85R1887 BEF-F     By: Raymond H.B. No. 1292       A BILL TO BE ENTITLED   AN ACT   relating to the Texas Funeral Service Commission; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 651.051(a), Occupations Code, is amended   to read as follows:          (a)  The Texas Funeral Service Commission consists of seven   members appointed by the governor, with the advice and consent of   the senate as follows:                (1)  two members who are licensed as both an embalmer   and a funeral director for at least the five years preceding   appointment to the commission;                (2)  one member who is licensed as a funeral director   and is a registered cemetery owner or operator; and                (3)  four members who represent the public and who:                      (A)  are not regulated under this chapter; and                      (B)  have consistently shown an interest in   supporting consumer protection.          SECTION 2.  Section 651.055(c), Occupations Code, is amended   to read as follows:          (c)  It is a ground for removal from the commission that a   member:                (1)  does not have at the time of appointment the   qualifications required by Sections 651.051(a) and (c) and   651.052(a);                (2)  does not maintain during service on the commission   the qualifications required by Sections 651.051(a) and (c) and   651.052(a);                (3)  violates a prohibition established by Section   651.053 [Sections 651.053(a)-(e) or 651.506(h)];                (4)  cannot because of illness or disability discharge   the member's duties for a substantial part of the term for which the   member is appointed; or                (5)  is absent for more than half of the regularly   scheduled commission meetings that the member is eligible to attend   during a calendar year unless the absence is excused by majority   vote of the commission.          SECTION 3.  The heading to Section 651.101, Occupations   Code, is amended to read as follows:          Sec. 651.101.  EXECUTIVE DIRECTOR[; BOND].          SECTION 4.  The heading to Section 651.151, Occupations   Code, is amended to read as follows:          Sec. 651.151.  GENERAL LICENSING POWERS AND DUTIES.          SECTION 5.  Section 651.151(c), Occupations Code, is   redesignated as Section 651.1511, Occupations Code, and amended to   read as follows:          Sec. 651.1511.  COMMITTEES. [(c)] The commission may   appoint a committee from its members to consider and make a   recommendation on a matter referred to the committee by the   commission.          SECTION 6.  Section 651.154, Occupations Code, is amended to   read as follows:          Sec. 651.154.  FEES. (a) The commission shall set the   following fees in amounts reasonable and necessary to administer   this chapter:                (1)  the funeral director's and embalmer's application   fee, license fee, renewal fee, late renewal penalty, duplicate   license fee, replacement license fee, and reciprocal license fee;   and                (2)  the cemetery, crematory, or funeral establishment   license fee, renewal fee, and late renewal penalty.          (b)  The commission shall set the provisional license   application fee, examination fee, renewal fee, and late renewal   penalty in amounts reasonable and necessary to administer the   provisional license program.          (c)  The commission shall set the following fees in amounts   reasonable and necessary to administer the continuing education   program under this chapter:                (1)  the continuing education provider fee and   continuing education course fee; and                (2)  the continuing education noncompliance fee [may   not charge a fee to a perpetual care cemetery, including a fee for   issuing or renewing a license issued under this chapter].          SECTION 7.  Sections 651.157, 651.1571, and 651.158,   Occupations Code, are amended to read as follows:          Sec. 651.157.  INSPECTION OF [CEMETERY,] CREMATORY[,] OR   FUNERAL ESTABLISHMENT. (a) A crematory or funeral establishment   must be inspected before an initial license may be issued to the   crematory or funeral establishment.          (a-1)  Except as provided by Subsection (b), a [licensed   cemetery,] crematory[,] or funeral establishment shall be   inspected at least once every two years by an agent of the   commission or by an agent of the state or a political subdivision   authorized by the commission to make inspections on its behalf.          (b)  If the commission finds a violation of this chapter or   of Chapter 193, 361, 711, 714, 715, or 716, Health and Safety Code,   the commission shall inspect the [cemetery,] crematory[,] or   funeral establishment annually until the commission determines   that the crematory or funeral establishment is free of violations.          (c)  A report of each inspection made under this section   shall be retained in the crematory's or funeral establishment's   licensing file [filed with the commission].          (d)  The commission by rule shall establish:                (1)  procedures for the inspection of a [cemetery,]   crematory[,] or funeral establishment required by this section; and                (2)  criteria, including consideration of the   crematory's or funeral establishment's inspection and complaint   history, regarding when the commission should inspect a crematory   or funeral [an] establishment based on the risk of a violation at a   crematory or funeral [an] establishment.          (e)  A premises on which funeral directing, [interment,]   cremation, or embalming is practiced shall be open at all times to   inspection for any violation of this chapter or of Chapter 193, 361,   or 716, Health and Safety Code, by:                (1)  an agent of the commission;                (2)  an authorized agent of the state; or                (3)  an authorized agent of the county or municipality   in which the premises is located.          (f)  Before a commission agent inspects a [cemetery,]   crematory[,] or funeral establishment, the agent shall review the   inspection reports filed with the commission on the crematory or   funeral establishment. During the inspection, the agent shall   determine whether previously identified problems have been   corrected and whether a pattern of violations exists. The   commission shall consider the information from the inspection   reports in determining whether a penalty should be imposed against   a crematory or funeral [an] establishment.          Sec. 651.1571.  INSPECTION REQUIREMENTS FOR CERTAIN   CEMETERIES[; EXCEPTION FOR PERPETUAL CARE CEMETERIES]. (a) A   cemetery licensed by the commission [This section and Section   651.157 do not apply to perpetual care cemeteries.          [(b)  Except as provided by Section 651.157(b):                [(1)  a cemetery] may not be inspected unless:                (1) [(A)]  an interment has occurred in the cemetery   within the two years preceding the inspection; or                (2) [(B)]  the commission has received a complaint   about the cemetery.          (b)  The[; and                [(2)  the] commission shall give lower priority to an   inspection of a cemetery than to an inspection of a crematory or   funeral establishment.          Sec. 651.158.  INSPECTION OF CERTAIN FACILITIES. (a) The   commission may require a funeral establishment that has solid waste   disposal and sanitation facilities that have not been inspected by   the [Texas] Department of State Health Services to obtain   inspection of those facilities by an entity other than the [Texas]   Department of State Health Services.          (b)  The commission by rule shall establish procedures for an   inspection required under this section.          SECTION 8.  Sections 651.160(a) and (b), Occupations Code,   are amended to read as follows:          (a)  The commission and the [Texas] Department of State   Health Services shall adopt a joint memorandum of understanding   that:                (1)  outlines the responsibilities of each agency in   enforcing requirements under Chapters 193 and 361, Health and   Safety Code, that affect funeral establishments;                (2)  establishes procedures by which each agency:                      (A)  may refer a complaint to the other; and                      (B)  will notify the other of a violation by a   funeral establishment of Chapter 193 or 361, Health and Safety   Code; and                (3)  coordinates inspection and enforcement efforts by   both agencies for measures that a funeral establishment is required   to implement under Chapters 193 and 361, Health and Safety Code.          (b)  Not later than the last month of each state fiscal year,   the commission and the [Texas] Department of State Health Services   shall review and update the memorandum of understanding.          SECTION 9.  Section 651.004, Occupations Code, is   transferred to Subchapter D, Chapter 651, Occupations Code, and   redesignated as Section 651.168, Occupations Code, to read as   follows:          Sec. 651.168 [651.004].  REGULATION OF CEMETERY AND   CREMATORY SERVICES. (a) The commission shall regulate cemetery   and crematory services as provided by this chapter and Chapter 716,   Health and Safety Code.          (b)  The commission may not regulate cemetery or crematory   services that occur after burial or inurnment unless the services   relate to the care and treatment of the remains in an urn, casket,   or outer enclosure.          SECTION 10.  Section 651.201, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  A funeral establishment may print additional copies of   the brochure only if the commission is unable to provide the number   of brochures needed by the funeral establishment.          SECTION 11.  Subchapter E, Chapter 651, Occupations Code, is   amended by adding Section 651.2015 to read as follows:          Sec. 651.2015.  INTERNET WEBSITES. The commission may allow   a funeral establishment that maintains an Internet website to link   to the commission's Internet website.          SECTION 12.  Section 651.203, Occupations Code, is amended   to read as follows:          Sec. 651.203.  RECORD OF COMPLAINTS.  (a)  The commission   shall maintain a record [file] on each written complaint filed with   the commission.  The record [file] must include:                (1)  the subject matter of the complaint;                (2)  the date the complaint is received by the   commission;                (3)  the name of the person who filed the complaint;                (4)  the name of each person contacted in relation to   the complaint;                (5)  a summary of the results of the review or   investigation of the complaint; and                (6)  an explanation of the reason the complaint [file]   was closed, if the commission closed the complaint [file] without   taking action other than to investigate the complaint.          (b)  Information in a record [file] maintained under this   section, other than information relating to a complaint that has   not reached a final disposition, is public information.          SECTION 13.  Section 651.252, Occupations Code, is amended   to read as follows:          Sec. 651.252.  LICENSE APPLICATION. (a) The commission may   adopt license application requirements [An applicant] for a funeral   director's license or an embalmer's license [must submit a written   license application to the commission and pay the application fee].          (b)  The commission may provide that a person applies for a   funeral director's or embalmer's license by completing a   provisional license program under Subchapter G [require an   applicant to appear before at least one member of the commission for   approval of the person's application. The approval is subject to   review by the entire commission.          [(c)     The commission shall keep a permanent, alphabetical   record of each license application and the action taken on the   application. The record must indicate the current status of each   application and license issued].          SECTION 14.  Section 651.164, Occupations Code, is   transferred to Subchapter F, Chapter 651, Occupations Code,   redesignated as Section 651.2525, Occupations Code, and amended to   read as follows:          Sec. 651.2525 [651.164]. LICENSE EXPIRATION. (a) A funeral   director's or embalmer's license is valid for 24 months.          (b)  The commission by rule shall [may] adopt a system under   which licenses expire on various dates during the year. For an   initial license that is issued for a term of less than 24 months   [the year in which the license expiration date is changed], the   commission shall prorate license fees on a monthly basis so that   each license holder pays only that portion of the license fee that   is allocable to the number of months during which the license is   valid. On renewal of the license on the new expiration date, the   total license renewal fee is payable.          SECTION 15.  Section 651.253, Occupations Code, is amended   to read as follows:          Sec. 651.253.  GENERAL LICENSE REQUIREMENTS. (a) To be   eligible for a funeral director's license or an embalmer's license,   an applicant must:                (1)  be at least 18 years of age;                (2)  have graduated from an accredited high school or   passed an examination prescribed by the Texas Education Agency;                (3)  have graduated from an accredited school or   college of mortuary science;                (4)  unless the applicant holds a reciprocal license,   have completed the requirements of the provisional license program;   and                (5)  have successfully completed the [applicable]   written examinations [examination] described by Section 651.254   and by Section 651.255 or 651.256, as applicable.          (b)  Unless the applicant is seeking a reciprocal license, an   [An] applicant for a funeral director's license or an embalmer's   license may not be considered for that license until the   applicant[:                [(1)]  completes all of the requirements of the   provisional license program[; and                [(2)     attains a grade of at least 75 percent on the   written examination given by the commission].          (c)  Notwithstanding Subsection (a)(3), the commission may   adopt rules to allow an applicant who graduated from a school or   college of mortuary science that is no longer accredited to become   licensed as a funeral director or embalmer.          SECTION 16.  Section 651.254, Occupations Code, is amended   to read as follows:          Sec. 651.254.  MORTUARY LAW EXAMINATION. (a) The   commission shall administer or arrange for the administration of a   written examination developed by the commission or developed for   the commission under a contract on:                (1)  laws applicable to vital statistics pertaining to   dead human bodies; and                (2)  local and state rules and laws relating to the   preparation, transportation, care, and disposition of dead human   bodies.           (b)  To pass the examination, an individual must receive a   grade of at least 75 percent. [LICENSE EXAMINATIONS; RESULTS. (a)   The examinations for a funeral director's license and an embalmer's   license shall be held at least annually. The examinations shall be   given at the time and place designated by the commission. The   commission shall give notice of the examinations.          [(b)     Not later than the 30th day after the date a person   takes a licensing examination under this chapter, the commission   shall notify the person of the results of the examination.          [(c)     If the examination is graded or reviewed by a testing   service:                [(1)     the commission shall notify the person of the   results of the examination not later than the 14th day after the   date the commission receives the results from the testing service;   and                [(2)     if notice of the examination results will be   delayed for longer than 90 days after the examination date, the   commission shall notify the person of the reason for the delay   before the 90th day.          [(d)     The commission may require a testing service to notify   a person of the results of the person's examination.          [(e)     If requested in writing by a person who fails a   licensing examination administered under this chapter, the   commission shall furnish the person with an analysis of the   person's performance on the examination.]          SECTION 17.  Sections 651.255, 651.256, 651.258, and   651.259, Occupations Code, are amended to read as follows:          Sec. 651.255.  EXAMINATION [EXAMINATIONS] REQUIRED FOR   FUNERAL DIRECTOR'S LICENSE. The commission shall administer or   arrange for the administration of[:                [(1)]  a written professionally prepared examination   on:                (1) [(A)]  the art and technique of funeral directing;                (2) [(B)]  the signs of death;                (3) [(C)]  the manner by which death may be determined;                (4) [(D)]  sanitation and hygiene;                (5) [(E)]  mortuary management and mortuary law;                (6) [(F)]  business and professional ethics; and                (7) [(G)]  other subjects that may be taught in a   recognized school or college of mortuary science[; and                [(2)     a written examination developed by the commission   or developed for the commission by contract on:                      [(A)     laws applicable to vital statistics   pertaining to dead human bodies; and                      [(B)     local and state rules and laws relating to   the preparation, transportation, care, and disposition of dead   human bodies].          Sec. 651.256.  EXAMINATION [EXAMINATIONS] REQUIRED FOR   EMBALMER'S LICENSE. The commission shall administer or arrange for   the administration of[:                [(1)]  a written professionally prepared examination   on:                (1) [(A)]  the anatomy of the human body, including:                      (A) [(i)]  the cavities of the human body; and                      (B) [(ii)]  the arterial and venous system of the   human body;                (2) [(B)]  blood and discoloration;                (3) [(C)]  bacteriology and hygiene;                (4) [(D)]  pathology;                (5) [(E)]  chemistry and embalming;                (6) [(F)]  arterial and cavity embalming;                (7) [(G)]  restorative art;                (8) [(H)]  disinfecting;                (9) [(I)]  embalming special cases;                (10) [(J)]  contagious and infectious diseases;                (11) [(K)]  mortuary management;                (12) [(L)]  care, preservation, transportation, and   disposition of dead human bodies;                (13) [(M)]  sanitary science; and                (14) [(N)]  other subjects that may be taught in a   recognized school or college of mortuary science[; and                [(2)     a written examination developed by the commission   or developed for the commission by contract on:                      [(A)     laws applicable to vital statistics   pertaining to dead human bodies; and                      [(B)     local and state rules and laws relating to   the care and disposition of dead human bodies].          Sec. 651.258.  LICENSE ISSUANCE. On issuance of a funeral   director's license or an embalmer's license under this chapter, a   majority of the commission members shall sign the license. A [The]   license issued by the commission authorizes the license holder to   practice embalming, funeral directing, or both.          Sec. 651.259.  APPLICATION BY OUT-OF-STATE LICENSE HOLDER.   (a) The commission shall waive any requirement for a funeral   director's license or an embalmer's license for an applicant who   holds a license issued by another state, country, or territory that   has license requirements substantially equivalent to the   requirements of this state and who meets the requirements of this   section. The commission may waive any license requirement for an   applicant who holds a license issued by another state that does not   have license requirements substantially equivalent to those of this   state and who meets the requirements of this section. [The   applicant shall pay a license fee in an amount set by the   commission.]          (b)  Any applicant for a license under this section shall   file an [a sworn] application that includes:                (1)  a sworn statement that:                      (A)  the applicant is the person to whom the   license was issued;                      (B)  the license under which the applicant   practiced as a funeral director or embalmer in the state, country,   or territory from which the applicant moved was, at the time the   applicant left, in effect;                      (C)  no proceeding has been instituted against the   applicant for the cancellation, suspension, or revocation of the   license in the state, country, or territory that issued the   license; and                      (D) [(C)]  no prosecution is pending against the   applicant in a state or federal court for an offense that, under the   laws of this state, is a felony, or is a misdemeanor related to the   practice of embalming or funeral directing; [and]                (2)  an affidavit of a person described by Subsection   (c) verifying that:                      (A)  the accompanying license has not been   canceled, suspended, or revoked; and                      (B)  the statement of the qualifications made in   the application for licensure in this state is correct; and                 (3)  documentation that the applicant has graduated   from an accredited college of mortuary science.          (c)  The affidavit must be made by:                (1)  the presiding officer or secretary of the   governmental entity that issued the license; or                (2)  a registration officer of the state, country, or   territory that issued the license.          (d)  [The applicant must affirm in the statement that the   license under which the applicant practiced as a funeral director   or embalmer in the state, country, or territory from which the   applicant moved was, at the time the applicant left, in effect.          [(e)]  An applicant must submit to [The commission shall   conduct] a criminal background check before submitting a license   application [on each applicant]. An applicant is not eligible for a   license under this section if the applicant has, in the 10 years   preceding the date of the application, been finally convicted of a   misdemeanor involving moral turpitude or a felony.          (e) [(f)]  An applicant for a license under this section   must[:                [(1)]  provide proof that[:                      [(A)  the license is in good standing;                      [(B)]  the applicant has practiced under the   license for at least:                (1) [(i)]  one year in the state, country, or territory    that issued the license if that state, country, or territory has   license requirements substantially equivalent to those of this   state; or                (2) [(ii)]  five years in the state, country, or   territory that issued the license if that state, country, or   territory does not have license requirements substantially   equivalent to those of this state.          (f)  An applicant under this section must successfully   complete the written examination described by Section 651.254[; and                      [(C)     the applicant has graduated from an   accredited college of mortuary science; and                [(2)     pass a written examination of not more than 50   questions on applicable state laws and commission rules].          (g)  On approval of the application, the applicant shall pay   a license fee in an amount set by the commission [The commission   shall conduct the examination under Subsection (f)(2) at each   regularly scheduled meeting of the commission].          SECTION 18.  The heading to Section 651.260, Occupations   Code, is amended to read as follows:          Sec. 651.260.  REPLACEMENT [DUPLICATE] LICENSE.          SECTION 19.  Sections 651.260(a) and (c), Occupations Code,   are amended to read as follows:          (a)  If a license issued under this chapter is lost or   destroyed, the license holder may apply to the commission for a   replacement [duplicate] license.          (c)  The commission shall issue a replacement [duplicate]   license after receipt of the information and payment of the fee set   by the commission for the replacement [duplicate] license.          SECTION 20.  Section 651.261, Occupations Code, is amended   to read as follows:          Sec. 651.261.  POSTING OF LICENSE. (a) A license holder   shall conspicuously display the holder's original license,   duplicate original license, or replacement license in each place of   business at which the license holder practices.          (b)  The commission shall issue a duplicate original license   on application and payment of a fee set by the commission for the   license if the license holder needs a license to display in multiple   locations.          SECTION 21.  Section 651.266, Occupations Code, is amended   to read as follows:          Sec. 651.266.  CONTINUING EDUCATION. The commission by rule   may require continuing education as a condition for license renewal   except for a license holder described by Section 651.155 or an   applicant for renewal described by Section 651.265(b) [651.265].   If the commission requires continuing education, the commission   shall require completion of a minimum number of hours of ethics   training as a required part of that education.          SECTION 22.  Section 651.165, Occupations Code, is   transferred to Subchapter F, Chapter 651, Occupations Code,   redesignated as Section 651.2661, Occupations Code, and amended to   read as follows:          Sec. 651.2661 [651.165]. RENEWAL OR REINSTATEMENT OF   LICENSE. (a) A person who is otherwise eligible to renew a license   may renew an unexpired license by paying the required renewal fee to   the commission before the expiration date of the license. A person   whose license has expired may not engage in activities that require   a license until the license has been renewed.          (b)  A person whose license has been expired for 90 days or   less may renew the license by paying to the commission a renewal fee   that is equal to 1-1/2 times the normally required renewal fee.          (c)  A person whose license has been expired for more than 90   days but less than one year may renew the license by paying to the   commission a renewal fee that is equal to two times the normally   required renewal fee.          (d)  A person whose license has been expired for one year or   more may reinstate [renew] the license by:                (1)  retaking and passing the [applicable] examination   under Section 651.254;                (2)  paying any applicable fees, including a renewal   fee that is equal to two times the normally required renewal fee;   and                (3)  completing any continuing education required   under Section 651.266.          (e)  A person who was licensed in this state, moved to   another state, and is currently licensed and has been in practice in   the other state for the two years preceding the date of application   may obtain a new license without reexamination if both licenses are   in good standing. The person must pay to the commission a fee that   is equal to two times the normally required renewal fee for the   license.          (f)  At least 30 days before the expiration of a person's   license, the commission shall send written notice of the impending   license expiration to the person at the person's last known address   according to the records of the commission.          SECTION 23.  Section 651.1655, Occupations Code, is   transferred to Subchapter F, Chapter 651, Occupations Code,   redesignated as Section 651.2662, Occupations Code, and amended to   read as follows:          Sec. 651.2662 [651.1655]. REINSTATEMENT OF SUSPENDED   LICENSE. If authorized by the commission, a [A] person whose   license has been suspended may reinstate [renew] the license by:                (1)  paying to the commission a renewal fee that is   equal to two times the normally required renewal fee;                (2)  paying [in addition to] any penalty assessed by   the commission;                (3)  completing any continuing education required   under Section 651.266; and                 (4)  passing with a score of at least 75 percent the   examination under Section 651.254.          SECTION 24.  Sections 651.267(c) and (d), Occupations Code,   are amended to read as follows:          (c)  A hearing to determine whether to reissue a license   shall be held before the commission unless the commission requires   the hearing to be held before an administrative law judge [a   hearings officer].          (d)  A license that has been revoked may be reissued   [reinstated] only after the applicant:                (1)  retakes and passes the [applicable] examination   under Section 651.254;                (2)  pays a fee that is equal to two times the normally   required renewal fee; [and]                (3)  satisfies any other commission requirements,   including any continuing education requirements under Section   651.266; and                (4)  pays any penalty assessed by the commission.          SECTION 25.  The heading to Subchapter H, Chapter 651,   Occupations Code, is amended to read as follows:   SUBCHAPTER H. LICENSE REQUIREMENTS: CEMETERY, FUNERAL, AND   COMMERCIAL EMBALMING [EMBALMER] ESTABLISHMENTS          SECTION 26.  