By Chisum                                             H.B. No. 3067
         77R1063 MXM-D                           
                                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.
 13-8    (a)  Except as provided by Subsection (b), a [Each] licensed
 13-9    funeral establishment shall be inspected at least once every two
13-10    years [annually] by an agent of the commission or by an agent of
13-11    the state or a political subdivision authorized by the commission
13-12    to 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.  Subchapter D, Chapter 651, Occupations Code,
14-16    is amended by adding Section 651.1575 to read as follows:
14-17          Sec. 651.1575.  INSPECTION OF CEMETERY OR CREMATORY. (a)  The
14-18    commission may inspect a cemetery or crematory only if the
14-19    commission receives a complaint about that facility under Section
14-20    651.202.
14-21          (b)  A report of an inspection made under this section shall
14-22    be filed with the commission.
14-23          (c)  The commission by rule shall establish procedures for
14-24    the inspection of a cemetery or crematory required by this section.
14-25          SECTION 1.13.  Section 651.202, Occupations Code, is amended
14-26    to read as follows:
14-27          Sec. 651.202.  COMPLAINTS. (a)  The commission by rule shall
 15-1    establish methods by which consumers and service recipients are
 15-2    notified of the name, mailing address, and telephone number of the
 15-3    commission for the purpose of directing complaints to the
 15-4    commission.  The commission may provide for that notice:
 15-5                (1)  on each license or registration form, application,
 15-6    or written contract for services of a person regulated under this
 15-7    chapter;
 15-8                (2)  on a sign prominently displayed in the place of
 15-9    business of each person regulated under this chapter; or
15-10                (3)  in a bill for service provided by a person
15-11    regulated under this chapter.
15-12          (b)  The commission shall adopt rules concerning a complaint
15-13    filed under this section.  The rules adopted under this subsection
15-14    must:
15-15                (1)  establish procedures regarding the receipt,
15-16    investigation, and disposition of complaints;
15-17                (2)  allow for an informal hearing process;
15-18                (3)  establish a formal hearing process;
15-19                (4)  ensure that the person who filed the complaint has
15-20    an opportunity to explain the allegations made in the complaint;
15-21                (5)  ensure that the license holder or registrant who
15-22    is the subject of the complaint has an opportunity to be heard
15-23    regarding the complaint; and
15-24                (6)  establish procedures by which a commission
15-25    employee may dismiss a complaint, subject to approval by the
15-26    executive director or the executive director's designee, if the
15-27    investigation does not reveal a violation.
 16-1          (c)  The commission shall investigate each complaint received
 16-2    by the commission relating to a funeral director, embalmer,
 16-3    provisional license holder, [or] funeral establishment, or other
 16-4    person licensed or registered under this chapter.
 16-5          (d)  The commission shall provide to the person filing the
 16-6    complaint and to each person who is a subject of the complaint a
 16-7    copy of the commission's policies and procedures relating to
 16-8    complaint investigation and resolution, including [(c)  If a person
 16-9    files a complaint with the commission relating to a funeral
16-10    director, embalmer, provisional license holder, or licensed funeral
16-11    establishment, the commission shall furnish to the person] an
16-12    explanation of the remedies that are available to the person under
16-13    this chapter and information about other appropriate state or local
16-14    agencies or officials with which the person may file a complaint.
16-15          (e)  The [(d)  If a written complaint is filed with the
16-16    commission that the commission has authority to resolve, the]
16-17    commission, at least quarterly until final disposition of the
16-18    complaint [and on final disposition of the complaint], shall notify
16-19    the person filing [parties to] the complaint and each person who is
16-20    a subject of the complaint of the status of the investigation
16-21    [complaint] unless the notice would jeopardize an undercover
16-22    investigation.
16-23          (f) [(e)]  The person who filed the complaint [complainant]
16-24    is entitled to attend any proceeding resulting from the complaint.
16-25          SECTION 1.14.  Section 651.203(a), Occupations Code, is
16-26    amended to read as follows:
16-27          (a)  The commission shall maintain a [keep an information]
 17-1    file on each written [about each] complaint filed with the
 17-2    commission [that the commission has authority to resolve].  The
 17-3    file must [commission shall] include [in each information file]:
 17-4                (1)  the subject matter [a description] of the
 17-5    complaint;
 17-6                (2)  the date the complaint is received by the
 17-7    commission [filed];
 17-8                (3)  the name of the person who filed the complaint
 17-9    [complainant];
17-10                (4)  the name of each person contacted in relation to
17-11    the complaint;
17-12                (5)  a summary of the results of the review or
17-13    investigation of the complaint; and
17-14                (6)  an explanation of the reason the file was closed,
17-15    if the commission closed the file without taking action other than
17-16    to investigate the complaint [a description of any information
17-17    obtained by the commission after investigating the complaint;]
17-18                [(5)  a description of and the date of any formal
17-19    action taken by the commission relating to the complaint;]
17-20                [(6)  a description of the current status of the
17-21    complaint; and]
17-22                [(7)  any other information the commission considers
17-23    appropriate].
