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House creates compensation account and working group after prepaid‑funeral frauds
Summary
Legislation establishing a Funeral Services Compensation Account and a working group to study prepaid contracts and consumer protections passed the House after bipartisan support; bill aims to reimburse victims of fraudulent prepaid funeral contracts and to design stronger oversight.
In response to a spate of cases in which prepaid funeral funds were misappropriated, the House passed HB 5381 to create a non‑lapsing Funeral Services Compensation Account administered by the Department of Consumer Protection. Representative Perez, a sponsor, said the fund will help reimburse consumers who lost prepaid monies and that the bill establishes a working group to recommend stronger oversight and a possible guarantee fund for future protections.
Representative Nuccio and other members described instances in their districts where elderly consumers and families lost life‑savings designated for funerals. The adopted amendment creates a working group to study prepaid contract structures, cremation and consumer protections, and to design the guarantee fund and disbursement rules. Lawmakers said the measure will start with an initial appropriation and route implementation through DCP; the bill passed the House with bipartisan backing.
