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Minutes for HB2254 - Committee on Health and Human Services
Short Title
Removing the monetary cap on irrevocable prearranged funeral agreements.
Minutes Content for Tue, Feb 16, 2021
Scott Abbott, Revisor of Statutes, provided an overview of HB2254 to the Committee.
Pam Scott, Executive Director, Kansas Funeral Directors Association (KFDA), provided testimony in support of HB2254. The bill would amend Kansas statute to remove the limit on the amount of funds that can be placed in a irrevocable prearranged funeral agreement. This agreement is entered into by a person to preplan and prepay for their funeral and burial expenses. Current law provides that $7,000 plus the retail price of a casket, urn and outside burial container can be placed in an irrevocable account. About every 6 years the KFDA comes before the legislature to increase the cap to keep pace with inflation. This has not been done since 2010. Since 2010, inflation has cumulatively grown by 19.45% and if applied would increase the cap to $8,361.70. Eliminating the cap would eliminate the need to come back to the legislature for increases. Laws regarding the cap vary across the country. A majority of states have no cap. It was noted that any excess funds would go to the state's recovery unit if the individual was receiving state support. Otherwise, they would be returned to the estate (Attachment 1).
Ms. Scott responded to questions from the committee.
The hearing was closed.
Representative Ellis motioned and Representative Eplee seconded to a motion to suspend and work the bill. Motion carried.
Representative Barker motioned and Representative Turner seconded an amendment to raise the limit to $10,000 instead of no limit. Motion carried.
Representative Barker motioned and Representative Eplee seconded to advance HB2254 favorably for passage as amended. Motion carried.
