Bill Text: TX HB1731 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the payment for funeral services performed by a transferring funeral home under a purchase agreement for funeral services or merchandise.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB1731 Detail]
Download: Texas-2019-HB1731-Introduced.html
Bill Title: Relating to the payment for funeral services performed by a transferring funeral home under a purchase agreement for funeral services or merchandise.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB1731 Detail]
Download: Texas-2019-HB1731-Introduced.html
86R8042 SOS-D | ||
By: Davis of Dallas | H.B. No. 1731 |
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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; [ |
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(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) [ |
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items was included in the contract, prepare a reconciliation of | ||
proceeds applied to cash advance items; and | ||
(E) [ |
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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. |