reglab/statecodes huggingface dataset:
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.254. Amount Payable on Cancellation of Contract

Sec. 154.254.  AMOUNT PAYABLE ON CANCELLATION OF CONTRACT.  A purchaser of a trust-funded prepaid funeral benefits contract who cancels the contract during the first year of the contract when payments required under the contract are current is entitled to receive, regardless of the amount held in trust, the greater of:
(1)  90 percent of the actual amount paid by the purchaser;  or
(2)  the amount deposited in trust with respect to the purchaser's contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.255. Standard of Duty of Depository

Sec. 154.255.  STANDARD OF DUTY OF DEPOSITORY.  A depository described by Section 154.253(a)(1) shall be held to the standard of duty of a fiduciary in holding, investing, or disbursing the money.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 720 (H.B. 2393), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.256. Standard of Duty of Trustee

Sec. 154.256.  STANDARD OF DUTY OF TRUSTEE.  A trustee described by Section 154.253(a)(2) shall be held to the standard of duty of a trustee under the Texas Trust Code (Subtitle B, Title 9, Property Code), provided that the provisions of the Texas Trust Code may not be expanded, restricted, eliminated, or otherwise altered by the provisions of the trust instrument in a manner that is inconsistent with the purposes, terms, distribution requirements, and other circumstances of a trust established under this chapter.  In administering assets held in a prepaid funeral benefits trust, a trustee shall consider the trust beneficiaries to include the following two classes of persons to the extent of any beneficial interest:
(1)  funeral providers or other persons entitled to payment after delivering a contracted funeral for which funds have been deposited in trust; and
(2)  purchasers of or beneficiaries designated in prepaid funeral benefits contracts for which funds have been deposited in trust who:
(A)  are entitled to receive a contracted funeral; or
(B)  have the right to cancel a contract under Section 154.155 if not waived under Section 154.156.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 720 (H.B. 2393), Sec. 1, eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.257. Investment Plan

Sec. 154.257.  INVESTMENT PLAN.  (a)  A permit holder or trustee, if the permit holder deposits the money with a financial institution as trustee, shall:
(1)  adopt a written investment plan consistent with this section and Sections 154.256 and 154.258 that specifies the quality, maturity, and diversification of investments;
(2)  at least annually, review the adequacy and implementation of the investment plan;
(3)  maintain investment records covering each transaction;  and
(4)  maintain the investment plan in the principal offices of the permit holder and trustee.
(b)  The permit holder shall provide the investment plan to the department with the filing of the permit holder's annual report.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.025, eff. Sept. 1, 1999.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.258. Investment and Management of Trust Assets

Sec. 154.258.  INVESTMENT AND MANAGEMENT OF TRUST ASSETS.
(a)  The trustee of a prepaid funeral benefits trust shall invest and manage trust assets in accordance with the Uniform Prudent Investor Act (Chapter 117, Property Code), in a manner consistent with the requirements of this chapter and the purposes, terms, distribution requirements, and other circumstances of the trust.
(b)  The commission may adopt reasonable rules to administer and clarify law regarding the investment and management of prepaid funeral benefits trust funds, provided that the rules are consistent with the Uniform Prudent Investor Act (Chapter 117, Property Code), the requirements of this chapter, and the purposes, terms, distribution requirements, and other circumstances of a prepaid funeral benefits trust, including rules to:
(1)  define trust and investment terms;
(2)  specify standards applicable to the written investment plan required by Section 154.257; and
(3)  establish guidelines, rebuttable presumptions, or safe harbor provisions with respect to suitable investments and investment strategies for a prepaid funeral benefits trust.
(c)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 720, Sec. 4(1), eff. September 1, 2007.
(d)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 720, Sec. 4(1), eff. September 1, 2007.
(e)  Repealed by Acts 2007, 80th Leg., R.S., Ch. 720, Sec. 4(1), eff. September 1, 2007.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.41(a), eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 344, Sec. 2.026, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 1420, Sec. 6.028, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 720 (H.B. 2393), Sec. 2, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 720 (H.B. 2393), Sec. 3, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 720 (H.B. 2393), Sec. 4(1), eff. September 1, 2007.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.260. Use of Money to Purchase, Lease, or Invest in Asset Owned by Seller or Funeral Provider

