or to restore body tissues and
 3-5     structures.
 3-6                 (5) [(3)]  "First call" means the beginning of the
 3-7     relationship and duty of a funeral director to take charge of a
 3-8     dead human body and have the body prepared for burial or
 3-9     disposition by embalming, cremation, or another method.  The term
3-10     does not include an ambulance call if the person dispatching the
3-11     ambulance does not know whether a dead human body is to be picked
3-12     up.
3-13                 (6) [(4)]  "Funeral director" means a person licensed
3-14     under this chapter who engages in for compensation, or represents
3-15     to the public as being engaged in for compensation, the
3-16     preparation, other than by embalming, of a dead human body for
3-17     burial or other disposition.
3-18                 (7) [(5)]  "Funeral directing" means acts associated
3-19     with or arranging for the disposition of a dead human body,
3-20     performed by a person for compensation, from the time of first call
3-21     until:
3-22                       (A)  inurnment, interment, or entombment services
3-23     are complete; or
3-24                       (B)  the body is permanently transported out of
3-25     this state [released:]
3-26                             [(i)  for transport to a crematorium; or]
3-27                             [(ii)  to a public carrier].
 4-1                 (8) [(6)]  "Funeral establishment" means:
 4-2                       (A)  a place of business used in the care and
 4-3     preparation for burial or transportation of a dead human body; or
 4-4                       (B)  any other place in which a person engages
 4-5     in, or represents the person to be engaged in, the business of
 4-6     embalming or funeral directing.
 4-7                 (9) [(7)]  "Funeral merchandise" means merchandise sold
 4-8     primarily for use in:
 4-9                       (A)  a funeral ceremony;
4-10                       (B)  embalming; or
4-11                       (C)  the care and preparation of a dead human
4-12     body for burial, cremation, or other disposition.
4-13                 (10) [(8)]  "Funeral service" means a service performed
4-14     incident to a funeral ceremony or for the care and preparation of a
4-15     dead human body for burial, cremation, or other disposition.  The
4-16     term includes embalming.
4-17                 (11) [(9)]  "Mortuary science" means the scientific,
4-18     professional, and practical aspects, with consideration given to
4-19     accepted practices, of the care, preparation for burial, or
4-20     transportation of a dead human body.  The term includes the
4-21     preservation and sanitation of a dead human body and restorative
4-22     art.
4-23                 (12) [(10)]  "Outer enclosure" means an enclosure or
4-24     container placed in a grave above or around the casket.  The term
4-25     includes a burial vault, grave box, or grave liner.
4-26                 (13) [(11)]  "Prospective customer" means a consumer
4-27     who enters a funeral establishment and inquires about a funeral
 5-1     service, cremation, or merchandise.
 5-2                 (14) [(12)]  "Provisional license holder" means a
 5-3     person who:
 5-4                       (A)  is engaged in learning the practice of
 5-5     funeral directing or embalming under the instruction, direction,
 5-6     and personal supervision of a funeral director or embalmer; and
 5-7                       (B)  holds a provisional license issued by the
 5-8     commission under this chapter.
 5-9                 (15) [(13)]  "Purchase agreement" means a written
5-10     statement that itemizes the cost of funeral services or merchandise
5-11     selected by a customer from the retail price list.
5-12                 (16) [(14)]  "Solicitation" means a direct or indirect
5-13     contact by a funeral director, embalmer, or employee, agent, or
5-14     representative of a licensed funeral establishment or any other
5-15     entity with a person near death or the family of, next of kin of,
5-16     or person responsible for making funeral arrangements for a person
5-17     who is deceased or near death, if the contact is not initiated by
5-18     the person near death or the family, next of kin, or person
5-19     responsible for making funeral arrangements and the contact is to
5-20     secure the right to provide funeral services or merchandise or
5-21     occurs in a situation that might influence the contacted person to
5-22     choose a particular funeral establishment.  The term does not
5-23     include:
5-24                       (A)  except in the case of contact with a person
5-25     near death or the person responsible for making funeral
5-26     arrangements for a person near death, an attempt to secure funeral
5-27     business under a permit issued under Chapter 154, Finance Code; or
 6-1                       (B)  any method of advertising by publication or
 6-2     broadcasting.
 6-3                 (17) [(15)]  "Unit pricing" means a method of pricing
 6-4     that offers a discount to a purchaser who buys various funeral
 6-5     services and merchandise as a package.
 6-6           SECTION 1.04.  Section 651.002, Occupations Code, is amended
 6-7     to read as follows:
 6-8           Sec. 651.002.  APPLICATION OF SUNSET ACT.  The Texas Funeral
 6-9     Service Commission is subject to Chapter 325, Government Code
6-10     (Texas Sunset Act).  Unless continued in existence as provided by
6-11     that chapter, the commission is abolished and this chapter expires
6-12     September 1, 2003 [2001].
6-13           SECTION 1.05.  Subsection (a), Section 651.051, Occupations
6-14     Code, is amended to read as follows:
6-15           (a)  The Texas Funeral Service Commission consists of seven
6-16     [six] members appointed by the governor, with the advice and
6-17     consent of the senate as follows:
6-18                 (1)  two members who are licensed as both an embalmer
6-19     and a funeral director[] [in this state] for at least the five years
6-20     preceding appointment to the commission; [and]
6-21                 (2)  one member who is a registered cemetery owner or
6-22     operator; and
6-23                 (3)  four members who represent the public and who:
6-24                       (A)  are not regulated under this chapter; and
6-25                       (B)  have consistently shown an interest in
6-26     supporting consumer protection.
6-27           SECTION 1.06.  Subchapter B, Chapter 651, Occupations Code,
 7-1     is amended by adding Sections 651.0511 and 651.0512 to read as
 7-2     follows:
 7-3           Sec. 651.0511.  TRAINING.  (a)  A person who is appointed to
 7-4     and qualifies for office as a member of the commission may not
 7-5     vote, deliberate, or be counted as a member in attendance at a
 7-6     meeting of the commission until the person completes a training
 7-7     program that complies with this section.
 7-8           (b)  The training program must provide the person with
 7-9     information regarding:
7-10                 (1)  this chapter;
7-11                 (2)  the programs operated by the commission;
7-12                 (3)  the role and functions of the commission;
7-13                 (4)  the rules of the commission, with an emphasis on
7-14     the rules that relate to disciplinary and investigatory authority;
7-15                 (5)  the current budget for the commission;
7-16                 (6)  the results of the most recent formal audit of the
7-17     commission;
7-18                 (7)  the requirements of:
7-19                       (A)  the open meetings law, Chapter 551,
7-20     Government Code;
7-21                       (B)  the public information law, Chapter 552,
7-22     Government Code;
7-23                       (C)  the administrative procedure law, Chapter
7-24     2001, Government Code; and
7-25                       (D)  other laws relating to public officials,
7-26     including conflict-of-interest laws; and
7-27                 (8)  any applicable ethics policies adopted by the
 8-1     commission or the Texas Ethics Commission.
 8-2           (c)  A person appointed to the commission is entitled to
 8-3     reimbursement, as provided by the General Appropriations Act, for
 8-4     the travel expenses incurred in attending the training program
 8-5     regardless of whether the attendance at the program occurs before
 8-6     or after the person qualifies for office.
 8-7           Sec. 651.0512.  TRAINING FOR EMPLOYEES ON STATE INCENTIVE
 8-8     PROGRAM.  The executive director or the executive director's
 8-9     designee shall provide to commission employees information and
8-10     training on the benefits and methods of participation in the state
8-11     employee incentive program under Subchapter B, Chapter 2108,
8-12     Government Code.
8-13           SECTION 1.07.  Section 651.052, Occupations Code, is amended
8-14     to read as follows:
8-15           Sec. 651.052.  ELIGIBILITY OF PUBLIC MEMBERS.  (a)  A person
8-16     may not be [is not eligible for appointment as] a public member of
8-17     the commission if the person or the person's spouse:
8-18                 (1)  is registered, certified, or licensed by a [an
8-19     occupational] regulatory agency in the funeral service industry
8-20     [field of funeral services];
8-21                 (2)  is employed by or participates in the management
8-22     of a business entity or other organization regulated by or
8-23     receiving money from the commission [or receiving funds from the
8-24     commission];
8-25                 (3)  owns or controls, directly or indirectly, more
8-26     than a 10 percent [any] interest in a business entity or other
8-27     organization regulated by or receiving money from the commission
 9-1     [or receiving funds from the commission]; or
 9-2                 (4)  uses or receives a substantial amount of tangible
 9-3     goods, services, or money [funds] from the commission, other than
 9-4     compensation or reimbursement authorized by law for commission
 9-5     membership, attendance, or expenses.
 9-6           (b)  A public member of the commission may not, except as a
 9-7     consumer:
 9-8                 (1)  have a financial interest in a funeral
 9-9     establishment; or
9-10                 (2)  be related to a person within the second degree by
9-11     affinity or third degree by consanguinity, as determined under
9-12     Subchapter B, Chapter 573, Government Code, who has a financial
9-13     interest in a funeral establishment.
9-14           SECTION 1.08.  Section 651.053, Occupations Code, is amended
9-15     to read as follows:
9-16           Sec. 651.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS.  (a)  In
9-17     this section, "Texas trade association" means a [nonprofit,]
9-18     cooperative[,] and voluntarily joined association of business or
9-19     professional competitors in this state designed to assist its
9-20     members and its industry or profession in dealing with mutual
9-21     business or professional problems and in promoting their common
9-22     interest.
9-23           (b)  A person may not be a member of the commission and may
9-24     not be a commission employee employed in a "bona fide executive,
9-25     administrative, or professional capacity," as that phrase is used
9-26     for purposes of establishing an exemption to the overtime
9-27     provisions of the federal Fair Labor Standards Act of 1938 (29
 10-1    U.S.C. Section 201 et seq.), and its subsequent amendments, if:
 10-2                (1)  the person is an officer, employee, or paid
 10-3    consultant of a Texas trade association in the funeral service
 10-4    industry; or
 10-5                (2)  the person's spouse is an officer, manager, or
 10-6    paid consultant of a Texas trade association in the funeral service
 10-7    industry. [A commissioner or an employee of the commission who
 10-8    carries out the functions of the commission may not be related
 10-9    within the second degree by affinity or within the third degree by
10-10    consanguinity, as determined under Subchapter B, Chapter 573,
10-11    Government Code, to a person who is an officer, employee, or paid
10-12    consultant of a trade association in the funeral industry.]
10-13          (c)  [An officer, employee, or paid consultant of a Texas
10-14    trade association in the field of funeral services may not be a
10-15    commission member and may not be an employee who is exempt from the
10-16    state's position classification plan or is compensated at or above
10-17    the amount prescribed by the General Appropriations Act for step 1,
10-18    salary group A17, of the position classification salary schedule.]
10-19          [(d)  A person who is the spouse of an officer, manager, or
10-20    paid consultant of a Texas trade association in the field of
10-21    funeral services may not be a member of the commission and may not
10-22    be an employee of the commission who is exempt from the state's
10-23    position classification plan or is compensated at or above the
10-24    amount prescribed by the General Appropriations Act for step 1,
10-25    salary group A17, of the position classification salary schedule.]
10-26          [(e)  A person may not be appointed to the commission if:]
10-27                [(1)  the person is an officer or employee of a
 11-1    corporation or other business entity directly or indirectly
 11-2    controlling or operating more than three funeral establishments;
 11-3    and]
 11-4                [(2)  a member of the commission is an officer or
 11-5    employee of the same corporation or entity.]
 11-6          [(f)  A violation of Subsection (e) that occurs after a
 11-7    member is appointed constitutes a vacancy of each of those members'
 11-8    positions, as of the date of the completion of the merger or other
 11-9    agreement.  The vacancy shall be filled by the governor as soon as
11-10    practicable.  A member appointed to fill a vacancy under this
11-11    subsection serves for the remainder of the vacated term.]
11-12          [(g)]  A person may not be [serve as] a member of the
11-13    commission or act as the general counsel if the person is required
11-14    to register as a lobbyist under Chapter 305, Government Code,
11-15    because of the person's activities for compensation on behalf of a
11-16    profession related to the operation of the commission.
11-17          SECTION 1.09.  Section 651.104, Occupations Code, is amended
11-18    to read as follows:
11-19          Sec. 651.104.  DIVISION OF RESPONSIBILITIES.  The commission
11-20    shall develop and implement policies that clearly separate [define]
11-21    the policy-making responsibilities of the commission and the
11-22    management responsibilities of the executive director and staff of
11-23    the commission.
11-24          SECTION 1.10.  Section 651.107, Occupations Code, is amended
11-25    to read as follows:
11-26          Sec. 651.107.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
11-27    (a)  The executive director or the executive director's designee
 12-1    shall prepare and maintain a written policy statement that
 12-2    implements a program [to ensure implementation] of [an] equal
 12-3    employment opportunity to ensure that [program under which] all
 12-4    personnel decisions [transactions] are made without regard to race,
 12-5    color, disability, sex, religion, age, or national origin.
