H.B. 437

This document includes Senate Committee Amendments incorporated into the bill on Wed, Feb 27, 2008 at 2:58 PM by rday. --> 1

FUNERAL SERVICES LICENSING ACT
2 AMENDMENTS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Stephen H. Urquhart
6 Senate Sponsor: Jon J. Greiner
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions of the Funeral Services Licensing Act related to the
11 cremation and disposition of cremated human remains and the distribution of preneed
12 funeral arrangement funds.
13 Highlighted Provisions:
14 This bill:
15 . provides definitions pertaining to the cremation and disposition of cremated human
16 remains;
17 . provides an authorization process for a funeral service establishment to cremate
18 human remains, including the required content of a cremation authorization form;
19 . provides a criminal penalty for individuals who remove valuables from human
20 remains without authorized permission;
21 . provides for record keeping by a funeral service establishment of the contacts
22 between the establishment and persons who deliver and receive the human remains
23 of persons cremated at the establishment's crematory;
24 . provides guidelines regarding the use and acceptance of cremation containers;
25 . provides for cremation procedures to be followed by a funeral service
26 establishment, including the required receipt or proof of a death certificate, the
27 removal of a pacemaker or other battery powered implant from the human remains

28 prior to cremation, verification of the identification of the human remains, and return of the
29 cremated remains to an authorizing agent or the agent's designee;
30 . provides for the final disposition of cremated remains and limitation of liability on
31 the part of a funeral service establishment; and
32 . modifies requirements regarding the distribution of preneed funeral arrangement
33 funds by a funeral service establishment.
34 Monies Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 58-9-102, as last amended by Laws of Utah 2007, Chapter 144
41 58-9-705, as enacted by Laws of Utah 2003, Chapter 49
42 ENACTS:
43 58-9-607, Utah Code Annotated 1953
44 58-9-608, Utah Code Annotated 1953
45 58-9-609, Utah Code Annotated 1953
46 58-9-610, Utah Code Annotated 1953
47 58-9-611, Utah Code Annotated 1953
48 58-9-612, Utah Code Annotated 1953
49
50 Be it enacted by the Legislature of the state of Utah:
51 Section 1. Section 58-9-102 is amended to read:
52 58-9-102. Definitions.
53 In addition to the definitions in Section 58-1-102 , as used in this chapter:
54 (1) "Authorizing agent" means a person legally entitled to authorize the cremation of
55 human remains.
56 [(1)] (2) "Beneficiary" means the individual who, at the time of the beneficiary's death,
57 is to receive the benefit of the property and services purchased under a preneed funeral
58 arrangement.

59 [(2)] (3) "Board" means the Board of Funeral Service created in Section 58-9-201 .
60 (4) "Body part" means:
61 (a) a limb or other portion of the anatomy that is removed from a person or human
62 remains for medical purposes during treatment, surgery, biopsy, autopsy, or medical research;
63 or
64 (b) a human body or any portion of a body that has been donated to science for medical
65 research purposes.
66 [(3)] (5) "Buyer" means a person who purchases a preneed funeral arrangement.
67 [(4)] (6) "Calcination" means a process in which a dead human body is reduced by
68 intense heat to a residue that is not as substantive as the residue that follows cremation.
69 (7) "Cremated remains" means all the remains of a cremated body recovered after the
70 completion of the cremation process, including pulverization which leaves only bone fragments
71 reduced to unidentifiable dimensions and may possibly include the residue of foreign matter
72 including casket material, bridgework, or eyeglasses that were cremated with the human
73 remains.
74 [(5)] (8) "Cremation" means the [reduction of a dead human body by direct flame to
75 residue that includes bone fragments.] technical process, using direct flame and heat, that
76 reduces human remains to bone fragments through heat and evaporation and includes the
77 processing and usually the pulverization of the bone fragments.
78 (9) "Cremation chamber" means the enclosed space within which the cremation
79 process takes place and which is used exclusively for the cremation of human remains.
80 (10) "Cremation container" means the container:
81 (a) in which the human remains are transported to the crematory and placed in the
82 cremation chamber for cremation; and
83 (b) that meets substantially all of the following standards:
84 (i) composed of readily combustible materials suitable for cremation;
85 (ii) able to be closed in order to provide a complete covering for the human remains;
86 (iii) resistant to leakage or spillage;
87 (iv) rigid enough for handling with ease; and
88 (v) able to provide protection for the health, safety, and personal integrity of crematory
89 personnel.

90 (11) "Crematory" means the building or portion of a building that houses the cremation
91 chamber and the holding facility.
92 [(6)] (12) "Direct disposition" means the disposition of a dead human body:
93 (a) as quickly as law allows;
94 (b) without preparation of the body by embalming; and
95 (c) without an attendant funeral service or graveside service.
96 [(7)] (13) "Disposition" means the final disposal of a dead human body by:
97 (a) earth interment;
98 (b) above ground burial;
99 (c) cremation;
100 (d) calcination;
101 (e) burial at sea;
102 (f) delivery to a medical institution; or
103 (g) other lawful means.
104 [(8)] (14) "Embalming" means replacing body fluids in a dead human body with
105 preserving and disinfecting chemicals.
106 [(9)] (15) (a) "Funeral merchandise" means any of the following into which a dead
107 human body is placed in connection with the transportation or disposition of the body:
108 (i) a vault;
109 (ii) a casket; or
110 (iii) other personal property.
111 (b) "Funeral merchandise" does not include:
112 (i) a mausoleum crypt;
113 (ii) an interment receptacle preset in a cemetery; or
114 (iii) a columbarium niche.
115 [(10)] (16) "Funeral service" means a service, rite, or ceremony performed:
116 (a) with respect to the death of a human; and
117 (b) with the body of the deceased present.
118 [(11)] (17) "Funeral service director" means an individual licensed under this chapter
119 who may engage in all lawful professional activities regulated and defined under the practice of
120 funeral service.

121 [(12)] (18) (a) "Funeral service establishment" means a place of business at a specific
122 street address or location licensed under this chapter that is devoted to:
123 (i) the embalming, care, custody, shelter, preparation for burial, and final disposition of
124 dead human bodies; and
125 (ii) the furnishing of services, merchandise, and products purchased from the
126 establishment as a preneed provider under a preneed funeral arrangement.
127 (b) "Funeral service establishment" includes:
128 (i) all portions of the business premises and all tools, instruments, and supplies used in
129 the preparation and embalming of dead human bodies for burial, cremation, and final
130 disposition as defined by division rule; and
131 (ii) a facility used by the business in which funeral services may be conducted.
132 [(13)] (19) "Funeral service intern" means an individual licensed under this chapter
133 who is permitted to:
134 (a) assist a funeral service director in the embalming or other preparation of a dead
135 human body for disposition;
136 (b) assist a funeral service director in the cremation, calcination, or pulverization of a
137 dead human body or its remains; and
138 (c) perform other funeral service activities under the supervision of a funeral service
139 director.
140 [(14)] (20) "Graveside service" means a funeral service held at the location of
141 disposition.
142 [(15)] (21) "Memorial service" means a service, rite, or ceremony performed:
143 (a) with respect to the death of a human; and
144 (b) without the body of the deceased present.
145 [(16)] (22) "Practice of funeral service" means:
146 (a) supervising the receipt of custody and transportation of a dead human body to
147 prepare the body for:
148 (i) disposition; or
149 (ii) shipment to another location;
150 (b) entering into a contract with a person to provide professional services regulated
151 under this chapter;

152 (c) embalming or otherwise preparing a dead human body for disposition;
153 (d) supervising the arrangement or conduct of:
154 (i) a funeral service;
155 (ii) a graveside service; or
156 (iii) a memorial service;
157 (e) cremation, calcination, or pulverization of a dead human body or the body's
158 remains;
159 (f) supervising the arrangement of:
160 (i) a disposition; or
161 (ii) a direct disposition;
162 (g) facilitating:
163 (i) a disposition; or
164 (ii) a direct disposition;
165 (h) supervising the sale of funeral merchandise by a funeral establishment;
166 (i) managing or otherwise being responsible for the practice of funeral service in a
167 licensed funeral service establishment;
168 (j) supervising the sale of a preneed funeral arrangement; and
169 (k) contracting with or employing individuals to sell a preneed funeral arrangement.
170 [(17)] (23) (a) "Preneed funeral arrangement" means a written or oral agreement sold in
171 advance of the death of the beneficiary under which a person agrees with a buyer to provide at
172 the death of the beneficiary any of the following as are typically provided in connection with a
173 disposition:
174 (i) goods;
175 (ii) services, including:
176 (A) embalming services; and
177 (B) funeral directing services;
178 (iii) real property; or
179 (iv) personal property, including:
180 (A) a casket;
181 (B) another primary container;
182 (C) a cremation or transportation container;

