2017-2018 Bill 185 Text of Previous Version (Mar. 10, 2017) - South Carolina Legislature Online

1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE REPORT 5 March 9, 2017 6 7 S. 185 8 9 Introduced by Senator Shealy 10 11 S. Printed 3/9/17--S. [SEC 3/10/17 2:10 PM] 12 Read the first time January 10, 2017. 13 14 15 THE COMMITTEE ON 16 LABOR, COMMERCE AND INDUSTRY 17 To whom was referred a Bill (S. 185) to amend Section 40-19- 18 20(1) of the 1976 Code, relating to the definition of 19 “advertisement” as used in regard to embalmers and funeral 20 directors, etc., respectfully 21 REPORT: 22 That they have duly and carefully considered the same and 23 recommend that the same do pass with amendment: 24 25 Amend the bill, as and if amended, by striking all after the 26 enacting words and inserting: 27 / SECTION 1. Section 401920 of the 1976 Code is amended 28 to read: 29 “Section 401920. As used in this chapter: 30 (1) ‘Advertisement’ means the publication, dissemination, 31 circulation, or placing before the public an announcement or 32 statement in a newspaper, magazine, or other publication in the 33 form of a book, notice, circular, pamphlet, letter, handbill, poster, 34 bill, sign, placard, card, label, or tag, or over radio, or television, or 35 internet. The term does not include funeral or death notices and 36 obituaries. 37 (2) ‘Aiding and abetting’ means allowing or permitting an 38 internet service provider, unlicensed person, establishment, or 39 entity to engage in the practice of funeral service, embalming, 40 cremation, or conducting business as a funeral home, funeral 41 establishment, crematory, or mortuary.

[185-1] 1 (2)(3) ‘Apprentice’ means a person who is preparing to become 2 licensed for the practice of embalming and funeral directing under 3 the supervision and instruction of a person licensed for the practice 4 in this State and who is registered with the board pursuant to 5 Section 4019120. 6 (3)(4) ‘Board’ means the South Carolina State Board of Funeral 7 Service. 8 (4)(5) ‘Branch funeral home’ means an establishment separate 9 and apart from the licensed parent funeral home that has 10 embalming facilities, a chapel, a layout room, or a sales room, or 11 any combination of these. 12 (5)(6) ‘Cremation’ means the reduction of the dead body by 13 intense heat to residue. 14 (6)(7) ‘Crematory’ means an establishment in which the dead 15 body is reduced to residue by intense heat. 16 (7)(8) ‘Disposition’ means the final disposal of the body 17 whether by earth interment, aboveground burial, cremation, burial 18 at sea, or delivery to a medical institution for lawful dissection and 19 experimentation or removal from the State pursuant to obtaining a 20 burial transit permit. 21 (8)(9) ‘Embalmer’ means a person licensed by the board to 22 disinfect and preserve or attempt to disinfect and preserve the dead 23 human body, entirely or in part, by the use of application of 24 chemicals, fluids, or gases, externally or internally, or both, by 25 their introduction into the body by vascular or hypodermic 26 injections, by direct application into the organs or cavities, or by 27 other method and includes the restoration or attempted restoration 28 of the appearance of the dead human body. 29 (9)(10)‘Embalming’ means the disinfection of the dead human 30 body by replacing certain body fluids with preserving and 31 disinfecting chemicals. 32 (10)(11) ‘Funeral director’ means a person licensed by the 33 board to engage for hire or profit in the profession of arranging, 34 directing, or supervising funerals. 35 (11)(12) ‘Funeral home’, ‘funeral establishment’, or ‘mortuary’ 36 means an establishment where the practice of funeral service and 37 embalming is practiced. All of these establishments must include 38 the following facilities: 39 (a) a chapel or parlor in which funeral services may be 40 conducted; 41 (b) a preparation room equipped with a sanitary floor and 42 necessary drainage, ventilation, necessary approved tables, hot and 43 cold running water, and a sink separate from table drainage,

[185-2] 1 instruments, and supplies for the preparation and embalming of 2 dead human bodies; 3 (c) a room containing a displayed stock of at least six adult 4 caskets and other necessary funeral supplies; 5 (d) at least one motor hearse for transporting casketed 6 human remains. 7 (12)(13) ‘Funeral merchandise’ means that personal property 8 used in connection with the conduct of funerals or with the 9 transportation and final disposition of a dead human body 10 including, but not limited to, caskets, cremation caskets, urns, and 11 burial clothing. The term does not mean mausoleum crypts, 12 interment receptacles preset in a cemetery, and columbarium 13 niches. 14 (13)(14) ‘Funeral service’ or ‘funeral’ means a period 15 following death in which there are religious services or other rites 16 or ceremonies with the body of the deceased present. 17 (14)(15) ‘Graveside service’ means a rite or ceremony held 18 only at graveside, which is not generally construed as the 19 committal service which follows a funeral. 20 (15)(16) ‘Inspector’ means an inspector employed by the 21 Department of Labor, Licensing and Regulation. 22 (16)(17) ‘Manager’ means a licensed funeral director who has 23 been licensed in this State for at least one year, who is a full-time 24 regular employee, and who is responsible for and has the binding 25 authority from the owner for the daytoday management of funeral 26 establishments or crematories including compliance with all 27 applicable laws governed by this chapter and Chapters 7 and 8, of 28 Title 32. 29 (17)(18) ‘Memorial service’ means a gathering of persons for a 30 program in recognition of a death without the presence of the body 31 of the deceased. 32 (18)(19) ‘Practice of funeral service’ means: 33 (a) engaging in providing shelter, care, and custody of the 34 human dead; 35 (b) the practice of preparing the human dead by embalming 36 or other methods for burial or other disposition; 37 (c) arranging for the transportation of the human dead; 38 (d) making arrangements at or before the time of death, 39 financial or otherwise, including arrangements for cremation, for 40 providing these services, or the sale of funeral merchandise, 41 whether for present or future use; provided, that no funeral 42 director, embalmer, funeral company, cemetery, or related entity 43 shall charge a fee for the assignment to the funeral director,

[185-3] 1 embalmer, funeral company, cemetery, or related entity of an 2 insurance policy providing burial expenses, excluding preneed 3 contracts as provided in Section 32735; and 4 (e) engaging in the practice or performing any functions of 5 funeral directing or embalming as presently recognized by persons 6 engaged in these functions. 7 (19)(20) ‘Retail sales outlet’ means an establishment wherein 8 funeral merchandise is sold or provided, or both, to the general 9 public. A retail sales outlet may not contain layout or chapel 10 facilities and is restricted solely to the sale of funeral merchandise 11 and may not handle or arrange for the handling or disposition, or 12 both, of dead human remains and may not offer or execute preneed 13 funeral contracts, except as authorized by Chapter 7, Title 32. 14 (20)(21) ‘Owner’ means a sole proprietor, partnership, limited 15 partnership, corporation, limited liability corporation, or any 16 business entity possessing authority and control over a funeral 17 establishment.” 18 SECTION 2. Section 40-19-110(2) of the 1976 Code is 19 amended to read: 20 “(2) using false or misleading advertising or using the name of 21 an unlicensed person in connection with that of a funeral 22 establishment;. An advertisement must include the physical 23 address of the funeral home, funeral establishment, mortuary, or 24 crematory where the advertised services will be provided. The 25 board shall promulgate regulations establishing additional 26 requirements for advertisements relating to providing funeral 27 services, including internet advertisements;” 28 SECTION 3. This act takes effect upon approval by the 29 Governor. / 30 Renumber sections to conform. 31 Amend title to conform. 32 33 THOMAS C. ALEXANDER for Committee. 34 35 36 STATEMENT OF ESTIMATED FISCAL IMPACT 37 Explanation of Fiscal Impact 38 Introduced on January 10, 2017 39 State Expenditure 40 This bill amends the definition of advertising by embalmers and 41 funeral directors to include the internet and expands the 42 Department of Labor, Licensing and Regulation’s (LLR) 43 regulatory activities in regard to third-party funeral service

[185-4] 1 providers. LLR indicates this legislation will increase other fund 2 expenditures of the South Carolina Board of Funeral Service from 3 the licensure and regulation of third-party funeral service providers 4 and internet advertising by embalmers and funeral directors. 5 However, the amount of increased expenditure is undetermined 6 since the number of additional licenses for third-party funeral 7 service providers and the administrative, oversight, and regulatory 8 duties for internet advertising are unknown. LLR indicates there 9 will be no impact on the general fund or federal funds. 10 State Revenue 11 Section 40-1-50 specifies that Professional and Occupational 12 Licensing programs must set fees to cover the operational 13 expenses of their boards. Any necessary fee increase to offset the 14 undetermined expenditures will increase other funds revenue by a 15 corresponding amount. 16 17 Frank A. Rainwater, Executive Director 18 Revenue and Fiscal Affairs Office 19

[185-5] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 40-19-20(1) OF THE 1976 CODE, 12 RELATING TO THE DEFINITION OF “ADVERTISEMENT” 13 AS USED IN REGARD TO EMBALMERS AND FUNERAL 14 DIRECTORS, BY ADDING THE TERM “INTERNET” TO THE 15 DEFINITION OF ADVERTISEMENT; TO AMEND SECTION 16 40-19-20 OF THE 1976 CODE BY ADDING A DEFINITION 17 FOR THE TERM “THIRD PARTY FUNERAL SERVICE 18 PROVIDER”; AND TO AMEND CHAPTER 19, TITLE 40 OF 19 THE 1976 CODE, BY ADDING SECTION 401940, TO 20 PROVIDE THAT THIRD PARTY FUNERAL SERVICE 21 PROVIDERS MUST BE LICENSED BY THE STATE BOARD 22 OF FUNERAL SERVICE, TO PROVIDE NOTICE AND 23 DISCLOSURE REQUIREMENTS FOR THIRD PARTY 24 FUNERAL SERVICE PROVIDER ADVERTISEMENTS, TO 25 PROVIDE FOR LICENSE REVOCATION FOR VIOLATIONS 26 OF THE ADVERTISING REQUIREMENTS, TO PROVIDE 27 THAT THE STATE BOARD OF FUNERAL SERVICE SHALL 28 PRESCRIBE THE FORMAT OF ADVERTISEMENT 29 DISCLOSURE BY REGULATION, AND TO PROVIDE THAT 30 THIRD PARTY FUNERAL SERVICE PROVIDERS MUST 31 DISCLOSE TO CUSTOMERS THE NAME AND CONTACT 32 INFORMATION OF THE FUNERAL ESTABLISHMENT THAT 33 WILL BE IN CHARGE OF HANDLING ALL FUNERAL 34 ARRANGEMENTS. 35 36 Be it enacted by the General Assembly of the State of South 37 Carolina: 38 39 SECTION 1. A. Section 401920(1) of the 1976 Code is 40 amended to read: 41

[185] 6 1 “Section 401920. (1) ‘Advertisement’ means the publication, 2 dissemination, circulation, or placing before the public an 3 announcement or statement in a newspaper, magazine, or other 4 publication in the form of a book, notice, circular, pamphlet, letter, 5 handbill, poster, bill, sign, placard, card, label, or tag, or over 6 radio, or television, or internet. The term does not include funeral 7 or death notices and obituaries.” 8 9 B. Section 401920 of the 1976 Code is amended by adding: 10 11 “(21) ‘Third party funeral service provider’ means an 12 outofstate broker, which is a licensed funeral director working 13 through a licensed home in the state that the broker is located, that 14 arranges, via telephone, email, mail, the internet, or by other 15 means, for funeral services to be performed by licensed funeral 16 directors and funeral establishments in this State.” 17 18 SECTION 2. Chapter 19, Title 40 of the 1976 Code is amended 19 by adding: 20 21 “Section 401940. (A) A third party funeral service provider, 22 its officers, employees, agents, or assigns must be licensed with 23 the State Board of Funeral Service. 24 (B)(1) Third party funeral service providers must disclose the 25 following information in all advertisements: 26 (a) license number; 27 (b) address and phone number; 28 (c) conspicuous disclaimer if located out of state; 29 (d) name of owner; and 30 (e) list of all participating funeral establishments. 31 (2) The State Board of Funeral Service must revoke the license 32 of a third party funeral service provider if the provider fails to 33 prominently disclose the information required by subsection (B) 34 (1). 35 (C) Third party funeral service providers must disclose to 36 customers the name and contact information of the funeral 37 establishment that will be directly providing, assisting, or 38 otherwise participating in the practice of funeral service. 39 (D) The State Board of Funeral Service, by regulation, shall 40 prescribe the format of all advertisement disclosures.” 41 42 SECTION 3. This act takes effect upon approval by the 43 Governor.

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