By Hupp                                               H.B. No. 1635
         76R5929 WP-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disclosure in a contract for prepaid funeral benefits.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 154.151(b), Finance Code, is amended to
 1-5     read as follows:
 1-6           (b)  A sales contract for prepaid funeral benefits must:
 1-7                 (1)  be in writing;
 1-8                 (2)  state the name of the funeral provider or other
 1-9     person primarily responsible for providing the prepaid funeral
1-10     benefits specified in the contract; [and]
1-11                 (3)  state the details of the prepaid funeral benefits
1-12     to be provided, including a description and specifications of the
1-13     material used in the caskets or grave vaults to be furnished; and
1-14                 (4)  contain in immediate proximity to the space
1-15     reserved in the contract for the signature of the purchaser a
1-16     statement in boldfaced type of a minimum size of 10 points in
1-17     substantially the following form:
1-18                 "UNLESS THE FUNERAL PROVIDER NAMED IN THIS CONTRACT
1-19           AGREES OTHERWISE, THE PURCHASER'S USE OF A FUNERAL PROVIDER
1-20           NOT NAMED IN THIS CONTRACT IS A CANCELLATION OF THIS CONTRACT
1-21           BY THE PURCHASER. IF THIS CONTRACT IS CANCELED BY THE
1-22           PURCHASER, THE PURCHASER IS NOT ENTITLED TO RECEIVE ANY
1-23           EARNINGS ON THE AMOUNT DEPOSITED IN TRUST PURSUANT TO THIS
1-24           CONTRACT."
 2-1           SECTION 2.  (a) This Act takes effect September 1, 1999.  The
 2-2     change in law made by this Act applies only to a contract formed on
 2-3     or after the effective date of this Act.
 2-4           (b)  A contract formed before the effective date of this Act
 2-5     is covered by the law in effect when the contract was formed, and
 2-6     the former law is continued in effect for that purpose.
 2-7           SECTION 3.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended.