Senate Labor, Commerce & Industry Committee Amendment
H 4116 - Session 125 (2023-2024)
Funeral contracts

The Committee on Labor, Commerce and Industry proposes the following amendment (LC-4116.WAB0020S):

Amend the bill, as and if amended, SECTION 1, by striking Section 40-19-295 and inserting:

 Section 40-19-295. No licensee whose license has been suspended or revoked, or who has applied for a license but whose application has been denied, may participate in any manner in a business licensed by the board until that person has obtained a license or the person's license has been restored. No business licensed by the board may permit or allow a person whose license has been suspended or revoked, or any person who has applied for a license but whose application has been denied, to participate in any manner in the business licensed by the board.

Amend the bill further, SECTION 2, by striking Section 32-7-100(A)(1) and inserting:

  (1) misdemeanor, if the value of money obtained or sought to be obtained is two ten thousand dollars or less and, upon conviction or plea, the person mustmay be fined not less than one up to twenty-five thousand dollars, or imprisoned for not more than thirty days six months, or both;

Amend the bill further, SECTION 2, by striking Section 32-7-100(A)(43) and inserting:

  (4) (4) in addition, a person convicted of a misdemeanor or a felony pursuant to this section may be prohibited from entering into further preneed funeral contracts, if the department, in its discretion, finds that the offense is sufficiently grievous. A person convicted of a felony pursuant to this chapter is subject to the following additional penalties when the value of the money obtained or sought to be obtained is:
  (a) twenty five thousand dollars or less, upon conviction or plea, the person is subject to a two year suspension from conducting preneed funeral contract sales, and restitution as may be ordered by the court;
  (b) greater than twenty five thousand dollars, but less than one hundred thousand dollars, upon conviction or plea, the person is subject to a five year suspension from conducting preneed funeral contract sales, and restitution as may be ordered the court;
  (c) greater than one hundred thousand dollars, upon conviction or plea, the person is subject to a ten year suspension from conducting preneed funeral contract sales, and restitution as may be ordered by the court.

Amend the bill further, SECTION 5, by striking Section 32-8-360(B) and inserting:

 (B) A person who violates a provision of this chapter is subject to a civil fine not to exceed five of up to twenty-five thousand dollars. A licensed funeral director or embalmer who violates a provision of this chapter must be reported to the State Board of Funeral Service for immediate investigation and disciplinary proceedings.

Amend the bill further, SECTION 6, by striking Section 32-8-385(B)(3), (4), and (5) and (D) and inserting:

  (3) have not been convicted of or pled guilty to a crime that directly relates to the duties, responsibilities, or fitness of the occupation or profession; and
  (4) pay a fee as established in regulation not to exceed fifty dollars.

 (D) Registered trained individuals are subject to applicable provisions of Sections 40-1-110, Chapter 19 of Title 40, Chapter 8 of Title 32, and board regulations.

Amend the bill further, by deleting SECTIONS 7 and 8.

Amend the bill further, SECTION 10, by striking Section 40-19-30 and inserting:

Section 40-19-30 (A) It is unlawful for a person to engage in the practice of funeral service unless the person is licensed in accordance with this chapter. A person who engages or participates in the active management of a funeral establishment and who performs any of the tasks defined in Section 40-19-20(19) is considered to be in the practice of funeral service.
 (B) No permit to operate a funeral home may be issued to a corporation, partnership, or individual when the name of either an unlicensed person or a person whose license has been revoked or is suspended appears in the name of the corporation, partnership, or individually owned business. This prohibition does not apply to established funeral homes existing prior to July 1, 1969.

Amend the bill further, SECTION 11, by striking Section 40-19-70 and inserting:

 Section 40-19-70. In addition to the powers and duties provided for in this chapter, the board also has those powers and duties set forth in Section 40-1-70. A member of the board, or its committees or employees, may not be liable for acts performed in the course of their official duties, except when gross negligence is shown and proven in a court of competent jurisdiction in this State.

Amend the bill further, SECTION 12, by striking Section 40-19-80 and inserting:

 Section 40-19-80. The board shall employ an inspector at least two inspectors who must be a licensed embalmer embalmers and funeral directorfuneral directors with not no fewer than five consecutive years' experience as a licensee under this chapter but who have not been disciplined during the time of their past or current licensure under this chapter.

