1-1     By:  Chisum, et al. (Senate Sponsor - Zaffirini)      H.B. No. 3067
 1-2           (In the Senate - Received from the House May 1, 2001;
 1-3     May 2, 2001, read first time and referred to Committee on State
 1-4     Affairs; May 10, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 8, Nays 0; May 10, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 3067                 By:  Shapiro
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the continuation and functions of the Texas Funeral
1-11     Service Commission.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           ARTICLE 1.  TEXAS FUNERAL SERVICE COMMISSION AMENDMENTS
1-14           SECTION 1.01.  Section 101.002, Occupations Code, is amended
1-15     to read as follows:
1-16           Sec. 101.002.  COMPOSITION OF COUNCIL.  The council consists
1-17     of 15 [14] members, with one member appointed by each of the
1-18     following:
1-19                 (1)  the Texas Board of Chiropractic Examiners;
1-20                 (2)  the State Board of Dental Examiners;
1-21                 (3)  the Texas Optometry Board;
1-22                 (4)  the Texas State Board of Pharmacy;
1-23                 (5)  the Texas State Board of Podiatric Medical
1-24     Examiners;
1-25                 (6)  the State Board of Veterinary Medical Examiners;
1-26                 (7)  the Texas State Board of Medical Examiners;
1-27                 (8)  the Board of Nurse Examiners;
1-28                 (9)  the Texas State Board of Examiners of
1-29     Psychologists;
1-30                 (10)  the Board of Vocational Nurse Examiners;
1-31                 (11)  the Texas Funeral Service Commission;
1-32                 (12)  the entity that regulates the practice of
1-33     physical therapy;
1-34                 (13) [(12)]  the entity that regulates the practice of
1-35     occupational therapy;
1-36                 (14) [(13)]  the health licensing division of the Texas
1-37     Department of Health; and
1-38                 (15) [(14)]  the governor's office.
1-39           SECTION 1.02.  Subchapter B, Chapter 101, Occupations Code,
1-40     is amended by adding Section 101.0515 to read as follows:
1-41           Sec. 101.0515.  APPLICABILITY OF SUBCHAPTER.  This subchapter
1-42     does not apply to the Texas Funeral Service Commission.
1-43           SECTION 1.03.  Section 651.001, Occupations Code, is amended
1-44     to read as follows:
1-45           Sec. 651.001.  DEFINITIONS.  In this chapter:
1-46                 (1)  "Cemetery" means a place that is used or intended
1-47     to be used for interment, and includes a graveyard, burial park, or
1-48     mausoleum.
1-49                 (2)  "Commission" means the Texas Funeral Service
1-50     Commission.
1-51                 (3)  "Crematory" means a structure containing a furnace
1-52     used or intended to be used for the cremation of human remains.
1-53                 (4) [(2)]  "Embalmer" means a person licensed under
1-54     this chapter who for compensation, wholly or partly, disinfects or
1-55     preserves a dead human body by:
1-56                       (A)  using chemical substances, fluids, or gases,
1-57     including by introducing those substances, fluids, or gases into
1-58     the body by:
1-59                             (i)  vascular or hypodermic injection; or
1-60                             (ii)  direct application into the organs or
1-61     cavities; or
1-62                       (B)  another method intended to disinfect or
1-63     preserve a dead human body or to restore body tissues and
1-64     structures.
 2-1                 (5) [(3)]  "First call" means the beginning of the
 2-2     relationship and duty of a funeral director to take charge of a
 2-3     dead human body and have the body prepared for burial or
 2-4     disposition by embalming, cremation, or another method.  The term
 2-5     does not include an ambulance call if the person dispatching the
 2-6     ambulance does not know whether a dead human body is to be picked
 2-7     up.
 2-8                 (6) [(4)]  "Funeral director" means a person licensed
 2-9     under this chapter who engages in for compensation, or represents
2-10     to the public as being engaged in for compensation, the
2-11     preparation, other than by embalming, of a dead human body for
2-12     burial or other disposition.
2-13                 (7) [(5)]  "Funeral directing" means acts associated
2-14     with or arranging for the disposition of a dead human body,
2-15     performed by a person for compensation, from the time of first call
2-16     until:
2-17                       (A)  inurnment, interment, or entombment services
2-18     are complete; or
2-19                       (B)  the body is permanently transported out of
2-20     this state [released:]
2-21                             [(i)  for transport to a crematorium; or]
2-22                             [(ii)  to a public carrier].
2-23                 (8) [(6)]  "Funeral establishment" means:
2-24                       (A)  a place of business used in the care and
2-25     preparation for burial or transportation of a dead human body; or
2-26                       (B)  any other place in which a person engages
2-27     in, or represents the person to be engaged in, the business of
2-28     embalming or funeral directing.
2-29                 (9) [(7)]  "Funeral merchandise" means merchandise sold
2-30     primarily for use in:
2-31                       (A)  a funeral ceremony;
2-32                       (B)  embalming; or
2-33                       (C)  the care and preparation of a dead human
2-34     body for burial, cremation, or other disposition.
2-35                 (10) [(8)]  "Funeral service" means a service performed
2-36     incident to a funeral ceremony or for the care and preparation of a
2-37     dead human body for burial, cremation, or other disposition.  The
2-38     term includes embalming.
2-39                 (11) [(9)]  "Mortuary science" means the scientific,
2-40     professional, and practical aspects, with consideration given to
2-41     accepted practices, of the care, preparation for burial, or
2-42     transportation of a dead human body.  The term includes the
2-43     preservation and sanitation of a dead human body and restorative
2-44     art.
2-45                 (12) [(10)]  "Outer enclosure" means an enclosure or
2-46     container placed in a grave above or around the casket.  The term
2-47     includes a burial vault, grave box, or grave liner.
2-48                 (13) [(11)]  "Prospective customer" means a consumer
2-49     who enters a funeral establishment and inquires about a funeral
2-50     service, cremation, or merchandise.
2-51                 (14) [(12)]  "Provisional license holder" means a
2-52     person who:
2-53                       (A)  is engaged in learning the practice of
2-54     funeral directing or embalming under the instruction, direction,
2-55     and personal supervision of a funeral director or embalmer; and
2-56                       (B)  holds a provisional license issued by the
2-57     commission under this chapter.
2-58                 (15) [(13)]  "Purchase agreement" means a written
2-59     statement that itemizes the cost of funeral services or merchandise
2-60     selected by a customer from the retail price list.
2-61                 (16) [(14)]  "Solicitation" means a direct or indirect
2-62     contact by a funeral director, embalmer, or employee, agent, or
2-63     representative of a licensed funeral establishment or any other
2-64     entity with a person near death or the family of, next of kin of,
2-65     or person responsible for making funeral arrangements for a person
2-66     who is deceased or near death, if the contact is not initiated by
2-67     the person near death or the family, next of kin, or person
2-68     responsible for making funeral arrangements and the contact is to
2-69     secure the right to provide funeral services or merchandise or
 3-1     occurs in a situation that might influence the contacted person to
 3-2     choose a particular funeral establishment.  The term does not
 3-3     include:
 3-4                       (A)  except in the case of contact with a person
 3-5     near death or the person responsible for making funeral
 3-6     arrangements for a person near death, an attempt to secure funeral
 3-7     business under a permit issued under Chapter 154, Finance Code; or
 3-8                       (B)  any method of advertising by publication or
 3-9     broadcasting.
