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.