77R13017 E                           
         By Chisum, Gray, Hamric, McCall                       H.B. No. 3067
         Substitute the following for H.B. No. 3067:
         By Gray                                           C.S.H.B. No. 3067
                                A BILL TO BE ENTITLED
 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.  Section 651.051(a), Occupations Code, is
6-14     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)  three [two] members who are licensed as both an
6-19     embalmer and a funeral director[] [in this state] for at least the
6-20     five years preceding appointment to the commission;  and
6-21                 (2)  four members who represent the public and who:
6-22                       (A)  are not regulated under this chapter; and
6-23                       (B)  have consistently shown an interest in
6-24     supporting consumer protection.
6-25           SECTION 1.06.  Subchapter B, Chapter 651, Occupations Code,
6-26     is amended by adding Sections 651.0511 and 651.0512 to read as
6-27     follows:
 7-1           Sec. 651.0511.  TRAINING. (a)  A person who is appointed to
 7-2     and qualifies for office as a member of the commission may not
 7-3     vote, deliberate, or be counted as a member in attendance at a
 7-4     meeting of the commission until the person completes a training
 7-5     program that complies with this section.
 7-6           (b)  The training program must provide the person with
 7-7     information regarding:
 7-8                 (1)  this chapter;
 7-9                 (2)  the programs operated by the commission;
7-10                 (3)  the role and functions of the commission;
7-11                 (4)  the rules of the commission, with an emphasis on
7-12     the rules that relate to disciplinary and investigatory authority;
7-13                 (5)  the current budget for the commission;
7-14                 (6)  the results of the most recent formal audit of the
7-15     commission;
7-16                 (7)  the requirements of:
7-17                       (A)  the open meetings law, Chapter 551,
7-18     Government Code;
7-19                       (B)  the public information law, Chapter 552,
7-20     Government Code;
7-21                       (C)  the administrative procedure law,  Chapter
7-22     2001, Government Code; and
7-23                       (D)  other laws relating to public officials,
7-24     including conflict-of-interest laws; and
7-25                 (8)  any applicable ethics policies adopted by the
7-26     commission or the Texas Ethics Commission.
7-27           (c)  A person appointed to the commission is entitled to
 8-1     reimbursement, as provided by the General Appropriations Act, for
 8-2     the travel expenses incurred in attending the training program
 8-3     regardless of whether the attendance at the program occurs before
 8-4     or after the person qualifies for office.
 8-5           Sec. 651.0512.  TRAINING FOR EMPLOYEES ON STATE INCENTIVE
 8-6     PROGRAM. The executive director or the executive director's
 8-7     designee shall provide to commission employees information and
 8-8     training on the benefits and methods of participation in the state
 8-9     employee incentive program under Subchapter B, Chapter 2108,
8-10     Government Code.
8-11           SECTION 1.07.  Section 651.052, Occupations Code, is amended
8-12     to read as follows:
8-13           Sec. 651.052.  ELIGIBILITY OF PUBLIC MEMBERS. (a)  A person
8-14     may not be [is not eligible for appointment as] a public member of
8-15     the commission if the person or the person's spouse:
8-16                 (1)  is registered, certified, or licensed by a [an
8-17     occupational] regulatory agency in the funeral service industry
8-18     [field of funeral services];
8-19                 (2)  is employed by or participates in the management
8-20     of a business entity or other organization regulated by or
8-21     receiving money from the commission [or receiving funds from the
8-22     commission];
8-23                 (3)  owns or controls, directly or indirectly, more
8-24     than a 10 percent [any] interest in a business entity or other
8-25     organization regulated by or receiving money from the commission
8-26     [or receiving funds from the commission]; or
8-27                 (4)  uses or receives a substantial amount of tangible
 9-1     goods, services, or money [funds] from the commission, other than
 9-2     compensation or reimbursement authorized by law for commission
 9-3     membership, attendance, or expenses.
 9-4           (b)  A public member of the commission may not, except as a
 9-5     consumer:
 9-6                 (1)  have a financial interest in a funeral
 9-7     establishment; or
 9-8                 (2)  be related to a person within the second degree by
 9-9     affinity or third degree by consanguinity, as determined under
9-10     Subchapter B, Chapter 573, Government Code, who has a financial
9-11     interest in a funeral establishment.
9-12           SECTION 1.08.  Section 651.053, Occupations Code, is amended
9-13     to read as follows:
9-14           Sec. 651.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS. (a)  In
9-15     this section, "Texas trade association" means a [nonprofit,]
9-16     cooperative[,] and voluntarily joined association of business or
9-17     professional competitors in this state designed to assist its
9-18     members and its industry or profession in dealing with mutual
9-19     business or professional problems and in promoting their common
9-20     interest.
