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HB0698 • 2026

State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Delegates Bhandari , Cullison , Hutchinson , Kipke , Bagnall , Guzzone , Hill , Kaufman , Lopez , Martinez , Rosenberg , Rose , White Holland , and Woorman
Last action
2026-04-28
Official status
Approved by the Governor - Chapter 188
Effective date
2026-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

Transferring the authority to regulate certain crematories and reduction facilities from the Office of Cemetery Oversight to the State Board of Morticians and Funeral Directors; altering the circumstances under which the Governor may remove an appointed member of the Board; altering the quorum of the Board; and specifying that the Board may take action with a simple majority vote of the quorum.

What This Bill Does

  • Transferring the authority to regulate certain crematories and reduction facilities from the Office of Cemetery Oversight to the State Board of Morticians and Funeral Directors; altering the circumstances under which the Governor may remove an appointed member of the Board; altering the quorum of the Board; and specifying that the Board may take action with a simple majority vote of the quorum.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

453827/1

None

Favorable with Amendments { 453827/1 Adopted

Plain English: AMENDMENTS TO HOUSE BILL 698 (First Reading File Bill) AMENDMENT NO.

  • AMENDMENTS TO HOUSE BILL 698 (First Reading File Bill) AMENDMENT NO.
  • 1 On page 1, in the sponsor line, strike “and M.
  • Morgan” and substitute “Bagnall, Guzzone, Hill, Kaufman, Lopez, Martinez, Rosenberg, Ross, White Holland, and Woorman”; strike beginning with “renaming” in line 6 down through “Crematories;” in line 7; in line 16, strike “5–702(a),”; and after line 28, insert: “BY repealing and reenacting, with amendments, Article – Courts and Judicial Proceedings Section 5–642 Annotated Code of Maryland (2020 Replacement Volume and 2025 Supplement) BY repealing and reenacting, without amendments, Article – Health – General Section 5–508(a) Annotated Code of Maryland (2023 Replacement Volume and 2025 Supplement) BY repealing and reenacting, with amendments, Article – Health – General Section 5–508(b), (e), (g), (j), and (k) Annotated Code of Maryland (2023 Replacement Volume and 2025 Supplement)”.
  • On page 2, in line 3, strike “and” and substitute a comma; strike beginning with “to” in line 3 down through “7–201” in line 4; strike beginning with the second “and” in line 4 down through the second “and” in line 6 and substitute “7–206(b), 7–316(b)(2),”; in lines 6 and 7, strike “7 –405(a), (b), and (f),”; in line 7, after the third comma insert “and”; in the same line, strike “, and 7–701”; in line 17, strike “7–3A–12” and substitute “7–3A–10”; in line 12, after “ 7–202(a)” insert “and 7–206(a) and (c)”; in line 19, strike HB0698/453827/1 BY: Health Committee HB0698/453827/01 Health Committee Amendments to HB 698 Page 2 of 13 “and Statement Filings”; in the same line, strike the third “and”; and in line 20, after “7–501.1” insert “, and 7–510”.

Bill History

  1. 2026-04-28 Post Passage

    Approved by the Governor - Chapter 188

  2. 2026-04-09 Senate

    Favorable Report by Finance

  3. 2026-03-30 House

    Returned Passed

  4. 2026-03-25 Senate

    Third Reading Passed (42-0)

  5. 2026-03-23 House

    Favorable with Amendments Report by Health

  6. 2026-03-21 Senate

    Favorable Adopted

  7. 2026-03-21 Senate

    Second Reading Passed

  8. 2026-03-11 House

    Third Reading Passed (136-0)

  9. 2026-03-10 House

    Favorable with Amendments { 453827/1 Adopted

  10. 2026-03-10 House

    Second Reading Passed with Amendments

  11. 2026-03-07 Senate

    Referred Finance

  12. 2026-02-05 House

    Hearing canceled

  13. 2026-02-05 House

    Hearing 2/18 at 1:30 p.m.

  14. 2026-02-04 House

    Hearing 2/18 at 1:00 p.m.

  15. 2026-02-02 House

    First Reading Health

  16. Maryland General Assembly

    Text - First - State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

  17. Maryland General Assembly

    Vote - House - Committee - Health

  18. Maryland General Assembly

    Text - Third - State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

  19. Maryland General Assembly

    Vote - Senate - Committee - Finance

  20. Maryland General Assembly

    Text - Chapter - State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities

Official Summary Text

Transferring the authority to regulate certain crematories and reduction facilities from the Office of Cemetery Oversight to the State Board of Morticians and Funeral Directors; altering the circumstances under which the Governor may remove an appointed member of the Board; altering the quorum of the Board; and specifying that the Board may take action with a simple majority vote of the quorum.

Current Bill Text

Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0698*

HOUSE BILL 698
J2, C2, J1 6lr3454
CF SB 413
By: Delegates Bhandari, Cullison, Hutchinson, Kipke, and M. Morgan Bagnall,
Guzzone, Hill, Kaufman, Lopez, Martinez, Rosenberg, Rose, White Holland,
and Woorman
Introduced and read first time: February 2, 2026
Assigned to: Health
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2026

CHAPTER ______

AN ACT concerning 1

State Board of Morticians and Funeral Directors – Board Operations and 2
Regulation of Crematories and Reduction Facilities 3

FOR the purpose of transferring the authority to regulate certain crematories and 4
reduction facilities from the Office of Cemetery Oversight to the State Board of 5
Morticians and Funeral Directors; renaming the Board to be the State Board of 6
Morticians, Funeral Directors, and Crematories; altering the circumstances under 7
which the Governor may remove an appointed member of the Board; altering the 8
quorum of the Board; specifying that the Board may take action with a simple 9
majority vote of the quorum; and generally relating to the State Board of Morticians 10
and Funeral Directors. 11

BY repealing and reenacting, with amendments, 12
Article – Business Regulation 13
Section 5 –101, 5 –102(b), 5 –201, 5 –204(a) and (b), 5 –205(b), 5 –301, 5 –302, 5 –303, 14
5–306, 5–308, 5–310(a) and (b), 5–311(c), 5–401 through 5–403, 5–701(e) and 15
(f), 5–702(a), 5–707(f), 5–804, and 5–901 through 5–903 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 18

BY repealing and reenacting, without amendments, 19
Article – Business Regulation 20
Section 5–205(a) and 5–701(a) 21
2 HOUSE BILL 698

Annotated Code of Maryland 1
(2024 Replacement Volume and 2025 Supplement) 2

BY repealing 3
Article – Business Regulation 4
Section 5–803 5
Annotated Code of Maryland 6
(2024 Replacement Volume and 2025 Supplement) 7

BY repealing and reenacting, with amendments, 8
Article – Courts and Judicial Proceedings 9
Section 5–642 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, without amendments, 13
Article – Health – General 14
Section 5–508(a) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2025 Supplement) 17

BY repealing and reenacting, with amendments, 18
Article – Health – General 19
Section 5–508(b), (e), (g), (j), and (k) 20
Annotated Code of Maryland 21
(2023 Replacement Volume and 2025 Supplement) 22

BY repealing and reenacting, with amendments, 23
Article – Health Occupations 24
Section 7–101 and, 7–102 to be under the amended title “Title 7. Morticians, Funeral 25
Directors, and Crematories”; 7–201, 7–202(i), 7–204(a), 7–205(c), and 7–206(a) 26
through (c) to be u nder the amended subtitle “Subtitle 2. State Board of 27
Morticians, Funeral Directors, and Crematories”; and 7–206(b), 7–316(b)(2), 28
7–320, 7–405(a), (b), and (f), 7–409, 7–501, and 7–502, and 7–701 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2025 Supplement) 31

BY repealing and reenacting, without amendments, 32
Article – Health Occupations 33
Section 7–202(a) and 7–206(a) and (c) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2025 Supplement) 36

BY adding to 37
Article – Health Occupations 38
Section 7–204(e); 7–3A–01 through 7–3A–12 7–3A–10 to be under the new subtitle 39
“Subtitle 3A. Registration”; 7 –3B–01 through 7 –3B–09 to be under the new 40
HOUSE BILL 698 3

subtitle “Subtitle 3B. Permits and Statement Filings ”; and 7 –409.1, 7–412, 1
and 7–501.1, and 7–510 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6

Article – Business Regulation 7

5–101. 8

(a) In this title the following words have the meanings indicated. 9

(b) [“Alkaline hydrolysis” means the process of reducing human remains using 10
water, alkaline chemicals, and heat inside a watertight vessel to accelerate decomposition. 11

(c)] “Authorizing agent” has the meaning stated in § 5–508 of the Health – General 12
Article. 13

[(d)] (C) (1) “Burial goods” means goods that are used in connection with 14
burial. 15

(2) “Burial goods” includes: 16

(i) a casket; 17

(ii) a grave liner; 18

(iii) a memorial; 19

(iv) a monument; 20

(v) a scroll; 21

(vi) an urn; 22

(vii) a vase; and 23

(viii) a vault. 24

[(e)] (D) “Burial goods business” means a business that provides burial goods. 25

[(f)] (E) (1) “Cemetery” means land used or to be used for interment. 26

(2) “Cemetery” includes a structure used or to be used for interment. 27

4 HOUSE BILL 698

[(g)] (F) “Cremation” means the disposition of a dead human body by means of 1
incineration. 2

[(h)] (G) “Crematory” means a building, portion of a building, or structure that 3
houses the necessary appliances and facilities for cremation or alkaline hydrolysis. 4

[(i)] (H) “Director” means the Director of the Office of Cemetery Oversight. 5

[(j)] (I) “Engage in the operation of a cemetery” means owning, controlling, or 6
managing a cemetery, including performing activities necessary for: 7

(1) the establishment, improvement, care, preservation, or embellishment 8
of a cemetery; 9

(2) interment; and 10

(3) the providing of burial space or burial goods. 11

[(k) (1) “Engage in the operation of a crematory” means controlling or 12
managing a crematory. 13

(2) “Engage in the operation of a crematory” does not include: 14

(i) the practice of funeral direction or the practice of mortuary 15
science; or 16

(ii) 1. assistance in making decisions and filling out forms that 17
are not directly related to cremation; 18

2. obtaining vital statistics, signatures, and other 19
information necessary to complete a death certificate; 20

3. transportation of a body to the place of disposition; or 21

4. any other services regarding the disposition of a body that 22
are not directly related to cremation. 23

(l) (1) “Engage in the operation of a reduction facility” means controlling or 24
managing a reduction facility. 25

(2) “Engage in the operation of a reduction facility” does not include: 26

(i) the practice of f uneral direction or the practice of mortuary 27
science; or 28

(ii) 1. assistance in making decisions and filling out forms that 29
are not directly related to natural organic reduction; 30
HOUSE BILL 698 5

2. obtaining vital statistics, signatures, and other 1
information necessary to complete a death certificate; 2

3. transportation of a body to the place of disposition; or 3

4. any other services regarding the disposition of a body that 4
are not directly related to natural organic reduction.] 5

[(m)] (J) “Funeral establishment” means a building, structure, or premises from 6
which the business of funeral directing or embalming is conducted. 7

[(n)] (K) (1) “Human remains” means: 8

(i) the body of a deceased person; or 9

(ii) a part of a body or limb that has been removed from a living 10
person. 11

(2) “Human remains” includes the body or part of a body or limb in any 12
state of decomposition. 13

(3) “Human remains” does not include soil remains produced after the 14
completion of natural organic reduction. 15

[(o) “Hydrolyzed remains” means the bone fragments produced by the completion 16
of alkaline hydrolysis.] 17

[(p)] (L) “Interment” means all final disposition of human remains or pet 18
remains, including: 19

(1) earth burial; 20

(2) mausoleum entombment; and 21

(3) niche or columbarium interment. 22

[(q)] (M) “Natural organic reduction” means the contained accelerated 23
conversion of human remains into soil. 24

[(r)] (N) “Office” means the Office of Cemetery Oversight. 25

[(s)] (O) “Permit” means a permit issued by the Director to allow a partnership, 26
limited liability company, or corporation to operate a business through which a registrant 27
may: 28

6 HOUSE BILL 698

(1) engage in the operation of a cemetery [or crematory]; or 1

(2) provide burial goods. 2

[(t)] (P) (1) “Pet remains” means the body of a deceased animal that was kept 3
as a pet. 4

(2) “Pet remains” includes the body of a pet or a part of a pet’s body in any 5
state of decomposition or the body of a pet after having been cremated. 6

[(u)] (Q) (1) “Preneed goods” means burial goods that are sold before the 7
buyer’s death. 8

(2) “Preneed goods” does not include burial space. 9

[(v)] (R) “Provide burial goods” means a retail transaction: 10

(1) to erect, service, or inscribe burial memorials; or 11

(2) to sell burial goods. 12

[(w) “Reduction facility” means a building, portion of a building, or structure that 13
houses the necessary appliances, containers, and facilities for performing natural organic 14
reduction.] 15

[(x)] (S) “Registered cemeterian” means an individual registered to operate a 16
cemetery as a sole proprietor or on behalf of a sole proprietor or of a permit holder. 17

[(y) “Registered crematory operator” means an individual registered to operate a 18
crematory as a sole proprietor or on behalf of a sole proprietor or permit holder. 19

(z) “Registered reduction operator” means an individual registered to operate a 20
reduction facility as a sole proprietor or on behalf of a sole proprietor or a permit holder.] 21

[(aa)] (T) “Registered seller” means an individual registered to provide burial 22
goods as a sole proprietor or on behalf of a sole proprietor or of a permit holder. 23

[(bb)] (U) “Registration” means a registration issued by the Director authorizing 24
an individual to operate a cemetery [, to operate a crematory, to operate a reduction 25
facility,] or to provide burial goods. 26

[(cc)] (V) “Responsible party” means a sole proprietor or the individual 27
designated by a partnership, limited liability company, or corporation to be responsible for 28
the operations of a cemetery[, crematory, reduction facility,] or burial goods business. 29

HOUSE BILL 698 7

[(dd) “Soil remains” means the soil produced at final disposition of a dead human 1
body at a reduction facility by completion of natural organic reduction.] 2

5–102. 3

(b) This title does not apply to: 4

(1) the operation of a funeral establishment, including the sale of burial 5
goods in the ordinary course of the funeral establishment’s business; 6

[(2) the operation or ownership of a crematory in which a person who is 7
licensed and regulated under Title 7 of the Health Occupations Article owns a greater 8
percentage of the crematory than a registered cemeterian, registered seller, or holder of a 9
permit for the operation of a cemetery or burial goods business;] 10

[(3)] (2) the operation or ownership of a crematory [or], incinerator [at a 11
licensed medical facility or educational institution], OR REDUCTION FACILITY; 12

[(4)] (3) a licensed funeral director acting within the scope of the funeral 13
director’s license; or 14

[(5)] (4) a mortician acting within the scope of the mortician’s license. 15

5–201. 16

(a) There is an Office of Cemetery Oversight in the Department. 17

(b) The Office exercises its rights, powers, and duties subject to the authority of 18
the Secretary. 19

(c) (1) The Secretary shall appoint an Advisory Counci l on Cemetery 20
Operations. 21

(2) The Advisory Council consists of [12] 11 members. 22

(3) Of the [12] 11 members of the Advisory Council: 23

(i) three shall be registered cemeterians representing the for–profit 24
cemetery industry; 25

(ii) one shall be a registered cemeterian representing a nonprofit 26
cemetery; 27

(iii) one shall be a registered seller from a monument company; 28

(iv) one shall be a representative from a religious cemetery; AND 29
8 HOUSE BILL 698

(v) [one shall be a representative from a crematory; and 1

(vi)] five shall be consumer members. 2

(4) The Advisory Council shall be convened at least four times a year to 3
give advice to the Secretary and the Director. 4

(5) In addition to the required meetings, the Advisory Council may meet as 5
necessary. 6

(d) The term of a member is 3 years. 7

5–204. 8

(a) [(1)] With the advice of the Advisory Council and after consultation with 9
representatives of the cemetery industry, the Director shall adopt: 10

[(i)] (1) rules and regulations to carry out this title; and 11

[(ii)] (2) a code of ethics for engaging in the operation of a 12
cemetery[, crematory, or reduction facility] or providing burial goods. 13

[(2) In conjunction with the State Board of Morticians and Funeral 14
Directors, the Director shall: 15

(i) establish a process for regulating crematories and reduction 16
facilities that provides for: 17

1. registration of crematory operators and reduction facility 18
operators or issuance of permits for operating crematories and reduction facilities, and 19
renewal; 20

2. applications, including certification of ownership and 21
identification of individuals who will perform alkaline hydrolysis, cremation, or natural 22
organic reduction; 23

3. registration and permit fees; 24

4. inspections and oversight; 25

5. grounds for discipline and penalties; and 26

6. complaints and hearings; and 27

HOUSE BILL 698 9

(ii) adopt regulations that are identical to regulations adopted by the 1
State Board of Morticians and Funeral Directors to: 2

1. implement item (i) of this paragraph; and 3

2. ensure public health and safety. 4

(3) The Director shall adopt regulations that: 5

(i) require a registered reduction operator to notify the authorizing 6
agent in writing and before initiating natural organic reduction that a person who uses or 7
disposes of soil remains is in violation of § 5–514 of the Health – General Article; 8

(ii) require a reduction facility to monitor and record written 9
verification that the temperature during each instance of a natural organic reduction 10
process attains a s pecified minimum internal equipment temperature for a specified 11
minimum period of time; 12

(iii) establish appropriate standards for training and experience for 13
the registration of reduction operators; 14

(iv) prohibit the use of natural organic reduction in any instance in 15
which the human remains are known, or reasonably suspected, to be embalmed or to have 16
an infection, disease, or biological condition that renders the process of natural organic 17
reduction or the resulting soil remains unreasonably unsafe, including: 18

1. Creutzfeldt–Jakob disease or other prion disease; 19

2. Ebola virus infection; 20

3. Mycobacterium tuberculosis infection; 21

4. the presence of diagnostic or therapeutic radioisotopes; or 22

5. any other infection, di sease, or biological condition 23
identified by the Director based on the reasonable recommendation of a federal, State, or 24
local health authority; 25

(v) establish a mandatory contamination testing program for 26
reduction facilities to ensure the safety of so il remains produced, including the following 27
minimum program elements: 28

1. collecting routine material samples from soil remains for 29
analysis using: 30

A. a reliable sampling methodology; and 31

10 HOUSE BILL 698

B. an appropriate frequency of sampling, as recommended or 1
approved by the U.S. Composting Council or another reliable scientific advisory authority; 2

2. recording and retaining the results of an analysis of 3
samples from the soil remains conducted by an independent third –party laboratory to 4
identify the presence of heavy metals or microbial pathogens according to the appropriate 5
contamination parameters for biosolids specified by the U.S. Environmental Protection 6
Agency under Title 40 C.F.R. Part 503, Chapter I, Subchapter O; 7

3. conducting an analysis for each production of soil remains 8
to ensure that the soil remains contain less than 0.01 mg/kg dry weight of specific physical 9
contaminants, which may include intact bone, dental fillings, and medical implants; 10

4. ensuring that no soil remains are released until the soil 11
remains comply with each of the applicable contamination testing parameters; and 12

5. periodic reporting of testing results to appropriate State 13
and local health authorities that have requested the results; and 14

(vi) establish any other reasonable prohibition, rule, or requirement 15
the Director determines is necessary to protect the public health and safety during the 16
process of natural organic reduction.] 17

(b) [Upon] ON receipt of a written complaint, or at the discretion of the Director, 18
the Director or the Director’s designee may conduct an investigation and an inspection of 19
the records and site of a registered cemeterian, [registered crematory operator, registered 20
reduction operator, ] registered seller, permit holde r, or any other person subject to the 21
registration or permit provisions of this title. 22

5–205. 23

(a) There is a Cemetery Oversight Fund. 24

(b) (1) [(i)] By regulation, the Director shall establish reasonable fees and a 25
fee schedule for the issuance and renewal of registrations and permits. 26

[(ii) The Director may not assess a crematory a per –occurrence 27
cremation fee.] 28

(2) In establishing the fees, the Director shall consider: 29

(I) the size of the business[,]; 30

(II) whether the business is for –profit or designated as tax exempt 31
under § 501(c) of the Internal Revenue Code[,]; 32

HOUSE BILL 698 11

(III) the volume of business conducted[,]; and 1

(IV) the type of services provided, including the percentage of preneed 2
contracts written. 3

5–301. 4

An individual shall register with the Office before: 5

(1) engaging in the operation of a cemetery [, crematory, or reduction 6
facility] in this State; or 7

(2) providing burial goods in this State. 8

5–302. 9

(a) In order to register, an applicant shall meet the requirements of this section. 10

(b) The applicant must be at least 18 years old. 11

(c) The applicant must be of good character and reputation. 12

(d) The applicant must be affiliated with a cemetery [, crematory, reduction 13
facility,] or burial goods business operated by a registrant or permit holder. 14

(e) The cemetery[, crematory, reduction facility, ] or burial goods business with 15
which the applicant is affiliated must be financially stable in accordance with § 5 –304 of 16
this subtitle. 17

5–303. 18

(a) An applicant shall register by: 19

(1) submitting to the Director an application on the form that the Director 20
provides; and 21

(2) paying a nonrefundable application fee set by the Director. 22

(b) The application shall state: 23

(1) the name, date of birth, and residential address of the applicant; 24

(2) the name and fixed address of the affiliated cemetery [, crematory,] or 25
burial goods business; 26

12 HOUSE BILL 698

(3) whether the cemetery [, crematory, reduction facility, ] or burial goods 1
business with which the applicant is af filiated is owned or controlled by a sole proprietor, 2
partnership, limited liability company, or corporation; 3

(4) if the applicant is designated as the responsible party, the name and 4
residential address of each employee who sells burial space, goods, or services to the public 5
for the business while engaging in the operation of a cemetery [, crematory, reduction 6
facility,] or burial goods business; and 7

(5) any other reasonable information that the Director determines is 8
necessary to carry out this title. 9

5–306. 10

(a) While a registration is in effect, it authorizes the registrant to engage in the 11
operation of a cemetery[, crematory, reduction facility,] or burial goods business. 12

(b) This title does not limit the right of a person to practice funeral direction or 13
mortuary science[, or operate a crematory,] if the person is licensed or otherwise authorized 14
under Title 7 of the Health Occupations Article. 15

5–308. 16

Within 1 week after the effective date of the change, the applicant designated as the 17
responsible party or the registered responsible party shall submit to the Director an 18
application form that shows a change in the: 19

(1) cemetery[, crematory, reduction facility,] or burial goods business with 20
which a registrant is affiliated; 21

(2) individual designated as the responsible party; 22

(3) employees of the business who engage in the sale of burial space, goods, 23
or services [or cremation] to the public; 24

(4) officers, directors, members, or agents of the permit holder; or 25

(5) name or address of the registrant or permit holder. 26

5–310. 27

(a) Subject to the hearing provisions of § 5–312 of this subtitle, the Director may 28
deny a registration or permit to an applicant, reprimand a person subject to the registration 29
or permit provisions of this title, or suspend or revoke a registration or permit if an 30
applicant, registrant, or permit holder, or an agent, employee, officer, director, or partner 31
of the applicant, registrant, or permit holder: 32
HOUSE BILL 698 13

(1) fraudulently or deceptively obtains or attempts to obtain a registration 1
or permit; 2

(2) fraudulently or deceptively uses a registration or permit; 3

(3) under the laws of the United States or of any state, is convicted of a: 4

(i) felony; or 5

(ii) misdemeanor that is directly related to t he fitness and 6
qualifications of the applicant, registrant, or permit holder to own or operate a cemetery [, 7
crematory, or reduction facility] or provide burial goods; 8

(4) fails to provide or misrepresents any information required to be 9
provided under this title; 10

(5) violates this title; 11

(6) violates the code of ethics adopted by the Director; 12

(7) violates a regulation adopted under this title; 13

(8) fails to provide reasonable and adequate supervision of the operation of 14
the cemetery[, crematory, or reduction facility] or the provision of burial goods by agents, 15
employees, officers, directors, or partners affiliated with a cemetery[, crematory, reduction 16
facility,] or burial goods business; 17

(9) refuses to allow an inspection required by this title; 18

(10) fails to comply with an order of the Director; 19

(11) fails to comply with any terms of settlement under a binding arbitration 20
agreement; 21

(12) is found guilty by a court in this State of violating an unfair, ABUSIVE, 22
or deceptive trade practices provision under Title 13 of the Commercial Law Article; or 23

(13) fails to comply with § 5–513 of the Health – General Article. 24

(b) (1) If a person is charged with a violation of this title that could result in 25
suspension or revocation of a registration or permit, the Director may seek an immediate 26
restraining order in a circuit court in this State to prohibit the person from engaging in the 27
operation of any cemetery[, crematory, reduction facility,] or burial goods business. 28

(2) The restraining order is in effect until: 29
14 HOUSE BILL 698

(i) the court lifts the order; or 1

(ii) the charges are adjudicated or dismissed. 2

5–311. 3

(c) (1) The Director or the Director’s designee shall review each complaint and 4
shall attempt to negotiate a settlement of the complaint between the complainant and the 5
registrant, permit holder, or any other person subject to the registration or permit 6
provisions of this title. 7

(2) Notwithstanding § 5 –102 of this title, the Director or the Director’s 8
designee may recei ve and attempt to negotiate a settlement to resolve complaints 9
concerning persons required to file statements under § 5–405 of this title and in connection 10
with the operation of a cemetery [or crematory] or the sale of preneed goods. 11

(3) The Director ma y not take any actions described in subsection (d)(1) 12
and (2) of this section for complaints involving persons exempt under § 5–102 of this title. 13

5–401. 14

(a) Subject to the provisions of this section, a registered cemeterian [, registered 15
crematory operator, registered reduction operator,] or registered seller may engage in the 16
operation of a cemetery[, crematory, reduction facility,] or burial goods business as a sole 17
proprietor or through: 18

(1) a corporation as an officer, director, employee, or agent of the 19
corporation; 20

(2) a limited liability company as a member, employee, or agent of the 21
limited liability company; or 22

(3) a partnership as a partner, employee, or agent of the partnership. 23

(b) Subject to the provisions of this title, a corporation, limited liability company, 24
or partnership may engage in the operation of a cemetery [, crematory, reduction facility,] 25
or burial goods business through a registered cemeterian [, registered crematory operator, 26
registered reduction operator,] or registered seller. 27

(c) (1) A registered cemeterian who engages in the operation of a cemetery 28
through a corporation, limited liability company, or partnership under this title is subject 29
to all of the provisions of this title that relate to engaging in the operation of a cemetery. 30

(2) [A registered crematory operator who engages in the operation of a 31
crematory through a corporation, limited liability company, or partnership under this title 32
HOUSE BILL 698 15

is subject to all of the provisions of this title that relate to engaging in the operation of a 1
crematory. 2

(3) A registered reduction operator who engages in the operation of a 3
reduction facility through a corporation, limited liability company, or partnership under 4
this title is subject to all the provisions of this title that relate to engaging in the operation 5
of a reduction facility. 6

(4)] A registered seller who engages in the operation of a burial goods 7
business through a corporation, limited liability company, or partnership under this title is 8
subject to all of the provisions of this title that relate to providing burial goods services. 9

(d) (1) A corporation, limited liability company, or partnership that engages in 10
the operation of a cemetery[, crematory, reduction facility,] or burial goods business under 11
this title is not, by its compliance with this title, relieved of any responsibility that the 12
corporation, limited liability company, or partnership may have for an act or an omission 13
by its officer, director, member, partner, employee, or agent. 14

(2) An individual who engages in the operation of a cemetery [, crematory, 15
reduction facility, ] or burial goods business through a corporation, limited liability 16
company, or partnership is not, by reason of the individual’s employment or other 17
relationship with the corporation, limited liability company, or partnership, relieved of any 18
individual responsibility that the individual may have regarding that practice. 19

5–402. 20

A corporation, limited liability company, or partnership shall obtain a permit issued 21
by the Director, before the corporation, limited liability company, or partnership may 22
engage in the operation of a cemetery [, crematory, reduction facility, ] or burial goods 23
business in the State. 24

5–403. 25

To qualify for a permit, a corporation, limited liability company, or partnership shall: 26

(1) designate a separate registered cemeterian [, registered crematory 27
operator, registered reduction operator, ] or registered seller as the responsible party for 28
the operations of each affiliated cemetery [, crematory, reduction facility,] or burial goods 29
business; 30

(2) provide the name and business address of each affiliated cemetery [, 31
crematory, reduction facility,] or burial goods business; 32

(3) provide a list of the officers, directors, members, partne rs, agents, and 33
employees of the entity applying for the permit; and 34

16 HOUSE BILL 698

(4) comply with §§ 5–303(b)(4) and 5–304 of this title. 1

5–701. 2

(a) In this subtitle the following words have the meanings indicated. 3

(e) (1) “Preneed services” means services that are sold: 4

(i) before the buyer’s death; and 5

(ii) in connection with burial [or cremation]. 6

(2) “Preneed services” includes opening and closing a grave. 7

(f) “Seller” means a registered cemeterian, [registered crematory operator, ] 8
registered seller, or any other person who sells preneed goods or preneed services. 9

5–702. 10

(a) This subtitle does not apply to: 11

(1) the sale of burial space; 12

(2) a preneed contract made by an individual in connection with: 13

(I) practicing funeral direction or practicing mortuary science, as 14
those practices are defined in and regulated by the Health Occupations Article; OR 15

(II) THE OPERATION OF A CREMATORY OR REDUCTION FACILITY 16
SUBJECT TO REGULATION UNDER THE HEALTH OCCUPATIONS ARTICLE; or 17

(3) the preneed sale of burial goods or services by a private family cemetery 18
that does not conduct public sales of burial goods or services. 19

5–707. 20

(f) A trustee may not use any preneed trust funds required to be held in trust in 21
accordance with this subtitle to: 22

(1) purchase an interest in any contract or agreement to which the 23
registrant, the permit holder, or any other person subject to the trust requirements of this 24
subtitle, or any entity owned or under the control of a registrant, a permit holder, or any 25
other person subject to the trust requirements of this subtitle, or a spouse, child, parent, or 26
sibling of a registrant or any other person subject to the trust requirements of this subtitle 27
is a party; or 28

HOUSE BILL 698 17

(2) make any loan or direct or indirect investment of any kind: 1

(i) to any registrant, permit holder, or any other person subject to 2
the trust requirements of this subtitle or to any spouse, child, parent, or sibling of a 3
registrant or any other person subject to the trust requirements of this subtitle; 4

(ii) to or in any entity or business operations owned or under the 5
control of a registrant, a permit holder, or any other person subject to the trust 6
requirements of this subtitle, or a spouse, child, parent, or sibling of a registrant or any 7
other person subject to the trust requirements of this subtitle; 8

(iii) on or in any real property of a cemetery [or a crematory] or the 9
buildings or structures appurtenant to the property; or 10

(iv) in any permanent improvements of a cemetery, [a crematory,] 11
the facilities of a cemetery [or crematory], or the buildings or structures appurtenant to a 12
cemetery [or crematory]. 13

[5–803. 14

(a) (1) In this section the following words have the meanings indicated. 15

(2) “Eligible dependent” means a veteran’s spouse, a veteran’s unmarried 16
child under the age of 21 years, or a veteran’s unmarried adult child who before the age of 17
21 became permanently incapable of self–support because of physical or mental disability. 18

(3) (i) “Identifying informatio n” means data required by a veterans 19
service organization to verify the eligibility of a veteran or an eligible dependent for burial 20
in a national or state veterans cemetery. 21

(ii) “Identifying information” includes name, service number, Social 22
Security number, date of birth, date of death, place of birth, and copy of the death 23
certificate. 24

(4) “Veterans service organization” means an association or other entity 25
organized for the benefit of veterans that has been recognized by the U.S. Department of 26
Veterans Affairs or chartered by Congress and any employee or representative of the 27
association or entity. 28

(b) (1) If a licensed funeral establishment or a crematory is in possession of 29
cremated human remains or hydrolyzed remains that have been unclaimed for 90 days or 30
more, the licensed funeral establishment or holder of the permit for the business of 31
operating a crematory shall provide identifying information of the unclaimed cremains or 32
hydrolyzed remains to a veterans service organization in order for the veterans service 33
organization to determine if the unclaimed cremains or hydrolyzed remains are those of a 34
veteran or an eligible dependent. 35
18 HOUSE BILL 698

(2) (i) Subparagraph (ii) of this paragraph does not apply if: 1

1. an authorizing agent directs otherwise; or 2

2. a reduction facility reasonably concludes based on the 3
identifying information or other evidence that a decedent does not qualify for disposition 4
benefits associated with veterans status. 5

(ii) A reduction facility in possession of human r emains that are 6
being processed by natural organic reduction shall provide identifying information to a 7
veterans service organization within 5 business days after natural organic reduction is 8
initiated to determine if the soil remains are those of a veteran or an eligible dependent. 9

(c) Within 45 days after receipt of the information required by subsection (b) of 10
this section, the veterans service organization shall notify the licensed funeral 11
establishment, permit holder, or reduction facility: 12

(1) whether the cremains, hydrolyzed remains, or soil remains are those of 13
a veteran or an eligible dependent; and 14

(2) if so, whether the veteran or eligible dependent is eligible for burial in 15
a veterans cemetery. 16