3-10                 (17) [(15)]  "Unit pricing" means a method of pricing
3-11     that offers a discount to a purchaser who buys various funeral
3-12     services and merchandise as a package.
3-13           SECTION 1.04.  Section 651.002, Occupations Code, is amended
3-14     to read as follows:
3-15           Sec. 651.002.  APPLICATION OF SUNSET ACT.  The Texas Funeral
3-16     Service Commission is subject to Chapter 325, Government Code
3-17     (Texas Sunset Act).  Unless continued in existence as provided by
3-18     that chapter, the commission is abolished and this chapter expires
3-19     September 1, 2003 [2001].
3-20           SECTION 1.05.  Subsection (a), Section 651.051, Occupations
3-21     Code, is amended to read as follows:
3-22           (a)  The Texas Funeral Service Commission consists of seven
3-23     [six] members appointed by the governor, with the advice and
3-24     consent of the senate as follows:
3-25                 (1)  two members who are licensed as both an embalmer
3-26     and a funeral director[] [in this state] for at least the five years
3-27     preceding appointment to the commission; [and]
3-28                 (2)  one member who is a registered cemetery owner or
3-29     operator; and
3-30                 (3)  four members who represent the public and who:
3-31                       (A)  are not regulated under this chapter; and
3-32                       (B)  have consistently shown an interest in
3-33     supporting consumer protection.
3-34           SECTION 1.06.  Subchapter B, Chapter 651, Occupations Code,
3-35     is amended by adding Sections 651.0511 and 651.0512 to read as
3-36     follows:
3-37           Sec. 651.0511.  TRAINING.  (a)  A person who is appointed to
3-38     and qualifies for office as a member of the commission may not
3-39     vote, deliberate, or be counted as a member in attendance at a
3-40     meeting of the commission until the person completes a training
3-41     program that complies with this section.
3-42           (b)  The training program must provide the person with
3-43     information regarding:
3-44                 (1)  this chapter;
3-45                 (2)  the programs operated by the commission;
3-46                 (3)  the role and functions of the commission;
3-47                 (4)  the rules of the commission, with an emphasis on
3-48     the rules that relate to disciplinary and investigatory authority;
3-49                 (5)  the current budget for the commission;
3-50                 (6)  the results of the most recent formal audit of the
3-51     commission;
3-52                 (7)  the requirements of:
3-53                       (A)  the open meetings law, Chapter 551,
3-54     Government Code;
3-55                       (B)  the public information law, Chapter 552,
3-56     Government Code;
3-57                       (C)  the administrative procedure law, Chapter
3-58     2001, Government Code; and
3-59                       (D)  other laws relating to public officials,
3-60     including conflict-of-interest laws; and
3-61                 (8)  any applicable ethics policies adopted by the
3-62     commission or the Texas Ethics Commission.
3-63           (c)  A person appointed to the commission is entitled to
3-64     reimbursement, as provided by the General Appropriations Act, for
3-65     the travel expenses incurred in attending the training program
3-66     regardless of whether the attendance at the program occurs before
3-67     or after the person qualifies for office.
3-68           Sec. 651.0512.  TRAINING FOR EMPLOYEES ON STATE INCENTIVE
3-69     PROGRAM.  The executive director or the executive director's
 4-1     designee shall provide to commission employees information and
 4-2     training on the benefits and methods of participation in the state
 4-3     employee incentive program under Subchapter B, Chapter 2108,
 4-4     Government Code.
 4-5           SECTION 1.07.  Section 651.052, Occupations Code, is amended
 4-6     to read as follows:
 4-7           Sec. 651.052.  ELIGIBILITY OF PUBLIC MEMBERS.  (a)  A person
 4-8     may not be [is not eligible for appointment as] a public member of
 4-9     the commission if the person or the person's spouse:
4-10                 (1)  is registered, certified, or licensed by a [an
4-11     occupational] regulatory agency in the funeral service industry
4-12     [field of funeral services];
4-13                 (2)  is employed by or participates in the management
4-14     of a business entity or other organization regulated by or
4-15     receiving money from the commission [or receiving funds from the
4-16     commission];
4-17                 (3)  owns or controls, directly or indirectly, more
4-18     than a 10 percent [any] interest in a business entity or other
4-19     organization regulated by or receiving money from the commission
4-20     [or receiving funds from the commission]; or
4-21                 (4)  uses or receives a substantial amount of tangible
4-22     goods, services, or money [funds] from the commission, other than
4-23     compensation or reimbursement authorized by law for commission
4-24     membership, attendance, or expenses.
4-25           (b)  A public member of the commission may not, except as a
4-26     consumer:
4-27                 (1)  have a financial interest in a funeral
4-28     establishment; or
4-29                 (2)  be related to a person within the second degree by
4-30     affinity or third degree by consanguinity, as determined under
4-31     Subchapter B, Chapter 573, Government Code, who has a financial
4-32     interest in a funeral establishment.
4-33           SECTION 1.08.  Section 651.053, Occupations Code, is amended
4-34     to read as follows:
4-35           Sec. 651.053.  MEMBERSHIP AND EMPLOYEE RESTRICTIONS.  (a)  In
4-36     this section, "Texas trade association" means a [nonprofit,]
4-37     cooperative[,] and voluntarily joined association of business or
4-38     professional competitors in this state designed to assist its
4-39     members and its industry or profession in dealing with mutual
4-40     business or professional problems and in promoting their common
4-41     interest.
4-42           (b)  A person may not be a member of the commission and may
4-43     not be a commission employee employed in a "bona fide executive,
4-44     administrative, or professional capacity," as that phrase is used
4-45     for purposes of establishing an exemption to the overtime
4-46     provisions of the federal Fair Labor Standards Act of 1938 (29
4-47     U.S.C. Section 201 et seq.), and its subsequent amendments, if:
4-48                 (1)  the person is an officer, employee, or paid
4-49     consultant of a Texas trade association in the funeral service
4-50     industry; or
4-51                 (2)  the person's spouse is an officer, manager, or
4-52     paid consultant of a Texas trade association in the funeral service
4-53     industry. [A commissioner or an employee of the commission who
4-54     carries out the functions of the commission may not be related
4-55     within the second degree by affinity or within the third degree by
4-56     consanguinity, as determined under Subchapter B, Chapter 573,
4-57     Government Code, to a person who is an officer, employee, or paid
4-58     consultant of a trade association in the funeral industry.]
