1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Department
 1-3     of Banking and the regulation of certain financial institutions and
 1-4     businesses; providing an administrative penalty.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 12.107, Finance Code, is amended to read
 1-7     as follows:
 1-8           Sec. 12.107.  CONFLICT OF INTEREST.  (a)  In this section,
 1-9     "Texas trade association" means a cooperative and voluntarily
1-10     joined association of business or professional competitors in this
1-11     state that:
1-12                 (1)  is primarily designed to assist its members and
1-13     its industry or profession in dealing with mutual business or
1-14     professional problems and in promoting their common interests; and
1-15                 (2)  includes business and professional competitors
1-16     located in this state among its members.
1-17           (b)  A person may not be a department employee if:
1-18                 (1)  the person is an officer, employee, or paid
1-19     consultant of a Texas trade association in an industry regulated by
1-20     the department; or
1-21                 (2)  the person's spouse is an officer, manager, or
1-22     paid consultant of a Texas trade association in an industry
1-23     regulated by the department.
1-24           (c)  A person may not act as the general counsel to the
1-25     department if the person is required to register as a lobbyist
 2-1     under Chapter 305, Government Code, because of the person's
 2-2     activities for compensation on behalf of a profession related to
 2-3     the operation of the department [An officer or employee of the
 2-4     department may not be:]
 2-5                 [(1)  an officer, employee, or paid consultant of a
 2-6     trade association in an industry regulated by the department; or]
 2-7                 [(2)  related within the second degree by affinity or
 2-8     consanguinity, as determined under Chapter 573, Government Code, to
 2-9     a person who is an officer, employee, or paid consultant of a trade
2-10     association in an industry regulated by the department].
2-11           (d) [(b)]  Before the 11th day after the date on which an
2-12     employee begins employment with the department, the employee shall
2-13     read the conflict-of-interest statutes applicable to employees of
2-14     the department and sign a notarized affidavit stating that the
2-15     employee has read those statutes.
2-16           SECTION 2.  Section 12.108, Finance Code, is amended to read
2-17     as follows:
2-18           Sec. 12.108.  CONSUMER INFORMATION AND COMPLAINTS.  (a)  The
2-19     banking commissioner shall:
2-20                 (1)  prepare information of consumer interest
2-21     describing:
2-22                       (A)  the regulatory functions of the department;
2-23     and
2-24                       (B)  the department's procedures by which
2-25     consumer complaints are filed with and resolved by the department;
2-26     and
 3-1                 (2)  make the information available to the public and
 3-2     appropriate state agencies.
 3-3           (b)  The department shall maintain a file on each written
 3-4     complaint filed with the department.  The file must include:
 3-5                 (1)  the name of the person who filed the complaint;
 3-6                 (2)  the date the complaint is received by the
 3-7     department;
 3-8                 (3)  the subject matter of the complaint;
 3-9                 (4)  the name of each person contacted in relation to
3-10     the complaint;
3-11                 (5)  a summary of the results of the review or
3-12     investigation of the complaint; and
3-13                 (6)  an explanation of the reason the file was closed.
3-14           (c)  The department shall provide to the person filing the
3-15     complaint and to each person who is a subject of the complaint a
3-16     written summary of the department's policies and procedures
3-17     relating to complaint investigation and resolution [banking
3-18     commissioner shall keep an information file about each complaint
3-19     filed with the commissioner relating to an entity regulated by the
3-20     department.]
3-21           [(c)  At least quarterly until final disposition of any
3-22     written complaint filed with the banking commissioner relating to
3-23     an entity regulated by the department, the commissioner shall
3-24     notify the parties to the complaint of the status of the complaint
3-25     unless the notice would jeopardize an undercover investigation].
3-26           SECTION 3.  Section 12.109, Finance Code, is amended to read
 4-1     as follows:
 4-2           Sec. 12.109.  SUNSET PROVISION.  The office of banking
 4-3     commissioner is subject to Chapter 325, Government Code (Texas
 4-4     Sunset Act).  Unless continued in existence as provided by that
 4-5     chapter, the office is abolished September 1, 2013 [2001].
 4-6           SECTION 4.  Subchapter B, Chapter 12, Finance Code, is
 4-7     amended by adding Sections 12.111, 12.112, and 12.113 to read as
 4-8     follows:
 4-9           Sec. 12.111.  STANDARDS OF CONDUCT.  The banking commissioner
4-10     or the banking commissioner's designee shall provide to agency
4-11     employees, as often as necessary, information regarding the
4-12     requirements for office or employment under this chapter, including
4-13     information regarding a person's responsibilities under applicable
4-14     laws relating to standards of conduct for state officers or
4-15     employees.
