86R8042 SOS-D
By: Davis of Dallas H.B. No. 1731
A BILL TO BE ENTITLED
AN ACT
relating to the payment for funeral services performed by a
transferring funeral home under a prepaid funeral contract or a
purchase agreement for funeral services or merchandise.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 154.151(b), Finance Code, is amended to
read as follows:
(b) A sales contract for prepaid funeral benefits must:
(1) be in writing;
(2) state the name of the funeral provider or other
person primarily responsible for providing the prepaid funeral
benefits specified in the contract; [and]
(3) state the details of the prepaid funeral benefits
to be provided, including a description and specifications of the
material used in the caskets or grave vaults to be furnished; and
(4) state that if the funeral provider receives a dead
human body transferred from another funeral provider, the funeral
provider shall remit to the transferring funeral provider the cost
of the services provided by the transferring funeral provider and
may not charge that cost to or collect that cost from the purchaser
of the contract or any other party.
SECTION 2. Section 154.161(a), Finance Code, is amended to
read as follows:
(a) The funeral provider under a prepaid funeral benefits
contract subject to this chapter shall:
(1) in compliance with applicable law, protect any
nonpublic personal financial and health information of the
purchaser and contract beneficiary in the possession of the funeral
provider;
(2) after the death of the contract beneficiary:
(A) deliver the contracted funeral merchandise
and services and cash advance items required under the contract,
subject to Section 154.1551;
(B) if the funeral provider receives a dead human
body transferred from another funeral provider, remit to the
transferring funeral provider the cost of the services provided by
the transferring funeral provider and may not charge the cost to or
collect the cost from the purchaser of the contract or any other
party;
(C) prepare a written pre-need to at-need
reconciliation to verify that the specified goods and services are
delivered or performed for the agreed price and promptly refund any
contract overcharges that may be revealed by the reconciliation;
(D) [(C)] if advance payment of cash advance
items was included in the contract, prepare a reconciliation of
proceeds applied to cash advance items; and
(E) [(D)] retain a copy of each reconciliation
until the third anniversary of the date of service; and
(3) with respect to each prepaid funeral benefits
contract for which the funeral provider is not also the seller:
(A) sign the reconciliations required by
Subdivision (2);
(B) promptly deliver the records that verify
contract performance to the seller, including the final at-need
contract, the certificate of performance, and the reconciliations
required under Subdivision (2);
(C) if requested by the seller, correct or
explain any discrepancy in a reconciliation required under
Subdivision (2);
(D) subject to Subsection (d), provide copies of
any other records or documentation related to the offer, sale, and
performance of the contract that are reasonably requested by the
seller or the department, including records related to any refund
required by Section 154.1511 or 154.1551; and
(E) inform each seller with which the funeral
provider has an outstanding contract of any closure of the
provider's funeral establishments not later than the 15th day after
the date of closure.
SECTION 3. Section 651.406, Occupations Code, is amended by
adding Subsection (e) to read as follows:
(e) A funeral establishment that receives a dead human body
transferred from another funeral establishment shall include in the
purchase agreement any amount owed by the customer to the
transferring funeral establishment. The recipient funeral
establishment shall remit to the transferring funeral
establishment any amount collected on behalf of the transferring
funeral establishment.
SECTION 4. Sections 154.151(b) and 154.161(a), Finance
Code, as amended by this Act, and Section 651.406(e), Occupations
Code, as added by this Act, apply only to a sales contract or
purchase agreement entered into or renewed on or after the
effective date of this Act. A sales contract or purchase agreement
entered into or renewed before the effective date of this Act is
governed by the law in effect immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2019.