 12-6          (b)  The policy statement must include:
 12-7                (1)  personnel policies, including policies relating to
 12-8    recruitment, evaluation, selection, [appointment,] training, and
 12-9    promotion of personnel, that show the intent of the commission to
12-10    avoid the unlawful employment practices described by Chapter 21,
12-11    Labor Code; and
12-12                (2)  an [a comprehensive]  analysis of the extent to
12-13    which the composition of the commission's personnel is in
12-14    accordance with [commission workforce that meets] federal and state
12-15    law and a description of [guidelines;]
12-16                [(3)  procedures by which a determination can be made
12-17    of significant underuse in the commission workforce of all persons
12-18    for whom federal or state guidelines encourage a more equitable
12-19    balance; and]
12-20                [(4)]  reasonable methods to achieve compliance with
12-21    federal and state law [appropriately address those areas of
12-22    significant underuse].
12-23          (c)  The [(b)  A]  policy statement [prepared under
12-24    Subsection (a)] must:
12-25                (1)  [cover an annual period,]  be updated at least
12-26    annually;
12-27                (2)  be reviewed by the state Commission on Human
 13-1    Rights for compliance with Subsection (b)(1);[,] and
 13-2                (3)  be filed with the governor's office [governor].
 13-3          [(c)  The governor shall deliver a biennial report to the
 13-4    legislature based on the information received under Subsection (b).
 13-5    The report may be made separately or as a part of other biennial
 13-6    reports made to the legislature.]
 13-7          SECTION 1.11.  Section 651.157, Occupations Code, is amended
 13-8    to read as follows:
 13-9          Sec. 651.157.  INSPECTION OF FUNERAL ESTABLISHMENT.
13-10    (a)  Except as provided by Subsection (b), a [Each] licensed
13-11    funeral establishment shall be inspected at least once every two
13-12    years [annually] by an agent of the commission or by an agent of
13-13    the state or a political subdivision authorized by the commission
13-14    to make inspections on its behalf.
13-15          (b)  If the commission finds a violation of this chapter or
13-16    of Chapter 193 or 361, Health and Safety Code, the commission shall
13-17    inspect the funeral establishment annually until the commission
13-18    determines that the establishment is free of violations.
13-19          (c)  A report of each [the annual] inspection made under this
13-20    section shall be filed with the commission.
13-21          (d)  The commission by rule shall establish:
13-22                (1)  procedures for the inspection of a funeral
13-23    establishment required by this section; and
13-24                (2)  criteria, including consideration of the
13-25    establishment's inspection and complaint history, regarding when
13-26    the commission should inspect an establishment based on the risk of
13-27    a violation at an establishment.
 14-1          (e) [(b)]  A premises on which funeral directing or embalming
 14-2    is practiced shall be open at all times to inspection for any
 14-3    violation of this chapter or of Chapter 193 or 361, Health and
 14-4    Safety Code, by:
 14-5                (1)  an agent of the commission;
 14-6                (2)  an authorized agent of the state; or
 14-7                (3)  an authorized agent of the county or municipality
 14-8    in which the premises is located.
 14-9          (f) [(c)]  Before a commission agent inspects a funeral
14-10    establishment, the agent shall review the inspection reports filed
14-11    with the commission on the establishment.  During the inspection,
14-12    the agent shall determine whether previously identified problems
14-13    have been corrected and whether a pattern of violations exists.
14-14    The commission shall consider the information from the inspection
14-15    reports in determining whether a penalty should be imposed against
14-16    an establishment.
14-17          SECTION 1.12.  Subchapter D, Chapter 651, Occupations Code,
14-18    is amended by adding Section 651.1575 to read as follows:
14-19          Sec. 651.1575.  INSPECTION OF CEMETERY OR CREMATORY.
14-20    (a)  The commission may inspect a cemetery or crematory only if the
14-21    commission receives a complaint about that facility under Section
14-22    651.202.
14-23          (b)  A report of an inspection made under this section shall
14-24    be filed with the commission.
14-25          (c)  The commission by rule shall establish procedures for
14-26    the inspection of a cemetery or crematory required by this section.
14-27          SECTION 1.13.  Section 651.202, Occupations Code, is amended
 15-1    to read as follows:
 15-2          Sec. 651.202.  COMPLAINTS.  (a)  The commission by rule shall
 15-3    establish methods by which consumers and service recipients are
 15-4    notified of the name, mailing address, and telephone number of the
 15-5    commission for the purpose of directing complaints to the
 15-6    commission.  The commission may provide for that notice:
 15-7                (1)  on each license or registration form, application,
 15-8    or written contract for services of a person regulated under this
 15-9    chapter;
15-10                (2)  on a sign prominently displayed in the place of
15-11    business of each person regulated under this chapter; or
15-12                (3)  in a bill for service provided by a person
15-13    regulated under this chapter.
15-14          (b)  The commission shall adopt rules concerning a complaint
15-15    filed under this section.  The rules adopted under this subsection
15-16    must:
15-17                (1)  establish procedures regarding the receipt,
15-18    investigation, and disposition of complaints;
15-19                (2)  allow for an informal hearing process;
15-20                (3)  establish a formal hearing process;
15-21                (4)  ensure that the person who filed the complaint has
15-22    an opportunity to explain the allegations made in the complaint;
15-23                (5)  ensure that the license holder or registrant who
15-24    is the subject of the complaint has an opportunity to be heard
15-25    regarding the complaint; and
15-26                (6)  establish procedures by which a commission
15-27    employee may dismiss a complaint, subject to approval by the
 16-1    executive director or the executive director's designee, if the
 16-2    investigation does not reveal a violation.
 16-3          (c)  The commission shall investigate each complaint received
 16-4    by the commission relating to a funeral director, embalmer,
 16-5    provisional license holder, [or] funeral establishment, or other
 16-6    person licensed or registered under this chapter.
 16-7          (d)  The commission shall provide to the person filing the
 16-8    complaint and to each person who is a subject of the complaint a
 16-9    copy of the commission's policies and procedures relating to
16-10    complaint investigation and resolution, including [(c)  If a person
16-11    files a complaint with the commission relating to a funeral
16-12    director, embalmer, provisional license holder, or licensed funeral
16-13    establishment, the commission shall furnish to the person] an
16-14    explanation of the remedies that are available to the person under
16-15    this chapter and information about other appropriate state or local
16-16    agencies or officials with which the person may file a complaint.
16-17          (e)  The [(d)  If a written complaint is filed with the
16-18    commission that the commission has authority to resolve, the]
16-19    commission, at least quarterly until final disposition of the
16-20    complaint [and on final disposition of the complaint], shall notify
16-21    the person filing [parties to] the complaint and each person who is
16-22    a subject of the complaint of the status of the investigation
16-23    [complaint] unless the notice would jeopardize an undercover
16-24    investigation.