Sec. 154.260.  USE OF MONEY TO PURCHASE, LEASE, OR INVEST IN ASSET OWNED BY SELLER OR FUNERAL PROVIDER.  (a)  The depository of money under Section 154.253 must obtain the commissioner's prior written approval to use that money to purchase, lease, or invest in an asset owned by the seller or funeral provider or an affiliate of the seller or funeral provider.
(b)  The commissioner by order may disapprove a transaction described by Subsection (a) on the ground that it would materially adversely affect the interests of the purchasers of prepaid funeral benefits contracts.
(c)  The commissioner shall enter an order approving or disapproving the transaction not later than the 30th day after the date the commissioner receives written notification by the permit holder.  The transaction is considered approved if the commissioner does not act within that period.
(d)  The order takes effect as proposed unless the permit holder requests a hearing not later than the 10th day after the date of the order.
(e)  In this section, "affiliate" means a person or entity directly or indirectly controlling, controlled by, or under common control with a permit holder or funeral provider.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.261. Withdrawal of Earnings to Pay Certain Expenses

Sec. 154.261.  WITHDRAWAL OF EARNINGS TO PAY CERTAIN EXPENSES.  (a)  The seller of a trust-funded prepaid funeral benefits contract may withdraw money from earnings on an account described by Section 154.253 to pay:
(1)  reasonable and necessary trustee's fees or depository fees;
(2)  the examination fee for one examination by the department each calendar year;  or
(3)  the expense of preparation of financial statements required by the department, including those financial statements required by the department instead of an examination.
(b)  With the department's prior approval, the seller may withdraw money from earnings on an account to pay:
(1)  any tax incurred because of the existence of the account;  or
(2)  an assessment under Subchapter H.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.262. Withdrawal of Money on Death of Beneficiary

Sec. 154.262.  WITHDRAWAL OF MONEY ON DEATH OF BENEFICIARY.  (a)  The seller of a trust-funded prepaid funeral benefits contract may withdraw an amount equal to the original contract amount paid by the purchaser and the earnings attributable to the contract, less the amount retained under Section 154.252, after:
(1)  the beneficiary named in the contract dies;
(2)  the funeral service is completed;
(3)  the funeral provider has completed the provider's obligations under Section 154.161(a) with respect to the contract; and
(4)  the depository is presented with:
(A)  appropriate affidavits by an officer or agent of the seller on forms prescribed by the department, attesting to matters required by Subdivisions (2) and (3); and
(B)  a certified copy of the death certificate.
(b)  The seller shall maintain copies of the affidavits and death certificate for examination by the department.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 22, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.263. Withdrawal of Earnings Attributable to Contract

Sec. 154.263.  WITHDRAWAL OF EARNINGS ATTRIBUTABLE TO CONTRACT.  On the maturity date of a trust-funded prepaid funeral benefits contract as provided by Section 154.262 and after the funeral provider has performed its obligations under the contract, or at the time of cancellation of the contract as provided by Section 154.155 or 154.254, the seller may withdraw from an account described by Section 154.253:
(1)  the proportionate part of the earnings that the amount deposited under the contract bears to the total amount deposited from all unmatured contracts, less the amount of excess earnings that was withdrawn in accordance with prior law;  or
(2)  if the commissioner has determined that the records of the permit holder are adequate to allow this method to be exercised accurately, an amount equal to the actual earnings on individual matured contracts, less any properly allocated expenses permitted by this subchapter and less the amount of excess earnings that was withdrawn in accordance with prior law.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.264. Accounting Records

Sec. 154.264.  ACCOUNTING RECORDS.  A seller shall maintain accounting records showing the amount deposited or invested under this subchapter with respect to each contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter F. Trust-Funded Prepaid Funeral Benefits › Section 154.265. Default Under Certain Contracts

Sec. 154.265.  DEFAULT UNDER CERTAIN CONTRACTS.  (a)  Notwithstanding any other law, the purchaser of a trust-funded prepaid funeral benefits contract may not be considered in default under the contract if:
(1)  the purchaser has paid at least 85 percent of the contract price; and
(2)  the purchaser was unable to pay due to extenuating financial circumstances.
(b)  A funeral provider is not required to provide funeral merchandise or services under a trust-funded prepaid funeral benefits contract unless any remaining balance, including any applicable finance charge, owed under the contract is paid before the funeral service or the funeral provider agrees in writing to another payment arrangement.
(c)  This section does not affect a purchaser's right to cancel a trust-funded prepaid funeral benefits contract.
Added by Acts 2009, 81st Leg., R.S., Ch. 263 (H.B. 1468), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.301. Presumption of Abandonment

Sec. 154.301.  PRESUMPTION OF ABANDONMENT.  (a)  Money paid by a purchaser of a prepaid funeral benefits contract is personal property subject to presumption of abandonment and delivery to the comptroller under Title 6, Property Code.  This subchapter controls in case of conflict with that title.
(b)  Money paid by a purchaser of a prepaid funeral benefits contract and held in the name of the seller at a depository under Subchapter F  is presumed abandoned if:
(1)  the amount due the seller from the purchaser under the contract has been collected and:
(A)  the seller has not known the existence and location of the purchaser or the beneficiary of the contract for the three preceding years;
(B)  according to the knowledge and records of the seller, a claim to the money or contract has not been asserted or an act of ownership of the money or contract has not been exercised during the three preceding years;
(C)  at least 60 years have elapsed since the date the purchaser executed the contract;  and
(D)  at least 90 years have elapsed since the date of birth of the beneficiary of the contract;  or
(2)  the amount due the seller from the purchaser under the contract has not been paid and during the three preceding years:
(A)  the purchaser has not made a payment to the seller under the contract;
(B)  the seller has not known the existence and location of the purchaser or the beneficiary of the contract;  and
(C)  according to the knowledge and records of the seller, a claim to the money or contract has not been asserted and an act of ownership of the money or contract has not been exercised.
(c)  For purposes of Title 6, Property Code, the seller of the contract for which money is presumed abandoned under Subsection (b) is the holder of the money, and the purchaser or the beneficiary of the contract is the owner of the money.
(d)  The presumption of abandonment provided by Subsection (b) does not apply to:
(1)  money retained by the seller to cover selling expenses, service costs, and general overhead, as provided by Section 154.252;  and
(2)  earnings attributable to money paid by the purchaser under the contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.302. Notice of Abandoned Money

Sec. 154.302.  NOTICE OF ABANDONED MONEY.  On March 1 of each year, a seller that holds money presumed abandoned under Section 154.301(b) shall furnish the commissioner with an acknowledged written notice of the abandoned money not later than the following June 1.  The notice must include:
(1)  the name and address, if known, of each person who appears to be the purchaser or the beneficiary of the contract;
(2)  the identification number, if any, of the contract;
(3)  the total amount paid on the contract;
(4)  the amount paid on the contract and held at the depository;
(5)  the earnings of the contract; and
(6)  a statement by the seller recognizing the seller's obligation and intent to deliver the abandoned money to the comptroller in accordance with this subchapter.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 446 (S.B. 1822), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.303. Authorization to Withdraw Money

Sec. 154.303.  AUTHORIZATION TO WITHDRAW MONEY.  (a)  Not later than the 15th day after the date the notice required by Section 154.302 is received, the commissioner shall give the seller written authorization to:
(1)  withdraw the money presumed abandoned as specified in the notice;  and
(2)  subject to Subsection (b), withdraw and retain the money specified in the notice that represents the earnings attributable to the abandoned money.
(b)  The commissioner may refuse to authorize the seller to withdraw the earnings described by Subsection (a)(2) only if:
(1)  the department has canceled or refused to renew the seller's permit to sell prepaid funeral benefits;
(2)  the seller is the subject of a pending proceeding to cancel the seller's permit to sell prepaid funeral benefits;  or
(3)  the department has:
(A)  determined from an examination of the seller's records that the seller has made withdrawals from accounts maintained by the seller that were not authorized under this chapter;  and
(B)  previously given written notice to the seller of that determination.
(c)  Not later than the 15th day after the date the notice under Section 154.302 is received, the commissioner shall give written notice to the seller stating the reason the commissioner will not authorize the seller to withdraw the earnings described by Subsection (a)(2).
(d)  A seller that did not receive the commissioner's authorization to withdraw earnings because of Subsection (b)(2) is entitled to withdraw and retain the earnings if the department or a court subsequently determines that the seller's permit should not be canceled.
(e)  A seller that did not receive the commissioner's authorization to withdraw earnings because of Subsection (b)(3) is entitled to withdraw and retain the earnings on redepositing in the accounts the amount of the unauthorized withdrawals.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.304. Delivery to Comptroller of Abandoned Money and Report

Sec. 154.304.  DELIVERY TO COMPTROLLER OF ABANDONED MONEY AND REPORT.  Not later than the first July 1 after the date a seller is required to furnish notice to the commissioner under Section 154.302, the seller shall deliver to the comptroller:
(1)  the abandoned money; and
(2)  the report required to be filed under Chapter 74, Property Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 446 (S.B. 1822), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.305. Discharge of Contractual Obligations; Indemnity of Seller

Sec. 154.305.  DISCHARGE OF CONTRACTUAL OBLIGATIONS;  INDEMNITY OF SELLER.  (a)  The delivery of abandoned money and reporting to the comptroller under Section 154.304:
(1)  relieves the seller of the obligations and liabilities under the prepaid funeral benefits contract;
(2)  cancels the prepaid funeral benefits contract;  and
(3)  discharges the obligations and liabilities of and claims against the seller and funeral provider.
(b)  A seller that delivers money to the comptroller under Section 154.304 shall be indemnified under Section 74.304, Property Code, for any claim that may be made with respect to the property.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.306. Liability and Obligations of Comptroller

Sec. 154.306.  LIABILITY AND OBLIGATIONS OF COMPTROLLER.  (a)  The comptroller is liable to the purchaser or beneficiary of a prepaid funeral benefits contract presumed abandoned under this subchapter only to the extent of money that is attributable to the contract and delivered to the comptroller.
(b)  The comptroller is not obligated to perform the seller's duties under an abandoned prepaid funeral benefits contract.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter G. Abandoned Contracts › Section 154.307. Recourse of Purchaser or Beneficiary

Sec. 154.307.  RECOURSE OF PURCHASER OR BENEFICIARY.  A purchaser's or beneficiary's sole recourse after a seller has delivered abandoned money and reported to the comptroller under Section 154.304 is to file a claim with the comptroller as provided by Chapter 74, Property Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.351. Maintenance of Guaranty Fund

Sec. 154.351.  MAINTENANCE OF GUARANTY FUND.  (a)  The commission by rule shall establish and the department shall maintain a fund to guarantee performance by sellers of prepaid funeral benefits contracts and funeral providers under those contracts of their obligations to the purchasers.
(b)  Except as provided by Subsection (c), for purposes of claims and assessments, the department shall maintain separate accounts within the fund for trust-funded contracts and insurance-funded contracts.
(c)  The advisory council under Section 154.355 may authorize borrowing between accounts to facilitate prompt and efficient resolution of claims against an account with an insufficient balance if:
(1)  the indebted account is obligated to pay interest at a rate that will reasonably compensate the lending account for lost earnings;
(2)  required or planned assessments for the benefit of the indebted account are pending and sufficient to repay the lending account;  and
(3)  assessments collected for the benefit of the indebted account are transferred to the lending account until the borrowed amount plus interest has been repaid.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 80, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 23, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 1, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.352. Assessment on Sales Contracts

Sec. 154.352.  ASSESSMENT ON SALES CONTRACTS.  (a)  The department shall assess and collect from a seller not more than $1 for each unmatured prepaid funeral benefits contract sold during each calendar year and shall deposit the assessments in the fund.
(b)  The department shall stop assessing the amounts required by Subsection (a) when the amount in the fund first reaches $1 million.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.3525. Assessment on Insurance-Funded Contracts

