1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *sb0957* |
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6 | 6 | | |
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7 | 7 | | SENATE BILL 957 |
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8 | 8 | | J2 5lr3084 |
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9 | 9 | | CF 5lr2926 |
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10 | 10 | | By: Senator Waldstreicher |
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11 | 11 | | Introduced and read first time: January 28, 2025 |
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12 | 12 | | Assigned to: Finance |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Morticians and Funeral Directors – Not–For–Profit Funeral Establishments 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of altering the definition of “corporation” for the purpose of provisions 3 |
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21 | 21 | | relating to the provision of mortuary sciences and the operation of a funeral 4 |
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22 | 22 | | establishment to include a not–for–profit organization that is exempt from taxation 5 |
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23 | 23 | | under a certain provision of federal law; authorizing the State Board of Morticians 6 |
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24 | 24 | | and Funeral Directors to issue and renew a license to practice funeral direction to a 7 |
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25 | 25 | | certain not–for–profit organization; and generally relating to not–for–profit funeral 8 |
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26 | 26 | | establishments. 9 |
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27 | 27 | | |
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28 | 28 | | BY repealing and reenacting, without amendments, 10 |
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29 | 29 | | Article – Health Occupations 11 |
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30 | 30 | | Section 7–101(a) 12 |
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31 | 31 | | Annotated Code of Maryland 13 |
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32 | 32 | | (2021 Replacement Volume and 2024 Supplement) 14 |
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33 | 33 | | |
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34 | 34 | | BY repealing and reenacting, with amendments, 15 |
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35 | 35 | | Article – Health Occupations 16 |
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36 | 36 | | Section 7–101(f), 7–309, and 7–310 17 |
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37 | 37 | | Annotated Code of Maryland 18 |
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38 | 38 | | (2021 Replacement Volume and 2024 Supplement) 19 |
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39 | 39 | | |
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40 | 40 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 |
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41 | 41 | | That the Laws of Maryland read as follows: 21 |
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42 | 42 | | |
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43 | 43 | | Article – Health Occupations 22 |
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44 | 44 | | |
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45 | 45 | | 7–101. 23 |
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46 | 46 | | |
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47 | 47 | | (a) In this title the following words have the meanings indicated. 24 |
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48 | 48 | | 2 SENATE BILL 957 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | (f) (1) “Corporation” means [a]: 1 |
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52 | 52 | | |
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53 | 53 | | (I) A mortuary science business whose articles of incorporation are 2 |
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54 | 54 | | in good standing with the Maryland State Department of Assessments and Taxation, or its 3 |
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55 | 55 | | successor, the initial business for which the license is issued must have been incorporated 4 |
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56 | 56 | | on or before June 1, 1945 and have “Incorporated”, “Inc.”, or “Corporation” in its name; OR 5 |
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57 | 57 | | |
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58 | 58 | | (II) A NOT–FOR–PROFIT ORGANIZATION THAT IS EXEMPT FROM 6 |
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59 | 59 | | TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE. 7 |
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60 | 60 | | |
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61 | 61 | | (2) “Corporation” does not include, for purposes of issuing a corporation 8 |
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62 | 62 | | license, a “professional association” (P.A.) or a “professional corporation” (P.C.). 9 |
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63 | 63 | | |
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64 | 64 | | 7–309. 10 |
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65 | 65 | | |
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66 | 66 | | (a) Except as otherwise provided by law, a corporation may not operate a 11 |
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67 | 67 | | mortuary science business and the Board may not issue a license to or list any corporation 12 |
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68 | 68 | | as licensed to operate a mortuary science business. 13 |
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69 | 69 | | |
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70 | 70 | | (B) THE BOARD MAY ISSUE A LIC ENSE TO A CORPORATIO N DEFINED IN § 14 |
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71 | 71 | | 7–101(F)(1)(II) OF THIS TITLE THAT : 15 |
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72 | 72 | | |
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73 | 73 | | (1) HAS THE STATED PURPOS E OF PRACTICING FUNE RAL DIRECTION ; 16 |
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74 | 74 | | |
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75 | 75 | | (2) SUBMITS AN APPLICATIO N ON A FORM REQUIR ED BY THE BOARD; 17 |
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76 | 76 | | AND 18 |
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77 | 77 | | |
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78 | 78 | | (3) PAYS A FEE SET BY THE BOARD. 19 |
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79 | 79 | | |
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80 | 80 | | [(b)] (C) The Board may renew only the license of a corporation that: 20 |
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81 | 81 | | |
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82 | 82 | | (1) (I) 1. On June 1, 1945, held a license issued by this State; AND 21 |
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83 | 83 | | |
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84 | 84 | | [(2)] 2. Has been renewed continuously since that date; OR 22 |
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85 | 85 | | |
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86 | 86 | | (II) WAS ISSUED A LICENSE UNDER SUBSECTION (B) OF THIS 23 |
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87 | 87 | | SECTION; 24 |
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88 | 88 | | |
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89 | 89 | | [(3)] (2) Submits an application on a form required by the Board; and 25 |
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90 | 90 | | |
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91 | 91 | | [(4)] (3) Pays a fee set by the Board. 26 |
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92 | 92 | | |
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93 | 93 | | [(c)] (D) Each application for renewal made by a corporation shall state the 27 |
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94 | 94 | | name and address of each officer and director of the corporation. 28 |
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95 | 95 | | SENATE BILL 957 3 |
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96 | 96 | | |
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97 | 97 | | |
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98 | 98 | | [(d)] (E) While a corporation license is effective, it authorizes a corporation to 1 |
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99 | 99 | | operate a mortuary science business only if any practice of mortuary science that is 2 |
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100 | 100 | | conducted for the corporation is practiced by a licensed individual. 3 |
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101 | 101 | | |
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102 | 102 | | [(e)] (F) A corporation may not operate a branch funeral establishment unless 4 |
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103 | 103 | | [the]: 5 |
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104 | 104 | | |
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105 | 105 | | (1) THE branch funeral establishment was in operation on or before 6 |
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106 | 106 | | October 1, 1964; OR 7 |
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107 | 107 | | |
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108 | 108 | | (2) THE CORPORATION WAS I SSUED A LICENSE UNDE R SUBSECTION 8 |
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109 | 109 | | (B) OF THIS SECTION . 9 |
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110 | 110 | | |
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111 | 111 | | [(f)] (G) If a corporation is sold, declares bankruptcy, or ceases to operate, 10 |
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112 | 112 | | written notice must be submitted to: 11 |
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113 | 113 | | |
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114 | 114 | | (1) The Board, within 2 weeks of the occurrence, detailing the changes and 12 |
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115 | 115 | | the arrangements for carrying out the pre–need contracts and disbursement of the money 13 |
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116 | 116 | | held in escrow; and 14 |
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117 | 117 | | |
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118 | 118 | | (2) The holders of pre–need contracts advising them of their options under 15 |
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119 | 119 | | Maryland law. 16 |
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120 | 120 | | |
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121 | 121 | | 7–310. 17 |
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122 | 122 | | |
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123 | 123 | | (a) (1) A funeral establishment shall be licensed by the Board before the 18 |
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124 | 124 | | establishment may be used for the preparation of the remains, viewing, or conducting of 19 |
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125 | 125 | | services. 20 |
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126 | 126 | | |
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127 | 127 | | (2) The licensee may be restricted to operations as determined by the 21 |
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128 | 128 | | Board. 22 |
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129 | 129 | | |
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130 | 130 | | (b) (1) To apply for a funeral establishment license, an applicant shall: 23 |
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131 | 131 | | |
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132 | 132 | | (i) Submit an application to the Board on the form that the Board 24 |
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133 | 133 | | requires; and 25 |
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134 | 134 | | |
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135 | 135 | | (ii) Pay to the Board: 26 |
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136 | 136 | | |
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137 | 137 | | 1. An application fee set by the Board; and 27 |
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138 | 138 | | |
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139 | 139 | | 2. The fee established under § 7–4A–05(a) of this title. 28 |
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140 | 140 | | |
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141 | 141 | | (2) An application for a funeral establishment license shall be signed by a 29 |
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142 | 142 | | licensed individual who [is]: 30 |
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143 | 143 | | 4 SENATE BILL 957 |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | (I) IS not an apprentice but is the owner or co–owner of the 1 |
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147 | 147 | | establishment to be licensed; OR 2 |
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148 | 148 | | |
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149 | 149 | | (II) CONDUCTS THE PRACTICE OF MORTUARY SCIENCE OR 3 |
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150 | 150 | | FUNERAL DIRECTION FO R A NOT–FOR–PROFIT ORGANIZATION LICENSED UNDER § 4 |
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151 | 151 | | 7–309(B) OF THIS SUBTITLE . 5 |
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152 | 152 | | |
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153 | 153 | | (c) The Board shall issue a funeral establishment license to a funeral 6 |
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154 | 154 | | establishment that: 7 |
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155 | 155 | | |
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156 | 156 | | (1) Has complied with all applicable State and local laws; and 8 |
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157 | 157 | | |
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158 | 158 | | (2) Will be: 9 |
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159 | 159 | | |
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160 | 160 | | (i) Owned and operated in accordance with this title by [an]: 10 |
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161 | 161 | | |
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162 | 162 | | 1. AN individual who is or a group of individuals in which 11 |
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163 | 163 | | each individual is: 12 |
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164 | 164 | | |
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165 | 165 | | [1.] A. A licensed mortician; 13 |
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166 | 166 | | |
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167 | 167 | | [2.] B. A licensed funeral director; or 14 |
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168 | 168 | | |
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169 | 169 | | [3.] C. A holder of a surviving spouse license; OR 15 |
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170 | 170 | | |
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171 | 171 | | 2. A NOT–FOR–PROFIT ORGANIZATION THAT EMPLOYS : 16 |
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172 | 172 | | |
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173 | 173 | | A. A LICENSED MORTICIAN ; 17 |
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174 | 174 | | |
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175 | 175 | | B. A LICENSED FUNERAL DIR ECTOR; OR 18 |
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176 | 176 | | |
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177 | 177 | | C. A HOLDER OF A SURVIVIN G SPOUSE LICENSE; 19 |
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178 | 178 | | |
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179 | 179 | | (ii) Owned and operated in accordance with this title by a holder of 20 |
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180 | 180 | | a corporation license; or 21 |
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181 | 181 | | |
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182 | 182 | | (iii) Operated in accordance with this title by a holder of an executor 22 |
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183 | 183 | | license. 23 |
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184 | 184 | | |
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185 | 185 | | (d) Signs and advertisements of a funeral establishment shall display the name 24 |
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186 | 186 | | that appears on the establishment license. 25 |
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187 | 187 | | |
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188 | 188 | | (e) (1) Each licensed funeral establishment shall have a supervising 26 |
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189 | 189 | | mortician. 27 |
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190 | 190 | | SENATE BILL 957 5 |
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191 | 191 | | |
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192 | 192 | | |
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193 | 193 | | (2) A licensed funeral establishment shall designate a licensed mortician 1 |
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194 | 194 | | whose license is in good standing with the Board to be the supervising mortician for the 2 |
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195 | 195 | | funeral establishment. 3 |
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196 | 196 | | |
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197 | 197 | | (3) A licensed mortician designated to be the supervising mortician for a 4 |
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198 | 198 | | funeral establishment shall complete the registration required by the Board. 5 |
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199 | 199 | | |
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200 | 200 | | (4) A mortician whose license is not in good standing in the State or any 6 |
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201 | 201 | | other jurisdiction may not be a supervising mortician. 7 |
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202 | 202 | | |
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203 | 203 | | (5) The supervising mortician for a funeral establishment shall be: 8 |
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204 | 204 | | |
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205 | 205 | | (i) Held responsible for all activities performed on behalf of the 9 |
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206 | 206 | | funeral establishment with the knowledge or at the direction of the supervising mortician; 10 |
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207 | 207 | | and 11 |
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208 | 208 | | |
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209 | 209 | | (ii) Except as provided in paragraph (6) of this subsection, limited to 12 |
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210 | 210 | | supervising: 13 |
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211 | 211 | | |
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212 | 212 | | 1. One funeral establishment with an embalming facility; 14 |
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213 | 213 | | and 15 |
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214 | 214 | | |
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215 | 215 | | 2. No more than three funeral establishments total that are 16 |
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216 | 216 | | within close enough proximity to each other to allow for oversight of each funeral 17 |
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217 | 217 | | establishment. 18 |
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218 | 218 | | |
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219 | 219 | | (6) The limits on the number of funeral establishments a supervising 19 |
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220 | 220 | | mortician may supervise as provided for in paragraph (5)(ii) of this subsection do not apply 20 |
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221 | 221 | | if a funeral establishment prepares for the disposition of less than 75 bodies in a calendar 21 |
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222 | 222 | | year. 22 |
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223 | 223 | | |
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224 | 224 | | (7) If a supervising mortician for a funeral establishment relinquishes the 23 |
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225 | 225 | | supervising mortician’s responsibility under paragraph (5)(i) of this subsection for any 24 |
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226 | 226 | | reason, the funeral establishment shall name an interim supervising mortician who shall 25 |
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227 | 227 | | be held responsible for all activities performed on behalf of the funeral establishment, with 26 |
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228 | 228 | | the knowledge or at the direction of the interim supervising mortician, until a new 27 |
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229 | 229 | | supervising mortician for the funeral establishment registers with the Board. 28 |
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230 | 230 | | |
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231 | 231 | | (f) A funeral establishment that uses a central preparation room at another 29 |
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232 | 232 | | funeral establishment is not required to have its own preparation room or holding room. 30 |
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233 | 233 | | |
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234 | 234 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31 |
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235 | 235 | | October 1, 2025. 32 |
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236 | 236 | | |
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