16-25          (f) [(e)]  The person who filed the complaint [complainant]
16-26    is entitled to attend any proceeding resulting from the complaint.
16-27          SECTION 1.14.  Subsection (a), Section 651.203, Occupations
 17-1    Code, is amended to read as follows:
 17-2          (a)  The commission shall maintain a [keep an information]
 17-3    file on each written [about each] complaint filed with the
 17-4    commission [that the commission has authority to resolve].  The
 17-5    file must [commission shall] include [in each information file]:
 17-6                (1)  the subject matter [a description] of the
 17-7    complaint;
 17-8                (2)  the date the complaint is received by the
 17-9    commission [filed];
17-10                (3)  the name of the person who filed the complaint
17-11    [complainant];
17-12                (4)  the name of each person contacted in relation to
17-13    the complaint;
17-14                (5)  a summary of the results of the review or
17-15    investigation of the complaint; and
17-16                (6)  an explanation of the reason the file was closed,
17-17    if the commission closed the file without taking action other than
17-18    to investigate the complaint [a description of any information
17-19    obtained by the commission after investigating the complaint;]
17-20                [(5)  a description of and the date of any formal
17-21    action taken by the commission relating to the complaint;]
17-22                [(6)  a description of the current status of the
17-23    complaint; and]
17-24                [(7)  any other information the commission considers
17-25    appropriate].
17-26          SECTION 1.15.  Section 651.254, Occupations Code, is amended
17-27    to read as follows:
 18-1          Sec. 651.254.  LICENSE EXAMINATIONS; RESULTS.  (a)  The
 18-2    examinations for a funeral director's license and an embalmer's
 18-3    license shall be held at least annually.  The examinations shall be
 18-4    given at the time and place designated by the commission.  The
 18-5    commission shall give notice of the examinations.
 18-6          (b)  Not later than the 30th day after the date a person
 18-7    takes a [on which a funeral director's or embalmer's] licensing
 18-8    examination [is administered] under this chapter, the commission
 18-9    shall notify the person [each examinee] of the results of the
18-10    examination.
18-11          (c)  If the [an] examination is graded or reviewed by a
18-12    [national] testing service:
18-13                (1)  [,] the commission shall notify the person [each
18-14    examinee] of the results of the examination not later than the 14th
18-15    day after the date [on which] the commission receives the results
18-16    from the testing service; and
18-17                (2)  if[.]
18-18          [(c)  If the] notice of the examination results [graded or
18-19    reviewed by a national testing service] will be delayed for longer
18-20    than 90 days after the examination date, the commission shall
18-21    notify the person [examinee] of the reason for the delay before the
18-22    90th day.
18-23          (d)  The commission may require a testing service to notify a
18-24    person of the results of the person's examination.
18-25          (e)  If requested in writing by a person who fails a
18-26    licensing examination administered under this chapter, the
18-27    commission shall furnish the person with an analysis of the
 19-1    person's performance on the examination.
 19-2          [(e)  Notice of the time and place of an examination must be
 19-3    filed with the Texas Register at least seven days before the
 19-4    examination.]
 19-5          SECTION 1.16.  Subchapter F, Chapter 651, Occupations Code,
 19-6    is amended by adding Section 651.2595 to read as follows:
 19-7          Sec. 651.2595.  PROVISIONAL LICENSE.  (a)  The commission may
 19-8    issue a provisional license to an applicant currently licensed in
 19-9    another jurisdiction who seeks a license in this state and who:
19-10                (1)  has been licensed in good standing as a funeral
19-11    director or embalmer for at least two years in another
19-12    jurisdiction, including a foreign country, that has licensing
19-13    requirements substantially equivalent to the requirements of this
19-14    chapter;
19-15                (2)  has passed a national or other examination
19-16    recognized by the commission relating to the practice of funeral
19-17    director or embalmer; and
19-18                (3)  is sponsored by a person licensed by the
19-19    commission under this chapter with whom the provisional license
19-20    holder will practice during the time the person holds a provisional
19-21    license.
19-22          (b)  The commission may waive the requirement of Subsection
19-23    (a)(3) for an applicant if the commission determines that
19-24    compliance with that subsection would be a hardship to the
19-25    applicant.
19-26          (c)  A provisional license is valid until the date the
19-27    commission approves or denies the provisional license holder's
 20-1    application for a license.  The commission shall issue a license
 20-2    under this chapter to the provisional license holder if:
 20-3                (1)  the provisional license holder is eligible to be
 20-4    licensed under Section 651.259; or
 20-5                (2)  the provisional license holder:
 20-6                      (A)  passes the part of the examination under
 20-7    Subsection (a)  that relates to the applicant's knowledge and
 20-8    understanding of the laws and rules relating to the practice of
 20-9    funeral directing or embalming in this state;
20-10                      (B)  meets the academic and experience
20-11    requirements for a license under this chapter; and
20-12                      (C)  satisfies any other licensing requirements
20-13    under this chapter.
20-14          (d)  The commission shall approve or deny a provisional
20-15    license holder's application for a license not later than the 180th
20-16    day after the date the provisional license is issued.  The
20-17    commission may extend the 180-day period if the results of an
20-18    examination have not been received by the commission before the end
20-19    of that period.
20-20          (e)  The commission may establish a fee for provisional
20-21    licenses in an amount reasonable and necessary to cover the cost of
20-22    issuing the license.
20-23          SECTION  1.17.  Section 651.262, Occupations Code, is
20-24    transferred to Subchapter D, Chapter 651, Occupations Code,
20-25    redesignated as Section 651.164, Occupations Code, and amended to
20-26    read as follows:
20-27          Sec. 651.164. [651.262.]  LICENSE OR REGISTRATION EXPIRATION.
 21-1    The commission by rule may adopt a system under which [funeral
 21-2    director's and embalmer's] licenses or registrations expire on
 21-3    various dates during the year.  [The commission shall adjust dates
 21-4    for sending notice regarding payment of fees and license suspension
 21-5    for nonpayment according to the system, if any, adopted under this
 21-6    subsection.]  For the [a] year in which the license or registration
 21-7    expiration date is changed, the commission shall prorate license or
 21-8    registration fees [are prorated] on a monthly basis so that each
 21-9    license holder or registrant pays only that portion of the license
21-10    or registration fee that is allocable to the number of months
21-11    during which the license or registration is valid.  On renewal of
21-12    the license or registration on the new expiration date, the total
21-13    license or registration renewal fee is payable.