9-21           (b)  A person may not be a member of the commission and may
9-22     not be a commission employee employed in a "bona fide executive,
9-23     administrative, or professional capacity," as that phrase is used
9-24     for purposes of establishing an exemption to the overtime
9-25     provisions of the federal Fair Labor Standards Act of 1938 (29
9-26     U.S.C. Section 201 et seq.), and its subsequent amendments, if:
9-27                 (1)  the person is an officer, employee, or paid
 10-1    consultant of a Texas trade association in the funeral service
 10-2    industry; or
 10-3                (2)  the person's spouse is an officer, manager, or
 10-4    paid consultant of a Texas trade association in the funeral service
 10-5    industry. [A commissioner or an employee of the commission who
 10-6    carries out the functions of the commission may not be related
 10-7    within the second degree by affinity or within the third degree by
 10-8    consanguinity, as determined under Subchapter B, Chapter 573,
 10-9    Government Code, to a person who is an officer, employee, or paid
10-10    consultant of a trade association in the funeral industry.]
10-11          (c)  [An officer, employee, or paid consultant of a Texas
10-12    trade association in the field of funeral services may not be a
10-13    commission member and may not be an employee who is exempt from the
10-14    state's position classification plan or is compensated at or above
10-15    the amount prescribed by the General Appropriations Act for step 1,
10-16    salary group A17, of the position classification salary schedule.]
10-17          [(d)  A person who is the spouse of an officer, manager, or
10-18    paid consultant of a Texas trade association in the field of
10-19    funeral services may not be a member of the commission and may not
10-20    be an employee of the commission who is exempt from the state's
10-21    position classification plan or is compensated at or above the
10-22    amount prescribed by the General Appropriations Act for step 1,
10-23    salary group A17, of the position classification salary schedule.]
10-24          [(e)  A person may not be appointed to the commission if:]
10-25                [(1)  the person is an officer or employee of a
10-26    corporation or other business entity directly or indirectly
10-27    controlling or operating more than three funeral establishments;
 11-1    and]
 11-2                [(2)  a member of the commission is an officer or
 11-3    employee of the same corporation or entity.]
 11-4          [(f)  A violation of Subsection (e) that occurs after a
 11-5    member is appointed constitutes a vacancy of each of those members'
 11-6    positions, as of the date of the completion of the merger or other
 11-7    agreement.  The vacancy shall be filled by the governor as soon as
 11-8    practicable.  A member appointed to fill a vacancy under this
 11-9    subsection serves for the remainder of the vacated term.]
11-10          [(g)]  A person may not be [serve as] a member of the
11-11    commission or act as the general counsel if the person is required
11-12    to register as a lobbyist under Chapter 305, Government Code,
11-13    because of the person's activities for compensation on behalf of a
11-14    profession related to the operation of the commission.
11-15          SECTION 1.09.  Section 651.104, Occupations Code, is amended
11-16    to read as follows:
11-17          Sec. 651.104.  DIVISION OF RESPONSIBILITIES.  The commission
11-18    shall develop and implement policies that clearly separate [define]
11-19    the policy-making responsibilities of the commission and the
11-20    management responsibilities of the executive director and staff of
11-21    the commission.
11-22          SECTION 1.10.  Section 651.107, Occupations Code, is amended
11-23    to read as follows:
11-24          Sec. 651.107.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
11-25    (a)  The executive director or the executive director's designee
11-26    shall prepare and maintain a written policy statement that
11-27    implements a program [to ensure implementation] of [an] equal
 12-1    employment opportunity to ensure that [program under which] all
 12-2    personnel decisions [transactions] are made without regard to race,
 12-3    color, disability, sex, religion, age, or national origin.
 12-4          (b)  The policy statement must include:
 12-5                (1)  personnel policies, including policies relating to
 12-6    recruitment, evaluation, selection, [appointment,] training, and
 12-7    promotion of personnel, that show the intent of the commission to
 12-8    avoid the unlawful employment practices described by Chapter 21,
 12-9    Labor Code; and
12-10                (2)  an [a comprehensive]  analysis of the extent to
12-11    which the composition of the commission's personnel is in
12-12    accordance with [commission workforce that meets] federal and state
12-13    law and a description of [guidelines;]
12-14                [(3)  procedures by which a determination can be made
12-15    of significant underuse in the commission workforce of all persons
12-16    for whom federal or state guidelines encourage a more equitable
12-17    balance; and]
12-18                [(4)]  reasonable methods to achieve compliance with
12-19    federal and state law [appropriately address those areas of
12-20    significant underuse].
12-21          (c)  The [(b)  A]  policy statement [prepared under
12-22    Subsection (a)] must:
12-23                (1)  [cover an annual period,]  be updated at least
12-24    annually;
12-25                (2)  be reviewed by the state Commission on Human
12-26    Rights for compliance with Subsection (b)(1);[,] and
12-27                (3)  be filed with the governor's office [governor].
 13-1          [(c)  The governor shall deliver a biennial report to the
 13-2    legislature based on the information received under Subsection (b).
 13-3    The report may be made separately or as a part of other biennial
 13-4    reports made to the legislature.]
 13-5          SECTION 1.11.  Section 651.157, Occupations Code, is amended
 13-6    to read as follows:
 13-7          Sec. 651.157.  INSPECTION OF FUNERAL ESTABLISHMENT. (a)
 13-8    Except as provided by Subsection (b), a [Each] licensed funeral
 13-9    establishment shall be inspected at least once every two years
13-10    [annually] by an agent of the commission or by an agent of the
13-11    state or a political subdivision authorized by the commission to
13-12    make inspections on its behalf.
