PRIOR PRINTER'S NO. 1221 PRINTER'S NO. 1344
No. 1040 Session of 1977
INTRODUCED BY ROSS, ZEMPRELLI, HANKINS, ROMANELLI, STOUT, HAGER,
MOORE AND CORMAN, JULY 25, 1977
SENATOR SMITH, STATE GOVERNMENT, AS AMENDED, OCTOBER 4, 1977
AN ACT
1 Amending the act of January 14, 1952 (P.L.1898, No.522),
2 entitled, as amended, "An act to provide for the better
3 protection of life and health of the citizens of this
4 Commonwealth by requiring and regulating the examination,
5 licensure and registration of persons and registration of
6 corporations engaging in the care, preparation and
7 disposition of the bodies of deceased persons, and providing
8 penalties; providing for a State Board of Funeral Directors
9 in the Department of State, and repealing other laws,"
10 providing for changes in the conduction of business, changing
11 the number of members on the State Board of Funeral Directors
12 and making other changes.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 8, act of January 14, 1952 (P.L.1898,
16 No.522), known as the "Funeral Director Law," amended March 3,
17 1976 (P.L.32, No.16), is amended to read:
18 Section 8. Conduct of Business.--(a) Individuals and
19 Partnerships. Except as provided for in subsection [(d)] (e)
20 hereof, only one license shall be granted to or held by an
21 individual, but two or more licensed funeral directors may
22 operate a joint or partnership business at one place only [if
23 the business is conducted under the names of all such licensed
1 funeral directors. No funeral director granted a license under
2 this act shall conduct practice under any other name than the
3 name appearing on his license.] No funeral practice, whether
4 conducted by an individual or a partnership, may be conducted
5 under any other name than the name or last name of the
6 individual or, if a partnership, the names or last names of all
7 partners: Provided, however, That an individual or partnership
8 may be conducted under the name of a predecessor funeral
9 establishment if the name or names of the owner or partners
10 appear as operator or operators on all signs, forms and
11 advertising. No person not licensed under this act shall have
12 any interest in the practice carried on by a licensed funeral
13 director except as otherwise herein provided. Upon the death of
14 a licensee, the board, in its discretion, may issue a license
15 and renewal thereof to his estate, only for a period not
16 exceeding three (3) years, or widows or widowers of deceased
17 licensees as long as they remain unmarried, providing the widow,
18 the executor or administrator of the estate of the deceased
19 licensee's heir or heirs, informs the board, of the intent to
20 continue practice, within ten (10) days and applies within
21 thirty (30) days for a certificate of licensure. Such notice
22 shall be in writing. The practice carried on by a licensee's
23 estate, widow or widower shall be under the supervision of a
24 licensed funeral director employed on a full time basis, who
25 shall not conduct any other funeral business in his own name nor
26 be directly or indirectly connected with any other funeral
27 establishment.
28 (b) Restricted Corporate License. A corporate license may be
29 issued to a Pennsylvania corporation which is [organized]
30 incorporated pursuant to the provisions of the act of May 5,
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1 1933 (P.L.364, No.106), known as the "Business Corporation Law,"
2 by one or more licensed funeral directors specifically for the
3 purpose of conducting a funeral directing practice [and the name
4 or names of such licensed funeral directors is or are contained
5 in the corporate name]. The name of such corporation shall
6 contain the name or the last name of one or more of the licensed
7 shareholders or the name of a predecessor funeral establishment.
8 No licensed funeral director shall be eligible to apply for more
9 than one restricted corporate license or own shares in more than
10 one restricted corporation. Nor shall any licensed funeral
11 director who obtains a restricted corporate license or holds
12 shares in a restricted corporation have any stock or proprietary
13 interest in any other funeral establishment. Such license shall
14 be valid only if the following conditions exist at the time of
15 issuance of the license and continue in effect for the license
16 period:
17 (1) The corporation engages in no other business activity
18 other than that of funeral directing and its certificate of
19 incorporation should so specify.
20 (2) It holds no shares of stock or any property interest in
21 any other [corporation or partnership] funeral establishment.
22 (3) One or more of its principal corporate officers is a
23 person licensed as a funeral director who shall also be a member
24 of the board of directors of the corporation and shall not
25 conduct any other funeral business.
26 (4) All of its shareholders are licensed funeral directors
27 or the members of the immediate family of a licensed funeral
28 director or a deceased licensed funeral director who was a
29 shareholder in the corporation at death. For the purposes of
30 this paragraph "members of the immediate family" shall mean (i)
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1 spouse, (ii) children, (iii) grandchildren, (iv) a trustee or
2 custodian who holds shares for the benefit of such spouse,
3 children or grandchildren.
4 (5) The corporation shall have filed a registry statement
5 with the Secretary of the Commonwealth and thereafter have duly
6 filed its Pennsylvania corporate tax returns and paid all taxes
7 which have been assessed and as to which there is no contest.
8 (6) The corporation has, for each place of business operated
9 by it, registered with the board the name of a licensed funeral
10 director who will serve as a full-time supervisor of such place
11 of business.
12 (c) Notice of Corporate Noncompliance. Any corporation
13 holding a restricted corporate license which shall fail to
14 comply with all of the provisions set forth in subsection (b)(1)
15 through (5) shall immediately give notice to the board of such
16 failure and set forth in such notice the nature of the failure
17 to comply and such corporation shall have a period of sixty (60)
18 days from the date of the event which results in failure to
19 comply in which to cure the failure and at the end of such sixty
20 (60) day period shall either supply documentary evidence in
21 affidavit form of the basis upon which such failure has been
22 corrected or shall surrender its license to the board and shall
23 forthwith desist from the conduct of the business of funeral
24 directing.
25 (d) Professional Corporation License. A corporate license
26 may be issued to a Pennsylvania corporation which is
27 incorporated pursuant to the provisions of the act of July 9,
28 1970 (P.L.461, No.160), known as the "Professional Corporation
29 Law," by one or more licensed funeral directors specifically for
30 the purpose of conducting a funeral directing practice. No
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1 professional corporation may render funeral services unless it
2 holds a professional corporation license issued pursuant to this
3 subsection. The name of such professional corporation shall
4 contain the name or the last name of one or more of the
5 shareholders or the name of a predecessor funeral establishment.
6 No professional corporation shall own shares of stock or any
7 property interest in any other funeral establishment. Each
8 professional corporation shall, for each place of business
9 operated by it, register with the board the name of a licensed
10 funeral director who will serve as full-time supervisor of such
11 place of business. Nor shall any licensed funeral director who
12 obtains a professional corporation license or holds shares in a
13 professional corporation have any stock or proprietary interest
14 in any other funeral establishment: Provided, however, That any
15 licensed funeral director who owned shares of more than one
16 professional corporation prior to February 1, 1977, may maintain
17 ownership of such shares and such corporations may be licensed.
18 , however, the license issued to such professional corporations <--
19 shall be valid only so long as the shares of such professional
20 corporations are owned by a licensed funeral director or funeral
21 directors who owned shares in such professional corporations
22 prior to February 1, 1977.
23 [(d)] (e) Branch Place of Practice. Except as provided in
24 subsection (d), [Licensees] licensees authorized to conduct a
25 funeral directing practice whether as an individual,
26 partnership, professional corporation or restricted business
27 corporation may [conduct business] practice at one principal
28 place [,] and no more than one[,] branch place of [practice]
29 business provided that a licensed funeral director is
30 [permanently] assigned as a full-time supervisor to such branch
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1 location, and provided that the facilities furnished at such
2 branch location fully comply with all the provisions of this act
3 and the rules and regulations promulgated by the board as
4 amended from time to time. The board shall issue a separate
5 license and require payment of a separate license fee for such
6 branch location. Any licensed funeral director who is a
7 registered supervisor of a corporation, owns shares in a
8 restricted business corporation or in a professional corporation
9 shall be deemed to be "practicing" for or through such
10 corporation.
11 Section 2. Section 19, amended July 31, 1968 (P.L.1008,
12 No.295), is amended to read:
13 Section 19. State Board of Funeral Directors.--There shall
14 be a State Board of Funeral Directors as a departmental
15 administrative board in the Department of State. The State Board
16 of Funeral Directors shall consist of [five] seven persons,
17 [who] five of whom shall be licensed funeral directors of good
18 moral character and who shall also have been actively engaged in
19 the practice of funeral directing for at least ten years
20 immediately preceding their appointment. Two consumer members
21 shall be appointed by the Governor to foster, protect and
22 represent the consumer interest in matters before the board. The
23 consumer members shall be appointed at the pleasure of the
24 Governor ONE FOR AN INITIAL TERM OF THREE YEARS AND ONE FOR A <--
25 TERM OF FIVE YEARS, AND EACH FOR FIVE-YEAR TERMS THEREAFTER, and
26 shall be confirmed by a majority vote of the Senate. Consumer
27 members shall possess a reputation in their community for having
28 demonstrated consumer interest and further provided that such
29 person, their spouse or children have never been a funeral
30 director nor financially interested in or connected with the
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1 funeral directing business or have never been employed by any
2 trade association of such profession, directly or indirectly.
3 The Commissioner of Professional and Occupational Affairs shall
4 be an ex officio member of the said board, acting on behalf of
5 the Secretary of State. One FUNERAL DIRECTOR member shall be <--
6 appointed each year for a term of five years, expiring on the
7 thirty-first day of August or until his successor is appointed
8 and qualified. Vacancies shall be filled for the unexpired
9 portion of the term only. The present members of the State Board
10 of Undertakers shall continue as members of the State Board of
11 Funeral Directors until the expiration of their respective
12 terms.
13 Three members of the board shall constitute a quorum. The
14 board shall select from among their number a chairman and shall
15 elect a secretary who need not be a member of the board. Each
16 member of the board, other than the Commissioner of Professional
17 and Occupational Affairs, shall receive thirty dollars per diem
18 when actually engaged in the transaction of official business
19 and said members shall also receive the amount of actual
20 traveling, hotel and other necessary expenses incurred in the
21 performance of their duties under this act.
22 Section 3. This act shall take effect in 60 days.
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