21-14          SECTION 1.18.  Section 651.263, Occupations Code, is
21-15    transferred to Subchapter D, Chapter 651, Occupations Code,
21-16    redesignated as Section 651.165, Occupations Code, and amended to
21-17    read as follows:
21-18          Sec. 651.165 [651.263].  RENEWAL OR REINSTATEMENT OF LICENSE.
21-19    (a)  A person who is otherwise eligible to renew a license may
21-20    renew an unexpired license by paying the required renewal fee to
21-21    the commission before the expiration date of the license.  A person
21-22    whose license has expired may not engage in activities that require
21-23    a license until the license has been renewed.
21-24          (b)  A person whose license has been expired for 90 days or
21-25    less may renew the license by paying to the commission a [the
21-26    required] renewal fee that is [and a penalty fee] equal to 1-1/2
21-27    times the normally required [one-half the amount of the] renewal
 22-1    fee [for the license].
 22-2          (c)  A person whose license [If a person's license] has been
 22-3    expired for more than 90 days but less than one year [five years,
 22-4    the person] may renew the license by paying to the commission a
 22-5    [all unpaid] renewal [fees and a penalty] fee that is equal to two
 22-6    times the normally required [one-half of the total amount of the
 22-7    unpaid] renewal fee [fees].
 22-8          (d)  A person whose [(c)  If a person's] license has been
 22-9    expired for one year or more [five years or longer, the person] may
22-10    not renew the license.  The person may obtain a new license by
22-11    [submitting to reexamination and] complying with the requirements
22-12    and procedures, including the examination requirements, for
22-13    obtaining an original license.
22-14          (e)  A person who was licensed in this state, moved to
22-15    another state, and is currently licensed and has been in practice
22-16    in the other state for the two years preceding the date of
22-17    application may obtain a new license without reexamination.  The
22-18    person must pay to the commission a fee that is equal to two times
22-19    the normally required renewal fee for the license.
22-20          (f) [(d)]  At least 30 days before the expiration of a
22-21    person's license, the commission shall send written notice of the
22-22    impending license expiration to the person at the person's last
22-23    known address according to the records of the commission.
22-24          SECTION 1.19.  Section 651.266, Occupations Code, is amended
22-25    to read as follows:
22-26          Sec. 651.266.  CONTINUING EDUCATION.  The commission by rule
22-27    may require continuing education as a condition for license renewal
 23-1    except for a license holder described by Section 651.155 or an
 23-2    applicant for renewal described by [Section 651.155 or] Section
 23-3    651.265.  If the commission requires continuing education, the
 23-4    commission shall require completion of a minimum number of hours of
 23-5    ethics training as a required part of that education.
 23-6          SECTION 1.20.  The heading to Section 651.405, Occupations
 23-7    Code, is amended to read as follows:
 23-8          Sec. 651.405.  RETAIL PRICE LIST; FUNERAL ESTABLISHMENT.
 23-9          SECTION 1.21.  Subchapter I, Chapter 651, Occupations Code,
23-10    is amended by adding Section 651.4055 to read as follows:
23-11          Sec. 651.4055.  RETAIL PRICE LIST; CEMETERY OR CREMATORY.
23-12    (a)  In this section, "retail price list" means a printed or
23-13    typewritten list of the retail price of items or services provided
23-14    by a cemetery or crematory.
23-15          (b)  A retail price list must contain:
23-16                (1)  the name, address, and telephone number of the
23-17    cemetery or crematory;
23-18                (2)  the effective date for the stated prices;
23-19                (3)  notice required by Subsection (c); and
23-20                (4)  any other items that the commission may by rule
23-21    require.
23-22          (c)  The retail price list must contain the following printed
23-23    notice:  "The goods and services shown below are those we can
23-24    provide to our customers.  You may choose only the items you
23-25    desire.  If legal or other requirements mean you must buy any items
23-26    you did not specifically ask for, we will explain the reason in
23-27    writing on the statement we provide describing the goods and
 24-1    services you selected."
 24-2          SECTION 1.22.  The heading to Section 651.406, Occupations
 24-3    Code, is amended to read as follows:
 24-4          Sec. 651.406.  PURCHASE AGREEMENT; FUNERAL ESTABLISHMENT.
 24-5          SECTION 1.23.  Subchapter I, Chapter 651, Occupations Code,
 24-6    is amended by adding Section 651.4065 to read as follows:
 24-7          Sec. 651.4065.  PURCHASE AGREEMENT; CEMETERY OR CREMATORY.
 24-8    (a)  A purchase agreement must state:
 24-9                (1)  the name, address, and telephone number of the
24-10    cemetery or crematory;
24-11                (2)  the amount paid or owed to another person by the
24-12    cemetery or crematory on behalf of the customer and each fee
24-13    charged the customer for the cost of advancing funds or becoming
24-14    indebted to another person on behalf of the customer;
24-15                (3)  the printed notice required by Subsection (b);
24-16                (4)  the name, mailing address, and telephone number of
24-17    the commission;
24-18                (5)  a statement that complaints may be directed to the
24-19    commission; and
24-20                (6)  any other items that the commission may by rule
24-21    require.
24-22          (b)  The purchase agreement must contain the following
24-23    printed notice:  "Charges are only for those items that you
24-24    selected or that are required.  If we are required by law to use
24-25    any items, we will explain the reasons in writing below."
24-26          (c)  The registrant for the cemetery or crematory shall sign
24-27    the purchase agreement.
 25-1          (d)  If the customer selects a package arrangement based on
 25-2    unit pricing, the itemization requirement is satisfied by providing
 25-3    a purchase agreement that itemizes the discount provided by the
 25-4    package arrangement.
 25-5          SECTION 1.24.  Subchapter I, Chapter 651, Occupations Code,
 25-6    is amended by adding Section 651.408 to read as follows:
 25-7          Sec. 651.408.  USE OF CEMETERY AND CREMATORY SERVICES.  The
 25-8    fact that a funeral director contracts for cemetery or crematory
 25-9    services, including as part of a package arrangement, does not
25-10    limit the director's liability to the customer for those services.