17-24          SECTION 1.15.  Section 651.254, Occupations Code, is amended
17-25    to read as follows:
17-26          Sec. 651.254.  LICENSE EXAMINATIONS;  RESULTS. (a)  The
17-27    examinations for a funeral director's license and an embalmer's
 18-1    license shall be held at least annually.  The examinations shall be
 18-2    given at the time and place designated by the commission.  The
 18-3    commission shall give notice of the examinations.
 18-4          (b)  Not later than the 30th day after the date a person
 18-5    takes a [on which a funeral director's or embalmer's] licensing
 18-6    examination [is administered] under this chapter, the commission
 18-7    shall notify the person [each examinee] of the results of the
 18-8    examination.
 18-9          (c)  If the [an] examination is graded or reviewed by a
18-10    [national] testing service:
18-11                (1)  [,] the commission shall notify the person [each
18-12    examinee] of the results of the examination not later than the 14th
18-13    day after the date [on which] the commission receives the results
18-14    from the testing service; and
18-15                (2)  if[.]
18-16          [(c)  If the] notice of the examination results [graded or
18-17    reviewed by a national testing service] will be delayed for longer
18-18    than 90 days after the examination date, the commission shall
18-19    notify the person [examinee] of the reason for the delay before the
18-20    90th day.
18-21          (d)  The commission may require a testing service to notify a
18-22    person of the results of the person's examination.
18-23          (e)  If requested in writing by a person who fails a
18-24    licensing examination administered under this chapter, the
18-25    commission shall furnish the person with an analysis of the
18-26    person's performance on the examination.
18-27          [(e)  Notice of the time and place of an examination must be
 19-1    filed with the Texas Register at least seven days before the
 19-2    examination.]
 19-3          SECTION 1.16.  Subchapter F, Chapter 651, Occupations Code,
 19-4    is amended by adding Section 651.2595 to read as follows:
 19-5          Sec. 651.2595.  PROVISIONAL LICENSE. (a)  The commission may
 19-6    issue a provisional license to an applicant currently licensed in
 19-7    another jurisdiction who seeks a license in this state and who:
 19-8                (1)  has been licensed in good standing as a funeral
 19-9    director or embalmer for at least two years in another
19-10    jurisdiction, including a foreign country, that has licensing
19-11    requirements substantially equivalent to the requirements of this
19-12    chapter;
19-13                (2)  has  passed  a  national  or other  examination
19-14    recognized by  the commission relating to the practice of funeral
19-15    director or embalmer; and
19-16                (3)  is sponsored by a person licensed by the
19-17    commission under this chapter with whom the provisional license
19-18    holder will practice during the time the person holds a provisional
19-19    license.
19-20          (b)  The commission may waive the requirement of Subsection
19-21    (a)(3) for an applicant if the commission determines that
19-22    compliance with that subsection would be a hardship to the
19-23    applicant.
19-24          (c)  A provisional license is valid until the date the
19-25    commission approves or denies the provisional license holder's
19-26    application for a license.  The commission shall issue a license
19-27    under this chapter to the provisional license holder if:
 20-1                (1)  the provisional license holder is eligible to be
 20-2    licensed under Section 651.259; or
 20-3                (2)  the provisional license holder:
 20-4                      (A)  passes the part of the examination under
 20-5    Subsection (a)  that relates to the applicant's knowledge and
 20-6    understanding of the laws and rules relating to the practice of
 20-7    funeral directing or embalming in this state;
 20-8                      (B)  meets the academic and experience
 20-9    requirements for a license under this chapter; and
20-10                      (C)  satisfies any other licensing requirements
20-11    under this chapter.
20-12          (d)  The commission shall approve or deny a provisional
20-13    license holder's application for a license not later than the 180th
20-14    day after the date the provisional license is issued.  The
20-15    commission may extend the 180-day period if the results of an
20-16    examination have not been received by the commission before the end
20-17    of that period.
20-18          (e)  The commission may establish a fee for provisional
20-19    licenses in an amount reasonable and necessary to cover the cost of
20-20    issuing the license.