4-16           Sec. 12.112.  EQUAL EMPLOYMENT OPPORTUNITY POLICY.  (a)  The
4-17     banking commissioner or the banking commissioner's designee shall
4-18     prepare and maintain a written policy statement that implements a
4-19     program of equal employment opportunity to ensure that all
4-20     personnel decisions are made without regard to race, color,
4-21     disability, sex, religion, age, or national origin.
4-22           (b)  The policy statement must include:
4-23                 (1)  personnel policies, including policies relating to
4-24     recruitment, evaluation, selection, training, and promotion of
4-25     personnel, that show the intent of the department to avoid the
4-26     unlawful employment practices described by Chapter 21, Labor Code;
 5-1     and
 5-2                 (2)  an analysis of the extent to which the composition
 5-3     of the department's personnel is in accordance with state and
 5-4     federal law and a description of reasonable methods to achieve
 5-5     compliance with state and federal law.
 5-6           (c)  The policy statement must:
 5-7                 (1)  be updated annually;
 5-8                 (2)  be reviewed by the state Commission on Human
 5-9     Rights for compliance with Subsection (b)(1); and
5-10                 (3)  be filed with the governor's office.
5-11           Sec. 12.113.  EMPLOYEE INCENTIVE PROGRAM.  The banking
5-12     commissioner or the banking commissioner's designee shall provide
5-13     to agency employees information and training on the benefits and
5-14     methods of participation in the state employee incentive program.
5-15           SECTION 5.  Section 154.109, Finance Code, is amended by
5-16     adding Subsection (d) to read as follows:
5-17           (d)  The commissioner may place on probation a permit holder
5-18     whose permit is suspended.  If a permit suspension is probated, the
5-19     commissioner may require the permit holder:
5-20                 (1)  to report regularly to the department on matters
5-21     that are the basis of the probation; or
5-22                 (2)  to limit its activities as prescribed by the
5-23     commissioner.
5-24           SECTION 6.  Section 154.151, Finance Code, is amended by
5-25     adding Subsections (d) and (e) to read as follows:
5-26           (d)  A sales contract for prepaid funeral benefits, whether
 6-1     in English or Spanish, must be written in plain language designed
 6-2     to be easily understood by the average consumer.  The contract must
 6-3     be printed in an easily readable font and type size.  The
 6-4     department shall provide model contracts complying with this
 6-5     subsection and shall enforce this subsection.
 6-6           (e)  The Finance Commission of Texas by rule shall establish
 6-7     a standard disclosure that must be included in each contract to
 6-8     inform purchasers of the goods and services that will be provided
 6-9     or excluded under the contract and the circumstances under which
6-10     the contract may be modified after death of the beneficiary.
6-11           SECTION 7.  Subsection (d), Section 154.155, Finance Code, is
6-12     amended to read as follows:
6-13           (d)  The purchaser is entitled to receive [only] the actual
6-14     amount paid by the purchaser and half of all earnings attributable
6-15     to that money, less the amount permitted to be retained as provided
6-16     by Section 154.252, except as provided by Subsection (e) and by
6-17     Sections 154.205 and 154.254.
6-18           SECTION 8.  Subchapter D, Chapter 154, Finance Code, is
6-19     amended by adding Section 154.1551 to read as follows:
6-20           Sec. 154.1551.  MODIFICATION AT TIME OF FUNERAL.  (a)  The
6-21     funeral merchandise and services to be provided by the seller under
6-22     a fully paid prepaid funeral benefits contract may be modified
6-23     after the death of the beneficiary if the modification complies
6-24     with Subsection (b) or is otherwise agreed to in a writing signed
6-25     by the seller and the person charged with the disposition of the
6-26     beneficiary's remains by Section 711.002(a), Health and Safety
 7-1     Code, except that:
 7-2                 (1)  if the purchaser of the contract is also the
 7-3     beneficiary:
 7-4                       (A)  the contracted funeral merchandise and
 7-5     services may not be modified if the contract contains a clause that
 7-6     prohibits modification; and
 7-7                       (B)  a modification may not change the type of
 7-8     disposition specified by the purchaser in the contract, whether by
 7-9     burial, cremation, or another alternative by which the purchaser's
7-10     remains attain their final resting place, as provided by Section
7-11     711.002(g), Health and Safety Code; and
7-12                 (2)  the value attributed to any contracted funeral
7-13     merchandise or service that is surrendered or exchanged in a
7-14     modification must be computed on a comparable time-price basis with
7-15     the price charged for substituted funeral merchandise or service
7-16     provided as part of the modification.
