EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0957*
SENATE BILL 957
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By: Senator Waldstreicher
Introduced and read first time: January 28, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Morticians and Funeral Directors – Not–For–Profit Funeral Establishments 2
FOR the purpose of altering the definition of “corporation” for the purpose of provisions 3
relating to the provision of mortuary sciences and the operation of a funeral 4
establishment to include a not–for–profit organization that is exempt from taxation 5
under a certain provision of federal law; authorizing the State Board of Morticians 6
and Funeral Directors to issue and renew a license to practice funeral direction to a 7
certain not–for–profit organization; and generally relating to not–for–profit funeral 8
establishments. 9
BY repealing and reenacting, without amendments, 10
Article – Health Occupations 11
Section 7–101(a) 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Health Occupations 16
Section 7–101(f), 7–309, and 7–310 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Health Occupations 22
7–101. 23
(a) In this title the following words have the meanings indicated. 24
2 SENATE BILL 957
(f) (1) “Corporation” means [a]: 1
(I) A mortuary science business whose articles of incorporation are 2
in good standing with the Maryland State Department of Assessments and Taxation, or its 3
successor, the initial business for which the license is issued must have been incorporated 4
on or before June 1, 1945 and have “Incorporated”, “Inc.”, or “Corporation” in its name; OR 5
(II) A NOT–FOR–PROFIT ORGANIZATION THAT IS EXEMPT FROM 6
TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE. 7
(2) “Corporation” does not include, for purposes of issuing a corporation 8
license, a “professional association” (P.A.) or a “professional corporation” (P.C.). 9
7–309. 10
(a) Except as otherwise provided by law, a corporation may not operate a 11
mortuary science business and the Board may not issue a license to or list any corporation 12
as licensed to operate a mortuary science business. 13
(B) THE BOARD MAY ISSUE A LIC ENSE TO A CORPORATIO N DEFINED IN § 14
7–101(F)(1)(II) OF THIS TITLE THAT : 15
(1) HAS THE STATED PURPOS E OF PRACTICING FUNE RAL DIRECTION ; 16
(2) SUBMITS AN APPLICATIO N ON A FORM REQUIR ED BY THE BOARD; 17
AND 18
(3) PAYS A FEE SET BY THE BOARD. 19
[(b)] (C) The Board may renew only the license of a corporation that: 20
(1) (I) 1. On June 1, 1945, held a license issued by this State; AND 21
[(2)] 2. Has been renewed continuously since that date; OR 22
(II) WAS ISSUED A LICENSE UNDER SUBSECTION (B) OF THIS 23
SECTION; 24
[(3)] (2) Submits an application on a form required by the Board; and 25
[(4)] (3) Pays a fee set by the Board. 26
[(c)] (D) Each application for renewal made by a corporation shall state the 27
name and address of each officer and director of the corporation. 28
SENATE BILL 957 3
[(d)] (E) While a corporation license is effective, it authorizes a corporation to 1
operate a mortuary science business only if any practice of mortuary science that is 2
conducted for the corporation is practiced by a licensed individual. 3
[(e)] (F) A corporation may not operate a branch funeral establishment unless 4
[the]: 5
(1) THE branch funeral establishment was in operation on or before 6
October 1, 1964; OR 7
(2) THE CORPORATION WAS I SSUED A LICENSE UNDE R SUBSECTION 8
(B) OF THIS SECTION . 9
[(f)] (G) If a corporation is sold, declares bankruptcy, or ceases to operate, 10
written notice must be submitted to: 11
(1) The Board, within 2 weeks of the occurrence, detailing the changes and 12
the arrangements for carrying out the pre–need contracts and disbursement of the money 13
held in escrow; and 14
(2) The holders of pre–need contracts advising them of their options under 15
Maryland law. 16
7–310. 17
(a) (1) A funeral establishment shall be licensed by the Board before the 18
establishment may be used for the preparation of the remains, viewing, or conducting of 19
services. 20
(2) The licensee may be restricted to operations as determined by the 21
Board. 22
(b) (1) To apply for a funeral establishment license, an applicant shall: 23
(i) Submit an application to the Board on the form that the Board 24
requires; and 25
(ii) Pay to the Board: 26
1. An application fee set by the Board; and 27
2. The fee established under § 7–4A–05(a) of this title. 28
(2) An application for a funeral establishment license shall be signed by a 29
licensed individual who [is]: 30
4 SENATE BILL 957
(I) IS not an apprentice but is the owner or co–owner of the 1
establishment to be licensed; OR 2
(II) CONDUCTS THE PRACTICE OF MORTUARY SCIENCE OR 3
FUNERAL DIRECTION FO R A NOT–FOR–PROFIT ORGANIZATION LICENSED UNDER § 4
7–309(B) OF THIS SUBTITLE . 5
(c) The Board shall issue a funeral establishment license to a funeral 6
establishment that: 7
(1) Has complied with all applicable State and local laws; and 8
(2) Will be: 9
(i) Owned and operated in accordance with this title by [an]: 10
1. AN individual who is or a group of individuals in which 11
each individual is: 12
[1.] A. A licensed mortician; 13
[2.] B. A licensed funeral director; or 14
[3.] C. A holder of a surviving spouse license; OR 15
2. A NOT–FOR–PROFIT ORGANIZATION THAT EMPLOYS : 16
A. A LICENSED MORTICIAN ; 17
B. A LICENSED FUNERAL DIR ECTOR; OR 18
C. A HOLDER OF A SURVIVIN G SPOUSE LICENSE; 19
(ii) Owned and operated in accordance with this title by a holder of 20
a corporation license; or 21
(iii) Operated in accordance with this title by a holder of an executor 22
license. 23
(d) Signs and advertisements of a funeral establishment shall display the name 24
that appears on the establishment license. 25
(e) (1) Each licensed funeral establishment shall have a supervising 26
mortician. 27
SENATE BILL 957 5
(2) A licensed funeral establishment shall designate a licensed mortician 1
whose license is in good standing with the Board to be the supervising mortician for the 2
funeral establishment. 3
(3) A licensed mortician designated to be the supervising mortician for a 4
funeral establishment shall complete the registration required by the Board. 5
(4) A mortician whose license is not in good standing in the State or any 6
other jurisdiction may not be a supervising mortician. 7
(5) The supervising mortician for a funeral establishment shall be: 8
(i) Held responsible for all activities performed on behalf of the 9
funeral establishment with the knowledge or at the direction of the supervising mortician; 10
and 11
(ii) Except as provided in paragraph (6) of this subsection, limited to 12
supervising: 13
1. One funeral establishment with an embalming facility; 14
and 15
2. No more than three funeral establishments total that are 16
within close enough proximity to each other to allow for oversight of each funeral 17
establishment. 18
(6) The limits on the number of funeral establishments a supervising 19
mortician may supervise as provided for in paragraph (5)(ii) of this subsection do not apply 20
if a funeral establishment prepares for the disposition of less than 75 bodies in a calendar 21
year. 22
(7) If a supervising mortician for a funeral establishment relinquishes the 23
supervising mortician’s responsibility under paragraph (5)(i) of this subsection for any 24
reason, the funeral establishment shall name an interim supervising mortician who shall 25
be held responsible for all activities performed on behalf of the funeral establishment, with 26
the knowledge or at the direction of the interim supervising mortician, until a new 27
supervising mortician for the funeral establishment registers with the Board. 28
(f) A funeral establishment that uses a central preparation room at another 29
funeral establishment is not required to have its own preparation room or holding room. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2025. 32