(a) Upon the death of any beneficiary under the state supplement or the temporary family assistance program, the Commissioner of Social Services shall order the payment of a sum not to exceed one thousand three hundred fifty dollars as an allowance toward the funeral and burial expenses of such decedent. The payment for funeral and burial expenses shall be reduced by (1) the amount in any revocable or irrevocable funeral fund, (2) any prepaid funeral contract, (3) the face value of any life insurance policy owned by the decedent that names a funeral home, cemetery or crematory as a beneficiary, (4) the net value of all liquid assets in the decedent’s estate, and (5) contributions in excess of three thousand four hundred dollars toward such funeral and burial expenses from all other sources, including friends, relatives and all other persons, organizations, agencies, veterans’ programs and other benefit programs. Notwithstanding the provisions of section 17b-90, whenever payment for funeral, burial or cremation expenses is reduced due to liquid assets in the decedent’s estate, the commissioner may disclose information concerning such liquid assets to the funeral director, cemetery or crematory providing funeral, burial or cremation services for the decedent.

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(b) The Commissioner of Social Services may adopt regulations, in accordance with chapter 54, to implement the provisions of this section.