HB2255 - 561R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 32-1301, Arizona Revised Statutes, as amended by Laws 2022, chapter 257, section 3, is amended to read:

START_STATUTE32-1301. Definitions

In this chapter, unless the context otherwise requires:

1. "Accredited" means being recognized or authorized by the American board of funeral service education.

2. "Administrative costs and expenses" means the cost of copies, transcripts, court reporter and witness fees, reimbursement for mileage and office of administrative hearings costs.

3. "Alkaline hydrolysis" means a form of final disposition that includes all of the following:

(a) Reducing a dead human body to essential elements through a water-based dissolution process using alkaline chemicals, heat, agitation and pressure to accelerate natural decomposition.

(b) Processing the hydrolyzed remains after they are removed from the alkaline hydrolysis vessel.

(d) Releasing the hydrolyzed remains to an appropriate party.

4. "Alkaline hydrolysis container":

(a) Means a hydrolyzable or biodegradable closed container or pouch that is resistant to leakage of bodily fluids, that encases a dead human body and into which the body is placed before the container's insertion into an alkaline hydrolysis vessel.

(b) Includes a hydrolyzable or biodegradable alternative container or casket.

5. "Alkaline hydrolysis facility" means a building or structure containing one or more alkaline hydrolysis vessels for alkaline hydrolysis.

6. "Alkaline hydrolysis operator" means a person who is trained to carry out the process of alkaline hydrolysis.

7. "Alkaline hydrolysis vessel" means the container in which alkaline hydrolysis is performed.

8. "Alternative container" means any unfinished wood box or other nonmetal receptacle or enclosure, without ornamentation or a fixed interior lining, that is designed for encasing human remains.

9. "Authorizing agent" means a person who is legally entitled to order the cremation, disinterment or embalming of human remains pursuant to section 32-1365.02.

10. "Beneficiary" means a person whose future funeral arrangements will be handled by a funeral establishment pursuant to a prearranged funeral agreement.

11. "Board" means the state board of funeral directors and embalmers.

12. "Business entity" includes any corporation, association, limited liability company, professional corporation, partnership, limited partnership, sole proprietorship, business trust, trust, joint venture and other business entity.

13. "Casket" means a rigid container that is designed to permanently encase human remains and that is usually constructed of wood, metal or synthetic substances and ornamented and lined with fabric.

14. "Change of ownership" means a transfer of a controlling legal or equitable interest in a licensed funeral establishment or crematory resulting from a sale or merger. If the establishment or crematory is operated by a business entity, any transfer of the ownership of ten percent or more of the entity constitutes a change of ownership.

15. "Conviction" means a criminal adjudication or conviction by any state or federal court of competent jurisdiction, including a judgment based on a no contest plea, without regard to whether civil rights have been restored.

16. "Cremated remains" means the remaining bone fragments after cremation.

17. "Cremation" means the heating process that reduces human remains to bone fragments by combustion and evaporation.

18. "Cremation container" means a leak and spill resistant, rigid, combustible, closed receptacle into which human remains are placed before cremation.

19. "Cremationist" means a person who operates a crematory retort, who performs the actual cremation of human remains and who may be licensed pursuant to article 6 of this chapter.

20. "Crematory" means a building or portion of a building that is licensed pursuant to article 6 of this chapter and that houses a retort in which only human remains are cremated.

21. "Disciplinary action" means an action taken by the board to revoke or suspend a license or registration, to impose probationary requirements or civil penalties or to issue a letter of censure or reprimand to any person who is subject to this chapter and who violates any provision of this chapter or rules adopted by the board.

22. "Embalmer" means a person who is licensed pursuant to this chapter and who is engaged in embalming.

23. "Embalmer's assistant" means a person who is registered pursuant to this chapter and who is engaged in embalming without the supervision of a licensed embalmer.

24. "Embalming" means the implementation of reconstructive procedures and the process of disinfecting and preserving a dead human body to retard organic decomposition by treating the body to reduce the presence and growth of organisms.

