1. (a) Definitions. Words and terms used in this subchapter that are defined in the Finance Code, §154.002, have the same meanings as defined therein. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Outstanding contracts--Unmatured, prepaid funeral benefit contracts. For purposes of determining fees that vary with the number of outstanding contracts, the number of outstanding contracts shall be the number reported by a seller in the most recent annual report on file with the department, subject to adjustments for errors or mistakes in such annual report. If a seller has not filed an annual report for the fiscal year immediately preceding the relevant determination date, the department shall determine, in its sole discretion based on reasonably obtainable and reliable information, the number of outstanding contracts.
   2. (2) Permit holder--A person having a valid permit to sell prepaid funeral benefits.
   3. (3) Seller--As defined in the Finance Code, §154.002, and also including, for purposes of this section pursuant to Finance Code, §154.107, a seller who has discontinued selling prepaid funeral benefits but still has outstanding contracts.

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. An applicant for a new prepaid funeral benefits permit, other than an applicant seeking a permit for the sole purpose of administering previously sold and outstanding contracts, shall pay a $2,500 fee. An applicant that administers previously sold and outstanding contracts and wishes to again sell prepaid funeral benefits shall pay the greater of a $2,500 fee or the fee calculated pursuant to paragraph (2) of this subsection. In addition to the application fee, an applicant shall pay any extraordinary costs incurred by the department pursuant to any out of state investigation of the applicant as required by the Finance Code, §154.102(3). Extraordinary costs shall be paid by the applicant within 20 days after written request by the department.
   2. (2) Renewal application fee. To renew an existing permit, or to acquire a new permit for the sole purpose of administering outstanding contracts, the applicant shall pay a fee of $100 plus $1.00 for every outstanding contract administered or held by the applicant in excess of 25 contracts, provided that the maximum fee shall not exceed $1,500.
   3. (3) Conversion application fee. An applicant for the conversion of a trust-funded prepaid funeral benefits operation to an insurance-funded prepaid funeral benefits operation shall pay a $1,000 fee per application. In the event additional processing time is required because the application is incomplete, the applicant shall pay the additional processing costs incurred in excess of the filing fee originally submitted, at the rate of $500 per eight-hour employee day, provided that the total fee cannot exceed $2,000. Until any such additional fee has been paid by the applicant, the application will be deemed incomplete and will not be considered.
3. (c) Severability. If any fee in this section or the manner of its calculation is determined to be unlawful or in excess of the authority of the department to adopt and impose, the remainder of this section shall be unaffected, and other fees specified herein shall continue to be due and collected.

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.