This bill amends existing Washington law governing funeral establishments (amending RCW 18.39.010 and RCW 18.39.250) to modernize and tighten rules for prearranged funeral service contracts. It requires funeral establishments that sell prearranged contracts and accept payment to establish one or more prearrangement funeral service trusts held by two or more trustees, allows participation in a multi‑firm "master trust," and limits how funds are handled: at least 80 percent of the cash purchase price (excluding sales tax) must be deposited to the trust (deposits due by the 20th day of the month following receipt), up to 20 percent may be retained by the seller, and certain small categories of payments (merchandise delivered within 30 days and transportation protection agreements) need not be placed in trust. Trust assets must be held in insured financial institutions, are not assets of the funeral establishment, may not be used as security for the establishment or related persons, are subject to specified investment and borrowing restrictions, and may be charged administrative fees up to 1% per year. The board may terminate contracts and require refunds if an establishment goes out of business or cannot meet obligations; purchasers/beneficiaries with revocable contracts have post‑30‑day refund rights; contracts may be made irrevocable in certain circumstances related to public assistance (provision text is incomplete). The bill also creates procedural duties and contract disclosure requirements related to state claims for long‑term care. DSHS must notify trustees if it has a claim on a beneficiary’s estate and must renew that notice at least every three years; trustees must notify DSHS’s Office of Financial Recovery when aware of a beneficiary’s death, and the office must file any claim within 30 days of notice. Every prearrangement contract financed through a trust must state the trust name and amount to be deposited, whether the contract is revocable (per subsection (11), which is not included in the extracted text), the 30‑day full refund right, that up to 10% may be retained by the seller to cover selling/setup expenses in certain eligible cancellations, and trustee contact information. The bill imposes transfer and sale procedures for establishments with prearranged contracts, requiring buyers to apply to the director and sellers and buyers to attest to a board‑prescribed report on trust status; failure to comply can trigger the board’s remedies. Important provisions are missing from the extracted text (including the remainder of subsection (11) and any other sections in the omitted chunk), so some definitions and eligibility criteria referenced here cannot be confirmed from the provided material.

If enacted, funeral homes that sell prepaid funerals will have to put at least 80% of the cash purchase price into separate, insured prearrangement trusts managed by at least two trustees, while the business may only keep up to 20% of the cash price up front; in certain purchaser cancellations the seller may retain up to 10% to cover selling/setup costs. That change will reduce the cash held by funeral establishments from prepaid sales and add ongoing administrative work and banking/trustee costs: they must deposit trust funds by the 20th of the month after receipt, keep detailed allocations and records, limit administrative trust fees to 1% per year, and cannot use trust money as a business asset or loan it to related entities. Transfers of ownership will require certified trust-status reporting, and if an establishment closes or cannot meet obligations the board can force refunds or allow transfer of contracts to another licensed provider, which shifts some financial risk away from purchasers. The state Department of Social and Health Services will gain a formal process to protect its long-term care claims: DSHS must notify trustees when it has a claim on a beneficiary’s estate and renew that notice at least every three years, trustees must tell DSHS when a beneficiary dies, and DSHS’s Office of Financial Recovery must file claims within 30 days of notice. Contracts must also disclose the trust amount, whether the contract is revocable, how to contact trustees, and the 30-day full-refund rule. Important parts of subsection (11) and other details are missing from the provided text, so some practical points about revocability and eligibility to cancel are unclear.