4-59           (c)  [An officer, employee, or paid consultant of a Texas
4-60     trade association in the field of funeral services may not be a
4-61     commission member and may not be an employee who is exempt from the
4-62     state's position classification plan or is compensated at or above
4-63     the amount prescribed by the General Appropriations Act for step 1,
4-64     salary group A17, of the position classification salary schedule.]
4-65           [(d)  A person who is the spouse of an officer, manager, or
4-66     paid consultant of a Texas trade association in the field of
4-67     funeral services may not be a member of the commission and may not
4-68     be an employee of the commission who is exempt from the state's
4-69     position classification plan or is compensated at or above the
 5-1     amount prescribed by the General Appropriations Act for step 1,
 5-2     salary group A17, of the position classification salary schedule.]
 5-3           [(e)  A person may not be appointed to the commission if:]
 5-4                 [(1)  the person is an officer or employee of a
 5-5     corporation or other business entity directly or indirectly
 5-6     controlling or operating more than three funeral establishments;
 5-7     and]
 5-8                 [(2)  a member of the commission is an officer or
 5-9     employee of the same corporation or entity.]
5-10           [(f)  A violation of Subsection (e) that occurs after a
5-11     member is appointed constitutes a vacancy of each of those members'
5-12     positions, as of the date of the completion of the merger or other
5-13     agreement.  The vacancy shall be filled by the governor as soon as
5-14     practicable.  A member appointed to fill a vacancy under this
5-15     subsection serves for the remainder of the vacated term.]
5-16           [(g)]  A person may not be [serve as] a member of the
5-17     commission or act as the general counsel if the person is required
5-18     to register as a lobbyist under Chapter 305, Government Code,
5-19     because of the person's activities for compensation on behalf of a
5-20     profession related to the operation of the commission.
5-21           SECTION 1.09.  Section 651.104, Occupations Code, is amended
5-22     to read as follows:
5-23           Sec. 651.104.  DIVISION OF RESPONSIBILITIES.  The commission
5-24     shall develop and implement policies that clearly separate [define]
5-25     the policy-making responsibilities of the commission and the
5-26     management responsibilities of the executive director and staff of
5-27     the commission.
5-28           SECTION 1.10.  Section 651.107, Occupations Code, is amended
5-29     to read as follows:
5-30           Sec. 651.107.  EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
5-31     (a)  The executive director or the executive director's designee
5-32     shall prepare and maintain a written policy statement that
5-33     implements a program [to ensure implementation] of [an] equal
5-34     employment opportunity to ensure that [program under which] all
5-35     personnel decisions [transactions] are made without regard to race,
5-36     color, disability, sex, religion, age, or national origin.
5-37           (b)  The policy statement must include:
5-38                 (1)  personnel policies, including policies relating to
5-39     recruitment, evaluation, selection, [appointment,] training, and
5-40     promotion of personnel, that show the intent of the commission to
5-41     avoid the unlawful employment practices described by Chapter 21,
5-42     Labor Code; and
5-43                 (2)  an [a comprehensive]  analysis of the extent to
5-44     which the composition of the commission's personnel is in
5-45     accordance with [commission workforce that meets] federal and state
5-46     law and a description of [guidelines;]
5-47                 [(3)  procedures by which a determination can be made
5-48     of significant underuse in the commission workforce of all persons
5-49     for whom federal or state guidelines encourage a more equitable
5-50     balance; and]
5-51                 [(4)]  reasonable methods to achieve compliance with
5-52     federal and state law [appropriately address those areas of
5-53     significant underuse].
5-54           (c)  The [(b)  A]  policy statement [prepared under
5-55     Subsection (a)] must:
5-56                 (1)  [cover an annual period,]  be updated at least
5-57     annually;
5-58                 (2)  be reviewed by the state Commission on Human
5-59     Rights for compliance with Subsection (b)(1);[,] and
5-60                 (3)  be filed with the governor's office [governor].
5-61           [(c)  The governor shall deliver a biennial report to the
5-62     legislature based on the information received under Subsection (b).
5-63     The report may be made separately or as a part of other biennial
5-64     reports made to the legislature.]
5-65           SECTION 1.11.  Section 651.157, Occupations Code, is amended
5-66     to read as follows:
5-67           Sec. 651.157.  INSPECTION OF FUNERAL ESTABLISHMENT.
5-68     (a)  Except as provided by Subsection (b), a [Each] licensed
5-69     funeral establishment shall be inspected at least once every two
 6-1     years [annually] by an agent of the commission or by an agent of
 6-2     the state or a political subdivision authorized by the commission
 6-3     to make inspections on its behalf.
 6-4           (b)  If the commission finds a violation of this chapter or
 6-5     of Chapter 193 or 361, Health and Safety Code, the commission shall
 6-6     inspect the funeral establishment annually until the commission
 6-7     determines that the establishment is free of violations.
 6-8           (c)  A report of each [the annual] inspection made under this
 6-9     section shall be filed with the commission.
6-10           (d)  The commission by rule shall establish:
6-11                 (1)  procedures for the inspection of a funeral
6-12     establishment required by this section; and
6-13                 (2)  criteria, including consideration of the
6-14     establishment's inspection and complaint history, regarding when
6-15     the commission should inspect an establishment based on the risk of
6-16     a violation at an establishment.
6-17           (e) [(b)]  A premises on which funeral directing or embalming
6-18     is practiced shall be open at all times to inspection for any
6-19     violation of this chapter or of Chapter 193 or 361, Health and
6-20     Safety Code, by:
6-21                 (1)  an agent of the commission;
6-22                 (2)  an authorized agent of the state; or
6-23                 (3)  an authorized agent of the county or municipality
6-24     in which the premises is located.
6-25           (f) [(c)]  Before a commission agent inspects a funeral
6-26     establishment, the agent shall review the inspection reports filed
6-27     with the commission on the establishment.  During the inspection,
6-28     the agent shall determine whether previously identified problems
6-29     have been corrected and whether a pattern of violations exists.
6-30     The commission shall consider the information from the inspection
6-31     reports in determining whether a penalty should be imposed against
6-32     an establishment.
6-33           SECTION 1.12.  Subchapter D, Chapter 651, Occupations Code,
6-34     is amended by adding Section 651.1575 to read as follows:
6-35           Sec. 651.1575.  INSPECTION OF CEMETERY OR CREMATORY.
6-36     (a)  The commission may inspect a cemetery or crematory only if the
6-37     commission receives a complaint about that facility under Section
6-38     651.202.
6-39           (b)  A report of an inspection made under this section shall
6-40     be filed with the commission.
6-41           (c)  The commission by rule shall establish procedures for
6-42     the inspection of a cemetery or crematory required by this section.
6-43           SECTION 1.13.  Section 651.202, Occupations Code, is amended
6-44     to read as follows:
6-45           Sec. 651.202.  COMPLAINTS.  (a)  The commission by rule shall
6-46     establish methods by which consumers and service recipients are
6-47     notified of the name, mailing address, and telephone number of the
6-48     commission for the purpose of directing complaints to the
6-49     commission.  The commission may provide for that notice:
6-50                 (1)  on each license or registration form, application,
6-51     or written contract for services of a person regulated under this
6-52     chapter;
6-53                 (2)  on a sign prominently displayed in the place of
6-54     business of each person regulated under this chapter; or
6-55                 (3)  in a bill for service provided by a person
6-56     regulated under this chapter.
