1. (a) Definitions.

   1. (1) Outstanding contracts--Unmatured, prepaid funeral benefit contracts.

   2. (2) Financially insolvent--

      1. (A) The inability to pay debts as they mature or pay obligations as they become due and payable; or
      2. (B) having debts in excess of assets.
   3. (3) You, Your or I--A person having a valid permit to sell prepaid funeral benefit contracts issued by the Department under §154.101 of the Finance Code, except that, for purposes of subsection (b)(1) of this section, "you," "your," or "I" means an applicant for a new prepaid funeral benefits permit.

2. (b) Application fees. The application fees set forth in this subsection have been set in accordance with the Finance Code, Chapter 154, for the purpose of defraying the cost of administering the Finance Code, Chapter 154. Except as otherwise provided in this subsection, all fees are due at the time the application is filed and are nonrefundable. An application submitted without the appropriate filing fee will be deemed incomplete and will not be considered.

   1. (1) New permit application fee. If you apply for a new prepaid funeral benefits permit, you must pay a $500 fee. In addition to the application fee, you must pay any extraordinary costs incurred by the department pursuant to any out of state investigation of you as required by the Finance Code, §154.102(3). You must pay any extraordinary costs within 20 days after written request by the department.
   2. (2) Renewal fee. The renewal fee for an existing permit is based on the number of outstanding contracts as of the last examination, as specified in the Renewal Fee Schedule following this paragraph. You must pay the renewal fee by ACH debit on or before March 1 of each year, or by another method if directed to do so by the department. At least 15 days prior to the scheduled ACH transfer, the department will send you a notice specifying the amount of the renewal fee and the date the department will initiate payment of the fee by ACH debit, which will be March 1 of each year or, if March 1 is a holiday, the last business day immediately preceding March 1.
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   3. (3) If you are experiencing financial difficulties, you may be able to obtain a one-year reduction in the amount of your renewal fee. To request a one-year reduction in the renewal fee, you must file a written application as described in subparagraph (A) of this paragraph and the commissioner must find that the application satisfies the requirements described in subparagraph (B) of this paragraph. The commissioner has discretion to decide whether to reduce your renewal fee and to decide the amount of any reduction.

      1. (A) To request a one-year reduction in the renewal fee, you must:

         1. (i) not later than the date the current renewal fee is due, file with the department a written application accompanied by a written business recovery plan and other supporting documentation sufficient to demonstrate that you satisfy each factor described in subparagraph (B) of this paragraph; and
         2. (ii) file any additional documentation the department requests not later than the seventh day after the date you receive the request.

      2. (B) The commissioner will not grant you a one-year reduction of the renewal fee unless the commissioner finds, based on the application and supporting documentation, that:

         1. (i) you are financially insolvent or payment of the full renewal fee will cause you to become financially insolvent, and your current or impending financial insolvency is temporary; and
         2. (ii) you reasonably expect to have the ability to pay the renewal fee in full by at least the third year after the year in which the request is made, based on a written business recovery plan that is reasonable and attainable.
   4. (4) Conversion application fee. If you apply to convert a trust-funded prepaid funeral benefits operation to an insurance-funded prepaid funeral benefits operation, you must pay a $1,000 fee per application. In the event additional processing time is required because the application is incomplete, you must pay the additional processing costs incurred in excess of the filing fee originally submitted, at the rate of $600 per eight-hour employee day, provided that the total fee cannot exceed $2,000. Until you have paid any such additional fee, the application will be deemed incomplete and will not be considered.

Source Note:The provisions of this §25.23 adopted to be effective February 24, 1994, 19 TexReg 1037; amended to be effective August 18, 1994, 19 TexReg 6092; amended to be effective November 17, 1997, 22 TexReg 10958; amended to be effective July 11, 2002, 27 TexReg 5963; amended to be effective March 6, 2003, 28 TexReg 1834; amended to be effective September 9, 2004, 29 TexReg 8505; amended to be effective November 10, 2005, 30 TexReg 7210.