Prearrang. funeral services

AN ACT Relating to prearrangement funeral services; amending RCW 1
18.39.010 and 18.39.250; and creating a new section.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. The legislature finds that a 4
prearrangement funeral service allows a person to prepare for, plan, 5
and purchase their funeral service in advance so that their funeral 6
preferences are honored. Many families face difficult decisions upon 7
a loved one's passing. The legislature finds that making and paying 8
for one's own final wishes can relieve the emotional decisions and 9
financial hardships around funeral services that are typically placed 10
on families. Therefore, the legislature recognizes the benefit and 11
need for prearrangement funeral services and intends to modernize the 12
requirements placed upon funeral establishments who offer 13
prearrangement funeral services.14
Sec. 2. RCW 18.39.010 and 2019 c 432 s 36 are each amended to 15
read as follows: 16
The definitions in this section and in chapter 68.04 RCW apply 17
throughout this chapter unless the context clearly requires 18
otherwise. 19
H-0018.1
HOUSE BILL 1005
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ryu, Corry, and Reeves
Prefiled 12/03/24. Read first time 01/13/25. Referred to Committee
on Consumer Protection & Business.
p. 1 HB 1005
(1) "Board" means the funeral and cemetery board created pursuant 1
to RCW 18.39.173. 2
(2) "Director" means the director of licensing.3
(3) "Embalmer" means a person engaged in the profession or 4
business of disinfecting and preserving human remains for 5
transportation or final disposition. 6
(4) "Funeral director" means a person engaged in the profession 7
or business of providing for the care, shelter, transportation, and 8
arrangements for the disposition of human remains that may include 9
arranging and directing funeral, memorial, or other services.10
(5) "Funeral establishment" means a place of business licensed in 11
accordance with RCW 18.39.145, that provides for any aspect of the 12
care, shelter, transportation, embalming, preparation, and 13
arrangements for the disposition of human remains and includes all 14
areas of such entity and all equipment, instruments, and supplies 15
used in the care, shelter, transportation, preparation, and embalming 16
of human remains. 17
(6) "Funeral merchandise or services" means those services 18
normally performed and merchandise normally provided by funeral 19
establishments, including the sale of burial supplies and equipment, 20
but excluding the sale by a cemetery of lands or interests therein, 21
services incidental thereto, markers, memorials, monuments, 22
equipment, crypts, niches, or vaults. 23
(7) "Licensee" means any person or entity holding a license, 24
registration, endorsement, or permit under this chapter issued by the 25
director. 26
(8) "Prearrangement funeral service contract" means any contract 27
under which, for a specified consideration, a funeral establishment 28
promises, upon the death of the person named or implied in the 29
contract, to furnish funeral merchandise or services. "Prearrangement 30
funeral service contract" does not include funeral merchandise that 31
is delivered either at the time of sale or within 30 days thereafter, 32
nor does it include a transportation protection agreement.33
(9) "Public depositary" means a public depositary defined by RCW 34
39.58.010 or a state or federally chartered credit union.35
(10) "Transportation protection agreement" means an agreement 36
that primarily provides for the coordination and arrangement of all 37
professional services related to the preparation of transportation 38
and subsequent transportation of human remains or cremated remains.39
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(11) "Two-year college course" means the completion of sixty 1
semester hours or ninety quarter hours of college credit, including 2
the satisfactory completion of certain college courses, as set forth 3
in this chapter. 4
Words used in this chapter importing the singular may be applied 5
to the plural of the person or thing, words importing the plural may 6
be applied to the singular, and words importing the masculine gender 7
may be applied to the female. 8
Sec. 3. RCW 18.39.250 and 2012 c 206 s 2 are each amended to 9
read as follows: 10
(1) Any funeral establishment selling funeral merchandise or 11
services by prearrangement funeral service contract and accepting 12
moneys therefore must establish and maintain one or more 13
prearrangement funeral service trusts under Washington state law with 14
two or more designated trustees, for the benefit of the beneficiary 15
of the prearrangement funeral service contract. Funeral 16
establishments may join with one or more other Washington state 17
licensed funeral establishments in a "master trust" provided that 18
each member of the "master trust" complies individually with the 19
requirements of this chapter. A funeral establishment shall not be 20
required to trust moneys received for funeral merchandise that is 21
delivered within 30 days of the sale nor shall a funeral 22
establishment be required to trust moneys received for a 23
transportation protection agreement.24
(2) Up to ((ten)) 20 percent of the cash purchase price of each 25
prearrangement funeral service contract, excluding sales tax, may be 26
retained by the funeral establishment unless otherwise provided in 27
this chapter. If the prearrangement funeral service contract is 28
canceled within thirty calendar days of its signing, then the 29
purchaser must receive a full refund of all moneys paid under the 30
contract. 31
(3) At least ((ninety)) 80 percent of the cash purchase price of 32
each prearrangement funeral service contract, paid in advance, 33
excluding sales tax, shall be placed in the trust established or 34
utilized by the funeral establishment. Deposits to the prearrangement 35
funeral service trust must be made not later than the twentieth day 36
of the month following receipt of each payment made on the last 37
((ninety)) 80 percent of each prearrangement funeral service 38
contract, excluding sales tax. 39
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(4) All prearrangement funeral service trust moneys must be 1
deposited in an insured account in a commercial bank, trust company, 2
mutual savings bank, savings and loan association, or credit union, 3
whether state or federally chartered. The account or investments 4
shall be designated as the prearrangement funeral service trust of 5
the funeral establishment for the benefit of the beneficiaries named 6
in the prearrangement funeral service contracts. The prearrangement 7
funeral service trust shall not be considered as, or used as, an 8
asset of the funeral establishment. All prearrangement funeral 9
service trust moneys must be invested in accordance with the 10
provisions of RCW 11.100.020 subject to the following restrictions:11
(a) No officer or director of the funeral establishment, trustee 12
of the prearrangement trust funds, or spouse, sibling, parent, 13
grandparent, or issue of such officer, director, or trustee, may 14
borrow any of such funds for himself or herself, directly or 15
indirectly; 16
(b) No funds may be loaned to the funeral establishment, its 17
agents, or employees, or to any corporation, partnership, or other 18
business entity in which the funeral establishment has any ownership 19
interest; and 20
(c) No funds may be invested with persons or business entities 21
operating in a business field directly related to funeral homes.22
(5) After deduction of reasonable fees for the administration of 23
the trust, taxes paid or withheld, or other expenses of the trust, 24
all interest, dividends, or growth earned by a trust become a part of 25
the trust. Adequate records must be maintained to allocate the share 26
of principal and interest to each contract. Fees deducted for the 27
administration of the trust may not exceed one percent per year of 28
the amount in trust. In no instance may the administrative charges 29
deducted from the prearrangement funeral service trust reduce, 30
diminish, or in any other way lessen the value of the trust so that 31
the services or merchandise provided for under the contract are 32
reduced, diminished, or in any other way lessened.33
(6) Except as otherwise provided in this chapter, the trustees of 34
a prearrangement funeral service trust must permit withdrawal of all 35
funds deposited under a prearrangement funeral service contract, plus 36
accruals thereon, under the following circumstances and conditions:37
(a) If the funeral establishment files a verified statement with 38
the trustees that the prearrangement funeral merchandise and services 39
p. 4 HB 1005
covered by the contract have been furnished and delivered in 1
accordance therewith; or 2
(b) If the funeral establishment files a verified statement with 3
the trustees that the prearrangement funeral merchandise and services 4
covered by the contract have been canceled in accordance with its 5
terms. 6
(7) Subsequent to the thirty calendar day cancellation period 7
provided for in this chapter, any purchaser or beneficiary who has a 8
revocable prearrangement funeral service contract has the right to 9
demand a refund of the amount in trust. 10
(8) Prearrangement funeral service contracts which have or should 11
have an account in a prearrangement funeral service trust may be 12
