By Brimer H.B. No. 2186
74R6167 CLG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain sellers of prepaid funeral benefits.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 512, Acts of the 54th Legislature,
1-5 Regular Session, 1955 (Article 548b, Vernon's Texas Civil
1-6 Statutes), is amended by amending Section 7 and adding Section 7A
1-7 to read as follows:
1-8 Sec. 7. ANNUAL REPORT. The Department may require an annual
1-9 report from any permit holder in such form as the Department may
1-10 require. Any seller who has discontinued the sale of
1-11 insurance-funded prepaid funeral benefits but still has outstanding
1-12 contracts is not required to renew the seller's permit. The
1-13 Department may require the seller to place the seller's permit on
1-14 inactive status. The Department <shall be required to obtain a
1-15 renewal of its permit, and the Department> shall require annual
1-16 reports of a <said> seller who has an inactive permit until all
1-17 previously sold <such> contracts have been fully discharged. If
1-18 any officer of a seller fails or refuses to file an annual report
1-19 or to cause it to be filed within 30 days after he has been
1-20 notified of the requirement by the Department, he shall be guilty
1-21 of a misdemeanor and a violation of this Act and shall be punished
1-22 by those means prescribed in Section 9 of this Act.
1-23 Sec. 7A. PERMIT ON INACTIVE STATUS. (a) A seller required
1-24 to have the seller's permit placed on inactive status under Section
2-1 7 of this article shall annually apply to the Department for an
2-2 inactive status permit until the seller does not have any
2-3 outstanding insurance-funded prepaid funeral benefits contracts.
2-4 (b) The seller shall attach to the application an affidavit
2-5 certifying that:
2-6 (1) the seller has not sold any insurance-funded
2-7 contracts in the 12 months preceding the application date; and
2-8 (2) the seller will not sell any insurance-funded
2-9 contracts in the 12 months after the date on which the inactive
2-10 status permit is issued to the seller.
2-11 (c) A person with an inactive permit is excused from paying
2-12 renewal fees on the permit.
2-13 (d) The Department may charge a filing fee in an amount not
2-14 to exceed $50 each year to defray the cost of processing an
2-15 application under this section.
2-16 (e) A seller who holds an inactive status permit may return
2-17 to active status by applying to the Department, paying the permit
2-18 renewal fee, and complying with the requirements for permit renewal
2-19 under Section 3 of this Act.
2-20 (f) A seller who signs an affidavit under Subsection (b) of
2-21 this section commits an offense if the seller sells an
2-22 insurance-funded contract in the 12 months after the date on which
2-23 the inactive status permit is issued to the seller. An offense
2-24 under this subsection is a Class C misdemeanor.
2-25 SECTION 2. This Act takes effect September 1, 1995.
2-26 SECTION 3. The importance of this legislation and the
2-27 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.