13-13          (b)  If the commission finds a violation of this chapter or
13-14    of Chapter 193 or 361, Health and Safety Code, the commission shall
13-15    inspect the establishment annually until the commission determines
13-16    that the establishment is free of violations.
13-17          (c)  A report of each [the annual] inspection made under this
13-18    section shall be filed with the commission.
13-19          (d)  The commission by rule shall establish:
13-20                (1)  procedures for the inspection of a funeral
13-21    establishment required by this section; and
13-22                (2)  criteria, including consideration of the
13-23    establishment's inspection and complaint history, regarding when
13-24    the commission should inspect an establishment based on the risk of
13-25    a violation at an establishment.
13-26          (e) [(b)]  A premises on which funeral directing or embalming
13-27    is practiced shall be open at all times to inspection for any
 14-1    violation of this chapter or of Chapter 193 or 361, Health and
 14-2    Safety Code, by:
 14-3                (1)  an agent of the commission;
 14-4                (2)  an authorized agent of the state; or
 14-5                (3)  an authorized agent of the county or municipality
 14-6    in which the premises is located.
 14-7          (f) [(c)]  Before a commission agent inspects a funeral
 14-8    establishment, the agent shall review the inspection reports filed
 14-9    with the commission on the establishment.  During the inspection,
14-10    the agent shall determine whether previously identified problems
14-11    have been corrected and whether a pattern of violations exists.
14-12    The commission shall consider the information from the inspection
14-13    reports in determining whether a penalty should be imposed against
14-14    an establishment.
14-15          SECTION 1.12.  Section 651.202, Occupations Code, is amended
14-16    to read as follows:
14-17          Sec. 651.202.  COMPLAINTS. (a)  The commission by rule shall
14-18    establish methods by which consumers and service recipients are
14-19    notified of the name, mailing address, and telephone number of the
14-20    commission for the purpose of directing complaints to the
14-21    commission.  The commission may provide for that notice:
14-22                (1)  on each license form, application, or written
14-23    contract for services of a person regulated under this chapter;
14-24                (2)  on a sign prominently displayed in the place of
14-25    business of each person regulated under this chapter; or
14-26                (3)  in a bill for service provided by a person
14-27    regulated under this chapter.
 15-1          (b)  The commission shall adopt rules concerning a complaint
 15-2    filed under this section.  The rules adopted under this subsection
 15-3    must:
 15-4                (1)  establish procedures regarding the receipt,
 15-5    investigation, and disposition of complaints;
 15-6                (2)  allow for an informal hearing process;
 15-7                (3)  establish a formal hearing process;
 15-8                (4)  ensure that the person who filed the complaint has
 15-9    an opportunity to explain the allegations made in the complaint;
15-10                (5)  ensure that the license holder who is the subject
15-11    of the complaint has an opportunity to be heard regarding the
15-12    complaint; and
15-13                (6)  establish procedures by which a commission
15-14    employee may dismiss a complaint, subject to approval by the
15-15    executive director or the executive director's designee, if the
15-16    investigation does not reveal a violation.
15-17          (c)  The commission shall investigate each complaint received
15-18    by the commission relating to a funeral director, embalmer,
15-19    provisional license holder, [or] funeral establishment, or other
15-20    person licensed under this chapter.
15-21          (d)  The commission shall provide to the person filing the
15-22    complaint and to each person who is a subject of the complaint a
15-23    copy of the commission's policies and procedures relating to
15-24    complaint investigation and resolution, including [(c)  If a person
15-25    files a complaint with the commission relating to a funeral
15-26    director, embalmer, provisional license holder, or licensed funeral
15-27    establishment, the commission shall furnish to the person] an
 16-1    explanation of the remedies that are available to the person under
 16-2    this chapter and information about other appropriate state or local
 16-3    agencies or officials with which the person may file a complaint.
 16-4          (e)  The [(d)  If a written complaint is filed with the
 16-5    commission that the commission has authority to resolve, the]
 16-6    commission, at least quarterly until final disposition of the
 16-7    complaint [and on final disposition of the complaint], shall notify
 16-8    the person filing [parties to] the complaint and each person who is
 16-9    a subject of the complaint of the status of the investigation
16-10    [complaint] unless the notice would jeopardize an undercover
16-11    investigation.
16-12          (f) [(e)]  The person who filed the complaint [complainant]
16-13    is entitled to attend any proceeding resulting from the complaint.
