Louisiana Senate Bill SB169

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/20/10
• Engrossed: 4/26/10
• Refer: 4/27/10
• Report Pass: 5/4/10
• Enrolled: 5/17/10
• Chaptered: 5/26/10
• Passed: 5/26/10

Caption

Provides that the principal of merchandise trust funds are exempt from seizure.

Impact

By codifying this exemption into law, SB169 seeks to enhance consumer confidence in the funeral industry and ensure that families' financial investments in cemetery merchandise are secure from potential creditor claims. This is particularly crucial in situations where beneficiaries may face financial difficulties or bankruptcy, as it prevents creditors from liquidating these trust fund assets. Ultimately, this legislation could shape how funeral services are financed and managed in the state of Louisiana, reinforcing the importance of ethical practices in the industry.

Summary

Senate Bill 169 (SB169) aims to provide greater protection for funeral merchandise trust fund assets by exempting them from any form of seizure by creditors. The bill specifically enacts a new provision in the Louisiana Revised Statutes (R.S. 8:502.3), which states that both the principal and any income generated by the trust fund shall not be subject to seizure, embodying a significant step towards safeguarding the financial resources allocated for cemetery merchandise and services.

Sentiment

The sentiment surrounding SB169 appears to be generally positive among stakeholders in the funeral services sector, including cemetery authorities and manufacturers of funeral merchandise. Supporters argue that the bill is a necessary measure that upholds the dignity and peace of mind of families during a vulnerable time, while also fostering a more stable financial environment for service providers. However, there may be concerns from some financial or legal sectors regarding the implications of such exemptions on creditor rights.

Contention

While SB169 has garnered support, potential points of contention revolve around the balance between consumer protection and the rights of creditors. Opponents may argue that granting such exemptions could lead to abuse or undermine the ability of creditors to collect debts legitimately owed to them. Discussions and debates on this bill may highlight varying perspectives on financial responsibility, consumer protection, and the implications for creditors in the state of Louisiana.