BILL ANALYSIS H.B. 1094 By: Lambert Pensions, Investments & Financial Services Committee Report (Unamended) BACKGROUND AND PURPOSE The author has informed the committee that state law regarding prepaid funeral services does not provide sufficient oversight regarding transportation protection agreements, which provide for the transportation of a body from the place of death to a licensed holding facility or to a licensed crematory. These agreements can be offered by a third-party vendor, which typically falls outside of a prepaid funeral service benefit or plan. H.B. 1094 seeks to address this issue by establishing that these agreements are not regulated under the Finance Code as a prepaid funeral benefit and do not constitute the business of insurance in Texas. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1094 amends the Finance Code to specify that the terms "prepaid funeral benefits" and "funeral service" or "service" do not include a transportation protection agreement or a service provided under a transportation protection agreement, respectively, for purposes of statutory provisions relating to prepaid funeral services. The bill defines "transportation protection agreement" as an agreement that primarily provides for the coordination and arrangement of all professional services related to the preparation for purposes of transportation and subsequent transportation of a deceased human body. H.B. 1094 amends the Insurance Code to establish that a transportation protection agreement sold by a seller does not constitute the business of insurance in Texas and is otherwise exempt from the requirements of the Insurance Code. The bill defines "seller" by reference to Finance Code provisions relating to prepaid funeral services. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 1094
By: Lambert
Pensions, Investments & Financial Services
Committee Report (Unamended)
H.B. 1094
By: Lambert
Pensions, Investments & Financial Services
Committee Report (Unamended)
BACKGROUND AND PURPOSE The author has informed the committee that state law regarding prepaid funeral services does not provide sufficient oversight regarding transportation protection agreements, which provide for the transportation of a body from the place of death to a licensed holding facility or to a licensed crematory. These agreements can be offered by a third-party vendor, which typically falls outside of a prepaid funeral service benefit or plan. H.B. 1094 seeks to address this issue by establishing that these agreements are not regulated under the Finance Code as a prepaid funeral benefit and do not constitute the business of insurance in Texas.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 1094 amends the Finance Code to specify that the terms "prepaid funeral benefits" and "funeral service" or "service" do not include a transportation protection agreement or a service provided under a transportation protection agreement, respectively, for purposes of statutory provisions relating to prepaid funeral services. The bill defines "transportation protection agreement" as an agreement that primarily provides for the coordination and arrangement of all professional services related to the preparation for purposes of transportation and subsequent transportation of a deceased human body. H.B. 1094 amends the Insurance Code to establish that a transportation protection agreement sold by a seller does not constitute the business of insurance in Texas and is otherwise exempt from the requirements of the Insurance Code. The bill defines "seller" by reference to Finance Code provisions relating to prepaid funeral services.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
The author has informed the committee that state law regarding prepaid funeral services does not provide sufficient oversight regarding transportation protection agreements, which provide for the transportation of a body from the place of death to a licensed holding facility or to a licensed crematory. These agreements can be offered by a third-party vendor, which typically falls outside of a prepaid funeral service benefit or plan. H.B. 1094 seeks to address this issue by establishing that these agreements are not regulated under the Finance Code as a prepaid funeral benefit and do not constitute the business of insurance in Texas.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1094 amends the Finance Code to specify that the terms "prepaid funeral benefits" and "funeral service" or "service" do not include a transportation protection agreement or a service provided under a transportation protection agreement, respectively, for purposes of statutory provisions relating to prepaid funeral services. The bill defines "transportation protection agreement" as an agreement that primarily provides for the coordination and arrangement of all professional services related to the preparation for purposes of transportation and subsequent transportation of a deceased human body.
H.B. 1094 amends the Insurance Code to establish that a transportation protection agreement sold by a seller does not constitute the business of insurance in Texas and is otherwise exempt from the requirements of the Insurance Code. The bill defines "seller" by reference to Finance Code provisions relating to prepaid funeral services.
EFFECTIVE DATE
September 1, 2025.