AMEND FUNERAL LAWS.

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View NCGA Bill Details2017-2018 Session
Senate Bill 479 (Public) Filed Wednesday, March 29, 2017
AN ACT AMENDING THE LAWS PERTAINING TO THE PRACTICE OF FUNERAL SERVICE.
Intro. by Woodard, McInnis.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Mar 30 2017)

SOG comments (1):

Identical bill

Identical to H 529, filed 3/29/17.

Bill History:

S 479

Bill Summaries:

  • Summary date: Mar 30 2017 - View Summary

    Amends GS 90-210.18A by changing the membership of the North Carolina Board of Funeral Service (Board), to reduce the number of members to be appointed by the Governor from nominees recommended by the North Carolina Funeral Directors Association, Inc., from four to three and to increase from two to three the number of members appointed by the Governor upon the recommendation by the Funeral Directors & Morticians Association of North Carolina, Inc. Adds that no more than one member employed by the same funeral establishment or another funeral establishment owned by the same entity can serve on the Board at a given time.

    Amends GS 90-210.23, concerning the Board's powers, as follows. Limits the Board president, vice-president, and secretary to serving no more than two consecutive terms. Updates the types of contact information that licensees, resident trainees, embalming facilities, and funeral service establishments must provide to the Board. No longer requires that the address be placed on a register. Specifies that legally required notices are considered validly given when mailed to either the licensee's last known residential address or email address. Adds the requirement that the Board send all notices relating to investigations and disciplinary proceedings to the residential address provided by the licensee. Sets the reinspection fee at $150. Allows the Board to charge a reinspection fee not to exceed $150 if, after inspection, a funeral establishment is found to have documents required by Funeral Industry Practices to be not in compliance; the fee is per submission. Allows the Board, upon the declaration of a state of emergency, to temporarily waive any provisions of Article 13A (Practice of Funeral Service) in an area specified in the Governor's executive order, resolution, or proclamation.

    Amends GS 20-210.25 to amend the requirements for licensure for the practice of funeral direction to: delete the current educational requirements and now require possession of a degree in mortuary science or graduation from a Funeral Director Program or the equivalents, from a program approved by the Board and accredited by the American Board of Funeral Service Education; require that resident traineeship to have been completed within the last three years; instead of requiring passing a funeral director exam on specified topics, now requires passing scores within the last three years, on an entry level exam administered by the specified entity, an exam on the state laws, standards, and rules, and an exam of pathology; adds the requirement of paying all applicable fees. Specifies that an applicant bears the burden of substantiating to the Board's satisfaction that the applicant meets all of the qualifications. Amends the requirements for licensure for the practice of embalming to: specify that the applicant must possess an associate degree in mortuary science, or the equivalent from a mortuary science program approved by the Board and accredited by the American Board of Funeral Service Education; require the resident traineeship have occurred within the last three years; require that the specified exams have been passed within the past three years and to specify that the exam must include an exam of the standards set forth in the Funeral Industry Practices; and require that the applicant have paid all applicable fees.Specifies that an applicant bears the burden of substantiating to the Board's satisfaction that the applicant meets all of the qualifications. Amends the requirements for licensure to practice funeral service to: require that the applicant have an associate degree in mortuary science, or the equivalent (no longer requires the college be approved by the Board) and no longer requires minimum hours of instruction; requires that the resident traineeship have occurred within the last three years; requires that the specified exams have been passed within the last three years and requires an entry level exam in funeral directing administered by the specified entity instead of an exam on the specified topics and requires an exam on the standards in the Funeral Industry Practices; and to require that the applicant have paid all of the applicable fees. Specifies that an applicant bears the burden of substantiating to the Board's satisfaction that the applicant meets all of the qualifications.

    Amends the requirements of the resident trainee programs to require that the supervisor be in good standing with the Board and have practiced for at least five years. Make conforming changes. Updates the information that the trainee must provide to the board to include an email address and allows the Board to send notices of renewal fees electronically. Prohibits the Board from charging a late fee to any trainee who is actively serving in the US Armed Forces. Allows a resident trainee given an extension of time to file a tax return to be given an extension of time to retain credit equal to the number of days of active deployment. Requires the monthly work report filed by trainees to be filed electronically. Allows the Board to collect a late fee of no more than $50 for each work report filed late. Allows the Board to refuse to issue or renew (in addition to suspend or revoke) a certificate of resident traineeship for violations. Also adds that the Board may place a trainee on probation for violations of the Article or rules. Requires that trainee supervisors be registered as such. Deletes provision concerning how many trainees the Board must register per establishment depending on how many families are served. Adds that a resident trainee or registered supervisor must meet with the Board upon request. Adds a 60-day waiting period before retaking exam when an applicant fails two consecutive times.

