Connecticut HB 5381: AN ACT CONCERNING FUNDING OF THE SPECIAL EDUCATION EXCESS COST GRANT.

Bill Text

Substitute House Bill No. 5381

Public Act No. 26-57

AN ACT CONCERNING UNLAWFUL FUNERAL SERVICE
PRACTICES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective from passage) (a) As used in this section:
(1) "Funeral service contract" means a funeral service contract, as
defined in section 42-200 of the general statutes, as amended by this act,
that is entered into on or before July 1, 2026;
(2) "Beneficiary" has the same meaning as provided in section 42-200
of the general statutes, as amended by this act;
(3) "Purchaser" has the same meaning as provided in section 42-200
of the general statutes, as amended by this act; and
(4) "Eligible person" means a beneficiary or purchaser of a funeral
service contract, the estate of a beneficiary or a legally authorized agent
of a beneficiary.
(b) There is established a separate, nonlapsing account to be known
as the "funeral service guaranty account". The account shall contain (1)
any amounts appropriated or otherwise made available by the state for
the purposes of this section, (2) any moneys required by law to be

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Public Act No. 26-57 2 of 8

deposited in the account, and (3) gifts, grants, donations or bequests
made for the purposes of this section. Investment earnings credited to
the assets of the account shall become part of the assets of the account.
The State Treasurer shall administer the account.
(c) All moneys deposited in the account shall be used by the
Department of Consumer Protection for the purposes of this section.
The Commissioner of Consumer Protection may deduct and retain from
the moneys in the account an amount equal to the costs incurred by the
department in administering the provisions of this section, including
personnel expenses, except said amount shall not exceed two per cent
of the balance in the account in any fiscal year.
(d) Beginning on and after July 1, 2027, the Commissioner of
Consumer Protection shall use the funeral service guaranty account to
provide restitution to eligible persons who were victims of fraudulent
or otherwise unlawful practices involving moneys paid pursuant to a
funeral service contract. The department shall not provide any
restitution that exceeds the balance available for restitution in the
account.
(e) To make a claim for payment from the account, an eligible person
shall submit to the Department of Consumer Protection the following:
(1) A copy of the original funeral service contract; (2) proof of any
funeral services provided under the funeral service contract; (3) proof of
status as an eligible person pursuant to subsection (a) of this section; and
(4) proof of any payment for funeral or burial services not provided in
the funeral service contract. The commissioner may consider any
superior court or small claims court order entered against the provider
of the funeral service contract with the eligible person but shall not
require the submission of such an order.
(f) To preserve the integrity of the funeral service guaranty account,
the commission may order payment from the account of an amount less

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than the eligible person's actual loss or damages incurred or less than
the order of restitution awarded by the commissioner. No payment shall
be made from the account in an amount of more than ten thousand
dollars for any one funeral service contract.
(g) If the amount deposited in the account is insufficient to satisfy any
duly authorized claim or portion thereof, the commissioner shall, when
sufficient funds have been deposited in the account, satisfy such unpaid
claims or portions thereof in the order that such claims or portions
thereof were determined.
(h) Whenever the commissioner has caused any amount to be paid
from the account to an eligible person, the commissioner shall be
subrogated to all the rights of the eligible person up to the amount paid
plus reasonable interest and, prior to receipt of any payment from the
account, the eligible person shall assign all of this right, title and interest
in the claim up to the amount to the commissioner, and any amount and
interest recovered by the commissioner on the claim shall be deposited
to the account.
(i) If the commissioner orders the payment of any amount to an
eligible person against the provider of a funeral service contract, the
commissioner shall determine whether such provider is possessed of
assets liable to be sold or applied in satisfaction of the claim on the
account. If the commissioner discovers any such assets, the
commissioner may request that the Attorney General take any action
necessary for reimbursement to the account.
(j) The commissioner shall adopt regulations, in accordance with the
provisions of chapter 54 of the general statutes, concerning the
requirements for obtaining restitution under this section and a process
for issuing restitution to eligible persons. Such regulation