Sec. 154.3525.  ASSESSMENT ON INSURANCE-FUNDED CONTRACTS.  (a)  The department shall assess and collect from a seller not more than $1 for each insurance-funded contract sold during each calendar year and shall deposit the assessments in the insurance-funded contract account within the fund.
(b)  The department shall stop assessing the amounts required by Subsection (a) when the amount in the insurance-funded contract account reaches $1 million.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 24, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.353. Deposit of Fund or Portion of Fund

Sec. 154.353.  DEPOSIT OF FUND OR PORTION OF FUND.  (a)  The fund or a portion of the fund may be deposited:
(1)  with the comptroller;
(2)  with a federally insured financial institution that has its main office or a branch in this state; or
(3)  in trust with a financial institution that has its main office or a branch in this state and is authorized to act as a fiduciary in this state.
(b)  If the fund or a portion of the fund is deposited with the comptroller, the comptroller shall manage the deposit as trustee of money outside the state treasury.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 2.027, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 2, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.354. Use of Fund Earnings

Sec. 154.354.  USE OF FUND EARNINGS.  The department may use the earnings from the fund to operate and maintain the fund.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.355. Advisory Council

Sec. 154.355.  ADVISORY COUNCIL.
(a)  An advisory council composed of the following individuals shall supervise the operation and maintenance of the fund:
(1)  the commissioner or the commissioner's representative;
(2)   two representatives of the prepaid funeral industry appointed by the commission, one of whom represents trust-funded prepaid funeral benefits contract sellers and one of whom represents insurance-funded prepaid funeral benefits contract sellers; and
(3)  one consumer representative appointed by the commission.
(b)  The prepaid funeral industry and consumer representatives serve two-year terms and may not serve more than four terms.
(c)  The commissioner shall render a final decision if there is a tie vote by members of the advisory council.
(d)  Notwithstanding Chapter 551, Government Code, or any other law, the advisory council may hold an open or closed meeting by telephone conference call, videoconference, or other similar telecommunication method if:
(1)  notice is given for the meeting as for other meetings;
(2)  the notice specifies a location for the meeting at which the public may attend;
(3)  each part of the meeting that is required to be open to the public is audible to the public at the location specified in the notice of the meeting; and
(4)  the meeting is recorded by electronic or other means and the recording of each portion of the meeting that is required to be open to the public is made available to the public.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 25, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 3, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.3551. Limit on Liability

Sec. 154.3551.  LIMIT ON LIABILITY.  (a)  A member of the advisory council is not personally liable for damages arising from the member's official act or omission under this subchapter unless the act or omission is corrupt or malicious.
(b)  The attorney general shall defend an action brought against a member of the advisory council arising from an official act or omission under this subchapter, including an action instituted after the defendant's service with the advisory council has terminated.
(c)  The attorney general is not required to defend a member of the advisory council against an action relating to:
(1)  the disposition of a claim filed under this subchapter; or
(2)  any issue other than the applicability or effect of the limitation on liability under this section.
(d)  The commissioner on behalf of the fund, with the advice and consent of the advisory council, may contract with the attorney general under Chapter 771, Government Code, for legal services not covered by this section.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 26, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.356. Assessment on Outstanding Trust-Funded Contracts to Pay Claims

Sec. 154.356.  ASSESSMENT ON OUTSTANDING TRUST-FUNDED CONTRACTS TO PAY CLAIMS.  (a)  To pay a claim against the fund when the balance of the trust-funded contract account is insufficient to pay that claim, the advisory council may assess each permit holder that has outstanding trust-funded contracts an amount based on the permit holder's proportionate share of the purchasers' deposits on all outstanding trust-funded contracts determined as of the end of the preceding calendar year.
(b)  The assessments shall be deposited in the trust-funded contract account within the fund and administered by the department and the advisory council in accordance with commission rules.
(c)  An assessment made under this section is in addition to any assessment required by Section 154.352.
(d)  A seller whose permit is revoked or surrendered remains liable for any unpaid assessment made before the date of the revocation or surrender.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 2001, 77th Leg., ch. 867, Sec. 81, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 27, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.3565. Assessment on Outstanding Insurance-Funded Contracts to Pay Claims

Sec. 154.3565.  ASSESSMENT ON OUTSTANDING INSURANCE-FUNDED CONTRACTS TO PAY CLAIMS.  (a)  To pay a claim against the fund when the balance of the insurance-funded contract account is insufficient to pay that claim, the advisory council may assess each permit holder that has outstanding insurance-funded contracts an amount based on the permit holder's proportionate share of all outstanding insurance-funded contracts determined as of the end of the preceding calendar year.
(b)  The assessments shall be deposited in the insurance-funded contract account within the fund and administered by the department and the advisory council in accordance with commission rules.
(c)  An assessment made under this section is in addition to any assessment required by Section 154.3525.
(d)  A seller whose permit is revoked or surrendered remains liable for any unpaid assessment made before the date of the revocation or surrender.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 28, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.357. Claim Against Seller, Funeral Provider, or Depository

Sec. 154.357.  CLAIM AGAINST SELLER, FUNERAL PROVIDER, OR DEPOSITORY.  The department may assert a claim against a seller, funeral provider, or depository that commits a violation of this chapter that could result in a claim against the fund.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 4, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.358. Claims Against Fund

Sec. 154.358.  CLAIMS AGAINST FUND.  (a)  The payment of a claim or expense from the fund is a matter of privilege and not of right, and a person does not have a vested right in the fund as a beneficiary or otherwise.
(b)  A claim against the fund may be made by:
(1)  a purchaser of a prepaid funeral benefits contract;
(2)  a purchaser's estate;
(3)  a permit holder or funeral provider who assumes or performs a contract; or
(4)  a claimant for the benefit of a group of purchasers of prepaid funeral benefits contracts as part of a plan to arrange for another permit holder or funeral provider to assume the contract obligations.
(c)  An approved claim or expense relating to a trust-funded contract may be paid only from the fund's trust-funded contract account.  An approved claim or expense relating to an insurance-funded contract may be paid only from the fund's insurance-funded contract account.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 29, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 5, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.359. Permissible Uses of Fund

Sec. 154.359.  PERMISSIBLE USES OF FUND.  (a)  In addition to uses authorized by Section 154.354, the fund may be used to pay:
(1)  a loss attributable to the failure or inability of a permit holder or funeral provider to perform its obligations under a prepaid funeral benefits contract;
(2)  expenses of a plan to arrange for another permit holder or funeral provider to assume the obligations of the permit holder or funeral provider under a prepaid funeral benefits contract or a group of prepaid funeral benefits contracts if the commissioner finds, with the advice and consent of the advisory council, that the plan is reasonable and in the best interests of the contract beneficiaries;
(3)  administrative expenses related to servicing and handling outstanding prepaid funeral benefits contracts:
(A)  that have not been assumed by another permit holder; or
(B)  the obligations under which have not been assumed by another funeral provider;
(4)  expenses for administering the receivership of an insolvent permit holder or funeral provider if the permit holder's or funeral provider's assets are insufficient to pay those expenses; and
(5)  expenses to employ and compensate a consultant, an agent, legal counsel, an accountant, and any other person appropriate and consistent with the purpose of the fund, as determined by the advisory council.
(b)  The fund may not be required to pay any claimant an amount that exceeds the contractual obligations specified by the express written terms of the prepaid funeral benefits contract, including:
(1)  a claim based on marketing materials;
(2)  a claim based on side letters or other documents that do not comply with the requirements of this chapter;
(3)  a claim based on misrepresentation of the benefits conferred by the contract or a funding insurance policy; or
(4)  a claim for court costs, attorney's fees, penalties, or consequential or incidental damages.
(c)  A claim may not be approved for a loss to the extent the claim is insured, bonded, or otherwise covered, protected, or reimbursed from other sources, including coverage provided by the Texas Life and Health Insurance Guaranty Association under Chapter 463, Insurance Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 29, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 14 (S.B. 567), Sec. 11, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 6, eff. June 17, 2011.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.3595. Default by Funeral Provider