25. "Financial institution" means a bank, savings and loan association, trust company or credit union that is lawfully doing business in this state and that is not affiliated with a funeral establishment.

26. "Fixed price prearranged funeral agreement funded by trust" means any agreement or combination of agreements that establishes a fixed price for funeral goods and services, that requires a funeral establishment to provide those funeral goods and services at the price levels in effect at the time of the execution of the agreement and that requires the purchaser to convey all or a portion of the accrued interest to the funeral establishment at the time that the funeral goods and services are actually provided.

27. "Funded by insurance" means that monies for a prearranged funeral agreement are paid directly to an insurance company licensed pursuant to title 20 on behalf of the beneficiary of the agreement.

28. "Funeral directing" means arranging, directing or providing a service in the disposition of dead human bodies for compensation.

29. "Funeral director" means a person who is licensed pursuant to this chapter and who is engaged in funeral directing.

30. "Funeral establishment" means a business at a specific location that is licensed pursuant to this chapter and that is devoted to the care, storage or preparation for final disposition or transportation of dead human bodies.

31. "Funeral goods and services":

(a) Means any personal property or services that are typically sold or provided in connection with the final disposition of human remains, including caskets, alternative containers, outer burial containers, cremation containers, transportation containers, funeral clothing or accessories, monuments, grave markers, urns, embalming services, funeral directing services and similar funeral or burial items.

(b) Does not include:

(i) Goods and services sold by cemeteries.

(ii) Services PROVIDED pursuant to a transportation protection agreement.

32. "Good moral character" means that a person:

(a) Has not been convicted of a class 1 or 2 felony by a court of competent jurisdiction.

(b) Has not, within five years of applying for licensure or registration, been convicted of a felony or misdemeanor if the offense has a reasonable relationship to the person's proposed area of licensure or registration.

(c) Has not, within five years of applying for licensure or registration, committed any act involving dishonesty, fraud, misrepresentation, breach of fiduciary duty, gross negligence or incompetence if the act has a reasonable relationship to the person's proposed area of licensure or registration.

(d) Is not currently incarcerated in or on community supervision after a period of imprisonment in a local, state or federal penal institution or on criminal probation.

(e) Has not engaged in fraud or misrepresentation in connection with an application for licensure or registration under this chapter or an examination required for licensure or registration.

(f) Has not, within five years of applying for licensure or registration, had a license, registration or endorsement revoked or suspended by the board or by the funeral services licensing authority of any other jurisdiction.

(g) Has not surrendered a license, registration or endorsement to the board or the funeral licensing authority of any other jurisdiction in lieu of disciplinary action.

(h) Has not practiced funeral directing or embalming without a license in this state or any other jurisdiction that requires licensure to perform these activities.

33. "Holding facility" means a designated area for retaining human remains.

34. "Human remains" means a lifeless human body or parts of a human body that allow a reasonable inference that death occurred.

35. "Intern" means a person who is licensed pursuant to this chapter and who is engaged in either or both of the following:

(a) Embalming under the supervision of a licensed embalmer.

(b) Arranging and directing funerals under the supervision of a licensed funeral director.

36. "Intern trainee" means a person who intends to enter training as an intern and who is temporarily employed by a funeral establishment.

37. "License" means a written authorization that is issued by the board and that entitles a person to act as a funeral director, embalmer, intern or alkaline hydrolysis operator or to operate a funeral establishment, crematory or alkaline hydrolysis facility in this state.

38. "Licensee" means a person to whom the board has issued a license to act as a funeral director, embalmer, intern or alkaline hydrolysis operator or to operate a funeral establishment, crematory or alkaline hydrolysis facility in this state.

39. "Manage" means:

(a) That a responsible funeral director exercises control and oversight over all employees of a funeral establishment and over funeral transactions, including caring for dead human bodies, funeral services and activities and documenting and retaining records.

(b) That a responsible cremationist exercises control and oversight over all employees of a crematory and crematory operations.

40. "National board examination" means the test or tests given by the conference of funeral service examining boards to determine the entry level knowledge and skills of a person regarding funeral directing and embalming.

41. "Net interest" means interest earned on a prearranged funeral trust account minus applicable taxes, reasonable and necessary charges made by the financial institution and the annual service fee allowed to be deducted by the funeral establishment according to section 32-1391.06, subsection B.

42. "Outer burial container" means a container that is designed for placement in a grave around a casket, including burial vaults, grave boxes and grave liners.

43. "Owner":

(a) Means a person who owns ten percent or more of a business entity.

(b) Does not include shareholders of companies who have a class of common equity stock listed or authorized to be listed on the New York stock exchange or the American stock exchange or listed on the NASDAQ stock market.

44. "Person legally responsible" means the person responsible for burying a dead body as determined in section 36-831.

45. "Prearranged funeral agreement" means any agreement or combination of agreements under which a payment is made before the death of the intended beneficiary for funeral goods and services to be delivered or performed after the death of the beneficiary.

46. "Prearranged funeral trust account" means a trust account that is established at a financial institution and into which all monies paid on behalf of a beneficiary pursuant to a prearranged funeral agreement are deposited.

47. "Preparation" means washing, shaving, dressing or arranging hair on, applying cosmetics to or positioning bodily features on a dead human body and placing the dead human body in a casket.

48. "Processed cremated remains" means cremated remains after they are pulverized and cleaned, leaving primarily small bone fragments.

49. "Provisionally accredited" means being granted candidacy status by the American board of funeral service education.

50. "Registration" means a written authorization that is issued by the board and that entitles a person to act as an assistant funeral director, an embalmer's assistant or a prearranged funeral salesperson in this state.

51. "Responsible cremationist" means a licensed cremationist who manages a crematory.

52. "Responsible funeral director" means a person who is licensed pursuant to this chapter, who is engaged in funeral directing and who manages and is accountable for a funeral establishment.

53. "Retort" means an enclosed space within which cremation takes place.

54. "State equivalent examination" means the test or tests that are provided by the conference of funeral service examining boards and offered by the board to determine the entry level knowledge and skills of a person regarding funeral directing and embalming.

55. "Supervise" or "supervision" means that a licensed embalmer has responsibility for and is within sight and sound of a licensed intern who is embalming a dead human body or a student who is assisting in embalming a dead human body.

56. "Temporary container" means a receptacle that is usually made of cardboard, rigid plastic or another similar material and that is designed to hold processed cremated remains until they are placed in an urn or another permanent container.

57. "Transportation protection agreement" means an agreement that primarily provides or ARRANGES for services that are related to preparing human remains or cremated remains for the purpose of transportation and such subsequent transportation.

57. 58. "Trust funds" means all monies that are deposited on behalf of a beneficiary of a prearranged funeral agreement funded by trust and all accrued net interest. Trust funds shall be considered an account kept in suspense until distributed to the beneficiary, the funeral establishment or the estate of the beneficiary in accordance with this article.

58. 59. "Universal precautions" means the universal blood and fluid precautions recommended by the centers for disease control of the United States public health service to prevent the transmission of bloodborne and bodily fluid-borne infectious diseases.

59. 60. "Unprofessional conduct" includes the following acts, whether occurring in this state or elsewhere:

(a) Committing a class 1 or 2 felony.

(b) Committing a felony or misdemeanor if the offense has a reasonable relationship to funeral directing or embalming. Conviction by any court of competent jurisdiction or a plea of no contest is conclusive evidence of the commission.

(c) Providing false, misleading or deceptive information on an application for licensure or registration pursuant to this chapter or on an examination required for licensure or registration.

(d) Bribing or offering to bribe, directly or indirectly, a member of the board to influence the member's actions in performing the member's duties.

(e) Wilfully interfering with an embalmer, funeral director or cremationist who has lawful custody of a dead human body in performing the embalmer's, funeral director's or cremationist's duty to embalm or prepare the body for burial, transportation or cremation.

(f) Paying or causing monies or other valuable consideration to be paid to a person, other than an employee of a funeral establishment, to secure business regulated pursuant to this chapter from or through the person.

