Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2721 by Parker (Relating to the licensing and regulation of persons who provide services in relation to the deceased; increasing a criminal penalty; creating a criminal offense; authorizing an administrative penalty; expanding the application of a fee.), As Engrossed
Due to the new nature of the regulatory provisions in the bill and the unknown number of entities that could be licensed, inspected, and investigated, the fiscal implications of the bill cannot be determined.
The bill would amend the Health and Safety Code and Occupations Code to modify the licensing, regulation, and oversight of non-anatomical donation organizations, willed body programs, human body acquisition service facilities, and authorized recipients. The bill requires the Texas Funeral Service Commission (TFSC) to license non-anatomical donation organizations, willed body programs, human body acquisition services, and authorized recipients. The bill requires the TFSC to adopt rules to prohibit licensed human body acquisition services, authorized recipients, willed body programs, or non-transplant anatomical donation organizations from accepting any donation of a body or anatomical specimen, including a direct donation, unless the TFSC authorizes the facility to receive the donation. The bill also requires the TFSC to adopt rules regarding who is permitting the donation of a body and rules on including enforcement provisions to ensure documentation and labeling requirements are met. The bill requires the TFSC to maintain a secure electronic database that contains the donor's informed consent documentation along with a unique identifier for every donated body, body segment, part or non-transplant anatomical part tied to the donor.
The bill would create a new state jail felony offense committed when a person, other than a donee licensed by the commission, knowingly solicits, preserves, distributes, or commits other related actions to a body, anatomical specimen, or other non-transplant parts for certain activities without authorization from the commission subject to certain exceptions. The bill would furthermore increase the criminal penalty for the offense of refusing, neglecting, or omitting to perform the required duties related to the donation and distribution of bodies and anatomical specimens to a Class B misdemeanor.
The bill absolves any cemetery organization or funeral establishment that is unaware of a dispute concerning a decedent's remains from liability for disposing the remains when the organization reasonably relies on good faith in the representation of a person who states, in writing, that the person is entitled to control the disposition of the remains.
The bill would take effect September 1, 2025. The addition of Occupations Code 651.702 (Limitation on Noneconomic Damages) would take effect only if receiving a three-fifths vote of all members elected to each house of the Legislature.
According to TFSC, the agency would need additional full-time-equivalent (FTE) positions to perform the necessary licensing and regulatory duties required by the bill. These FTEs include License and Permit Specialists, Investigators, Inspectors, Attorneys, Program Manager, and Administrative Assistants. However due to the unknown number of facilities that could request licensing, the unknown number of inspections as a result of licensing, the unknown number of complaints and the unknown number of administrative penalties and contested cases, the number of additional positions that would be needed by the agency to implement the provisions of the bill cannot be determined. In addition, TFSC's estimate assumes that the cost for a secure electronic database accessible to applicable persons would be $165,000 in fiscal years 2026 and 2027 and $64,500 in each subsequent year.
This estimate assumes that TFSC would set and collect reasonable fees to cover the cost of authorizing the receipt and distribution of bodies and anatomical specimens, and licensing willed body programs, authorized recipients, and anatomical facilities with revenues deposited to the credit of the General Revenue Fund.
Based on analysis by the Comptroller of Public Accounts, the new criminal penalties could result in an increase in state revenue due to court costs, however, the increase cannot be estimated. It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant. Additionally, new fees associated with TFSC licensing could increase fee revenue but the amount cannot be estimated.
Local Government Impact
While it is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant, the full fiscal implications of the bill cannot be determined at this time.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 513 Funeral Service Commission