GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 673
Finance Committee Substitute Adopted 6/7/89

Short Title:  Modify Funeral Practice Act.	(Public)
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Sponsors:
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Referred to:
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March 28, 1989

A BILL TO BE ENTITLED
AN ACT TO MAKE CHANGES IN THE PRACTICE OF FUNERAL SERVICE ACT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 90-210.18 reads as rewritten:
"§ 90-210.18. Construction of Article; State Board; members; election; qualifications; term; vacancies.
(a)	The General Assembly declares that the practice of funeral service affects the public health, safety and welfare, and is subject to regulation and control in the public interest. The public interest requires that only qualified persons be permitted to practice funeral service in North Carolina, and that the profession merit the confidence of the public. This Article shall be liberally construed to accomplish these ends.
(b)	The North Carolina Board of Mortuary Science is created as a continuation of the North Carolina Board of Embalmers and Funeral Directors. The Board is the agency for regulation of the practice of funeral service in this State. The Board shall have eight members as follows:
(1) 	Four funeral service licensees or persons holding both funeral director's license and an embalmer's license,
(2) 	Two persons holding a funeral director's license or a funeral service license, and
(3) 	Two public members.
A member's term shall expire on December 31 or when his successor has been duly elected or appointed. A public member's term shall be four years, and he may not serve more than two complete terms. An elected member's term shall be three years, and he may not serve more than two complete consecutive terms.
The six seats on the Board for licensees shall be filled in an election in which every person licensed to practice embalming, funeral directing, or funeral service in this State may vote. No licensee may be nominated, elected, or serve unless he holds a North Carolina license in the class designated for the seat and unless he is engaged in full-time employment in this State in a practice authorized by his license. Any vacancy occurring in an elective seat on the Board shall be filled for the unexpired term by majority vote of the remaining Board members.
The public members of the Board shall have full voting authority. They shall be appointed by the Governor and may neither be licensed under this Article nor employed by a person who is. A vacancy occurring in the public members' seats shall be filled for the unexpired term by the Governor.
(c)	Nominations and elections of members of the North Carolina State Board of Mortuary Science shall be as follows:
(1) 	An election shall be held each year to elect two persons for membership on the Board of Mortuary Science, each to take office on the first day of January following the election. If in any year the election of a member of the Board is not completed by January 1, the member elected that year shall take office immediately after completion of the election.
(2) 	Every embalmer, funeral director and funeral service licensee with a current North Carolina license shall be eligible to vote in all elections. The holding of such a license to practice in North Carolina shall constitute registration to vote in such elections. The list of licensed embalmers, funeral directors and funeral service licensees shall constitute the registration list for elections.
3) 	All elections shall be conducted by the State Board of Mortuary Science which is hereby constituted a Board of Mortuary Science Elections. If a member of the State Board of Mortuary Science whose position is to be filled at any election is nominated to succeed himself and does not withdraw his name, he shall be disqualified to serve as a member of the Board of Mortuary Science Elections for that election and the remaining members of the Board of Mortuary Science Elections shall proceed and function without his participation.
(4) 	Nomination of candidates for election shall be made to the Board of Mortuary Science Elections by a written petition signed by not less than 20 embalmers, funeral directors or funeral service licensees licensed to practice in North Carolina, and filed with said Board of Mortuary Science Elections subsequent to the first day of May of the year in which the election is to be held and not later than midnight of the first day of August of such year, or not later than such earlier date (not before July 1) as may be set by the Board of Mortuary Science Elections: Provided, that not less than 10 days' notice of such earlier date shall be given to all embalmers, funeral directors and funeral service licensees qualified to sign a petition of nomination.
(5) 	Any person who is nominated as provided in subdivision (4) above may withdraw his name by written notice delivered to the Board of Mortuary Science Elections or its designated secretary at any time prior to the closing of the polls in any election.
(6)	Following the close of nominations, there shall be prepared, under and in accordance with such rules and regulations as the Board of Mortuary Science Elections shall prescribe, ballots containing identification of the seats for election and, in alphabetical order, the names of all nominees for each seat. Each ballot shall have such method of identification, and such instructions and requirements printed thereon, as shall be prescribed by the Board of Mortuary Science Elections at such time as may be fixed by the Board of Mortuary Science Elections a ballot and a return official envelope addressed to said Board shall be mailed to each embalmer, funeral director and funeral service licensee licensed to practice in North Carolina, together with a notice by said Board designating the latest day and hour for  return mailing and containing such other items as such Board may see fit to include. The said envelope shall bear a serial number and shall have printed on the left portion of its face the following:
		‘Serial No. of Envelope..........................
		Signature of Voter...............................
		Address of Voter.................................
		.................................................
	(Note: The enclosed ballot is not valid unless the signature of the voter is on this envelope).' The Board of Mortuary Science Elections may cause to be printed or stamped or written on said envelope such additional notice as it may  see fit to give. No ballot shall be valid or shall be counted in an election unless within the time hereinafter provided it has been delivered to said Board by hand or by mail and shall be sealed. The said Board by rule may make provision for replacement of lost or destroyed envelopes or ballots upon making proper provisions to safeguard against abuse.
