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 154.412. Seizure of Prepaid Funeral Accounts and Records

Sec. 154.412.  SEIZURE OF PREPAID FUNERAL ACCOUNTS AND RECORDS.  (a)  The  commissioner may issue an order to seize accounts in which prepaid funeral funds, including earnings, may be held and may issue an order to seize the records that relate to the sale of prepaid funeral benefits if the commissioner finds, by examination or other credible evidence, that the person:
(1)  failed to deposit or remit money in accordance with Subchapter E or F;
(2)  misappropriated, converted, or illegally withheld or failed or refused to pay on demand money entrusted to the person that belongs to the beneficiary under a prepaid funeral benefits contract;
(3)  refused to submit to examination by the department;
(4)  was the subject of an order to cancel, suspend, or refuse to renew a permit; or
(5)  does not hold a permit or transferred the ownership of its business to another person who does not hold a permit.
(b)  An order shall be served on the person named in the order by certified mail, return receipt requested, to the last known address of the person.
(c)  An order takes effect immediately, and remains in effect unless stayed by the commissioner, if the commissioner finds that immediate and irreparable harm is threatened to the public or a beneficiary under a prepaid funeral benefits contract.  If such a threat does not exist, the order must state the effective date, which may not be before the 16th day after the date the order is mailed.
(c-1)  An emergency order remains in effect unless stayed by the commissioner.  The person named in the order may request in writing an opportunity for a hearing to show that the emergency order should be stayed.  The written request for a hearing must be filed with the commissioner not later than the 30th day after the date on which the order is hand-delivered or the order is mailed, whichever date is earlier.  On receipt of the request, the commissioner shall set a time before the 22nd day after the date the commissioner received the request, unless extended at the request of the person named in the order.  The hearing is an administrative hearing relating to the findings that support immediate effect of the order.
(d)  A nonemergency order takes effect as proposed unless the person named in the order requests a hearing not later than the 15th day after the date the order is mailed.
(e)  Premiums received on the disposition of a contract related to the seizure of prepaid funeral money shall be handled as provided by Sections 154.111 and 154.413.
(f)  After the issuance of an order under this section, the commissioner may initiate an administrative claim for ancillary relief, including a claim for:
(1)  costs incurred in the administration, transfer, or other disposition of the seized assets and records; or
(2)  costs reasonably expected to be incurred in connection with the administration and performance of any outstanding prepaid funeral benefits contracts sold by a person subject to the order.
(g)  The remedy provided by Subsection (f) is not exclusive and does not limit the commissioner's discretion to seek an additional remedy authorized under this subchapter.
(h)  On certification by the commissioner, a record seized as provided by Subsection (a) or a record created by or filed with the department in connection with a seizure is admissible as evidence in any proceeding before the commissioner without prior proof of its correctness and without other proof.  The certified record or a certified copy of the record is prima facie evidence of the facts contained in the record.  This subsection does not limit another provision of this subtitle or a provision of another law that provides for the admission of evidence or its evidentiary value.
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. 32, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1190 (H.B. 3762), Sec. 33, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 39 (S.B. 297), Sec. 11, eff. September 1, 2013.