(g) Violating any law of this state or any rule adopted by the department of health services that relates to embalming or preparing dead human bodies.

(h) Certifying falsely to having embalmed or prepared a dead human body that was embalmed by a person other than a licensed embalmer making the certification or an intern under the supervision of a licensed embalmer making the certification.

(i) Falsely advertising or labeling any service or merchandise with the intention of deceiving the public.

(j) Shipping or delivering any merchandise or supplies that are not the substantial equivalent of or superior in quality to merchandise or supplies previously presented to the purchaser as samples.

(k) Committing any act involving dishonesty, fraud, misrepresentation, breach of fiduciary duty, gross negligence or incompetence if the act has a reasonable relationship to funeral directing or embalming.

(l) Engaging in any conduct or practice that is reasonably related to funeral directing or embalming and that is or may be harmful or dangerous to the health, safety or welfare of the public.

(m) Within a period of five years, having a license, registration or endorsement suspended or revoked by the board or by the funeral services licensing authority of any other jurisdiction or surrendering a license, registration or endorsement in lieu of disciplinary action.

60. 61. "Urn" means a receptacle into which processed cremated remains are placed for disposition. END_STATUTE

Sec. 2. Section 32-1301, Arizona Revised Statutes, as amended by Laws 2022, chapter 279, section 1, is amended to read:

START_STATUTE32-1301. Definitions

In this chapter, unless the context otherwise requires:

1. "Accredited" means being recognized or authorized by the American board of funeral service education.

2. "Administrative costs and expenses" means the cost of copies, transcripts, court reporter and witness fees, reimbursement for mileage and office of administrative hearings costs.

3. "Alternative container" means any unfinished wood box or other nonmetal receptacle or enclosure, without ornamentation or a fixed interior lining, that is designed for encasing human remains.

4. "Authorizing agent" means a person who is legally entitled to order the cremation, disinterment or embalming of human remains pursuant to section 32-1365.02.

5. "Beneficiary" means a person whose future funeral arrangements will be handled by a funeral establishment pursuant to a prearranged funeral agreement.

6. "Business entity" includes any corporation, association, limited liability company, professional corporation, partnership, limited partnership, sole proprietorship, business trust, trust, joint venture and other business entity.

7. "Casket" means a rigid container that is designed to permanently encase human remains and that is usually constructed of wood, metal or synthetic substances and ornamented and lined with fabric.

8. "Change of ownership" means a transfer of a controlling legal or equitable interest in a registered funeral establishment or crematory resulting from a sale or merger. If the establishment or crematory is operated by a business entity, any transfer of the ownership of ten percent or more of the entity constitutes a change of ownership.

9. "Conviction" means a criminal adjudication or conviction by any state or federal court of competent jurisdiction, including a judgment based on a no contest plea, without regard to whether civil rights have been restored.

10. "Cremated remains" means the remaining bone fragments after cremation.

11. "Cremation" means the heating process that reduces human remains to bone fragments by combustion and evaporation.

12. "Cremation container" means a leak and spill resistant, rigid, combustible, closed receptacle into which human remains are placed before cremation.

13. "Cremationist" means a person who operates a crematory retort, who performs the actual cremation of human remains and who may be registered pursuant to article 6 of this chapter.

14. "Crematory" means a building or portion of a building that is registered pursuant to article 6 of this chapter and that houses a retort in which only human remains are cremated.

15. "Disciplinary action" means an action taken to revoke or suspend a registration, to impose probationary requirements or civil penalties or to issue a letter of censure or reprimand to any person who is subject to this chapter and who violates any provision of this chapter or rules.

16. "Embalmer" means a person who is registered pursuant to this chapter and who is engaged in embalming.

17. "Embalmer's assistant" means a person who is registered pursuant to this chapter and who is engaged in embalming without the supervision of a registered embalmer.

18. "Embalming" means the implementation of reconstructive procedures and the process of disinfecting and preserving a dead human body to retard organic decomposition by treating the body to reduce the presence and growth of organisms.

