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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
funeral services regulation; DHS
Purpose
An emergency measure that eliminates the Board of Funeral Directors and Embalmers (Board) and transfers the powers and duties of the Board to the Department of Health Services (DHS). Modifies regulatory requirements relating to funeral services professionals and establishments.
Background
The Board regulates the final disposition of human remains through the
licensure and registration of funeral establishments and directors, assistant
funeral directors, embalmers and embalmer's assistants, crematories and
cremationists, alkaline hydrolysis facilities and operators, interns and intern
trainees and prearranged funeral salespersons (A.R.S. Title 32, Chapter 12).
The Board's Fund is administered by the Board. 10 percent of all fees and other
monies collected under the funeral services statutes are deposited into the
state General Fund (state GF) and the remaining 90 percent is deposited into
the Board's Fund. All civil penalties collected under the funeral services
statutes must be deposited in the state GF. (A.R.S.
§ 32-1308). The Board consists of seven Governor-appointed members to serve
staggered, four-year terms. Three members must be licensed, practicing funeral
directors or embalmers and four must be public members (A.R.S.
§ 32-1302).
DHS is established to protect the physical and mental health of Arizona’s
children and adults. DHS's responsibilities include: 1) the licensure and regulation
of health care and child care facilities and certain health care professionals;
2) disease control; 3) immunization education and promotion; 4) emergency
preparedness; 5) emergency medical services; 6) the state laboratory;
7) the state hospital; 8) public health statistics; 9) radiation regulatory
programs; and 10) vital records which include birth and death certificates (A.R.S. Title 36).
The Senate and House Commerce Committees of Reference (COR) met on January 10, 2023, to conduct a sunset review of the Board. The COR recommended that the Board be terminated and that the powers and duties of the Board be transferred to DHS (COR Report).
If there is a change in the deposit of monies collected under the funeral services statutes, there may be a fiscal impact to the state GF.
Provisions
Transfer of Authority and Monies
1. Eliminates the Board and the following authorities:
a) adopting a seal; and
b) appointing citizen advisory committees to make recommendations concerning enforcing and administering the funeral services statutes.
2. Transfers the regulatory authority, powers, duties and responsibilities of the Board to DHS.
3. Stipulates that:
a) the transfer does not alter the effect of any actions that were taken or impair the valid obligations of the Board before the effective date.
b) administrative rules and orders that were adopted by the Board continue in effect until superseded by DHS administrative action.
c) all administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the Board on the effective date are transferred to and retain the same status with DHS;
d) all certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the Board retain their validity for the duration of the term of validity as provided by law;
e) all equipment, records, furnishings and other property, all data and investigative findings, all obligations and all appropriated monies of the Board that remain unexpended and unencumbered on the effective date are transferred to DHS; and
f) all personnel who are under the state personnel system and employed by the Board are transferred to comparable positions and pay classifications in the respective administrative units of DHS on the effective date.
4. Establishes the Funeral Directors Fund consisting of fees and other monies collected under the funeral services statutes, subject to legislative appropriation.
5. Transfers all unexpended and unencumbered monies remaining in the Board's Fund to the Funeral Directors Fund.
6. Requires DHS to administer the Funeral Directors Fund and use the monies to implement and enforce the funeral services statutes.
7. Requires the State Treasurer, on notice from DHS, to invest and divest monies in the Funeral Directors Fund and to credit monies earned from investment to the Funeral Directors Fund.
Funeral Service Professionals
8. Eliminates the licensing and registration requirements and associated fees for a funeral services intern, an assistant funeral director, an embalmer's assistant and a presale funeral salesperson.
9. Eliminates intern trainee requirements and the associated fee for temporary employment by a funeral establishment.
10. Eliminates the requirement, for a funeral director license, that an applicant:
a) be of good moral character;
b) have held an active license as an intern for at least one year; and
c) have assisted in arranging and directing at least 25 funerals.
11. Eliminates the requirement, for an embalmer license, that an applicant:
a) be of good moral character;
b) have been licensed as an intern for at least one year; and
c) have successfully completed an internship program that included assisting in embalming at least 25 dead human bodies.
12. Eliminates the requirement, for a cremationist and alkaline hydrolysis operator license, that an applicant be of good moral character.
13. Stipulates that a person does not need to be licensed to practice as an embalmer.
14. Allows an alkaline hydrolysis operator to practice without needing to be licensed if the alkaline hydrolysis facility is operated or supervised by:
a) a licensed funeral director; or
b) another person who is a licensed alkaline hydrolysis operator.
15. Allows a person who holds an inactive license to practice:
a) cremation in Arizona if there is another individual at the crematory who is licensed and operates or supervises the crematory; or
b) alkaline hydrolysis in Arizona if there is another individual at the alkaline hydrolysis facility who is licensed and operates or supervises the alkaline hydrolysis facility.
16. Decreases the cap for annual continuing education, from 16 hours to 6 hours, that may be prescribed in rules for a person who is licensed as a funeral services professional.
Funeral Services Establishments
17. Requires each licensed funeral establishment, crematory or alkaline hydrolysis facility to be operated or supervised by a licensed funeral director, except that:
a) a crematory may be operated or supervised by a licensed cremationist; and
b) an alkaline hydrolysis facility may be operated or supervised by a licensed alkaline hydrolysis operator.
18. Eliminates the requirement, for a funeral establishment, crematory or an alkaline hydrolysis facility license, that any of the entity's proprietors, owners, partners, officers, directors and trust beneficiaries be of good moral character.
19. Requires the omissions of an agent or employee of a crematory, rather than only acts, that violate the funeral services statutes or rules to be deemed omissions of the crematory.
20. Allows DHS to impose probationary terms, after inspecting a funeral establishment, crematory or alkaline hydrolysis facility, if it is determined that the probationary terms are necessary to:
a) protect the public health, safety and welfare; and
b) rehabilitate or educate the licensee.
21. Requires a person affiliated with the funeral establishment, on beginning a discussion regarding prearranged funeral agreements, to present the price list to the consumer, rather than a prearranged funeral salesperson.
22. Eliminates the prearranged funeral sales endorsement requirement that the bond amount for a funeral establishment be increased by an additional $5,000 for each employed prearranged funeral salesperson.
Miscellaneous
23. Defines Department as DHS and Director as the Director of DHS.
24. Eliminates, from the definition of license, a written authorization that is issued and entitles a person to act as an embalmer, intern or alkaline hydrolysis operator.
25. Redefines licensee as a person to who has been licensed under the funeral services statutes.
26. Eliminates the definitions for Board, embalmer's assistant, good moral character, intern, intern trainee, registration and supervise or supervision.
27. Makes technical and conforming changes.
28. Becomes effective on the signature of the Governor, retroactive to April 1, 2023.
Prepared by Senate Research
February 13, 2023
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