According to the Legislative Budget Board (LBB), HB 1094 is not expected to have a significant fiscal impact on the state. The bill's primary function—to exempt transportation protection agreements from regulation under insurance and prepaid funeral statutes—does not necessitate the creation of new regulatory bodies, oversight mechanisms, or administrative processes. As such, it is anticipated that any minimal implementation or administrative costs associated with the bill can be absorbed within the existing resources of the relevant state agencies.

The agencies identified in the fiscal analysis include the Texas Department of Banking, the Texas Department of Insurance, and the Texas Funeral Service Commission. These agencies are not expected to experience substantial changes to their workload or financial requirements due to the reclassification of transportation protection agreements.

Similarly, there are no significant fiscal implications expected for local governments. Since the bill targets regulatory definitions and exclusions at the state level and does not impose any mandates or funding changes on local jurisdictions, it is not projected to affect local government budgets or operations. Overall, HB 1094 is fiscally neutral with regard to both state and local government impact.

HB 1094 addresses a regulatory ambiguity in Texas law concerning transportation protection agreements—contracts that arrange and coordinate the preparation and transport of a deceased person's body. The bill explicitly defines these agreements and distinguishes them from prepaid funeral benefits and insurance products, thereby removing them from the regulatory oversight of the Texas Finance Code and Insurance Code. As clarified in the bill analysis, these agreements are often offered by third-party vendors and currently operate in a gray area outside of conventional funeral service plans.

The bill upholds the principles of individual liberty and personal responsibility by affirming Texans' ability to make their own arrangements for limited, post-death services without unnecessary regulatory burden. It supports free enterprise by enabling third-party vendors to operate within a clearly defined, deregulated space, which could lead to increased competition and innovation in the funeral services industry. In turn, this aligns with the limited government principle by explicitly stating that these agreements are not subject to insurance regulation or the financial controls imposed on broader prepaid funeral services.

Importantly, the Legislative Budget Board determined there would be no significant fiscal impact to state or local governments, and the bill does not expand rulemaking authority or impose new criminal penalties. It is a modest and targeted regulatory clarification that offers consumer choice, limits government scope, and supports market-driven solutions without risking public oversight failures. Accordingly, Texas Policy Research recommends that lawmakers vote YES on HB 1094.

• Individual Liberty: The bill enhances individual liberty by allowing consumers greater freedom to enter into transportation protection agreements without having those agreements treated as prepaid funeral plans or insurance products. By doing so, it protects the autonomy of individuals to make end-of-life arrangements that are limited in scope and not bundled with traditional funeral or burial services. This legislative clarification helps ensure that personal planning decisions are respected and not unduly burdened by regulation.
• Personal Responsibility: The bill promotes personal responsibility by facilitating a clear and accessible way for individuals to independently arrange for the transportation of their remains. It empowers people to plan ahead and engage in contractual relationships for specific services without requiring them to go through more complex or costly prepaid funeral benefit plans, which are subject to heavier state oversight.
• Free Enterprise: The bill directly supports free enterprise by exempting transportation protection agreements from the insurance code and prepaid funeral benefit regulation. This allows third-party vendors and small businesses to provide specialized services in a less burdensome regulatory environment, encouraging market competition, service innovation, and consumer choice. Removing unnecessary compliance costs can also increase affordability and accessibility for consumers.
• Private Property Rights: While the bill does not directly deal with ownership or control of physical property, it reinforces contractual freedom, which is a key component of private property rights. By removing certain services from the insurance and funeral regulation framework, the bill indirectly supports the right of parties to form and enforce private agreements without excessive state interference.
• Limited Government: The bill is a clear application of the principle of limited government. It reduces the scope of state regulation by affirmatively stating that transportation protection agreements are not subject to the Insurance Code or the Finance Code provisions for prepaid funeral benefits. This prevents potential regulatory overreach and aligns the law with a more restrained role for government in the private contractual sphere.