Section 651.351, Occupations Code, is amended   by amending Subsections (d), (f), (g), and (h) and adding   Subsection (h-1) to read as follows:          (d)  A funeral establishment must:                (1)  meet the building, fire safety, and health   standards and health ordinances of this state and of the   municipality in which the establishment is located;                (2)  except as provided by Subsection (i), be located   at a fixed place that is not tax-exempt property or a cemetery;                (3)  include facilities in which funeral services may   be conducted;                (4)  have access to vehicles [rolling stock] consisting   of at least one motor hearse;                (5)  include a preparation room containing the   facilities, equipment, and supplies required by commission rule to   ensure the provision of adequate embalming services;                (6)  include other facilities as necessary to comply   with the sanitary codes of this state and of the municipality in   which the room is located; [and]                (7)  include a display containing sufficient   merchandise to permit reasonable selection, including at least   [five adult caskets,] two [of which must be] full-size caskets, one   of which must be the least expensive casket offered, that are [and]   displayed in a setting that allows for private selection; and                (8)  conspicuously display the funeral establishment's   license [casket showroom].          (f)  Other than the two full-size caskets, the merchandise    [The least expensive casket] displayed under Subsection (d)(7)   [must be a full-size casket displayed in the same general manner as   the other full-size caskets are displayed.     The three adult caskets   that are not required to be full-size under Subsection (d)(7)] may   be displayed:                (1)  in a partial panel display; or                (2)  by video or brochure, online, or in any other   manner.          (g)  The commission may exempt a funeral establishment from   the requirements of Subsection (d)(5) if[:                [(1)]  the majority owner or designated agent of record   of a funeral establishment submits a written petition to the   commission requesting an exemption and stating:                (1) [(A)]  the establishment's name and address;                (2) [(B)]  that the establishment is located within 50   miles of a facility owned by the establishment requesting the   exemption and at which embalming services may be performed; and                (3) [(C)]  that no embalming services will be performed   at the establishment[; and                [(2)     the commission determines that the criteria in   Subdivision (1) have been met].          (h)  The executive director shall notify the petitioner of   the commission's decision on an exemption request under Subsection   (g).          (h-1)  An [The] exemption under Subsection (g) remains in   effect until the conditions required for the exemption are no   longer met[:                [(1)     the establishment is no longer located within 50   miles of a facility owned by the exempt establishment or at which   embalming services may be performed; or                [(2)     an embalming service has been performed at the   establishment].          SECTION 27.  The heading to Section 651.352, Occupations   Code, is amended to read as follows:          Sec. 651.352.  COMMERCIAL EMBALMING [EMBALMERS]   ESTABLISHMENT LICENSE REQUIREMENTS.          SECTION 28.  Sections 651.352(a), (b), (c), and (e),   Occupations Code, are amended to read as follows:          (a)  In this section, "commercial embalming [embalmers]   establishment" means a funeral [an] establishment that:                (1)  embalms for other licensed funeral   establishments; and                (2)  does not sell services or merchandise directly or   at retail to the public[; and                [(3)  meets the requirements for an embalmers license].          (b)  An establishment that functions solely as a commercial   embalming [embalmers] establishment is required to hold a   commercial embalming [embalmers] establishment license and [but]   is [not] required to comply with the requirements for a funeral   establishment license under Section 651.351 except for the   requirements of Sections 651.351(d)(3)[, (d)(6),] and (7) [(f)].          (c)  A commercial embalming [embalmers] establishment may   employ an embalmer only if the embalmer is licensed under this   chapter.          (e)  A licensed commercial embalming [embalmers]   establishment that meets the licensing requirements under   Subchapter N may hold a crematory establishment license.          SECTION 29.  Section 651.401, Occupations Code, is amended   to read as follows:          Sec. 651.401.  REMOVAL OF DEAD HUMAN BODY [FIRST CALL]. (a)   A funeral director [or embalmer] must direct [and personally   supervise] the pickup of a dead human body [on first call].          (b)  A dead human body may be transferred without a funeral   director directing [personally making] the transfer at the   direction of a justice of the peace or other law enforcement   official[:                [(1)  from one funeral establishment to another;                [(2)     from a funeral establishment to and from a morgue   in which an autopsy is performed;                [(3)  to and from an airport, crematory, or both; or                [(4)     in circumstances in which there is no reasonable   probability that an unlicensed person will encounter a family   member or other person with whom funeral arrangements are normally   made by a funeral director or embalmer].          (c)  A funeral director may direct an unlicensed person, a   provisional license holder, or an embalmer in the removal of a dead   human body. A funeral director who directs the removal of a dead   human body by an unlicensed person is strictly accountable for   compliance with the requirements of this chapter. If an unlicensed   person, a provisional license holder, or an embalmer inadvertently   encounters a family member or other person with whom funeral   arrangements are normally made, the [unlicensed] person shall   restrict communication with the family member or other person to:                (1)  identifying the [unlicensed] person's employer;   and                (2)  [arranging an appointment with the unlicensed   person's employer for a family member or other person who indicates   a desire to make funeral arrangements for the deceased; and                [(3)]  making any disclosure to the family member or   other person that is required by federal or state law or regulation.          [(d)     A funeral director or embalmer who directs the removal   or transfer of a dead human body without personally supervising the   transfer is strictly accountable for compliance with the   requirements of first call as provided by this section.]          SECTION 30.  Subchapter I, Chapter 651, Occupations Code, is   amended by adding Section 651.4031 to read as follows:          Sec. 651.4031.  DESIGNATION OF EMBALMER IN CHARGE; EFFECT   OF VIOLATION. (a) A commercial embalming establishment shall:                (1)  designate to the commission an embalmer in charge;   and                (2)  promptly notify the commission of any change in   that designation.          (b)  The embalmer in charge is directly responsible for the   embalming business of the commercial embalming establishment.          (c)  The embalmer in charge is ultimately responsible for   compliance with mortuary laws. The embalmer in charge may be   charged with a violation of this chapter if a violation occurs in   the commercial embalming establishment.          SECTION 31.  Section 651.404, Occupations Code, is amended   to read as follows:          Sec. 651.404.  CONSUMER BROCHURE. When funeral services are   discussed, a funeral director or agent of the funeral establishment   shall provide each prospective customer with a copy of the brochure   prepared by the commission under Section 651.201. [The funeral   establishment shall print additional copies of the brochure if the   commission is unable to provide the number of brochures needed by   the funeral establishment.]          SECTION 32.  Section 651.407(c), Occupations Code, is   amended to read as follows:          (c)  The funeral establishment shall retain a copy of the   written consent for at least two years and shall make the records of   the funeral establishment reasonably available for inspection by:                (1)  the commission; and                (2)  the person who provided the consent, as provided   by Section 711.002, Health and Safety Code [; and                [(3)  the next of kin of the deceased person].          SECTION 33.  The heading to Section 651.454, Occupations   Code, is amended to read as follows:          Sec. 651.454.  [OTHER] UNETHICAL CONDUCT IN SOLICITING   CUSTOMERS.          SECTION 34.  Section 651.454(a), Occupations Code, is   amended to read as follows:          (a)  A person violates this chapter if the person, in   arranging for funeral services or merchandise, fails to:                (1)  provide a prospective customer at the beginning of   the arrangement process with a copy of the brochure required by   Section 651.404;                (2)  provide to a prospective customer inquiring in   person about any funeral service or merchandise a retail price list   for the prospective customer to keep;                (3)  explain to a prospective customer that a purchase   [contractual] agreement for funeral services or merchandise may not   be entered into before a retail price list is provided to the   prospective customer; or                (4)  provide general price information by telephone   within a reasonable time.          SECTION 35.  Sections 651.457 and 651.458, Occupations Code,   are amended to read as follows:          Sec. 651.457.  UNETHICAL CONDUCT REGARDING EMBALMING. (a)   A person violates this chapter if the person:                (1)  embalms a body without:                      (A)  receiving the express written or oral   permission of a person authorized to make funeral arrangements for   the deceased; or                      (B)  making a documented reasonable effort over a   period of at least three hours to obtain the permission;                (2)  [embalms or attempts to embalm a dead human body   without proper authority, evidence of which includes making an   incision on the body, raising a circulatory vessel of the body, or   injecting a chemical into the body;                [(3)]  allows the presence or participation of a   student for credit or satisfaction of academic requirements during   the embalming of a dead human body without complying with Section   651.407; or                (3) [(4)]  places a chemical or substance on or in a   dead human body to disinfect or preserve the body or to restore body   tissues and structures without holding an embalmer's license.          (b)  Notwithstanding Subsection (a)(3) [(a)(4)], a   provisional license holder does not violate this chapter if the   provisional license holder places a chemical or substance on or in a   dead human body to disinfect or preserve the body or to restore body   tissues and structures under the supervision of an embalmer.          (c)  For purposes of this section, "embalms a body" includes   an attempt to embalm a body, evidence of which includes making an   incision on the body, raising a circulatory vessel of the body, or   injecting a chemical into the body.          Sec. 651.458.  UNETHICAL CONDUCT BY FUNERAL ESTABLISHMENT.   A person violates this chapter if the person makes a distinction in   providing funeral information to a customer because [regardless] of   any affiliation of the customer or because [whether] the customer   does or does not have [has] a present need for the services or   merchandise.          SECTION 36.  The heading to Section 651.459, Occupations   Code, is amended to read as follows:          Sec. 651.459.  [OTHER] UNETHICAL CONDUCT IN PROVIDING   FUNERAL SERVICES.          SECTION 37.  Sections 651.459(a) and (c), Occupations Code,   are amended to read as follows:          (a)  A person violates this chapter if the person:                (1)  wilfully makes a false statement on:                      (A)  a death certificate, including forgery of a   physician's signature; or                      (B)  a document required by this chapter or a rule   adopted under this chapter;                (2)  engages in fraudulent, [unprofessional, or]   deceptive, [conduct in providing funeral services or merchandise to   a customer;                [(3)  engages in] dishonest [conduct], wilful,   unprofessional, or negligent conduct in providing [, or negligence   in the practice of] embalming services or funeral services or   merchandise to a customer [directing] that is likely to or does   deceive, defraud, or otherwise injure the public;                (3) [(4)]  causes the execution of a document by the   use of fraud, deceit, or misrepresentation;                (4) [(5)]  directly or indirectly employs a person to   solicit individuals or institutions by whose influence dead human   bodies may be turned over to a particular funeral director,   embalmer, or funeral establishment;                (5) [(6)]  misappropriates funds held by a license   holder, a funeral establishment, an employee or agent of the   funeral establishment, or another depository, that create an   obligation to provide a funeral service or merchandise, including   retaining for an unreasonable time excess funds paid by or on behalf   of the customer for which the customer is entitled to a refund; or                (6) [(7)]  performs acts of funeral directing or   embalming that are outside the licensed scope and authority of the   license holder, or performs acts of funeral directing or embalming   in a capacity other than that of an employee, agent, subcontractor,   or assignee of a licensed funeral establishment that has contracted   to perform those acts.          (c)  A funeral director in charge violates this chapter if   the funeral director in charge fails to ensure that a dead human   body is removed in the manner provided by Section 651.401 [provide a   funeral director or an embalmer for direction or personal   supervision for a first call].          SECTION 38.  Section 651.461, Occupations Code, is amended   to read as follows:          Sec. 651.461.  DEFENSE TO VIOLATION. A person licensed   under this chapter does not violate this chapter by engaging in   conduct regarding funeral arrangements under the direction of a   person who:                (1)  represents in writing to the license holder that   the person is authorized to make funeral arrangements for the   deceased; and                (2)  provides written directions to the license holder   in the manner provided by Section 711.002, Health and Safety Code.          SECTION 39.  Section 651.508, Occupations Code, is   transferred to Subchapter J, Chapter 651, Occupations Code,   redesignated as Section 651.462, Occupations Code, and amended to   read as follows:          Sec. 651.462 [651.508].  ENFORCEMENT OF LAW REGULATING   CREMATORIES. A [For purposes of this subchapter, a] person   regulated under this chapter that violates Chapter 716, Health and   Safety Code, violates this chapter.          SECTION 40.  