19. "Financial institution" means a bank, savings and loan association, trust company or credit union that is lawfully doing business in this state and that is not affiliated with a funeral establishment.

20. "Fixed price prearranged funeral agreement funded by trust" means any agreement or combination of agreements that establishes a fixed price for funeral goods and services, that requires a funeral establishment to provide those funeral goods and services at the price levels in effect at the time of the execution of the agreement and that requires the purchaser to convey all or a portion of the accrued interest to the funeral establishment at the time that the funeral goods and services are actually provided.

21. "Funded by insurance" means that monies for a prearranged funeral agreement are paid directly to an insurance company licensed pursuant to title 20 on behalf of the beneficiary of the agreement.

22. "Funeral directing" means arranging, directing or providing a service in the disposition of dead human bodies for compensation.

23. "Funeral director" means a person who is registered pursuant to this chapter and who is engaged in funeral directing.

24. "Funeral establishment" means a business at a specific location that is registered pursuant to this chapter and that is devoted to the care, storage or preparation for final disposition or transportation of dead human bodies.

25. "Funeral goods and services":

(b) Does not include:

(i) Goods and services sold by cemeteries.

(ii) Services provided pursuant to a transportation protection agreement.

26. "Good moral character" means that a person:

(a) Has not been convicted of a class 1 or 2 felony by a court of competent jurisdiction.

(b) Has not, within five years of applying for registration, been convicted of a felony or misdemeanor if the offense has a reasonable relationship to the person's proposed area of registration.

(c) Has not, within five years of applying for registration, committed any act involving dishonesty, fraud, misrepresentation, breach of fiduciary duty, gross negligence or incompetence if the act has a reasonable relationship to the person's proposed area of registration.

(d) Is not currently incarcerated in or on community supervision after a period of imprisonment in a local, state or federal penal institution or on criminal probation.

(e) Has not engaged in fraud or misrepresentation in connection with an application for registration under this chapter or an examination required for registration.

(f) Has not, within five years of applying for registration, had a license, registration or endorsement revoked or suspended by the funeral services regulating authority of this state or any other jurisdiction.

(g) Has not surrendered a license, registration or endorsement to the funeral services regulating authority of this state or any other jurisdiction in lieu of disciplinary action.

(h) Has not practiced funeral directing or embalming without a registration in this state or any other jurisdiction that requires registration to perform these activities.

27. "Holding facility" means a designated area for retaining human remains.

28. "Human remains" means a lifeless human body or parts of a human body that allow a reasonable inference that death occurred.

29. "Intern" means a person who is registered pursuant to this chapter and who is engaged in either or both of the following:

(a) Embalming under the supervision of a registered embalmer.

(b) Arranging and directing funerals under the supervision of a registered funeral director.

30. "Intern trainee" means a person who intends to enter training as an intern and who is temporarily employed by a funeral establishment.

31. "Manage" means:

(a) That a responsible funeral director exercises control and oversight over all employees of a funeral establishment and over funeral transactions, including the care of dead human bodies, funeral services and activities and the documentation and retention of records.

(b) That a responsible cremationist exercises control and oversight over all employees of a crematory and crematory operations.

32. "National board examination" means the test or tests given by the conference of funeral service examining boards to determine the entry level knowledge and skills of a person regarding funeral directing and embalming.

33. "Net interest" means interest earned on a prearranged funeral trust account minus applicable taxes, reasonable and necessary charges made by the financial institution and the annual service fee allowed to be deducted by the funeral establishment according to section 32-1391.06, subsection B.

34. "Outer burial container" means a container that is designed for placement in a grave around a casket, including burial vaults, grave boxes and grave liners.

35. "Owner":

(a) Means a person who owns ten percent or more of a business entity.

36. "Person legally responsible" means the person responsible for burying a dead body as determined in section 36-831.

37. "Prearranged funeral agreement" means any agreement or combination of agreements under which a payment is made before the death of the intended beneficiary for funeral goods and services to be delivered or performed after the death of the beneficiary.

