Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 82(R)

House Bill 3004

House Author:  Nash

Effective:  6-17-11

Senate Sponsor:  Carona

            House Bill 3004 amends the Finance Code to require a permit holder that administers a prepaid funeral benefits contract for which the permit holder is not the funeral provider and there is an actual or anticipated failure or inability of the funeral provider to perform its obligations under the contract to make a reasonable effort to find a substitute funeral provider willing to assume the contractual obligations of the defaulting funeral provider.  The bill describes elements that constitute a reasonable effort and requires a permit holder that is unable to locate a substitute funeral provider to submit to the advisory council a list of information relating to the defaulting provider and to cooperate with the Texas Department of Banking and the advisory council in facilitating selection of a substitute funeral provider.

            House Bill 3004 extends coverage under the prepaid funeral contract guaranty fund to the obligations of a third-party funeral provider under a prepaid funeral benefits contract, except the bill's provisions do not apply to a loss under a prepaid funeral benefits contract sold before the bill's effective date that arises from or relates to a default under the contract attributable to the funeral provider unless the funeral provider is also the contract seller or that arises from or relates to the bankruptcy receivership, seizure, or other failure of the funeral provider unless the funeral provider is also the contract seller.  The bill authorizes a deposit of the guaranty fund with certain entities to be made wholly or partly, rather than only in its entirety.

            House Bill 3004 removes the attorney general or the attorney general's representative as a member of the guaranty fund advisory council and authorizes the advisory council, under specified circumstances, to hold an open or closed meeting by telephone conference call, videoconference, or other similar telecommunication method.