(7) 	The date and hour fixed by the Board of Mortuary Science  Elections as the latest time for delivery by hand or mailing  of said return ballots shall be not earlier than the 10th day following the mailing of the envelopes and ballots to the voters.
(8) 	The said ballots shall be canvassed by the Board of Mortuary Science Elections beginning at one o'clock p.m. on a day and at a place set by said Board and announced by it in the notice accompanying the sending out of the ballots and envelopes, said date to be not later than four days after the date fixed by the Board for the closing of the balloting. The canvassing shall be made publicly and any licensed embalmer, funeral director or funeral service licensee may be present. The counting of ballots shall be conducted as follows: The envelopes shall be displayed to the persons present and an opportunity shall be given to any person present to challenge the qualification of the voter whose signature appears on the envelope or to challenge the validity of the envelope. Any envelope (with enclosed ballot) challenged shall be set aside, and the challenge shall be heard later or at that time by said Board. After the envelopes have been so exhibited, those not challenged shall be opened and the ballots extracted therefrom, insofar as practicable without showing the marking on the ballots, and there shall be a final and complete separation of each envelope and its enclosed ballot. Thereafter each ballot shall be presented for counting, shall be displayed and, if not challenged, shall be counted. No ballot shall be valid if it is marked for more nominees than there are positions to be filled in that election: Provided, that no ballot shall be rejected for any technical error unless it is impossible to determine the voter's choices or choice from the ballot. The counting of ballots shall be continued until completed. During the counting, challenge may be made to any ballot on the grounds only of defects appearing on the face of the ballot. The said Board may decide the challenge immediately when it is made or it may put aside the ballot and determine the challenge upon the conclusion of the counting of the ballots.
(9) 	a. Election shall be determined by a majority of the votes cast.  As used in this subdivision ‘category I' refers to the seat held by a funeral service licensee or a person holding both a funeral director's license and an embalmer's license, and ‘category II' refers to the seat held by a funeral director or a funeral service licensee.  A majority shall be determined:
1.	In an election to fill one seat in category I and one seat in category II, and if there are two or more candidates for a category, the majority shall be determined by dividing the total vote cast for all candidates in the category by two.  An excess of the sum so ascertained shall be a majority.
2.	In an election to fill two seats in the same category, and if there are more than two candidates, the majority shall be determined by dividing the total vote cast for all candidates by two and by dividing the result by two.  Any excess of the sum so ascertained shall be a majority.  If more than two candidates obtain a majority the two having the highest vote shall be declared elected.
b.	If there is a failure to obtain a majority of the votes cast for any seat the following procedures shall apply:
1.	In an election to fill one seat in category I and one seat in category II, and if no candidate receives a majority in a category, the candidate receiving the highest number of votes in that category shall be declared elected unless the candidate receiving the second highest number of votes, within 10 days of having been notified by the Board of the vote total, shall request a second election.  In the second election, the names of the candidates who received the highest and the next highest number of votes shall appear on the ballot.
2.	In an election to fill two seats in the same category, and if no candidate receives a majority, the two candidates receiving the highest number of votes shall be declared elected unless the candidate receiving the next highest number of votes, within 10 days of having been notified by the Board of the vote total, shall request a second election.  In the second election the names of the two candidates who received the highest number of votes in the first election and the name of the candidate who received the next highest number of votes shall appear on the ballot, and the two candidates who receive the highest number of votes in the second election shall be declared elected.  If in the first election only one candidate fails to receive a majority, the candidate receiving the highest number of votes, but not a majority, shall be declared elected unless the candidate receiving the next highest number of votes, within 10 days of having been notified by the Board of the vote total, shall request a second election.  In the second election the name of the candidate who received the highest number of votes, but not a majority, in the first election and the name of the candidate who received the next highest number of votes shall appear on the ballot, and the candidate who receives the higher number of votes in the second election shall be declared elected.
c.	In any election if there is a tie between candidates the tie shall be resolved by a vote of the Board, provided that if a member of the Board is one of the candidates in the tie he may not participate in such vote.
(10)	In the event there shall be required a second election, there shall be followed the same procedure as outlined in the paragraphs above subject to the same limitations and requirements.
(11)	In the case of the death or withdrawal of a candidate prior to the closing of the polls in any election, he shall be eliminated from the contest and any votes cast for him shall be disregarded. If, at any time after the closing of the period for nominations, because of lack of plural or proper nominations, or death, or withdrawal, or disqualification or any other reason, there shall be (i) only one candidate for a position, he shall be declared elected by the Board of Mortuary Science Elections, or (ii) no candidate for a position, the position shall be filled by the State Board of Mortuary Science. In the event of the death or withdrawal of a candidate after election but before taking office, the position to which he was elected shall be filled by the State Board of Mortuary Science. In the event of the death or resignation of a member of the State Board of Mortuary Science, after taking office, his position shall be filled for the unexpired term by the State Board of Mortuary Science.
(12)	An official list of all licensed embalmers, funeral directors and funeral service licensees shall be kept at an office of the Board of Mortuary Science Elections and shall be open to the inspection of any person at all times. Copies may be made by any licensed embalmer, funeral director or funeral service licensee. As soon as the voting in any election begins, a list of the licensed embalmers, funeral directors, and funeral service licensees shall be posted in such office of said Board and indication by mark or otherwise shall be made on that list to show whether a ballot-enclosing envelope has been returned.
(13)	All envelopes enclosing ballots and all ballots shall be preserved and held separately by the Board of Mortuary Science Elections for a period of six months following the close of an election.
(14)	From any decision of the Board of Mortuary Science Elections relative to the conduct of such elections, appeal may be taken to the courts in the manner otherwise provided by Chapter 150B of the General Statutes of North Carolina.
(15)	The Board of Mortuary Science Elections is authorized to make rules and regulations relative to the conduct of these elections, provided same are not in conflict with the provisions of this section and provided that notice shall be given to all licensed embalmers, funeral directors, and funeral service licensees.
(d)	The Board of Mortuary Science Elections is authorized to appoint such secretary or secretaries and/or assistant secretary or assistant secretaries to perform such functions in connection with such nominations and elections as said Board shall determine, provided that any protestant or contestant shall have the right to a hearing by said Board in connection with any challenge of a voter, or an envelope, or a ballot or the counting of an election. Said Board is authorized to designate an office or offices for the keeping of lists  of registered embalmers, funeral directors and funeral service licensees, for the issuance and receipt of envelopes and ballots."
Sec. 2.  G.S. 90-210.23 reads as rewritten:
"§ 90-210.23. Powers and duties of the Board.
(a)	The Board is authorized to adopt and promulgate such rules and regulations for transaction of its business and for the carrying out and enforcement of the provisions of this Article as may be necessary and as are consistent with the laws of this State and of the United States.
(a1)	The Board may adopt and enforce any or all of the provisions of the Funeral Trade Regulation Rule, 16 CFR 453, as adopted and promulgated by the Federal Trade Commission, and as subsequently amended and recodified.
(b)	The Board shall elect from its members a president, a vice- president and a secretary, no two offices to be held by the same person. The president and vice-president and secretary shall serve for one year and until their successors shall be elected and qualify. The Board shall have authority to engage adequate staff as deemed necessary to perform its duties.
(c)	The members of the Board shall serve without compensation provided that such members shall be reimbursed for their necessary traveling expenses and the necessary expenses incident to their attendance upon the business of the Board, and in addition thereto they shall receive per diem and expense reimbursement as provided in G.S. 93B-5 for every day actually spent by such member upon the business of the Board. All expenses, salaries and per diem provided for in this Article shall be paid from funds received under the provisions of this Article and shall in no manner be an expense to the State.
(d)	Every person licensed by the Board and every resident trainee shall furnish all information required by the Board reasonably relevant to the practice of the profession or business for which he is a licensee or resident trainee, and every funeral service establishment shall be subject to inspection by the Board at all reasonable times and shall furnish all information required by the Board reasonably relevant to the business therein conducted. Every licensee, resident trainee and funeral service establishment shall provide the Board with his or its current post-office address which shall be placed on the appropriate register and all notices required by law or by any rule or regulation of the Board to be mailed to any licensee, resident trainee or funeral service establishment shall be validly given when mailed to the address so provided.
The Board is empowered to hold hearings in accordance with the provisions of this Article and of Chapter 150B to subpoena witnesses and to administer oaths to or receive the affirmation of witnesses before the Board.
(e)	The Board is empowered to regulate and inspect, according to law, funeral service establishments, their operation and the licenses under which they are operated, and to enforce as provided by law the rules, regulations and requirements of the Division of Health Services and of the city, town or county wherein any such funeral service establishment is maintained and operated.  The Board may grade funeral establishments on their compliance with the laws and rules governing their operation and may issue inspection certificates indicating such grade. Inspection certificates shall be displayed in a conspicuous place in the funeral establishment.
(f)	The Board may establish, supervise, regulate and control programs for the resident trainee. It may approve schools of mortuary  science or funeral service, graduation from which is required by this  Article as a qualification for the granting of any license, and may establish essential requirements and standards for such approval of mortuary science or funeral service schools.
(g)	Schools in North Carolina for teaching mortuary science which are approved by the Board shall have extended to them the same privileges as to the use of bodies for teaching embalming and restorative art and for dissecting as those granted in this State to medical colleges, but such bodies shall be obtained through the same agencies which provide bodies for medical colleges.
(h)	The Board shall adopt a common seal.
(i)	The Board may perform such other acts and exercise such other powers and duties as may be provided elsewhere in this Article or otherwise by law and as may be necessary to carry out the powers herein conferred."
Sec. 3.  G.S. 90-210.25 reads as rewritten:
"§ 90-210.25. Licensing.
