|
|
|
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. |