20-21          SECTION  1.17. Section 651.262, Occupations Code, is
20-22    transferred to Subchapter D, Chapter 651, Occupations Code,
20-23    redesignated as Section 651.164, Occupations Code, and amended to
20-24    read as follows:
20-25          Sec. 651.164. [Sec. 651.262.]  LICENSE OR REGISTRATION
20-26    EXPIRATION. The commission by rule may adopt a system under which
20-27    [funeral director's and embalmer's] licenses or registrations
 21-1    expire on various dates during the year.  [The commission shall
 21-2    adjust dates for sending notice regarding payment of fees and
 21-3    license suspension for nonpayment according to the system, if any,
 21-4    adopted under this subsection.]  For the [a] year in which the
 21-5    license or registration expiration date is changed, the commission
 21-6    shall prorate license or registration fees [are prorated] on a
 21-7    monthly basis so that each license holder or registrant pays only
 21-8    that portion of the license or registration fee that is allocable
 21-9    to the number of months during which the license or registration is
21-10    valid.  On renewal of the license or registration on the new
21-11    expiration date, the total license or registration renewal fee is
21-12    payable.
21-13          SECTION 1.18. Section 651.263, Occupations Code, is
21-14    transferred to Subchapter D, Chapter 651, Occupations Code,
21-15    redesignated as Section 651.165, Occupations Code, and amended to
21-16    read as follows:
21-17          Sec. 651.165 [651.263].  RENEWAL OR REINSTATEMENT OF LICENSE.
21-18    (a)  A person who is otherwise eligible to renew a license may
21-19    renew an unexpired license by paying the required renewal fee to
21-20    the commission before the expiration date of the license.  A person
21-21    whose license has expired may not engage in activities that require
21-22    a license until the license has been renewed.
21-23          (b)  A person whose license has been expired for 90 days or
21-24    less may renew the license by paying to the commission a [the
21-25    required] renewal fee that is [and a penalty fee] equal to 1-1/2
21-26    times the normally required [one-half the amount of the] renewal
21-27    fee [for the license].
 22-1          (c)  A person whose license [If a person's license] has been
 22-2    expired for more than 90 days but less than one year [five years,
 22-3    the person] may renew the license by paying to the commission a
 22-4    [all unpaid] renewal [fees and a penalty] fee that is equal to two
 22-5    times the normally required [one-half of the total amount of the
 22-6    unpaid] renewal fee [fees].
 22-7          (d)  A person whose [(c)  If a person's] license has been
 22-8    expired for one year or more [five years or longer, the person] may
 22-9    not renew the license.  The person may obtain a new license by
22-10    [submitting to reexamination and] complying with the requirements
22-11    and procedures, including the examination requirements, for
22-12    obtaining an original license.
22-13          (e)  A person who was licensed in this state, moved to
22-14    another state, and is currently licensed and has been in practice
22-15    in the other state for the two years preceding the date of
22-16    application may  obtain a new license without reexamination.  The
22-17    person must pay to the commission a fee that is equal to two times
22-18    the normally required renewal fee for the license.
22-19          (f) [(d)]  At least 30 days before the expiration of a
22-20    person's license, the commission shall send written notice of the
22-21    impending license expiration to the person at the person's last
22-22    known address according to the records of the commission.
22-23          SECTION 1.19.  Section 651.266, Occupations Code, is amended
22-24    to read as follows:
22-25          Sec. 651.266.  CONTINUING EDUCATION. The commission by rule
22-26    may require continuing education as a condition for license renewal
22-27    except for a license holder described by Section 651.155 or an
 23-1    applicant for renewal described by [Section 651.155 or] Section
 23-2    651.265.  If the commission requires continuing education, the
 23-3    commission shall require completion of a minimum number of hours of
 23-4    ethics training as a required part of that education.
 23-5          SECTION 1.20.  The heading to Section 651.405, Occupations
 23-6    Code, is amended to read as follows:
 23-7          Sec. 651.405.  RETAIL PRICE LIST; FUNERAL ESTABLISHMENT.
 23-8          SECTION 1.21.  Subchapter I, Chapter 651, Occupations Code,
 23-9    is amended by adding Section 651.4055 to read as follows:
23-10          Sec. 651.4055.  RETAIL PRICE LIST; CEMETERY OR CREMATORY.
23-11    (a)  In this section, "retail price list" means a printed or
23-12    typewritten list of the retail price of items or services provided
23-13    by a cemetery or crematory.
23-14          (b)  A retail price list must contain:
23-15                (1)  the name, address, and telephone number of the
23-16    cemetery or crematory;
23-17                (2)  the effective date for the stated prices;
23-18                (3)  notice required by Subsection (c); and
23-19                (4)  any other items that the commission may by rule
23-20    require.
23-21          (c)  The retail price list must contain the following printed
23-22    notice:  "The goods and services shown below are those we can
23-23    provide to our customers.  You may choose only the items you
23-24    desire.  If legal or other requirements mean you must buy any items
23-25    you did not specifically ask for, we will explain the reason in
23-26    writing on the statement we provide describing the goods and
23-27    services you selected."
 24-1          SECTION 1.22.  The heading to Section 651.406, Occupations
 24-2    Code, is amended to read as follows:
 24-3          Sec. 651.406.  PURCHASE AGREEMENT; FUNERAL ESTABLISHMENT.
 24-4          SECTION 1.23.  Subchapter I, Chapter 651, Occupations Code,
 24-5    is amended by adding Section 651.4065 to read as follows:
 24-6          Sec. 651.4065.  PURCHASE AGREEMENT; CEMETERY OR CREMATORY.
 24-7    (a)  A purchase agreement must state:
 24-8                (1)  the name, address, and telephone number of the
 24-9    cemetery or crematory;
24-10                (2)  the amount paid or owed to another person by the
24-11    cemetery or crematory on behalf of the customer and each fee
24-12    charged the customer for the cost of advancing funds or becoming
24-13    indebted to another person on behalf of the customer;
24-14                (3)  the printed notice required by Subsection (b);
24-15                (4)  the name, mailing address, and telephone number of
24-16    the commission;
24-17                (5)  a statement that complaints may be directed to the
24-18    commission; and
24-19                (6)  any other items that the commission may by rule
24-20    require.
24-21          (b)  The purchase agreement must contain the following
24-22    printed notice:  "Charges are only for those items that you
24-23    selected or that are required.  If we are required by law to use
24-24    any items, we will explain the reasons in writing below."
24-25          (c)  The registrant for the cemetery or crematory  shall sign
24-26    the purchase agreement.
24-27          (d)  If the customer selects a package arrangement based on
 25-1    unit pricing, the itemization requirement is satisfied by providing
 25-2    a purchase agreement that itemizes the discount provided by the
 25-3    package arrangement.
 25-4          SECTION 1.24.  Subchapter I, Chapter 651, Occupations Code,
 25-5    is amended by adding Section 651.408 to read as follows:
 25-6          Sec. 651.408.  USE OF CEMETERY AND CREMATORY SERVICES. The
 25-7    fact that a funeral director contracts for cemetery or crematory
 25-8    services, including as part of a package arrangement, does not
 25-9    limit the director's liability to the customer for those services.
25-10          SECTION 1.25. Section 651.451, Occupations Code, is amended
25-11    to read as follows:
25-12          Sec. 651.451.  CERTAIN FRAUDULENT AND DECEPTIVE ACTS. A
25-13    person violates this chapter if the person:
25-14                (1)  presents to the commission a license, certificate,
25-15    registration, or diploma that was illegally or fraudulently
25-16    obtained;
25-17                (2)  uses fraud or deception in passing the
25-18    examination, including impersonating or acting as a proxy for
25-19    another person in the examination;
25-20                (3)  purchases, sells, barters, or uses, or offers to
25-21    purchase, sell, barter, or use, a license, registration,
25-22    certificate, or transcript of a license, registration, or
25-23    certificate in or incident to an application to the commission for
25-24    a license or registration issued under this chapter [to practice as
25-25    a funeral director or embalmer];
25-26                (4)  alters, with fraudulent intent, a [funeral
25-27    director's or embalmer's] license, registration, or certificate
 26-1    issued under this chapter or a transcript of a license,
 26-2    registration, or certificate;
 26-3                (5)  uses a [funeral director's or embalmer's] license,
 26-4    registration, certificate, or diploma issued under this chapter or
 26-5    a transcript of a [funeral director's or embalmer's] license,
 26-6    registration, certificate, or diploma that has been fraudulently
 26-7    purchased, issued, counterfeited, or materially altered;
 26-8                (6)  impersonates a funeral director, [or] embalmer, or
 26-9    other person regulated under this chapter;
26-10                (7)  permits another to use the person's license or
26-11    registration to perform an activity regulated under this chapter
26-12    [practice as a funeral director or embalmer in this state]; or
26-13                (8)  presents false certification of work done as a
26-14    provisional license holder.
26-15          SECTION 1.26.  Section 651.452, Occupations Code, is amended
26-16    to read as follows:
26-17          Sec. 651.452.  LACK OF FITNESS TO PRACTICE. A person violates
26-18    this chapter if the person is:
26-19                (1)  convicted of:
26-20                      (A)  a misdemeanor related to the practice of
26-21    embalming, [or] funeral directing, or another activity regulated
26-22    under this chapter; or
26-23                      (B)  a felony;
26-24                (2)  unfit to practice as a funeral director or
26-25    embalmer because of insanity and determined by a court to be of
26-26    unsound mind; or
26-27                (3)  unfit to practice because of current substance
 27-1    abuse.
 27-2          SECTION 1.27.  Section 651.455, Occupations Code, is amended
 27-3    to read as follows:
 27-4          Sec.  651.455. FALSE OR MISLEADING STATEMENTS REGARDING
 27-5    FUNERAL MERCHANDISE OR FUNERAL, CEMETERY, OR CREMATORY SERVICES.
 27-6    (a)  A person violates this chapter if the person uses a statement
 27-7    that misleads or deceives the public, including a false or
 27-8    misleading statement regarding:
 27-9                (1)  a legal, religious, or cemetery requirement for
27-10    funeral merchandise or funeral, cemetery, or crematory services;
27-11                (2)  the preservative qualities of funeral merchandise
27-12    or funeral, cemetery, or crematory services in preventing or
27-13    substantially delaying natural decomposition of human remains;
27-14                (3)  the airtight or watertight properties of a casket
27-15    or outer enclosure; or
27-16                (4)  the licenses or registrations held by the
27-17    personnel in the operation of the cemetery, crematory, or funeral
27-18    establishment.
27-19          (b)  This section does not apply to cemetery or crematory
27-20    services that occur after burial or inurnment.
27-21          SECTION 1.28.  Subchapter K, Chapter 651, Occupations Code,
27-22    is amended by adding Section 651.5025 to read as follows:
27-23          Sec. 651.5025.  IMMEDIATE LICENSE REVOCATION; EFFECT OF
27-24    CERTAIN FELONY CONVICTIONS. (a)  The commission may revoke the
27-25    license of a license holder without a hearing if the commission
27-26    determines from the information presented to it that the license
27-27    holder has been convicted of a felony related to the practice of
 28-1    embalming, funeral directing, or another activity regulated by the
 28-2    commission under this chapter.  The commission shall notify the
 28-3    license holder if it decides to revoke the license.
 28-4          (b)  The license holder may appeal the decision by submitting
 28-5    a written request for a hearing in accordance with this chapter and
 28-6    Chapter 2001, Government Code, not later than the 30th day after
 28-7    the date of the revocation.
 28-8          SECTION 1.29.  Subchapter L, Chapter 651, Occupations Code,
 28-9    is amended by adding Section 651.5515 to read as follows:
28-10          Sec. 651.5515.  PENALTY GUIDELINES. (a)  The commission by
28-11    rule shall adopt guidelines that define and summarize the
28-12    violations that occur under this subchapter to assist the
28-13    commission in maintaining consistency in determining the amount of
28-14    an administrative penalty assessed under Section 651.552.  Using
28-15    those guidelines and the summary, the commission shall establish
28-16    and maintain a chart that lists:
28-17                (1)  the most common violations;
28-18                (2)  the penalty amounts assessed for those violations;
28-19    and
28-20                (3)  the factors used to grade each type of violation
28-21    before determining the penalty amount under Section 651.552.
28-22          (b)  The commission shall consider using focus groups to
28-23    obtain business and consumer input to match appropriate penalties
28-24    to violations before proposing the rules under this section.
28-25          (c)  The commission shall post the guidelines on the
28-26    commission's Internet site.
28-27          SECTION 1.30.  Section 651.552, Occupations Code, is amended
 29-1    to read as follows:
 29-2          Sec. 651.552.  AMOUNT OF PENALTY. (a)  The amount of the
 29-3    administrative penalty shall be not less than $100 or more than
 29-4    $5,000 for each violation.
 29-5          (b)  In determining the amount of the penalty, the commission
 29-6    shall base its decision on:
 29-7                (1)  the seriousness of the violation;
 29-8                (2)  the threat the violation poses to health and
 29-9    safety;
29-10                (3)  the history of previous violations;
29-11                (4)  the amount necessary to deter a future violation;
29-12                (5)  efforts made to correct the violation;
29-13                (6)  the guidelines adopted under Section 651.5515; and
29-14                (7)  any other matter that justice requires [employ
29-15    guidelines established by commission rule].
29-16          SECTION 1.31.  Section 651.553(b), Occupations Code, is
29-17    amended to read as follows:
29-18          (b)  Not later than the 10th day after the date the report is
29-19    issued, the commission shall send to the person charged with the
29-20    violation:
29-21                (1)  a copy of the report;
29-22                (2)  a statement of the right of the person to a
29-23    hearing relating to the alleged violation; [and]
29-24                (3)  a statement of the amount of the penalty; and
29-25                (4)  an explanation for any significant deviation from
29-26    the penalty amount assessed for similar violations.
29-27          SECTION 1.32.  Chapter 651, Occupations Code, is amended by
 30-1    adding Subchapter N to read as follows:
 30-2                 SUBCHAPTER N.  REGISTRATION REQUIREMENTS:
 30-3                        CEMETERIES AND CREMATORIES
 30-4          Sec. 651.651.  DEFINITION. In this subchapter, "perpetual
 30-5    care cemetery" means a person who notifies the Texas Department of
 30-6    Banking of its intent to operate a perpetual care cemetery in this
 30-7    state under Section 712.0031, Health and Safety Code.
 30-8          Sec. 651.652.  APPLICABILITY. (a)  This subchapter applies
 30-9    only to a cemetery or crematory that sells goods or services
30-10    related to the burial or final disposition of a body.
30-11          (b)  This subchapter does not apply to the maintenance of a
30-12    cemetery or crematory, including maintenance of any goods or
30-13    services provided under Chapter 711 or 712, Health and Safety Code.
30-14          Sec. 651.653.  CEMETERY OR CREMATORY REGISTRATION
30-15    REQUIREMENTS. (a)  A person may not conduct a cemetery or crematory
30-16    business in this state unless an individual who is the owner or
30-17    operator of the cemetery or crematory registers with the
30-18    commission.
30-19          (b)  A cemetery or crematory may  be owned by a person who is
30-20    not registered under this chapter.
30-21          (c)  To register, the individual must apply for a
30-22    registration and pay the registration fee.  The commission shall
30-23    register the individual on determining that the individual
30-24    satisfies the requirements of this section.
30-25          (d)  The individual must:
30-26                (1)  explain the purpose of the cemetery or crematory
30-27    business;
 31-1                (2)  provide the address and other contact information
 31-2    for the business; and
 31-3                (3)  identify the individual owner or operator who is
 31-4    registering.
 31-5          (e)  The commission by rule shall establish the fee to
 31-6    register  under this subchapter.  The fee must include the cost of
 31-7    regulating registrants under this chapter, including discipline and
 31-8    investigation of complaints.
 31-9          Sec. 651.654.  PERPETUAL CARE CEMETERIES. (a)  On request by
31-10    the commission, the Texas Department of Banking shall provide the
31-11    commission a list of perpetual care cemeteries, including the
31-12    address and other contact information for each cemetery.  The
31-13    commission shall annually register, under this subchapter, each
31-14    perpetual care cemetery on that list.
31-15          (b)  A perpetual care cemetery is not required to pay a
31-16    registration fee under this subchapter.
31-17          Sec. 651.655.  RENEWAL OF CEMETERY OR CREMATORY REGISTRATION.
31-18    (a)  The commission shall mail written notice to a registrant of
31-19    the impending expiration of the registration not later than the
31-20    30th day before the expiration date of the registration.  The
31-21    notice must state that:
31-22                (1)  to renew the registration, the registrant must pay
31-23    the renewal fee not later than the date on which the registration
31-24    expires; and
31-25                (2)  the registration is automatically renewed on
31-26    receipt of the renewal fee.
31-27          (b)  A registrant who fails to pay the renewal fee by the due
 32-1    date is subject to a late payment penalty equal to the amount
 32-2    charged for the renewal fee.
 32-3          (c)  If the registration is expired for longer than 30 days,
 32-4    the registrant may not renew the registration, and the cemetery or
 32-5    crematory may not be operated, until the owner or operator
 32-6    registers as provided by Section 651.653.
 32-7          (d)  This section does not apply to a perpetual care
 32-8    cemetery.
 32-9          SECTION 1.33.  The heading to Subtitle L, Title 3,
32-10    Occupations Code, is amended to read as follows:
32-11               SUBTITLE L. CEMETERY AND CREMATORY SERVICES,
32-12                     FUNERAL DIRECTING, AND EMBALMING
32-13          SECTION 1.34.  The heading to Chapter 651, Occupations Code,
32-14    is amended to read as follows:
32-15     CHAPTER 651. CEMETERY AND CREMATORY SERVICES, FUNERAL DIRECTING,
32-16                               AND EMBALMING
32-17                ARTICLE 2.  INFORMATION AND LEGAL RESOURCES
32-18          SECTION 2.01.  DEFINITIONS.  In this article:
32-19                (1)  "Funeral commission" means the Texas Funeral
32-20    Service Commission.
32-21                (2)  "Task force" means the task force created under
32-22    Section 2.06 of this article.
32-23          SECTION 2.02.  INFORMATION RESOURCES. (a)  The funeral
32-24    commission shall contract with the Department of Information
32-25    Resources to improve the compilation of statistics and other
32-26    information using information resources.  The contract must expire
32-27    before the fiscal year that begins September 1, 2003.  In order to
 33-1    meet this goal, the contract shall require the department to
 33-2    analyze and implement changes to meet the technology needs of the
 33-3    funeral commission regarding the compilation of information
 33-4    necessary to effectively regulate the funeral industry.
 33-5          (b)  The statistics and other information compiled under
 33-6    Subsection (a)  of this section must include:
 33-7                (1)  data about complaints, licenses, registrations,
 33-8    and sanctions, including the number of new individual versus dual
 33-9    licenses issued;
33-10                (2)  the number of complaints received that are outside
33-11    of the commission's jurisdictions;
33-12                (3)  the average cost of complaints resolved;
33-13                (4)  summaries of violations and actions taken; and
33-14                (5)  any information necessary to help the attorney
33-15    general enforce delinquent child support orders among persons
33-16    licensed or registered by the commission.
33-17          SECTION 2.03.  LEGAL RESOURCES. The funeral commission shall
33-18    contract with the attorney general to ensure adequate access to
33-19    legal services from the attorney general, including:
33-20                (1)  consultation about the daily operations of the
33-21    funeral commission, including complaint, inspection, and other
33-22    enforcement procedures; and
33-23                (2)  legal interpretations regarding Chapter 651,
33-24    Occupations Code.
33-25          SECTION 2.04.  PLAN. Not later than December 1, 2001, the
33-26    funeral commission shall develop a plan that details the manner in
33-27    which it will  implement the requirements of Sections 2.02 and 2.03
 34-1    of this article.  The plan must include:
 34-2                (1)  a priority for each required task;
 34-3                (2)  the identity of any solutions that may be quickly
 34-4    implemented;
 34-5                (3)  a cost estimate; and
 34-6                (4)  a schedule for task completion.
 34-7          SECTION 2.05.  STATUS REPORTS. The funeral commission shall
 34-8    report once each quarter on the status of its efforts under
 34-9    Sections 2.02, 2.03, and 2.04 of this article to:
34-10                (1)  the Sunset Advisory Commission; and
34-11                (2)  the task force.
34-12          SECTION 2.06.  TASK FORCE. (a)  A task force is created to:
34-13                (1)  review the plan developed by the funeral
34-14    commission under Section 2.04 of this article; and
34-15                (2)  monitor the funeral commission's implementation of
34-16    the changes recommended by the plan.
34-17          (b)  The task force is composed of six members, appointed not
34-18    later than October 1, 2001, as follows:
34-19                (1)  a representative from and appointed by each of the
34-20    following state officers or agencies:
34-21                      (A)  the attorney general;
34-22                      (B)  the comptroller;
34-23                      (C)  the Department of Information Resources; and
34-24                      (D)  the state auditor;
34-25                (2)  a consumer representative, appointed by the
34-26    comptroller; and
34-27                (3)  a representative of the funeral industry,
 35-1    appointed by the comptroller.
 35-2          (c)  The representative of the comptroller shall serve as the
 35-3    presiding officer of the task force.
 35-4          (d)  The task force shall meet at least once a month.
 35-5          (e)  The task force is abolished and this section expires
 35-6    January 15, 2003.
 35-7          SECTION 2.07.  This article expires September 1, 2003.
 35-8              ARTICLE 3. REPEALER; TRANSITION; EFFECTIVE DATE
 35-9          SECTION 3.01. (a)  Sections 651.305(a) and (b), 651.354, and
35-10    651.506(i), Occupations Code, are repealed.
35-11          (b)  Section 651.353, Occupations Code, is repealed effective
35-12    September 30, 2001.
35-13          SECTION 3.02. (a)  In this section:
35-14                (1)  "Funeral commission" means the Texas Funeral
35-15    Service Commission.
