| 1 | 1 | | 81R5828 KFF-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 3538 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to certain prepaid funeral benefit contracts. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter F, Chapter 154, Finance Code, is |
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| 10 | 10 | | amended by adding Section 154.265 to read as follows: |
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| 11 | 11 | | Sec. 154.265. DEFAULT UNDER CERTAIN CONTRACTS. (a) |
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| 12 | 12 | | Notwithstanding any other law, the purchaser of a trust-funded |
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| 13 | 13 | | prepaid funeral benefits contract may not be considered in default |
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| 14 | 14 | | under the contract if the purchaser has paid at least 85 percent of |
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| 15 | 15 | | the contract price. |
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| 16 | 16 | | (b) A funeral provider is not required to provide funeral |
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| 17 | 17 | | merchandise or services under a trust-funded prepaid funeral |
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| 18 | 18 | | benefits contract unless any remaining balance, including any |
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| 19 | 19 | | applicable finance charge, owed under the contract is paid before |
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| 20 | 20 | | the funeral service or the funeral provider agrees in writing to |
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| 21 | 21 | | another payment arrangement. |
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| 22 | 22 | | (c) This section does not affect a purchaser's right to |
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| 23 | 23 | | cancel a trust-funded prepaid funeral benefits contract. |
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| 24 | 24 | | SECTION 2. The change in law made by this Act applies only |
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| 25 | 25 | | to a contract that is entered into on or after the effective date of |
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| 26 | 26 | | this Act. A contract entered into before the effective date of this |
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| 27 | 27 | | Act is governed by the law in effect on the date the contract was |
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| 28 | 28 | | entered into, and the former law is continued in effect for that |
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| 29 | 29 | | purpose. |
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| 30 | 30 | | SECTION 3. This Act takes effect September 1, 2009. |
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