🔴Relating to the regulation of transportation protection agreements.
HB 1094
🔴 HB 1094: The Funeral Contract Loophole That Erases Oversight
What it says it does:
HB 1094 says it clarifies how “transportation protection agreements” work. These contracts cover the cost of moving a person’s body if they die more than 75 miles from home. The bill’s authors claim it simplifies the law and removes unnecessary regulation.
What it actually changes:
HB 1094 removes transportation protection agreements from both the Texas Finance Code and the Insurance Code. It declares they are “not the business of insurance” and “not prepaid funeral benefits.” This means no licensing, no escrow, no refund rules, and no complaint process. Sellers can collect money upfront with zero state oversight.
Who is pushing for it:
Service Corporation International (SCI), the largest funeral home and cemetery company in North America, and the Texas Funeral Directors Association (TFDA) supported the bill. Both were represented in hearings. Rep. Lambert carried the bill in the House, and Sen. Zaffirini sponsored it in the Senate.
Who benefits:
Large funeral corporations and unlicensed vendors gain new freedom to sell prepaid transport plans without the costs or restrictions of regulation. They avoid audits, bonding requirements, or consumer complaint investigations, making sales cheaper and profits higher.
Who gets left out or exposed:
Consumers lose every safeguard that existed before. If a company takes payment and disappears, there is no refund, no enforcement agency, and no regulator to hold them accountable. Rural and low-income Texans, who often rely on these plans, are most at risk.
Why this matters long term:
This bill sets a precedent for deregulating by redefinition. By changing legal definitions instead of reforming rules, it shows industries how to escape oversight. Once a sector is carved out of state codes, it becomes nearly impossible to re-regulate.
What to watch next:
Future sessions may see similar “clarification” bills in other prepaid or service-based industries. Lawmakers or lobbyists may use the same playbook to exempt contracts from financial and insurance oversight. Watch for new carveouts in elder care or life planning services.
Bottom line:
HB 1094 removes all public accountability from a sensitive, high-trust service. It leaves families with no clear legal remedy if something goes wrong, raising constitutional questions under Article I, Section 13 of the Texas Constitution about access to justice and remedy by due course of law.
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