Amend the bill further, SECTION 15, by striking Section 40-19-200 and inserting:

 Section 40-19-200. A person who practices or offers to practice funeral service or who aids and abets any unlicensed person or unlicensed entity to engage in the practice of funeral service in this State in violation of this chapter or who knowingly submits false information for the purpose of obtaining a license is guilty of a misdemeanor and, upon conviction, mustmay be fined not less than five hundred dollars or more than twenty-five hundred up to twenty-five thousand dollars or imprisoned for not more than six months, or both.

Amend the bill further, SECTION 16, by striking Section 40-19-230(2) and inserting:

  (2) has not been convicted of a violent crime or found guilty of a felony or crime of moral turpitudeor pled guilty to a crime that directly relates to the duties, responsibilities, or fitness of the occupation or profession;

Amend the bill further, SECTION 16, by striking Section 40-19-230(5) and inserting:

  (5) has completed a minimum of twenty-four months of service pursuant to Section 40-19-240 as an apprentice under the direct supervision of a licensed embalmer actively engaged in the practice of embalming in this State;

Amend the bill further, SECTION 16, by striking Section 40-19-230(B)(2) and inserting:

  (2) has not been convicted of a violent crime or found guilty of a felony or crime of moral turpitudeor pled guilty to a crime that directly relates to the duties, responsibilities, or fitness of the occupation or profession;

Amend the bill further, SECTION 16, by striking Section 40-19-230(B)(4) and inserting:

  (4) has completed a minimum of twenty-four months of service pursuant to Section 40-19-240 as an apprenticefuneral director under the direct supervision of a licensed funeral director actively engaged in the practice of funeral directing in this State;

Amend the bill further, by deleting SECTION 17.

Amend the bill further, SECTION 18, by striking Section 40-19-250 and inserting:

 Section 40-19-250. The board shall develop in regulation a continuing education program and each licensee must attend a minimum of three four credit hours annually, of which one credit hour must be an ethics in funeral service course. This continuing education program must be offered, at a minimum, four times a year at locations easily accessible to participants. and Three of the four required hours must be available through correspondence courses, with at least two of the four hours requiring the physical attendance of the licensee. This continuing education requirement does not apply to a person who is not the manager of record of a funeral home, funeral establishment, or mortuary if the person has been licensed for thirty or more years or and is sixty years old or older.

Amend the bill further, SECTION 19, by striking Section 40-19-265(A)(4) and inserting:

  (4) designates a manager who meets the requirements of Section 40-19-20(16) and is current and in good standing with the board and lives within a radius of twenty-fivefifty miles of the establishment;

Amend the bill further, SECTION 19, by striking Section 40-19-265(B)(4) and inserting:

  (4) designates a manager who meets the requirements of Section 40-19-20(16) and is current and in good standing with the board and lives within a radius of twenty-five fifty miles of the establishment;

Amend the bill further, SECTION 19, by striking Section 40-19-265(D)(4) and inserting:

  (4) designates a manager who meets the requirements of Section 40-19-20(16) and is current and in good standing with the board and lives within a radius of twenty-fivefifty miles of the establishment;

Amend the bill further, by striking SECTION 20 and inserting:

SECTION X. Section 40-19-20 of the S.C. Code is amended to read:

 (6) "Cremation" means the reduction of the dead body by intense heat to residuethe technical process using either alkaline hydrolysis or heat and flame that reduces human remains to components of either liquid and bone, or bone fragments, and which may include the pulverization of the bone fragments.
 (7) "Crematory" means an establishment in which the dead body is reduced to residue by intense heatcremation occurs.

Amend the bill further, SECTION 21, by striking Section 40-19-290(E) and inserting:

 (E) Other than payments received for at-need funeral merchandise and funeral services, all payments received by any establishment licensed under this chapter for funeral merchandise being purchased must be placed in a trust account in a federally insured institution until the merchandise is delivered for its intended funeral services use as provided in the contract and in accordance with the sales agreement or in the physical possession of the purchaser. Upon its own initiative or upon receipt of a complaint, the South Carolina Department of Consumer Affairs shall undertake investigations; review the books, records, and accounts of any establishment licensed under this chapter; subpoena witnesses; require audits and reports; and conduct hearings to determine if payments are being received in violation of the provisions of Chapter 7, Title 32.

Amend the bill further, by striking SECTION 23 and inserting:

SECTION 23. This act takes effect July 1, 2024.