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