Tennessee Senate Bill SB2578

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Engrossed: 4/17/24
• Enrolled: 4/25/24
• Passed: 5/9/24
• Chaptered: 5/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Section 62-5-414, relative to funerals.

Impact

If passed, the bill would shift how funds related to pre-need funeral services are managed in Tennessee. By creating specific guidelines concerning the administrative fees and maintaining a minimum balance within the pre-need funeral account, SB2578 aims to ensure that funds are adequately available for the regulation of pre-need registration programs. This could lead to improved oversight and accountability in the funeral industry, benefiting consumers by ensuring that pre-need contracts are reliably supported by financially stable entities.

Summary

Senate Bill 2578 aims to amend Tennessee Code Annotated, specifically Section 62-5-414, with a focus on the regulation of pre-need funerals. The bill establishes a pre-need funeral state administrative fund, known as the 'pre-need funeral account,' into which funds from registered pre-need sellers must be deposited. This account will serve purposes related to the pre-need registration program and receivership actions taken against those sellers. Additionally, the bill includes provisions for administrative fees based on the balance of the pre-need funeral account, further affecting financial transactions related to funeral services in the state.

Sentiment

The sentiment surrounding SB2578 appears generally supportive within legislative discussions, as it is perceived as a necessary step towards modernizing and ensuring the stability of regulations governing funerals in Tennessee. Supporters argue that it will enhance consumer protections in pre-need funeral contracts by providing a dedicated fund specifically for that purpose. However, there may be concerns expressed by particular stakeholders within the funeral industry regarding the financial implications of the increased administrative fees and requirements imposed by the bill.

Contention

Notable points of contention associated with SB2578 involve the balance between ensuring consumer protection and managing operational costs for funeral service providers. Some may contend that increasing fees could have financial implications for consumers purchasing pre-need funeral arrangements, potentially making them less accessible. Additionally, the bill’s provision that absolves the commissioner and the department of liability could provoke discussions regarding the accountability of regulatory actions and their impact on the funeral services sector.