2025S0241-1 03/13/25 By: Bell of Kaufman H.B. No. 5278 A BILL TO BE ENTITLED AN ACT relating to the licensing and regulation of persons who provide services in relation to the deceased; creating a criminal offense and increasing the punishment for an existing criminal offense; expanding the application of a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 691.001, Health and Safety Code, is amended to read as follows: Sec. 691.001. DEFINITIONS. In this chapter: (1) "Advisory committee" means the State Anatomical Advisory Committee. (1-a) "Advancement of medical or forensic science" means activities conducted within accredited medical, dental, or forensic science programs aimed at training individuals under the supervision of professionals licensed in their respective fields in educational environments where knowledge, skills, and competencies are imparted in accordance with accrediting standards, and research projects. Such research projects must be designed to expand knowledge within the fields and require formal approval by a recognized institutional review board or an equivalent ethical oversight body. (1-b) "Authorized recipient" means a person or facility located in this state that in accordance with state law and the rules adopted under this chapter obtains a whole body, body segment, part, or non-transplant anatomical part from a human body acquisition service or the commission ["Anatomical facility" means a facility in this state inspected and approved by the commission under Section 691.034 that does not operate as a willed body program or a non-transplant anatomical donation organization]. (2) "Body" means the intact corporeal remains of a human [corpse]. (2-a) "Body segment" means a portion of a whole body detached for purposes of study, evaluation, education, or research and composed of contiguous mixed tissues with relationships altered only at the segment boundaries. (3) "Anatomical specimen" means a part of a human corpse used for an educational or research purpose. (4) "Commission" means the Texas Funeral Service Commission. (4-a) "Human body acquisition service" means a person or facility that solicits, retrieves, performs donor selection on, preserves, transports, allocates, distributes, acquires, processes, stores, or arranges storage for whole bodies, body segments, parts, or non-transplant anatomical parts, solely for educational or research purposes. (5) "Non-transplant anatomical donation organization" means a person or facility required to be licensed that solicits, retrieves, performs donor selection on, preserves, transports, allocates, distributes, acquires, processes, stores, or arranges storage for whole bodies, body segments, parts, or non-transplant anatomical parts, solely for educational or research purposes [accredited to engage in the recovery, receipt, screening, testing, processing, storage, or distribution of tissue or human remains for any purpose other than transplantation into a living individual in this state]. (6) "Willed body program" means a program operated at an institution of higher education in this state that is required to be licensed by the commission and allows a living individual to donate the individual's body or anatomical specimen for educational or research purposes. SECTION 2. Section 691.002(b), Health and Safety Code, is amended to read as follows: (b) The advisory committee is composed of seven members appointed by the commission [as follows: [(1) two members who represent institutions of higher education that operate willed body programs; [(2) two members who represent non-transplant anatomical donation organizations; [(3) two members who represent anatomical facilities; and [(4) one public member]. SECTION 3. Subchapter A, Chapter 691, Health and Safety Code, is amended by adding Sections 691.003 and 691.004 to read as follows: Sec. 691.003. RECORDS. In addition to the records required to be maintained by the commission under Sections 691.011 and 691.031, the commission shall maintain a secure electronic database, accessible to persons designated by the person giving informed consent under Section 691.0235, that contains the informed consent documentation provided to the commission by the anatomical facility, non-transplant anatomical donation organization, willed body program, and authorized recipient, along with a unique identifier for every whole body, body segment, part, or non-transplant anatomical part tied to the donor. Each human body acquisition service facility, non-transplant anatomical donation organization, willed body program, and authorized recipient shall tag each whole body, body segment, part, or non-transplant anatomical part with the unique identifier prior to transfer to the authorized recipient, who shall update the database with the current location of the whole body, body segment, part, or non-transplant anatomical part until final disposition. Sec. 691.004. ENFORCEMENT AND CRIMINAL PENALTY. (a) Each human body acquisition service facility, non-transplant anatomical donation organization, willed body program, and authorized recipient is subject to regulation, including investigations and enforcement, under this chapter. (b) The commission, or the commission's executive director, may, on sufficient cause as determined by the commission, immediately revoke authorization for any human body acquisition service or authorized recipient to operate in this state to ensure compliance with this chapter or commission rule. (c) A person who knowingly violates this chapter commits an offense. (d) An offense under this section is a state jail felony. SECTION 4. Sections 691.010(b) and (c), Health and Safety Code, are amended to read as follows: (b) The commission by rule shall establish methods by which service recipients can be notified of the name, mailing address, and telephone number of the commission for the purpose of directing complaints to the commission. The commission may provide for that notification by including the information on each written contract relating to bodies willed or donated to an entity licensed or regulated by the commission or otherwise authorized by the commission to receive bodies. (c) The commission shall keep an information file about each complaint filed with the commission relating to its functions under this chapter. If a written complaint is filed with the commission relating to a person licensed or [or an entity] regulated by the commission under this chapter, the commission shall periodically notify the parties to the complaint of the status of the complaint until final disposition unless notice would jeopardize an undercover investigation. SECTION 5. Section 691.011, Health and Safety Code, is amended to read as follows: Sec. 691.011. RECORDS. The commission shall keep identification records [of each body donated to the commission and] of each body or anatomical specimen for which [distributed by] the commission authorizes distribution. SECTION 6. Section 691.012, Health and Safety Code, is amended to read as follows: Sec. 691.012. FEES. [(a)] The commission by rule may set and collect fees in amounts reasonable and necessary to cover the cost of administering this chapter, including fees for: (1) authorizing the receipt and distribution of [receiving and distributing] bodies and anatomical specimens; (2) conducting inspections and other verification activities authorized under Section 691.034; and (3) licensing [registering] willed body programs, authorized recipients, anatomical facilities, and non-transplant anatomical donation organizations. [(b) A non-transplant anatomical donation organization is exempt from a fee described by Subsection (a)(1).] SECTION 7. Section 691.022, Health and Safety Code, is amended to read as follows: Sec. 691.022. GENERAL DUTIES. (a) The commission shall authorize the distribution of [distribute] bodies and anatomical specimens to persons authorized to receive a body or specimen under this chapter or Chapter 692A. [This subsection does not apply to a body or specimen donated to a registered non-transplant anatomical donation organization.] (b) The commission shall adopt rules to: (1) prohibit a licensed human body acquisition service, authorized recipient, willed body program, or non-transplant anatomical donation organization from accepting any donation of a body or anatomical specimen, including a direct donation, unless the commission authorizes the facility to receive the donation; and (2) ensure that each body and anatomical specimen is treated with respect while in the custody of the [commission or] person authorized to receive the body or specimen. (c) The commission shall adopt rules, establish procedures, and prescribe forms necessary to administer and enforce this chapter, including rules establishing licensing [registration] and inspection requirements and procedures. The commission may issue a reprimand, assess an administrative penalty, impose other penalties, or revoke, suspend, or probate a license [registration or other authorization] for a violation of this chapter or a commission rule adopted under this chapter, including a violation related to an inspection conducted under Section 691.034, in the manner provided by Chapter 651, Occupations Code. SECTION 8. The heading to Section 691.023, Health and Safety Code, is amended to read as follows: Sec. 691.023. DUTY REGARDING [TO DELIVER] CERTAIN BODIES [TO COMMISSION]. SECTION 9. Section 691.023(a), Health and Safety Code, is amended to read as follows: (a) An officer, employee, or representative of the state, of a political subdivision, or of an institution having charge or control of a body not claimed for burial or a body required to be buried at public expense shall: (1) notify the commission or the commission's representative of the body's existence when the body comes into the person's possession, charge, or control if notified in writing to do so by the commission or the commission's representative; and (2) deliver the body in accordance with the direction of the commission[; and [(3) allow the commission, the commission's representative, or a physician designated by the commission who complies with this chapter to remove the body to be used for the advancement of medical or forensic science]. SECTION 10. Subchapter B, Chapter 691, Health and Safety Code, is amended by adding Section 691.0235 to read as follows: Sec. 691.0235. PERSONS AUTHORIZED TO DONATE BODY FOR ADVANCEMENT OF MEDICAL OR FORENSIC SCIENCE. (a) Notwithstanding any other provision of this chapter, but subject to Subsections (b) and (c), a person is prohibited from donating a body not claimed for burial or a body required to be buried at public expense to a willed body program, a non-transplant anatomical donation organization, or another donee licensed by the commission for use of the body in the advancement of medical or forensic science. (b) A donor may by will or other written instrument in accordance with Section 691.028 donate the donor's body to an entity described by Subsection (a). (c) A person who may claim a decedent's body for burial under Section 691.024 may provide informed consent for the body to be donated to an entity described by Subsection (a). (d) The commission shall adopt rules necessary to implement this section. SECTION 11. Section 691.025(d), Health and Safety Code, is amended to read as follows: (d) A relative of the deceased may claim the body within 60 days after the body has been delivered to an institution or other entity licensed under this chapter and authorized to receive the body. The body shall be released without charge. SECTION 12. Sections 691.028(a) and (b), Health and Safety Code, are amended to read as follows: (a) An adult living in this state who is of sound mind may donate the adult's body by will or other written instrument to the commission, a willed body program [of a medical or dental school], a non-transplant anatomical donation organization, or another donee in this state as authorized by the commission to be used for the advancement of medical or forensic science. A donor may not donate the donor's body to an entity located outside of this state unless the commission in writing authorizes the donation. (b) To be effective, the donor must provide informed consent by signing a written instrument on a form prescribed by the commission in the presence of two adult witnesses [the will or other written instrument and it must be witnessed by two adults]. The donor must [is not required to] use the commission's [a particular] form [or particular words] in making the donation. The written[, but the will or other] instrument must clearly convey: (1) the donor's intent; and (2) the donor's acknowledgment that the donor was informed about: (A) the consequences of the donation before providing consent; (B) the use the donee plans for the donated body parts, which must comply with this chapter and commission rules; and (C) if applicable, any body part and the condition in which the body part will be returned to the person designated by the donor. SECTION 13. Sections 691.030(a), (b), and (c), Health and Safety Code, are amended to read as follows: (a) The commission [or the commission's representative] shall authorize the distribution or redistribution of [distribute bodies donated to it and may redistribute] bodies donated to persons licensed [medical or dental schools or other donees authorized] by the commission to: (1) willed body programs of schools and colleges [of chiropractic, osteopathy, medicine, or dentistry] incorporated in this state; (2) [forensic science programs; [(3) search and rescue organizations or recovery teams that are recognized by the commission, are exempt from federal taxation under Section 501(c)(3), Internal Revenue Code of 1986, and use human remains detection canines with the authorization of a local or county law enforcement agency; [(4)] physicians licensed to practice in this state; (3) [(5)] anatomical facilities; and (4) authorized recipients [(6) other persons as provided by this section]. (b) In authorizing [making] the distribution, the commission shall give first priority to the schools and colleges of medicine in this state and second priority to schools and colleges that need bodies for lectures and demonstrations. (c) If the commission has remaining bodies, the commission [or the commission's representative] shall authorize the distribution or redistribution of [distribute or redistribute] those bodies to the schools and colleges proportionately and equitably according to the number of students in each school or college receiving instruction or demonstration in normal or morbid anatomy and operative surgery. The dean of each school or college shall certify that number to the commission when required by the commission. SECTION 14. Section 691.031, Health and Safety Code, is amended by adding Subsection (a-1) to read as follows: (a-1) In the rules the commission adopts under Subsection (a), the commission shall include enforcement provisions to ensure that the documentation and labeling requirements of this section are satisfied for each body or anatomical specimen received or distributed under this chapter. SECTION 15. Section 691.033, Health and Safety Code, is amended by adding Subsections (e) and (f) to read as follows: (e) Only a licensed willed body program, non-transplant anatomical donation organization, authorized recipient, or human body acquisition service is permitted to effectuate the final disposition of a body distributed under this chapter, exclusively by a commission-licensed, flame-based cremation facility in this state. (f) A willed body program, non-transplant anatomical donation organization, authorized recipient, or human body acquisition service shall return an anatomical specimen after use to the person designated by the donor. SECTION 16. The heading to Section 691.034, Health and Safety Code, is amended to read as follows: Sec. 691.034. LICENSURE AND REGULATION [AND REGISTRATION] OF PERSONS AND INSTITUTIONS USING BODIES AND ANATOMICAL SPECIMENS. SECTION 17. Sections 691.034(a), (a-2), (a-3), (b), (c), (d), and (e), Health and Safety Code, are amended to read as follows: (a) A willed body program, human body acquisition service, authorized recipient, or non-transplant anatomical donation organization may not operate in this state unless the program or organization is licensed by [registers with] the commission in the form and manner prescribed by the commission. (a-2) The commission shall license [inspect and may approve] willed body programs, non-transplant anatomical donation organizations, and anatomical facilities for the receipt and use of bodies and anatomical specimens under this chapter. The commission shall inspect willed body programs, non-transplant anatomical donation organizations, and anatomical facilities at least once every three years. (a-3) The commission shall establish a process to periodically verify a non-transplant anatomical donation organization's compliance with state laws and regulations [the Standards for Non-Transplant Anatomical Donation published by the American Association of Tissue Banks. The process: [(1) may authorize the commission to inspect a non-transplant anatomical donation organization; and [(2) may not: [(A) be duplicative of the accreditation process described by Subsection (a-1); or [(B) occur more frequently than once every five years]. (b) The commission may investigate or inspect a willed body program, non-transplant anatomical donation organization, human body acquisition service, authorized recipient [anatomical facility], or other person if the commission has reason to believe that the program, organization, service, recipient [facility], or person has improperly used a body or anatomical specimen. (c) The commission shall [may] suspend or revoke a willed body program's, non-transplant anatomical donation organization's, human body acquisition service's, authorized recipient's [anatomical facility's], or other person's license [registration] or other authorization to receive and use or dissect bodies or anatomical specimens if the commission determines that the program, organization, service, recipient [facility], or person has improperly used a body or anatomical specimen. (d) A willed body program, non-transplant anatomical donation organization, human body acquisition service, authorized recipient [anatomical facility], or other person is entitled to a hearing before the commission or a hearing examiner appointed by the commission before the commission may revoke the program's, organization's, service's, recipient's [facility's], or person's license [registration] or other authorization to receive and use or dissect bodies or anatomical specimens. The commission shall make all final decisions to suspend or revoke a license or [an] authorization. (e) A licensed [registered] non-transplant anatomical donation organization must inform the commission within the time prescribed by commission rule if the organization loses its accreditation with the American Association of Tissue Banks. SECTION 18. Section 691.035(b), Health and Safety Code, is amended to read as follows: (b) An offense under this section is a Class B misdemeanor [punishable by a fine of not less than $100 or more than $500]. SECTION 19. Subchapter B, Chapter 691, Health and Safety Code, is amended by adding Section 691.036 to read as follows: Sec. 691.036. HUMAN BODY ACQUISITION SERVICE FACILITY STANDARDS. The commission shall adopt minimum standards for human body acquisition services licensed under this chapter. The standards must require a human body acquisition service facility to: (1) meet the applicable building, fire safety, and health standards imposed by this state, and, if located in a municipality, imposed by the municipality, for similar facilities; (2) be in a fixed location; (3) include a presentation room containing the facilities, equipment, and supplies required by commission rule to ensure the provision of adequate services; (4) be designed to ensure security and respectful treatment of bodies and to restrict public view of and access to bodies; (5) include other facilities as necessary to comply with the applicable sanitary codes of this state and the municipality in which the facility is located; and (6) include any other construction, health, and safety provisions the commission determines necessary to protect the public and donors. SECTION 20. Section 692A.002, Health and Safety Code, is amended by adding Subdivision (3-a) to read as follows: (3-a) "Commission" means the Texas Funeral Service Commission. SECTION 21. Chapter 692A, Health and Safety Code, is amended by adding Section 692A.0035 to read as follows: Sec. 692A.0035. LICENSE REQUIRED FOR WILLED BODY PROGRAM. A person may not receive an anatomical gift as part of a willed body program, as defined by Section 691.001, in this state unless the program is licensed by the commission. SECTION 22. Sections 692A.011(a) and (b), Health and Safety Code, are amended to read as follows: (a) An anatomical gift may be made to the following persons named in the document of gift: (1) an organ procurement organization to be used for transplantation, therapy, research, or education; (2) a hospital to be used for research; (3) subject to Subsection (d), an individual designated by the person making the anatomical gift if the individual is the recipient of the part; (4) an eye bank or tissue bank, except that use of a gift of a whole body must be coordinated through and authorized by the commission [Texas Funeral Service Commission]; (5) a forensic science program licensed by the commission at: (A) a general academic teaching institution as defined by Section 61.003, Education Code; or (B) a private or independent institution of higher education as defined by Section 61.003, Education Code; (6) [a search and rescue organization or recovery team that is recognized by the Texas Funeral Service Commission, is exempt from federal taxation under Section 501(c)(3), Internal Revenue Code of 1986, and uses human remains detection canines with the authorization of a local or county law enforcement agency; [(7)] the commission [Texas Funeral Service Commission]; or (7) [(8)] a licensed non-transplant anatomical donation organization as authorized by the commission. (b) Except for donations described by Subsections (a)(1) through (5) [(6)], the commission [Texas Funeral Service Commission] or a licensed non-transplant anatomical donation organization as authorized by the commission shall be the donee of gifts of bodies or parts of bodies made for the purpose of education or research that are subject to distribution as authorized by the commission [or organization] under Chapter 691. SECTION 23. Section 711.002, Health and Safety Code, is amended by amending Subsection (k) and adding Subsection (k-1) to read as follows: (k) Any dispute among any of the persons listed in Subsection (a) concerning their right to control the disposition, including cremation, of a decedent's remains shall be resolved by a court with jurisdiction over probate proceedings for the decedent, regardless of whether a probate proceeding has been initiated. (k-1) A cemetery organization or funeral establishment that is aware of a dispute described by Subsection (k) is [shall] not [be] liable for refusing to accept the decedent's remains, or to inter or otherwise dispose of the decedent's remains, until it receives a court order or other suitable confirmation that the dispute has been resolved or settled. A cemetery organization or funeral establishment that is unaware of a dispute described by Subsection (k) is not liable for disposing of the decedent's remains if the organization or establishment: (1) reasonably relies in good faith on the representations of a person who states in writing that the person is entitled to control the disposition of the decedent's remains; (2) disposes of the decedent's remains in accordance with the written directions of the person described by Subdivision (1); and (3) is unaware, after inquiring of the person described by Subdivision (1), of another person who is listed in a priority before the person described by Subdivision (1). SECTION 24. Section 711.008(a), Health and Safety Code, is amended to read as follows: (a) Except as provided by Subsections (b), (f), (g), (g-1), (g-2), [(g-3), (g-4),] (h), (k), and (m), an individual, corporation, partnership, firm, trust, or association may not establish or operate a cemetery, or use any land for the interment of remains, located: (1) in or within one mile of the boundaries of a municipality with a population of 5,000 to 25,000; (2) in or within two miles of the boundaries of a municipality with a population of 25,000 to 50,000; (3) in or within three miles of the boundaries of a municipality with a population of 50,000 to 100,000; (4) in or within four miles of the boundaries of a municipality with a population of 100,000 to 200,000; or (5) in or within five miles of the boundaries of a municipality with a population of at least 200,000. SECTION 25. Section 651.202, Occupations Code, is amended by adding Subsection (g) to read as follows: (g) Notwithstanding any other provision of this section, a commission employee may dismiss a complaint without further investigation under Subsection (c) if: (1) the subject matter of the complaint is a funeral service provided under a contract with a license holder and the complainant is not: (A) a party to the contract; or (B) the person entitled under Section 711.002(a), Health and Safety Code, to control the disposition of the remains of the decedent to whom the service relates; or (2) regardless of the subject matter of the complaint, the complaint is not accompanied by substantial evidence of a violation of a statute administered by the commission. SECTION 26. Subchapter I, Chapter 651, Occupations Code, is amended by adding Section 651.411 to read as follows: Sec. 651.411. SCOPE OF SERVICE INVOLVING CERTAIN ANATOMICAL GIFTS. The commission by rule may prescribe the minimum requirements for a licensed funeral establishment to provide a service in relation to an anatomical gift made under Chapter 691 or 692A, Health and Safety Code, that is not intended for transplantation, including requirements for the storage or transportation of the anatomical gift. SECTION 27. Chapter 651, Occupations Code, is amended by adding Subchapter O to read as follows: SUBCHAPTER O. CIVIL ACTION AGAINST LICENSE HOLDER Sec. 651.701. LIMITATION ON BRINGING ACTION FOR ACT OR OMISSION RELATED TO REGULATED SERVICE. (a) A person may not bring an action against a license holder to recover damages for an act or omission related to a service for which a license is required under this chapter and provided under a contract unless the person is: (1) a party to the contract; or (2) entitled under Section 711.002(a), Health and Safety Code, to control the disposition of the remains of the decedent to whom the service relates. (b) If the person who may bring an action under Subsection (a)(1) or (2) is incapacitated or otherwise unable to bring the action, the person's legal guardian may bring the action on the person's behalf. (c) Notwithstanding any other provision of law, a funeral establishment, funeral director, or embalmer licensed under the laws of this state shall be indemnified and held harmless for any preexisting condition, state of decomposition, infestation, or alteration of a deceased human body that existed prior to the time when the funeral establishment, funeral director, or embalmer took custody of the remains from a human body acquisition service facility, authorized recipient, willed body program, or non-transplant anatomical donation organization. Sec. 651.702. LIMITATION ON NONECONOMIC DAMAGES. (a) Except as provided by Subsection (b), in an action described by Section 651.701, the civil liability for noneconomic damages of the license holder, inclusive of all persons and entities for which vicarious liability theories may apply, is limited to an amount not to exceed $250,000 for each claimant, regardless of the number of defendants against whom the claim is asserted or the number of separate causes of action on which the claim is based. (b) The limitation on civil liability under Subsection (a) does not apply if the act or omission on which the claim is based constitutes gross negligence or intentional misconduct. Sec. 651.703. IMMUNITY FOR GOOD FAITH RELIANCE ON REPRESENTATIONS OF CERTAIN PERSONS. A license holder is not liable for an act or omission related to providing a service for which a license is required under this chapter if the license holder with respect to the act or omission reasonably relied in good faith on the representation of a person who: (1) conducts an inquest under Chapter 49, Code of Criminal Procedure, on the body or body part to which the service relates; or (2) is a person or institution with charge or control under Chapter 691 or 692A, Health and Safety Code, of the body or body part to which the service relates. SECTION 28. The following sections of the Health and Safety Code are repealed: (1) Sections 691.002(c), (d), (e), and (f); (2) Section 691.025(c); (3) Sections 691.034(a-1) and (f); and (4) Sections 711.008(g-3) and (g-4). SECTION 29. Section 651.702, Occupations Code, as added by this Act, is an exercise of authority under Section 66(c), Article III, Texas Constitution, and takes effect only if this Act receives a vote of three-fifths of all the members elected to each house, as provided by Subsection (e) of that section. SECTION 30. Subchapter O, Chapter 651, Occupations Code, as added by this Act, applies only to a cause of action that accrues on or after the effective date of this Act. A cause of action that accrued before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 31. As soon as practicable after the effective date of this Act, the Texas Funeral Service Commission shall adopt rules necessary to implement Chapters 691 and 692A, Health and Safety Code, and Chapter 651, Occupations Code, as amended by this Act. SECTION 32. This Act takes effect September 1, 2025.