Section 651.501(a), Occupations Code, is   amended to read as follows:          (a)  The [After a hearing as provided by this subchapter,   the] commission may issue a letter of warning [reprimand], assess   an administrative penalty, revoke or [,] suspend a license, place a   license holder on probation [or probate the suspension of a license   or provisional license], or impose any combination of those   penalties if the commission determines that a person regulated   under this chapter has violated [for a violation of] this chapter or   a rule adopted under this chapter.          SECTION 41.  The heading to Section 651.502, Occupations   Code, is amended to read as follows:          Sec. 651.502.  LICENSE DENIAL[; EFFECT OF CRIMINAL   CONVICTION].          SECTION 42.  Section 651.502, Occupations Code, is amended   by amending Subsections (a) and (b) and adding Subsection (a-1) to   read as follows:          (a)  After a hearing before the commission, the [The]   commission may[, before a hearing or a waiver of a right to a   hearing,] refuse to issue or renew:                (1)  a license or provisional license to a person who   has violated this chapter or a rule adopted under this chapter or   who has a criminal conviction; or                (2)  an establishment license to an individual,   partnership, or corporation if the individual, a partner, or an   officer or director of the corporation:                      (A)  has violated this chapter or a rule adopted   under this chapter;                      (B)  previously held an establishment license   that was suspended or revoked; or                      (C)  attempts to avoid a revocation, suspension,   or license denial [refusal] by subterfuge or other evasive means.          (a-1)  The commission may, after a hearing held under   Subsection (a), order that a license be issued or renewed on a   probationary basis through execution of an agreed order.          (b)  A person who is refused the issuance or renewal of [to   whom the commission refuses to issue] a license under Subsection   (a) may appeal the decision by submitting a written request for a   hearing in accordance with Chapter 2001, Government Code, not later   than the 30th day after the date of the refusal.          SECTION 43.  Subchapter K, Chapter 651, Occupations Code, is   amended by adding Section 651.5029 to read as follows:          Sec. 651.5029.  REPORT AND NOTICE OF VIOLATION AND PENALTY.   (a) If, after examining a possible violation and the facts relating   to that violation, the commission determines that a violation has   occurred, the commission shall issue a preliminary report stating:                (1)  the facts on which the determination is based;                (2)  that a sanction may be imposed; and                (3)  the types of sanctions that may be imposed for the   violation.          (b)  Not later than the 10th day after the date the report is   issued, the commission shall send to the person charged with the   violation:                (1)  a copy of the report;                (2)  a statement of the right of the person to a hearing   relating to the alleged violation;                (3)  a statement of the types of sanctions that may be   imposed for the violation; and                (4)  a statement that the person may request an   informal proceeding.          (c)  Until a hearing has been held on the possible violation,   the possible violation and the sanctions that may be imposed may be   disclosed only to the person charged with the violation, unless   that person has waived the right to a hearing or paid the amount to   the commission.          SECTION 44.  The heading to Section 651.503, Occupations   Code, is amended to read as follows:          Sec. 651.503.  LETTER OF WARNING; REPORT BY LICENSE HOLDER.          SECTION 45.  Section 651.503(a), Occupations Code, is   amended to read as follows:          (a)  The commission shall issue a written warning to a   license holder if the commission:                (1)  conducts an investigation that identifies a   violation of this chapter by the license holder; and                (2)  does not [issue a reprimand, assess an   administrative penalty, or] impose any other penalty against the   license holder.          SECTION 46.  Section 651.505, Occupations Code, is amended   by amending Subsection (a) and adding Subsection (d) to read as   follows:          (a)  If the commission places a license holder on probation   [a person whose license has been suspended], the commission may   impose conditions on the probation that are reasonable and related   to the reason the license holder was placed on probation [violation   for which the license was suspended]. If the commission orders   probation, the commission may require the license holder to:                (1)  report regularly to the commission on matters that   are the basis of the probation;                (2)  limit practice to the areas prescribed by the   commission; or                (3)  continue or renew professional education until the   license holder attains a degree of skill satisfactory to the   commission in those areas that are the basis of the probation.          (d)  The commission may suspend or revoke the license of a   license holder without a hearing if the commission determines the   license holder violated the terms of probation. The license holder   may appeal the decision by submitting a written request for a   hearing in accordance with this chapter and Chapter 2001,   Government Code, not later than the 30th day after the date of the   suspension or revocation.          SECTION 47.  Section 651.506(a), Occupations Code, is   amended to read as follows:          (a)  A proceeding conducted by the commission relating to an   appeal of the denial of a license or provisional license, the   suspension or revocation of a license, [the issuance of a   reprimand,] or the imposition of an administrative penalty under   Subchapter L [assessed after a hearing as provided by Section   651.551] and judicial review of the proceeding are governed by   Chapter 2001, Government Code.          SECTION 48.  Section 651.506(f), Occupations Code, is   redesignated as Section 651.50601, Occupations Code, and amended to   read as follows:          Sec. 651.50601.  DECISION BY COMMISSION. [(f)] The   commission shall review the findings of fact, conclusions of law,   and ruling of the administrative law judge in a proceeding under   Section 651.506 before making its final ruling in the proceeding.   The commission may also review a transcript of the proceeding   before making its final ruling. The commission shall adopt the   ruling of the administrative law judge as its ruling unless it finds   good cause to issue a different ruling. The commission shall   explain in writing the reasons for adopting a ruling other than the   one issued by the administrative law judge.          SECTION 49.  Subchapter K, Chapter 651, Occupations Code, is   amended by adding Section 651.5065 to read as follows:          Sec. 651.5065.  INFORMAL PROCEEDINGS. (a) The commission   by rule shall adopt procedures governing:                (1)  informal disposition of a contested case under   Section 2001.056, Government Code; and                (2)  an informal proceeding held in compliance with   Section 2001.054, Government Code.          (b)  Rules adopted under this section must:                (1)  provide the complainant and the license holder an   opportunity to be heard; and                (2)  require the presence of a representative of the   commission's legal staff or of the attorney general to advise the   commission or the commission's employees.          SECTION 50.  Section 651.5515, Occupations Code, is   transferred to Subchapter K, Chapter 651, Occupations Code,   redesignated as Section 651.5075, Occupations Code, and amended to   read as follows:          Sec. 651.5075 [651.5515].  SANCTIONS SCHEDULE [PENALTY   GUIDELINES]. (a) The commission by rule shall adopt a sanctions   schedule [guidelines that define and summarize the violations that   occur under this subchapter to assist the commission in maintaining   consistency in determining the amount of an administrative penalty   assessed under Section 651.552. Using those guidelines and the   summary, the commission shall establish and maintain a chart] that   lists:                (1)  the most common violations that occur under this   chapter;                (2)  the types of sanctions, including administrative   penalties, that may be imposed [penalty amounts assessed] for those   violations; and                (3)  the factors used to determine the sanction that   may be imposed for [grade] each [type of] violation [before   determining the penalty amount under Section 651.552].          (b)  The commission shall [consider using focus groups to]   obtain business and consumer input to match appropriate sanctions    [penalties] to violations before proposing the rules under this   section.          (c)  The commission shall post the schedule [guidelines] on   the commission's Internet website [site].          SECTION 51.  Section 651.552(b), Occupations Code, is   amended to read as follows:          (b)  In determining the amount of the penalty, the commission   shall base its decision on:                (1)  the seriousness of the violation;                (2)  the threat the violation poses to health and   safety;                (3)  the history of previous violations;                (4)  the amount necessary to deter a future violation;                (5)  efforts made to correct the violation;                (6)  the sanctions schedule [guidelines] adopted under   Section 651.5075 [651.5515]; and                (7)  any other matter that justice requires.          SECTION 52.  Section 651.602(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person:                (1)  acts or holds the person out as a funeral director,   embalmer, or provisional license holder without being licensed   under this chapter;                (2)  [makes a first call in a manner that] violates   Section 651.401;                (3)  is a funeral director, embalmer, or provisional   license holder and engages in a funeral practice that violates this   chapter or a rule adopted under this chapter; or                (4)  violates Chapter 154, Finance Code, or a rule   adopted under that chapter, regardless of whether the Texas   Department of Banking or another governmental agency takes action   relating to the violation.          SECTION 53.  Section 651.652, Occupations Code, is amended   to read as follows:          Sec. 651.652.  APPLICABILITY. (a) This subchapter applies   only to a crematory that sells goods or services related to the   [burial or] final disposition of a body.          SECTION 54.  The following sections of the Occupations Code   are repealed:                (1)  Section 651.257;                (2)  Section 651.2595;                (3)  Section 651.264;                (4)  Section 651.354(d);                (5)  Section 651.355;                (6)  Sections 651.502(c) and (d);                (7)  Section 651.5026;                (8)  Section 651.504;                (9)  Sections 651.506(g) and (h);                (10)  Section 651.5061; and                (11)  Section 651.559.          SECTION 55.  Section 651.051(a)(2), Occupations Code, as   amended by this Act, applies only to a member of the Texas Funeral   Service Commission appointed on or after the effective date of this   Act. A member appointed before the effective date of this Act may   continue to serve until the expiration of the member's term.          SECTION 56.  Sections 651.253 and 651.259, Occupations Code,   as amended by this Act, apply only to a person who applies for a   funeral director's license or embalmer's license on or after the   effective date of this Act. A person who applies for a funeral   director's license or embalmer's license before the effective date   of this Act is governed by the law in effect on the date the person   applied for that license, and the former law is continued in effect   for that purpose.          SECTION 57.  Section 651.2661, Occupations Code, as   transferred, redesignated, and amended by this Act, applies only to   a person who applies for reinstatement of a license on or after the   effective date of this Act. A person who applies for renewal of a   license under former Section 651.165, Occupations Code, before the   effective date of this Act is governed by the law in effect on the   date the person applied for renewal, and the former law is continued   in effect for that purpose.          SECTION 58.  Section 651.2662, Occupations Code, as   transferred, redesignated, and amended by this Act, applies only to   a person who applies for reinstatement of a license on or after the   effective date of this Act. A person who applies for renewal of a   license under former Section 651.1655, Occupations Code, before the   effective date of this Act is governed by the law in effect on the   date the person applied for renewal, and the former law is continued   in effect for that purpose.          SECTION 59.  Section 651.267, Occupations Code, as amended   by this Act, applies only to a person who applies for reissuance of   a license on or after the effective date of this Act. A person who   applies for reissuance of a license before the effective date of   this Act is governed by the law in effect on the date the person   applied for reissuance, and the former law is continued in effect   for that purpose.          SECTION 60.  Section 651.502, Occupations Code, as amended   by this Act, applies only to a person who applies for the issuance   or renewal of a license on or after the effective date of this Act. A   person who applies for the issuance or renewal of a license before   the effective date of this Act is governed by the law in effect on   the date the person applied, and the former law is continued in   effect for that purpose.          SECTION 61.  Section 651.5029, Occupations Code, as added by   this Act, applies only to a violation that occurs on or after the   effective date of this Act. A violation that occurs before the   effective date of this Act is governed by the law in effect on the   date the violation occurred, and the former law is continued in   effect for that purpose.          SECTION 62.  Section 651.505, Occupations Code, as amended   by this Act, applies only to a person placed on probation on or   after the effective date of this Act. A person placed on probation   before the effective date of this Act is governed by the law in   effect on the date the person was placed on probation, and the   former law is continued in effect for that purpose.          SECTION 63.  Section 651.506, Occupations Code, as amended   by this Act, and Section 651.50601, Occupations Code, as   redesignated and amended by this Act, apply only to a proceeding   initiated on or after the effective date of this Act. A proceeding   initiated before the effective date of this Act is governed by the   law in effect on the date the proceeding was initiated, and the   former law is continued in effect for that purpose.          SECTION 64.  This Act takes effect September 1, 2017.