Morticians and Funeral Directors - Not-For-Profit Funeral Establishments
Summary
SB 957 would expand Maryland’s mortuary science and funeral establishment licensing laws to allow certain not-for-profit organizations to be treated like “corporations” for licensing purposes. Under current law, corporate ownership and operation of mortuary science businesses is tightly limited, with a narrow grandfathered exception for corporations that held a license in 1945 and have continuously renewed it. This bill adds a new category for tax-exempt 501(c)(3) organizations and authorizes the State Board of Morticians and Funeral Directors to issue and renew licenses to qualifying not-for-profit funeral establishments.
The bill also updates the funeral establishment licensing provisions so that a not-for-profit organization may own and operate a funeral establishment if it employs appropriately licensed personnel, including a licensed mortician, funeral director, or surviving spouse license holder. It makes conforming changes to application and renewal requirements, branch establishment rules, and the role of supervising morticians, while preserving the general requirement that mortuary science be practiced by licensed individuals. The bill is set to take effect October 1, 2025.
Impact
SB 957 would amend Title 7 of the Health Occupations Article to create a new licensing pathway for not-for-profit funeral establishments and to broaden the definition of “corporation” to include 501(c)(3) organizations. This would change who may receive a corporation license, who may apply for a funeral establishment license, and how the Board evaluates ownership and operation of funeral homes. The bill would affect the State Board of Morticians and Funeral Directors, existing funeral establishments, and any nonprofit entities seeking to enter the funeral services market.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from hearings or floor action. Based on the bill’s structure, the measure appears designed to open a narrow licensing option for nonprofit funeral providers while keeping professional licensing safeguards in place. The absence of recorded debate makes the overall sentiment difficult to gauge from the available materials.
Contention
The main policy issue is whether nonprofit organizations should be allowed to operate licensed funeral establishments under the same general framework that has historically limited corporate ownership. Supporters would likely view the bill as expanding access and allowing mission-driven or community-based funeral providers to operate legally. Potential opponents may be concerned about loosening long-standing restrictions on corporate involvement in mortuary science, the adequacy of oversight for nonprofit operators, and whether the new exception could create pressure for broader corporate participation in the funeral industry.