7-17           (b)  The person charged with the disposition of the
7-18     beneficiary's remains by Section 711.002(a), Health and Safety
7-19     Code, may make reasonable modifications to the funeral merchandise
7-20     and services provided under a prepaid funeral contract at the time
7-21     the funeral is performed, not to exceed 10 percent of the original
7-22     purchase price of the contract.  This subsection does not require
7-23     the seller to:
7-24                 (1)  refund a portion of the funds attributable to the
7-25     contract if the seller grants credit for surrender or exchange as
7-26     provided by Subsection (a)(2);
 8-1                 (2)  provide substituted or additional funeral
 8-2     merchandise or services in excess of credits granted under
 8-3     Subsection (a)(2) unless the seller receives additional
 8-4     compensation at current prices; or
 8-5                 (3)  apply a portion of the funds attributable to the
 8-6     contract or credits granted under Subsection (a)(2) to another
 8-7     contract or funeral.
 8-8           (c)  The person charged with the disposition of the
 8-9     beneficiary's remains by Section 711.002(a), Health and Safety
8-10     Code, may not modify a prepaid funeral benefits contract that has
8-11     not been fully paid at the time of death of the beneficiary except
8-12     as agreed to in a writing signed by the seller and the person.
8-13           SECTION 9.  Section 154.156, Finance Code, is amended to read
8-14     as follows:
8-15           Sec. 154.156.  WAIVER OF RIGHT OF CANCELLATION.  (a)  The
8-16     purchaser of a prepaid funeral benefits contract may irrevocably
8-17     waive the purchaser's right to cancel the contract under Section
8-18     154.155.  The waiver must [may be a part of the contract or] be in
8-19     a separate writing signed by the purchaser and the seller not
8-20     earlier than the 15th day after the date of the purchase of the
8-21     contract.  The form of the waiver must comply with the requirements
8-22     for the form of a sales contract under Section 154.151.
8-23           (b)  A waiver made under this section does not affect:
8-24                 (1)  a right the purchaser has under the contract to
8-25     change the beneficiary of the contract;
8-26                 (2)  the purchaser's right to cancel the contract under
 9-1     Section 154.413; [or]
 9-2                 (3)  an abandonment of the money paid by the purchaser
 9-3     under the contract as provided by Subchapter G; or
 9-4                 (4)  a modification to the contract as provided by
 9-5     Section 154.1551.
 9-6           SECTION 10.  Section 154.252, Finance Code, is amended to
 9-7     read as follows:
 9-8           Sec. 154.252.  RETENTION OF MONEY FOR EXPENSES.  The [To
 9-9     cover its selling expenses, service costs, and general overhead,
9-10     the] seller of a trust-funded prepaid funeral benefits contract may
9-11     retain for the seller's use and benefit an amount not to exceed
9-12     one-half of all money collected or paid until the seller has
9-13     received an amount equal to 10 percent of the total amount the
9-14     purchaser agreed to pay under the contract.
9-15           SECTION 11.  Section 154.406, Finance Code, is amended to
9-16     read as follows:
9-17           Sec. 154.406.  ADMINISTRATIVE PENALTY.  (a)  After notice and
9-18     opportunity for hearing, the commissioner may impose an
9-19     administrative penalty on a person who:
9-20                 (1)  violates this chapter or a final order of the
9-21     commissioner or rule of the Finance Commission of Texas
9-22     [commissioner or department;] and
9-23                 [(2)]  does not correct the violation before the 31st
9-24     day after the date the person receives written notice of the
9-25     violation from the department; or
9-26                 (2)  engages in a pattern of violations, as determined
 10-1    by the commissioner.
 10-2          (b)  The amount of the penalty for each violation may not
 10-3    exceed $1,000 for each day the violation occurs.
 10-4          (c)  In determining the amount of the penalty, the
 10-5    commissioner shall consider the seriousness of the violation, the
 10-6    person's history of violations, and the person's good faith in
 10-7    attempting to comply with this chapter.