35-16                (2)  "Sunset commission" means the Sunset Advisory
35-17    Commission.
35-18          (b)  In performing its duties under Section 651.002,
35-19    Occupations Code, as amended by this Act, and Chapter 325,
35-20    Government Code (Texas Sunset Act), the sunset commission may limit
35-21    the scope of its review of the funeral commission.
35-22          (c)  As part of the review, the sunset commission shall
35-23    determine how much progress the funeral commission has made in
35-24    addressing and implementing solutions required by this Act,
35-25    including solutions regarding:
35-26                (1)  information resources and legal services issues
35-27    under Article 2 of this Act;
 36-1                (2)  formal rules outlining an open and fair complaint
 36-2    system;
 36-3                (3)  clearer guidelines to ensure a more effective use
 36-4    of penalties;
 36-5                (4)  a risk-based approach to scheduling inspections;
 36-6    and
 36-7                (5)  any other analyses that it determines are
 36-8    appropriate.
 36-9          (d)  Not later than September 1, 2002, the funeral commission
36-10    shall report to the Sunset Advisory Commission on the status of its
36-11    progress under this Act.
36-12          (e)  If the sunset commission determines that the funeral
36-13    commission has not made substantial progress, the sunset commission
36-14    shall consider whether to recommend that the legislature abolish
36-15    the funeral commission and transfer its functions to the Texas
36-16    Department of Licensing and Regulation.
36-17          SECTION 3.03.  Not later than March 1, 2002, the Texas
36-18    Funeral Service Commission shall adopt the rules required by
36-19    Section 651.202(b), Occupations Code, as amended by this Act.  In
36-20    adopting these rules, the commission shall examine, and use as a
36-21    guide, the rules adopted by the Board of Nurse Examiners relating
36-22    to complaint investigation, disposition, and related proceedings.
36-23          SECTION 3.04.  Not later than March 1, 2002, the Texas
36-24    Funeral Service Commission shall adopt the rules required by
36-25    Section 651.5515, Occupations Code, as added by this Act.
36-26          SECTION 3.05. (a)  The Texas Funeral Service Commission shall
36-27    study the risk-based assessment methods used by the Texas
 37-1    Department of Health and the Texas Department of Licensing and
 37-2    Regulation in conducting inspections required by law.
 37-3          (b)  Based on the study conducted under Subsection (a)  of
 37-4    this section, not later than March 1, 2002, the Texas Funeral
 37-5    Service Commission shall adopt the rules required by Section
 37-6    651.157(d)(2), Occupations Code, as added by this Act.
 37-7          SECTION 3.06.   (a)  Not later than November 1, 2001, the
 37-8    governor shall appoint the additional member of the Texas Funeral
 37-9    Service Commission required under Section 651.051(a)(1), as amended
37-10    by this Act.
37-11          (b)  The changes in law made by this Act in the
37-12    qualifications of, and the prohibitions applying to, the members of
37-13    the Texas Funeral Service Commission do not affect the entitlement
37-14    of a person serving as a member of the commission immediately
37-15    before September 1, 2001, to continue to carry out the functions of
37-16    the person's office for the remainder of the person's term.  The
37-17    changes in law apply only to a person appointed on or after
37-18    September 1, 2001. This Act does not prohibit a person who is a
37-19    member of the Texas Funeral Service Commission immediately before
37-20    September 1, 2001, from being reappointed as a commission member if
37-21    the person has the qualifications required for the position under
37-22    Subchapter B, Chapter 651, Occupations Code, as amended by this
37-23    Act.
37-24          SECTION 3.07. (a)  In accordance with Section 311.031(c),
37-25    Government Code, which gives effect to a substantive amendment
37-26    enacted by the same legislature that codifies the amended statute,
37-27    the text of the following gives effect to changes made by Chapter
 38-1    1587, Acts of the 76th Legislature, Regular Session, 1999:
 38-2                (1)  Section 651.002, Occupations Code, as set out in
 38-3    Section 1.04 of this Act;
 38-4                (2)  Section 651.051(a), Occupations Code, as set out
 38-5    in Section 1.05 of this Act; and
 38-6                (3)  Section 651.053, Occupations Code, as set out in
 38-7    Section 1.08 of this Act.
 38-8          (b)  To the extent of any conflict, this Act prevails over
 38-9    another Act of the 77th Legislature, Regular Session, 2001,
38-10    relating to nonsubstantive additions to and corrections in enacted
38-11    codes.
38-12          SECTION 3.08.  This Act takes effect September 1, 2001.