terminated by the board if the funeral establishment goes out of 13
business, becomes insolvent or bankrupt, makes an assignment for the 14
benefit of creditors, has its prearrangement funeral service 15
certificate of registration revoked, or for any other reason is 16
unable to fulfill the obligations under the contract. In such event, 17
or upon demand by the purchaser or beneficiary of the prearrangement 18
funeral service contract, the funeral establishment must refund to 19
the purchaser or beneficiary all moneys deposited in the trust and 20
allocated to the contract unless otherwise ordered by a court of 21
competent jurisdiction. The purchaser or beneficiary may, in lieu of 22
a refund, elect to transfer the prearrangement funeral service 23
contract and all amounts in trust to another funeral establishment 24
licensed under this chapter which will agree, by endorsement to the 25
contract, to be bound by the contract and to provide the funeral 26
merchandise or services. Election of this option does not relieve the 27
defaulting funeral establishment of its obligation to the purchaser 28
or beneficiary for any amounts required to be, but not placed, in 29
trust. 30
(9) Prior to the sale or transfer of ownership or control of any 31
funeral establishment which has contracted for prearrangement funeral 32
service contracts, any person, corporation, or other legal entity 33
desiring to acquire such ownership or control must apply to the 34
director in accordance with RCW 18.39.145. Persons and business 35
entities selling or relinquishing, and persons and business entities 36
purchasing or acquiring ownership or control of such funeral 37
establishments must each verify and attest to a report showing the 38
status of the prearrangement funeral service trust or trusts on the 39
date of the sale. This report must be on a form prescribed by the 40
p. 5 HB 1005
board and shall be considered part of the application for a funeral 1
establishment license. In the event of failure to comply with this 2
subsection, the funeral establishment is deemed to have gone out of 3
business and the provisions of subsection (8) of this section apply.4
(10) Prearrangement funeral service trust moneys may not be used, 5
directly or indirectly, for the benefit of the funeral establishment 6
or any director, officer, agent, or employee of the funeral 7
establishment including, but not limited to, any encumbrance, pledge, 8
or other use of prearrangement funeral service trust moneys as 9
collateral or other security. 10
(11)(a) If, at the time of the signing of the prearrangement 11
funeral service contract, the beneficiary of the trust is a recipient 12
of public assistance as defined in RCW 74.04.005, or reasonably 13
anticipates being so defined, the contract may provide that the trust 14
will be irrevocable. If after the contract is entered into, the 15
beneficiary becomes eligible or seeks to become eligible for public 16
assistance under Title 74 RCW, the contract may provide for an 17
election by the beneficiary, or by the purchaser on behalf of the 18
beneficiary, to make the trust irrevocable thereafter in order to 19
become or remain eligible for such assistance. 20
(b) The department of social and health services must notify the 21
trustee of any prearrangement service trust that the department has a 22
claim on the estate of a beneficiary for long-term care services. 23
Such notice must be renewed at least every three years. The trustees 24
upon becoming aware of the death of a beneficiary must give notice to 25
the department of social and health services, office of financial 26
recovery, who shall file any claim there may be within thirty days of 27
the notice. 28
(12) Every prearrangement funeral service contract financed 29
through a prearrangement funeral service trust must contain language 30
which: 31
(a) Informs the purchaser of the prearrangement funeral service 32
trust and the amount to be deposited in the trust;33
(b) Indicates if the contract is revocable or not in accordance 34
with subsection (11) of this section; 35
(c) Specifies that a full refund of all moneys paid on the 36
contract will be made if the contract is canceled within thirty 37
calendar days of its signing; 38
(d) Specifies that, in the case of cancellation by a purchaser or 39
beneficiary eligible to cancel under the contract or under this 40
p. 6 HB 1005
chapter, up to ten percent of the contract amount may be retained by 1
the seller to cover the necessary expenses of selling and setting up 2
the contract; 3
(e) Identifies the trust to be used and contains information as 4
to how the trustees may be contacted. 5
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p. 7 HB 1005