25-11          SECTION 1.25.  Section 651.451, Occupations Code, is amended
25-12    to read as follows:
25-13          Sec. 651.451.  CERTAIN FRAUDULENT AND DECEPTIVE ACTS.  A
25-14    person violates this chapter if the person:
25-15                (1)  presents to the commission a license, certificate,
25-16    registration, or diploma that was illegally or fraudulently
25-17    obtained;
25-18                (2)  uses fraud or deception in passing the
25-19    examination, including impersonating or acting as a proxy for
25-20    another person in the examination;
25-21                (3)  purchases, sells, barters, or uses, or offers to
25-22    purchase, sell, barter, or use, a license, registration,
25-23    certificate, or transcript of a license, registration, or
25-24    certificate in or incident to an application to the commission for
25-25    a license or registration issued under this chapter [to practice as
25-26    a funeral director or embalmer];
25-27                (4)  alters, with fraudulent intent, a [funeral
 26-1    director's or embalmer's] license, registration, or certificate
 26-2    issued under this chapter or a transcript of a license,
 26-3    registration, or certificate;
 26-4                (5)  uses a [funeral director's or embalmer's] license,
 26-5    registration, certificate, or diploma issued under this chapter or
 26-6    a transcript of a [funeral director's or embalmer's] license,
 26-7    registration, certificate, or diploma that has been fraudulently
 26-8    purchased, issued, counterfeited, or materially altered;
 26-9                (6)  impersonates a funeral director, [or] embalmer, or
26-10    other person regulated under this chapter;
26-11                (7)  permits another to use the person's license or
26-12    registration to perform an activity regulated under this chapter
26-13    [practice as a funeral director or embalmer in this state]; or
26-14                (8)  presents false certification of work done as a
26-15    provisional license holder.
26-16          SECTION 1.26.  Section 651.452, Occupations Code, is amended
26-17    to read as follows:
26-18          Sec. 651.452.  LACK OF FITNESS TO PRACTICE.  A person
26-19    violates this chapter if the person is:
26-20                (1)  convicted of:
26-21                      (A)  a misdemeanor related to the practice of
26-22    embalming, [or] funeral directing, or another activity regulated
26-23    under this chapter; or
26-24                      (B)  a felony;
26-25                (2)  unfit to practice as a funeral director or
26-26    embalmer because of insanity and determined by a court to be of
26-27    unsound mind; or
 27-1                (3)  unfit to practice because of current substance
 27-2    abuse.
 27-3          SECTION 1.27.  Section 651.455, Occupations Code, is amended
 27-4    to read as follows:
 27-5          Sec. 651.455.  FALSE OR MISLEADING STATEMENTS REGARDING
 27-6    FUNERAL MERCHANDISE OR FUNERAL, CEMETERY, OR CREMATORY SERVICES.
 27-7    (a)  A person violates this chapter if the person uses a statement
 27-8    that misleads or deceives the public, including a false or
 27-9    misleading statement regarding:
27-10                (1)  a legal, religious, or cemetery requirement for
27-11    funeral merchandise or funeral, cemetery, or crematory services;
27-12                (2)  the preservative qualities of funeral merchandise
27-13    or funeral, cemetery, or crematory services in preventing or
27-14    substantially delaying natural decomposition of human remains;
27-15                (3)  the airtight or watertight properties of a casket
27-16    or outer enclosure; or
27-17                (4)  the licenses or registrations held by the
27-18    personnel in the operation of the cemetery, crematory, or funeral
27-19    establishment.
27-20          (b)  This section does not apply to cemetery or crematory
27-21    services that occur after burial or inurnment.
27-22          SECTION 1.28.  Subchapter K, Chapter 651, Occupations Code,
27-23    is amended by adding Section 651.5025 to read as follows:
27-24          Sec. 651.5025.  IMMEDIATE LICENSE REVOCATION; EFFECT OF
27-25    CERTAIN FELONY CONVICTIONS.  (a)  The commission may revoke the
27-26    license of a license holder without a hearing if the commission
27-27    determines from the information presented to it that the license
 28-1    holder has been convicted of a felony related to the practice of
 28-2    embalming, funeral directing, or another activity regulated by the
 28-3    commission under this chapter. The commission shall notify the
 28-4    license holder if it decides to revoke the license.
 28-5          (b)  The license holder may appeal the decision by submitting
 28-6    a written request for a hearing in accordance with this chapter and
 28-7    Chapter 2001, Government Code, not later than the 30th day after
 28-8    the date of the revocation.
 28-9          SECTION 1.29.  Subchapter L, Chapter 651, Occupations Code,
28-10    is amended by adding Section 651.5515 to read as follows:
28-11          Sec. 651.5515.  PENALTY GUIDELINES.  (a)  The commission by
28-12    rule shall adopt guidelines that define and summarize the
28-13    violations that occur under this subchapter to assist the
28-14    commission in maintaining consistency in determining the amount of
28-15    an administrative penalty assessed under Section 651.552.  Using
28-16    those guidelines and the summary, the commission shall establish
28-17    and maintain a chart that lists:
28-18                (1)  the most common violations;
28-19                (2)  the penalty amounts assessed for those violations;
28-20    and
28-21                (3)  the factors used to grade each type of violation
28-22    before determining the penalty amount under Section 651.552.
28-23          (b)  The commission shall consider using focus groups to
28-24    obtain business and consumer input to match appropriate penalties
28-25    to violations before proposing the rules under this section.
28-26          (c)  The commission shall post the guidelines on the
28-27    commission's Internet site.
 29-1          SECTION 1.30.  Section 651.552, Occupations Code, is amended
 29-2    to read as follows:
 29-3          Sec. 651.552.  AMOUNT OF PENALTY.  (a)  The amount of the
 29-4    administrative penalty shall be not less than $100 or more than
 29-5    $5,000 for each violation.
 29-6          (b)  In determining the amount of the penalty, the commission
 29-7    shall base its decision on:
 29-8                (1)  the seriousness of the violation;
 29-9                (2)  the threat the violation poses to health and
29-10    safety;
29-11                (3)  the history of previous violations;
29-12                (4)  the amount necessary to deter a future violation;
29-13                (5)  efforts made to correct the violation;
29-14                (6)  the guidelines adopted under Section 651.5515; and
29-15                (7)  any other matter that justice requires [employ
29-16    guidelines established by commission rule].
29-17          SECTION 1.31.  Subsection (b), Section 651.553, Occupations
29-18    Code, is amended to read as follows:
29-19          (b)  Not later than the 10th day after the date the report is
29-20    issued, the commission shall send to the person charged with the
29-21    violation:
29-22                (1)  a copy of the report;
29-23                (2)  a statement of the right of the person to a
29-24    hearing relating to the alleged violation; [and]
29-25                (3)  a statement of the amount of the penalty; and
29-26                (4)  an explanation for any significant deviation from
29-27    the penalty amount assessed for similar violations.