 10-8          (d)  The imposition of a penalty under this section is
 10-9    subject to judicial review as a contested case under Chapter 2001,
10-10    Government Code.
10-11          (e)  The commissioner may collect the penalty in the same
10-12    manner that a money judgment is enforced in district court.
10-13          SECTION 12.  Subchapter I, Chapter 154, Finance Code, is
10-14    amended by adding Section 154.4061 to read as follows:
10-15          Sec. 154.4061.  PATTERN OF WILFUL DISREGARD.  (a)  If, after
10-16    a hearing conducted as provided by Chapter 2001, Government Code,
10-17    the trier of fact finds that a violation of this chapter or a rule
10-18    of the Finance Commission of Texas establishes a pattern of wilful
10-19    disregard for the requirements of this chapter or rules of the
10-20    finance commission, the trier of fact shall recommend to the
10-21    commissioner that the maximum administrative penalty permitted
10-22    under Section 154.406 be imposed on the person committing the
10-23    violation or that the commissioner cancel or not renew the person's
10-24    permit under this chapter.
10-25          (b)  For the purposes of this section, violations corrected
10-26    as provided by Section 154.406 may be included in determining
 11-1    whether a pattern of wilful disregard for the requirements of this
 11-2    chapter or rules of the finance commission exists.
 11-3          SECTION 13.  Subchapter A, Chapter 712, Health and Safety
 11-4    Code, is amended by adding Section 712.008 to read as follows:
 11-5          Sec. 712.008.  RULES.  The Finance Commission of Texas may
 11-6    adopt rules to enforce and administer this chapter, including rules
 11-7    establishing fees to defray the costs of enforcing and
 11-8    administering this chapter.
 11-9          SECTION 14.  Subchapter A, Chapter 712, Health and Safety
11-10    Code, is amended by adding Section 712.009 to read as follows:
11-11          Sec. 712.009.  LIMITATIONS ON BURIALS; DAMAGES.  (a)  The
11-12    Finance Commission of Texas shall adopt rules to administer and
11-13    enforce this section.
11-14          (b)  An individual, corporation, partnership, firm, trust, or
11-15    association that operates or owns a perpetual care cemetery may not
11-16    inter the remains of an individual who may have caused the death of
11-17    another person if:
11-18                (1)  the victim is interred in that cemetery; and
11-19                (2) the person having the right to control the
11-20    disposition of the victim's remains under Section 711.002(a) gives
11-21    written notice to the cemetery requesting that the individual not
11-22    be interred in that cemetery if:
11-23                      (A)  the individual was convicted under Section
11-24    19.02, 19.03, 19.05, or 49.08, Penal Code, for causing the death of
11-25    the victim, or convicted under a similar statute of another state;
11-26    or
 12-1                      (B)  the individual was identified as causing the
 12-2    death of the victim, in violation of a provision described by
 12-3    Paragraph (A), by the medical examiner or law enforcement agency
 12-4    having jurisdiction over the offense, and the individual dies
 12-5    before being convicted of the offense.
 12-6          (c)  An individual, corporation, partnership, firm, trust, or
 12-7    association that violates Subsection (b) is liable to the person
 12-8    having the right to control the disposition of the victim's remains
 12-9    under Section 711.002(a) for:
12-10                (1)  any actual damages incurred;
12-11                (2)  punitive damages not to exceed $10,000; and
12-12                (3)  reasonable attorney's fees and court costs
12-13    incurred in an effort to enforce compliance with Subsection (b).
12-14          (d)  Damages under Subsection (c) may not be assessed if the
12-15    individual, corporation, partnership, firm, trust, or association
12-16    that operates the cemetery proves by a preponderance of the
12-17    evidence that:
12-18                (1)  the cemetery is the only cemetery serving the
12-19    municipality or county in which the victim and individual causing
12-20    the victim's death lived; and
12-21                (2)  the bodies of the victim and individual causing
12-22    the victim's death were placed as far apart as possible in, or in
12-23    different parts of, the cemetery.
12-24          (e)  An individual, corporation, partnership, firm, trust, or
12-25    association operating or owning a perpetual care cemetery and
12-26    barred from interring remains of an individual under this section
 13-1    may not be held liable for damages by a person having the right to
 13-2    control the disposition of the individual's remains under Section
 13-3    711.002(a), including damages for failure to provide for interment
 13-4    under a contract executed before the delivery of the written notice
 13-5    under Subsection (b)(2).
