I 
107TH CONGRESS 
2D SESSION 
H. R. 5743
To improve funeral home, cemetery, and crematory inspection systems, to 
establish consumer protections relating to funeral service contracts, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 14, 2002
Mr. FOLEY introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
A BILL 
To improve funeral home, cemetery, and crematory inspec-
tion systems, to establish consumer protections relating 
to funeral service contracts, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Death Care 
Inspection and Disclosure Act’’.
(3) to train funeral home, crematory, and ceme-
tery inspectors; 
(4) to hire or train consumer advocates to re-
solve disputes between consumers and death care 
providers; 
(5) to implement a new system or enhance an 
existing system for receiving, investigating, medi-
ating, or otherwise resolving consumer complaints 
against funeral homes, cemeteries, crematories, and 
other death care providers; or 
(6) to implement a new system or enhance an 
existing system for enforcing State regulations gov-
erning the operation and practices of funeral homes, 
cemeteries, crematories, and other death care pro-
viders. 
(b) ELIGIBILITY.—
(1) IN GENERAL.—To be eligible to receive a 
grant under this section a State agency described in 
subsection (a) shall—
(A) submit an application for such grant 
to the Coordinator for approval; 
(B) certify to the Coordinator that such 
agency is a unit of State government respon-
sible for registering, inspecting, and monitoring
funeral homes, cemeteries, crematories, or other 
death care providers within the State; and 
(C) maintain compliance with the stand-
ards and requirements established under section 
103. 
(2) APPLICATION.—An application for a grant 
under this section shall be submitted at such time, 
in such form, and containing such information as 
the Coordinator may, by regulation or guideline, pre-
scribe. Such application shall include a long-term 
strategy for the use of grant funds and a detailed 
implementation program that reflects—
(A) consultation with—
(i) representatives from the death care 
industry; and 
(ii) consumers of death care services 
in the State; and 
(B) a consideration of a statewide strategy 
for protecting the interest of such consumers. 
(c) TECHNICAL ASSISTANCE.—The Coordinator may 
provide technical assistance and training to a grantee 
under this section to assist and measure the effectiveness 
and performance of programs funded under this section.
(d) GRANT PERIOD.—A grant under this section shall 
be made for a period not to exceed 3 years, but may be 
renewed on such terms as the Coordinator may require. 
(e) 
NONSUPPLANTING
REQUIREMENT.—Amounts 
made available under a grant under this section shall be 
used to supplement, and may not be used to supplant, 
State or local funds used to carry out activities of the type 
provided for under this section. 
(f) FEDERAL SHARE.—The Federal share of a grant 
made under this section shall not exceed—
(1) for the first fiscal year for which a grantee 
receives assistance under the grant, 75 percent of 
the total costs of carrying out the program under 
the grant; and 
(2) for the second and subsequent fiscal years 
for which a grantee receives assistance under the 
grant, 50 percent of the total costs of carrying out 
such program. 
(g) ADMINISTRATIVE COSTS.—A grantee may use not 
to exceed 10 percent of the amounts received under a 
grant under this section for administrative expenses, in-
cluding expenses incurred in preparing reports. 
(h) REPORTS.—
(1) STATE REPORTS.—A State agency or orga-
nization that receives a grant under this section
shall submit to the Coordinator, at such times and 
in such format as the Coordinator may require, a re-
port that contains—
(A) a summary of the activities carried out 
under the grant; 
(B) an assessment of the effectiveness of 
such activities in achieving ongoing compliance 
with the standards formulated pursuant to sec-
tion 103; and 
(C) such other information as the Coordi-
nator may require. 
(2) REPORT TO CONGRESS.—Not later than 90 
days after the end of each fiscal year for which 
grants are made under this section, the Coordinator 
shall submit to the appropriate committees of Con-
gress a report that includes—
(A) a list of the aggregate amount of 
grants made under this section to each State 
agency or organization for such fiscal year; and 
(B) an independent evaluation of the effec-
tiveness of the programs that received funding 
under this section in achieving ongoing compli-
ance with the standards formulated pursuant to 
section 103.
(i) REGULATIONS, ETC.—The Secretary of Health 
and Human Services shall issue such rules, regulations, 
guidelines, and instructions, as may be necessary to carry 
out this section. 