Sec. 154.3595.  DEFAULT BY FUNERAL PROVIDER.  (a)  This section applies to a permit holder that administers a prepaid funeral benefits contract for which:
(1)  the permit holder is not the funeral provider; and
(2)  there is an actual or anticipated failure or inability of the funeral provider to perform its obligations under the contract.
(a-1)  A permit holder to which this section applies shall notify each purchaser of an outstanding prepaid funeral benefits contract of any closure of the funeral provider named in the contract not later than the 90th day after the date of its receipt of notice of the closure.
(b)  A permit holder to which this section applies shall make a reasonable effort to find a substitute funeral provider willing to assume the contractual obligations of the defaulting funeral provider.  A reasonable effort includes:
(1)  identifying and contacting at least three funeral providers within the same community or geographic service area as the defaulting funeral provider;
(2)  if at least three funeral providers do not exist within the same community or geographic service area, identifying and contacting at least three funeral providers within a 50-mile radius of the defaulting funeral provider; and
(3)  for both Subdivisions (1) and (2), first contacting those funeral providers that the permit holder considers have services and facilities that are comparable to the defaulting funeral provider.
(c)  A permit holder that is unable to locate a substitute funeral provider as required by Subsection (b) shall submit information to the advisory council describing or identifying:
(1)  all prepaid funeral benefits contracts to which the defaulting funeral provider is a party;
(2)  to the extent known, the circumstances underlying the default by the original funeral provider and any attempt by the permit holder to address the default with the defaulting funeral provider;
(3)  any effort by the permit holder to find a substitute funeral provider, including:
(A)  the location and identity of each contacted funeral provider;
(B)  the terms offered to the funeral provider; and
(C)  the terms of any counteroffer or other response made by the funeral provider; and
(4)  other information known to the permit holder that the permit holder believes may be relevant or useful to the advisory council.
(d)  The permit holder shall cooperate with the department and the advisory council in facilitating selection of a substitute funeral provider by complying with any reasonable request for:
(1)  additional information;
(2)  assistance in negotiating with a potential substitute funeral provider; or
(3)  assistance in communicating with a purchaser of an affected prepaid funeral benefits contract.
Added by Acts 2011, 82nd Leg., R.S., Ch. 559 (H.B. 3004), Sec. 7, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 5, eff. September 1, 2013.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter H. Guaranty Fund › Section 154.360. Subrogation

Sec. 154.360.  SUBROGATION.  (a)  A person receiving a benefit under this subchapter, including a payment of or on account of a contractual obligation or provision of substitute or alternative prepaid funeral benefits, is considered to have assigned to the fund the rights under, and any cause of action relating to, the prepaid funeral benefits contract to the extent of the benefit received.  Notwithstanding this assignment by law, the commissioner may require a payee to execute a formal assignment of the person's rights and cause of action to the fund as a condition of receiving a right or benefit under this subchapter.
(b)  The fund retains all common law rights of subrogation and any other equitable or legal remedy that would have been available to a recipient of benefits from the fund with respect to a prepaid funeral benefits contract.
(c)  The commissioner, on behalf of the fund, may bring an action against any person and may employ and compensate a consultant, an agent, legal counsel, an accountant, or any other person the commissioner considers appropriate to collect a subrogated amount.  Payment shall be made from the appropriate account within the fund for these services.  Any recovery of a subrogated amount shall be deposited in the appropriate account within the fund.
Added by Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 29, eff. September 1, 2009.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.400. Investigation and Subpoena Authority

Sec. 154.400.  INVESTIGATION AND SUBPOENA AUTHORITY.  (a)  If the commissioner has a reasonable suspicion of a misallocation or defalcation of prepaid funeral funds or an unauthorized sale of prepaid funeral benefits, the commissioner may conduct investigations as the commissioner considers necessary or appropriate to determine whether:
(1)  a misallocation or defalcation of prepaid funeral funds has occurred; or
(2)  an unauthorized sale of prepaid funeral benefits has occurred.
(b)  The commissioner may issue a subpoena to compel the attendance and testimony of a person under oath or the production of documents related to an investigation conducted under Subsection (a).  The subpoena may require attendance and production at the department's offices in Austin, Texas, or at another place the commissioner designates.
(c)  A subpoena issued under this section to a financial institution is not subject to Section 59.006.
(d)  If a person refuses to obey a subpoena, a district court in Travis County or the county in which the subpoena was served, on application by the commissioner, may issue an order requiring the person to appear before the commissioner and produce documents or give evidence regarding the matter under investigation.
(e)  The commissioner may recover the reasonable costs incurred in connection with an investigation conducted under this section from the person who is the subject of the investigation if, after a hearing conducted as provided by Chapter 2001, Government Code, the trier of fact determines that the person violated this chapter or a rule adopted under this chapter.
Added by Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 6, eff. September 1, 2013.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 446 (S.B. 1822), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.401. Criminal Penalty for Certain Violations of Chapter

Sec. 154.401.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS OF CHAPTER.  (a)  Except as provided by Section 154.402, an officer, director, agent, or employee of a seller commits an offense if the person:
(1)  makes or attempts to make a contract in violation of this chapter;
(2)  refuses to allow an inspection of the seller's records relating to the sale of prepaid funeral benefits;
(3)  engages in fraud, deception, misrepresentation, or another dishonest practice in the sale of a contract subject to this chapter;  or
(4)  otherwise violates this chapter.
(b)  An offense under this section for which a penalty is not expressly provided by this subchapter is punishable by:
(1)  a fine of not less than $100 or more than $500;
(2)  confinement in the county jail for a term of not less than one month or more than six months;  or
(3)  both the fine and confinement.
(c)  Each violation of this chapter is a separate offense and shall be prosecuted individually.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.402. Criminal Penalty Relating to Deposit or Withdrawal of Money

Sec. 154.402.  CRIMINAL PENALTY RELATING TO DEPOSIT OR WITHDRAWAL OF MONEY.  (a)  A person commits an offense if the person:
(1)  fails to deposit money in compliance with this chapter;  or
(2)  withdraws money in a manner inconsistent with this chapter.
(b)  An offense under this section is punishable as if it were an offense under Section 32.45, Penal Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.403. Criminal Penalty for Failure to File Report

Sec. 154.403.  CRIMINAL PENALTY FOR FAILURE TO FILE REPORT.  (a)  An officer of a seller commits an offense if the officer fails or refuses to file an annual report required by Section 154.052 before the 31st day after the date the officer is notified by the department of the requirement.
(b)  An offense under this section is a misdemeanor and is punishable as provided by Section 154.401.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.404. Criminal Penalty for Failure to Deliver Money to Designated Agent

Sec. 154.404.  CRIMINAL PENALTY FOR FAILURE TO DELIVER MONEY TO DESIGNATED AGENT.  (a)  A seller or a person acting on behalf of a seller commits an offense if the seller or person:
(1)  collects money under a prepaid funeral benefits contract;  and
(2)  fails to deliver the money to a designated agent of the seller before the 31st day after the date it is collected.
(b)  An offense under this section is punishable as if it were an offense under Section 32.45, Penal Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 154 - Prepaid Funeral Services › Subchapter I. Criminal Penalties and Civil Remedies › Section 154.405. Criminal Penalty for Agent's Failure to Deposit Certain Money

Sec. 154.405.  CRIMINAL PENALTY FOR AGENT'S FAILURE TO DEPOSIT CERTAIN MONEY.  (a)  A designated agent of a seller commits an offense if the agent fails to deposit money collected under a prepaid funeral benefits contract before the 31st day after the date it is received by the agent.
(b)  It is an exception to the application of this section that the failure to make a deposit is inadvertent and is corrected before the 11th day after the date the seller discovers the failure.
(c)  An offense under this section is punishable as if it were an offense under Section 32.45, Penal Code.
Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.