16-14          SECTION 1.13.  Section 651.203(a), Occupations Code, is
16-15    amended to read as follows:
16-16          (a)  The commission shall maintain a [keep an information]
16-17    file on each written [about each] complaint filed with the
16-18    commission [that the commission has authority to resolve].  The
16-19    file must [commission shall] include [in each information file]:
16-20                (1)  the subject matter [a description] of the
16-21    complaint;
16-22                (2)  the date the complaint is received by the
16-23    commission [filed];
16-24                (3)  the name of the person who filed the complaint
16-25    [complainant];
16-26                (4)  the name of each person contacted in relation to
16-27    the complaint;
 17-1                (5)  a summary of the results of the review or
 17-2    investigation of the complaint; and
 17-3                (6)  an explanation of the reason the file was closed,
 17-4    if the commission closed the file without taking action other than
 17-5    to investigate the complaint [a description of any information
 17-6    obtained by the commission after investigating the complaint;]
 17-7                [(5)  a description of and the date of any formal
 17-8    action taken by the commission relating to the complaint;]
 17-9                [(6)  a description of the current status of the
17-10    complaint; and]
17-11                [(7)  any other information the commission considers
17-12    appropriate].
17-13          SECTION 1.14.  Section 651.254, Occupations Code, is amended
17-14    to read as follows:
17-15          Sec. 651.254.  LICENSE EXAMINATIONS; RESULTS. (a)  The
17-16    examinations for a funeral director's license and an embalmer's
17-17    license shall be held at least annually.  The examinations shall be
17-18    given at the time and place designated by the commission.  The
17-19    commission shall give notice of the examinations.
17-20          (b)  Not later than the 30th day after the date a person
17-21    takes a [on which a funeral director's or embalmer's] licensing
17-22    examination [is administered] under this chapter, the commission
17-23    shall notify the person [each examinee] of the results of the
17-24    examination.
17-25          (c)  If the [an] examination is graded or reviewed by a
17-26    [national] testing service:
17-27                (1)  [,] the commission shall notify the person [each
 18-1    examinee] of the results of the examination not later than the 14th
 18-2    day after the date [on which] the commission receives the results
 18-3    from the testing service; and
 18-4                (2)  if[.]
 18-5          [(c)  If the] notice of the examination results [graded or
 18-6    reviewed by a national testing service] will be delayed for longer
 18-7    than 90 days after the examination date, the commission shall
 18-8    notify the person [examinee] of the reason for the delay before the
 18-9    90th day.
18-10          (d)  The commission may require a testing service to notify a
18-11    person of the results of the person's examination.
18-12          (e)  If requested in writing by a person who fails a
18-13    licensing examination administered under this chapter, the
18-14    commission shall furnish the person with an analysis of the
18-15    person's performance on the examination.
18-16          [(e)  Notice of the time and place of an examination must be
18-17    filed with the Texas Register at least seven days before the
18-18    examination.]
18-19          SECTION 1.15.  Subchapter F, Chapter 651, Occupations Code,
18-20    is amended by adding Section 651.2595 to read as follows:
18-21          Sec. 651.2595.  PROVISIONAL LICENSE FOR OUT-OF-STATE
18-22    APPLICANT. (a)  The commission may issue a provisional license to
18-23    an applicant currently licensed in another jurisdiction who seeks a
18-24    license in this state and who:
18-25                (1)  has been licensed in good standing as a funeral
18-26    director or embalmer for at least two years in another
18-27    jurisdiction, including a foreign country, that has licensing
 19-1    requirements substantially equivalent to the requirements of this
 19-2    chapter;
 19-3                (2)  has  passed  a  national  or other  examination
 19-4    recognized by  the commission relating to the practice of funeral
 19-5    director or embalmer; and
 19-6                (3)  is sponsored by a person licensed by the
 19-7    commission under this chapter with whom the provisional license
 19-8    holder will practice during the time the person holds a provisional
 19-9    license.
19-10          (b)  The commission may waive the requirement of Subsection
19-11    (a)(3) for an applicant if the commission determines that
19-12    compliance with that subsection would be a hardship to the
19-13    applicant.
19-14          (c)  A provisional license is valid until the date the
19-15    commission approves or denies the provisional license holder's
19-16    application for a license.  The commission shall issue a license
19-17    under this chapter to the provisional license holder if:
19-18                (1)  the provisional license holder is eligible to be
19-19    licensed under Section 651.259; or
19-20                (2)  the provisional license holder:
19-21                      (A)  passes the part of the examination under
19-22    Subsection (a)  that relates to the applicant's knowledge and
19-23    understanding of the laws and rules relating to the practice of
19-24    funeral directing or embalming in this state;
19-25                      (B)  meets the academic and experience
19-26    requirements for a license under this chapter; and
19-27                      (C)  satisfies any other licensing requirements
 20-1    under this chapter.
 20-2          (d)  The commission shall approve or deny a provisional
 20-3    license holder's application for a license not later than the 180th
 20-4    day after the date the provisional license is issued.  The
 20-5    commission may extend the 180-day period if the results of an
 20-6    examination have not been received by the commission before the end
 20-7    of that period.
 20-8          (e)  The commission may establish a fee for provisional
 20-9    licenses in an amount reasonable and necessary to cover the cost of
20-10    issuing the license.
