1. (a) Definitions.

   1. (1) Examination--the process of evaluating the books and records of a permit holder relating to its sale of prepaid funeral benefit contracts to provide all safeguards to protect the prepaid funds and to assure that the funds will be available to pay for prearranged funeral services.
   2. (2) Fiscal year--the 12-month period from September 1st to August 31st.
   3. (3) You, Your or I--a person having a valid permit to sell prepaid funeral benefit contracts issued by the department under Section 154.101 of the Finance Code.

2. (b) As a prepaid funeral benefits seller, what fees must I pay for department examinations?

   1. (1) Section 154.054 of the Finance Code requires that you must pay an examination fee to the department. This examination fee is calculated at a rate of up to $3.00 for each contract outstanding as of your last examination. Except that:

      1. (A) If your annual examination fee calculation is less than $100, your annual examination fee will be $100; or
      2. (B) If your annual examination fee calculation is more than $7,350, your annual assessment will be $7,350.
   2. (2) If more than one examination is required in the same fiscal year as a result of your failure to comply with the Finance Code, Chapter 154, this chapter, or a request by the department, you must pay for each additional examination at a rate of $600 per day for each examiner required to conduct the additional examination and all associated travel expenses.
   3. (3) Your examination fee will not be reduced or waived.

3. (c) How will the department bill me for the examination fees and when must I pay them?

   1. (1) Your annual examination fee may be billed in quarterly or fewer installments each fiscal year. You must pay a billed installment by ACH debit 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 payment due and the date the department will initiate payment by ACH debit.
   2. (2) You will be billed for additional examinations described in subsection (b)(2) of this section with the delivery of the examination report. You must pay this fee upon receipt of the examination report.

Source Note:The provisions of this §25.24 adopted to be effective March 6, 2003, 28 TexReg 18355; amended to be effective November 10, 2005, 30 TexReg 7210.