 13-6          (f)  A notice under Subsection (b)(2) expires seven years
 13-7    after the date the notice is delivered.  A new notice may be
 13-8    delivered on the expiration of each previous notice.
 13-9          SECTION 15.  Section 712.042, Health and Safety Code, is
13-10    amended to read as follows:
13-11          Sec. 712.042.  FEES.  On filing a statement of funds under
13-12    Section 712.041, a corporation shall pay the commissioner a
13-13    reasonable and necessary fee set by rule adopted by the Finance
13-14    Commission of Texas under Section 712.008 [annually by the
13-15    commissioner] to defray the cost of administering this chapter.
13-16          SECTION 16.  Section 712.044, Health and Safety Code, is
13-17    amended to read as follows:
13-18          Sec. 712.044.  EXAMINATION OF [FUND] RECORDS; EXAMINATION
13-19    FEES AND EXPENSES.  (a)  The commissioner may examine the books and
13-20    records of a corporation relating to its fund, including deposits
13-21    to or withdrawals from the fund, income of the fund, and uses and
13-22    expenditures of that income, [shall be examined] annually or more
13-23    [as] often as necessary to protect the interest of plot owners.  In
13-24    addition, the commissioner may examine consumer complaint files
13-25    relating to the fund or to discharge of the corporation's perpetual
13-26    care responsibilities, minutes of the corporation's board of
 14-1    directors, cemetery dedication statements and plat maps, and lawn
 14-2    crypt construction contracts and specifications [by the
 14-3    commissioner.  The examination shall cover the period of time from
 14-4    the date of the last examination of the corporation's books and
 14-5    records relating to its fund].
 14-6          (b)  A corporation that is examined under this section shall
 14-7    make the specified [its] books and records [relating to its fund]
 14-8    available for examination by the banking department upon reasonable
 14-9    notice to the corporation and shall pay to the commissioner for the
14-10    examination a reasonable and necessary fee set by rules adopted by
14-11    the Finance Commission of Texas under Section 712.008 [annually by
14-12    the commissioner] to defray the cost of administering this chapter.
14-13          SECTION 17.  Subsections (a), (b), and (c), Section 712.0441,
14-14    Health and Safety Code, are amended to read as follows:
14-15          (a)  After notice and opportunity for hearing, the
14-16    commissioner may impose an administrative penalty on a person who:
14-17                (1)  violates this chapter or a final order of the
14-18    commissioner or rule of the Finance Commission of Texas and does
14-19    not correct the violation before the 31st day after the date the
14-20    person receives written notice of the violation from the banking
14-21    department; or
14-22                (2)  engages in a pattern of violations, as determined
14-23    by the commissioner.
14-24          (b)  The amount of the penalty for each violation may not
14-25    exceed $1,000 for each day the violation occurs.
14-26          (c)  In determining the amount of the penalty, the
 15-1    commissioner shall consider the seriousness of the violation, the
 15-2    person's history of violations, and the person's good faith in
 15-3    attempting to comply with this chapter.  The imposition of a
 15-4    penalty under this section is subject to judicial review as a
 15-5    contested case under Chapter 2001, Government Code.  The
 15-6    commissioner may collect the penalty in the same manner that a
 15-7    money judgment is enforced in district court.  [A corporation shall
 15-8    be subject to a civil penalty upon the occurrence of any of the
 15-9    following violations:]
15-10                [(1)  the corporation does not make a deposit in its
15-11    fund as required by Section 712.028;]
15-12                [(2)  the corporation does not file a statement of
15-13    funds as required by Section 712.041; or]
15-14                [(3)  the corporation does not pay the filing fee as
15-15    required by Section 712.042.]
15-16          [(b)  The trustee of a fund shall be subject to a civil
15-17    penalty upon the occurrence of either of the following violations:]
15-18                [(1)  the trustee does not file a report required by
15-19    the commissioner under Section 712.043 within 30 days after the
15-20    date of the commissioner's request; or]
15-21                [(2)  the fund does not comply with this chapter.]
15-22          [(c)  The civil penalty that may be imposed under Subsection
15-23    (a) or (b) shall not exceed $250 per violation for each day that
15-24    the violation persists, provided, that the aggregate civil penalty
15-25    for all violations shall not exceed $500 per day.  A corporation or
15-26    trustee shall have no civil penalty liability if within 30 days
 16-1    after receiving written notice from the commissioner of the
 16-2    violation the corporation or trustee corrects such violation by
 16-3    performing the required duty or act.  Any such civil penalty may be
 16-4    imposed by the commissioner after notice and opportunity for
 16-5    hearing in accordance with the procedures for a contested case
 16-6    hearing under the Administrative Procedure and Texas Register Act.
