The Attorney General of Texas 

December 22, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12546 

Austin. TX. 787ll- 2546 

5121475-2501 

Telex 9101674-1367 

Telecopier 5121475-0266 

1607 Main St., Suite 1400 

Dallas, TX. 75201-4709 

2141742-6944 

4624 Alberta Ave., Suite 160 

El Paso, TX. 79905-2793 

9151533-3464 

1220 Dallas Ave., Suite 202 

Houston, TX. 77002-6966 

7 131650-0666 

606 Broadway. Suite 312 

Lubbock, TX. 79401.3479 

606l747.5236 

4309 N. Tenth. Suite S 

McA,,en, TX. 76501-1665 

5121662.4547 

200 Main Plaza, suite 400 

San Antonio. TX. 76205.2797 

512,225.4191 

An Equal Opportunity/ 

Affirmative Action Employer 

Mr. John W. Shocklee 

Executive Secretary 

State Board of Morticians 

1513 S. Interstate 35 

Austin, Texas 78741 

Dear Mr.,Shocklee: 

Opinion No.MJ-539 

lte: Cost itemization of funeral 

services and merchandise pursuant 

section 38(23) of article 

:;82b, V.T.C.S. 

You have raised two questiohs concerning section 3H(23) of 

article 4582b. V.T.C.S. Section 3H of this statute provides: 

The State Board of Morticians may seek appropriate 

injunctive relief against a funeral establishment, 

licensed embalmer, or funeral director who fails 

to comply with any provision of this Act. This 

Act does not affect any remedy or enforcement 

power under other laws. The State Board of 

Morticians may revoke, suspend, or place on 

probation any licensed funeral director and/or 

embalmer, or apprentice and may refuse to license 

or admit persons to examination for any of the 

following reasons all of which are offenses as 

provided in Section 6A of this Act: 

. . . . 

23. Failure of any person arranging for 

funeral services or merchandise to provide each 

customer a written memorandum itemizing the costs 

of funeral services and funeral merchandise 

selected by the customer as enumerated in the 

price list, the requirements of which are set 

forth in Section 3, Subsection H(22) of this Act; 

each amount paid or owed to another on behalf of 

the customer; each fee for the costs of advancing 

funds or becoming indebted to another on behalf of 

the customer; and including the name, address, and 

telephone number of the funeral establishment and 

the following notice: 'Charges are only for those 

items that are used. If the type of funeral 

p. 1954 
Mr. John W. Shocklee - Page 2 (MW-539) 

selected requires extra items, we will explain the 

reasons in writing on this memorandum.' Provided, 

however, that any person arranging for funeral 

services merchandise Y satisfy the 

itemixation"~eq"irements of thi:Subsection 3H(23) 

by providing prices to the purchaser on a 

component or unit pricing basis that provides a 

discount to the purchaser if any component or unit 

is declined or if all components or units are 

selected. The written memorandum shall also 

include the name, address, and telephone number of 

the State Board of Morticians and a statement 

indicating that complaints can be directed to the 

Board. (Emphasis added). 

Your questions concern the subsection 3H(23) proviso. They are: 

1. Does component or "nit piicing exempt a 

person from the itemization requirement of section 

38(23) of the Mortuary Laws, article 4582b, 

V.T.C.S.? 

2. If so, what constitutes component or unit 

pricing so as to satisfy the itemization 

requirement of section 3H(23)? More particularly, 

how does a 'discount' apply to such component or 

unit pricing? 

The words 'component' and 'unit' are not defined in article 

4582b. They must therefore be given their ordinary meaning. 

Satterfield v. Satterfield, 448 S.W.2d 456 (Tex. 1969). Webster's New 

International Dictionary 231 (2d Ed. 1977) states that "component" is 

synonymous with "constituent," "ingredient," and "element." It 

defines "unit" as a "distinct part or member analyzable in an 

aggregate or whole." 

Subsection 38(23) requires every person who arranges for funeral 

services or merchandise to furnish each customer a written memorandum 

that itemizes the cost of each service and item that he purchases, as 

said cost is "enumerated in the price list, the requirements of which 

are set forth in section 3, subsection 38(22) of this Act." This 

"price list" is a list of the retail prices of available funeral 

services and merchandise. It must be made available to customers "at 

the time of discussion or selection of funeral services or 

merchandise." The intent of subsection 38(23) is obviously to insure 

that each customer knows the exact cost of everything that he buys. 

Subsection 3H(23) then states, however, that a person may satisfy 

the itemization requirement by providing "prices to the purchaser on a 

p. 19'55 
Mr. John W. Shocklee - Page 3 0-w539) 

component or unit pricing basis that provides a discount to the 

purchaser if any component or unit is declined or if all components or 

units are selected." Since, as we noted above, "component" and "unit" 

essentially mean "individual," we believe it is clear that if a 

customer buys several items and services, and the customer is given a 

"package price" which does not contain a cost breakdown, the 

requirements of the proviso have not been met. But if both the 

proviso and the main body of subsection 38(23) require itemized 

pricing, how do the two differ? 

In our opinion, the key words in the subsection 3H(23) 

requirement are "as enumerated in the price list." As we have noted, 

each customer must, as a general rule, be informed of the retail price 

of every item and service that he purchases. The subsection 3H(23) 

proviso does not eliminate the itemization requirement. On the 

contrary, we believe that it simply authorizes sellers to list prices 

of individual items and services that differ from their retail prices 

because one of the two permissible discounts is offered to the 

customer and a new price results from the application of that 

discount. Thus, if a customer purchases several items and/or 

services, and no discount is offered, the seller would have to list 

the retail price of each item and service as stated in the retail 

price list. If, on the other hand, a discount is offered, the seller 

could satisfy the itemization requirement by lxting the discounted 

price of each item and service. The proviso, in other words, merely 

insures that the seller cannot be accused of violating subsection 

3H(23) if the individual prices that he lists deviate from the retail 

prices stated in the retail price list, as long as the deviations 

result from the application of one of the discounts permitted in that 

subsection. 

The legislative history of subsection 3H(23) supports this 

conclusion. The transcript of testimony on Senate Bill No. 277 which 

was presented to the Government Organization Committee of the House of 

Representatives on April 18, 1979, contains this excerpt from the 

testimony of a witness: 

[T]here are two price l~ists that you must provjde 

under the suggested bill, 277. In the first 

place, at the time of selection, when you are 

first talking to the family, you must tell them 

that there is available in the funeral home, and 

at their request, you will present them with the 

entire price list before they ever start talking 

about any kind of a contract. And that gives them 

the right to decline any item on there that they 

feel would not be necessary for the funeral 

service.... Then, at the time you are entering 

into the contractual arrangement with them, you 

p. 1956 
Mr. John W. Shocklee - Page 4 (Mw-539) 

must disclose every item which they have selected 

and the price for that individual item, itemized, 

now completely. Now, we have put in another 

nrovision in there in the committee substitute.... 

'[T]he FTC has recommended that because certain 

discounts are very often granted on a unit pricing 

basis that you can use unit pricing if it will 

provide a discount either for the declination of a 

component part or if they want to make a purchase 

of the entire package, you can give them a 

discount on that basis. And the FTC has 

recommended, and it has been their experience in 

other states where they have had experience with 

itemization, that the unit pricing will very often 

reflect a cheaper price than what the full--the 

unit price will very often reflect a cheaper price 

than the full itemization. (Emphasis added). 

These statements indicate that in enacting the subsection 38(23) 

proviso, the legislature did not intend to abolish the cost breakdown 

requirement, but merely sought to protect sellers who offer discounts 

which result in a price of an item or service that is less expensive 

than its normal retail price. 

SUMMARY 

Under subsection 38(23) of article 4582b, 

V.T.C.S., "component or unit pricing" requires 

itemized pricing of each funeral item or service 

purchased by a customer, but allows the seller to 

list a price that differs from the price stated in 

the retail price list if the deviation results 

from the application of either of the discounts 

permitted by that subsection. 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Jon Bible 

Assistant Attorney General 

p. 1957 
Mr. John W. Shocklee - Page 5 (MW-539) 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Patricia Hinojosa 

Shawn Jamail 

Jim Moellinges 

Bruce Youngblood 

p. 1958