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TITLE 7BANKING AND SECURITIES
PART 2TEXAS DEPARTMENT OF BANKING
CHAPTER 25PREPAID FUNERAL CONTRACTS
SUBCHAPTER BREGULATION OF LICENSES
RULE §25.24What Fees Must I Pay for an Examination?

(a) Definitions.

  (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) Fiscal year--the 12-month period from September 1st to August 31st.

  (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.

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

  (1) An annual assessment must be paid as an examination fee to the department to defray the cost of administering Chapter 154 of the Finance Code. The amount of your annual assessment is based on the number of outstanding contracts as reflected on your most recent annual report filed with the department. You must pay the annual assessment specified in the following table:

Attached Graphic

  (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 $75 per hour for each examiner required to conduct the additional examination and all associated travel expenses.

  (3) If you are a new permit holder and have not yet filed your first annual report required by Section 154.052 of the Finance Code, you must pay an examination fee of $75 per hour for each examiner and all associated travel expenses. Your subsequent annual assessment will be calculated in accordance with paragraph (1) of this subsection.

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

  (1) Your annual examination fee (annual assessment) 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. The commissioner may decrease your annual assessment if it is determined that a lesser amount than would otherwise be collected is adequate to administer the Act.

  (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.

(d) Adjustments for inflation. In this section, "GDPIPD" means the Gross Domestic Product Implicit Price Deflator, published quarterly by the Bureau of Economic Analysis, United States Department of Commerce. The "annual GDPIPD factor" is equal to the percentage change in the GDPIPD index values published for the first quarter of the current year compared to the first quarter of the previous year (the March-to-March period immediately preceding the calculation date), rounded to a hundredth of a percent (two decimal places).

  (1) Beginning September 1, 2020, and each September 1 thereafter, the table in subsection (b)(1) of this section, as most recently revised before such date pursuant to this subsection, may be revised as follows:

    (A) the base assessment amount listed in column three of the table may be increased (or decreased) by an amount proportionate to the measure of inflation (or deflation) reflected in the annual GDPIPD factor, rounded to whole dollars; and

    (B) each factor listed in column three of the table may be increased (or decreased) by an amount proportionate to the measure of inflation (or deflation) reflected in the annual GDPIPD factor, rounded to two decimal places.

  (2) If the table in subsection (b)(1) of this section is revised for inflation (or deflation), then not later than August 1 of each year, the department shall calculate and prepare a revised table reflecting the inflation-adjusted values to be applied effective the following September 1 and will provide each permit holder with notice of and access to the revised table.


Source Note: The provisions of this §25.24 adopted to be effective March 6, 2003, 28 TexReg 1835; amended to be effective November 10, 2005, 30 TexReg 7210; amended to be effective November 8, 2007, 32 TexReg 7904; amended to be effective November 10, 2011, 36 TexReg 7505; amended to be effective September 8, 2019, 44 TexReg 4708; amended to be effective May 7, 2020, 45 TexReg 2829

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