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House Bill 1026


House Bill 1026

ARCHIVE (2008)

Latest Information

 

DIGEST OF HB1026 (Updated March 4, 2008 1:58 pm - DI 84)


Funerals and cemeteries. Requires the owner of a cemetery to pay to a perpetual care fund or an endowment care fund any amount necessary to maintain the principal in the fund. Provides that a person who: (1) sells or otherwise furnishes a vault that will be used to encase the remains of a deceased individual and that is not airtight and watertight to another person; and (2) does not inform the other person in writing that the vault is not airtight and watertight before the person sells or otherwise furnishes the vault to the other person; commits a Class B infraction. Provides that a person who knowingly or intentionally disburses funds in a funeral trust for purposes other than the intended purposes of the trust commits a Class C felony. Provides that a trustee that disburses funds in a funeral trust without verifying the death of the person for whose funeral or burial the funds were paid commits a Class A infraction. Requires the state board of funeral and cemetery service to adopt rules specifying the types of documentation that may be used to verify certain events have occurred before funds may be disbursed from certain funeral trusts and escrow accounts. Provides that the seller of a funeral trust established after June 30, 2008, may not be an affiliate, a parent, or a subsidiary organization of the trustee of the funeral trust. Specifies that a trust for a benevolent public purpose includes a perpetual care fund or endowment care fund, a prepaid funeral plan or funeral trust, and a trust or an escrow account created from payments of funeral, burial services, or merchandise in advance of need. Specifies the actions the attorney general may take against a trustee of a benevolent trust, a prepaid funeral trust or escrow account, a cemetery owner, a funeral home, and certain other persons for committing a breach of trust, violating the mandate of a charitable trust, or failing to comply with a requirement or prohibition set forth in certain laws concerning cemeteries and trusts. Requires the probate code study commission to study and make findings and recommendations concerning certain issues related to cemetery perpetual care trusts and preneed funeral trusts. Makes other changes and conforming amendments.
Current Status:
 Law Enacted
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