The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), proposes to amend §27.1, concerning notices to applicants; application processing times; and appeals related to prepaid funeral benefits contracts and perpetual care cemeteries. The amended rule is proposed to allow the department more time to review applications to determine whether they are complete and, if necessary, to specify additional information needed. Amendments are also proposed to delete excess verbiage.

Current §27.1 requires the department to give notice to applicants for prepaid funeral sellers permits and certificates of authority to operate perpetual care cemeteries within ten days of whether their applications are complete or deficient. If the application is deficient, the department must specify what additional information is required. Over the years, applications in these areas have become more complex and require more comprehensive review. Ten days does not give the department adequate time to review and specify what additional information is required.

Amended §27.1(a) increases from ten calendar days to ten business days the Department's time to review and either accept an application or notify the applicant of additional information required. Amended §27.1(a) would also delete excess verbiage.

Stephanie Newberg, Deputy Commissioner, Texas Department of Banking, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the rule.

Ms. Newberg also has determined that, for each year of the first five years the rule as proposed is in effect, the public benefit anticipated as a result of enforcing the rule as proposed will be adequate time for thorough review of applications by the department and added flexibility in assigning agency resources to other critical tasks.

For each year of the first five years that the rule will be in effect, there will be no economic costs to persons required to comply with the rule as proposed.

There will be no adverse economic effect on small businesses or micro-businesses. There will be no difference in the cost of compliance for small businesses as compared to large businesses.

To be considered, comments on the proposed amended section must be submitted no later than 5:00 p.m. on October 3, 2011. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.

The amendment is proposed under Finance Code §154.051(b), which authorizes the commission to adopt reasonable rules relating to the enforcement and administration of Finance Code Chapter 154, Prepaid Funeral Services; Finance Code §154.101, which requires a person to hold a permit to sell prepaid funeral benefits; Health and Safety Code §712.0032, which requires a corporation to hold a certificate of authority issued under Chapter 712 to operate a perpetual care cemetery; Health and Safety Code §712.0033, which requires a corporation to apply to the department for a certificate of authority; and Health and Safety Code §712.008, which authorizes the commission to adopt rules to enforce and administer Chapter 712.

Finance Code §154.102 and Health and Safety Code §712.0033 are affected by the proposed amended section.