(a)	Qualifications, Examinations, Resident Traineeship and  Licensure. –
(1) 	To be licensed for the practice of funeral directing under this Article, a person must:
a. 	Be at least 18 years of age,
b. 	Be of good moral character,
c. 	Have completed a minimum of 32 semester hours or 48 quarter hours of instruction in a course of study including the subjects set out in items e.1. and 2. of this subsection in a mortuary science college approved by the Board, or be a graduate of a one-year program of a mortuary science college approved by the Board.
d. 	Have completed 12 consecutive months of resident traineeship as funeral director, pursuant to the procedures and conditions set out in G.S. 90-210.25(a)(4), either before or after satisfying the educational requirement under item c. of this subsection, and
e. 	Have passed an oral or written funeral director examination on the following subjects:
1.	Basic health sciences, including microbiology, hygiene, and public health,
2.	Funeral service administration, including accounting, psychology, funeral principles and directing, and
3.	Laws of North Carolina and rules of the Board of Mortuary Science and other agencies dealing with the care, transportation and disposition of dead human bodies.
(2) 	To be licensed for the practice of embalming under this Article, a person must:
a. 	Be at least 18 years of age,
b. 	Be of good moral character,
c. 	Be a graduate of a mortuary science college approved by the Board.
d.	Have completed 12 consecutive months of resident traineeship as an embalmer pursuant to the procedures and conditions set out in G.S. 90-210.25(a)(4), either before or after satisfying the educational requirement under item c. of this subsection, and
e. 	Have passed an oral or written embalmer examination on the following subjects:
1.	Basic health sciences, including anatomy, chemistry, microbiology, pathology and forensic pathology,
2.	Funeral service sciences, including embalming and restorative art, and
3.	Laws of North Carolina and rules of the Board of Mortuary Science and other agencies dealing with the care, transportation and disposition of dead human bodies.
(3)	To be licensed for the practice of funeral service under this Article, a person must:
a. 	Be at least 18 years of age,
b. 	Be of good moral character,
c. 	Be a graduate of a mortuary science college approved by the Board.
d. 	Have completed 12 consecutive months of resident traineeship as a funeral service licensee, pursuant to the procedures and conditions set out in G.S. 90-210.25(a)(4), either before or after satisfying the educational requirement under item c. of this subsection, and
e. 	Have passed an oral or written funeral service                    examination on the following subjects:
1.	Basic health sciences, including anatomy, chemistry, microbiology, pathology, forensic pathology hygiene and public health,
2.	Funeral service sciences, including embalming and restorative art,
3.	Funeral service administration, including accounting, psychology, funeral principles and directing, and
4.	Laws of North Carolina and rules of the Board of Mortuary Science and other agencies dealing with the care, transportation and disposition of dead human bodies.
(4) 	a.	A person desiring to become a resident trainee shall apply to the Board on a form provided by the Board. The application shall state that the applicant is not less than 18 years of age, of good moral character, and is the graduate of a high school or the equivalent thereof, and shall indicate the licensee under whom the applicant expects to train. A person training to become an embalmer may serve under either a licensed embalmer or a funeral service licensee. A person training to become a funeral director may serve under either a licensed funeral director or a funeral service licensee. A person training to become a funeral service licensee shall serve under a funeral service licensee. The application must be sustained by oath of the applicant and be accompanied by the appropriate fee. When the Board is satisfied as to the qualifications of an applicant it shall instruct the secretary to issue a certificate of resident traineeship.
b. 	When a resident trainee leaves the proctorship of the licensee under whom the trainee has worked, the licensee shall file with the Board an affidavit showing the length of time served with the licensee by the trainee, and the affidavit shall be made a matter of record in the Board's office. The licensee shall deliver a copy of the affidavit to the trainee.
c. 	A person who has not completed the traineeship and wishes to do so under a licensee other than the one whose name appears on the original certificate may reapply to the Board for approval, without payment of an additional fee.
d.	A certificate of resident traineeship shall be signed by the resident trainee and upon payment of the renewal fee shall be renewable one year after the date of original registration; but the certificate may not be renewed more than one time. The Board shall mail to each registered trainee at his last known address a notice that the renewal fee is due and that, if not paid within 30 days of the notice, the certificate will be canceled. A penalty, in addition to the renewal fee, shall be charged for a late renewal, but the renewal of the registration of any resident trainee who is engaged in the active military service of the United States at the time renewal is due may, at the discretion of the Board, be held in abeyance for the duration of that service without penalties. No credit shall be allowed for the 12-month period of resident traineeship that shall have been completed more than three years preceding the examination for a license.
e. 	All registered resident trainees shall report to the Board at least every three months during traineeship upon forms provided by the Board listing the work which has been completed during the preceding three months of resident traineeship. The data contained in the reports shall be certified as correct by the licensee under whom the trainee has served during the period and by the licensed person who is managing the funeral service establishment. Each report shall list the following:
1.	For funeral director trainees, the conduct of any funerals during the relevant time period,
2.	For embalming trainees, the embalming of any bodies during the relevant time period,
3.	For funeral service trainees, both of the activities named in 1 and 2 of this subsection, engaged in during the relevant time period.
f.	To meet the resident traineeship requirements of G.S. 90-210.25(a)(1), G.S. 90-210.25(a)(2) and G.S. 90-210.25(a)(3) the following must be shown by the affidavit(s) of the licensee(s) under whom the trainee worked:
1.	That the funeral director trainee has, under supervision, assisted in directing at least 25 funerals during the resident traineeship,
2.	That the embalmer trainee has, under supervision, assisted in embalming at least 25 bodies during the resident traineeship,
3.	That the funeral service trainee has, under supervision assisted in directing at least 25 funerals and, under supervision, assisted in embalming at least 25 bodies during the resident traineeship.
g. 	The Board may suspend or revoke a certificate of resident traineeship for violation of any provision of this Article.
h. 	Each sponsor for a registered resident trainee must during the period of sponsorship be actively employed with a funeral establishment. The traineeship shall be a primary vocation of the trainee.
i. 	Only one resident trainee may register and serve at any one time under any one person licensed under this Article.
j.  	The Board shall not register a resident trainee unless it is shown that the funeral establishment where he is to be employed had at least 35 funerals during the 12 months immediately preceding the date of the application.
k. 	The Board shall not register more than one resident trainee for each 150 funerals had by the funeral establishment during the 12 months immediately preceding the date of the application.
(5) 	The Board by regulation may recognize other examinations that the Board deems equivalent to its own.
		All licenses shall be signed by the president and secretary of the Board and the seal of the Board affixed thereto. All licenses shall be issued, renewed or duplicated for a period  not exceeding one year upon payment of the renewal fee, and all licenses, renewals or duplicates thereof shall expire and terminate the thirty-first day of December following the date of their issue unless sooner revoked and canceled; provided, that the date of expiration may be changed by unanimous consent of the Board and upon 90 days' written notice of such change to all persons licensed for the practice of funeral directing, embalming and funeral service in this State.
		The holder of any license issued by the Board who shall fail to renew the same on or before January 31 of the calendar year for which the license is to be renewed shall have forfeited and surrendered the license as of that date.  No license forfeited or surrendered pursuant to the preceding sentence shall be reinstated by the Board unless it is shown to the Board that the applicant has, throughout the period of forfeiture, engaged full time in another state of the United States or the District of Columbia in the practice to which his North Carolina license applies and has completed for each such year continuing education substantially equivalent in the opinion of the Board to that required of North Carolina licensees; or has completed in North Carolina a total number of hours of accredited continuing education computed by multiplying five times the number of years of forfeiture; or has passed the North Carolina examination for the forfeited license.  No additional resident traineeship shall be required.  The applicant shall be required to pay all delinquent annual renewal fees and a reinstatement fee.  The Board may waive the provisions of this section for an applicant for a forfeiture which occurred during his service in the armed forces of the United States provided he applies within six months following severance therefrom.
		All licensees now or hereafter licensed in North Carolina shall take courses of study in subjects relating to the practice of the profession for which they are licensed, to the end that new techniques, scientific and clinical advances, the achievements of research and the benefits of learning and reviewing skills will be utilized and applied to assure proper service to the public.
		As a prerequisite to the annual renewal of a license, the licensee must complete, during the year immediately preceding renewal, at least five hours of continuing education courses, approved by the Board prior to enrollment; except that for renewals for calendar year 1980 the required length of study shall be a total of 15 hours in the three years immediately preceding January 1, 1980.
		The Board shall not renew a license unless fulfillment of the continuing education requirement has been certified to it on a form provided by the Board, but the Board may waive this requirement for renewal in cases of certified illness or undue hardship or where the licensee lives outside of North Carolina and does not practice in North Carolina, and the Board shall waive the requirement for all licensees who have been licensed in North Carolina for a continuous period of 25 years or more.
		The Board shall cause to be established and offered to the licensees, each calendar year, at least five hours of continuing education courses in subjects encompassing the license categories of embalming, funeral directing and funeral service. The Board may charge licensees attending these courses a reasonable registration fee in order to meet  the expenses thereof and may also meet those expenses from other funds received under the provisions of this Article.
		Any person who having been previously licensed by the Board as a funeral director or embalmer prior to July 1, 1975, shall not be required to satisfy the requirements herein for licensure as a funeral service licensee, but shall be entitled to have such license renewed upon making proper application therefor and upon payment of the renewal fee provided by the provisions of this Article. Persons previously licensed by the Board as a funeral director may engage in funeral directing, and persons previously licensed by the Board as an embalmer may engage in embalming. Any person having been previously licensed by the Board as both a funeral director and an embalmer may upon application therefor receive a license as a funeral service licensee.
(b)	Persons Licensed under the Laws of Other Jurisdictions. – 
(1) 	The Board shall grant licenses to funeral directors, embalmers and funeral service licensees, licensed in other states, territories, the District of Columbia, and foreign countries, when it is shown that the applicant holds a valid license as a funeral director, embalmer or funeral service licensee issued by the other jurisdiction, has demonstrated knowledge of the laws and regulations governing the profession in North Carolina and has submitted proof of his good moral character; and either that the applicant has continuously practiced the profession in the other jurisdiction for at least three years immediately preceding his application, or the Board has determined that the licensing requirements for the other jurisdiction are substantially similar to those of North Carolina.
(2) 	The Board shall periodically review the mortuary science licensing requirements of other jurisdictions and shall determine which licensing requirements are substantially similar to the requirements of North Carolina.
(3) 	The Board may issue special permits, to be known as courtesy cards, permitting nonresident funeral directors, embalmers and funeral service licensees to remove bodies from and to arrange and direct funerals and embalm bodies in this State, but these privileges shall not include the right to establish a place of business in or engage generally in the business of funeral directing and embalming in this State. Provided, no special permits may be issued to nonresident funeral directors, embalmers, and funeral service licensees from states that do not issue similar courtesy cards to persons licensed in North Carolina pursuant to this Article.
(c)	Registration, Filing, Handling and Transportation. – The holder of any license granted by this State for those within the funeral service profession or renewal thereof provided for in this Article shall cause registration to be filed in the office of the board of health of the county or city in which he practices his profession, or if there be no board of health in such county or city, at the office of the clerk of the superior court of such county. All such licenses, certificates, duplicates and renewals thereof shall be displayed in a conspicuous place in the funeral establishment where the holder renders service. It shall be unlawful for any railway agent, express agency, baggage master, conductor or other person acting as such, to receive the dead  body of any person for shipment or transportation by railway or other public conveyance, to a point outside of this State, unless said body be accompanied by a removal or shipping permit.  Any licensee who handles or takes custody of a dead human body and who has been notified to observe communicable disease control measures adopted pursuant to G.S. 130A-144 shall provide written notification of the required precautions to all individuals who subsequently handle the body."
(d)	Establishment Permit. –
(1) 	No person, firm or corporation shall conduct, maintain, manage or operate a funeral establishment unless a permit for that establishment has been issued by the Board and is conspicuously displayed in the establishment. Each funeral establishment at a specific location shall be deemed to be a separate entity and shall require a separate permit and compliance with the requirements of this Article.
(2) 	A permit shall be issued when:
a. 	It is shown that the funeral establishment has in charge a person, known as a manager, licensed for the practice of funeral directing or funeral service, who shall not be permitted to manage more than one funeral establishment,
b. 	The Board receives a list of the names of all part-time and full-time licensees employed by the establishment,
c. 	It is shown that the funeral establishment satisfies the requirements of G.S. 90-210.27A, and
d. 	The Board receives payment of the permit fee.
(3) 	Applications for funeral establishment permits shall be made on forms provided by the Board and filed with the Board by the owner, a partner or an officer of the corporation by January 1 of each year, and shall be accompanied by the application fee or renewal fee, as the case may be. All permits shall expire on December 31 of each year.
		A penalty for late renewal, in addition to the regular renewal fee, shall be charged for renewal of registration coming after the first day of February.
(4) 	The Board may suspend or revoke a permit when an owner, partner or officer of the funeral establishment violates any  provision of this Article or any regulations of the Board, or when any agent or employee of the funeral establishment, with the consent of any person, firm or corporation operating the funeral establishment, violates any of those provisions, rules or regulations.
(5) 	Funeral establishment permits are not transferable. A new application for a permit shall be made to the Board within 30 days of a change of ownership of a funeral establishment.
(e)	Revocation; Suspension; Compromise; Disclosure. –
(1) 	Whenever the Board finds that an applicant for a license or a person to whom a license has been issued by the Board is guilty of any of the following acts or omissions and the Board also finds that the person has thereby become unfit to practice, the Board may suspend or revoke the license or refuse to issue or renew the license, in accordance with the  procedures set out in Chapter 150B:
a. 	Conviction of a felony or a crime involving fraud or moral turpitude;
b. 	Fraud or misrepresentation in obtaining or renewing a license or in the practice of funeral service;
c. 	False or misleading advertising as the holder of a license;
d. 	Solicitation of dead human bodies by the licensee, his agents, assistants, or employees; but this paragraph shall not be construed to prohibit general advertising by the licensee;
e. 	Employment directly or indirectly of any resident trainee agent, assistant or other person, on a part-time or full-time basis, or on commission, for the purpose of calling upon individuals or institutions by whose influence dead human bodies may be turned over to a particular licensee;
f. 	The direct or indirect giving of certificates of credit or the payment or offer of payment of a commission by the licensee, his agents, assistants or employees for the purpose of securing business;
g. 	Gross immorality, including being under the influence of alcohol or drugs while practicing funeral service;
h. 	Aiding or abetting an unlicensed person to perform services under this Article, including the use of a picture or name in connection with advertisements or other written material published or caused to be published by the licensee;
i. 	Using profane, indecent or obscene language in the presence of a dead human body, and within the immediate hearing of the family or relatives of a deceased, whose body has not yet been interred or otherwise disposed of;
j. 	Violating or cooperating with others to violate any of the provisions of this Article or of the rules and regulations of the Board;
k. 	Violation of any State law or municipal or county ordinance or regulation affecting the handling, custody, care or transportation of dead human bodies;
l. 	Refusing to surrender promptly the custody of a dead human body upon the express order of the person lawfully entitled to the custody thereof;
m. 	Knowingly making any false statement on a certificate of death;
n. 	Indecent exposure or exhibition of a dead human body while in the custody or control of a licensee.  This offense shall include the failure to comply with any of the following standards:  At all times except during embalming or restorative work, bodies shall be in separate, closed containers of metal, wood, cardboard or other rigid material, or otherwise completely covered by fabric or other opaque material and placed on separate mortuary stretchers or cots; except that bodies remaining in a vehicle for more than 24 hours shall be in such separate, closed containers, and bodies shall be placed in such separate, closed containers to avoid the placement of mortuary stretchers or cots directly atop each other.  This subsection shall not prohibit an open casket for the custom of viewing a body.
		In any case in which the Board is entitled to suspend, revoke or refuse to renew a license, the Board may accept from the licensee an offer in compromise to pay a penalty of not more than five thousand dollars ($5,000). The Board may either accept a compromise or revoke or refuse to renew a license, but not both.
(2) 	Where the Board finds that a licensee is guilty of one or more of the acts or omissions listed in subsection (e)(1) of  this section but it is determined by the Board that the licensee has not thereby become unfit to practice, the Board may issue a written reprimand to or may place the licensee on a term of probation in accordance with the procedures set out in Chapter 150B.
		No person licensed under this Article shall remove or cause to be embalmed a dead human body when he has information indicating crime or violence of any sort in connection with the cause of death, nor shall a dead human body be cremated, until permission of the State or county medical examiner has first been obtained. However, nothing in this Article shall be construed to alter the duties and authority now vested in the office of the coroner.
		No funeral service establishment shall accept a dead human body from any public officer (excluding the State or county medical examiner or his agent), or employee or from the official of any institution, hospital or nursing home, or from a physician or any person having a professional relationship with a decedent, without having first made due inquiry as to the desires of the next of kin and of the persons who may be chargeable with the funeral expenses of such decedent. If any such kin be found, his or her authority and directions shall govern the disposal of the remains of such decedent. Any funeral service establishment receiving such remains in violation  hereof shall make no charge for any service in connection with such remains prior to delivery of same as stipulated by such kin; provided, however, this section shall not prevent any funeral service establishment from charging and being reimbursed for services rendered in connection with the removal of the remains of any deceased person in case of accidental or violent death, and rendering necessary professional services required until the next of kin or the persons chargeable with the expenses have been notified.
		When and where a licensee presents a selection of funeral merchandise to the public to be used in connection with the service to be provided by the licensee or an establishment as licensed under this Article, a card or brochure shall be directly associated with each item of merchandise setting forth the price of the service using said  merchandise and listing the services and other merchandise included in the price, if any. When there are separate prices for the merchandise and services, such cards or brochures shall indicate the price of the merchandise and of the items separately priced.
		At the time funeral arrangements are made and prior to the time of rendering the service and providing the merchandise, a funeral director or funeral service licensee shall give or cause to be given to the person or persons making such arrangements a written statement duly signed by a licensee of said funeral establishment showing the price of the service as selected and what services are included therein, the price of each of the supplemental items of services or merchandise requested, and the amounts involved for each of the items for which the funeral establishment will advance moneys as an accommodation to the person making arrangements, insofar as any of the above items can be specified at that time. The statement shall have printed, typed or stamped on the face thereof: ‘This statement of disclosure is provided pursuant to the requirements of North Carolina G.S. 90-210.25(e).'
(f)	Unlawful Practices. – If any person shall practice or hold himself out as practicing the profession or art of embalming, funeral directing or practice of funeral service without having complied with  the licensing provisions of this Article, he shall be guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than six months, or both, in the discretion of the court.
Any person, partnership, corporation or association or its agents or representatives who violates any of the other provisions of this Article, whether or not the Board has suspended or revoked a license or imposed any other penalty pursuant to subsections (d)(4), (e)(1) or (e)(2) of this section, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, be punished by a fine of not more than one thousand dollars ($1,000) or imprisonment for not more than six months, or by fine and imprisonment.
Whenever it shall appear to the Board that any person, firm or corporation has violated, threatens to violate or is violating any provisions of this Article, the Board may apply to the courts of the State for a restraining order and injunction to restrain these practices. If upon application the court finds that any provision of this Article is being violated, or a violation is threatened, the court shall issue an order restraining and enjoining the violations, and this relief may be granted regardless of whether criminal prosecution is instituted under the provisions of this subsection. The venue for actions brought under this subsection shall be the superior court of any county in which the acts are alleged to have been committed or in the county where the defendant in the action resides."
Sec. 4.  G.S. 90-210.27A reads as rewritten:
"§ 90-210.27A.  Funeral establishments.
(a)	Every funeral establishment shall contain a preparation room which is strictly private, of suitable size for the embalming of dead bodies.  Each preparation room shall:
(1)	Contain one standard type operating table;
(2)	Contain facilities for adequate drainage;
(3)	Contain a sanitary waste receptacle;
(4)	Contain an instrument sterilizer;
(5)	Have wall-to-wall floor covering of tile, concrete, or other material which can be easily cleaned;
(6)	Be kept in sanitary condition and subject to inspection by the Board or its agents at all times;
(7)	Have a placard or sign on the door indicating that the preparation room is private; and
(8)	Have a proper ventilation or purification system to maintain a nonhazardous level of airborne contamination.
(b)	No one is allowed in the preparation room while a dead human body is being prepared except licensees, resident trainees, public officials in the discharge of their duties, members of the medical profession, officials of the funeral home, next of kin, or other legally authorized persons.
(c)	Every funeral establishment shall contain a reposing room for dead human bodies, of suitable size to accommodate a casket and visitors.  Every funeral establishment shall display on its premises and offer for sale at least six adult caskets for selection by purchasers.
(d)	No person who has been convicted of a felony shall:
(1)	Own a funeral establishment if it is owned by a sole proprietorship;
(2)	Be a partner in a funeral establishment if it is owned by a partnership;
(3)	Be an officer, member of the board of directors or owner of twenty-five percent (25%) or more of the stock if it is owned by a corporation.
(e)	If a funeral establishment is solely owned by a natural person, that person must be licensed by the Board as a funeral director or a funeral service licensee.  If it is owned by a partnership, at least one partner must be licensed by the Board as a funeral director or a funeral service licensee.  If it is owned by a corporation, the president, vice-president, or the chairman of the board of directors must be licensed by the Board as a funeral director or a funeral service licensee.  The licensee required by this subsection must be actively engaged, on a day-to-day basis, in the operation of the funeral establishment.
(f)	If a funeral establishment uses the name of a living person in the name under which it does business, that person must be licensed by the Board as a funeral director or a funeral service licensee.
(g)	No funeral establishment shall own, operate, or maintain a funeral chapel without first having registered the name, location, and ownership thereof with the Board.
(h)	A funeral establishment which has failed an inspection by the Board shall pay a reinspection fee for each subsequent Board inspection required to ascertain that the establishment has corrected the deficiencies found.
(i)	No funeral establishment shall display an invalid license certificate of a living person."
Sec. 5.  G.S. 90-210.28 reads as rewritten:
"§ 90-210.28. Fees.
The Board may set and collect fees, not to exceed the following amounts:
Establishment permit
	Application	$250.00
Annual renewal	 175.00
Late renewal penalty	  100.00
Establishment reinspection fee 	100.00
	Courtesy card
Application	  75.00
	Annual renewal	  50.00
	Out-of-state licensee
Application	 200.00
	Embalmer, funeral director,
	  funeral service
	Application–North
  Carolina-Resident	 150.00
	-Non-Resident	 200.00
	Annual Renewal-embalmer or
	  funeral director	  50.00
-funeral service	 100.00
Reinstatement fee	  50.00
Resident trainee permit
	Application	 50.00
Annual renewal	 35.00
Late renewal penalty	 25.00
Duplicate license certificate	25.00
Chapel registration
	Application	150.00
Annual renewal	100.00
The Board shall provide, without charge, one copy of the current statutes and regulations relating to Mortuary Science to every person applying for and paying the appropriate fees for licensing pursuant to this Article.  The Board may charge all others requesting copies of the current statutes and regulations, and the licensees or applicants requesting additional copies, a fee equal to the costs of production and distribution of the requested documents."
Sec. 6. G.S. 90-210.20(k) reads as rewritten:
	"(k) ‘Practice of funeral service' means engaging in the care or disposition of dead human bodies or in the practice of disinfecting and preparing by embalming or otherwise dead human bodies for the funeral service, transportation, burial or cremation, or in the practice of funeral directing or embalming as presently known, whether under these titles or designations or otherwise. It also means engaging in preneed funeral planning, making arrangements for funeral service, selling funeral supplies to the public or making financial arrangements for the rendering of such services or the sale of such supplies, whether at a time of need or prior thereto."
Sec. 7. G.S. 90-210.20 is amended by adding a new subsection to read:
"( k1)	‘Preneed funeral planning' means selling preneed funeral contracts, as defined in G.S. 90-210.30(3), or making other arrangements prior to death for the providing of funeral services or merchandise."
Sec. 8.  This act is effective upon ratification. G.S. 90-210.25(a) as amended by Section 3 of this act shall apply to persons registering as resident trainees on or after the date of ratification.  Section 1 of this act shall apply to Board members appointed on or after the date of ratification and the term of the additional public member of the Board authorized in Section 1 of this act shall commence on January 1, 1990.