38. "Prearranged funeral trust account" means a trust account that is established at a financial institution and into which all monies paid on behalf of a beneficiary pursuant to a prearranged funeral agreement are deposited.

39. "Preparation" means washing, shaving, dressing or arranging hair on, applying cosmetics to or positioning bodily features on a dead human body and placing the dead human body in a casket.

40. "Processed cremated remains" means cremated remains after they are pulverized and cleaned, leaving primarily small bone fragments.

41. "Provisionally accredited" means being granted candidacy status by the American board of funeral service education.

42. "Registrant" means a person who is registered by the funeral services regulating authority of this state to act as a funeral director, embalmer or intern or to operate a funeral establishment or crematory in this state.

43. "Registration" means government registration as defined in section 41-3501 and entitles a person to act as an assistant funeral director, an embalmer's assistant or a prearranged funeral salesperson in this state.

44. "Responsible cremationist" means a registered cremationist who manages a crematory.

45. "Responsible funeral director" means a person who is registered pursuant to this chapter, who is engaged in funeral directing and who manages and is accountable for a funeral establishment.

46. "Retort" means an enclosed space within which cremation takes place.

47. "State equivalent examination" means the test or tests that are provided by the conference of funeral service examining boards and offered by the regulating authority of this state to determine the entry level knowledge and skills of a person regarding funeral directing and embalming.

48. "Supervise" or "supervision" means that a registered embalmer has responsibility for and is within sight and sound of a registered intern who is embalming a dead human body or a student who is assisting in embalming a dead human body.

49. "Temporary container" means a receptacle that is usually made of cardboard, rigid plastic or another similar material and that is designed to hold processed cremated remains until they are placed in an urn or another permanent container.

50. "Transportation protection agreement" means an agreement that PRIMARILY provides or arranges for services that are related to preparing human REMAINS or cremated remains for the purpose of transportation and such subsequent transportation.

50. 51. "Trust funds" means all monies that are deposited on behalf of a beneficiary of a prearranged funeral agreement funded by trust and all accrued net interest. Trust funds shall be considered an account kept in suspense until distributed to the beneficiary, the funeral establishment or the estate of the beneficiary in accordance with this article.

51. 52. "Universal precautions" means the universal blood and fluid precautions recommended by the centers for disease control of the United States public health service to prevent the transmission of bloodborne and bodily fluid-borne infectious diseases.

52. 53. "Unprofessional conduct" includes the following acts, whether occurring in this state or elsewhere:

(a) Committing a class 1 or 2 felony.

(c) Providing false, misleading or deceptive information on an application for registration pursuant to this chapter or on an examination required for registration.

(d) Bribing or offering to bribe, directly or indirectly, a member of the funeral services regulating authority of this state to influence the member's actions in performing the member's duties.

(g) Violating any law of this state or any rule adopted by the department of health services that relates to embalming or preparing dead human bodies.

(h) Certifying falsely to having embalmed or prepared a dead human body that was embalmed by a person other than a registered embalmer making the certification or an intern under the supervision of a registered embalmer making the certification.

(i) Falsely advertising or labeling any service or merchandise with the intention of deceiving the public.

(j) Shipping or delivering any merchandise or supplies that are not the substantial equivalent of or superior in quality to merchandise or supplies previously presented to the purchaser as samples.

(l) Engaging in any conduct or practice that is reasonably related to funeral directing or embalming and that is or may be harmful or dangerous to the health, safety or welfare of the public.

(m) Within a period of five years, having a license, registration or endorsement suspended or revoked by the funeral services regulating authority of this state or any other jurisdiction or surrendering a license, registration or endorsement in lieu of disciplinary action.

53. 54. "Urn" means a receptacle into which processed cremated remains are placed for disposition. END_STATUTE

Sec. 3. Title 32, chapter 12, article 3.1, Arizona Revised Statutes, is amended by adding section 32-1378, to read:

START_STATUTE32-1378. Transportation protection agreements

A transportation protection agreement is not insurance under this chapter or under title 20, chapter 29.END_STATUTE