(d) If the unclaimed cremains or hydrolyzed remains are those of a veteran or an 17
eligible dependent, the licensed funeral establishment or permit holder may transfer the 18
cremains to a veterans service organization for the purpose of disposition of the cremains 19
or hydrolyzed remains. 20

(e) If the unclaimed soil remains are those of a veteran or an eligible dependent, 21
the reduction facility may: 22

(1) transfer a portion of the soil remains not exceeding 300 cubic inches in 23
volume to a veterans service organization that grants permission for the pu rpose of 24
disposition; and 25

(2) if authorized by the cemetery or owner, transfer the balance of soil 26
remains to a cemetery or the owner of a woodland protected under the Forest Conservation 27
Act. 28

(f) If a veterans service organization does not take posse ssion of unclaimed 29
cremains or hydrolyzed remains that qualify for a plot in a State veterans cemetery under 30
§ 9 –906 of the State Government Article, within 10 days after the licensed funeral 31
establishment or permit holder receives the notification require d under subsection (c) of 32
this section, the licensed funeral establishment or permit holder shall: 33

HOUSE BILL 698 19

(1) notify the Department of Veterans and Military Families of the status 1
of the cremains or hydrolyzed remains for the purpose of the appropriate disposition of the 2
cremains or hydrolyzed remains; and 3

(2) transfer the cremains or hydrolyzed remains to the Department of 4
Veterans and Military Families for the purpose of the appropriate disposition of the 5
cremains or hydrolyzed remains. 6

(g) If a veterans service organization does not take possession of a portion of 7
unclaimed soil remains under subsection (e)(1) of this section that qualifies for a plot in a 8
State veterans cemetery under § 9 –906 of the State Government Article, within 10 days 9
after the reduction facility receives the notification, the reduction facility shall: 10

(1) notify the Department of Veterans and Military Families of the status 11
of the soil remains for the purpose of the appropriate disposition of the soil remains; 12

(2) transfer the soil remains to the Department of Veterans and Military 13
Families for the purpose of the appropriate disposition of the soil remains; and 14

(3) if authorized by the cemetery or owner, transfer the balance of the soil 15
remains to a cemetery or the owner of a woodland protected under the Forest Conservation 16
Act.] 17

5–804. 18

(a) In this section, “perpetual care” has the meaning stated in § 5–601 of this title. 19

(b) A registered cemeterian [, registered crematory operator, ] or permit holder 20
that engages in the operation of a cemetery[, crematory,] or burial goods business who sells 21
or offers to sell to the public [cremation services, ] a burial lot [,] or a burial right in a 22
cemetery for pet remains as to which perpetual care is stated or implied owes a duty of 23
perpetual care for the cemetery in which the pet remains are interred. 24

(c) The Director shall adopt regulations in accordance with § 5–204(a) of this title 25
to enforce the requirements of this section. 26

5–901. 27

(a) Except as otherwise provided in this title, an individual may not engage in 28
cemetery operations, attempt to engage in cemetery operations, or provide or offer to 29
provide burial space, goods, and services unless the individual is authorized as a registrant. 30

(b) Except as otherwise provided in this title, an individual may not engage in a 31
burial goods business or attempt to provide burial goods unless the individual is authorized 32
as a registrant. 33

20 HOUSE BILL 698

[(c) Except as otherwise provided in this title, an individual may not engage in the 1
operation of a crematory, attempt to engage in the operation of a crematory, or provide or 2
offer to provide cremation services unless the individual is authorized as a registrant. 3

(d) Except as otherwise provided in this title, an individual may not engage in the 4
operation of a reduction facility, attempt to engage in the operation of a reduction facility, 5
or provide or offer to provide natural organic reduction unless the individual is a registered 6
reduction operator.] 7

5–902. 8

Except for a registered cemeterian [, registered crematory operator, registered 9
reduction operator,] or registered seller who operates a business as a sole proprietor or a 10
registrant employed by a sole proprietor, a person may not engage in the operation of a 11
cemetery[, crematory, reduction facility,] or burial goods business unless: 12

(1) the business is a corporation, limited liability company, or partnership; 13
and 14

(2) the corporation, limited liability company, or partnership holds a 15
permit issued under this title. 16

5–903. 17

Unless a person is authorized as a registrant, a person may not represent to the 18
public, by use of a title, including cemeterian, registered cemeterian, [crematory operator, 19
registered crematory operator, registered reduction operator,] burial goods seller, or 20
registered seller, by description of services, methods, or procedures, or otherwise, that the 21
person is authorized to engage in the operation of a cemetery [, crematory, or reduction 22
facility] or provide burial goods. 23

Article – Courts and Judicial Proceedings 24

5–642. 25

(a) In this section, “veteran” has the meaning stated in § 9 –901 of the State 26
Government Article. 27

(b) A licensed funeral establishment or holder of a permit to engage in the 28
business of a crematory who acts in good faith is not civilly liable for transferring the 29
unclaimed cremated remains of a veteran or an eligible dependent of a veteran to a veterans 30
service organization for purposes of disposition as provided in [§ 5–803 of the Business 31
Regulation Article and] § 7–406 of the Health Occupations Article. 32

(c) A veterans service organization that acts in good faith is not civilly liable for 33
receiving the unclaimed cremated remains of a veteran or an eligible dependent of a veteran 34
HOUSE BILL 698 21

for purposes of disposition as provided in [§ 5–803 of the Business Regulation Article and] 1
§ 7–406 of the Health Occupations Article. 2

Article – Health – General 3

5–508. 4

(a) In this subtitle the following words have the meanings indicated. 5

(b) “Alkaline hydrolysis” has the meaning stated in [§ 5 –101 of the Business 6
Regulation] § 7–101 OF THE HEALTH OCCUPATIONS Article. 7

(e) “Crematory” has the meaning stated in [§ 5–101 of the Business Regulation] 8
§ 7–101 OF THE HEALTH OCCUPATIONS Article. 9

(g) “Natural organic reduction” has the meaning stated in [§ 5 –101 of the 10
Business Regulation] § 7–101 OF THE HEALTH OCCUPATIONS Article. 11

(j) “Reduction facility” has the meaning stated in [§ 5 –101 of the Business 12
Regulation] § 7–101 OF THE HEALTH OCCUPATIONS Article. 13

(k) “Soil remains” has the meaning stated in [§ 5–101 of the Business Regulation] 14
§ 7–101 OF THE HEALTH OCCUPATIONS Article. 15

Article – Health Occupations 16

Title 7. Morticians [and], Funeral Directors, AND CREMATORIES. 17

7–101. 18

(a) In this title the following words have the meanings indicated. 19

(a–1) “Alkaline hydrolysis” [has the meaning stated in § 5 –101 of the Business 20
Regulation Article ] MEANS THE PROCESS OF REDUCING HUMAN REMAI NS USING 21
WATER, ALKALINE CHEMICALS , AND HEAT INSIDE A WA TERTIGHT VESSEL TO 22
ACCELERATE DECOMPOSITION. 23

(b) “Apprentice” means an individual licensed by the Board who assists a licensed 24
mortician or funeral director in the practice of mortuary science or funeral direction, under 25
direct supervision of a licensed mortician or funeral director. 26

(c) “Apprentice sponsor” means an individual who: 27

(1) Is a licensed mortician or funeral director whose license is in good 28
standing with the Board; 29

22 HOUSE BILL 698

(2) Has practiced mortuary science as a licensed mortician or funeral 1
director in Maryland at least 1 year immediately prior to accepting the applicant as an 2
apprentice; and 3

(3) Provides direct supervision to an apprentice. 4

(c–1) “Authorizing agent” has the meaning stated in § 5–508 of the Health – General 5
Article. 6

(d) “Board” means the State Board of Morticians [and], Funeral Directors, AND 7
CREMATORIES. 8

(e) (1) “Business of operating a crematory” means controlling or managing a 9
crematory. 10

(2) “Business of operating a crematory” does not include: 11

(i) The practice of funeral direction or the practice of mortuary 12
science; or 13

(ii) 1. Assistance in making decisions and filling out forms that 14
are not directly related to cremation; 15

2. Obtaining vital statistics, signatures, and other 16
information necessary to complete a death certificate; 17

3. Transportation of a body to the place of disposition; or 18

4. Any other services regarding the disposition of a body that 19
are not directly related to cremation. 20

(f) (1) “Corporation” means a mortuary science business whose articles of 21
incorporation are in good standing with the Maryland State Department of Assessments 22
and Taxation, or its successor, the initial business for which the license is issued must have 23
been incorporated on or before June 1, 1945 and have “Incorporated”, “Inc.”, or 24
“Corporation” in its name. 25

(2) “Corporation” does not include, for purposes of issuing a corporation 26
license, a “professional association” (P.A.) or a “professional corporation” (P.C.). 27

(g) “Courtesy card” means a license issued by the Board to licensed practitioners 28
of mortuary science in other states, to make a removal of a dead human body in this State 29
and to return the body to another state or country, to return dead bodies from another state 30
or country to this State, to fill out the family history portion of the death certificate, and to 31
sign the death certificate in the holder’s capacity as a licensed practitioner of mortuary 32
science. 33

HOUSE BILL 698 23

(h) “Cremation” means disposition of a dead human body by means of 1
incineration. 2

(i) “Crematory” means a building, portion of a building, or structure that houses 3
the necessary appliances and facilities for cremation or alkaline hydrolysis. 4

(J) (1) “ENGAGE IN THE OPERATI ON OF A CREMATORY ” MEANS 5
CONTROLLING OR MANAGING A CREMATORY. 6

(2) “ENGAGE IN THE OPERATION OF A CREMATORY” INCLUDES: 7

(I) PROVIDING BURIAL GOODS AS DEFINED IN § 5–101 OF THE 8
BUSINESS REGULATION ARTICLE; AND 9

(II) SELLING PRE–NEED GOODS. 10

(3) “ENGAGE IN THE OPERATI ON OF A CREMATORY ” DOES NOT 11
INCLUDE: 12

(I) THE PRACTICE OF FUNERAL DIRECTION OR THE PRACTICE 13
OF MORTUARY SCIENCE; OR 14

(II) 1. ASSISTANCE IN MAKING DECISIONS AND FILLING OUT 15
FORMS THAT ARE NOT DIRECTLY RELATED TO CREMATION; 16

2. OBTAINING VITAL STATI STICS, SIGNATURES, AND 17
OTHER INFORMATION NECESSARY TO COMPLETE A DEATH CERTIFICATE; 18

3. TRANSPORTATION OF A B ODY TO THE PLACE OF 19
DISPOSITION; OR 20

4. ANY OTHER SERVICES REGARDING THE DISPOSITION 21
OF A BODY THAT ARE NOT DIRECTLY RELATED TO CREMATION. 22

(K) (1) “ENGAGE IN THE OPERATION OF A REDUCTION FACILITY” MEANS 23
CONTROLLING OR MANAGING A REDUCTION FACILITY. 24

(2) “ENGAGE IN THE OPERATI ON OF A REDUCTION FA CILITY” 25
INCLUDES: 26

(I) PROVIDING BURIAL GOODS AS DEFINED IN § 5–101 OF THE 27
BUSINESS REGULATION ARTICLE; AND 28

(II) SELLING PRE–NEED GOODS. 29
24 HOUSE BILL 698

(3) “ENGAGE IN THE OPERATI ON OF A REDUCTION FA CILITY” DOES 1
NOT INCLUDE: 2

(I) THE PRACTICE OF FUNERAL DIRECTION OR THE PRACTICE 3
OF MORTUARY SCIENCE; OR 4

(II) 1. ASSISTANCE IN MAKING DECISIONS AND FILLING OUT 5
FORMS THAT ARE NOT DIRECTLY RELATED TO NATURAL ORGANIC REDUCTION; 6

2. OBTAINING VITAL STATI STICS, SIGNATURES, AND 7
OTHER INFORMATION NECESSARY TO COMPLETE A DEATH CERTIFICATE; 8

3. TRANSPORTATION OF A B ODY TO THE PLACE OF 9
DISPOSITION; OR 10

4. ANY OTHER SERVICES REGARDING THE DISPOSITION 11
OF A BODY THAT ARE NOT DIRECTLY RELATED TO NATURAL ORGANIC REDUCTION. 12

[(j)] (L) “Funeral director” means an individual who is licensed by the Board to 13
practice all aspects of mortuary science except for embalming. 14

[(k)] (M) “Funeral establ ishment” means any building, structure, or premises 15
from which the business of practicing mortuary science is conducted. 16

[(l)] (N) (1) “Human remains” means: 17

(i) The body of a deceased person; or 18

(ii) A part of a body or limb that has been remove d from a living 19
person. 20

(2) “Human remains” includes the body or part of a body or limb in any 21
state of decomposition. 22

(3) “Human remains” does not include soil remains produced after the 23
completion of natural organic reduction. 24

[(l–1)] (O) “Hydrolyzed remains” [has the meaning stated in § 5 –101 of the 25
Business Regulation Article ] MEANS THE BONE FRAGM ENTS PRODUCED BY THE 26
COMPLETION OF ALKALINE HYDROLYSIS. 27

[(m)] (P) (1) “License” means, unless the context requires otherwise, a license 28
issued by the Board. 29

HOUSE BILL 698 25

(2) “License” includes, unless otherwise indicated: 1

(i) A mortician license; 2

(ii) An apprentice license; 3

(iii) A funeral director license; 4

(iv) A surviving spouse license; 5

(v) A corporation license; 6

(vi) A funeral establishment license; and 7

(vii) A courtesy card. 8

[(n)] (Q) “Licensed apprentice” means, unless the context requires otherwise, an 9
apprentice who is licensed by the Board to assist a licensed mortician or funeral director in 10
the practice of mortuary science or funeral direction. 11

[(o)] (R) “Licensed funeral director” means, unless the context requires 12
otherwise, a funeral director who is licensed by the Board to practice funeral direction. 13

[(p)] (S) “Licensed funeral establishment” means, unless the conte xt requires 14
otherwise, a funeral establishment that is licensed by the Board. 15

[(q)] (T) “Licensed mortician” means, unless the context requires otherwise, a 16
mortician who is licensed by the Board under this title to practice mortuary science. 17

[(r)] (U) “Licensee” means an individual or entity licensed by the Board to 18
practice mortuary science to the extent determined by the Board. 19

[(s)] (V) “Mortician” means an individual who practices mortuary science. 20

[(s–1)] (W) “Natural organic reduction” [has the meaning stated in § 5 –101 of the 21
Business Regulation Article] MEANS THE CONTAINED ACCELERATED CONVERSION OF 22
HUMAN REMAINS INTO SOIL. 23

[(t)] (X) (1) “Practice funeral direction” means: 24

(i) To operate a funeral establishment; 25

(ii) For compensation, to prepare a dead human body for disposition; 26
or 27

26 HOUSE BILL 698

(iii) For compensation, to arrange for or make final disposition of a 1
dead human body. 2

(2) “Practice funeral direction” does not include: 3

(i) For compensation, disinfecting or preserving a dead human body 4
or any of its parts by arterial or cavity injection or any other type of preservation; or 5

(ii) The business of operating a crematory or reduction facility. 6

[(u)] (Y) (1) “Practice mortuary science” means: 7

(i) To operate a funeral establishment; 8

(ii) For compensation, to prepare a dead human body for disposition; 9
or 10

(iii) For compensation, to arrange for or make final disposition of a 11
dead human body. 12

(2) “Practice mortuary science” includes: 13

(i) The practice of funeral direction; and 14

(ii) Disinfecting or preserving a dead human body or any of its parts 15
by arterial or cavity injection. 16

(3) “Practice mortuary science” does not include: 17

(i) The pickup, removal, or transportation of a dead human body, if 18
the unlicensed individual is acting under the direction of a licensed mortician or funeral 19
director; or 20

(ii) The business of operating a crematory or reduction facility. 21

[(v)] (Z) “Pre–need contract” means an agreement between a consumer and a 22
licensed funera l director, licensed mortician, REGISTERED CREMATORY OPERATOR, 23
REGISTERED REDUCTION OPERATOR, or surviving spouse to provide any goods and 24
services purchased prior to the time of death [. Goods and services shall include ], 25
INCLUDING: 26

(1) A service, including any form of preservation and disposition or 27
cremation, that a mortician normally provides in the ordinary course of business; or 28

(2) Merchandise, including a casket, vault, or clothing, that a mortician 29
normally provides in the ordinary course of business. 30
HOUSE BILL 698 27

(AA) (1) “PRE–NEED GOODS ” MEANS BURIAL GOODS T HAT ARE SOLD 1
BEFORE THE BUYER’S DEATH. 2

(2) “PRE–NEED GOODS” DOES NOT INCLUDE BURIAL SPACE. 3

[(v–1)] (BB) “Reduction facility” [has the meaning stated in § 5–101 of the Business 4
Regulation Ar ticle] MEANS A BUILDING , PORTION OF A BUILDIN G, OR STRUCTURE 5
THAT HOUSES THE NECE SSARY APPLIANCES , CONTAINERS, AND FACILITIES FOR 6
PERFORMING NATURAL ORGANIC REDUCTION. 7

(CC) “REGISTERED CREMATORY OPERATOR” MEANS AN INDIVIDUAL 8
REGISTERED TO OPERATE A CREMATORY AS A SOLE PROPRIETOR OR ON BEHALF OF 9
A SOLE PROPRIETOR OR PERMIT HOLDER. 10

[(v–2)] (DD) “Registered reduction operator” [has the meaning stated in § 5 –101 of 11
the Business Regulation Article ] MEANS AN INDIVIDUAL REGISTERED TO OPERATE A 12
REDUCTION FACILI TY AS A SOLE PROPRIE TOR OR ON BEHALF OF A SOLE 13
PROPRIETOR OR A PERMIT HOLDER. 14

(EE) “REGISTRATION” MEANS A REGISTRATION ISSUED BY THE BOARD 15
AUTHORIZING AN INDIV IDUAL TO OPERATE A C REMATORY OR A REDUCT ION 16
FACILITY. 17

(FF) “RESPONSIBLE PARTY ” MEANS A SOLE PROPRIE TOR OR THE 18
INDIVIDUAL DESIGNATE D BY A PARTNERSHIP , LIMITED LIABILITY CO MPANY, OR 19
CORPORATION TO BE RE SPONSIBLE FOR THE OP ERATIONS OF A CREMAT ORY OR 20
REDUCTION FACILITY. 21

[(v–3)] (GG) “Soil remains” [has the meaning stated in § 5 –101 of the Business 22
Regulation Article] MEANS THE SOIL PRODU CED AT FINAL DISPOSI TION OF A DEAD 23
HUMAN BODY AT A REDU CTION FACILITY BY CO MPLETION OF NATURAL ORGANIC 24
REDUCTION. 25

[(w)] (HH) “Surviving spouse” means the legal widow or widower of a licensed 26
funeral director or licensed mortician, whose license was in good standing at the time of 27
death, and who at the time of death, wholly or partly owned and operated a mortuary 28
science business. 29

7–102. 30

(a) This title does not limit the right of an individual to practice a health 31
occupation that the individual is authorized to practice under this article. 32

28 HOUSE BILL 698

(b) [(1) In this subsection, “registrant or permit holder” means a person 1
regulated under Title 5 of the Business Regulation Article as a regi stered cemeterian, 2
registered reduction operator, registered seller, or holder of a permit to operate a cemetery, 3
reduction facility, or burial goods business. 4

(2)] This title does not apply to: 5

[(i)] (1) The business of operating a cemetery, including the sale of 6
cemetery lots, grave sites, mausoleums, monuments, lawn crypts, or vaults; OR 7

[(ii) The ownership of a crematory or reduction facility or the 8
business of operating a crematory or reduction facility in which: 9

1. A registrant or permit holder owns a greater percentage of 10
the crematory or reduction facility than a person licensed under this title; 11

2. Ownership is equal between a registrant or permit holder 12
and a person licensed under this title; or 13

3. Neither a registrant, pe rmit holder, or person licensed 14
under this title has an ownership interest in the crematory or reduction facility; or 15

(iii)] (2) The ownership of a crematory or the business of operating 16
a crematory or incinerator at a licensed medical facility or educational institution. 17

Subtitle 2. State Board of Morticians [and], Funeral Directors, AND CREMATORIES. 18

7–201. 19

There is a State Board of Morticians [and], Funeral Directors, AND CREMATORIES 20
in the Department. 21

7–202. 22

(a) (1) The Board consists of 11 members. 23

(2) Of the 11 Board members: 24

(i) 6 shall be licensed morticians or licensed funeral directors; and 25

(ii) 5 shall be consumer members. 26

(3) All Board members shall be residents of the State. 27

(4) The Governor shall appoint each mem ber with the advice of the 28
Secretary, and with the advice and consent of the Senate. 29
HOUSE BILL 698 29

(5) The Board may not have more than one member who is employed by or 1
affiliated with, directly or indirectly, the same corporation, professional association, or 2
other entity, that owns, directly or through a subsidiary corporation, professional 3
association, or other entity, one or more funeral homes. 4

(i) [(1)] The Governor may remove an appointed member: 5

[(i)] (1) For incompetence or misconduct; [or] 6

[(ii)] (2) Who, because of events that occur after the member’s 7
appointment or reappointment to the Board, causes the Board to be in violation of the 8
prohibition set forth in subsection (a)(5) of this section; 9

(3) FOR REPEATED AND UNEXPLAINED ABSENCES; OR 10

(4) FOR ANY JUST AND REASONABLE CAUSE. 11

[(2) Upon the recommendation of the Secretary, the Governor may remove 12
an appointed member whom the Secretary finds to have been absent from 2 successive 13
Board meetings without adequate reason.] 14

7–204. 15

(a) A majority of the [full authorized membership] THEN–SERVING APPOINTED 16
MEMBERS of the Board is a quorum to do business. 17

(E) AN ACTION MAY BE TAKE N BY A SIMPLE MAJORI TY VOTE OF THE 18
QUORUM. 19

7–205. 20

(c) [In conjunction with the Office of Cemetery Oversight, the] THE Board shall: 21

(1) Establish a process for regulating crematories and reduction facilities 22
that provides for: 23

(i) Registration of crematory operators and reduction operators or 24
issuance of permits for operating crematories and reduction facilities, and renewal; 25

(ii) Applications, including certification of ownership and 26
identification of individuals who will perform cremation, alkaline hydrolysis, or natural 27
organic reduction; 28

(iii) Registration or permit fees; 29

30 HOUSE BILL 698

(iv) Inspections and oversight; 1

(v) Grounds for discipline and penalties; and 2

(vi) Complaints and hearings; and 3

(2) Adopt regulations that [are identical to regulations adopted by the 4
Director of the Office of Cemetery Oversight to]: 5

(i) Implement item (1) of this subsection; 6

(ii) Ensure public health and safety; [and 7

(iii) Meet the requirements of § 5 –204(a)(3) of the Business 8
Regulation Article]: 9

(I) (III) REQUIRE A REGISTERED REDUCTION OPERATOR T O 10
NOTIFY THE AUTHORIZI NG AGENT IN WRITING AND BEFORE INITIATIN G NATURAL 11
ORGANIC REDUCTION THAT A PERSON WHO USES OR DISPOSES OF SOIL REMAINS IS 12
IN VIOLATION OF SUBJECT TO § 5–514 OF THE HEALTH – GENERAL ARTICLE; 13

(II) (IV) REQUIRE A REDUCTION F ACILITY TO MONITOR A ND 14
RECORD WRITTEN VERIF ICATION THAT THE TEM PERATURE DURING EACH 15
INSTANCE OF A NATURA L ORGANIC REDUCTION PROCESS ATTAINS A SP ECIFIED 16
MINIMUM INTERNAL EQU IPMENT TEMPERATURE F OR A SPECIFIED MINIM UM 17
PERIOD OF TIME; 18

(III) (V) ESTABLISH APPROPRIATE STANDARDS FOR 19
TRAINING AND EXPERIENCE FOR THE REGISTRATION OF REDUCTION OPERATORS; 20

(IV) (VI) PROHIBIT THE USE OF N ATURAL ORGANIC 21
REDUCTION IN ANY INS TANCE IN WHICH THE H UMAN REMAINS ARE KNO WN, OR 22
REASONABLY SUSPECTED, TO BE EMBALMED OR TO HAVE AN INFECTION, DISEASE, 23
OR BIOLOGICAL CONDIT ION THAT RENDERS THE PROCESS OF NATURAL O RGANIC 24
REDUCTION OR THE RES ULTING SOIL REMAINS UNREASONABLY UNSAFE , 25
INCLUDING: 26

1. CREUTZFELDT–JAKOB DISEASE OR OTHE R PRION 27
DISEASE; 28

2. EBOLA VIRUS INFECTION; 29

3. MYCOBACTERIUM TUBERCULOSIS INFECTION; 30

HOUSE BILL 698 31

4. THE PRESENCE OF DIAGN OSTIC OR THERAPEUTIC 1
RADIOISOTOPES; OR 2

5. ANY OTHER INFECTION , DISEASE, OR BIOLOGICAL 3
CONDITION IDENTIFIED BY THE BOARD BASED ON THE RE ASONABLE 4
RECOMMENDATION OF A FEDERAL, STATE, OR LOCAL HEALTH AUTHORITY; 5

(V) (VII) ESTABLISH A MANDATORY CONTAMINATION TESTING 6
PROGRAM FOR REDUCTION FACILITIES TO ENSU RE THE SAFETY OF SOI L REMAINS 7
PRODUCED, INCLUDING THE FOLLOWING MINIMUM PROGRAM ELEMENTS: 8

1. COLLECTING ROUTINE MA TERIAL SAMPLES FROM 9
SOIL REMAINS FOR ANALYSIS USING: 10

A. A RELIABLE SAMPLING METHODOLOGY; AND 11

B. AN APPROPRIATE FREQUE NCY OF SAMPLING , AS 12
RECOMMENDED OR APPRO VED BY THE U.S. COMPOSTING COUNCIL OR ANOTHER 13
RELIABLE SCIENTIFIC ADVISORY AUTHORITY; 14

2. RECORDING AND RETAINI NG THE RESULTS OF AN 15
ANALYSIS OF SAMPLES FROM THE SOIL REMAINS CONDUCTED BY AN INDEPENDENT 16
THIRD–PARTY LABORATORY TO IDENTIFY THE PRESENC E OF HEAVY METALS OR 17
MICROBIAL PATHOGENS ACCORDING TO THE APP ROPRIATE CONTAMINATION 18
PARAMETERS FOR BIOSO LIDS SPECIFIED BY TH E U.S. ENVIRONMENTAL 19
PROTECTION AGENCY UNDER TITLE 40 C.F.R. PART 503, CHAPTER I, 20
SUBCHAPTER O; 21

3. CONDUCTING AN ANALYSI S FOR EACH PRODUCTIO N 22
OF SOIL REMAINS TO E NSURE THAT THE SOIL REMAINS CONTAIN LESS THAN 0.01 23
MG/KG DRY WEIGHT OF SPE CIFIC PHYSICAL CONTAMINANTS, WHICH MAY INCLUDE 24
INTACT BONE, DENTAL FILLINGS, AND MEDICAL IMPLANTS; 25

4. ENSURING THAT NO SOIL REMAINS ARE RELEASED 26
UNTIL THE SOIL REMAI NS COMPLY WITH EACH OF THE APPLICABLE 27
CONTAMINATION TESTING PARAMETERS; AND 28

5. PERIODIC REPORTING OF TESTING RESULTS TO 29
APPROPRIATE STATE AND LOCAL HEALT H AUTHORITIES THAT H AVE REQUESTED 30
THE RESULTS; AND 31

(VI) (VIII) ESTABLISH ANY OTHER R EASONABLE PROHIBITION, 32
RULE, OR REQUIREMENT THE BOARD DETERMINES IS NECESSARY TO PROTECT THE 33
32 HOUSE BILL 698

PUBLIC HEALTH AND SA FETY DURING THE PROC ESS OF NATURAL ORGAN IC 1
REDUCTION; AND 2

(3) ADOPT A CODE OF ETHICS FOR ENGAGING IN THE OPERATION OF 3
A CREMATORY OR REDUCTION FACILITY. 4

7–206. 5

(a) There is a State Board of Morticians [and], Funeral Directors , AND 6
CREMATORIES Fund. 7

(b) (1) The Board may set reasonable fees for its services. 8

(2) The fees charged shall be set so as to approximate the cost of 9
maintaining the Board. 10

(3) Funds to cover the compensation and expenses of the Board members 11
shall be generated by fees set under this section. 12

(4) THE BOARD MAY NOT ASSESS A CREMATORY A PER–OCCURRENCE 13
CREMATION FEE. 14

(c) (1) The Board shall pay all funds collected under this title to th e 15
Comptroller of the State. 16

(2) The Comptroller shall distribute the fees to the State Board of 17
Morticians [and], Funeral Directors, AND CREMATORIES Fund. 18

7–316. 19

(b) Subject to the hearing provisions of § 7 –319 of this subtitle, the Board may 20
deny a license to an applicant for a funeral establishment license, reprimand the holder of 21
a funeral establishment license, place the holder of a funeral establishment license on 22
probation, or suspend or revoke a funeral establishment license if, with the knowle dge or 23
at the direction of the funeral establishment: 24

(2) An employee of the funeral establishment fails to comply with § 25
5–513(b) [and] OR (d) of the Health – General Article; or 26

7–320. 27

(a) Except as provided in this section for an action against a ny health care 28
professional under § 7–316 of this subtitle, any person aggrieved by a final decision of the 29
Board in a contested case, as defined in the Administrative Procedure Act, may petition for 30
judicial review as allowed by the Administrative Procedure Act. 31

HOUSE BILL 698 33

(b) Any health care professional aggrieved by a final decision of the Board under 1
§ 7–316 of this subtitle may not appeal to the Secretary but may take a direct judicial appeal 2
as provided in the Administrative Procedure Act. 3

[(c) If a person notes an appeal from an order of suspension or revocation by the 4
Board, the order is stayed.] 5

SUBTITLE 3A. REGISTRATION. 6

7–3A–01. 7

AN INDIVIDUAL SHALL REGISTER WITH THE BOARD BEFORE THE INDIVIDUAL 8
MAY ENGAGE IN THE OPERATION OF A CREMATORY OR REDUCTION FACILITY IN THE 9
STATE. 10

7–3A–02. 11

(A) IN ORDER TO REGISTER , AN APPLICANT SHALL MEET THE 12
REQUIREMENTS OF THIS SECTION. 13

(B) THE APPLICANT MUST BE MUST: 14

(1) BE AT LEAST 18 YEARS OLD. 15

(C) THE APPLICANT MUST BE; 16

(2) BE OF GOOD MORAL CHARACTER AND REPUTATION. 17

(D) THE APPLICANT MUST BE; 18

(3) ACHIEVE: 19

(I) CERTIFICATION AS A CREMATORY OPERATOR FROM: 20

1. THE CREMATION ASSOCIATION OF NORTH AMERICA 21
(CANA); OR 22

2. THE INTERNATIONAL CEMETERY, CREMATION, AND 23
FUNERAL ASSOCIATION (ICCFA); OR 24

(II) AN EQUIVALENT CERTIFI CATION RECOGNIZED BY THE 25
BOARD; 26

34 HOUSE BILL 698

(4) BE AFFILIATED WITH A CR EMATORY OR REDUCTION FACILITY 1
OPERATED BY A REGISTRANT OR PERMIT HOLDER. 2

(E) THE CREMATORY OR REDU CTION FACILITY WITH WHICH THE 3
APPLICANT IS AFFILIATED MUST BE FINANCIALLY STABLE IN ACCORDANCE WITH § 4
7–3A–04 OF THIS SUBTITLE. 5

7–3A–03.; AND 6

(5) SUCCESSFULLY COMPLETE ANY OTHER TRAINING R ELATED TO 7
THE OPERATION OF A C REMATORY OR REDUCTIO N FACILITY REQUIRED BY THE 8
BOARD IN REGULATION. 9

(A) (B) AN APPLICANT SHALL REGISTER BY: 10

(1) SUBMITTING TO THE BOARD AN APPLICATION ON THE FORM THAT 11
THE BOARD PROVIDES; AND 12

(2) PAYING A NONREFUNDABL E APPLICATION FEE AND ANY OTHER 13
APPLICABLE FEE SET BY THE BOARD. 14

(B) THE APPLICATION SHALL STATE: 15

(1) THE NAME, DATE OF BIRTH, AND RESIDENTIAL ADDRESS OF THE 16
APPLICANT; 17

(2) THE NAME AND FIXED ADDRESS OF THE AFFILIATED CREMATORY; 18

(3) WHETHER THE CREMATORY OR REDUCTION FACILIT Y WITH 19
WHICH THE APPLICANT IS AFFILIATED IS OWN ED OR CONTROLLED BY A SOLE 20
PROPRIETOR, PARTNERSHIP, LIMITED LIABILITY COMPANY, OR CORPORATION; 21

(4) IF THE APPLICANT IS D ESIGNATED AS THE RESPONSIBLE PARTY, 22
THE NAME AND RESIDEN TIAL ADDRESS OF EACH EMPLOYEE WHO SELLS B URIAL 23
SPACE, GOODS, OR SERVICES TO THE PUBLIC FOR THE BUSINESS WHILE ENGAGING 24
IN THE OPERATION OF A CREMATORY OR REDUCTION FACILITY; AND 25

