The Board shall license a restricted funeral establishment before the restricted funeral establishment may be used for the practice of mortuary science or funeral direction. The Board shall issue a restricted funeral establishment license to a restricted funeral establishment that has: Complied with: All applicable federal, State, and local laws; Advertising requirements set forth in COMAR 10.29.12; and Regulation .05 of this chapter; For each restricted funeral establishment: Submitted an application to the Board on the required form which includes a full description of services; Paid the application fee and, when applicable, the family security trust fund fee; and Completed and passed an inspection as outlined in Regulation .05 of this chapter; After July 1, 2001, submitted to the Board copies of the documents listed in Regulation .05D of this chapter; Beginning January 1, 2002, submitted during the bi-annual inspection to the Board, copies of the documents listed in Regulation .05D of this chapter created during the preceding year; and Operated in accordance with Health Occupations Article, Title 7, Annotated Code of Maryland. The restricted funeral establishment shall: Submit a notarized lease agreement with the sponsoring funeral establishment, including an application stating scope of operations for approval to the Board; Employ and designate, on a form provided by the Board, a supervising mortician or supervising funeral director, licensed in accordance with State laws, who shall be in compliance with Health Occupations Article, Title 7, Annotated Code of Maryland; and Submit documentation of any termination or change in the status of the lease agreement, within 10 days of the termination or change in status. Subject to the hearing provisions of Health Occupations Article, §7-319, Annotated Code of Maryland, the Board may: Deny a license to an applicant for a restricted funeral establishment license; Reprimand the holder of a restricted funeral establishment license; Place the holder of a restricted funeral establishment license on probation: Suspend or revoke a restricted funeral establishment license if, with the knowledge or at the direction of the restricted funeral establishment: An unlicensed individual practices mortuary science or funeral direction for or within the restricted funeral establishment; or An employee of the restricted funeral establishment fails to comply with: Health-General Article, §5-513(b) and (d), Annotated Code of Maryland; and Health Occupations Article, §7-405, Annotated Code of Maryland. The funeral establishment sponsor shall remain in good standing with the Board to continue as a sponsor for any restricted funeral establishment. For a funeral establishment sponsor that experiences the death of single owner and sole licensee as set forth in Health Occupations Article, §7-308.3, Annotated Code of Maryland, the restricted funeral establishment: Shall submit to the Board a new notarized lease agreement within 30 days, if the restricted funeral establishment intends to continue operating from that sponsoring funeral establishment; Shall be subject to hearing provisions set forth under Health Occupations Article, §7-319, Annotated Code of Maryland, for failure to comply with §F(1) of this regulation, which may result in: A reprimand for the holder of the restricted establishment license; Probation for the holder of the restricted establishment license; or The suspension or revocation of the restricted establishment license; and May voluntarily surrender the restricted funeral establishment license to avoid the hearing procedures provided the conditions are met as set forth under Health Occupations Article, §7-318, Annotated Code of Maryland. If a funeral establishment sponsor closes its operations to the public, any restricted establishment license with a lease agreement with this designated funeral establishment sponsor: Shall become invalid upon closure of the sponsoring funeral establishment subject to the hearing provisions set forth under Health Occupations Article, §7-319, Annotated Code of Maryland; or May voluntarily surrender the restricted funeral establishment license to avoid the hearing procedures, provided the conditions are met as set forth under Health Occupations Article, §7-318, Annotated Code of Maryland. For each location operated by the restricted funeral establishment, a separate license shall be obtained and displayed prior to commencing the practice of mortuary science or funeral direction. As set forth under Health Occupations Article, §7-504, preneed services and merchandise may be offered by a restricted funeral establishment.