20-11          SECTION  1.16. Section 651.262, Occupations Code, is
20-12    transferred to Subchapter D, Chapter 651, Occupations Code,
20-13    redesignated as Section 651.164, Occupations Code, and amended to
20-14    read as follows:
20-15          Sec. 651.164. [Sec. 651.262.]  LICENSE EXPIRATION. The
20-16    commission by rule may adopt a system under which [funeral
20-17    director's and embalmer's] licenses expire on various dates during
20-18    the year.  [The commission shall adjust dates for sending notice
20-19    regarding payment of fees and license suspension for nonpayment
20-20    according to the system, if any, adopted under this subsection.]
20-21    For the [a] year in which the license expiration date is changed,
20-22    the commission shall prorate license fees [are prorated] on a
20-23    monthly basis so that each license holder pays only that portion of
20-24    the license fee that is allocable to the number of months during
20-25    which the license is valid.  On renewal of the license on the new
20-26    expiration date, the total license renewal fee is payable.
20-27          SECTION 1.17.  Section 651.263, Occupations Code, is
 21-1    transferred to Subchapter D, Chapter 651, Occupations Code,
 21-2    redesignated as Section 651.165, Occupations Code, and amended to
 21-3    read as follows:
 21-4          Sec. 651.165 [651.263].  RENEWAL OR REINSTATEMENT OF LICENSE.
 21-5    (a)  A person who is otherwise eligible to renew a license may
 21-6    renew an unexpired license by paying the required renewal fee to
 21-7    the commission before the expiration date of the license.  A person
 21-8    whose license has expired may not engage in activities that require
 21-9    a license until the license has been renewed.
21-10          (b)  A person whose license has been expired for 90 days or
21-11    less may renew the license by paying to the commission a [the
21-12    required] renewal fee that is [and a penalty fee] equal to 1-1/2
21-13    times the normally required [one-half the amount of the] renewal
21-14    fee [for the license].
21-15          (c)  A person whose license [If a person's license] has been
21-16    expired for more than 90 days but less than one year [five years,
21-17    the person] may renew the license by paying to the commission a
21-18    [all unpaid] renewal [fees and a penalty] fee that is equal to two
21-19    times the normally required [one-half of the total amount of the
21-20    unpaid] renewal fee [fees].
21-21          (d)  A person whose [(c)  If a person's] license has been
21-22    expired for one year or more [five years or longer, the person] may
21-23    not renew the license.  The person may obtain a new license by
21-24    [submitting to reexamination and] complying with the requirements
21-25    and procedures, including the examination requirements, for
21-26    obtaining an original license.
21-27          (e)  A person who was licensed in this state, moved to
 22-1    another state, and is currently licensed and has been in practice
 22-2    in the other state for the two years preceding the date of
 22-3    application may  obtain a new license without reexamination.  The
 22-4    person must pay to the commission a fee that is equal to two times
 22-5    the normally required renewal fee for the license.
 22-6          (f) [(d)]  At least 30 days before the expiration of a
 22-7    person's license, the commission shall send written notice of the
 22-8    impending license expiration to the person at the person's last
 22-9    known address according to the records of the commission.
22-10          SECTION 1.18.  Section 651.266, Occupations Code, is amended
22-11    to read as follows:
22-12          Sec. 651.266.  CONTINUING EDUCATION.  The commission by rule
22-13    may require continuing education as a condition for license renewal
22-14    except for a license holder described by Section 651.155 or an
22-15    applicant for renewal described by [Section 651.155 or] Section
22-16    651.265.  If the commission requires continuing education, the
22-17    commission shall require completion of a minimum number of hours of
22-18    ethics training as a required part of that education.
22-19          SECTION 1.19.  The heading to Section 651.405, Occupations
22-20    Code, is amended to read as follows:
22-21          Sec. 651.405.  RETAIL PRICE LIST; FUNERAL ESTABLISHMENT.
22-22          SECTION 1.20.  Subchapter I, Chapter 651, Occupations Code,
22-23    is amended by adding Section 651.4055 to read as follows:
22-24          Sec. 651.4055.  RETAIL PRICE LIST; CEMETERY OR CREMATORY.
22-25    (a)  In this section, "retail price list" means a printed or
22-26    typewritten list of the retail price of items or services provided
22-27    by a cemetery or crematory.
 23-1          (b)  A retail price list must contain:
 23-2                (1)  the name, address, and telephone number of the
 23-3    cemetery or crematory;
 23-4                (2)  the effective date for the stated prices;
 23-5                (3)  notice required by Subsection (c); and
 23-6                (4)  any other items that the commission may by rule
 23-7    require.
 23-8          (c)  The retail price list must contain the following printed
 23-9    notice:  "The goods and services shown below are those we can
23-10    provide to our customers.  You may choose only the items you
23-11    desire.  If legal or other requirements mean you must buy any items
23-12    you did not specifically ask for, we will explain the reason in
23-13    writing on the statement we provide describing the goods and
23-14    services you selected."
23-15          SECTION 1.21.  Subchapter I, Chapter 651, Occupations Code,
23-16    is amended by adding Section 651.4065 to read as follows:
23-17          Sec. 651.4065.  PURCHASE AGREEMENT; CEMETERY OR CREMATORY.
