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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
funeral
services regulation; DHS
(NOW: funeral services; DHS; advisory committee)
Purpose
An emergency measure, that eliminates the Board of Funeral Directors and Embalmers (Board) and transfers the powers and duties of the Board to the Department of Health Services (DHS). Modifies regulatory requirements relating to funeral services professionals and establishments.
Background
The Board regulates the final disposition of human remains through the
licensure and registration of funeral establishments and directors, assistant
funeral directors, embalmers and embalmer's assistants, crematories and
cremationists, alkaline hydrolysis facilities and operators, interns and intern
trainees and prearranged funeral salespersons (A.R.S. Title 32, Chapter 12).
The Board's Fund is administered by the Board. 10 percent of all fees and other
monies collected under the funeral services statutes are deposited into the
state General Fund (state GF) and the remaining 90 percent is deposited into
the Board's Fund. All civil penalties collected under the funeral services
statutes must be deposited in the state GF (A.R.S.
§ 32-1308). The Board consists of seven Governor-appointed members to serve
staggered, four-year terms. Three members must be licensed, practicing funeral
directors or embalmers and four must be public members (A.R.S.
§ 32-1302).
DHS is established to protect the physical and mental health of Arizona’s
children and adults. DHS's responsibilities include: 1) the licensure and
regulation of health care and child care facilities and certain health care
professionals; 2) disease control; 3) immunization education and promotion; 4) emergency
preparedness; 5) emergency medical services; 6) the state laboratory;
7) the state hospital; 8) public health statistics; 9) radiation regulatory
programs; and 10) vital records which include birth and death certificates (A.R.S. Title 36).
The Senate and House Commerce Committees of Reference (COR) met on January 10, 2023, to conduct a sunset review of the Board. The COR recommended that the Board be terminated and that the powers and duties of the Board be transferred to DHS (COR Report).
If the modification of fees collected under the funeral services statutes changes revenues, there may be a fiscal impact to the state GF.
Transfer of Authority and Monies
1. Eliminates the Board and the following authorities:
a) adopting a seal; and
b) appointing citizen advisory committees to make recommendations concerning enforcing and administering the funeral services statutes.
2. Transfers the regulatory authority, powers, duties and responsibilities of the Board to DHS.
3. Stipulates that:
a) the transfer does not alter the effect of any actions that were taken or impair the valid obligations of the Board before the effective date;
b) administrative rules and orders that were adopted by the Board continue in effect until superseded by DHS administrative action;
c) all administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the Board on the effective date are transferred to and retain the same status with DHS;
d) all certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the Board retain their validity for the duration of the term of validity as provided by law;
e) all equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies of the Board that remain unexpended and unencumbered on the effective date are transferred to DHS;
f) all personnel who are under the state personnel system and employed by the Board are transferred to comparable positions and pay classifications in the respective administrative units of DHS on the effective date; and
g) all funeral service fees remain in effect until DHS establishes fees through the rulemaking process.
4. Transfers all unexpended and unencumbered monies remaining in the Board's Fund to the Health Services Licensing Fund (Fund).
5. Allows DHS to use up to $870,000 from the Fund to assist in the transference of authority, power, duties and responsibilities from the Board to DHS.
Advisory Committee
8. Establishes an Advisory Committee to collaborate with and assist the Director of DHS in performing the duties to regulate the funeral services industry.
9. Requires the Advisory Committee to consist of seven members who are appointed by the Governor.
10. Stipulates that the Advisory Committee members serve at the pleasure of the Governor for staggered terms of four years beginning and ending on January 1 unless removed by the Governor.
11. Requires the Governor to appoint a member for the unexpired portion of a term to fill a vacancy occurring during a term of office.
12. Requires the Advisory Committee to include:
a) two members who are licensed funeral directors;
b) one member who is a licensed embalmer;
c) one member who is a licensed cremationist; and
d) three public members who are Arizona residents, one of whom is an owner or manager of a business that has no pecuniary or proprietary interest in a funeral establishment or crematory or in the sale of funeral goods and services.
13. Prohibits the public members from being licensed under the funeral services statutes or having been licensed in the five years preceding appointment.
14. Prohibits the members of the Advisory Committee from receiving compensation.
15. Requires the members of the Advisory Committee to be reimbursed for subsistence and travel expenses.
16. Requires the Advisory Committee to annually select from its membership a chairperson.
17. Requires the Advisory Committee to hold meetings:
a) twice per year at a time and place designated by the chairperson; and
b) at the Director of DHS's request.
18. Requires the Advisory Committee to:
a) provide the Director of DHS with such recommendations as it deems necessary and beneficial to the best interests of the public; and
b) provide recommendations on specific questions or proposals as the Advisory Committee deems necessary or as required by the Director of DHS.