6-57           (b)  The commission shall adopt rules concerning a complaint
6-58     filed under this section.  The rules adopted under this subsection
6-59     must:
6-60                 (1)  establish procedures regarding the receipt,
6-61     investigation, and disposition of complaints;
6-62                 (2)  allow for an informal hearing process;
6-63                 (3)  establish a formal hearing process;
6-64                 (4)  ensure that the person who filed the complaint has
6-65     an opportunity to explain the allegations made in the complaint;
6-66                 (5)  ensure that the license holder or registrant who
6-67     is the subject of the complaint has an opportunity to be heard
6-68     regarding the complaint; and
6-69                 (6)  establish procedures by which a commission
 7-1     employee may dismiss a complaint, subject to approval by the
 7-2     executive director or the executive director's designee, if the
 7-3     investigation does not reveal a violation.
 7-4           (c)  The commission shall investigate each complaint received
 7-5     by the commission relating to a funeral director, embalmer,
 7-6     provisional license holder, [or] funeral establishment, or other
 7-7     person licensed or registered under this chapter.
 7-8           (d)  The commission shall provide to the person filing the
 7-9     complaint and to each person who is a subject of the complaint a
7-10     copy of the commission's policies and procedures relating to
7-11     complaint investigation and resolution, including [(c)  If a person
7-12     files a complaint with the commission relating to a funeral
7-13     director, embalmer, provisional license holder, or licensed funeral
7-14     establishment, the commission shall furnish to the person] an
7-15     explanation of the remedies that are available to the person under
7-16     this chapter and information about other appropriate state or local
7-17     agencies or officials with which the person may file a complaint.
7-18           (e)  The [(d)  If a written complaint is filed with the
7-19     commission that the commission has authority to resolve, the]
7-20     commission, at least quarterly until final disposition of the
7-21     complaint [and on final disposition of the complaint], shall notify
7-22     the person filing [parties to] the complaint and each person who is
7-23     a subject of the complaint of the status of the investigation
7-24     [complaint] unless the notice would jeopardize an undercover
7-25     investigation.
7-26           (f) [(e)]  The person who filed the complaint [complainant]
7-27     is entitled to attend any proceeding resulting from the complaint.
7-28           SECTION 1.14.  Subsection (a), Section 651.203, Occupations
7-29     Code, is amended to read as follows:
7-30           (a)  The commission shall maintain a [keep an information]
7-31     file on each written [about each] complaint filed with the
7-32     commission [that the commission has authority to resolve].  The
7-33     file must [commission shall] include [in each information file]:
7-34                 (1)  the subject matter [a description] of the
7-35     complaint;
7-36                 (2)  the date the complaint is received by the
7-37     commission [filed];
7-38                 (3)  the name of the person who filed the complaint
7-39     [complainant];
7-40                 (4)  the name of each person contacted in relation to
7-41     the complaint;
7-42                 (5)  a summary of the results of the review or
7-43     investigation of the complaint; and
7-44                 (6)  an explanation of the reason the file was closed,
7-45     if the commission closed the file without taking action other than
7-46     to investigate the complaint [a description of any information
7-47     obtained by the commission after investigating the complaint;]
7-48                 [(5)  a description of and the date of any formal
7-49     action taken by the commission relating to the complaint;]
7-50                 [(6)  a description of the current status of the
7-51     complaint; and]
7-52                 [(7)  any other information the commission considers
7-53     appropriate].
7-54           SECTION 1.15.  Section 651.254, Occupations Code, is amended
7-55     to read as follows:
7-56           Sec. 651.254.  LICENSE EXAMINATIONS; RESULTS.  (a)  The
7-57     examinations for a funeral director's license and an embalmer's
7-58     license shall be held at least annually.  The examinations shall be
7-59     given at the time and place designated by the commission.  The
7-60     commission shall give notice of the examinations.
7-61           (b)  Not later than the 30th day after the date a person
7-62     takes a [on which a funeral director's or embalmer's] licensing
7-63     examination [is administered] under this chapter, the commission
7-64     shall notify the person [each examinee] of the results of the
7-65     examination.
7-66           (c)  If the [an] examination is graded or reviewed by a
7-67     [national] testing service:
7-68                 (1)  [,] the commission shall notify the person [each
7-69     examinee] of the results of the examination not later than the 14th
 8-1     day after the date [on which] the commission receives the results
 8-2     from the testing service; and
 8-3                 (2)  if[.]
 8-4           [(c)  If the] notice of the examination results [graded or
 8-5     reviewed by a national testing service] will be delayed for longer
 8-6     than 90 days after the examination date, the commission shall
 8-7     notify the person [examinee] of the reason for the delay before the
 8-8     90th day.
 8-9           (d)  The commission may require a testing service to notify a
8-10     person of the results of the person's examination.
8-11           (e)  If requested in writing by a person who fails a
8-12     licensing examination administered under this chapter, the
8-13     commission shall furnish the person with an analysis of the
8-14     person's performance on the examination.
8-15           [(e)  Notice of the time and place of an examination must be
8-16     filed with the Texas Register at least seven days before the
8-17     examination.]
8-18           SECTION 1.16.  Subchapter F, Chapter 651, Occupations Code,
8-19     is amended by adding Section 651.2595 to read as follows:
8-20           Sec. 651.2595.  PROVISIONAL LICENSE.  (a)  The commission may
8-21     issue a provisional license to an applicant currently licensed in
8-22     another jurisdiction who seeks a license in this state and who:
8-23                 (1)  has been licensed in good standing as a funeral
8-24     director or embalmer for at least two years in another
8-25     jurisdiction, including a foreign country, that has licensing
8-26     requirements substantially equivalent to the requirements of this
8-27     chapter;
8-28                 (2)  has passed a national or other examination
8-29     recognized by the commission relating to the practice of funeral
8-30     director or embalmer; and
8-31                 (3)  is sponsored by a person licensed by the
8-32     commission under this chapter with whom the provisional license
8-33     holder will practice during the time the person holds a provisional
8-34     license.
8-35           (b)  The commission may waive the requirement of Subsection
8-36     (a)(3) for an applicant if the commission determines that
8-37     compliance with that subsection would be a hardship to the
8-38     applicant.
8-39           (c)  A provisional license is valid until the date the
8-40     commission approves or denies the provisional license holder's
8-41     application for a license.  The commission shall issue a license
8-42     under this chapter to the provisional license holder if:
8-43                 (1)  the provisional license holder is eligible to be
8-44     licensed under Section 651.259; or
8-45                 (2)  the provisional license holder:
8-46                       (A)  passes the part of the examination under
8-47     Subsection (a)  that relates to the applicant's knowledge and
8-48     understanding of the laws and rules relating to the practice of
8-49     funeral directing or embalming in this state;
8-50                       (B)  meets the academic and experience
8-51     requirements for a license under this chapter; and
8-52                       (C)  satisfies any other licensing requirements
8-53     under this chapter.