23-18    (a)  A purchase agreement must state:
23-19                (1)  the name, address, and telephone number of the
23-20    cemetery or crematory;
23-21                (2)  the amount paid or owed to another person by the
23-22    cemetery or crematory on behalf of the customer and each fee
23-23    charged the customer for the cost of advancing funds or becoming
23-24    indebted to another person on behalf of the customer;
23-25                (3)  the printed notice required by Subsection (b);
23-26                (4)  the name, mailing address, and telephone number of
23-27    the attorney general's consumer protection division; and
 24-1                (5)  a statement that complaints may be directed to the
 24-2    attorney general's consumer protection division.
 24-3          (b)  The purchase agreement must contain the following
 24-4    printed notice:  "Charges are only for those items that you
 24-5    selected or that are required.  If we are required by law to use
 24-6    any items, we will explain the reasons in writing below."
 24-7          (c)  An authorized person on behalf of the cemetery or
 24-8    crematory shall sign the purchase agreement.
 24-9          (d)  If the customer selects a package arrangement based on
24-10    unit pricing, the itemization requirement is satisfied by providing
24-11    a purchase agreement that itemizes the discount provided by the
24-12    package arrangement.
24-13          SECTION 1.22.  Subchapter I, Chapter 651, Occupations Code,
24-14    is amended by adding Section 651.408 to read as follows:
24-15          Sec. 651.408.  USE OF CEMETERY AND CREMATORY SERVICES;
24-16    REGISTRATION REQUIRED.  (a)  Not later than the 30th day after the
24-17    date a funeral director uses a cemetery or crematory, the director
24-18    shall register the cemetery or crematory with the commission,
24-19    unless the director has already registered the cemetery or
24-20    crematory.
24-21          (b)  The commission shall prescribe the form used for
24-22    registration.  The registration information provided by the funeral
24-23    director must include the name, address, and telephone number of
24-24    the cemetery or crematory and the name of a contact person for the
24-25    cemetery or crematory.
24-26          (c)  If necessary because of a change in information, the
24-27    funeral director shall update the registration information with
 25-1    regard to cemeteries and crematories used by the director in the
 25-2    previous calendar year at least once each year.
 25-3          SECTION 1.23.  Section 651.455, Occupations Code, is amended
 25-4    to read as follows:
 25-5          Sec.  651.455. FALSE OR MISLEADING STATEMENTS REGARDING
 25-6    FUNERAL MERCHANDISE OR FUNERAL, CEMETERY, OR CREMATORY SERVICES.
 25-7    (a)  A person violates this chapter if the person uses a statement
 25-8    that misleads or deceives the public, including a false or
 25-9    misleading statement regarding:
25-10                (1)  a legal, religious, or cemetery requirement for
25-11    funeral merchandise or funeral, cemetery, or crematory services;
25-12                (2)  the preservative qualities of funeral merchandise
25-13    or funeral, cemetery, or crematory services in preventing or
25-14    substantially delaying natural decomposition of human remains;
25-15                (3)  the airtight or watertight properties of a casket
25-16    or outer enclosure; or
25-17                (4)  the licenses held by the personnel in the
25-18    operation of the cemetery, crematory, or funeral establishment.
25-19          (b)  This section does not apply to cemetery or crematory
25-20    services that occur after burial or inurnment.
25-21          SECTION 1.24.  Subchapter K, Chapter 651, Occupations Code,
25-22    is amended by adding Section 651.5025 to read as follows:
25-23          Sec. 651.5025.  IMMEDIATE LICENSE REVOCATION; EFFECT OF
25-24    CERTAIN FELONY CONVICTIONS. (a)  The commission may revoke the
25-25    license of a license holder without a hearing if the commission
25-26    determines from the information presented to it that the license
25-27    holder has been convicted of a felony related to the practice of
 26-1    embalming, funeral directing, or another activity regulated by the
 26-2    commission under this chapter.  The commission shall notify the
 26-3    license holder if it decides to revoke the license.
 26-4          (b)  The license holder may appeal the decision by submitting
 26-5    a written request for a hearing in accordance with this chapter and
 26-6    Chapter 2001, Government Code, not later than the 30th day after
 26-7    the date of the revocation.
 26-8          SECTION 1.25.  Subchapter L, Chapter 651, Occupations Code,
 26-9    is amended by adding Section 651.5515 to read as follows:
26-10          Sec. 651.5515.  PENALTY GUIDELINES. (a)  The commission by
26-11    rule shall adopt guidelines that define and summarize the
26-12    violations that occur under this subchapter to assist the
26-13    commission in maintaining consistency in determining the amount of
26-14    an administrative penalty assessed under Section 651.552.  Using
26-15    those guidelines and the summary, the commission shall establish
26-16    and maintain a chart that lists:
26-17                (1)  the most common violations;
26-18                (2)  the penalty amounts assessed for those violations;
26-19    and
26-20                (3)  the factors used to grade each type of violation
26-21    before determining the penalty amount under Section 651.552.
26-22          (b)  The commission shall consider using focus groups to
26-23    obtain business and consumer input to match appropriate penalties
26-24    to violations before proposing the rules under this section.
26-25          (c)  The commission shall post the guidelines on the
26-26    commission's Internet site.