19. Requires the Advisory Committee to annually present to the Governor an evaluation of the performance of DHS and the Director of DHS relating to enforcing and administering the funeral services statutes.
Funeral Services Fees
20. Requires DHS to establish and collect funeral service fees as determined by DHS in administrative rule, rather than as prescribed by statute.
21. Requires DHS to deposit all fees and other monies collected under the funeral services statutes into the Fund.
22. Requires all civil penalties collected under the funeral service statutes to be deposited into the state GF.
23. Eliminates the fees for an intern, intern trainee, assistant funeral director, embalmer's assistant, prearranged funeral salesperson and prearranged funeral sales establishment endorsement.
24. Eliminates the funeral services examination fees, except a fee for a state laws and rules examination.
Funeral Services Professionals
25. Eliminates the licensing and registration requirements for a funeral services intern, an assistant funeral director, an embalmer's assistant and a prearranged funeral salesperson.
26. Eliminates intern trainee requirements for temporary employment by a funeral establishment.
27. Eliminates the requirements that an applicant for a funeral director license:
a) have held an active license as an intern for at least one year; and
b) have assisted in arranging and directing at least 25 funerals.
28. Eliminates the requirements that an applicant for an embalmer license:
a) have been licensed as an intern for at least one year; and
b) have successfully completed an internship program that included assisting in embalming at least 25 dead human bodies.
29. Eliminates the ability of an applicant for a funeral director or embalmer license to pass a state equivalent examination in lieu of the funeral service section of the national board examination.
30. Includes the requirements that an applicant for an embalmer license:
a) be a graduate of an accredited or provisionally accredited school of mortuary science; and
b) have successfully assisted in embalming at least 25 dead human bodies.
31. Includes the requirements that an applicant for a funeral director license:
a) be a graduate of an accredited or provisionally accredited school of mortuary science; and
b) have successfully assisted in arranging and directing at least 25 funerals.
32. Adds the requirement that an applicant for a funeral director, embalmer or alkaline hydrolysis operator license not have a disqualifying criminal history as determined by DHS under the statutory requirements for occupational licensing.
33. Eliminates the requirement that an applicant for a funeral director, embalmer, cremationist or alkaline hydrolysis operator license be of good moral character.
35. Specifies that a person is on a pathway to licensure if both of the following apply:
a) the person has been employed by a funeral establishment for not more than three years; and
b) the person intends to become licensed after assisting in embalming at least 25 dead human bodies or in arranging and directing at least 25 funerals.
36. Allows an alkaline hydrolysis operator to practice without being licensed if the alkaline hydrolysis facility is operated or supervised by:
a) a responsible cremationist; or
b) another person who is a licensed alkaline hydrolysis operator.
37. Allows a person who holds an inactive license to practice alkaline hydrolysis in Arizona if there is another individual at the alkaline hydrolysis facility who is licensed and operates or supervises the alkaline hydrolysis facility.
38. Decreases the cap for annual continuing education, from 16 hours to 6 hours, that may be prescribed in rules for a person who is licensed as a funeral services professional.
Funeral Services Establishments
39. Allows an alkaline hydrolysis facility to be operated and supervised by a responsible cremationist, in lieu of a licensed alkaline hydrolysis operator.
40. Eliminates the requirement, for a funeral establishment, crematory or alkaline hydrolysis facility license, that any of the entity's proprietors, owners, partners, officers, directors and trust beneficiaries be of good moral character.
41. Requires the omissions of an agent or employee of a crematory, rather than only acts, that violate the funeral services statutes or rules to be deemed omissions of the crematory.
42. Allows DHS to impose probationary terms, after inspecting a funeral establishment, crematory or alkaline hydrolysis facility, if it is determined that the probationary terms are necessary to:
a) protect the public health, safety and welfare; and
b) rehabilitate or educate the licensee.
43. Requires a person affiliated with the funeral establishment, on beginning a discussion regarding prearranged funeral agreements, to present the price list to the consumer, rather than a prearranged funeral salesperson.
44. Requires an authorized employee at a funeral establishment to provide accurate information about the retail prices of funeral goods and services.
45. Allows a licensee or authorized employee at a funeral establishment to provide prices of funeral goods and services by telephone, electronic means or mail.
46. Eliminates the prearranged funeral sales endorsement requirement that the bond amount for a funeral establishment be increased by an additional $5,000 for each employed prearranged funeral salesperson.
Miscellaneous
47. Defines Department as DHS and Director as the Director of DHS.
48. Eliminates, from the definition of license, a written authorization that is issued and entitles a person to act as an intern or alkaline hydrolysis operator.
49. Redefines licensee as a person to who has been licensed under the funeral services statutes.
50. Eliminates the definitions for Board, embalmer's assistant, good moral character, intern, intern trainee and registration.
52. Makes technical and conforming changes.
53. Becomes effective on signature of the Governor, if the emergency clause is enacted, retroactive to April 1, 2023.
Amendments Adopted by Committee
2. Requires the Advisory Committee to consist of seven members who are appointed by the Governor.
3. Stipulates that the Advisory Committee members serve at the pleasure of the Governor for staggered terms of four years beginning and ending on January 1 unless removed by the Governor.
4. Requires the Governor to appoint a member for the unexpired portion of a term to fill a vacancy occurring during a term of office.
5. Requires the Advisory Committee to include:
a) two members who are licensed funeral directors;
b) one member who is a licensed embalmer;
c) one member who is a licensed cremationist; and
d) three public members who are Arizona residents, one of whom is an owner or manager of a business that has no pecuniary or proprietary interest in a funeral establishment or crematory or in the sale of funeral goods and services.
6. Prohibits the public members from being licensed under the funeral services statutes or having been licensed in the five years preceding appointment.
7. Prohibits the members of the Advisory Committee from receiving compensation.
8. Requires the members of the Advisory Committee to be reimbursed for subsistence and travel expenses.
9. Requires the Advisory Committee to annually select from its membership a chairperson.
10. Requires the Advisory Committee to hold meetings:
a) twice per year at a time and place designated by the chairperson; and
b) at the Director of DHS's request.
11. Requires the Advisory Committee to:
a) provide the Director of DHS with such recommendations as it deems necessary and beneficial to the best interests of the public; and
b) provide recommendations on specific questions or proposals as the Advisory Committee deems necessary or as required by the Director of DHS.
12. Requires the Advisory Committee to annually present to the Governor an evaluation of the performance of DHS and the Director of DHS relating to enforcing and administering the funeral services statutes.
13. Reinserts the requirement for a person to be licensed as an embalmer to practice embalming.
14. Allows another person, rather than a licensed intern, registered embalmer's assistant or intern trainee, to embalm a dead human body under the direct supervision of a licensed embalmer.
15. Reinserts the definition of supervise or supervision as a licensed embalmer that has responsibility for and is within sight and sound of a person who is embalming a dead human body or assisting in the embalming of a dead human body, rather than a licensed intern who is embalming the dead human body or a student who is assisting in embalming a dead human body.
16. Reinserts, in the definition of license, a written authorization that is issued and entitles a person to act as an embalmer.
17. Reinserts the prohibition on a person who holds an inactive license from practicing embalming or cremation.
Amendments Adopted by Committee of the Whole
· Eliminates the emergency clause.
Amendments Adopted by the House of Representatives
1. Eliminates the establishment of the Funeral Directors Fund.
3. Requires DHS to deposit all fees and other monies collected under the funeral services statutes into the Fund.
4. Requires all civil penalties collected under the funeral service statutes to be deposited into the state GF.
5. Requires DHS to establish and collect funeral service fees as determined by DHS in administrative rule, rather than as prescribed by statute.
6. Eliminates the fees for a prearranged funeral sales establishment endorsement.
7. Eliminates the funeral services examination fees, except a fee for a state laws and rules examination.
10. Includes the requirements that an applicant for an embalmer license:
a) be a graduate of an accredited or provisionally accredited school of mortuary science; and
b) have successfully assisted in embalming at least 25 dead human bodies.
11. Includes the requirements that an applicant for a funeral director license:
a) be a graduate of an accredited or provisionally accredited school of mortuary science; and
b) have successfully assisted in arranging and directing at least 25 funerals.
12. Eliminates the requirement that each licensed funeral establishment, crematory or alkaline hydrolysis facility be operated or supervised by a licensed funeral director.
13. Specifies that an alkaline hydrolysis facility may not employ a licensed alkaline hydrolysis operator if the facility will be operated and supervised by a responsible cremationist, rather than a licensed funeral director.
14. Specifies that another person, other than a licensed embalmer, may embalm a dead human body if the person is employed by the funeral establishment and on a pathway to licensure.
15. Specifies that a person is on a pathway to licensure if both of the following apply:
a) the person has been employed by a funeral establishment for not more than three years; and
b) the person intends to become licensed after assisting in embalming at least 25 dead human bodies or in arranging and directing at least 25 funerals.
17. Allows a licensee or authorized employee at a funeral establishment to provide prices of funeral goods and services by telephone, electronic means or mail.
18. Stipulates that all funeral service fees remain in effect until DHS establishes fees through the rulemaking process.
20. Reinserts the emergency clause.
21. Makes technical and conforming changes.
Senate Action House Action
COM 2/15/23 DPA 4-3-0 COM 3/21/23 DP 6-4-0
3rd Read 3/2/23 18-12-0 3rd Read 5/15/23 58-0-1-0-1
Prepared by Senate Research
May 15, 2023
JT/sr