(5) ANY OTHER REASONABLE INFORMATION THAT THE BOARD 26
DETERMINES IS NECESSARY TO CARRY OUT THIS TITLE. 27

7–3A–04. 28

HOUSE BILL 698 35

(A) EACH APPLICANT DESIGN ATED AS THE RESPONSI BLE PARTY SHALL 1
DEMONSTRATE THE FINA NCIAL STABILITY OF THE BUS INESS WITH WHICH THE 2
APPLICANT IS AFFILIA TED BY PROVIDING THE BOARD WITH A FINANCIA L 3
STATEMENT OR OTHER R EPORTS REQUIRED UNDE R SUBSECTION (E) OF THIS 4
SECTION WITH THE APPLICATION FOR REGISTRATION. 5

(B) IF THE BUSINESS IS CO–LOCATED AT A CEMETERY THAT SELLS BURIAL 6
GOODS AND IS AN EXISTING BUSINESS, THE FINANCIAL STATEMENT SHALL: 7

(1) BE ON THE FORM THAT THE BOARD REQUIRES; 8

(2) CONTAIN A STATEMENT B Y A CERTIFIED PUBLIC ACCOUNTANT 9
RETAINED BY THE BUSI NESS, DETAILING THE ASSETS AND LIA BILITIES OF THE 10
CEMETERY FOR THE LAST FISCAL YEAR; AND 11

(3) CONTAIN A REVIEW BY T HE CERTIFIED PUBLIC ACCOUNTANT AS 12
TO THE FINANCIAL STABILITY OF THE CEMETERY. 13

(C) IF THE BUSINESS IS CO –LOCATED AT AN EXISTI NG CEMETERY THAT 14
DOES NOT SELL BURIAL GOODS OR AN EXISTING BURIAL G OODS BUSINESS NOT 15
AFFILIATED WITH A CEMETERY, THE APPLICANT SHALL: 16

(1) COMPLETE A FORM THAT THE BOARD REQUIRES; AND 17

(2) SATISFY CRITERIA THAT THE BOARD ADOPTS UNDER 18
SUBSECTION (E) OF THIS SECTION. 19

(D) IF THE BUSINESS IS A NEW BUSINESS, THE APPLICANT SHALL: 20

(1) COMPLETE A FORM THAT THE BOARD REQUIRES; AND 21

(2) SATISFY CRITERIA THAT THE BOARD ADOPTS UNDER 22
SUBSECTION (E) OF THIS SECTION. 23

(E) (1) THE BOARD SHALL MAKE A DE TERMINATION OF THE F INANCIAL 24
STABILITY OF EACH APPLICANT BASED ON CRITERIA THAT THE BOARD ADOPTS FOR 25
EACH CLASS OF BUSINESS. 26

(2) THE BOARD SHALL ADOPT SEP ARATE CRITERIA TO DE TERMINE 27
THE FINANCIAL STABIL ITY OF APPLICANTS TH AT ARE NEW BUSINESSE S OR 28
EXISTING BUSINESSES. 29

36 HOUSE BILL 698

(3) THE BOARD SHALL REQUIRE THAT ALL FINANCIAL STATEMENTS 1
OF A NEW CEMETERY SU BMITTED UNDER SUBSEC TION (D) OF THIS SECTION BE 2
PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT RETAINED BY THE BUSINESS. 3

7–3A–05. 4

(A) (C) (1) THE BOARD SHALL ISSUE A R EGISTRATION TO AN 5
APPLICANT WHO MEETS THE REQUIREMENTS OF THIS SUBTITLE SECTION. 6

(B) (2) A REGISTRATION ISSUED BY THE BOARD UNDER THIS SUBTITLE 7
SUBSECTION MAY NOT BE TRANSFERRED FROM ONE INDIVIDUAL TO ANOTHER. 8

7–3A–06. 7–3A–03. 9

(A) WHILE A REGISTRATION IS IN EFFECT, THE REGISTRATION AUTHORIZES 10
THE REGISTRANT TO ENGAGE IN THE OPERATION OF A CREMATORY OR REDUCTION 11
FACILITY OR BURIAL GOODS BUSINESS. 12

(B) THIS SUBTITLE DOES NOT LIMIT THE RIGHT OF A PERSON TO PRACTICE 13
FUNERAL DIREC TION OR MORTUARY SCI ENCE IF THE PERSON I S LICENSED OR 14
OTHERWISE AUTHORIZED UNDER THIS TITLE. 15

7–3A–07. 7–3A–04. 16

(A) UNLESS A REGISTRATION IS RENEWED AS PROVIDED IN THIS SECTION, 17
THE REGISTRATION EXP IRES ON THE SECOND A NNIVERSARY OF ITS EF FECTIVE 18
DATE. 19

(B) (1) AT LEAST 90 DAYS BEFORE A REGIST RATION EXPIRES , THE 20
BOARD SHALL MAIL OR ELECTRONICALLY TRANSMIT TO THE REGISTRANT: 21

(I) A RENEWAL APPLICATION FORM; AND 22

(II) A NOTICE THAT STATES: 23

1. THE DATE ON WHICH THE CURRENT REGISTRATION 24
EXPIRES; AND 25

2. THE AMOUNT OF THE RENEWAL FEE. 26

(2) IF AN ELECTRONIC TRAN SMISSION UNDER PARAG RAPH (1) OF 27
THIS SUBSECTION IS R ETURNED TO THE BOARD AS UNDELIVERABL E, THE BOARD 28
SHALL MAIL TO THE RE GISTRANT, AT THE LAST KNOWN AD DRESS OF THE 29
HOUSE BILL 698 37

REGISTRANT, THE MATER IALS REQUIRED UNDER PARAGRAPH (1) OF THIS 1
SUBSECTION WITHIN 10 BUSINESS DAYS AFTER THE DATE THE BOARD RECEIVED 2
THE NOTICE THAT THE ELECTRONIC TRANSMISSION WAS UNDELIVERABLE. 3

(C) BEFORE A REGISTRATION EXPIRES, THE REGISTRANT PERIO DICALLY 4
MAY RENEW IT FOR AN ADDITIONAL 2–YEAR TERM, IF THE REGISTRANT: 5

(1) IS OTHERWISE ENTITLED TO BE REGISTERED; 6

(2) MEETS THE QUALIFICATI ONS SET FORTH FOR AN ORIGINAL 7
REGISTRATION; 8

(3) PAYS THE RENEWAL FEE SET BY THE BOARD; AND 9

(4) SUBMITS TO THE BOARD A RENEWAL APPLICATION ON THE FORM 10
THAT THE BOARD PROVIDES; AND 11

(5) ANY OTHER DOCUMENTATION THAT THE BOARD REQUIRES. 12

(D) THE BOARD SHALL RENEW THE REGISTRATION OF EACH REGISTRANT 13
WHO MEETS THE REQUIREMENTS OF THIS SECTION. 14

7–3A–08. 15

7–3A–05. 16

THE BOARD SHALL REINSTATE THE REGIST RATION OF AN INDIVID UAL WHO 17
HAS FAILED TO RENEW A CREMATORY OR REDUC TION FACILITY OPERAT OR 18
REGISTRATION FOR ANY REASON, IF THE INDIVIDUAL: 19

(1) REQUESTS THAT THE BOARD REINSTATE THE REGISTRATION; 20

(2) MEETS THE APPLICABLE REGISTRATION RENEWAL 21
REQUIREMENTS UNDER § 7–3A–04 OF THIS SUBTITLE; 22

(3) PAYS THE REINSTATEMENT FEE SET BY THE BOARD; AND 23

(4) SUBMITS TO THE BOARD AN AFFIDAVIT ST ATING THAT THE 24
INDIVIDUAL, WHILE THE INDIVIDUAL ’S REGISTRATION WAS EXPIRED, DID NOT 25
ENGAGE IN THE FOLLOWING IN THE STATE: 26

(I) OPERATE A CREMATORY OR REDUCTION FACILITY; OR 27

38 HOUSE BILL 698

(II) ACT AS A REGISTERED C REMATORY OR REDUCTIO N 1
FACILITY OPERATOR. 2

7–3A–06. 3

WITHIN 1 WEEK AFTER THE EFFEC TIVE DATE OF THE CHA NGE, THE 4
APPLICANT DESIGNATED AS T HE RESPONSIBLE PARTY OR THE REGISTERED 5
RESPONSIBLE PARTY SHALL SUBMIT TO THE BOARD AN APPLICATION FORM THAT 6
SHOWS A CHANGE IN: 7

(1) THE CREMATORY OR REDU CTION FACILITY WITH WHICH A 8
REGISTRANT IS AFFILIATED; 9

(2) THE INDIVIDUAL DESIGNATED AS THE RESPONSIBLE PARTY; 10

(3) THE EMPLOYEES OF THE BUSINESS WHO ENGAGE IN THE SALE OF 11
CREMATION SERVICES TO THE PUBLIC; 12

(4) THE OFFICERS, BOARDS, MEMBERS, OR AGENTS OF THE PER MIT 13
HOLDER; OR 14

(5) THE NAME OR ADDRESS OF THE REGISTRANT OR PERMIT HOLDER. 15

7–3A–09. 7–3A–07. 16

EACH REGISTRANT SHALL DISPLAY THE REGISTRATION CONSPICUOUSLY AT 17
THE BUSINESS ADDRESS OF THE REGISTRANT. 18

7–3A–10. 7–3A–08. 19

(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 7–3A–12 § 7–3A–10 OF 20
THIS SUBTITLE , THE BOARD MAY DENY A REGI STRATION TO AN APPLI CANT, 21
REPRIMAND A PERSON SUBJECT TO THE REGISTRATION PROVISIONS OF THIS TITLE, 22
OR SUSPEND OR REVOKE A REGISTRATION IF AN APPLICANT, A REGISTRANT, OR AN 23
AGENT, AN EMPLOYEE, AN OFFICER, A DIRECTOR, OR A PARTNER OF THE APPLICANT 24
OR REGISTRANT: 25

(1) FRAUDULENTLY OR DECEP TIVELY OBTAINS OR AT TEMPTS TO 26
OBTAIN A REGISTRATION; 27

(2) FRAUDULENTLY OR DECEPTIVELY USES A REGISTRATION; 28

HOUSE BILL 698 39

(3) UNDER THE LAWS OF THE UNITED STATES OR OF ANY STAT E, IS 1
CONVICTED OF: 2

(I) A FELONY; OR 3

(II) A MISDEMEANOR THAT IS DIRECTLY RELATED TO THE 4
FITNESS AND QUALIFIC ATIONS OF THE APPLIC ANT OR REGISTRANT TO OWN OR 5
OPERATE A CREMATORY OR REDUCTION FACILITY; 6

(4) FAILS TO PROVIDE OR M ISREPRESENTS ANY INF ORMATION 7
REQUIRED TO BE PROVIDED UNDER THIS TITLE; 8

(5) VIOLATES THIS TITLE; 9

(6) VIOLATES THE CODE OF ETHICS ADOPTED BY THE BOARD; 10

(7) VIOLATES A REGULATION ADOPTED UNDER THIS TITLE; 11

(8) FAILS TO PROVIDE REAS ONABLE AND ADEQUATE SUPERVISION 12
OF THE OPERATION OF THE CREMATORY OR REDUCTION FACILITY; 13

(9) REFUSES TO ALLOW AN INSPECTION REQUIRED BY THIS TITLE; 14

(10) FAILS TO COMPLY WITH AN ORDER OF THE BOARD; 15

(11) FAILS TO COMPLY WITH ANY TERMS OF SETTLEM ENT UNDER A 16
BINDING ARBITRATION AGREEMENT; 17

(12) (11) IS FOUND GUILTY BY A COURT IN THE STATE OF VIOLATING 18
AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICES PROVISION UNDER TITLE 19
13 OF THE COMMERCIAL LAW ARTICLE; OR 20

(13) (12) FAILS TO COMPLY WITH § 5–513 OF THE HEALTH – 21
GENERAL ARTICLE. 22

(B) (1) IF A PERSON IS CHARGED WITH A VIOLATION OF THIS TITLE THAT 23
COULD RESULT IN SUSPENSION OR REVOCATION OF A REGISTRATION, THE BOARD 24
MAY SEEK AN IMMEDIATE RESTRAINING ORDER IN A CIRCUIT COURT IN THE STATE 25
TO PROHIBIT THE PERSON FROM ENGAGING IN THE OPERATION OF ANY CREMATORY 26
OR REDUCTION FACILITY. 27

(2) THE RESTRAINING ORDER IS IN EFFECT UNTIL: 28

40 HOUSE BILL 698

(I) THE COURT LIFTS THE ORDER; OR 1

(II) THE CHARGES ARE ADJUDICATED OR DISMISSED. 2

(C) IF A PERSON IS CHARGE D WITH A VIOLATION O F THIS TITLE THAT 3
COULD RESULT IN SUSPENSION OR REVOCATION OF A REGISTRATION, THE BOARD 4
MAY PETITION A COURT TO: 5

(1) APPOINT A RECEIVER OR TRUSTEE TO TAKE CHAR GE OF THE 6
ASSETS AND OPERATE T HE BUSINESS OF THE P ERSON IN THE EVENT T HAT THE 7
REGISTRATION IS SUSPENDED OR REVOKED; AND 8

(2) TAKE ANY ACTIONS AS ARE APPRO PRIATE TO PROTECT TH E 9
PUBLIC INTEREST. 10

(D) (B) INSTEAD OF OR IN ADDI TION TO REPRIMANDING A PERSON, OR 11
SUSPENDING OR REVOKI NG A REGISTRATION , THE BOARD MAY IMPOSE A CI VIL 12
PENALTY: 13

(1) NOT TO EXCEED $5,000 $10,000 FOR EACH VIOLATION O F THIS 14
TITLE OR AN ORDER OF THE BOARD UNDER THIS TITLE; AND 15

(2) NOT TO EXCEED $500 $1,000 FOR EACH DAY A VIOLA TION 16
CONTINUES PAST THE TIME SET FOR ITS CORRECTION. 17

(E) (C) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 18
THIS SECTION, THE BOARD SHALL CONSIDER: 19

(1) THE SERIOUSNESS OF THE VIOLATION; 20

(2) THE HARM CAUSED BY THE VIOLATION; 21

(3) THE GOOD FAITH EFFORTS OF THE PERSON; AND 22

(4) ANY HISTORY OF PREVIOUS VIOLATIONS BY THE PERSON. 23

(F) (D) ANY CIVIL PENALTIES C OLLECTED UNDER THIS SEC TION SHALL 24
BE PAID INTO THE GENERAL FUND OF THE STATE. 25

(G) (E) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 26
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A R EGISTRATION 27
OR THE REPRIMAND OF A REGISTRANT WHEN AN APPLICANT OR A REGISTRANT, OR 28
AN AGENT , AN EMPLOYEE , AN OFFICER , OR A PARTNER OF AN A PPLICANT OR A 29
HOUSE BILL 698 41

REGISTRANT, IS CONVICTED OF A FE LONY OR MISDEMEANOR DESCRIBED IN 1
SUBSECTION (A)(3) OF THIS SECTION: 2

(1) THE NATURE OF THE CRIME; 3

(2) THE RELATIONSHIP OF T HE CRIME TO THE ACTI VITIES 4
AUTHORIZED BY THIS TITLE; 5

(3) THE LENGTH OF TIME SINCE THE CONVICTION; AND 6

(4) THE BEHAVIOR AND ACTI VITIES OF THE APPLIC ANT OR 7
REGISTRANT, OR ANY AGENT , EMPLOYEE, OFFICER, BOARD, OR PARTNER OF AN 8
APPLICANT OR A REGISTRANT, BEFORE AND AFTER THE CONVICTION. 9

7–3A–11. 7–3A–09. 10

(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION, THE BOARD OR THE 11
BOARD’S DESIGNEE SHALL COM MENCE PROCEEDINGS ON A COMPLAINT 12
REGARDING A VIOLATION OF THIS SUBTITLE MADE BY ANY PERSON TO THE BOARD. 13

(B) A COMPLAINT SHALL: 14

(1) BE IN WRITING; AND 15

(2) STATE SPECIFICALLY TH E FACTS ON WHIC H THE COMPLAINT IS 16
BASED; AND 17

(3) BE MADE UNDER OATH BY THE PERSON WHO SUBMI TS THE 18
COMPLAINT. 19

(C) THE BOARD OR THE BOARD’S DESIGNEE SHALL REV IEW EACH 20
COMPLAINT AND SHALL ATTEMPT TO NEGOTIATE A SETTLEMENT OF THE 21
COMPLAINT BETWEEN TH E COMPLAINANT AND THE REGISTRANT OR AN Y OTHER 22
PERSON SUBJECT TO THE REGISTRATION PROVISIONS OF THIS TITLE. 23

(D) IF THE BOARD OR THE BOARD’S DESIGNEE IS UNABLE TO NEGOTIATE A 24
SETTLEMENT OF THE COMPLAINT, THE BOARD MAY: 25

(1) AT THE REQUEST OF EIT HER PARTY, REFER THE COMPLAINT TO 26
THE OFFICE OF THE ATTORNEY GENERAL OR THE OFFICE OF ADMINISTRATIVE 27
HEARINGS FOR BINDING ARBITRATION, IF BOTH PARTIES AGRE E TO BINDING 28
ARBITRATION; 29

(2) INITIATE AN INVESTIGATION; OR 30
42 HOUSE BILL 698

(3) DISMISS THE COMPLAINT. 1

(E) (C) IF, AFTER INVESTIGATION , THE BOARD DETERMINES THAT 2
THERE IS A REASONABL E BASIS TO BELIEVE T HAT THERE ARE GROUND S FOR 3
DISCIPLINARY ACTION UNDER § 7–3A–10 § 7–3A–08 OF THIS SUBTITLE, THE BOARD 4
SHALL PROVIDE THE PE RSON AGAINST WHOM TH E ACTION IS CONTEMPL ATED 5
NOTICE AND AN OPPORTUNITY FOR A HEARING UNDER § 7–3A–12 § 7–3A–10 OF THIS 6
SUBTITLE. 7

(F) (D) (1) IF, AFTER INVESTIGATION, THE BOARD DETERMINES THAT 8
THERE IS NOT A REASONABLE BASIS T O BELIEVE THAT THERE ARE GROUNDS FOR 9
DISCIPLINARY ACTION, THE BOARD SHALL DISMISS THE COMPLAINT. 10

(2) ANY PARTY AGGRIEVED BY THE DISMISSAL MAY TAKE A JUDICIAL 11
APPEAL IN ACCORDANCE WITH THE PROVISIONS OF TITLE 10 OF THE STATE 12
GOVERNMENT ARTICLE. 13

(G) ONCE A COMPLAINT HAS BEEN REFERRED FOR BINDING ARBITRATION, 14
THE REGISTRANT OR ANY OTHER PERSON SUBJECT TO THE REGISTRATION OF THIS 15
TITLE SHALL COMPLY WITH THE TERMS OF THE SETTLEMENT. 16

(H) (E) (1) THE BOARD SHALL ADOPT GUIDELINES THAT ESTABLISH A 17
SCHEDULE FOR THE PROMPT AND TIMELY PROCESSING AND RESOLUTION OF EACH 18
COMPLAINT MADE TO THE BOARD REGARDING A VIOLATION OF THIS SUBTITLE. 19

(2) ON OR BEFORE DECEMBER 31 EACH YEAR, BEGINNING IN 2028, 20
THE BOARD SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 21
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 22

(I) THE NUMBER OF COMPLAI NTS RESOLVED WITHIN THE 23
SCHEDULE ADOPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION; 24

(II) THE NUMBER OF COMPLAI NTS BY THE TYPE OF 25
REGISTRANT OR EXEMPT ION FROM THE REGISTRAT ION REQUIREMENTS OF THIS 26
TITLE; 27

(III) THE NUMBER OF COMPLAI NTS BY PERSONS SUBJE CT TO , 28
BUT NOT IN COMPLIANCE WITH, THE REGISTRATION REQUIREMENTS OF THIS TITLE; 29

(IV) THE NATURE OF COMPLAI NTS, INCLUDING WHETHER 30
COMPLAINTS ARE RELATED TO THE ILLEGAL RECYCLING OF GRAVES; 31

HOUSE BILL 698 43

(V) THE TYPE OF PURCHASE, FOCUS OF DISSATISFACTION, AND 1
TYPE OF RESOLUTION FOR COMPLAINTS; 2

(VI) WHETHER THE METHOD USED TO RE SOLVE THE 3
COMPLAINTS REPORTED UNDER ITEM (I) OF THIS PARAGRAPH WERE RESOLVED 4
THROUGH NEGOTIATION, BINDING ARBITRATION, OR ANOTHER METHOD; AND 5

(VII) ANY DISCIPLINARY OR E NFORCEMENT ACTIONS T AKEN 6
AGAINST A REGISTRANT OR A PERSON SUBJECT TO, BUT NOT IN COMPLIANCE WITH, 7
THE REGISTRATION REQUIREMENTS OF THIS TITLE. 8

(3) THE BOARD SHALL P ROVIDE A COPY OF THE ANNUAL REPORT 9
REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION TO EACH MEMBER OF THE 10
ADVISORY COUNCIL. 11

7–3A–12. 7–3A–10. 12

(A) (1) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 13
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES A FINAL ACTION UNDER THIS 14
SUBTITLE, THE BOARD SHALL PROVIDE T HE PERSON AGAINST WH OM THE ACTION 15
IS CONTEMPLATED NOTI CE OF THE BOARD’S PROPOSED ACTION AN D THE 16
OPPORTUNITY TO REQUEST A HEARING BEFORE THE BOARD. 17

(2) A PERSON SHALL FILE A REQUEST FOR A HEARIN G NOT LATER 18
THAN 30 DAYS AFTER THE DATE THE NOTICE PROVIDED UNDER PARAGRAPH (1) OF 19
THIS SUBSECTION IS MAILED. 20

(B) THE BOARD SHALL PROVIDE N OTICE AND CONDUCT TH E HEARING IN 21
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 22

(C) THE BOARD MA Y ADMINISTER OATHS I N CONNECTION WITH A 23
PROCEEDING UNDER THIS SECTION. 24

(D) THE HEARING NOTICE PROVIDED TO THE PERSON UNDER SUBSECTION 25
(A)(1) OF THIS SECTION SHAL L BE SENT BY CERTIFI ED MAIL TO THE LAST KNOWN 26
ADDRESS OF THE PERSON AT LEAST 10 DAYS BEFORE THE HEARING. 27

(E) IF A HEARING IS NOT REQUESTED WITHIN THE TIME PERIOD SPECIFIED 28
UNDER SUBSECTION (A)(2) OF THIS SECTION OR I F THE PERSON FAILS T O APPEAR 29
FOR THE HEARING AFTER REQUESTING A HEARING, THE PROPOSED ACTION OF THE 30
BOARD SHALL BE AFFIRMED. 31

(F) THE PERSON MAY BE REPRESENTED AT THE HEARING BY COUNSEL. 32
44 HOUSE BILL 698

(G) (1) THE BOARD MAY ISSUE SUBPO ENAS IN CONNECTION W ITH A 1
PROCEEDING UNDER THIS SECTION. 2

(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA ISSUED UNDER 3
THIS SUBSECTION, ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 4
COMPLIANCE WITH THE SUBPOENA. 5

(H) IF, AFTER A HEARING , THE PROPOSED ACTION BY THE BOARD IS 6
UPHELD, THE APPELLANT SHALL PAY THE HEARING COST S, AS SPECIFIED BY THE 7
OFFICE IN ITS REGULATIONS BOARD IN REGULATION. 8

SUBTITLE 3B. PERMITS AND STATEMENT FILINGS. 9

7–3B–01. 10

(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION , A REGISTERED 11
CREMATORY OPERATOR O R REGISTERED REDUCTI ON OPERATOR MAY ENGA GE IN 12
THE OPERATION OF A CREMATORY OR REDUCTION FACILITY AS A SOLE PROPRIETOR 13
OR THROUGH: 14

(1) A CORPORATION AS AN OFFICER, A BOARD, AN EMPLOYEE, OR AN 15
AGENT OF THE CORPORATION; 16

(2) A LIMITED LIABILITY COMPANY AS A MEMBER, AN EMPLOYEE, OR 17
AN AGENT OF THE LIMITED LIABILITY COMPANY; OR 18

(3) A PARTNERSHIP AS A PARTNER, AN EMPLOYEE, OR AN AGENT OF 19
THE PARTNERSHIP. 20

(B) SUBJECT TO THE PROVISIONS OF THIS TITLE, A CORPORATION, LIMITED 21
LIABILITY COMPANY , OR PARTNERSHIP MAY E NGAGE IN THE OPERATI ON OF A 22
CREMATORY OR REDUCTI ON FACILITY THROUGH A REGISTERED CREMATO RY 23
OPERATOR OR REGISTERED REDUCTION OPERATOR. 24

(C) (1) A REGISTERED CREMATORY OPERATOR WHO ENGAGES IN THE 25
OPERATION OF A CREMA TORY THROUGH A CORPO RATION, LIMITED LIABILITY 26
COMPANY, OR PARTNERSHIP UNDER THIS TITLE IS SUBJEC T TO ALL OF THE 27
PROVISIONS OF THIS T ITLE THAT RELATE TO ENGAGING IN THE OPERATION OF A 28
CREMATORY. 29

(2) A REGISTERED REDUCTION OPERATOR WHO ENGAGES IN THE 30
OPERATION OF A REDUC TION FACILITY THROUG H A CORPORATION , LIMITED 31
HOUSE BILL 698 45

LIABILITY COMPANY, OR PARTNERSHIP UNDER THIS TITLE IS SUBJEC T TO ALL OF 1
THE PROVISIONS OF THIS TITLE THAT RELATE TO ENGAGING IN THE OPERATION OF 2
A REDUCTION FACILITY. 3

(D) (1) A CORPORATION, LIMITED LIABILITY CO MPANY, OR 4
PARTNERSHIP THAT ENGAGES IN THE OPERATION OF A CREMATORY OR REDUCTION 5
FACILITY UNDER THIS TITLE IS NOT , BY ITS COMPLIANCE WI TH THIS TITLE , 6
RELIEVED OF ANY RESPON SIBILITY THAT THE CO RPORATION, LIMITED LIABILITY 7
COMPANY, OR PARTNERSHIP MAY H AVE FOR AN ACT OR AN OMISSION BY ITS 8
OFFICER, BOARD, MEMBER, PARTNER, EMPLOYEE, OR AGENT. 9

(2) AN INDIVIDUAL WHO ENG AGES IN THE OPERATIO N OF A 10
CREMATORY OR REDUCTION FACILITY T HROUGH A CORPORATION , LIMITED 11
LIABILITY COMPANY, OR PARTNERSHIP IS NO T, BY REASON OF THE IND IVIDUAL’S 12
EMPLOYMENT OR OTHER RELATIONSHIP WITH TH E CORPORATION , LIMITED 13
LIABILITY COMPANY , OR PARTNERSHIP , RELIEVED OF ANY INDI VIDUAL 14
RESPONSIBILITY THAT THE INDIVIDUAL MAY HAVE REGARDING THAT PRACTICE. 15

7–3B–02. 16

A CORPORATION, LIMITED LIABILITY CO MPANY, OR PARTNERSHIP SHALL 17
OBTAIN A PERMIT ISSU ED BY THE BOARD BEFORE THE CORP ORATION, LIMITED 18
LIABILITY COMPANY , OR PARTNERSHIP MAY E NGAGE IN THE O PERATION OF A 19
CREMATORY OR REDUCTION FACILITY IN THE STATE. 20

7–3B–03. 21

(A) TO QUALIFY FOR A PERM IT, A CORPORATION , LIMITED LIABILITY 22
COMPANY, OR PARTNERSHIP SHALL: 23

(1) DESIGNATE A SEPARATE REGISTERED CREMATORY OPERATOR 24
OR REGISTERED REDUCT ION OPERATOR AS THE RESPONSIBLE P ARTY FOR THE 25
OPERATIONS OF EACH AFFILIATED CREMATORY OR REDUCTION FACILITY; 26

(2) PROVIDE THE NAME AND BUSINESS ADDRESS OF EACH 27
AFFILIATED CREMATORY OR REDUCTION FACILITY; 28

(3) PROVIDE A LIST OF THE OFFICERS, BOARDS, MEMBERS, 29
PARTNERS, AGENTS, AND EMPLOYEES OF THE ENTITY APPLYING FOR THE PERMIT; 30
AND 31

(4) COMPLY WITH §§ 7–3A–03(B)(4) AND 7–3A–04 OF THIS TITLE 32
PROVIDE A CERTIFICATE OF STATUS ISSUED BY THE STATE DEPARTMENT OF 33
ASSESSMENTS AND TAXATION THAT: 34
46 HOUSE BILL 698

(I) INDICATES THE ENTITY IS IN GOOD STANDING , OR ITS 1
EQUIVALENT AS DETERMINED BY THE BOARD; AND 2

(II) IS DATED NOT MORE THA N 30 DAYS BEFORE THE DATE ON 3
WHICH THE APPLICATION WAS SUBMITTED. 4

7–3B–04. 5

(B) AN APPLICANT FOR A PERMIT SHALL SUBMIT TO THE BOARD: 6

(1) AN APPLICATION ON THE FORM THAT THE BOARD PROVIDES; AND 7

(2) AN APPLICATION FEE AS SET BY THE BOARD; AND 8

(3) DOCUMENTATION VERIFYING THE NUMBER OF SALES CONTRACTS 9
SUBJECT TO THE SALES CONTRACT FEE ENTERED INTO WITHIN THE BUSI NESS’S 10
LAST 2 FISCAL YEARS. 11

7–3B–05. 7–3B–04. 12

(A) UNLESS A PERMIT IS RE NEWED AS PROVIDED IN THIS SECTION , THE 13
PERMIT EXPIRES ON THE SECOND ANNIVERSARY OF ITS EFFECTIVE DATE. 14

(B) (1) AT LEAST 90 DAYS BEFORE A PERMIT EXPIRES, THE BOARD SHALL 15
MAIL OR ELECTRONICALLY TRANSMIT TO THE PERMIT HOLDER: 16

(I) A RENEWAL APPLICATION FORM; AND 17

(II) A NOTICE THAT STATES: 18

1. THE DATE ON WHICH THE CURRENT PERMIT EXPIRES; 19
AND 20

2. THE AMOUNT OF THE RENEWAL FEE. 21

(2) IF AN ELECTRONIC TRAN SMISSION UNDER PARAG RAPH (1) OF 22
THIS SUBSECTION IS RETURNED TO THE BOARD AS UNDELIVERABL E, THE BOARD 23
SHALL MAIL TO THE PE RMIT HOLDER , AT THE LAST KNOWN AD DRESS OF THE 24
PERMIT HOLDER , THE MATERIALS REQUIR ED UNDER PARAGRAPH (1) OF THIS 25
SUBSECTION WITHIN 10 BUSINESS DAYS AFTER THE DATE THE BOARD RECEIVED 26
THE NOTICE THAT THE ELECTRONIC TRANSMISSION WAS UNDELIVERABLE. 27

HOUSE BILL 698 47

(C) BEFORE A PERMIT EXPIRES, THE PERMIT HOLDER PERIODICALLY MAY 1
RENEW IT FOR AN ADDITIONAL 2–YEAR TERM, IF THE PERMIT HOLDER: 2

(1) IS OTHERWISE ENTITLED TO RECEIVE A PERMIT; 3

(2) MEETS THE QUALIFICATI ONS SET FORTH FOR AN ORIGINAL 4
PERMIT; 5

(3) PAYS THE RENEWAL FEE SET BY THE BOARD; AND 6

(4) SUBMITS TO THE BOARD A: 7

(I) A RENEWAL APPLICATION ON THE FORM THAT THE BOARD 8
PROVIDES; AND 9

(II) ANY OTHER DOCUMENTATION THE BOARD REQUIRES. 10

(D) THE BOARD SHALL RENEW THE PERMIT OF EACH PERMIT HOLDER WHO 11
MEETS THE REQUIREMENTS OF THIS SECTION. 12

7–3B–05. 13

THE BOARD SHALL REINSTATE THE PERMIT OF A CREMATORY OR REDUCTION 14
FACILITY THAT HAS FAILED TO RENEW ITS PERMIT FOR ANY REASON, IF THE PERMIT 15
HOLDER: 16

(1) REQUESTS THAT THE BOARD REINSTATE THE PERMIT; 17

(2) MEETS THE APPLICABLE PERMIT RENEWAL REQUI REMENTS 18
UNDER THIS SUBTITLE; 19

(3) PAYS THE REINSTATEMENT FEE SET BY THE BOARD; AND 20

(4) SUBMITS TO THE BOARD AN AFFIDAVIT ST ATING THAT THE 21
PERMIT HOLDER DID NO T ENGAGE IN THE OPER ATION OF A CREMATORY OR 22
REDUCTION FACILITY IN THE STATE WHILE ITS PERMIT WAS EXPIRED. 23

7–3B–06. 24

EACH PERMIT HOLDER SHALL DISPLAY THE PERMIT CONSPICUOUSLY AT THE 25
BUSINESS ADDRESS OF THE PERMIT HOLDER. 26

7–3B–07. 27

48 HOUSE BILL 698

(A) SUBJECT TO THE HEARIN G PROVISIONS OF § 7–3B–09 OF THIS 1
SUBTITLE, THE BOARD MAY DENY A PERM IT TO AN APPLICANT , REPRIMAND A 2
PERSON SUBJECT TO TH E PERMIT PROVISIONS OF THIS TITLE , OR SUSPEND OR 3
REVOKE A PERMIT IF A N APPLICANT , A PERMIT HOLDER , OR A N AGENT , AN 4
EMPLOYEE, AN OFFICER , A DIRECTOR , OR A PARTNER OF THE APPLICANT OR 5
PERMIT HOLDER: 6

(1) FRAUDULENTLY OR DECEP TIVELY OBTAINS OR AT TEMPTS TO 7
OBTAIN A PERMIT; 8

(2) FRAUDULENTLY OR DECEPTIVELY USES A PERMIT; 9

(3) UNDER THE LAWS OF THE UNITED STATES OR OF ANY STAT E, IS 10
CONVICTED OF: 11

(I) A FELONY; OR 12

(II) A MISDEMEANOR THAT IS DIRECTLY RELATED TO THE 13
FITNESS AND QUALIFICATIONS OF THE APPLICANT OR PERMIT HOLDER TO OWN OR 14
OPERATE A CREMATORY OR REDUCTION FACILITY; 15

(4) FAILS TO PROVIDE OR MISREPRESENTS ANY IN FORMATION 16
REQUIRED TO BE PROVIDED UNDER THIS TITLE; 17

(5) VIOLATES THIS TITLE; 18

(6) VIOLATES THE CODE OF ETHICS ADOPTED BY THE BOARD; 19

(7) VIOLATES A REGULATION ADOPTED UNDER THIS TITLE; 20

(8) FAILS TO PROVIDE REAS ONABLE AND ADEQUATE SUPERVISION 21
OF THE OPERATION OF THE CREMATORY OR REDUCTION FACILITY; 22

(9) REFUSES TO ALLOW AN INSPECTION REQUIRED BY THIS TITLE; 23

(10) FAILS TO COMPLY WITH AN ORDER OF THE BOARD; 24

(11) FAILS TO COMPLY WITH ANY TERMS OF SETTLEM ENT UNDER A 25
BINDING ARBITRATION AGREEMENT; 26

(12) (11) IS FOUND GUILTY BY A COURT IN THIS STATE OF VIOLATING 27
AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICES PROVISION UNDER TITLE 28
13 OF THE COMMERCIAL LAW ARTICLE; OR 29
HOUSE BILL 698 49

(13) (12) FAILS TO COMPLY WITH § 5–513 OF THE HEALTH – 1
GENERAL ARTICLE. 2

(B) (1) IF A PERSON IS CHARGED WITH A VIOLATION OF THIS TITLE THAT 3
COULD RESULT IN SUSP ENSION OR REVOCATION OF A PERMIT , THE BOARD MAY 4
SEEK AN IMMEDIATE RESTRAINING ORDER IN A CIRCUIT COURT IN THIS STATE TO 5
PROHIBIT THE PERSON FROM ENGAGING IN THE OPER ATION OF ANY CREMATO RY 6
OR REDUCTION FACILITY. 7

(2) THE RESTRAINING ORDER IS IN EFFECT UNTIL: 8

(I) THE COURT LIFTS THE ORDER; OR 9

(II) THE CHARGES ARE ADJUDICATED OR DISMISSED. 10

(C) IF A PERSON IS CHARGE D WITH A VIOLATION O F THIS TITLE THAT 11
COULD RESULT IN SUSP ENSION OR REVOCATION OF A PERMIT , THE BOARD MAY 12
PETITION A COURT TO: 13

(1) APPOINT A RECEIVER OR TRUSTEE TO TAKE CHAR GE OF THE 14
ASSETS AND OPERATE T HE BUSINESS OF THE P ERSON IN THE EVENT T HAT THE 15
PERMIT IS SUSPENDED OR REVOKED; AND 16

(2) TAKE ANY ACTIONS AS A RE APPROPRIATE TO PR OTECT THE 17
PUBLIC INTEREST. 18

(D) (C) INSTEAD OF OR IN ADDI TION TO REPRIMANDING A PERSON, OR 19
SUSPENDING OR REVOKING A PERMIT, THE BOARD MAY IMPOSE A CIVIL PENALTY: 20

(1) NOT TO EXCEED $5,000 $10,000 FOR EACH VIOLATION O F THIS 21
TITLE OR AN ORDER OF THE BOARD UNDER THIS TITLE; AND 22

(2) NOT TO EXCEED $500 $1,000 FOR EACH DAY A VIOLA TION 23
CONTINUES PAST THE TIME SET FOR ITS CORRECTION. 24

(E) (D) TO DETERMINE THE AMOU NT OF THE PENALTY IM POSED UNDER 25
THIS SECTION, THE BOARD SHALL CONSIDER: 26

(1) THE SERIOUSNESS OF THE VIOLATION; 27

(2) THE HARM CAUSED BY THE VIOLATION; 28

50 HOUSE BILL 698

(3) THE GOOD FAITH EFFORTS OF THE PERSON; AND 1

(4) ANY HISTORY OF PREVIOUS VIOLATIONS BY THE PERSON. 2

(F) (E) ANY CIVIL PENALTIES C OLLECTED UNDER THIS SECTION SHALL 3
BE PAID INTO THE GENERAL FUND OF THE STATE. 4

(G) (F) THE BOARD SHALL CONSIDER THE FOLLOWING FACTS IN THE 5
GRANTING, DENIAL, RENEWAL, SUSPENSION, OR REVOCATION OF A PERMIT OR THE 6
REPRIMAND OF A PERMIT HOLDER WHEN AN APPLICANT OR A PERMIT HOLDER, OR 7
AN AGENT , AN EMPLOYEE , AN OFFICER , OR A PARTNER OF AN A PPLICANT OR A 8
PERMIT HOLDER , IS CONVICTED OF A FE LONY OR MISDEMEANOR DESCRIBED IN 9
SUBSECTION (A)(3) OF THIS SECTION: 10

(1) THE NATURE OF THE CRIME; 11

(2) THE RELATIONSHIP OF THE CRIME TO THE ACTIVIT IES 12
AUTHORIZED BY THIS TITLE; 13

(3) THE LENGTH OF TIME SINCE THE CONVICTION; AND 14

(4) THE BEHAVIOR AND ACTI VITIES OF THE APPLIC ANT OR PERMIT 15
HOLDER, OR ANY AGENT, EMPLOYEE, OFFICER, OR PARTNER OF AN APPLICANT OR 16
A PERMIT HOLDER, BEFORE AND AFTER THE CONVICTION. 17

7–3B–08. 18

(A) SUBJECT TO THE PROVIS IONS OF THIS SECTION , THE BOARD OR THE 19
BOARD’S DESIGNEE SHALL COM MENCE PROCEEDINGS ON A COMPLAINT 20
REGARDING A VIOLATION OF THIS SUBTITLE MADE BY ANY PERSON TO THE BOARD. 21

(B) A COMPLAINT SHALL: 22

(1) BE IN WRITING; AND 23

(2) STATE SPECIFICALLY TH E FACTS ON WHICH THE COMPLAINT IS 24
BASED; AND 25

(3) BE MADE UNDER OATH BY THE PERSON WHO SUBMI TS THE 26
COMPLAINT. 27

(C) THE BOARD OR THE BOARD’S DESIGNEE SHALL REV IEW EACH 28
COMPLAINT AND SHALL ATTEMPT TO NEGOTIATE A SETTLEMENT OF THE 29
HOUSE BILL 698 51

COMPLAINT BETWEEN TH E COMPLAINANT AND TH E PERMIT HOLDER , OR ANY 1
OTHER PERSON SUBJECT TO THE PERMIT PROVISIONS OF THIS TITLE. 2

(D) IF THE BOARD OR THE BOARD’S DESIGNEE IS UNABLE TO NEGOTIATE A 3
SETTLEMENT OF THE COMPLAINT, THE BOARD MAY: 4

(1) AT THE REQUEST OF EIT HER PARTY, REFER THE COMPLAINT TO 5
THE OFFICE OF THE ATTORNEY GENERAL OR THE OFFICE OF ADMINISTRATIVE 6
HEARINGS FOR BINDING ARBITRATION, IF BOTH PARTIES AGRE E TO BINDING 7
ARBITRATION; 8

(2) INITIATE AN INVESTIGATION; OR 9

(3) DISMISS THE COMPLAINT. 10

(E) (C) IF, AFTER INVESTIGATION , THE BOARD DETERMINES THAT 11
THERE IS A REASONABL E BASIS TO BELIEVE T HAT THERE ARE GROUND S FOR 12
DISCIPLINARY ACTION UNDER § 7–3B–07 OF THIS SUBTITLE , THE BOARD SHALL 13
PROVIDE THE PERSON AGAINST WHOM THE ACTION IS CONTEMPLATED NOTICE AND 14
AN OPPORTUNITY FOR A HEARING UNDER § 7–3B–09 OF THIS SUBTITLE. 15

(F) (D) (1) IF, AFTER INVESTIGATION, THE BOARD DETERMINES THAT 16
THERE IS NOT A REASO NABLE BASIS TO BELIE VE THAT THERE ARE GR OUNDS FOR 17
DISCIPLINARY ACTION, THE BOARD SHALL DISMISS THE COMPLAINT. 18

(2) ANY PARTY AGGRIEVED BY THE DISMISSAL MAY TAKE A JUDICIAL 19
APPEAL IN ACCORDANCE WITH THE PROVISIONS OF TITLE 10 OF THE STATE 20
GOVERNMENT ARTICLE. 21

(G) ONCE A COMPLAINT HAS BEEN REFERRED FOR BINDING ARBITRATION, 22
THE REGISTRANT , PERMIT HOLDER , OR ANY OTHER PERSON SUBJECT TO THE 23
REGISTRATION OR PERM IT PROVISIONS OF THI S TITLE SHALL COMPLY WITH THE 24
TERMS OF THE SETTLEMENT. 25

(H) (E) (1) THE BOARD SHALL ADOPT GUIDELINES THAT ESTABLISH A 26
SCHEDULE FOR THE PROMPT AND TIMELY PROCESSING AND RESOLUTION OF EACH 27
COMPLAINT MADE TO THE BOARD REGARDING A VIOLATION OF THIS SUBTITLE. 28

(2) ON OR BEFORE DECEMBER 31 EACH YEAR, BEGINNING IN 2028, 29
THE BOARD SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 30
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 31

(I) THE NUMBER OF COMPLAI NTS RESOLVED WITHIN THE 32
SCHEDULE ADOPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION; 33
52 HOUSE BILL 698

(II) THE NUMBER OF COMP LAINTS BY THE TYPE O F PERMIT 1
HOLDER, OR EXEMPTION FROM THE PERMIT REQUIREMENTS OF THIS TITLE; 2

(III) THE NUMBER OF COMPLAI NTS BY PERSONS SUBJE CT TO , 3
BUT NOT IN COMPLIANCE WITH, THE PERMIT REQUIREMENTS OF THIS TITLE; 4

(IV) THE NATURE OF COMPLAI NTS, INCLUDING WHETHER 5
COMPLAINTS ARE RELATED TO THE ILLEGAL RECYCLING OF GRAVES; 6

(V) THE TYPE OF PURCHASE, FOCUS OF DISSATISFACTION, AND 7
TYPE OF RESOLUTION FOR COMPLAINTS; 8

(VI) WHETHER THE METHOD USED TO RE SOLVE THE 9
COMPLAINTS REPORTED UNDER ITEM (I) OF THIS PARAGRAPH WERE RESOLVED 10
THROUGH NEGOTIATION, BINDING ARBITRATION, OR ANOTHER METHOD; AND 11

(VII) ANY DISCIPLINARY OR E NFORCEMENT ACTIONS T AKEN 12
AGAINST A PERMIT HOL DER, OR A PERSON SUBJECT TO, BUT NOT IN COMPLIANC E 13
WITH, THE PERMIT REQUIREMENTS OF THIS TITLE. 14

(3) THE BOARD SHALL PROVIDE A COPY OF THE ANNUAL R EPORT 15
REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION TO EACH MEMBER OF THE 16
ADVISORY COUNCIL. 17

7–3B–09. 18

(A) (1) EXCEPT AS OTHERWISE P ROVIDED IN § 10–226 OF THE STATE 19
GOVERNMENT ARTICLE, BEFORE THE BOARD TAKES A FINAL A CTION UNDER THIS 20
SUBTITLE, THE BOARD SHALL PROVIDE T HE PERSON AGAINST WH OM THE ACTION 21
IS CONTEMPLATED NOTI CE OF THE BOARD’S PROPOSED ACTION AN D THE 22
OPPORTUNITY TO REQUEST A HEARING BEFORE THE BOARD. 23

(2) A PERSON SHALL FIL E A REQUEST FOR A HE ARING NOT LATER 24
THAN 30 DAYS AFTER THE DATE THE NOTICE PROVIDED UNDER PARAGRAPH (1) OF 25
THIS SUBSECTION IS MAILED. 26

(B) THE BOARD SHALL PROVIDE N OTICE AND CONDUCT TH E HEARING IN 27
ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 28

(C) THE BOARD MAY ADMINISTER OATHS IN CONNECTION WITH A 29
PROCEEDING UNDER THIS SECTION. 30

HOUSE BILL 698 53

(D) THE HEARING NOTICE PROVIDED TO THE PERSON UNDER SUBSECTION 1
(A)(1) OF THIS SECTION SHAL L BE SENT BY CERTIFI ED MAIL TO THE LAST KNOWN 2
ADDRESS OF THE PERSON AT LEAST 10 DAYS BEFORE THE HEARING. 3

(E) IF A HEARING IS NOT REQUESTED WITHIN THE TIME PERIOD SPECIFIED 4
UNDER SUBSECTION (A)(2) OF THIS SECTION OR I F THE PERSON FAILS T O APPEAR 5
FOR THE HEARING AFTER REQUESTING A HEARING, THE PROPOSED ACTION OF THE 6
BOARD SHALL BE AFFIRMED. 7

(F) THE PERSON MAY BE REPRESENTED AT THE HEARING BY COUNSEL. 8

(G) (1) THE BOARD MAY ISSUE SUBPO ENAS IN CONNECTION W ITH A 9
PROCEEDING UNDER THIS SECTION. 10

(2) IF A PERSON FAILS TO COMPLY WITH A SUBPOENA ISSUED UNDER 11
THIS SUBSECTION, ON PETITION OF THE BOARD, A CIRCUIT COURT MAY COMPEL 12
COMPLIANCE WITH THE SUBPOENA. 13

(H) IF, AFTER A HEARING , THE PROPOSED ACTION BY THE BOARD IS 14
UPHELD, THE APPELLANT SHALL PAY THE HEARING COST S, AS SPECIFIED BY THE 15
OFFICE IN ITS REGULATIONS BOARD IN REGULATION. 16

7–405. 17

(a) (1) In this section the following words have the meanings indicated. 18

(2) “Beneficiary” means a person for whose benefit a pre –need contract is 19
purchased and who will receive the merchandise or services offered under the contract. 20

(3) “Buyer” means a person that purchases a pre–need contract. 21

(4) “Guaranteed contract” means a written pre–need contract that: 22

(i) Is signed by the consumer and a licensee of a licensed funeral 23
establishment, A REGISTERED CREMATO RY O PERATOR, OR A REGISTERED 24
REDUCTION OPERATOR; and 25

(ii) Guarantees in whole the price of goods and services and cash 26
advance items specified in the contract. 27

(5) “Guaranteed in part contract” means a written pre–need contract that: 28

(i) Is signed by the consumer and a licensee of a licensed funeral 29
establishment, A REGISTERED CREMATO RY OPERATOR , OR A REGISTERED 30
REDUCTION OPERATOR; and 31
54 HOUSE BILL 698

(ii) Guarantees in part the price of goods and services and cash 1
advance items specified in the contract. 2

(6) “Nonguaranteed contract” means a written pre–need contract: 3

(i) That is signed by the consumer and a licensee of a licensed 4
funeral establishment , A REGISTERED CREMATO RY OPERATOR , OR A REGISTERED 5
REDUCTION OPERATOR; 6

(ii) That does not guarantee t he price of any specific goods and 7
services or cash advance items; and 8

(iii) For which any funds or benefits paid under the contract are only 9
a deposit or partial payment to be applied toward the final cost, determined at the time of 10
death, of the goods, services, or cash advance items. 11

(7) “Seller” means a person who agrees to provide services or merchandise, 12
directly or indirectly, under a pre–need contract. 13

(8) “Trustee” means a person that has responsibility for making pre –need 14
arrangements in a manner that entitles the beneficiary to be eligible for benefits that 15
restrict assets. 16

(b) (1) Only a licensed mortician, a licensed funeral director, A REGISTERED 17
CREMATORY OPERATOR , A REGISTERED REDUCTI ON OPERATOR , or a holder of a 18
surviving spouse license may offer or agree, directly or indirectly, to provide services or 19
merchandise under a pre–need contract. 20

(2) Notwithstanding the provisions of paragraph (1) of this subsection, a 21
licensed mortician or a licensed funeral director who is employed by a funeral 22
establishment may execute pre–need contracts on behalf of the funeral establishment with 23
which the mortician or funeral director is employed. 24