26-27          SECTION 1.26.  Section 651.552, Occupations Code, is amended
 27-1    to read as follows:
 27-2          Sec. 651.552.  AMOUNT OF PENALTY. (a)  The amount of the
 27-3    administrative penalty shall be not less than $100 or more than
 27-4    $5,000 for each violation.
 27-5          (b)  In determining the amount of the penalty, the commission
 27-6    shall base its decision on:
 27-7                (1)  the seriousness of the violation;
 27-8                (2)  the threat the violation poses to health and
 27-9    safety;
27-10                (3)  the history of previous violations;
27-11                (4)  the amount necessary to deter a future violation;
27-12                (5)  efforts made to correct the violation;
27-13                (6)  the guidelines adopted under Section 651.5515; and
27-14                (7)  any other matter that justice requires [employ
27-15    guidelines established by commission rule].
27-16          SECTION 1.27.  Section 651.553(b), Occupations Code, is
27-17    amended to read as follows:
27-18          (b)  Not later than the 10th day after the date the report is
27-19    issued, the commission shall send to the person charged with the
27-20    violation:
27-21                (1)  a copy of the report;
27-22                (2)  a statement of the right of the person to a
27-23    hearing relating to the alleged violation; [and]
27-24                (3)  a statement of the amount of the penalty; and
27-25                (4)  an explanation for any significant deviation from
27-26    the penalty amount assessed for similar violations.
27-27                ARTICLE 2.  INFORMATION AND LEGAL RESOURCES
 28-1          SECTION 2.01.  DEFINITIONS.  In this article:
 28-2                (1)  "Funeral commission" means the Texas Funeral
 28-3    Service Commission.
 28-4                (2)  "Task force" means the task force created under
 28-5    Section 2.06 of this article.
 28-6          SECTION 2.02.  INFORMATION RESOURCES. (a)  The Department of
 28-7    Information Resources shall assist the funeral commission in
 28-8    negotiating a contract for software and technical support to
 28-9    improve the compilation of statistics and other information using
28-10    information resources.  The Department of Information Resources is
28-11    not responsible for implementing or providing the technical support
28-12    to the funeral commission regarding the software.
28-13          (b)  The statistics and other information compiled under
28-14    Subsection (a)  of this section must include:
28-15                (1)  data about complaints, licenses, registrations,
28-16    and sanctions, including the number of new individual versus dual
28-17    licenses issued;
28-18                (2)  the number of complaints received that are outside
28-19    of the commission's jurisdictions;
28-20                (3)  the average cost of complaints resolved;
28-21                (4)  summaries of violations and actions taken; and
28-22                (5)  any information necessary to help the attorney
28-23    general enforce delinquent child support orders among persons
28-24    licensed or registered by the commission.
28-25          SECTION 2.03.  LEGAL RESOURCES.  The funeral commission shall
28-26    contract with the attorney general to ensure adequate access to
28-27    legal services from the attorney general, including:
 29-1                (1)  consultation about the daily operations of the
 29-2    funeral commission, including complaint, inspection, and other
 29-3    enforcement procedures; and
 29-4                (2)  legal interpretations regarding Chapter 651,
 29-5    Occupations Code.
 29-6          SECTION 2.04.  PLAN.  Not later than December 1, 2001, the
 29-7    funeral commission shall develop a plan that details the manner in
 29-8    which it will  implement the requirements of Sections 2.02 and 2.03
 29-9    of this article.  The plan must include:
29-10                (1)  a priority for each required task;
29-11                (2)  the identity of any solutions that may be quickly
29-12    implemented;
29-13                (3)  a cost estimate; and
29-14                (4)  a schedule for task completion.
29-15          SECTION 2.05.  STATUS REPORTS. The funeral commission shall
29-16    report once each quarter on the status of its efforts under
29-17    Sections 2.02, 2.03, and 2.04 of this article to:
29-18                (1)  the Sunset Advisory Commission; and
29-19                (2)  the task force.
29-20          SECTION 2.06.  TASK FORCE.  (a)  A task force is created to:
29-21                (1)  review the plan developed by the funeral
29-22    commission under Section 2.04 of this article; and
29-23                (2)  monitor the funeral commission's implementation of
29-24    the changes recommended by the plan.
29-25          (b)  The task force is composed of six members, appointed not
29-26    later than October 1, 2001, as follows:
29-27                (1)  a representative from and appointed by each of the
 30-1    following state officers or agencies:
 30-2                      (A)  the attorney general;
 30-3                      (B)  the comptroller;
 30-4                      (C)  the Department of Information Resources; and
 30-5                      (D)  the state auditor;
 30-6                (2)  a consumer representative, appointed by the
 30-7    comptroller; and
 30-8                (3)  a representative of the funeral industry,
 30-9    appointed by the comptroller.
30-10          (c)  The representative of the comptroller shall serve as the
30-11    presiding officer of the task force.
30-12          (d)  The task force shall meet at least once a month.
30-13          (e)  The task force is abolished and this section expires
30-14    January 15, 2003.
