By:  Carona                                                       S.B. No. 237
	(In the Senate - Filed January 24, 2005; February 3, 2005, 
read first time and referred to Committee on Business and Commerce; 
April 28, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 8, Nays 0; April 28, 2005, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 237                                    By:  Carona


A BILL TO BE ENTITLED

AN ACT


relating to requirements applicable to purchase agreements for 
certain funeral, cemetery, and crematory services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The intent of the legislature in enacting this 
Act is to more clearly set forth the original intent of the meaning 
of the term "cash advance items" as provided by 22 T.A.C. Section 
203.20.  This Act is intended to protect the rights of consumers as 
provided by 22 T.A.C. Chapter 203.
	SECTION 2.  Section 651.001, Occupations Code, is amended by 
amending Subdivision (1) and adding Subdivision (1-a) to read as 
follows:
		(1)  "Cash advance item" means any item of service or 
merchandise described by a funeral provider to a purchaser as "cash 
advance," "accommodation," "cash disbursement," or similar item, 
and any item obtained from a third party and paid for by the funeral 
provider on the purchaser's behalf.  The term may include cemetery 
or crematory services, pallbearers, public transportation, clergy 
honoraria, flowers, musicians, singers, nurses, obituary notices, 
gratuities, and death certificates.  To ensure consistency in the 
term's use, the term shall be construed and interpreted in 
accordance with pronouncements and rulings issued by the Federal 
Trade Commission.
		(1-a)  "Cemetery" means a place that is used or 
intended to be used for interment, and includes a graveyard, burial 
park, or mausoleum.
	SECTION 3.  Subsections (a) and (d), Section 651.406, 
Occupations Code, are amended to read as follows:
	(a)  A purchase agreement must state:                                          
		(1)  the name, address, and telephone number of the 
funeral establishment;  
		(2)  the amount paid or owed to another person by the 
funeral establishment on behalf of the customer for cash advance 
items and each fee charged the customer for a cash advance item [the 
cost of advancing funds or becoming indebted to another person on 
behalf of the customer];
		(3)  the printed notice required by Subsection (b);                           
		(4)  the name, mailing address, and telephone number of 
the commission; and 
		(5)  a statement that complaints may be directed to the 
commission.         
	(d)  If the customer selects a package arrangement [based on 
unit pricing], the itemization requirement described by Section 
651.001(15) is satisfied by listing the funeral goods and funeral 
services included in [providing a purchase agreement that itemizes 
the discount provided by] the package arrangement, the current 
retail price of each of those items, the total amount of any 
discount, and the total price of the funeral goods and funeral 
services selected.
	SECTION 4.  Subsections (a) and (d), Section 651.4065, 
Occupations Code, are amended to read as follows:
	(a)  A purchase agreement must state:                                          
		(1)  the name, address, and telephone number of the 
cemetery or crematory;  
		(2)  the amount paid or owed to another person by the 
cemetery or crematory on behalf of the customer for cash advance 
items and each fee charged the customer for a cash advance item [the 
cost of advancing funds or becoming indebted to another person on 
behalf of the customer];
		(3)  the printed notice required by Subsection (b);                           
		(4)  the name, mailing address, and telephone number of 
the commission;     
		(5)  a statement that complaints may be directed to the 
commission; and     
		(6)  any other items that the commission may by rule 
require.               
	(d)  If the customer selects a package arrangement [based on 
unit pricing], the itemization requirement described by Section 
651.001(15) is satisfied by listing the funeral goods and funeral 
services included in [providing a purchase agreement that itemizes 
the discount provided by] the package arrangement, the current 
retail price of each of those items, the total amount of any 
discount, and the total price of the funeral goods and funeral 
services selected.
	SECTION 5.  The changes in law made by this Act to Sections 
651.406 and 651.4065, Occupations Code, apply only to a purchase 
agreement entered into on or after the effective date of this Act.  
A purchase agreement entered into before the effective date of this 
Act is governed by the law in effect on the date the agreement was 
entered into, and the former law is continued in effect for that 
purpose.
	SECTION 6.  This Act takes effect September 1, 2005.                           



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