SRC-AXB S.B. 485 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 485
76R4637  WP-FBy: Whitmire
State Affairs
2/18/1999
As Filed


DIGEST 

Currently, the Texas Finance Code regulates the prepaid sale of funeral
services and "funeral merchandise," including a casket and other
incidentals to a funeral service.  The Texas Department of Banking has
concluded that this statute is so broad that it can be construed to cover
advance sales of floral tributes marking anniversaries of the deceased.
Naturally, these flowers would be delivered to grave sites and therefore do
not qualify as funeral merchandise.  In addition, the Texas Finance
Commission defines "funeral goods" as "tangible and nonperishable items of
personalty, designed for use in connection with a funeral service."
Flowers are perishable and are not used solely for funerals.  This bill
excludes floral arrangements sold on a prepaid basis by non-permit-holding
vendors from official definitions of prepaid funeral benefits to clarify
that the sale of floral arrangements is not covered by the preneed statute. 

PURPOSE

As proposed, S.B. 485 excludes a floral arrangement sold on a prepaid basis
by a non-permit-holding vendor from official definitions of certain prepaid
and preneed funeral benefits. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 154.002, Finance Code, by amending Subdivisions
(8) and (11), to redefine "prepaid funeral benefits," "funeral
merchandise," and "merchandise," to provide that the terms do not include a
floral arrangement sold on a prepaid basis by a vendor who is not a permit
holder under this chapter. 

SECTION 2.  Provides that in accordance with other law, Section 154.002,
Finance Code, as set out in this Act, gives effect to changes made by
Chapter 1389, Acts of the 75th Legislature, Regular Session, 1997.
Provides that this Act prevails over another Act of the 76th Legislature,
Regular Session, 1999, to the extent of any conflict. 

SECTION 3.Emergency clause.
  Effective date:  upon passage.