SEC. 103. STANDARDS FOR STATE REGULATION OF DEATH 
CARE PROVIDERS. 
(a) ESTABLISHMENT.—Not later than 180 days after 
the date of enactment of this Act, the Coordinator shall 
establish minimum standards and requirements with re-
spect to the State registration, inspection, and monitoring 
of funeral homes, cemeteries, crematories, and other death 
care providers, including—
(1) the registration or licensing of each funeral 
home, cemetery, crematory, or other death care pro-
vider with the unit of State government charged 
with the inspection and monitoring of such provider; 
(2) the physical inspection, on at least an an-
nual basis, of the places of operation of each funeral 
home, cemetery, crematory, or other death care pro-
vider which handles human remains in the State, by 
a State inspector to determine compliance with State 
regulations; 
(3) recordkeeping procedures and annual re-
porting by each funeral home, cemetery, crematory, 
or other death care provider to the unit of State gov-
ernment charged with the inspection and monitoring 
of such provider; 
(4) the licensing of death care facilities; 
(5) the inspection of death care facilities; 
(6) the receipt, investigation, mediation, or 
other resolution of consumer complaints directed at 
funeral homes, cemeteries, crematories, or other 
death care providers operating in the State; 
(7) witnessing of cremation; 
(8) the enforcement of State regulations gov-
erning the operation and practices of funeral homes, 
cemeteries, crematories, or other death care pro-
viders in the State; and 
(9) other matters determined appropriate by 
the Coordinator. 
(b) NONCOMPLIANCE.—The Coordinator shall not 
award a grant under section 102 to a State agency that 
fails to comply with the standards and requirements pro-
mulgated by the Secretary under subsection (a).
TITLE II—DISCLOSURE RULES 
FOR FUNERAL INDUSTRY 
SEC. 201. DEFINITIONS. 
In this title: 
(1) 
ALTERNATIVE
CONTAINER.—The 
term 
‘‘alternative container’’ means an unfinished wooden
box or other nonmetal receptacle or enclosure, with-
out ornamentation or a fixed interior lining, which 
is designed for the encasement of human remains 
and which is made of fiberboard, pressed-wood, com-
position materials (with or without an outside cov-
ering), or similar materials. 
(2) ARRANGEMENT SERVICES FEE.—The term 
‘‘arrangement services fee’’ means a reasonable fee 
that—
(A) is charged to cover professional and 
overhead costs, including staff time dedicated to 
conducting arrangement conferences, imple-
menting arrangement instructions, obtaining 
permits or other authorizations, preparing no-
tices for newspapers, coordinating with clergy 
and monument dealers, and similar activities; 
and 
(B) is—
(i) calculated at an hourly rate; or 
(ii) a series of flat-rate fees for spe-
cific arrangements made by a funeral serv-
ice provider. 
(3) CASH ADVANCE ITEM.—The term ‘‘cash ad-
vance item’’ means any item of service or merchan-
dise described to a purchaser as a cash advance, ac-
commodation, cash disbursement, or similar term. A 
cash advance item includes any item obtained from 
a third party and paid for by the funeral provider 
on the purchaser’s behalf. Cash advance items in-
clude cemetery or crematory services, pallbearers, 
public transportation, clergy honoraria, flowers, mu-
sicians, singers, nurses, permit fees, obituary no-
tices, gratuities, and death certificates. 
(4) CASKET.—The term ‘‘casket’’ means a rigid 
container which is designed for the encasement of 
human remains and which is usually constructed of 
wood, metal, fiberglass, plastic, or like material, and 
ornamented and lined with fabric. 
(5) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(6) CREMATION.—The term ‘‘cremation’’ means 
a heating process which incinerates human remains. 
(7) 
CREMATORY.—The 
term 
‘‘crematory’’ 
means any person, partnership, or corporation that 
performs cremation. 
(8) 
DECEPTIVE
PRACTICE.—The 
term 
‘‘deceptive practice’’ means an unfair or deceptive 
act or practice in or affecting commerce that violates 
section 5(a) of the Federal Trade Commission Act 
(15 U.S.C. 45(a)).
(9) DIRECT
CREMATION.—The term ‘‘direct 
cremation’’ means a disposition of human remains 
by cremation without formal viewing, visitation, or 
ceremony with the body present. 
