Texas Senate Bill SB297

Texas 2013 - 83rd Regular

Caption

Relating to prepaid funeral benefits contracts.

Impact

The implications of SB297 extend to the financial regulation of businesses dealing in prepaid funeral contracts. It establishes stricter rules regarding the transfer of ownership and the operational requirements for sellers, reinforcing the importance of compliance with state regulations. The bill seeks to address potential abuses in the industry by mandating higher transparency and accountability through its reporting requirements and permit renewal processes. Consequently, consumers may benefit from stronger safeguards when engaging in prepaid funeral contracts, which are often significant financial commitments.

Summary

SB297 is a legislative act that focuses on the regulation of prepaid funeral benefits contracts in Texas. The bill amends existing provisions in the Finance Code to ensure better oversight and regulation of businesses involved in prepaid funeral services. Key aspects include the requirement for sellers to notify the commissioner of any transfer of business ownership and to renew their permits based on their compliance status. This aims to enhance consumer protection by ensuring that sellers of these contracts maintain the necessary qualifications and adhere to regulatory standards.

Contention

Discussion around SB297 has highlighted points of contention primarily concerning the balance between consumer protection and business operational flexibility. Supporters argue that the rigorous oversight is necessary to protect consumers from potential fraud or mismanagement of funds by funeral service providers. However, some industry members feel that the increased regulatory burden may complicate the operational landscape, particularly for smaller businesses striving to comply with a suite of stringent requirements. Hence, the bill's enforcement of compliance with ownership transfers and permit renewals aims to address these concerns while maintaining industry standards.