183 (D) an outer burial container;
184 (E) a vault;
185 (F) a grave liner;
186 (G) funeral clothing and accessories;
187 (H) a monument;
188 (I) a grave marker; and
189 (J) a cremation urn.
190 (b) "Preneed funeral arrangement" does not include a policy or product of life
191 insurance providing a death benefit cash payment upon the death of the beneficiary which is
192 not limited to providing the products or services described in Subsection [(17)] (23)(a).
193 (24) "Processing" means the reduction of identifiable bone fragments after the
194 completion of the cremation process to unidentifiable bone fragments by manual means.
195 [(18)] (25) "Pulverization" means [a grinding process that reduces the residue of a
196 cremation or calcination into a powdery substance] the reduction of identifiable bone fragments
197 after the completion of the cremation and processing to granulated particles by manual or
198 mechanical means.
199 [(19)] (26) "Sales agent" means an individual licensed under this chapter as a preneed
200 funeral arrangement sales agent.
201 (27) "Temporary container" means a receptacle for cremated remains usually made of
202 cardboard, plastic, or similar material designed to hold the cremated remains until an urn or
203 other permanent container is acquired.
204 [(20)] (28) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-9-501 .
205 [(21)] (29) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-9-502 .
206 (30) "Urn" means a receptacle designed to permanently encase the cremated remains.
207 Section 2. Section 58-9-607 is enacted to read:
208 58-9-607. Authorization to cremate.
209 (1) Except as otherwise provided in this section, a funeral service establishment may
210 not cremate human remains until it has received:
211 (a) a cremation authorization form signed by an authorizing agent;
212 (b) a completed and executed burial transit permit or similar document, as provided by
213 state law, indicating that human remains are to be cremated; and

214 (c) any other documentation required by the state, county, or municipality.
215 (2) (a) The cremation authorization form shall contain, at a minimum, the following
216 information:
217 (i) the identity of the human remains and the time and date of death, including a signed
218 declaration of visual identification of the deceased or refusal to visually identify the deceased;
219 (ii) the name of the funeral director and funeral service establishment that obtained the
220 cremation authorization;
221 (iii) notification as to whether the death occurred from a disease declared by the
222 department of health to be infectious, contagious, communicable, or dangerous to the public
223 health;
224 (iv) the name of the authorizing agent and the relationship between the authorizing
225 agent and the decedent;
226 (v) a representation that the authorizing agent has the right to authorize the cremation
227 of the decedent and that the authorizing agent is not aware of any living person with a superior
228 or equal priority right to that of the authorizing agent, except that if there is another living
229 person with a superior or equal priority right, the form shall contain a representation that the
230 authorizing agent has:
231 (A) made reasonable efforts to contact that person;
232 (B) been unable to do so; and
233 (C) no reason to believe that the person would object to the cremation of the decedent;
234 (vi) authorization for the funeral service establishment to cremate the human remains;
235 (vii) a representation that the human remains do not contain a pacemaker or other
236 material or implant that may be potentially hazardous or cause damage to the cremation
237 chamber or the person performing the cremation;
238 (viii) the name of the person authorized to receive the cremated remains from the
239 funeral service establishment;
240 (ix) the manner in which the final disposition of the cremated remains is to take place,
241 if known;
242 (x) a listing of each item of value to be delivered to the funeral service establishment
243 along with the human remains, and instructions as to how each item should be handled;
244 (xi) the signature of the authorizing agent, attesting to the accuracy of all