 30-1          SECTION 1.32.  Chapter 651, Occupations Code, is amended by
 30-2    adding Subchapter N to read as follows:
 30-3                 SUBCHAPTER N.  REGISTRATION REQUIREMENTS:
 30-4                        CEMETERIES AND CREMATORIES
 30-5          Sec. 651.651.  DEFINITION.  In this subchapter, "perpetual
 30-6    care cemetery" means a person who notifies the Texas Department of
 30-7    Banking of its intent to operate a perpetual care cemetery in this
 30-8    state under Section 712.0031, Health and Safety Code.
 30-9          Sec. 651.652.  APPLICABILITY.  (a)  This subchapter applies
30-10    only to a cemetery or crematory that sells goods or services
30-11    related to the burial or final disposition of a body.
30-12          (b)  This subchapter does not apply to the maintenance of a
30-13    cemetery or crematory, including maintenance of any goods or
30-14    services provided under Chapter 711 or 712, Health and Safety Code.
30-15          Sec. 651.653.  CEMETERY OR CREMATORY REGISTRATION
30-16    REQUIREMENTS.  (a)  A person may not conduct a cemetery or
30-17    crematory business in this state unless an individual who is the
30-18    owner or operator of the cemetery or crematory registers with the
30-19    commission.
30-20          (b)  A cemetery or crematory may be owned by a person who is
30-21    not registered under this chapter.
30-22          (c)  To register, the individual must apply for a
30-23    registration and pay the registration fee.  The commission shall
30-24    register the individual on determining that the individual
30-25    satisfies the requirements of this section.
30-26          (d)  The individual must:
30-27                (1)  explain the purpose of the cemetery or crematory
 31-1    business;
 31-2                (2)  provide the address and other contact information
 31-3    for the business; and
 31-4                (3)  identify the individual owner or operator who is
 31-5    registering.
 31-6          (e)  The commission by rule shall establish the fee to
 31-7    register under this subchapter.  The fee must include the cost of
 31-8    regulating registrants under this chapter, including discipline and
 31-9    investigation of complaints.
31-10          Sec. 651.654.  PERPETUAL CARE CEMETERIES.  (a)  On request by
31-11    the commission, the Texas Department of Banking shall provide the
31-12    commission a list of perpetual care cemeteries, including the
31-13    address and other contact information for each cemetery.  The
31-14    commission shall annually register, under this subchapter, each
31-15    perpetual care cemetery on that list.
31-16          (b)  A perpetual care cemetery is not required to pay a
31-17    registration fee under this subchapter.
31-18          Sec. 651.655.  RENEWAL OF CEMETERY OR CREMATORY REGISTRATION.
31-19    (a)  The commission shall mail written notice to a registrant of
31-20    the impending expiration of the registration not later than the
31-21    30th day before the expiration date of the registration.  The
31-22    notice must state that:
31-23                (1)  to renew the registration, the registrant must pay
31-24    the renewal fee not later than the date on which the registration
31-25    expires; and
31-26                (2)  the registration is automatically renewed on
31-27    receipt of the renewal fee.
 32-1          (b)  A registrant who fails to pay the renewal fee by the due
 32-2    date is subject to a late payment penalty equal to the amount
 32-3    charged for the renewal fee.
 32-4          (c)  If the registration is expired for longer than 30 days,
 32-5    the registrant may not renew the registration, and the cemetery or
 32-6    crematory may not be operated, until the owner or operator
 32-7    registers as provided by Section 651.653.
 32-8          (d)  This section does not apply to a perpetual care
 32-9    cemetery.
32-10          SECTION 1.33.  The heading to Subtitle L, Title 3,
32-11    Occupations Code, is amended to read as follows:
32-12               SUBTITLE L.  CEMETERY AND CREMATORY SERVICES,
32-13                     FUNERAL DIRECTING, AND EMBALMING
32-14          SECTION 1.34.  The heading to Chapter 651, Occupations Code,
32-15    is amended to read as follows:
32-16     CHAPTER 651.  CEMETERY AND CREMATORY SERVICES, FUNERAL DIRECTING,
32-17                               AND EMBALMING
32-18                ARTICLE 2.  INFORMATION AND LEGAL RESOURCES
32-19          SECTION 2.01.  DEFINITIONS.  In this article:
32-20                (1)  "Funeral commission" means the Texas Funeral
32-21    Service Commission.
32-22                (2)  "Task force" means the task force created under
32-23    Section 2.06 of this article.
32-24          SECTION 2.02.  INFORMATION RESOURCES.  (a)  The funeral
32-25    commission shall contract with the Department of Information
32-26    Resources to improve the compilation of statistics and other
32-27    information using information resources.  The contract must expire
 33-1    before the fiscal year that begins September 1, 2003.  In order to
 33-2    meet this goal, the contract shall require the department to
 33-3    analyze and implement changes to meet the technology needs of the
 33-4    funeral commission regarding the compilation of information
 33-5    necessary to effectively regulate the funeral industry.
 33-6          (b)  The statistics and other information compiled under
 33-7    Subsection (a)  of this section must include:
 33-8                (1)  data about complaints, licenses, registrations,
 33-9    and sanctions, including the number of new individual versus dual
33-10    licenses issued;
33-11                (2)  the number of complaints received that are outside
33-12    of the funeral commission's jurisdictions;
33-13                (3)  the average cost of complaints resolved;
33-14                (4)  summaries of violations and actions taken; and
33-15                (5)  any information necessary to help the attorney
33-16    general enforce delinquent child support orders among persons
33-17    licensed or registered by the funeral commission.
33-18          SECTION 2.03.  LEGAL RESOURCES.  The funeral commission shall
33-19    contract with the attorney general to ensure adequate access to
33-20    legal services from the attorney general, including:
33-21                (1)  consultation about the daily operations of the
33-22    funeral commission, including complaint, inspection, and other
33-23    enforcement procedures; and
33-24                (2)  legal interpretations regarding Chapter 651,
33-25    Occupations Code.
33-26          SECTION 2.04.  PLAN.  Not later than December 1, 2001, the
33-27    funeral commission shall develop a plan that details the manner in
 34-1    which it will  implement the requirements of Sections 2.02 and 2.03
 34-2    of this article.  The plan must include:
 34-3                (1)  a priority for each required task;
 34-4                (2)  the identity of any solutions that may be quickly
 34-5    implemented;
 34-6                (3)  a cost estimate; and
 34-7                (4)  a schedule for task completion.
 34-8          SECTION 2.05.  STATUS REPORTS.  The funeral commission shall
 34-9    report once each quarter on the status of its efforts under
34-10    Sections 2.02, 2.03, and 2.04 of this article to:
34-11                (1)  the Sunset Advisory Commission; and
34-12                (2)  the task force.