(10) FUNERAL CEREMONY.—The term ‘‘funeral 
ceremony’’ means a service commemorating a de-
ceased person that occurs with the deceased’s body 
present. 
(11) FUNERAL
GOODS.—The term ‘‘funeral 
goods’’ means goods which are sold or offered for 
sale directly to the public for use in connection with 
funeral services. 
(12) FUNERAL PROVIDER.—The term ‘‘funeral 
provider’’ means any person, partnership, or cor-
poration that sells or offers to sell funeral goods or 
funeral services to the public. 
(13) FUNERAL SERVICES.—The term ‘‘funeral 
services’’ means— 
(A) any services which may be used to—
(i) care for and prepare deceased 
human bodies for burial, cremation, or 
other final disposition; and 
(ii) arrange, supervise, or conduct the 
funeral ceremony or the final disposition of 
deceased human bodies; and
(B) services provided by funeral directors, 
morticians, cemeterians, cremationists, and me-
morial retailers. 
(14) 
IMMEDIATE
BURIAL.—The 
term 
‘‘immediate burial’’ means a disposition of human 
remains by burial, without formal viewing, visitation, 
or ceremony with the body present, except for a 
graveside service. 
(15) 
MEMORIAL
SERVICE.—The 
term 
‘‘memorial service’’ means a ceremony commemo-
rating the deceased without the body present. 
(16) 
MEMORIAL
RETAILER.—The 
term 
‘‘memorial retailer’’ means a person who sells or of-
fers to sell to the public any memorial intended to 
mark the location of the internment of human re-
mains. 
(17) OUTER
BURIAL
CONTAINER.—The term 
‘‘outer burial container’’ means any container which 
is designed for placement in the grave around the 
casket including, but not limited to, containers com-
monly known as burial vaults, grave boxes, and 
grave liners. 
(18) PRENEED CONTRACT.—The term ‘‘preneed 
contract’’ means a funeral contract arranged for and 
paid, in part or in full, prior to an anticipated death.
(19) PURCHASER OF FUNERAL GOODS OR FU-
NERAL SERVICES.—The terms ‘‘purchaser of funeral 
goods or funeral services’’ and ‘‘purchaser’’ mean 
any person who—
(A) purchases funeral goods or funeral 
services from a funeral provider; or 
(B) contacts a funeral provider, in any 
manner, including in person, by telephone, by 
mail, or electronically, to obtain information re-
lated to purchasing funeral goods or funeral 
services. 
(20) REQUEST FOR INFORMATION RELATED TO 
FUNERAL GOODS OR FUNERAL SERVICES.—The term 
‘‘request for information related to funeral goods or 
funeral services’’ means any inquiry made by a per-
son to a funeral provider for information related to 
such goods or services. Such request may be made 
in person, in writing, by telephone, or electronically. 
SEC. 202. PRICE DISCLOSURES. 
(a) DECEPTIVE PRACTICES.—It shall be a deceptive 
trade practice under section 5(a) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)) for a funeral provider 
to fail to provide, in a timely manner—
(1) in response to a request for information re-
lated to funeral goods or funeral services—
(9) Direct cremations. 
(10) Crematory services. 
(11) Viewing, without embalming. 
(12) Insurance or benefit processing fee. 
(13) Internment rights. 
(14) Opening and closing charges. 
(15) Monuments, markers, or memorials. 
(c) DISCLOSURES.—The disclosures referred to in 
subsection (a)(1)(B) are the following disclosures: 
(1) The name, address, and telephone number 
of the funeral provider’s place of business. 
(2) The effective date of any prices provided. 
(3) The following statement: ‘‘For information 
on the purchase of funerals and consumer rights or 
to 
file 
a 
complaint, 
you 
may 
contact 
llllll.’’, with the blank space being filled 
with the name, address, phone number, and other 
relevant information for contacting the State agency 
or agencies responsible for handling consumer in-
quires and complaints pertaining to death care serv-
ice providers. 
(4) Contact information, including a toll-free 
number, for an agency that provides information re-
lated to veteran’s benefits.
