Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 2 - TEXAS DEPARTMENT OF BANKING
Chapter 25 - PREPAID FUNERAL CONTRACTS
Subchapter B - REGULATION OF LICENSES
Section 25.31 - Effect of Criminal Convictions on Permits

Universal Citation: 7 TX Admin Code ยง 25.31

Current through Reg. 49, No. 38; September 20, 2024

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Commissioner--The banking commissioner of Texas.

(2) Official--An individual applying for or holding a permit, or an owner, officer, or holder of more than 25 percent of the outstanding shares of an applicant for or holder of a permit that is an entity.

(3) Permit--The authorization issued by the commissioner pursuant to Finance Code, Chapter 154, Subchapter C, to sell or accept money for prepaid funeral benefits, or solicit an individual's designation of prepaid funeral benefits to be paid out of a fund, investment, security, or contract.

(b) Effect of criminal conviction on proposed or existing permit. The commissioner may deny an application for a permit, or cancelor suspend a permit if an official has been convicted of a crime which directly relates to the duties and responsibilities of a seller or servicer of prepaid funeral benefits contracts. Adverse action by the commissioner in response to a conviction of a crime specified in subsection (c) of this section is subject to mitigating circumstances and rights of the applicant or permit holder as specified in subsections (d) - (h) of this section.

(c) Crimes directly related to fitness for permit. The sale and servicing of prepaid funeral benefits involves or may involve representations to prospective plan purchasers, collection and investment of money paid by purchasers of prepaid funeral benefits, payment of premiums on insurance policies to fund the benefits, provision of funeral services on matured contracts, and compliance with reporting requirements to governmental agencies. Consequently, a crime involving the misrepresentation of costs or benefits of a product or service, the improper handling of money or property entrusted to the person for the future benefit of another, or the failure to file a governmental report or the filing of a false report is a crime directly related to the duties and responsibilities of a permit holder, including a crime involving:

(1) fraud, misrepresentation, deception, or forgery;

(2) breach of trust or other fiduciary duty;

(3) dishonesty or theft;

(4) violation of a statute of this or another state governing prepaid funeral benefits plans;

(5) violation of a statute of this or another state governing the provision of funeral services;

(6) failure to file a required report with a governmental body, or filing of a false report; or

(7) attempt, preparation, or conspiracy to commit one of the preceding crimes.

(d) Mitigating considerations. In determining whether a conviction for a crime specified in Subsection (d) of this section renders an official presently unfit to be a permit holder, the commissioner shall consider:

(1) the extent and nature of the official's past criminal activity;

(2) the age of the official at the time of the commission of the crime;

(3) the time elapsed since the official's last criminal activity;

(4) the conduct and work activity of the official prior to and following the criminal activity;

(5) the official's rehabilitation or rehabilitative effort while incarcerated or following release; and

(6) the official's present fitness for a permit, evidence of which may include letters of recommendation from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the official, the sheriff and chief of police in the community where the official resides, and other persons in contact with the convicted official.

(e) Required documentation. The applicant must, to the extent possible, secure and provide to the commissioner reliable documents and/or testimony evidencing the information required to make a determination under subsection (d) of this section, including the recommendations of the prosecution, law enforcement, and correctional authorities. The applicant must also furnish proof in such form as may be required by the commissioner that the official has maintained a record of steady employment, has supported such official's dependents, has otherwise maintained a record of good conduct, and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which the official has been convicted.

(f) Notification of adverse action. If a permit application is denied, or if a permit is canceledor suspended because of the criminal conviction of an official, the commissioner will so notify the applicant or permit holder in writing. The notification must include a statement of the reasons for the action and a description of the procedure for administrative or judicial review of the action.

(g) Administrative hearing. An applicant whose permit application is denied, or a permit holder whose permit is suspendedor canceled may request a hearing. A hearing on an order of suspensionor cancellation must be requested not later than the 15th day after the date the order is mailed. A hearing is subject to the provisions of the Administrative Procedure Act, Chapter 2001, Government Code and the provisions of Chapter 9, Subchapter B of this title (relating to Contested Case Hearings).

(h) Judicial review. An applicant whose permit application has been denied, or a permit holder whose permit has been suspended or canceled because of the criminal conviction of an official may appeal a final order as set forth in Government Code, Chapter 2001, Subchapter G.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.