    Specifies that continuing education courses must be approved by the Board. Provides that a licensee does not have to satisfy the continuing education requirement for the calendar year in which the license was first obtained, regardless of the timing. Allows the State Bureau of Investigation or the Federal Bureau of Investigation (alternative to the Department of Public Safety) to charge a fee for criminal background checks.

    Expands the circumstances under which a licensee may engage in funeral direction or funeral service without owning, being employed by, or being an agent of a licensed funeral establishment to also include when the licensee: (1) obtains and maintains a professional liability insurance policy with liability limits of at least $1 million. Requires that certificates of professional liability insurance be submitted to the Board within 30 days of the initial registration of the licensee, made available during any inspection, and submitted to the Board upon request; or (2)  provides annually to the Board the name and address of the funeral establishment or embalming facility where embalming is performed, provided that an embalming facility may not be used for storing any dead human body in excess of 24 hours.

    Amends the conditions under which the Board must grant licenses to funeral directors, embalmers, and funeral service licensees licensed in other states to now require the following. (1) The applicant holds an active, valid license in good standing as a funeral director, embalmer, or funeral service licensee issued by a jurisdiction that will reciprocate a North Carolina license to practice as a funeral director, embalmer, or funeral service licensee. Requires that the license, at the time it was issued by the other jurisdiction, to have had equal or greater education, training, and examination requirements. (2) The applicant has demonstrated knowledge of the laws and rules governing the profession in North Carolina through a passing score on the laws and rules exam administered on behalf of the Board. (3) The applicant has submitted proof of the applicant's good moral character. (4) The applicant has practiced in the profession for at least three years in a jurisdiction that will reciprocate a North Carolina license to practice as a funeral director, embalmer, or funeral service licensee.

    Adds the requirement that an individual eligible for a permit for the transportation or removal of a dead human body obtain and maintain a professional liability insurance policy with liability limits of at least $1 million. Requires that certificates of professional liability insurance be submitted to the Board within 30 days of the initial registration of the transporter and submitted to the Board annually as a condition for renewal of each transport permit. Allows the Board to suspend, revoke, or refuse to issue or renew the permit; place the permittee on a term of probation; or accept a civil penalty not to exceed $5,000 in conjunction with a term of probation instead of other disciplinary action when it finds that any person permitted to transport dead human bodies has engaged in any of 11 specified acts, including conviction of a felony or a crime involving fraud or moral turpitude; gross immorality, including being under the influence of alcohol or drugs while handling or transporting dead human bodies; or failing to treat a dead human body with respect at all times.Gives the Board the authority to determine the length and conditions of any period of revocation, suspension, refusal to issue or renew, or probation. Makes a conforming deletion.

    Adds that the Board has the authority to determine the length and conditions of any period of revocation, suspension, refusal to issue or renew, or probation when the specified individuals violate any provision of this Article or any regulations of the Board.

    Adds that a change to the legal structure owning a funeral establishment constitutes a change of ownership only when there is a change of a majority of the funeral establishment's owners, partners, managers, members, operators, or officers and specifies that for these purposes, a funeral establishment means one or more structures on a contiguous piece of property.

    Amends the conditions under which the Board may suspend or revoke, or refuse to renew, a license to include the following circumstances: (1) fraud or misrepresentation in the operation of a licensee's business; (2) failure to refund any insurance proceeds received as consideration in excess of the funeral contract purchase price within 30 days of receipt, excluding interest or growth on funds paid towards funeral goods and services to be provided pursuant to an inflation‑proof preneed contract; (3) failure to provide, within a reasonable time, either the goods and services contracted for or a refund for the price of goods and services paid for but not fulfilled; and (4) violation of GS 58‑58‑97 (concerning the provision of life insurance information upon notification of insured's death). Makes clarifying changes. 

    Makes it a Class 2 misdemeanor to knowingly or willfully abuse, mutilate, or fail to treat with reasonable care a dead human body in a person's custody. Makes exceptions for embalming by a person licensed to practice embalming or funeral service and for a person licensed to practice funeral directing or funeral service to exhibit a dead human body consistent with lawful instructions from the person authorized to dispose of the body.

    Amends GS 90-210.27A, concerning funeral establishments, by adding the following. Allows the Board to suspend specified statutory requirements for up to 180 days when the preparation room of a funeral establishment is damaged or destroyed by fire, weather, or other natural disaster as long as the establishment remains in compliance with specified rules and regulations. Requires an applicant to show good cause to receive a suspension of more than 90 days. Requires a funeral establishment to obtain and maintain a professional liability insurance policy with liability limits of at least $1 million and sets out additional requirements concerning that policy. Requires that human remains be stored in a funeral establishment or licensed crematory at all times when the remains are not in transit or at a gravesite, church, or other facility or residence for the purpose of a visitation or funeral service. Requires unembalmed human remains retained in the custody of a funeral establishment for more than 24 hours to be kept in a refrigeration unit.