34-13          SECTION 2.06.  TASK FORCE.  (a)  A task force is created to:
34-14                (1)  review the plan developed by the funeral
34-15    commission under Section 2.04 of this article; and
34-16                (2)  monitor the funeral commission's implementation of
34-17    the changes recommended by the plan.
34-18          (b)  The task force is composed of six members, appointed not
34-19    later than October 1, 2001, as follows:
34-20                (1)  a representative from and appointed by each of the
34-21    following state officers or agencies:
34-22                      (A)  the attorney general;
34-23                      (B)  the comptroller of public accounts;
34-24                      (C)  the Department of Information Resources; and
34-25                      (D)  the state auditor;
34-26                (2)  a consumer representative, appointed by the
34-27    comptroller of public accounts; and
 35-1                (3)  a representative of the funeral industry,
 35-2    appointed by the comptroller of public accounts.
 35-3          (c)  The representative of the comptroller of public accounts
 35-4    shall serve as the presiding officer of the task force.
 35-5          (d)  The task force shall meet at least once a month.
 35-6          (e)  The task force is abolished and this section expires
 35-7    January 15, 2003.
 35-8          SECTION 2.07.  This article expires September 1, 2003.
 35-9             ARTICLE 3.  REPEALER; TRANSITION; EFFECTIVE DATE
35-10          SECTION 3.01.  (a)  Subsections (a) and (b), Section 651.305,
35-11    Section 651.354, and Subsection (i), Section 651.506, Occupations
35-12    Code, are repealed.
35-13          (b)  Section 651.353, Occupations Code, is repealed effective
35-14    September 30, 2001.
35-15          SECTION 3.02.  (a)  In this section:
35-16                (1)  "Funeral commission" means the Texas Funeral
35-17    Service Commission.
35-18                (2)  "Sunset commission" means the Sunset Advisory
35-19    Commission.
35-20          (b)  In performing its duties under Section 651.002,
35-21    Occupations Code, as amended by this Act, and Chapter 325,
35-22    Government Code (Texas Sunset Act), the sunset commission may limit
35-23    the scope of its review of the funeral commission.
35-24          (c)  As part of the review, the sunset commission shall
35-25    determine how much progress the funeral commission has made in
35-26    addressing and implementing solutions required by this Act,
35-27    including solutions regarding:
 36-1                (1)  information resources and legal services issues
 36-2    under Article 2 of this Act;
 36-3                (2)  formal rules outlining an open and fair complaint
 36-4    system;
 36-5                (3)  clearer guidelines to ensure a more effective use
 36-6    of penalties;
 36-7                (4)  a risk-based approach to scheduling inspections;
 36-8    and
 36-9                (5)  any other analyses that it determines are
36-10    appropriate.
36-11          (d)  Not later than September 1, 2002, the funeral commission
36-12    shall report to the sunset commission on the status of its progress
36-13    under this Act.
36-14          (e)  If the sunset commission determines that the funeral
36-15    commission has not made substantial progress, the sunset commission
36-16    shall consider whether to recommend that the legislature abolish
36-17    the funeral commission and transfer its functions to the Texas
36-18    Department of Licensing and Regulation.
36-19          SECTION 3.03.  Not later than March 1, 2002, the Texas
36-20    Funeral Service Commission shall adopt the rules required by
36-21    Subsection (b), Section 651.202, Occupations Code, as amended by
36-22    this Act.  In adopting these rules, the commission shall examine,
36-23    and use as a guide, the rules adopted by the Board of Nurse
36-24    Examiners relating to complaint investigation, disposition, and
36-25    related proceedings.
36-26          SECTION 3.04.  Not later than March 1, 2002, the Texas
36-27    Funeral Service Commission shall adopt the rules required by
 37-1    Section 651.5515, Occupations Code, as added by this Act.
 37-2          SECTION 3.05.  (a)  The Texas Funeral Service Commission
 37-3    shall study the risk-based assessment methods used by the Texas
 37-4    Department of Health and the Texas Department of Licensing and
 37-5    Regulation in conducting inspections required by law.
 37-6          (b)  Based on the study conducted under Subsection (a)  of
 37-7    this section, not later than March 1, 2002, the Texas Funeral
 37-8    Service Commission shall adopt the rules required by Subdivision
 37-9    (2), Subsection (d), Section 651.157, Occupations Code, as added by
37-10    this Act.
37-11          SECTION 3.06.  (a)  Not later than November 1, 2001, the
37-12    governor shall appoint the additional member of the Texas Funeral
37-13    Service Commission required under Subdivision (2), Subsection (a),
37-14    Section 651.051, Occupations Code, as amended by this Act.
37-15          (b)  The changes in law made by this Act in the
37-16    qualifications of, and the prohibitions applying to, the members of
37-17    the Texas Funeral Service Commission do not affect the entitlement
37-18    of a person serving as a member of the commission immediately
37-19    before September 1, 2001, to continue to carry out the functions of
37-20    the person's office for the remainder of the person's term.  The
37-21    changes in law apply only to a person appointed on or after
37-22    September 1, 2001.  This Act does not prohibit a person who is a
37-23    member of the Texas Funeral Service Commission immediately before
37-24    September 1, 2001, from being reappointed as a commission member if
37-25    the person has the qualifications required for the position under
37-26    Subchapter B, Chapter 651, Occupations Code, as amended by this
37-27    Act.
 38-1          SECTION 3.07.  (a)  In accordance with Subsection (c),
 38-2    Section 311.031, Government Code, which gives effect to a
 38-3    substantive amendment enacted by the same legislature that codifies
 38-4    the amended statute, the text of the following gives effect to
 38-5    certain changes made by Chapters 1201 and 1476, Acts of the 76th
 38-6    Legislature, Regular Session, 1999, as follows:
 38-7                (1)  Section 651.002, Occupations Code, as set out in
 38-8    Section 1.04 of this Act, gives effect to changes made by Section
 38-9    1, Chapter 1201;
38-10                (2)  Subsection (a), Section 651.051, Occupations Code,
38-11    as set out in Section 1.05 of this Act, gives effect to changes
38-12    made by Section 2, Chapter 1476; and
38-13                (3)  Section 651.053, Occupations Code, as set out in
38-14    Section 1.08 of this Act, gives effect to changes made by Sections
38-15    5 and 6, Chapter 1476.
38-16          (b)  To the extent of any conflict, this Act prevails over
38-17    another Act of the 77th Legislature, Regular Session, 2001,
38-18    relating to nonsubstantive additions to and corrections in enacted
38-19    codes.
38-20          SECTION 3.08.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3067 was passed by the House on April
         30, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3067 on May 21, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3067 was passed by the Senate, with
         amendments, on May 17, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor