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H.B. 130

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 2, 2007 at 1:29 PM by jeyring. --> This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 14, 2007 at 10:12 AM by rday. -->              1     

FUNERAL SERVICES LICENSING ACT

             2     
AMENDMENTS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kay L. McIff

             6     
Senate Sponsor: Jon J. Greiner

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies provisions of the Funeral Services Licensing Act regarding licensure
             11      classifications, the composition of the Board of Funeral Service, qualifications for
             12      licensure, the supervision of funeral service interns, the determination of the disposition
             13      of a deceased person, preneed funeral arrangements, including required trust accounts,
             14      and unlawful and unprofessional conduct by funeral service establishments and their
             15      employees.
             16      Highlighted Provisions:
             17          This bill:
             18          .    modifies the definition of a funeral service establishment in the Funeral Services
             19      Licensing Act to include the furnishing of services, merchandise, and products
             20      purchased under a preneed funeral arrangement;
             21          .    modifies the composition of the Board of Funeral Service by increasing the number
             22      of funeral service directors serving on the board from three to four and eliminating
             23      the owner or officer of an endowment care cemetery member;
             24          .    eliminates the license classification of preneed funeral arrangement provider by
             25      combining it with the funeral service establishment license classification;
             26          .    modifies qualifications for licensure as a funeral service director, funeral service
             27      establishment, preneed funeral arrangement sales agent, and funeral service intern


             28      and changes the current designation of "funeral service apprentice" to "funeral service intern";
             29          .    provides for the conditional continuing licensure of a funeral service establishment
             30      upon the death or termination from employment of an establishment's funeral
             31      service director;
             32          .    modifies the licensure by endorsement provisions;
             33          .    modifies the unlawful and unprofessional conduct provisions of the act;
             34          .    modifies provisions related to the right and duty to control the disposition of a
             35      deceased person by surviving relatives or other individuals;
             36          .    provides for forfeiture of the right of disposition under specified circumstances;
             37          .    provides for the resolution of disputes on the right of disposition of a decedent by a
             38      probate court upon petitioning by relatives of the decedent or a funeral director who
             39      has custody of the decedent's remains;
             40          .    provides a funeral service establishment and funeral service director with immunity
             41      from civil and criminal liability and disciplinary action in carrying out the
             42      disposition of a decedent's remains;
             43          .    modifies provisions related to preneed funeral arrangement contracts and associated
             44      trust agreements; and
             45          .    makes certain technical changes.
             46      Monies Appropriated in this Bill:
             47          None
             48      Other Special Clauses:
             49          None
             50      Utah Code Sections Affected:
             51      AMENDS:
             52          26-4-16, as last amended by Chapter 49, Laws of Utah 2003
             53          58-9-102, as enacted by Chapter 49, Laws of Utah 2003
             54          58-9-201, as enacted by Chapter 49, Laws of Utah 2003
             55          58-9-301, as enacted by Chapter 49, Laws of Utah 2003
             56          58-9-302, as enacted by Chapter 49, Laws of Utah 2003
             57          58-9-303, as enacted by Chapter 49, Laws of Utah 2003
             58          58-9-305, as enacted by Chapter 49, Laws of Utah 2003


             59          58-9-306, as enacted by Chapter 49, Laws of Utah 2003
             60          58-9-307, as enacted by Chapter 49, Laws of Utah 2003
             61          58-9-501, as enacted by Chapter 49, Laws of Utah 2003
             62          58-9-502, as enacted by Chapter 49, Laws of Utah 2003
             63          58-9-503, as enacted by Chapter 49, Laws of Utah 2003
             64          58-9-602, as enacted by Chapter 49, Laws of Utah 2003
             65          58-9-701, as enacted by Chapter 49, Laws of Utah 2003
             66          58-9-703, as enacted by Chapter 49, Laws of Utah 2003
             67          58-9-706, as enacted by Chapter 49, Laws of Utah 2003
             68          58-9-707, as enacted by Chapter 49, Laws of Utah 2003
             69      ENACTS:
             70          58-9-605, Utah Code Annotated 1953
             71          58-9-606, Utah Code Annotated 1953
             72      REPEALS AND REENACTS:
             73          58-9-603, as enacted by Chapter 49, Laws of Utah 2003
             74     
             75      Be it enacted by the Legislature of the state of Utah:
             76          Section 1. Section 26-4-16 is amended to read:
             77           26-4-16. Release of body for funeral preparations.
             78          (1) (a) Where a body is held for investigation or autopsy under [the provisions of] this
             79      chapter or for [any] a medical investigation permitted by law, the body shall, if requested by the
             80      person given priority under Section 58-9-602 , be released for funeral preparations no later than
             81      24 hours after the arrival at the office of the medical examiner or regional medical facility.
             82          (b) An extension may be ordered only by a district court.
             83          (2) The right and duty to control the disposition of a deceased person [shall be] is
             84      governed by Sections 58-9-601 through [ 58-9-604 ] 58-9-606 .
             85          Section 2. Section 58-9-102 is amended to read:
             86           58-9-102. Definitions.
             87          In addition to the definitions in Section 58-1-102 , as used in this chapter:
             88          (1) "Beneficiary" means the individual who, at the time of the beneficiary's death, is to
             89      receive the benefit of the property and services purchased under a preneed funeral arrangement.


             90          (2) "Board" means the Board of Funeral Service created in Section 58-9-201 .
             91          (3) "Buyer" means [any] a person who purchases a preneed funeral arrangement.
             92          (4) "Calcination" means a process in which a dead human body is reduced by intense
             93      heat to a residue that is not as substantive as the residue that follows cremation.
             94          (5) "Cremation" means the reduction of a dead human body by direct flame to residue
             95      that includes bone fragments.
             96          (6) "Direct disposition" means the disposition of a dead human body:
             97          (a) as quickly as law allows;
             98          (b) without preparation of the body by embalming; and
             99          (c) without [any] an attendant funeral service or graveside service.
             100          (7) "Disposition" means the final disposal of a dead human body by:
             101          (a) earth interment;
             102          (b) above ground burial;
             103          (c) cremation;
             104          (d) calcination;
             105          (e) burial at sea;
             106          (f) delivery to a medical institution; or
             107          (g) other lawful means.
             108          (8) "Embalming" means replacing body fluids in a dead human body with preserving
             109      and disinfecting chemicals.
             110          [(9) "Funeral establishment" means a place established for any of the following
             111      purposes in connection with a dead human body:]
             112          [(a) custody;]
             113          [(b) shelter;]
             114          [(c) care;]
             115          [(d) preparation;]
             116          [(e) disposition; or]
             117          [(f) other services.]
             118          [(10)] (9) (a) "Funeral merchandise" means any of the following into which a dead
             119      human body is placed in connection with the transportation or disposition of the body:
             120          (i) [vaults] a vault;


             121          (ii) [caskets] a casket; or
             122          (iii) other personal property.
             123          (b) "Funeral merchandise" does not include:
             124          (i) a mausoleum [crypts] crypt;
             125          (ii) [interment receptacles] an internment receptacle preset in a cemetery; or
             126          (iii) a columbarium [niches] niche.
             127          [(11)] (10) "Funeral service" means [any] a service, rite, or ceremony performed:
             128          (a) with respect to the death of a human; and
             129          (b) with the body of the deceased present.
             130          [(13)] (11) "Funeral service director" means an individual licensed under this chapter
             131      who may engage in all lawful professional activities regulated and defined under the practice of
             132      funeral service.
             133          (12) (a) "Funeral service establishment" means a place of business at a specific street
             134      address or location licensed under this chapter that is devoted to:
             135          (i) the embalming, care, custody, shelter, preparation for burial, and final disposition of
             136      dead human bodies; and
             137          (ii) the furnishing of services, merchandise, and products purchased from the
             138      establishment as a preneed provider under a preneed funeral arrangement.
             139          (b) "Funeral service establishment" includes:
             140          (i) all portions of the business premises and all tools, instruments, and supplies used in
             141      the preparation and embalming of dead human bodies for burial, cremation, and final
             142      disposition as defined by division rule; and
             143          (ii) a facility used by the business in which funeral services may be conducted.
             144          [(12)] (13) "Funeral service [apprentice] intern" means an individual licensed under
             145      this chapter who is permitted to:
             146          (a) assist a funeral service director in the embalming or other preparation of a dead
             147      human body for S. [ deposition ] disposition .S ;
             148          (b) assist a funeral service director in the cremation, calcination, or pulverization of a
             149      dead human body or its remains; and
             150          (c) perform other funeral service activities under the supervision of a funeral service
             151      director.


             152          (14) "Graveside service" means a funeral service held at the location of disposition.
             153          (15) "Memorial service" means [any] a service, rite, or ceremony performed:
             154          (a) with respect to the death of a human; and
             155          (b) without the body of the deceased present.
             156          (16) "Practice of funeral service" means:
             157          (a) supervising the receipt of custody and transportation of a dead human body to
             158      prepare the body for:
             159          (i) disposition; or
             160          (ii) shipment to another location;
             161          (b) entering into a contract with [any] a person to provide professional services
             162      regulated under this chapter;
             163          (c) embalming or otherwise preparing a dead human body for disposition;
             164          (d) supervising the arrangement or conduct of [any of the following]:
             165          (i) a funeral service;
             166          (ii) a graveside service; or
             167          (iii) a memorial service;
             168          (e) cremation, calcination, or pulverization of a dead human body or the body's
             169      remains;
             170          (f) supervising the arrangement of:
             171          (i) a disposition; or
             172          (ii) a direct disposition;
             173          (g) facilitating:
             174          (i) a disposition; or
             175          (ii) a direct disposition;
             176          (h) supervising [sales] the sale of funeral merchandise by a funeral establishment;
             177          (i) managing or otherwise being responsible for the practice of funeral service in a
             178      licensed funeral service establishment;
             179          (j) supervising the sale of a preneed funeral arrangement; and
             180          (k) contracting with or employing individuals to sell a preneed funeral arrangement.
             181          (17) (a) "Preneed funeral arrangement" means [any] a written or oral agreement sold in
             182      advance of the death of the beneficiary under which a person agrees with a buyer to provide at


             183      the death of the beneficiary any of the following as are typically provided in connection with a
             184      disposition:
             185          (i) goods;
             186          (ii) services, including:
             187          (A) embalming services; and
             188          (B) funeral directing services;
             189          (iii) real property; or
             190          (iv) personal property, including:
             191          (A) [caskets] a casket;
             192          (B) [other] another primary [containers] container;
             193          (C) a cremation or transportation [containers] container;
             194          (D) an outer burial [containers] container;
             195          (E) [vaults] a vault;
             196          (F) a grave [liners] liner;
             197          (G) funeral clothing and accessories;
             198          (H) [monuments] a monument;
             199          (I) a grave [markers] marker; and
             200          (J) a cremation [urns] urn.
             201          (b) "Preneed funeral arrangement" does not include a policy or product of life
             202      insurance providing a death benefit cash payment upon the death of the beneficiary which is
             203      not limited to providing the products or services described in Subsection (17)(a).
             204          [(18) "Provider" means a licensed funeral establishment that furnishes or will furnish
             205      the services or property purchased under a preneed funeral arrangement.]
             206          [(19)] (18) "Pulverization" means a grinding process that reduces the residue of a
             207      cremation or calcination into a powdery substance.
             208          [(20)] (19) "Sales agent" means an individual licensed under this chapter as a preneed
             209      funeral arrangement sales agent.
             210          [(21)] (20) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-9-501 .
             211          [(22)] (21) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-9-502 .
             212          Section 3. Section 58-9-201 is amended to read:
             213           58-9-201. Board.


             214          (1) There is created the Board of Funeral Service consisting of:
             215          (a) [three] four funeral service directors who own [or], have an ownership interest in,
             216      or have management responsibilities for a funeral service establishment[, at least two of which
             217      are preneed funeral arrangement providers];
             218          (b) one preneed funeral arrangement sales agent, who does not have an ownership
             219      interest in a funeral service establishment; and
             220          [(c) one owner or officer of an endowment care cemetery; and]
             221          [(d)] (c) two members from the general public who have no association with the
             222      funeral service profession.
             223          (2) The board shall be appointed and serve in accordance with Section 58-1-201 .
             224          (3) (a) The duties and responsibilities of the board shall be in accordance with Sections
             225      58-1-202 and 58-1-203 . [In addition, the]
             226          (b) The board shall designate one of its members on a permanent or rotating basis to:
             227          [(a)] (i) assist the division in reviewing complaints concerning the unlawful or
             228      unprofessional conduct of a licensee; and
             229          [(b)] (ii) advise the division in its investigation of these complaints.
             230          (4) A board member who has, under Subsection (3), reviewed a complaint or advised
             231      the division in its investigation may be disqualified from participating with the board when the
             232      board serves as a presiding officer of an administrative proceeding concerning the complaint.
             233          Section 4. Section 58-9-301 is amended to read:
             234           58-9-301. Licensure required -- License classifications.
             235          (1) A license is required to engage in the practice of funeral service, except as
             236      specifically provided in Sections 58-1-307 and 58-9-305 .
             237          (2) The division shall issue to a person who qualifies under this chapter a license in the
             238      classification of:
             239          (a) funeral service director;
             240          (b) funeral service [apprentice] intern;
             241          (c) funeral service establishment; or
             242          [(d) preneed funeral arrangement provider; or]
             243          [(e)] (d) preneed funeral arrangement sales agent.
             244          Section 5. Section 58-9-302 is amended to read:


             245           58-9-302. Qualifications for licensure.
             246          (1) Each applicant for licensure as a funeral service director shall:
             247          (a) submit an application in a form prescribed by the division;
             248          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             249          (c) be of good moral character in that the applicant has not been convicted of:
             250          (i) a first or second degree felony;
             251          (ii) a misdemeanor involving moral turpitude; or
             252          (iii) any other crime that when considered with the duties and responsibilities of a
             253      funeral service director is considered by the division and the board to indicate that the best
             254      interests of the public are not served by granting the applicant a license;
             255          (d) have [completed] obtained a high school [education] diploma or its equivalent or a
             256      higher education degree;
             257          (e) have obtained an associate degree, or its equivalent, in mortuary science from a
             258      school of funeral service accredited by the American Board of Funeral Service Education or
             259      other accrediting body recognized by the U.S. Department of Education;
             260          (f) have completed not less than 2,000 hours and 50 embalmings, over a period of not
             261      less than one year, of satisfactory performance in training as a licensed funeral service
             262      [apprentice] intern under the supervision of a licensed funeral service director; and
             263          (g) [have successfully completed] obtain a passing score on examinations approved by
             264      the division in collaboration with the board.
             265          (2) Each applicant for licensure as a funeral service [apprentice] intern shall:
             266          (a) submit an application in a form prescribed by the division;
             267          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             268          (c) be of good moral character in that the applicant has not been convicted of:
             269          (i) a first or second degree felony;
             270          (ii) a misdemeanor involving moral turpitude; or
             271          (iii) any other crime that when considered with the duties and responsibilities of a
             272      funeral service [apprentice] intern is considered by the division and the board to indicate that
             273      the best interests of the public are not served by granting the applicant a license;
             274          (d) have [completed] obtained a high school [education] diploma or its equivalent or a
             275      higher education degree; and


             276          (e) [have successfully completed] obtain a passing score on an examination [testing the
             277      applicant's knowledge of the law and rules made under this chapter] approved by the division
             278      in collaboration with the board.
             279          (3) Each applicant for licensure as a funeral service establishment and each funeral
             280      service establishment licensee shall:
             281          (a) submit an application in a form prescribed by the division;
             282          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             283          (c) have in place [and]:
             284          (i) an embalming room for preparing dead human bodies for burial or final disposition,
             285      which may serve one or more facilities operated by the applicant;
             286          (ii) a refrigeration room that maintains a temperature of not more than 40 degrees
             287      fahrenheit for preserving dead human bodies prior to burial or final disposition, which may
             288      serve one or more facilities operated by the applicant; and
             289          (iii) maintain at all times a licensed funeral service director who is responsible for the
             290      day-to-day operation of the funeral service establishment [as the sole proprietor, a managing
             291      general partner, or an officer of a corporation or other business entity; and (d) if it is the
             292      intention of] and H. [ lives within 100 miles of the establishment ] who is personally available
             292a      to perform the services for which the licensed is required .H ;
             293          (d) affiliate with a licensed preneed funeral arrangement sales agent or funeral service
             294      director if the funeral service establishment [to sell] sells preneed funeral arrangements[, file
             295      with the division an application for a license to sell preneed funeral arrangements.];
             296          [(4) Each applicant for licensure as a preneed funeral arrangement provider shall:]
             297          [(a) submit an application in a form provided by the division;]
             298          [(b) pay a fee as determined by the department under Section 63-38-3.2 ;]
             299          [(c) be licensed in the state as a funeral service establishment;]
             300          [(d) be free of activities or conduct which, when considered with the responsibilities of
             301      a licensee and the public interest, is a threat to the public health, safety, or welfare;]
             302          (e) file with the completed application a copy of each form of contract or agreement the
             303      applicant will use in the sale of preneed funeral arrangements; and
             304          (f) provide evidence of appropriate licensure with the Insurance Department if the
             305      applicant intends to engage in the sale of any preneed funeral arrangements funded in whole or
             306      in part by an insurance policy or product to be sold by the provider or the provider's sales agent.


             307          [(5)] (4) Each applicant for licensure as a preneed funeral arrangement sales agent
             308      shall:
             309          (a) submit an application in a form prescribed by the division;
             310          (b) pay a fee as determined by the department under Section 63-38-3.2 ;
             311          (c) be of good moral character in that the applicant has not been convicted of:
             312          (i) a first or second degree felony;
             313          (ii) a misdemeanor involving moral turpitude; or
             314          (iii) any other crime that when considered with the duties and responsibilities of a
             315      preneed funeral sales agent is considered by the division and the board to indicate that the best
             316      interests of the public are not served by granting the applicant a license;
             317          [(d) be a high school graduate or have obtained a certificate of equivalency approved
             318      by the division;]
             319          (d) have obtained a high school diploma or its equivalent or a higher education degree;
             320          (e) [pass an] have obtained a passing score on an examination approved by the division
             321      in collaboration with the board;
             322          (f) [provide evidence that the applicant will be associated] affiliate with a licensed
             323      [preneed] funeral [arrangement provider upon issuance of a license under terms acceptable to
             324      the division] service establishment; and
             325          (g) provide evidence of appropriate licensure with the Insurance Department if the
             326      applicant intends to engage in the sale of any preneed funeral arrangements funded in whole or
             327      in part by an insurance policy or product.
             328          Section 6. Section 58-9-303 is amended to read:
             329           58-9-303. Term of license -- Expiration -- Renewal.
             330          (1) (a) The division shall issue each license under this chapter in accordance with a
             331      two-year renewal cycle established by rule.
             332          (b) The division may by rule extend or shorten a renewal cycle by as much as one year
             333      to stagger the renewal cycles it administers.
             334          (2) Notwithstanding Subsection (1), a person who has once held a license as a funeral
             335      service [apprentice] intern and has not qualified for licensure as a funeral service director may
             336      be issued a subsequent funeral service [apprentice] intern license for only one additional
             337      two-year term upon the specific approval of the division in collaboration with the board.


             338          (3) At the time of renewal, the funeral service director licensee shall show satisfactory
             339      evidence of completion of continuing education as required under Section 58-9-304 .
             340          (4) Each license automatically expires on the expiration date shown on the license
             341      unless the licensee renews it in accordance with Section 58-1-308 .
             342          (5) (a) Except as otherwise provided in Subsections (5)(b) and (c), the division may
             343      take action against the license of a funeral service establishment that does not have a licensed
             344      funeral service director.
             345          (b) If a licensed funeral service director dies and leaves the funeral service
             346      establishment as part of the assets of the funeral service director's estate:
             347          (i) the personal representative of the funeral service director's estate may operate the
             348      funeral service establishment under the license, or renewals of the license, for not more than
             349      H. [ one year ] two years .H from the date of the funeral service director's death without
             349a      meeting the qualifications
             350      of an applicant and without having a licensed funeral service director; but
             351          (ii) Subsection (5)(b)(i) does not allow an unlicensed person to perform a function that
             352      requires performance by a funeral service director licensed under this chapter.
             353          (c) If the funeral service director of a licensed funeral service establishment terminates
             354      employment with the establishment, the establishment has 90 days to hire a new licensed
             355      funeral service director before action may be taken against the license under Subsection (5)(a).
             356          Section 7. Section 58-9-305 is amended to read:
             357           58-9-305. Exemptions from licensure.
             358          In addition to the exemptions from licensure in Section 58-1-307 , a person may engage
             359      in the following acts included within the definition of the practice of funeral service, subject to
             360      the stated circumstances and limitations, without being licensed under this chapter:
             361          (1) transportation of a dead human body in accordance with other applicable state and
             362      federal laws;
             363          (2) ambulance or other emergency transportation of a dead human body;
             364          (3) the sale of any of the following that is delivered to the buyer or the buyer's designee
             365      within 90 days after the day of the sale:
             366          (a) funeral merchandise;
             367          (b) headstones; or
             368          (c) other memorial merchandise;


             369          (4) the performance of funeral, graveside, or memorial services by:
             370          (a) a member of the clergy;