8-54           (d)  The commission shall approve or deny a provisional
8-55     license holder's application for a license not later than the 180th
8-56     day after the date the provisional license is issued.  The
8-57     commission may extend the 180-day period if the results of an
8-58     examination have not been received by the commission before the end
8-59     of that period.
8-60           (e)  The commission may establish a fee for provisional
8-61     licenses in an amount reasonable and necessary to cover the cost of
8-62     issuing the license.
8-63           SECTION  1.17.  Section 651.262, Occupations Code, is
8-64     transferred to Subchapter D, Chapter 651, Occupations Code,
8-65     redesignated as Section 651.164, Occupations Code, and amended to
8-66     read as follows:
8-67           Sec. 651.164. [651.262.]  LICENSE OR REGISTRATION EXPIRATION.
8-68     The commission by rule may adopt a system under which [funeral
8-69     director's and embalmer's] licenses or registrations expire on
 9-1     various dates during the year.  [The commission shall adjust dates
 9-2     for sending notice regarding payment of fees and license suspension
 9-3     for nonpayment according to the system, if any, adopted under this
 9-4     subsection.]  For the [a] year in which the license or registration
 9-5     expiration date is changed, the commission shall prorate license or
 9-6     registration fees [are prorated] on a monthly basis so that each
 9-7     license holder or registrant pays only that portion of the license
 9-8     or registration fee that is allocable to the number of months
 9-9     during which the license or registration is valid.  On renewal of
9-10     the license or registration on the new expiration date, the total
9-11     license or registration renewal fee is payable.
9-12           SECTION 1.18.  Section 651.263, Occupations Code, is
9-13     transferred to Subchapter D, Chapter 651, Occupations Code,
9-14     redesignated as Section 651.165, Occupations Code, and amended to
9-15     read as follows:
9-16           Sec. 651.165 [651.263].  RENEWAL OR REINSTATEMENT OF LICENSE.
9-17     (a)  A person who is otherwise eligible to renew a license may
9-18     renew an unexpired license by paying the required renewal fee to
9-19     the commission before the expiration date of the license.  A person
9-20     whose license has expired may not engage in activities that require
9-21     a license until the license has been renewed.
9-22           (b)  A person whose license has been expired for 90 days or
9-23     less may renew the license by paying to the commission a [the
9-24     required] renewal fee that is [and a penalty fee] equal to 1-1/2
9-25     times the normally required [one-half the amount of the] renewal
9-26     fee [for the license].
9-27           (c)  A person whose license [If a person's license] has been
9-28     expired for more than 90 days but less than one year [five years,
9-29     the person] may renew the license by paying to the commission a
9-30     [all unpaid] renewal [fees and a penalty] fee that is equal to two
9-31     times the normally required [one-half of the total amount of the
9-32     unpaid] renewal fee [fees].
9-33           (d)  A person whose [(c)  If a person's] license has been
9-34     expired for one year or more [five years or longer, the person] may
9-35     not renew the license.  The person may obtain a new license by
9-36     [submitting to reexamination and] complying with the requirements
9-37     and procedures, including the examination requirements, for
9-38     obtaining an original license.
9-39           (e)  A person who was licensed in this state, moved to
9-40     another state, and is currently licensed and has been in practice
9-41     in the other state for the two years preceding the date of
9-42     application may obtain a new license without reexamination.  The
9-43     person must pay to the commission a fee that is equal to two times
9-44     the normally required renewal fee for the license.
9-45           (f) [(d)]  At least 30 days before the expiration of a
9-46     person's license, the commission shall send written notice of the
9-47     impending license expiration to the person at the person's last
9-48     known address according to the records of the commission.
9-49           SECTION 1.19.  Section 651.266, Occupations Code, is amended
9-50     to read as follows:
9-51           Sec. 651.266.  CONTINUING EDUCATION.  The commission by rule
9-52     may require continuing education as a condition for license renewal
9-53     except for a license holder described by Section 651.155 or an
9-54     applicant for renewal described by [Section 651.155 or] Section
9-55     651.265.  If the commission requires continuing education, the
9-56     commission shall require completion of a minimum number of hours of
9-57     ethics training as a required part of that education.
9-58           SECTION 1.20.  The heading to Section 651.405, Occupations
9-59     Code, is amended to read as follows:
9-60           Sec. 651.405.  RETAIL PRICE LIST; FUNERAL ESTABLISHMENT.
9-61           SECTION 1.21.  Subchapter I, Chapter 651, Occupations Code,
9-62     is amended by adding Section 651.4055 to read as follows:
9-63           Sec. 651.4055.  RETAIL PRICE LIST; CEMETERY OR CREMATORY.
9-64     (a)  In this section, "retail price list" means a printed or
9-65     typewritten list of the retail price of items or services provided
9-66     by a cemetery or crematory.
9-67           (b)  A retail price list must contain:
9-68                 (1)  the name, address, and telephone number of the
9-69     cemetery or crematory;
 10-1                (2)  the effective date for the stated prices;
 10-2                (3)  notice required by Subsection (c); and
 10-3                (4)  any other items that the commission may by rule
 10-4    require.
 10-5          (c)  The retail price list must contain the following printed
 10-6    notice:  "The goods and services shown below are those we can
 10-7    provide to our customers.  You may choose only the items you
 10-8    desire.  If legal or other requirements mean you must buy any items
 10-9    you did not specifically ask for, we will explain the reason in
10-10    writing on the statement we provide describing the goods and
10-11    services you selected."
10-12          SECTION 1.22.  The heading to Section 651.406, Occupations
10-13    Code, is amended to read as follows:
10-14          Sec. 651.406.  PURCHASE AGREEMENT; FUNERAL ESTABLISHMENT.
10-15          SECTION 1.23.  Subchapter I, Chapter 651, Occupations Code,
10-16    is amended by adding Section 651.4065 to read as follows:
10-17          Sec. 651.4065.  PURCHASE AGREEMENT; CEMETERY OR CREMATORY.
10-18    (a)  A purchase agreement must state:
10-19                (1)  the name, address, and telephone number of the
10-20    cemetery or crematory;
10-21                (2)  the amount paid or owed to another person by the
10-22    cemetery or crematory on behalf of the customer and each fee
10-23    charged the customer for the cost of advancing funds or becoming
10-24    indebted to another person on behalf of the customer;
10-25                (3)  the printed notice required by Subsection (b);
10-26                (4)  the name, mailing address, and telephone number of
10-27    the commission;
10-28                (5)  a statement that complaints may be directed to the
10-29    commission; and
10-30                (6)  any other items that the commission may by rule
10-31    require.
10-32          (b)  The purchase agreement must contain the following
10-33    printed notice:  "Charges are only for those items that you
10-34    selected or that are required.  If we are required by law to use
10-35    any items, we will explain the reasons in writing below."
