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.