(5) In immediate conjunction with the price of 
embalming, the following statements: 
(A) ‘‘Except in certain special cases, em-
balming is not required by law. Embalming may 
be necessary, however, if you select certain fu-
neral arrangements, such as a funeral with 
viewing. If you do not want embalming, you 
usually have the right to choose an arrange-
ment that does not require you to pay for it, 
such as direct cremation, immediate burial, or 
other timely disposition.’’. The phrase ‘‘except 
in certain special cases’’ shall not be included in 
the disclosure if State or local law in the area 
where the provider does business does not re-
quire embalming under any circumstances. 
(B) ‘‘If you selected a funeral that may re-
quire embalming, such as a funeral with view-
ing, you may have to pay for embalming. You 
do not have to pay for embalming you did not 
approve if you selected arrangements such as a 
direct cremation or immediate burial. If we 
charged for embalming, we will explain why 
below.’’. 
(6) In immediate conjunction with the price of 
direct cremations, the following disclosure: ‘‘If you
want to arrange a direct cremation, you can use an 
alternative container. Alternative containers encase 
the body and can be made of materials like fiber-
board or composition materials (with or without an 
outside covering). The containers we provide are 
llllll.’’, with the blank space being filled 
with a description of the container and its construc-
tion. 
(7) In immediate conjunction with the price of 
any outer burial container, the following disclosure: 
‘‘In most areas of the country, State or local law 
does not require that you buy a container to sur-
round the casket in the grave. However, many ceme-
teries require that you have such a container so that 
the grave will not sink or settle. Either a grave liner 
or a burial vault will satisfy these requirements.’’. 
The phrase ‘‘in most areas of the country’’ shall not 
be included in this disclosure if State or local law in 
the area where the provider does business does not 
require a container to surround the casket in the 
grave. 
(8) In immediate conjunction with the price of 
any casket or sealer casket, the following disclosure: 
‘‘There is no scientific or other evidence that any
casket with a sealing device will preserve human re-
mains.’’
(d) TIMELY MANNER.—For the purposes of sub-
section (a), information is provided in a timely manner 
if it is provided to the purchaser of funeral goods or fu-
neral services at the first opportunity, which may not be 
late than the first selling, showing, or making any rep-
resentation about any funeral goods or funeral services. 
(e) SPECIFIC APPLICATION.—The requirements of 
subsection (a) apply to every communication between a fu-
neral provider and a purchaser of funeral goods or funeral 
services, except an in-person request made by a funeral 
provider for authorization to embalm at the time a de-
ceased human body is removed for transportation. 
SEC. 203. STATEMENT OF FUNERAL GOODS AND SERVICES 
SELECTED. 
(a) IN GENERAL.—It shall be a deceptive trade prac-
tice under section 5(a) of the Federal Trade Commission 
Act (15 U.S.C. 45(a)) for a funeral provider to fail to give 
an itemized written statement for retention to a purchaser 
of funeral goods or funeral services at the conclusion of 
the discussion related to such goods and services and prior 
to providing any services beyond taking possession of a 
deceased human body for authorized embalming. The 
statement shall include the following information:
(1) The funeral goods and funeral services se-
lected by the purchaser and the prices to be paid for 
each good or service. 
(2) A specific itemization of cash advance items 
to the extent then known or reasonably ascertain-
able. If the prices are not known or reasonably as-
certainable, a good faith estimate shall be given and 
a written statement that the actual charges shall be 
provided before the final bill is paid. 
(3) The total cost of the goods and services se-
lected. 
(4) If a sealer casket is selected by the pur-
chaser, the following disclosure: ‘‘This product is not 
designed or intended to preserve human remains, 
and may under certain circumstances accelerate the 
decomposition of the body.’’
(b) PLACEMENT OF INFORMATION.—The information 
required by subsection (a) shall be included on any con-
tract, statement, or other document which the funeral pro-
vider would otherwise provide at the conclusion of a dis-
cussion related to funeral goods or funeral services. 
SEC. 204. MISREPRESENTATIONS. 
It shall be a deceptive trade practice under section 
5(a) of the Federal Trade Commission Act (15 U.S.C. 