10-36          (c)  The registrant for the cemetery or crematory shall sign
10-37    the purchase agreement.
10-38          (d)  If the customer selects a package arrangement based on
10-39    unit pricing, the itemization requirement is satisfied by providing
10-40    a purchase agreement that itemizes the discount provided by the
10-41    package arrangement.
10-42          SECTION 1.24.  Subchapter I, Chapter 651, Occupations Code,
10-43    is amended by adding Section 651.408 to read as follows:
10-44          Sec. 651.408.  USE OF CEMETERY AND CREMATORY SERVICES.  The
10-45    fact that a funeral director contracts for cemetery or crematory
10-46    services, including as part of a package arrangement, does not
10-47    limit the director's liability to the customer for those services.
10-48          SECTION 1.25.  Section 651.451, Occupations Code, is amended
10-49    to read as follows:
10-50          Sec. 651.451.  CERTAIN FRAUDULENT AND DECEPTIVE ACTS.  A
10-51    person violates this chapter if the person:
10-52                (1)  presents to the commission a license, certificate,
10-53    registration, or diploma that was illegally or fraudulently
10-54    obtained;
10-55                (2)  uses fraud or deception in passing the
10-56    examination, including impersonating or acting as a proxy for
10-57    another person in the examination;
10-58                (3)  purchases, sells, barters, or uses, or offers to
10-59    purchase, sell, barter, or use, a license, registration,
10-60    certificate, or transcript of a license, registration, or
10-61    certificate in or incident to an application to the commission for
10-62    a license or registration issued under this chapter [to practice as
10-63    a funeral director or embalmer];
10-64                (4)  alters, with fraudulent intent, a [funeral
10-65    director's or embalmer's] license, registration, or certificate
10-66    issued under this chapter or a transcript of a license,
10-67    registration, or certificate;
10-68                (5)  uses a [funeral director's or embalmer's] license,
10-69    registration, certificate, or diploma issued under this chapter or
 11-1    a transcript of a [funeral director's or embalmer's] license,
 11-2    registration, certificate, or diploma that has been fraudulently
 11-3    purchased, issued, counterfeited, or materially altered;
 11-4                (6)  impersonates a funeral director, [or] embalmer, or
 11-5    other person regulated under this chapter;
 11-6                (7)  permits another to use the person's license or
 11-7    registration to perform an activity regulated under this chapter
 11-8    [practice as a funeral director or embalmer in this state]; or
 11-9                (8)  presents false certification of work done as a
11-10    provisional license holder.
11-11          SECTION 1.26.  Section 651.452, Occupations Code, is amended
11-12    to read as follows:
11-13          Sec. 651.452.  LACK OF FITNESS TO PRACTICE.  A person
11-14    violates this chapter if the person is:
11-15                (1)  convicted of:
11-16                      (A)  a misdemeanor related to the practice of
11-17    embalming, [or] funeral directing, or another activity regulated
11-18    under this chapter; or
11-19                      (B)  a felony;
11-20                (2)  unfit to practice as a funeral director or
11-21    embalmer because of insanity and determined by a court to be of
11-22    unsound mind; or
11-23                (3)  unfit to practice because of current substance
11-24    abuse.
11-25          SECTION 1.27.  Section 651.455, Occupations Code, is amended
11-26    to read as follows:
11-27          Sec. 651.455.  FALSE OR MISLEADING STATEMENTS REGARDING
11-28    FUNERAL MERCHANDISE OR FUNERAL, CEMETERY, OR CREMATORY SERVICES.
11-29    (a)  A person violates this chapter if the person uses a statement
11-30    that misleads or deceives the public, including a false or
11-31    misleading statement regarding:
11-32                (1)  a legal, religious, or cemetery requirement for
11-33    funeral merchandise or funeral, cemetery, or crematory services;
11-34                (2)  the preservative qualities of funeral merchandise
11-35    or funeral, cemetery, or crematory services in preventing or
11-36    substantially delaying natural decomposition of human remains;
11-37                (3)  the airtight or watertight properties of a casket
11-38    or outer enclosure; or
11-39                (4)  the licenses or registrations held by the
11-40    personnel in the operation of the cemetery, crematory, or funeral
11-41    establishment.
11-42          (b)  This section does not apply to cemetery or crematory
11-43    services that occur after burial or inurnment.
11-44          SECTION 1.28.  Subchapter K, Chapter 651, Occupations Code,
11-45    is amended by adding Section 651.5025 to read as follows:
11-46          Sec. 651.5025.  IMMEDIATE LICENSE REVOCATION; EFFECT OF
11-47    CERTAIN FELONY CONVICTIONS.  (a)  The commission may revoke the
11-48    license of a license holder without a hearing if the commission
11-49    determines from the information presented to it that the license
11-50    holder has been convicted of a felony related to the practice of
11-51    embalming, funeral directing, or another activity regulated by the
11-52    commission under this chapter. The commission shall notify the
11-53    license holder if it decides to revoke the license.
11-54          (b)  The license holder may appeal the decision by submitting
11-55    a written request for a hearing in accordance with this chapter and
11-56    Chapter 2001, Government Code, not later than the 30th day after
11-57    the date of the revocation.
11-58          SECTION 1.29.  Subchapter L, Chapter 651, Occupations Code,
11-59    is amended by adding Section 651.5515 to read as follows:
11-60          Sec. 651.5515.  PENALTY GUIDELINES.  (a)  The commission by
11-61    rule shall adopt guidelines that define and summarize the
11-62    violations that occur under this subchapter to assist the
11-63    commission in maintaining consistency in determining the amount of
11-64    an administrative penalty assessed under Section 651.552.  Using
11-65    those guidelines and the summary, the commission shall establish
11-66    and maintain a chart that lists:
11-67                (1)  the most common violations;
11-68                (2)  the penalty amounts assessed for those violations;
11-69    and
 12-1                (3)  the factors used to grade each type of violation
 12-2    before determining the penalty amount under Section 651.552.
 12-3          (b)  The commission shall consider using focus groups to
 12-4    obtain business and consumer input to match appropriate penalties
 12-5    to violations before proposing the rules under this section.
 12-6          (c)  The commission shall post the guidelines on the
 12-7    commission's Internet site.
 12-8          SECTION 1.30.  Section 651.552, Occupations Code, is amended
 12-9    to read as follows:
12-10          Sec. 651.552.  AMOUNT OF PENALTY.  (a)  The amount of the
12-11    administrative penalty shall be not less than $100 or more than
12-12    $5,000 for each violation.
12-13          (b)  In determining the amount of the penalty, the commission
12-14    shall base its decision on:
12-15                (1)  the seriousness of the violation;
12-16                (2)  the threat the violation poses to health and
12-17    safety;
12-18                (3)  the history of previous violations;
12-19                (4)  the amount necessary to deter a future violation;
12-20                (5)  efforts made to correct the violation;
12-21                (6)  the guidelines adopted under Section 651.5515; and
12-22                (7)  any other matter that justice requires [employ
12-23    guidelines established by commission rule].
12-24          SECTION 1.31.  Subsection (b), Section 651.553, Occupations
12-25    Code, is amended to read as follows:
12-26          (b)  Not later than the 10th day after the date the report is
12-27    issued, the commission shall send to the person charged with the
12-28    violation:
12-29                (1)  a copy of the report;
12-30                (2)  a statement of the right of the person to a
12-31    hearing relating to the alleged violation; [and]
12-32                (3)  a statement of the amount of the penalty; and
12-33                (4)  an explanation for any significant deviation from
12-34    the penalty amount assessed for similar violations.
12-35          SECTION 1.32.  Chapter 651, Occupations Code, is amended by
12-36    adding Subchapter N to read as follows:
12-37                 SUBCHAPTER N.  REGISTRATION REQUIREMENTS:
12-38                        CEMETERIES AND CREMATORIES
12-39          Sec. 651.651.  DEFINITION.  In this subchapter, "perpetual
12-40    care cemetery" means a person who notifies the Texas Department of
12-41    Banking of its intent to operate a perpetual care cemetery in this
12-42    state under Section 712.0031, Health and Safety Code.
12-43          Sec. 651.652.  APPLICABILITY.  (a)  This subchapter applies
12-44    only to a cemetery or crematory that sells goods or services
12-45    related to the burial or final disposition of a body.
12-46          (b)  This subchapter does not apply to the maintenance of a
12-47    cemetery or crematory, including maintenance of any goods or
12-48    services provided under Chapter 711 or 712, Health and Safety Code.
12-49          Sec. 651.653.  CEMETERY OR CREMATORY REGISTRATION
12-50    REQUIREMENTS.  (a)  A person may not conduct a cemetery or
12-51    crematory business in this state unless an individual who is the
12-52    owner or operator of the cemetery or crematory registers with the
12-53    commission.
12-54          (b)  A cemetery or crematory may be owned by a person who is
12-55    not registered under this chapter.
12-56          (c)  To register, the individual must apply for a
12-57    registration and pay the registration fee.  The commission shall
12-58    register the individual on determining that the individual
12-59    satisfies the requirements of this section.
12-60          (d)  The individual must:
12-61                (1)  explain the purpose of the cemetery or crematory
12-62    business;
12-63                (2)  provide the address and other contact information
12-64    for the business; and
12-65                (3)  identify the individual owner or operator who is
12-66    registering.
12-67          (e)  The commission by rule shall establish the fee to
12-68    register under this subchapter.  The fee must include the cost of
12-69    regulating registrants under this chapter, including discipline and
 13-1    investigation of complaints.
 13-2          Sec. 651.654.  PERPETUAL CARE CEMETERIES.  (a)  On request by
 13-3    the commission, the Texas Department of Banking shall provide the
 13-4    commission a list of perpetual care cemeteries, including the
 13-5    address and other contact information for each cemetery.  The
 13-6    commission shall annually register, under this subchapter, each
 13-7    perpetual care cemetery on that list.
 13-8          (b)  A perpetual care cemetery is not required to pay a
 13-9    registration fee under this subchapter.
13-10          Sec. 651.655.  RENEWAL OF CEMETERY OR CREMATORY REGISTRATION.
13-11    (a)  The commission shall mail written notice to a registrant of
13-12    the impending expiration of the registration not later than the
13-13    30th day before the expiration date of the registration.  The
13-14    notice must state that:
13-15                (1)  to renew the registration, the registrant must pay
13-16    the renewal fee not later than the date on which the registration
13-17    expires; and
13-18                (2)  the registration is automatically renewed on
13-19    receipt of the renewal fee.
13-20          (b)  A registrant who fails to pay the renewal fee by the due
13-21    date is subject to a late payment penalty equal to the amount
13-22    charged for the renewal fee.
13-23          (c)  If the registration is expired for longer than 30 days,
13-24    the registrant may not renew the registration, and the cemetery or
13-25    crematory may not be operated, until the owner or operator
13-26    registers as provided by Section 651.653.
13-27          (d)  This section does not apply to a perpetual care
13-28    cemetery.
13-29          SECTION 1.33.  The heading to Subtitle L, Title 3,
13-30    Occupations Code, is amended to read as follows:
13-31               SUBTITLE L.  CEMETERY AND CREMATORY SERVICES,
13-32                     FUNERAL DIRECTING, AND EMBALMING
13-33          SECTION 1.34.  The heading to Chapter 651, Occupations Code,
13-34    is amended to read as follows:
13-35     CHAPTER 651.  CEMETERY AND CREMATORY SERVICES, FUNERAL DIRECTING,
13-36                               AND EMBALMING
13-37                ARTICLE 2.  INFORMATION AND LEGAL RESOURCES
13-38          SECTION 2.01.  DEFINITIONS.  In this article:
13-39                (1)  "Funeral commission" means the Texas Funeral
13-40    Service Commission.
13-41                (2)  "Task force" means the task force created under
13-42    Section 2.06 of this article.
13-43          SECTION 2.02.  INFORMATION RESOURCES.  (a)  The funeral
13-44    commission shall contract with the Department of Information
13-45    Resources to improve the compilation of statistics and other
13-46    information using information resources.  The contract must expire
13-47    before the fiscal year that begins September 1, 2003.  In order to
13-48    meet this goal, the contract shall require the department to
13-49    analyze and implement changes to meet the technology needs of the
13-50    funeral commission regarding the compilation of information
13-51    necessary to effectively regulate the funeral industry.
13-52          (b)  The statistics and other information compiled under
13-53    Subsection (a)  of this section must include:
13-54                (1)  data about complaints, licenses, registrations,
13-55    and sanctions, including the number of new individual versus dual
13-56    licenses issued;
13-57                (2)  the number of complaints received that are outside
13-58    of the funeral commission's jurisdictions;
13-59                (3)  the average cost of complaints resolved;
13-60                (4)  summaries of violations and actions taken; and
13-61                (5)  any information necessary to help the attorney
13-62    general enforce delinquent child support orders among persons
13-63    licensed or registered by the funeral commission.
13-64          SECTION 2.03.  LEGAL RESOURCES.  The funeral commission shall
13-65    contract with the attorney general to ensure adequate access to
13-66    legal services from the attorney general, including:
13-67                (1)  consultation about the daily operations of the
13-68    funeral commission, including complaint, inspection, and other
13-69    enforcement procedures; and
 14-1                (2)  legal interpretations regarding Chapter 651,
 14-2    Occupations Code.
 14-3          SECTION 2.04.  PLAN.  Not later than December 1, 2001, the
 14-4    funeral commission shall develop a plan that details the manner in
 14-5    which it will  implement the requirements of Sections 2.02 and 2.03
 14-6    of this article.  The plan must include:
 14-7                (1)  a priority for each required task;
 14-8                (2)  the identity of any solutions that may be quickly
 14-9    implemented;
14-10                (3)  a cost estimate; and
14-11                (4)  a schedule for task completion.
14-12          SECTION 2.05.  STATUS REPORTS.  The funeral commission shall
14-13    report once each quarter on the status of its efforts under
14-14    Sections 2.02, 2.03, and 2.04 of this article to:
14-15                (1)  the Sunset Advisory Commission; and
14-16                (2)  the task force.
14-17          SECTION 2.06.  TASK FORCE.  (a)  A task force is created to:
14-18                (1)  review the plan developed by the funeral
14-19    commission under Section 2.04 of this article; and
14-20                (2)  monitor the funeral commission's implementation of
14-21    the changes recommended by the plan.
14-22          (b)  The task force is composed of six members, appointed not
14-23    later than October 1, 2001, as follows:
14-24                (1)  a representative from and appointed by each of the
14-25    following state officers or agencies:
14-26                      (A)  the attorney general;
14-27                      (B)  the comptroller of public accounts;
14-28                      (C)  the Department of Information Resources; and
14-29                      (D)  the state auditor;
14-30                (2)  a consumer representative, appointed by the
14-31    comptroller of public accounts; and
14-32                (3)  a representative of the funeral industry,
14-33    appointed by the comptroller of public accounts.
14-34          (c)  The representative of the comptroller of public accounts
14-35    shall serve as the presiding officer of the task force.
14-36          (d)  The task force shall meet at least once a month.
14-37          (e)  The task force is abolished and this section expires
14-38    January 15, 2003.
14-39          SECTION 2.07.  This article expires September 1, 2003.
14-40             ARTICLE 3.  REPEALER; TRANSITION; EFFECTIVE DATE
14-41          SECTION 3.01.  (a)  Subsections (a) and (b), Section 651.305,
14-42    Section 651.354, and Subsection (i), Section 651.506, Occupations
14-43    Code, are repealed.
14-44          (b)  Section 651.353, Occupations Code, is repealed effective
14-45    September 30, 2001.
14-46          SECTION 3.02.  (a)  In this section:
14-47                (1)  "Funeral commission" means the Texas Funeral
14-48    Service Commission.
14-49                (2)  "Sunset commission" means the Sunset Advisory
14-50    Commission.
14-51          (b)  In performing its duties under Section 651.002,
14-52    Occupations Code, as amended by this Act, and Chapter 325,
14-53    Government Code (Texas Sunset Act), the sunset commission may limit
14-54    the scope of its review of the funeral commission.
14-55          (c)  As part of the review, the sunset commission shall
14-56    determine how much progress the funeral commission has made in
14-57    addressing and implementing solutions required by this Act,
14-58    including solutions regarding:
14-59                (1)  information resources and legal services issues
14-60    under Article 2 of this Act;
14-61                (2)  formal rules outlining an open and fair complaint
14-62    system;
14-63                (3)  clearer guidelines to ensure a more effective use
14-64    of penalties;
14-65                (4)  a risk-based approach to scheduling inspections;
14-66    and
14-67                (5)  any other analyses that it determines are
14-68    appropriate.
14-69          (d)  Not later than September 1, 2002, the funeral commission
 15-1    shall report to the sunset commission on the status of its progress
 15-2    under this Act.
 15-3          (e)  If the sunset commission determines that the funeral
 15-4    commission has not made substantial progress, the sunset commission
 15-5    shall consider whether to recommend that the legislature abolish
 15-6    the funeral commission and transfer its functions to the Texas
 15-7    Department of Licensing and Regulation.
 15-8          SECTION 3.03.  Not later than March 1, 2002, the Texas
 15-9    Funeral Service Commission shall adopt the rules required by
15-10    Subsection (b), Section 651.202, Occupations Code, as amended by
15-11    this Act.  In adopting these rules, the commission shall examine,
15-12    and use as a guide, the rules adopted by the Board of Nurse
15-13    Examiners relating to complaint investigation, disposition, and
15-14    related proceedings.
15-15          SECTION 3.04.  Not later than March 1, 2002, the Texas
15-16    Funeral Service Commission shall adopt the rules required by
15-17    Section 651.5515, Occupations Code, as added by this Act.
15-18          SECTION 3.05.  (a)  The Texas Funeral Service Commission
15-19    shall study the risk-based assessment methods used by the Texas
15-20    Department of Health and the Texas Department of Licensing and
15-21    Regulation in conducting inspections required by law.
15-22          (b)  Based on the study conducted under Subsection (a)  of
15-23    this section, not later than March 1, 2002, the Texas Funeral
15-24    Service Commission shall adopt the rules required by Subdivision
15-25    (2), Subsection (d), Section 651.157, Occupations Code, as added by
15-26    this Act.
15-27          SECTION 3.06.  (a)  Not later than November 1, 2001, the
15-28    governor shall appoint the additional member of the Texas Funeral
15-29    Service Commission required under Subdivision (2), Subsection (a),
15-30    Section 651.051, Occupations Code, as amended by this Act.
15-31          (b)  The changes in law made by this Act in the
15-32    qualifications of, and the prohibitions applying to, the members of
15-33    the Texas Funeral Service Commission do not affect the entitlement
15-34    of a person serving as a member of the commission immediately
15-35    before September 1, 2001, to continue to carry out the functions of
15-36    the person's office for the remainder of the person's term.  The
15-37    changes in law apply only to a person appointed on or after
15-38    September 1, 2001.  This Act does not prohibit a person who is a
15-39    member of the Texas Funeral Service Commission immediately before
15-40    September 1, 2001, from being reappointed as a commission member if
15-41    the person has the qualifications required for the position under
15-42    Subchapter B, Chapter 651, Occupations Code, as amended by this
15-43    Act.
15-44          SECTION 3.07.  (a)  In accordance with Subsection (c),
15-45    Section 311.031, Government Code, which gives effect to a
15-46    substantive amendment enacted by the same legislature that codifies
15-47    the amended statute, the text of the following gives effect to
15-48    certain changes made by Chapters 1201 and 1476, Acts of the 76th
15-49    Legislature, Regular Session, 1999, as follows:
15-50                (1)  Section 651.002, Occupations Code, as set out in
15-51    Section 1.04 of this Act, gives effect to changes made by Section
15-52    1, Chapter 1201;
15-53                (2)  Subsection (a), Section 651.051, Occupations Code,
15-54    as set out in Section 1.05 of this Act, gives effect to changes
15-55    made by Section 2, Chapter 1476; and
15-56                (3)  Section 651.053, Occupations Code, as set out in
15-57    Section 1.08 of this Act, gives effect to changes made by Sections
15-58    5 and 6, Chapter 1476.
15-59          (b)  To the extent of any conflict, this Act prevails over
15-60    another Act of the 77th Legislature, Regular Session, 2001,
15-61    relating to nonsubstantive additions to and corrections in enacted
15-62    codes.
15-63          SECTION 3.08.  This Act takes effect September 1, 2001.
15-64                                 * * * * *