    Amends GS 90-210.28 to increase the fee for the establishment and embalming facility reinspection from $100 to $150.

    Amends GS 90-210.29B to require that the Board release, upon request, whether or not an applicant has obtained a passing score within a reasonable amount of time (was, at the time of the request).

    Adds that records, papers, and other documents containing information collected or compiled by or on behalf of the Board as a result of a complaint, investigation, audit, disciplinary matter, or interview in connection with a licensee, permittee, or registrant, or any application for a license, permit, or registration, are not considered public records. Specifies that any notice of hearing or decision rendered in connection with a hearing is a public record.

    Amends GS 90-210.61 to limit the application of the provision that allows a preneed licensee to retain up to 10% of any payments made on a contract when a contract is funded by a trust deposit, to those preneed funeral contracts executed before January 1, 2015.

    Amends GS 90-210.63, concerning the substitution of a license, as follows. Limits the existing language on preneed funeral contacts to those executed before January 1, 2015, and adds provisions concerning when a preneed licensee may retain a 10% administrative fee for preneed funeral contracts executed on or after January 1, 2015. Adds the requirement that any funeral establishment holding a permit under Article 13A of GS Chapter 90 that accepts the transfer of a preneed funeral contract after the death of the preneed contract beneficiary must file the certificate of performance with the Board and mail a copy to the contracting preneed licensee.

    Enacts new GS 90-210.63B allowing a preneed licensee to cancel an insurance‑funded preneed funeral contract by sending written notice to the last known address of the preneed funeral contract purchaser, or, after the purchaser's death, the preneed contract beneficiary or the beneficiary's legal representative if three specified conditions are met, including that the value of all insurance policies does not exceed $500.

    Amends GS 90-210.64 to allow the balance due to be paid directly to a beneficiary when the balance of a preneed funeral fund is $1,000 (was, $100) or less and is payable to the estate of a deceased preneed funeral contract beneficiary and an estate representative has not been appointed. Makes a conforming change to when the balance exceeds $1,000.

    Amends GS 90-210.66 to require the Board to deposit, from the fee for each preneed funeral contact, at least $2, but no more than $10 (was, deposit $2) into the recovery fund. Allows the Board to set the amount of the deposit as it deems necessary (was, may suspend the deposits).

    Amends GS 90-210.67 to amend where a preneed sales licensee may sell preneed funeral contracts or preneed insurance policies. Specifies that on or after January 1, a license for a preneed funeral establishment license may be renewed by paying a late fee of no more than $100 in addition to the annual renewal fee. Deletes the current provisions related to the required surety bond for a preneed establishment license and enacts new provisions containing surety requirements. Specifies that on or after January 1, a license for a preneed sales license may be renewed by paying a late fee of no more than $25 in addition to the annual renewal fee. 

    Amends GS 90-210.68 (a) to clarify that the provisions apply to transactions and policies used to fund preneed funeral contracts. Adds the requirement that, by March 31, tthat each preneed licensee prepare and submit an annual report on its preneed funeral contract sales and performance of preneed funeral contracts and submit the report to the Board in a manner and form prescribed by the Board. Makes provisions in (d) applicable to companies that issue or assign insurance policy proceeds.

    Amends GS 20-210.69 to no longer allow the Board to take the specified actions against an applicant for licensure or licensee for a conviction of a crime involving fraud or moral turpitude, but allow the action for fraud or misrepresentation in the operation of a licensee's business. Allows the Board to determine conditions and length of probation, revocation, suspension, or refusal to issue or renew a license.

    Amends GS 90-210.73 to add that financial information used to demonstrate solvency in connection with a required bond is not public record.

    Repeals GS 90-210.80 through GS 90-210.107, which contained statutes related to mutual burial associations, effective when the act becomes law. Provides that all burial association assessments, dues, and payments cease when this act becomes law. Requires the Board to transfer all burial association funds to the Preneed Recovery Fund, on or before December 31, 2017. Requires the Board to distribute certificates of funds for funeral services, to be drawn from the Preneed Recovery Fund, that are equivalent to amounts owed by the burial association to the parties entitled to the funds. Requires the distribution of certificates of funds for funeral services to be completed by December 31, 2018.