45(a)) for a funeral provider—
(1) to inaccurately represent that Federal, 
State, or local law or industry custom requires the 
purchase of any funeral goods or funeral services, 
including to inaccurately represent that—
(A) State or local law requires that a de-
ceased person be embalmed; 
(B) State or local law requires a casket for 
direct cremation; or 
(C) a particular cemetery requires outer 
burial containers; 
(2) to fail to identify and briefly describe in 
writing on the statement of funeral goods and fu-
neral services selected any legal requirement which 
the funeral provider represents to a person as com-
pelling the purchase of funeral goods or funeral serv-
ices for the funeral which that person is arranging; 
or 
(3) to fail to disclose that embalming is not re-
quired for—
(A) direct cremation; 
(B) immediate burial; or 
(C) a closed casket funeral without viewing 
or visitation when refrigeration is available and 
when State or local law does not require em-
balming; or
(4) to inaccurately represent the ability of fu-
neral goods or funeral services to delay the natural 
decomposition of human remains for a long-term or 
indefinite time. 
SEC. 205. REQUIRED PURCHASE OF FUNERAL GOODS OR 
FUNERAL SERVICES. 
(a) OTHER REQUIRED PURCHASES
OF FUNERAL 
GOODS OR FUNERAL SERVICES.—It shall be a deceptive 
trade practice under section 5(a) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)) for a funeral provider 
to—
(1) condition the furnishing of any funeral good 
or funeral service to a person arranging a funeral on 
the purchase of any other funeral good or funeral 
service, except as required by law or as otherwise 
permitted by this title; 
(2) charge any fee as a condition to furnishing 
any funeral goods or funeral services to a person ar-
ranging a funeral, other than—
(A) the fees for specific funeral services 
and funeral goods selected by the purchaser; 
(B) the fees for other funeral goods or fu-
neral services required to be purchased, as ex-
plained on the itemized statement in accordance 
with section 203(a); or
(C) an arrangement services fee that—
(i) is disclosed as being either an 
hourly rate fee described in clause (i) of 
section 201(2)(B) or a flat fee described in 
clause (ii) of such section; and 
(ii) is elected by the purchaser; 
(3) fail to place—
(A) immediately above the prices disclosed 
as described in section 202(a), the following 
disclosure: ‘‘The goods and services shown 
below are those we can provide to our cus-
tomers. You may choose the items you desire. 
If legal or other requirements mean you must 
buy any item that you do not specifically re-
quest, we will explain the reason in writing on 
the statement we provide describing the funeral 
goods and services you selected.’’; or 
(B) in the statement of funeral goods and 
services selected, as described in section 
203(a)(1), the following disclosure: ‘‘Charges 
are only for those items that you selected or 
that are required. If we are required by law or 
by a cemetery or crematory to use any items, 
we will explain the reasons in writing below.’’.
(b) EXCEPTION.—A funeral provider shall not 
be treated as violating this section, if the funeral 
provider fails to comply with a request for a com-
bination of goods or services which would be impos-
sible, impractical, or excessively burdensome to pro-
vide. 
SEC. 
206. 
SERVICES 
PROVIDED 
WITHOUT 
PRIOR 
AP-
PROVAL. 
(a) DECEPTIVE PRACTICES.—It shall be a deceptive 
trade practice under section 5(a) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)) for a funeral provider 
to embalm a deceased human body unless—
(1) State or local law or regulation requires em-
balming in the particular circumstances regardless 
of any funeral choice which the family might make; 
(2) prior approval for embalming has been ex-
pressly obtained from a family member or other au-
thorized person; 
(3) the funeral provider is unable to contact the 
family member or other authorized person after ex-
ercising due diligence and reasonably believes the 
family wants embalming performed; 
(4) refrigeration is necessary and is not avail-
able in the community where the provider does busi-
ness;
(b) DISCLOSURE REQUIRED.—In seeking the ap-
proval required by subsection (a)(2), the funeral provider 
shall disclose that a fee will be charged if the family or 
other authorized person selects a funeral which requires 
embalming, such as a funeral with a public or private 
viewing, and that no fee will be charged if the family or 
other authorized person selects a service which does not 
require embalming, such as direct cremation or immediate 
burial. 
SEC. 207. RETENTION OF DOCUMENTS. 
A funeral provider shall retain and make available for 
inspection by the Commission true and accurate copies 
of—
(1) the price lists required by section 202(a) for 
at least 1 year after the date of the last distribution 
of such lists to customers; and 
(2) each statement of funeral goods and serv-
ices selected, as required by section 203, for at least 
1 year from the date of arranging a funeral or me-
morial services. 
SEC. 208. COMPREHENSION OF DISCLOSURES. 
A funeral provider shall make the disclosures re-
quired by this title in a clear and conspicuous manner 
using type that is not smaller than 12 points in size. A 
funeral provider shall not include in any price list, a state-
ment or information that alters on contradicts the infor-
mation required by this title to be included in those lists. 
SEC. 209. PROHIBITED SALES PRACTICES. 
(a) IN GENERAL.—Each of the following sales prac-
tices shall be a deceptive trade practice under section 5(a) 
of the Federal Trade Commission Act (15 U.S.C. 45(a)): 
(1) Unsolicited telephone offers to sell funeral 
goods, funeral services, crematory services, inter-
ment rights, or other cemetery and memorialization 
goods and services. 
(2) Door-to-door direct offers to sell funeral 
goods, funeral services, crematory services, inter-
ment rights, or other cemetery and memorialization 
goods and services. 
(b) IDENTIFICATION
OF AFFILIATION.—A person 
who is an operator, funeral provider, funeral director, em-
balmer, or memorial dealer shall—
(1) state the person’s affiliation with any pub-
licly traded company in all contracts and on all busi-
ness letterhead, advertising, and marketing mate-
rials; and 
(2) state the person’s licensed business location 
in all directories, advertising, and marketing mate-
rials in which offsite telephone numbers are used.
SEC. 210. CASH ADVANCE PROVISIONS. 
It shall be a deceptive trade practice under section 
5(a) of the Federal Trade Commission Act (15 U.S.C. 
45(a)) for a funeral provider to—
(1) represent that the price charged for a cash 
advance item is the same as the cost to the funeral 
provider for the item when such is not the case; or 
(2) fail to disclose to a person arranging a fu-
neral that the price being charged for a cash ad-
vance item is not the same as the cost to the funeral 
provider for the item when such is the case. 
(3) fail to place in the itemized statement of fu-
neral goods and funeral services selected, in imme-
diate conjunction with the list of itemized cash ad-
vance items required by section 203(a)(2), the fol-
lowing statements: 
(A) ‘‘We charge for our services in obtain-
ing llll.’’; with the blank space being 
filled with a list of cash advance items, if the 
funeral provider marks up the price for or re-
ceives and retains a rebate, commission, or 
trade or volume discount on a cash advance 
item. 
(B) ‘‘You have the right to arrange for the 
purchase of these items on your own behalf.’’.
SEC. 211. CONSUMER PROTECTIONS IN PRENEED AND PRE-
PAID FUNERAL SERVICE TRANSACTIONS. 
It shall be a deceptive trade practice under section 
5(a) of the Federal Trade Commission Act (15 U.S.C. 
45(a)) for a funeral provider to fail to comply with the 
following prepaid contract requirements: 
(1) Prepaid contracts shall conform to all appli-
cable Federal and State statutes and regulations. 
(2) Prepaid contracts shall be written in plain 
English, and clearly state the merchandise and serv-
ices that purchasers are buying and their prices. Use 
of legal or industry-specific jargon shall be avoided 
to the extent possible. 
(3) Charges for funeral goods or funeral serv-
ices shall be itemized. The itemization shall be in 
greater detail than a recitation of prices and shall 
include a complete description of the services to be 
rendered and an unambiguous description of the 
merchandise to be delivered. 
(4) When prices of merchandise or services to 
be delivered in the future are not guaranteed, or an 
additional payment may be required in the future, a 
statement to that effect shall be included in the pre-
pared contract and initialed by the purchaser. 
(5) The contract must clearly state what hap-
pens if merchandise is not available at delivery time
and substitution is necessary. The description of the 
merchandise shall be sufficiently complete for the 
person authorized to make funeral arrangements to 
make a decision, based on objective criteria, about 
the comparability of a needed substitution. 
(6) No substitution shall be made without the 
consent of the purchaser, or upon the purchaser’s 
death, the person authorized to make funeral ar-
rangements. A prepaid contract must contain a pro-
vision, which is initialed by the purchaser, either 
prohibiting any changes, or, alternatively, specifying 
what instructions may be modified and by whom. 
(7) There shall be an explanation of how the 
purchaser’s funds will be protected to assure the 
seller’s performance in compliance with the pre-
vailing prepaid contract law. The name of the insti-
tution where funds will be deposited in escrow must 
be disclosed. The buyer must receive an annual re-
port from the escrow agent. An administrative fee, 
not to exceed 1 percent of the contract, may be with-
drawn annually by the escrow agent. 