245 representations contained on the authorization form;
246 (xii) if the cremation authorization form is being executed on a preneed basis, the form
247 shall contain the disclosure required for preneed programs under this chapter; and
248 (xiii) except for a preneed cremation authorization, the signature of the funeral director
249 of the funeral service establishment that obtained the cremation authorization.
250 (b) (i) The individual referred to in Subsection (2)(a)(xiii) shall execute the funeral
251 authorization form as a witness and is not responsible for any of the representations made by
252 the authorizing agent.
253 (ii) The funeral director or the funeral service establishment shall warrant to the
254 crematory that the human remains delivered to the funeral service establishment have been
255 positively identified as the decedent listed on the cremation authorization form by the
256 authorizing agent or a designated representative of the authorizing agent.
257 (iii) The authorizing agent or the agent's designee may make the identification referred
258 to Subsection (2)(b)(ii) in person or by photograph.
259 (3) (a) A funeral service establishment may not accept unidentified human remains for
260 cremation.
261 (b) If a funeral service establishment takes custody of a cremation container subsequent
262 to the human remains being placed within the container, it can rely on the identification made
263 before the remains were placed in the container.
264 (c) The funeral service establishment shall place appropriate identification on the
265 exterior of the cremation container based on the prior identification.
266 (4) (a) A person who removes or possesses dental gold or silver, jewelry, or mementos
267 from human remains S. :
267a (i) with purpose to deprive another over control of the property is guilty of an offense
267b and subject to the punishments provided in Section 76-6-412;
267c (ii) with purpose to exercise unauthorized control and with intent to temporarily
267d deprive another of control over the property is guilty of an offense and subject to the
267e punishments provided in Section 76-6-404.5; and
267f (iii) under circumstances not amounting to Subsection (4)(a)(i) or (ii) and .S without
267g specific written permission of the individual who has the right to
268 control those remains is guilty of a class B misdemeanor.
269 (b) The fact that residue or any unavoidable dental gold or dental silver or other
270 precious metals remain in a cremation chamber or other equipment or a container used in a
271 prior cremation is not a violation of Subsection (4)(a).
272 Section 3. Section 58-9-608 is enacted to read:
273 58-9-608. Record keeping.
274 (1) (a) A funeral service establishment shall furnish to the person who delivers human
275 remains to the establishment for cremation a receipt signed by a representative of the

276 establishment and the person making the delivery, showing:
277 (i) the date and time of the delivery;
278 (ii) the type of casket or alternative container delivered;
279 (iii) the name of the person from whom the human remains were received;
280 (iv) the name of the funeral establishment or other entity with whom the person making
281 the delivery is affiliated;
282 (v) the name of the person who received the human remains on behalf of the funeral
283 service establishment; and
284 (vi) the name of the decedent.
285 (b) The funeral service establishment shall keep a copy of the receipt in its permanent
286 records for a period of seven years.
287 (2) (a) Upon release of cremated remains, a funeral service establishment shall furnish
288 to the person who receives the cremated remains a receipt signed by a representative of the
289 funeral service establishment and the person who receives the remains, showing:
290 (i) the date and time of the release;
291 (ii) the name of the person to whom the cremated remains were released; and
292 (iii) if applicable:
293 (A) the name of the funeral establishment, cemetery, or other entity with whom the
294 person receiving the cremated remains is affiliated;
295 (B) the name of the person who released the cremated remains on behalf of the funeral
296 service establishment; and
297 (C) the name of the decedent.
298 (b) (i) The receipt shall contain a representation from the person receiving the cremated
299 remains confirming that the remains will not be used for any improper purpose.
300 (ii) Upon release of the cremated remains, the person to whom the remains were
301 released may transport them in any manner in the state, without a permit, and dispose of them
302 in accordance with this chapter.
303 (c) The funeral service establishment shall retain a copy of the receipt in its permanent
304 records for a period of seven years.
305 (3) (a) The funeral service establishment shall maintain at its place of business a
306 permanent record of each cremation that took place at its crematory.

307 (b) The permanent record shall contain:
308 (i) the name of the decedent;
309 (ii) the date of cremation;
310 (iii) the final disposition of the cremated remains; and
311 (iv) any other document required by this chapter.
312 Section 4. Section 58-9-609 is enacted to read:
313 58-9-609. Cremation containers.
314 (1) (a) Except as provided in Subsection (2), a funeral service establishment may not
315 make or enforce a rule requiring that human remains be:
316 (i) placed in a casket before cremation; or
317 (ii) cremated in a casket.
318 (b) A funeral service establishment may not refuse to accept human remains for
319 cremation because they are not in a casket.
320 (2) (a) Human remains must be delivered to a crematory in a casket or cremation
321 container.
322 (b) Human remains may not be removed from a casket or cremation container once
323 delivered to the crematory, and the casket or cremation container shall be cremated with the
324 human remains, unless:
325 (i) the funeral service establishment has been provided with written instructions to the
326 contrary by the authorizing agent; or
327 (ii) the funeral service establishment does not accept metal caskets for cremation.
328 Section 5. Section 58-9-610 is enacted to read:
329 58-9-610. Cremation procedures.
330 (1) A funeral service establishment may not cremate human remains until a death
331 certificate is completed and filed with the office of vital statistics and the county health
332 department as indicated on the regular medical certificate of death or the coroner's certificate.
333 (2) (a) A funeral service establishment may not cremate human remains with a
334 pacemaker or other battery powered potentially hazardous implant in place.
335 (b) (i) An authorizing agent for the cremation of human remains is responsible for
336 informing the funeral service establishment in writing on the cremation authorization form
337 about the presence of a pacemaker or other battery powered potentially hazardous implant in

338 the human remains to be cremated.
339 (ii) (A) The authorizing agent is ultimately responsible to ensure that a pacemaker or
340 other implant is removed prior to cremation.
341 (B) If the authorizing agent informs the funeral service establishment of the presence of
342 a pacemaker or other battery powered implant under Subsection (2)(b)(i) and the funeral
343 service establishment fails to have it removed prior to cremation, then the funeral service
344 establishment and the authorizing agent are jointly liable for all resulting damages.
345 (3) Only authorized persons are permitted in the crematory while human remains are in
346 the crematory area awaiting cremation, being cremated, or being removed from the cremation
347 chamber.
348 (4) (a) Simultaneous cremation of the human remains of more than one person within
349 the same cremation chamber or processor is not allowed, unless the funeral service
350 establishment has received specific written authorization to do so from the authorizing agent of
351 each person to be cremated.
352 (b) The written authorization exempts the funeral license establishment from liability
353 for co-mingling of the cremated remains during the cremation process.
354 (5) A funeral service establishment shall:
355 (a) verify the identification of human remains as indicated on a cremation container
356 immediately before placing them in the cremation chamber and attach a metal identification tag
357 to the container; and
358 (b) remove the identification tag from the cremation container and place the
359 identification tag near the cremation chamber control where it shall remain until the cremation
360 process is complete.
361 (6) Upon completion of a cremation, the funeral service establishment shall:
362 (a) in so far as is possible, remove all of the recoverable residue of the cremation
363 process from the cremation chamber;
364 (b) separate all other residue from the cremation process from remaining bone
365 fragments, in so far as possible, and process the bone fragments so as to reduce them to
366 unidentifiable particles; and
367 (c) remove anything other than the unidentifiable bone particles from the cremated
368 residuals, as far as is possible, and dispose of that material.

369 (7) (a) A funeral service establishment shall pack cremated remains, including the
370 identification tag referred to in Subsection (5)(a), in a temporary container or urn ordered by
371 the authorizing agent.
372 (b) The container or urn shall be packed in clean packing materials and not be
373 contaminated with any other object unless otherwise directed by the authorizing agent.
374 (c) If the cremated remains cannot fit within the designated temporary container or urn,
375 the funeral service establishment shall:
376 (i) return the excess to the authorizing agent or the agent's representative in a separate
377 container; and
378 (ii) mark both containers or urns on the outside with the name of the deceased person
379 and an indication that the cremated remains of the named decedent are in both containers or
380 urns.
381 (8) (a) If the cremated remains are to be shipped, then the funeral services
382 establishment shall pack the designated temporary container or urn in a suitable, sturdy
383 container.
384 (b) The funeral service establishment shall have the remains shipped only by a method
385 that:
386 (i) has an available internal tracing system; and
387 (ii) provides a receipt signed by the person accepting delivery.
388 Section 6. Section 58-9-611 is enacted to read:
389 58-9-611. Disposition of cremated remains.
390 (1) (a) An authorizing agent shall provide the person with whom cremation
391 arrangements are made with a signed statement specifying the final disposition of the cremated
392 remains, if known.
393 (b) The funeral services establishment shall retain a copy of the statement.
394 (2) (a) The authorizing agent is responsible for the disposition of the cremated remains.
395 (b) If the authorizing agent or the agent's representative has not specified the ultimate
396 disposition of or claimed the cremated remains within 60 days from the date of the cremation,
397 the funeral service establishment may dispose of the remains in any manner permitted by law,
398 except scattering.
399 (c) The authorizing agent shall reimburse the funeral services establishment for all

400 reasonable costs incurred in disposing of the cremated remains under Subsection (2)(b).
401 (d) The person or entity disposing of cremated remains under this section:
402 (i) shall make and keep a record of the disposition of the remains; and
403 (ii) is discharged from any legal obligation or liability concerning the remains once the
404 disposition has been made.
405 (e) Subsection (2)(d)(ii) applies to cremated remains in the possession of a funeral
406 services establishment or other responsible party as of May 5, 2008, or any time after that date.
407 (3) (a) An authorizing agent may direct a funeral service establishment to dispose of or
408 arrange for the disposition of cremated remains:
409 (i) in a crypt, niche, grave, or scattering garden located in a dedicated cemetery;
410 (ii) by scattering them over inhabited public land, the sea, or other public waterways
411 subject to health and environmental laws and regulations; or
412 (iii) in any manner on the private property of a consenting owner.
413 (b) If cremated remains are to be disposed of on private property, other than dedicated
414 cemetery property, the authorizing agent shall provide the funeral service establishment with
415 the written consent of the property owner prior to disposal of the remains.
416 (c) In order to scatter cremated remains under Subsection (3)(a)(ii) or (iii), the remains
417 must be reduced to a particle size of one-eighth inch or less and removed from their closed
418 container.
419 (4) A funeral service establishment may not release cremated remains for scattering
420 under this section to the authorizing agent or the agent's designated representative until the
421 funeral service establishment is given a receipt that shows the proper filing has been made with
422 the local registrar of births and deaths.
423 Section 7. Section 58-9-612 is enacted to read:
424 58-9-612. Limitation of liability.
425 (1) An authorizing agent who signs a cremation authorization form warrants the
426 truthfulness of the facts set forth on the form, including:
427 (a) the identity of the deceased whose remains are to be cremated; and
428 (b) the authorizing agent's authority to order the cremation.
429 (2) A funeral service establishment may rely upon the representations made by an
430 authorizing agent under Subsection (1).

431 (3) The authorizing agent is personally and individually liable for all damage resulting
432 from a misstatement or misrepresentation made under Subsection (1).
433 (4) (a) A funeral service establishment may arrange for the cremation of and cremate
434 human remains upon receipt of a cremation authorization form signed by an authorizing agent.
435 (b) A funeral service establishment that arranges a cremation, cremates human
436 remains, or releases or disposes of cremated human remains pursuant to a cremation
437 authorization form is not liable for an action it takes pursuant to that authorization.
438 (5) A funeral service establishment is not responsible or liable for any valuables
439 delivered to the establishment with human remains to be cremated.
440 (6) A funeral service establishment may refuse to arrange for a cremation, to accept
441 human remains for cremation, or to perform a cremation:
442 (a) if the establishment is aware of a dispute concerning the cremation of the human
443 remains and it has not received a court order or other suitable confirmation that the dispute has
444 been resolved;
445 (b) if the establishment has a reasonable basis for questioning any of the
446 representations made by an authorizing agent; or
447 (c) for any other lawful reason.
448 (7) (a) If a funeral service establishment is aware of a dispute concerning the release or
449 disposition of cremated remains in its possession, the establishment may refuse to release the
450 remains until:
451 (i) the dispute has been resolved; or
452 (ii) it has received a court order authorizing the release or disposition of the remains.
453 (b) A funeral service establishment is not liable for its refusal to release or dispose of
454 cremated remains in accordance with this Subsection (7).
455 Section 8. Section 58-9-705 is amended to read:
456 58-9-705. Distribution of funds.
457 (1) Interest earned on trust funds shall be available to the provider according to the
458 priority set forth in Section 58-9-704 .
459 (2) The amount of payments made into the corpus of the trust and any other amount
460 which has been paid into the corpus of the trust shall be paid to the provider in the amount
461 credited to a specific account upon the event of one of the following:

462 (a) the death of the beneficiary which shall be demonstrated to the trustee by the
463 provider by furnishing to the trustee:
464 (i) a request for payment from the trust; and
465 (ii) a certified copy of the death certificate of the beneficiary; or
466 (b) revocation of the preneed funeral arrangement contract by either the provider or the
467 buyer according to the terms and conditions of the contract, which shall be demonstrated to the
468 trustee by the provider by furnishing to the trustee satisfactory evidence that:
469 (i) the contract has been revoked; and
470 (ii) the provider has paid all funds due to the buyer or beneficiary.
471 [(3) After the provider completes all of the provider's obligations under the preneed
472 funeral arrangement, the provider shall return all remaining funds under the preneed funeral
473 arrangement to the estate of the beneficiary.]
474 [(4)] (3) Upon an order of [any] a court having jurisdiction, all amounts that have been
475 paid into the corpus of the trust shall be paid to the buyer or beneficiary in the event of:
476 (a) a judgment to the benefit of a buyer or beneficiary upon a finding that:
477 (i) the provider is in substantial breach of the contract; or
478 (ii) there is substantial evidence that the provider is or will be unable to provide the
479 personal property or services to the beneficiary under the contract;
480 (b) a judgment of bankruptcy against the provider; or
481 (c) [any] a finding by the court that determines the funds should be rightfully returned
482 to the buyer or beneficiary.




Legislative Review Note
as of 2-11-08 4:08 PM

Office of Legislative Research and General Counsel