30-15          SECTION 2.07.  EXPIRATION.  This article expires September 1,
30-16    2003.
30-17              ARTICLE 3. REPEALER; TRANSITION; EFFECTIVE DATE
30-18          SECTION 3.01. (a)  Sections 651.305(a) and (b), 651.354, and
30-19    651.506(i), Occupations Code, are repealed.
30-20          (b)  Section 651.353, Occupations Code, is repealed effective
30-21    September 30, 2001.
30-22          SECTION 3.02.  (a)  In this section:
30-23                (1)  "Funeral commission" means the Texas Funeral
30-24    Service Commission.
30-25                (2)  "Sunset commission" means the Sunset Advisory
30-26    Commission.
30-27          (b)  In performing its duties under Section 651.002,
 31-1    Occupations Code, as amended by this Act, and Chapter 325,
 31-2    Government Code (Texas Sunset Act), the sunset commission may limit
 31-3    the scope of its review of the funeral commission.
 31-4          (c)  As part of the review, the sunset commission shall
 31-5    determine how much progress the funeral commission has made in
 31-6    addressing and implementing solutions required by this Act,
 31-7    including solutions regarding:
 31-8                (1)  information resources and legal services issues
 31-9    under Article 2 of this Act;
31-10                (2)  formal rules outlining an open and fair complaint
31-11    system;
31-12                (3)  clearer guidelines to ensure a more effective use
31-13    of penalties;
31-14                (4)  a risk-based approach to scheduling inspections;
31-15    and
31-16                (5)  any other analyses that it determines are
31-17    appropriate.
31-18          (d)  Not later than September 1, 2002, the funeral commission
31-19    shall report to the sunset commission on the status of its progress
31-20    under this Act.
31-21          (e)  If the sunset commission determines that the funeral
31-22    commission has not made substantial progress, the sunset commission
31-23    shall consider whether to recommend that the legislature abolish
31-24    the funeral commission and transfer its functions to the Texas
31-25    Department of Licensing and Regulation.
31-26          SECTION 3.03.  Not later than March 1, 2002, the Texas
31-27    Funeral Service Commission shall adopt the rules required by
 32-1    Section 651.202(b), Occupations Code, as amended by this Act.  In
 32-2    adopting these rules, the commission shall examine, and use as a
 32-3    guide, the rules adopted by the Board of Nurse Examiners relating
 32-4    to complaint investigation, disposition, and related proceedings.
 32-5          SECTION 3.04.  Not later than March 1, 2002, the Texas
 32-6    Funeral Service Commission shall adopt the rules required by
 32-7    Section 651.5515, Occupations Code, as added by this Act.
 32-8          SECTION 3.05. (a)  The Texas Funeral Service Commission shall
 32-9    study the risk-based assessment methods used by the Texas
32-10    Department of Health and the Texas Department of Licensing and
32-11    Regulation in conducting inspections required by law.
32-12          (b)  Based on the study conducted under Subsection (a) of
32-13    this section, not later than March 1, 2002, the Texas Funeral
32-14    Service Commission shall adopt the rules required by Section
32-15    651.157(d)(2), Occupations Code, as added by this Act.
32-16          SECTION 3.06.  (a)  Not later than November 1, 2001, the
32-17    governor shall appoint the additional member of the Texas Funeral
32-18    Service Commission required under Section 651.051(a)(1),
32-19    Occupations Code, as amended by this Act.
32-20          (b)  The changes in law made by this Act in the
32-21    qualifications of, and the prohibitions applying to, the members of
32-22    the Texas Funeral Service Commission do not affect the entitlement
32-23    of a person serving as a member of the commission immediately
32-24    before September 1, 2001, to continue to carry out the functions of
32-25    the person's office for the remainder of the person's term.  The
32-26    changes in law apply only to a person appointed on or after
32-27    September 1, 2001. This Act does not prohibit a person who is a
 33-1    member of the Texas Funeral Service Commission immediately before
 33-2    September 1, 2001, from being reappointed as a commission member if
 33-3    the person has the qualifications required for the position under
 33-4    Subchapter B, Chapter 651, Occupations Code, as amended by this
 33-5    Act.
 33-6          SECTION 3.07. (a)  In accordance with Section 311.031(c),
 33-7    Government Code, which gives effect to a substantive amendment
 33-8    enacted by the same legislature that codifies the amended statute,
 33-9    the text of the following gives effect to changes made by Chapters
33-10    1201 and 1476, Acts of the 76th Legislature, Regular Session, 1999:
33-11                (1)  Section 651.002, Occupations Code, as set out in
33-12    Section 1.04 of this Act;
33-13                (2)  Section 651.051(a), Occupations Code, as set out
33-14    in Section 1.05 of this Act; and
33-15                (3)  Section 651.053, Occupations Code, as set out in
33-16    Section 1.08 of this Act.
33-17          (b)  To the extent of any conflict, this Act prevails over
33-18    another Act of the 77th Legislature, Regular Session, 2001,
33-19    relating to nonsubstantive additions to and corrections in enacted
33-20    codes.
33-21          SECTION 3.08.  This Act takes effect September 1, 2001.