Enrolled Bill Summary

Senate Bill 1173	Senate Author:  Armbrister
Effective:  9-1-05	House Sponsor:  Solomons

            Senate Bill 1173 amends the Health and Safety Code to allow a corporation that operates one or more perpetual care cemeteries to sell undeveloped mausoleum space.  Before selling or offering to sell the mausoleum space, the corporation must either establish a preconstruction trust in which it deposits at least 40 percent of the sales proceeds for reserve funding of the construction or submit a performance bond payable to the banking commissioner in an amount based on 120 percent of the actual or estimated construction costs.  The bill includes provisions concerning the administration of the trusts and the related responsibilities of the corporations and the Texas Department of Banking.

            In addition, the bill specifies that provisions giving the person in charge of a cemetery the same powers, duties, and immunities as a police officer in the municipality in which the cemetery is located or a constable or sheriff of the county in which the cemetery is located apply only to a cemetery in a municipality with a population of at least 40,000 or in a county with a population of at least 290,000.