    Amends GS 90-210.123 to require the owner or manager of a cremation facility to be a licensed funeral director or funeral service licensee. Also requires applications for licensure to specify the manager's funeral directing or funeral service license number. Allows, on or after January 1, a license or permit to be renewed by paying a late fee in addition to the renewal fee. Amends the conditions under which the Board may take disciplinary action against crematory licensees or applicants to include instances of fraud or misrepresentation in the operation of a licensee's business, violations of funeral industry practices, and for allowing anyone other than a licensee or a crematory technician to perform a cremation. Allows the Board to determine conditions and length of probation, revocation, suspension, or refusal or issue or renew a license. Allows inspectors of the Board (instead of members of the Board's staff) to serve notices, subpoenas, and other papers.

    Amends GS 90-210.124 by adding that under GS 130A‑415(c) or (j), upon such a waiver, and upon the Commissioner of Anatomy declining or failing to request delivery of the dead body, the director of social services having the duty to dispose of the human remains becomes vested with all interests and rights to the dead body and must authorize and arrange for disposition, including cremation.

    Amends GS 90-210.125 to require that the cremation authorization form statement concerning pacemakers specify that a representation that the human remains do not contain a pacemaker that is not approved for cremation by the pacemaker's manufacturer or proper regulating agency or any other material or implant that may be potentially hazardous to the person performing the cremation.

    Amends GS 90-210.129 to specify that the existing language applies to deaths occurring in the state and expands those that may certify the death to include any person authorized by law to sign a death certificate under the supervision of a physician. Adds a subsection specifying documents that must be obtained for any death occurring outside of the state before a body can be cremated. Limits the prohibition on cremating bodies with pacemakers or defibrillators to those that have not be approved by cremation by the manufacturer or regulating authority. Allows for the following remains to be cremated simultaneously with written direction of the authorized agent: the human remains of multiple fetuses from the same mother and the same birth, or the human remains of triplets up to the age of one year old from the same mother and the same birth.

    Amends GS 90-210.132 to expand the fees that may be charged by making several fees applicable to hydrolysis. Increases the reinspection fee from $100 to $150. 

    Enacts new GS 90-210.136 requiring licensure to hydrolyze human remains. Subjects licensees to the same requirements as those for the licensing of crematories. Gives the Board the same powers over hydrolysis licensees as it has over cremation. Provides for the disposal of remains. 

    Amends GS 130A-415 to exempt licensed funeral directors and funeral service licensees from the requirements to make reasonable efforts to contact relatives of the deceased or other persons who may wish to claim the body for final disposition. Require a person possessing a body to notify the Commission of Anatomy if the body remains unclaimed for final disposition (was, unclaimed for 10 days). Adds that a dead body is deemed unclaimed if: (1) no individual notifies the person in possession of the dead body within 10 days of the date of death that the individual wishes to dispose of the dead body or (2) all individuals who have expressed interest in arranging for disposition of the dead body have ceased communicating with the person in possession of the dead body for five days, at least 10 days have passed from the date of death, and the person in possession of the dead body has used reasonable efforts to contact all individuals interested in arranging for final disposition. Makes conforming changes. Requires that if the deceased is not a resident of this State, or if the county of residence is unknown, funeral expenses are to borne by the county in which the death occurred or, if the county of residence and death of the decedent are unknown, the county where the deceased was located. Makes conforming changes. Adds that any funeral director or funeral service licensee doing business within the State that has physical possession of a dead body must make reasonable efforts to contact relatives of the deceased or other persons who may wish to claim the body for final disposition. Sets out requirements for handling unclaimed remains. Adds that if the Commissioner of Anatomy fails to request delivery of the abandoned dead body within two days of receipt of the required notification, or if the Commissioner of Anatomy declines delivery of the abandoned dead body, the funeral director or funeral services licensee must notify the director of social services of the county where the abandoned dead body is located. Sets out notice requirements. Requires the director of social services to then arrange for final disposition of the abandoned dead body and all interests in and rights to the abandoned dead body vest in the director of social services, who must then arrange for prompt final disposition of the abandoned dead body. Sets out procedure for claiming funeral expenses. 

    Amends GS 130A-420 to add that unless expressly prohibited by an order of appointment, a guardian of the person has the authority to direct the final disposition of the remains of the ward through the specified methods if executed before the ward's death. Adds that under GS 130A‑415(c) or (j), upon such a waiver, and upon the Commission of Anatomy declining or failing to request delivery of the abandoned dead body, the director of social services of the county in which the dead body is located becomes vested with all interests and rights to the dead body and must authorize and arrange for disposition. Once the burial of an individual is completed under the statute, the method and location of disposition must not be changed unless otherwise authorized by law or by a court order upon a showing of good cause.

    Repeals GS 58-58-97(d), which deemed any licensee or employee of a licensed funeral establishment who makes a false request for life insurance information or failed to do that required by subsection (c) of the statute as guilty of fraud or misrepresentation and unfit to practice funeral service.

    Includes a severability clause.


  • Summary date: Mar 29 2017 - View Summary

    To be summarized.