 16-7    In determining the amount of the penalty, the commissioner shall
 16-8    consider the seriousness of the violation and the good faith of the
 16-9    corporation or trustee in its attempts to achieve compliance.  The
16-10    amount of such penalty may be collected by the commissioner in the
16-11    same manner that money judgments are enforced in the district
16-12    courts of this state.]
16-13          SECTION 18.  Subchapter C, Chapter 712, Health and Safety
16-14    Code, is amended by adding Section 712.0442 to read as follows:
16-15          Sec. 712.0442.  PATTERN OF WILFUL DISREGARD.  (a)  If, after
16-16    a hearing conducted as provided by Chapter 2001, Government Code,
16-17    the trier of fact finds that a violation of this chapter or a rule
16-18    of the Finance Commission of Texas establishes a pattern of wilful
16-19    disregard for the requirements of this chapter or rules of the
16-20    finance commission, the trier of fact shall recommend to the
16-21    commissioner that the maximum administrative penalty permitted
16-22    under Section 712.0441 be imposed on the person committing the
16-23    violation or that the commissioner cancel or not renew the person's
16-24    permit under Chapter 154, Finance Code, if the person holds such a
16-25    permit.
16-26          (b)  For the purposes of this section, violations corrected
 17-1    as provided by Section 712.0441 may be included in determining
 17-2    whether a pattern of wilful disregard for the requirements of this
 17-3    chapter or rules of the finance commission exists.
 17-4          SECTION 19.  Article 21.07-1, Insurance Code, is amended by
 17-5    adding Section 5B to read as follows:
 17-6          Sec. 5B.  INSURANCE FUNDED PREPAID FUNERAL CONTRACT SALES.
 17-7    Notwithstanding any other provision of this code, a funeral home
 17-8    employee or other person who has a funeral prearrangement life
 17-9    insurance agent license or a license to sell life insurance not
17-10    exceeding $15,000 and who writes only life insurance policies and
17-11    fixed annuity contracts to secure the delivery of funeral services
17-12    and merchandise under prepaid funeral contracts regulated by the
17-13    Texas Department of Banking under Chapter 154, Finance Code, is not
17-14    required to comply with any continuing education requirements in
17-15    order to maintain such a license, except that the appointing
17-16    insurance company must educate its appointed agents about any new
17-17    products sold by the licensed agent to fund prepaid funeral
17-18    contracts.  Such a licensee may be appointed by more than one
17-19    insurance company.
17-20          SECTION 20.  Subchapter A, Chapter 4, Business & Commerce
17-21    Code, is amended by adding Section 4.112 to read as follows:
17-22          Sec. 4.112.  PAYMENT OF CHECK AT PAR.  (a)  Except as
17-23    otherwise provided by Chapter 3 or this chapter, a payor bank shall
17-24    pay a check drawn on it against an account with a sufficient
17-25    balance at par without regard to whether the payee holds an account
17-26    at the bank.
 18-1          (b)  This section does not prohibit a bank from requiring
 18-2    commercially reasonable verification of the payee's identity before
 18-3    settlement of the check.
 18-4          (c)  In addition to any remedy provided by law, the banking
 18-5    commissioner, in coordination with the Finance Commission of Texas,
 18-6    shall ensure that payor banks comply with the requirements of this
 18-7    section.
 18-8          SECTION 21.  (a)  The changes in law made by this Act to
 18-9    Subsection (d), Section 154.155, Finance Code, do not apply to
18-10    cancellation of a contract that was executed and binding on all
18-11    parties before September 1, 2001.  Such a cancellation is governed
18-12    by the law in effect when the contract was executed, and the former
18-13    law is continued in effect for that purpose.
18-14          (b)  The changes in law made by this Act to Section 154.252,
18-15    Finance Code, do not apply to a contract that was executed and
18-16    binding on all parties before September 1, 2001.  Such a contract
18-17    is governed by the law in effect when the contract was executed,
18-18    and the former law is continued in effect for that purpose.
18-19          SECTION 22.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 314 passed the Senate on
         March 29, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 24, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 314 passed the House, with
         amendments, on May 17, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor