Tennessee House Bill HB2173

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/31/24
• Refer: 3/19/24
• Refer: 4/2/24
• Refer: 4/17/24
• Chaptered: 5/13/24
• Passed: 5/13/24

Caption

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

Impact

The amendments proposed in HB 2173 include adjusting administrative fees tied to the pre-need funeral registration process. If the account balance drops below a threshold of $2 million, the administrative fee increases to $20, which would affect those seeking to renew their pre-need registrations. Conversely, should the balance exceed $2.5 million, the fee reverts to $10. This dynamic could incentivize effective management of the funds and ensure that the pre-need system remains viable for consumers, potentially impacting overall funeral costs in the state.

Summary

House Bill 2173 aims to amend Tennessee Code Annotated, Section 62-5-414, specifically addressing regulations related to funerals. The bill establishes a pre-need funeral state administrative fund, known as the 'pre-need funeral account'. The funds within this account are mandated for use exclusively concerning the pre-need registration program and funding necessary receivership actions against pre-need sellers. This is intended to secure consumer interests in pre-arranged funeral plans, ensuring the availability of funds when needed.

Sentiment

Overall sentiment around HB 2173 appears to be supportive, particularly from stakeholders concerned with consumer protection rights in the funeral services industry. The establishment of a dedicated fund and the structured fee adjustments resonate positively with proponents who value financial accountability and transparency. However, some concerns remain regarding the implications of increased fees on consumers, particularly those with lower income levels who might be disproportionately affected by fee changes.

Contention

While the bill garners broad support, there are notable points of contention regarding the potential financial burden on consumers from higher fees. Stakeholders have raised questions about how these administrative fees—and their variations based on the fund's balance—might affect accessibility to pre-need services for vulnerable populations. Additionally, the effectiveness of the pre-need registration program in ensuring that funds are available when required remains a critical point of debate surrounding the bill.