HOUSE BILL 22-1228
BY REPRESENTATIVE(S) Roberts and Bockenfeld, Duran, Lindsay,
Lontine, Ricks, Snyder, Soper, Cutter, Herod, Kipp, McCluskie, Ortiz,
Valdez D.;
also SENATOR(S) Coram, Donovan, Gonzales.
C
ONCERNING THE CONTINUATION OF THE REGULATION OF PRENEED
FUNERAL CONTRACTS
, AND, IN CONNECTION THEREWITH ,
IMPLEMENTING THE RECOMMENDATIONS CONTAINED IN THE 2021
SUNSET REPORT BY THE DEPARTMENT OF REGULATORY AGENCIES
AND MAKING AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal
(23)(a)(X); and add (30)(a)(VII) as follows:
24-34-104. General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (23) (a) The following agencies, functions, or both,
are scheduled for repeal on September 1, 2022:
(X) The regulation of preneed funeral contracts in accordance with
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. article 15 of title 10;
(30) (a) The following agencies, functions, or both, are scheduled
for repeal on September 1, 2029:
(VII) T
HE REGULATION OF PRENEED FUNERAL CONTRACTS IN
ACCORDANCE WITH ARTICLE
15 OF TITLE 10.
SECTION 2. In Colorado Revised Statutes, amend 10-15-123 as
follows:
10-15-123. Repeal of article. This article 15 is repealed, effective
September 1, 2022
SEPTEMBER 1, 2029. Before its THE repeal, the
department of regulatory agencies shall review the regulation of preneed
funeral contracts in accordance with section 24-34-104.
SECTION 3. In Colorado Revised Statutes, 10-15-103, amend
(1)(a), (4)(a), and (5)(b) as follows:
10-15-103. License procedure - records - examination of records
- definition - rules. (1) (a) A contract seller shall not enter into a preneed
contract or accept any funds or other consideration without a license from
the commissioner. To be valid, an application for an initial license must be
in writing, signed by the applicant, and duly verified on forms furnished by
the commissioner. Each application must be accompanied by payment of
five hundred dollars and either:
PROOF OF EITHER THE NET WORTH OR
SURETY BOND REQUIREMENTS ESTABLISHED BY THE COMMISSIONER BY
RULE
.
(I) A current balance sheet, income statement, and statement of cash
flow to demonstrate that the business has a net worth of at least ten
thousand dollars, signed by a certified public accountant ("CPA"), or, if
prepared by the applicant or public accountant, accompanied by a current
tax return; or
(II) A surety bond of at least ten thousand dollars to honor preneed
contract obligations.
(4) (a) The commissioner may investigate the books, records, and
accounts of a contract seller to ensure that trust funds, preneed contracts,
PAGE 2-HOUSE BILL 22-1228 and preneed insurance policies comply with this article ARTICLE 15. The
commissioner, or a qualified person designated by the commissioner, may
examine the books, records, and accounts of the contract seller as often as
necessary upon receiving a complaint or indication of noncompliance
and
may require the attendance of and examine under oath all persons whose
testimony the commissioner needs for this purpose.
(5) (b) T
HE COMMISSIONER SHALL ESTABLISH the annual renewal fee
shall be based upon the aggregate preneed contract price of all preneed
contracts outstanding at the end of each calendar year. If the aggregate
preneed contract price is: BY RULE BASED ON THE COST OF REGULATING THE
INDUSTRY AND THE OUTSTANDING PRENEED CONTRACT OBLIGATIONS OF THE
CONTRACT SELLERS
.
(I) One hundred thousand dollars or less, the annual renewal fee
shall be one hundred dollars;
(II) Greater than one hundred thousand dollars but not exceeding
five hundred thousand dollars, the annual renewal fee shall be two hundred
dollars;
(III) Greater than five hundred thousand dollars but not exceeding
one million dollars, the annual renewal fee shall be five hundred dollars;
(IV) Greater than one million dollars but not exceeding five million
dollars, the annual renewal fee shall be one thousand dollars;
(V) Greater than five million dollars but not exceeding ten million
dollars, the annual renewal fee shall be one thousand five hundred dollars;
(VI) In excess of ten million dollars, the annual renewal fee shall be
two thousand dollars.
SECTION 4. In Colorado Revised Statutes, add 10-15-111.7 as
follows:
10-15-111.7. Disposition of unclaimed preneed funeral contracts
- unclaimed property trust fund. (1) N
OTWITHSTANDING THE FAILURE OF
A PRENEED CONTRACT FOR FUNERAL SERVICES BENEFICIARY
'S HEIRS,
ASSIGNS, OR DULY AUTHORIZED REPRESENTATIVE TO CANCEL A PRENEED
PAGE 3-HOUSE BILL 22-1228 CONTRACT FOR FUNERAL SERVICES WITHIN ONE HUNDRED SIXTY -EIGHT
HOURS AFTER THE DEATH OF THE PRENEED CONTRACT BENEFICIARY
, EACH
CONTRACT SELLER SHALL REQUIRE A TRUSTEE WITH WHOM PRENEED
CONTRACT FUNDS HAVE BEEN DEPOSITED FOR A PRENEED CONTRACT THAT
IS UNCLAIMED TO REPORT TO THE STATE TREASURER AS PROVIDED IN
SECTION
38-13-401. THE TRUSTEE SHALL COMPLY WITH THE REQUIREMENTS
OF THE
"REVISED UNIFORM UNCLAIMED PROPERTY ACT", ARTICLE 13 OF
TITLE
38, FOR DEPOSIT OF THE UNCLAIMED PRENEED CONTRACT FUNDS INTO
THE UNCLAIMED PROPERTY TRUST FUND CREATED IN SECTION
38-13-801
(1)(a).
(2) A
PRENEED CONTRACT FOR FUNERAL SERVICES IS UNCLAIMED AT
THE EARLIER OF THE FOLLOWING
:
(a) T
HREE YEARS AFTER THE DATE ON WHICH THE CONTRACT SELLER
HAS KNOWLEDGE OF THE DEATH OF THE PRENEED CONTRACT BENEFICIARY
,
OBTAINED THROUGH ANY SOURCE , INCLUDING A DECLARATION OF DEATH ,
A DEATH CERTIFICATE, A COMPARISON OF THE CONTRACT SELLER'S RECORDS
AGAINST THE
UNITED STATES SOCIAL SECURITY ADMINISTRATION 'S DEATH
MASTER FILE
, OR OTHER EQUIVALENT RESOURCE ;
(b) T
HE DATE THE PRENEED CONTRACT BENEFICIARY , IF LIVING,
WOULD HAVE ATTAINED ONE HUNDRED FIFTEEN YEARS OF AGE ; OR
(c) SIXTY-FIVE YEARS FROM THE DATE THAT THE PRENEED
CONTRACT WAS EXECUTED
.
(3) F
OR PURPOSES OF THIS SECTION, THE AMOUNT REPORTABLE FOR
AN UNCLAIMED PRENEED CONTRACT IS THE AMOUNT PAID BY THE
PURCHASER TO THE CONTRACT SELLER
, LESS SELLING COSTS NOT TO EXCEED
FIFTEEN PERCENT OF THE TOTAL PRENEED CONTRACT PRICE
, LIQUIDATED
DAMAGES
, AND CONTRACTUAL OFFSETS , AS AUTHORIZED BY LAW.
(4) S
UBSECTION (2)(a) OF THIS SECTION DOES NOT REQUIRE A
CONTRACT SELLER TO COMPARE THE CONTRACT SELLER
'S RECORDS TO THE
UNITED STATES SOCIAL SECURITY ADMINISTRATION 'S DEATH MASTER FILE.
SECTION 5. In Colorado Revised Statutes, 12-135-110, amend
(2)(b) as follows:
PAGE 4-HOUSE BILL 22-1228 12-135-110. Registration required. (2) (b) Each funeral
establishment registration shall be renewed, according to a schedule
established by the director in accordance with section 12-20-202 (1), in a
form as determined by the director. A
T THE TIME OF RENEWAL , EACH
FUNERAL ESTABLISHMENT SHALL ATTEST TO WHETHER THE FUNERAL
ESTABLISHMENT SELLS PRENEED CONTRACTS
. THE DIRECTOR SHALL ENTER
INTO A MEMORANDUM OF UNDERSTANDING WITH THE COMMISSIONER OF
INSURANCE TO SHARE INFORMATION REGARDING FUNERAL ESTABLISHMENTS
THAT SELL PRENEED CONTRACTS
.
SECTION 6. Appropriation. (1) For the 2022-23 state fiscal year,
$81,958 is appropriated to the department of regulatory agencies for use by
the division of insurance. This appropriation is from the division of
insurance cash fund created in section 10-1-103 (3), C.R.S. To implement
this act, the division may use this appropriation as follows:
(a) $74,543 for personal services, which amount is based on an
assumption that the division will require an additional 0.9 FTE; and
(b) $7,415 for operating expenses.
SECTION 7. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 5-HOUSE BILL 22-1228 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 6-HOUSE BILL 22-1228