(8) The prepaid contract shall provide for can-
cellation and refund or transfer of the contract with 
no loss of benefits paid by the purchaser along with 
accrued interest.
(9) A prepaid contract may be made irrevocable 
only when the beneficiary will be applying for med-
icaid or other social benefits within the next 6 
months. The irrevocability of the prepaid contract 
shall not affect the right of the purchaser to change 
the provider. 
(10) Copies of the prepaid contract and supple-
mental material, such as information on credit life 
insurance and transfer or exchange plans, shall be 
provided to the purchaser at the time of the preneed 
sale. 
(11) Copies of the prepaid contract and at-need 
documentation shall be provided to the person au-
thorized to make the final funeral arrangements at 
the time of death to ensure that the merchandise 
and services match those specified in the prepaid 
contract. A list of items substituted shall be in writ-
ing and included in the at-need documentation. 
(12) Copies of all prepaid contracts and at-need 
documentation shall be retained by the seller for a 
period of 1 year after performance of the contract. 
SEC. 212. CONSUMER DISCLOSURES IN PREPAID CON-
TRACTS. 
Not later than 1 year after the date of enactment 
of this Act, the Commission shall establish minimum
standards and requirements with respect to State man-
dated consumer disclosures in prepaid contracts for the 
purchase of funeral, cemetery, or crematory goods or serv-
ices, including—
(1) basic information identifying the seller, the 
purchaser, the entity that will provide the goods and 
services (if different from the seller), the prices of 
the goods and services being purchased on an 
itemized basis, and the total price of the purchase; 
(2) funding information disclosing where, how, 
and with whom the prepaid funds will be deposited 
and invested, and what portion of the prepaid funds, 
if any, will be paid to the seller prior to the perform-
ance of the contract; 
(3) price and payment disclosures regarding to 
what extent the prices of the goods and services are 
guaranteed or not guaranteed, who is responsible for 
any payment shortfalls, and who is entitled to re-
ceive excess funds; and 
(4) cancellation and transfer information dis-
closing whether the consumer may cancel or transfer 
the prepaid contract, the method for exercising such 
rights, the amount of revocation or transfer fees, if 
any, retained by the seller, and safeguards for the
consumer if the seller is unable to provide the goods 
and services in the contract. 
SEC. 213. PRIVATE RIGHT OF ACTION. 
In addition to the remedies identified in the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.), a person 
who is injured by a violation of this title may commence 
a civil action against the funeral provider. Such person 
shall be entitled to recover the greater of actual damages 
or $5,000 for each violation proved by a preponderance 
of the evidence. 
SEC. 214. ENFORCEMENT BY THE COMMISSION. 
The Commission shall enforce the provisions of this 
title in the manner provided in the Federal Trade Com-
mission Act for deceptive practices declared unlawful 
under section 5(a) of such Act (15 U.S.C. 45(a)). 
SEC. 215. ADMINISTRATION AND RULEMAKING. 
(a) ADMINISTRATION.—The provisions of this title 
shall be administered by the Commission. 
(b) RULEMAKING.—Notwithstanding any other provi-
sion of law, the Commission may prescribe rules in accord-
ance with section 553 of title 5, United States Code 
(commonly known as the ‘‘Administrative Procedure Act’’) 
to carry out the provisions of this title.
SEC. 216. STATE EXEMPTIONS. 
A provision of this title, or a regulation issued by the 
Commission pursuant to this title, shall not be in effect 
in a State if—
(1) the appropriate State agency requests such 
provision or regulation not be in effect in the State; 
(2) there is a State requirement in effect that 
applies to a transaction to which the provision or 
regulation applies; 
(3) the State requirement affords an overall 
level of protection to consumers that is equal to, or 
exceeds, the level of protection afforded by the provi-
sion or regulation; and 
(4) the Commission determines that the State 
is administering and enforcing the State require-
ment in a manner that affords a level of protection 
to consumers that is equal to or exceeds the level of 
protection afforded by the Commission’s enforce-
ment of such provisions or regulations. 
SEC. 217. DECLARATION OF INTENT. 
This title does not apply to the business, or acts in 
the conduct of the business, of insurance.
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