(3) Any funeral establishment on whose behalf pre –need contracts are 25
executed under this subsection must comply with the requirements of this section. 26

(f) (1) A pre–need contract is not subject to the Retail Installment Sales Act. 27

(2) The making of a pre –need contract by a licensed mortician, a licensed 28
funeral director, A REGISTERED CREMATORY OPERATOR, A REGISTERED REDUCTION 29
OPERATOR, or a holder of a surviving spouse license is not the practice of insurance 30
business. 31

HOUSE BILL 698 55

(3) (i) A pre–need contract that is a guaranteed contract, a guaranteed 1
in part contract, or a nongua ranteed contract may be funded by a life insurance policy or 2
an annuity contract if: 3

1. The mortician, funeral director, licensed funeral 4
establishment, REGISTERED CREMATORY OPERATOR, REGISTERED REDUCTION 5
OPERATOR, or surviving spouse is not the owner of or beneficiary under the life insurance 6
policy or annuity contract; 7

2. An irrevocable assignment of benefits to the licensed 8
funeral establishment: 9

A. May be transferred at any time by the owner of the life 10
insurance policy or annuity contract to any other licensed funeral establishment; and 11

B. May not be transferred to the consumer; and 12

3. Any benefits payable under the life insurance policy or 13
annuity contract in excess of the amount necessary to pay the total price, as determined at 14
the time of death of the insured, of the services and merchandise agreed on in the pre–need 15
contract are paid to the beneficiary under the life insurance policy or annuity contract. 16

(ii) A pre–need contract that is funded by a life insurance policy or 17
an annuity contract shall terminate if the assignment of benefits to the mortician, funeral 18
director, REGISTERED CREMATORY OPERATOR, REGISTERED REDUCTION 19
OPERATOR, or surviving spouse is revoked by the owner of the life insurance policy or 20
annuity contract. 21

(iii) 1. The offer, sale, or assignment of a life insurance policy or 22
annuity contract to fund a pre–need contract is not subject to this section. 23

2. A pre–need contract funded by a life insurance policy or an 24
annuity contract is not subject to subsection (d) or (e) of this section. 25

7–409. 26

(a) Except as provided in subsection (b) of this section, all inspections of funeral 27
establishments shall be unannounced and may take place at any time without notice from 28
the Board. 29

(b) An unannounced inspection may include advance notice that an inspector may 30
be in the region of the funeral establishment for the purpose of conducting an inspection if: 31

(1) The advance notice is no more than 14 days prior to the inspection; 32

(2) No specific date or time is provided for the inspection; and 33

56 HOUSE BILL 698

(3) The advance notice is provided solely to ensure that a licensed 1
mortician or funeral director will be on–site for the inspection. 2

(c) (1) This subsection applies to inspections conducted: 3

(i) In response to valid information provided to the Board resulting 4
in a complaint being opened by the Board concerning the preparation or body storage areas 5
of a licensed funeral establishment only if the Board has provided a copy of the complaint 6
to the licensed funeral establishment; or 7

(ii) Of a funeral establishment that the Board has placed on 8
probationary status in accordance with § 7–316(b) of this title. 9

(2) A trained staff member of the Board who is qualified to do inspections 10
may call the supervising mortician of a licensed funeral establishment, as designated under 11
§ 7–310(e) of this title, and request immediate access to the preparation and body storage 12
areas of the funeral establishment. 13

(3) If a request is made under paragraph (2) of this subsect ion, the 14
supervising mortician immediately shall provide the staff member of the Board with the 15
location of the key or access code to the preparation or body storage areas of the funeral 16
establishment. 17

(4) An employee of a licensed funeral establishment is not required to 18
accompany a staff member of the Board while the staff member conducts an inspection of 19
a preparation or body storage area in accordance with this subsection. 20

(d) An unannounced inspection of a licensed funeral establishment shall be 21
conducted during the hours that the business of mortuary science is being conducted at the 22
licensed funeral establishment. 23

(e) Within 24 hours after the completion of an unannounced inspection of a 24
licensed funeral establishment, the Board shall provide the results of the inspection to: 25

(1) The holder of the funeral establishment license; or 26

(2) The supervising mortician for the licensed funeral establishment, as 27
designated under § 7–310(e) of this title. 28

(F) THE BOARD SHALL EMPLOY AT LEAST TWO INSPECTORS TO PERFORM 29
INSPECTIONS UNDER THIS SUBTITLE. 30

7–409.1. 31

ON RECEIPT OF A WRITT EN COMPLAINT , OR AT THE DISCRETION OF THE 32
BOARD, THE BOARD OR THE BOARD’S DESIGNEE MAY CONDUCT AN INVESTIGATION 33
HOUSE BILL 698 57

AND AN INSPECTION OF THE RECORDS AND SITE OF A REGISTERED CREMATORY 1
OPERATOR OR REGISTER ED REDUCTION OPERATO R OR ANY OTHER PERSO N 2
SUBJECT TO THE REGISTRATION OR PERMIT PROVISIONS OF THIS TITLE. 3

7–412. 4

(A) THIS SECTION DOES NOT APPLY TO: 5

(1) A CIVIL ACTION BROUGHT BY A PARTY TO THE PR OCEEDINGS OF 6
THE BOARD WHO CLAIMS TO BE AGGRIEVED BY THE DECISION OF THE BOARD; OR 7

(2) ANY RECORD OR DOCUMENT THAT IS CONSIDERED BY THE BOARD 8
AND THAT OTHERWISE W OULD BE SUBJECT TO D ISCOVERY AND INTRODU CTION 9
INTO EVIDENCE IN A CIVIL TRIAL. 10

(B) (1) EXCEPT AS PROVIDED IN SUBSECTION (A) OF THIS SECTION, THE 11
PROCEEDINGS, RECORDS, AND FILES OF THE BOARD ARE NOT DISCOVERABLE AND 12
ARE NOT ADMISSIBLE IN EVIDENCE IN ANY CIVIL ACTION. 13

(2) THE PROCEEDINGS , RECORDS, AND FILES OF THE BOARD ARE 14
CONFIDENTIAL AND ARE NOT DISCOVERABLE AND ARE NOT ADMISSIBLE I N 15
EVIDENCE IN ANY CIVI L ACTION ARISING OUT OF MATTERS THAT ARE BEING 16
REVIEWED AND EVALUATED BY THE BOARD IF REQUESTED BY THE FOLLOWING: 17

(I) THE DEPARTMENT TO ENSURE COMPLIANCE WITH THE 18
PROVISIONS OF § 19–319 OF THE HEALTH – GENERAL ARTICLE; 19

(II) A HEALTH MAINTENANCE O RGANIZATION TO ENSUR E 20
COMPLIANCE WITH THE PROVISIONS OF TITLE 19, SUBTITLE 7 OF THE HEALTH – 21
GENERAL ARTICLE AND APPLICABLE REGULATIONS; 22

(III) A HEALTH MAINTENANCE O RGANIZATION TO ENSUR E 23
COMPLIANCE WITH THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA) 24
CREDENTIALING REQUIREMENTS; OR 25

(IV) AN ACCREDITING ORGANIZATION TO ENSURE COMPLIANCE 26
WITH ACCREDITATION REQUIREMENTS OR THE PROCEDURES AND POLICIES OF THE 27
ACCREDITING ORGANIZATION. 28

(3) IF THE PROCEEDINGS, RECORDS, AND FILES OF THE BOARD ARE 29
REQUESTED BY ANY PERSON FROM ANY OF THE ENTITIES IN PARAGRAPH (2) OF THIS 30
SUBSECTION: 31

58 HOUSE BILL 698

(I) THE PERSON SHALL GIVE THE BOARD NOTICE BY 1
CERTIFIED MAIL OF TH E NATURE OF THE REQU EST AND THE BOARD SHALL BE 2
GRANTED A PROTECTIVE ORDER PREVENTING THE RELEASE OF ITS PROCEEDINGS, 3
RECORDS, AND FILES; AND 4

(II) THE ENTITIES LISTED I N PARAGRAPH (2) OF THIS 5
SUBSECTION MAY NOT R ELEASE ANY OF THE PR OCEEDINGS, RECORDS, AND FILES 6
OF THE BOARD. 7

(C) (1) A PERSON SHALL HAVE TH E IMM UNITY FROM LIABILITY 8
DESCRIBED UNDER § 5–637 OF THE COURTS ARTICLE FOR ANY ACTIO N AS A 9
MEMBER OF THE BOARD OR FOR GIVING I NFORMATION TO, PARTICIPATING IN, OR 10
CONTRIBUTING TO THE FUNCTION OF THE BOARD. 11

(2) A CONTRIBUTION TO THE FUNCTION OF THE BOARD INCLUDES 12
ANY STATEMENT BY ANY PERSON, REGARDLESS OF WHETHE R IT IS A DIRECT 13
COMMUNICATION WITH THE BOARD, THAT IS MADE WITHIN THE CONTEXT OF THE 14
PERSON’S EMPLOYMENT OR IS MADE TO A PERSON WITH A PROFESSIONAL INTEREST 15
IN THE FUNCTIONS OF A MEDICAL REVIEW COMMITTEE AND IS INTENDED T O LEAD 16
TO REDRESS OF A MATTER WITHIN THE SCOPE OF THE BOARD’S FUNCTIONS. 17

7–501. 18

(A) Except as otherwise provided in this title, a person may not practice, attempt 19
to practice, offer to practice, or assist in the practice of mortuary science in this State unless 20
licensed by the Board. 21

(B) EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, AN INDIVIDUAL MAY 22
NOT ENGAGE IN THE OP ERATION OF A CREMATO RY, ATTEMPT TO ENGAGE IN THE 23
OPERATION OF A CREMA TORY, OR PROVIDE OR OFFER TO PROVIDE CREMATION 24
SERVICES UNLESS THE INDIVIDUAL IS AUTHORIZED AS A REGISTRANT. 25

(C) EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, AN INDIVIDUAL MAY 26
NOT ENGAGE IN THE OPERATION OF A REDUCTION FACILITY, ATTEMPT TO ENGAGE 27
IN THE OPERATION OF A REDUCTION FACILITY, OR PROVIDE OR OFFER TO PROVIDE 28
NATURAL ORGANIC REDU CTION UNLESS THE IND IVIDUAL IS A REGISTE RED 29
REDUCTION OPERATOR. 30

7–501.1. 31

EXCEPT FOR A REGISTER ED CREMATORY OPERATO R, OR A REGISTERED 32
REDUCTION OPERATOR WHO OPERATES A BUSINE SS AS A SOLE PROPRIE TOR OR A 33
REGISTRANT EMPLOYED BY A SOLE P ROPRIETOR, A PERSON MAY NOT ENG AGE IN 34
THE OPERATION OF A CREMATORY OR REDUCTION FACILITY UNLESS: 35
HOUSE BILL 698 59

(1) THE BUSINESS IS A CORPORATION, LIMITED LIABILITY COMPANY, 1
OR PARTNERSHIP; AND 2

(2) THE CORPORATION , LIMITED LIABILITY CO MPANY, OR 3
PARTNERSHIP HOLDS A PERMIT ISSUED UNDER THIS TITLE. 4

7–502. 5

(A) Unless authorized to practice mortuary science under this title, a person may 6
not represent to the public by title, by description of services, methods, or procedures, or 7
otherwise, that the person is authorized to practice mortuary science in this State. 8

(B) UNLESS A PERSON IS AU THORIZED AS A REGIST RANT, A PERSON MAY 9
NOT REPRESENT TO THE PUBLIC, BY USE OF A TITLE , INCLUDING CREMATORY 10
OPERATOR, REGISTERED CREMATORY OPERATOR, REGISTERED REDU CTION 11
OPERATOR, OR REGISTERED SELLER REDUCTION OPERATOR, BY DESCRIPTION OF 12
SERVICES, METHODS, OR PROCEDURES , OR OTHERWISE , THAT THE PERSON IS 13
AUTHORIZED TO ENGAGE IN THE OPERATION OF A CREMATORY OR REDUC TION 14
FACILITY. 15

7–701. 16

This title may be cited as t he “Maryland Morticians [and], Funeral Directors, AND 17
CREMATORIES Act”. 18

7–510. 19

(A) (1) IF A PERSON REGULATED BY THE BOARD IS CHARGED WITH A 20
VIOLATION OF THIS TITLE FOR WHICH A LICE NSE, REGISTRATION, OR PERMIT MAY 21
BE SUSPENDED OR REVO KED, THE BOARD MAY SEEK AN INJUNCTION O R 22
RESTRAINING ORDER IN A COURT OF COMPETENT JURISDICTION IN THE STATE TO 23
PROHIBIT THE PERSON FROM: 24

(I) PRACTICING MORTUARY SCIENCE OR FUNERAL DIRECTION; 25
OR 26

(II) OPERATING A CREMATORY OR REDUCTION FACILITY. 27

(2) AN INJUNCTION OR RESTRAINING ORDER ISSUED UNDER THIS 28
SUBSECTION SHALL REMAIN EFFECTIVE UNTIL: 29

(I) THE COURT LIFTS THE I NJUNCTION OR RESTRAI NING 30
ORDER; OR 31
60 HOUSE BILL 698

(II) THE CHARGES ARE FULLY ADJUDICATED OR DISMISSED. 1

(B) IF THE HOLDER OF AN E STABLISHMENT LICENSE OR PERMIT THAT IS 2
REGULATED BY THE BOARD IS CHARGED WITH A VIOLATION OF THIS TITLE FOR 3
WHICH THE LICENSE OR PERMIT MAY BE SUSPENDED OR REVOKED, THE BOARD MAY 4
PETITION A COURT OF COMPETENT JURISDICTION TO: 5

(1) APPOINT A RECEIVER OR TRUSTEE TO TAKE CHAR GE OF THE 6
ASSETS AND OPERATE T HE BUSINESS OF THE E STABLISHMENT LICENSE E OR 7
PERMIT HOLDER IN THE EVENT THAT THE LICEN SE OR PERMIT IS SUSP ENDED OR 8
REVOKED; AND 9

(2) TAKE ANY OTHER ACTION AUTHORIZED BY LAW TO PROTECT THE 10
PUBLIC INTEREST. 11

SECTION 2. AND BE IT FURTHER ENACTED, That: 12

(a) Except as provided in this section, on October July 1, 2026: 13

(1) the responsibility for regulating crematories and reduction facilities 14
currently in the Office of Cemetery Oversight shall be transferred to the State Board of 15
Morticians, Funeral Directors, and Crematories Morticians and Funeral Directors; and 16

(2) all the functions, powers, duties, books, and records (including 17
electronic records) of the Office of Cemetery Oversight related to the regulation of 18
crematories and reduction facilities shall be transferred to the State Board of Morticians, 19
Funeral Directors, and Crematories Morticians and Funeral Directors. 20

(b) The Office of Cemetery Oversight shall retain jurisdiction over: 21

(1) complaints regarding crematories and reduction facilities filed with the 22
Office before the effective date of this Act until the complaint is closed or otherwise resolved; 23
and 24

(2) persons who are the subject of the complaints described in item (1) of 25
this subsection to the extent necessary to close or otherwise resolve the complaint. 26

SECTION 3. AND BE IT FURTHER ENACTED, That: 27

(a) A person registered as a crematory operator or reduction operator or who 28
holds a permit to engage in the operation of a crematory or reduction facility issued by the 29
Office of Cemetery Oversight is considered for all purposes to be registered or a permit 30
holder for the duration of the term for which the registration or permit was issued and may 31
renew the authorization in accordance with the appr opriate renewal provisions provided 32
under this Act. 33
HOUSE BILL 698 61

(b) A person that was originally registered or issued a permit under a provision 1
of law that has been repealed by this Act as obsolete or inconsistent continues to meet the 2
requirements of the registration to the same extent as though that provision had not been 3
repealed. 4

SECTION 4. AND BE IT FURTHER ENACTED, That, beginning in fiscal year 2028, 5
a Position Identification Number (PIN) shall be created in the State Board of Morticians 6
and Funeral Directors for a full–time inspector position. 7

SECTION 5. AND BE IT FURTHER ENACTED, That: 8

(a) The State Board of Morticians and Funeral Directors shall convene a 9
stakeholder workgroup that includes representatives from the Maryland State Funeral 10
Directors Association and the Maryland Cemetery and Cremation Association to review the 11
statutes in and the regulations adopted in accordance with Title 7 of the Health 12
Occupations Article, as enacted by Section 1 of this Act. 13

(b) On or before December 31, 2 026, the State Board of Morticians and Funeral 14
Directors shall report to the Senate Finance Committee and the House Health Committee, 15
in accordance with § 2 –1257 of the State Government Article, on any findings and 16
recommended changes that result from the stakeholder workgroup. 17

SECTION 4. 6. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October July 1, 2026. 19

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.