Texas 2017 85th Regular

Texas House Bill HB1292 Introduced / Bill

Filed 01/25/2017

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                    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.