By Coleman, et al.                                     H.B. No. 814
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the restoration, operation, and maintenance of certain
    1-3  historic cemeteries.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle C, Title 8, Health and Safety Code, is
    1-6  amended by adding Chapter 715 to read as follows:
    1-7                  CHAPTER 715.  CERTAIN HISTORIC CEMETERIES
    1-8        Sec. 715.001.  DEFINITIONS.  In this chapter:
    1-9              (1)  "Burial park," "cemetery purposes," "crematory,"
   1-10  "mausoleum," and "plot" have the meanings assigned by Section
   1-11  711.001.
   1-12              (2)  "Cemetery" means a place that is used for
   1-13  interment, including a graveyard, a burial park, or a mausoleum
   1-14  located on the grounds of a graveyard or burial park.
   1-15              (3)  "Nonprofit corporation" means a corporation exempt
   1-16  from federal income tax under Section 501(a) of the Internal
   1-17  Revenue Code of 1986 by being listed as an exempt organization
   1-18  under Section 501(c)(3).
   1-19        Sec. 715.002.  PETITION OF NONPROFIT CORPORATION.  A
   1-20  nonprofit corporation organized under this chapter to restore,
   1-21  operate, and maintain a historic cemetery may petition the district
   1-22  court of the county in which the cemetery is located to authorize
   1-23  the nonprofit corporation to restore, operate, and maintain the
   1-24  cemetery.
    2-1        Sec. 715.003.  PARTIES TO ACTION.  An action commenced under
    2-2  this chapter shall be brought by the incorporators of the nonprofit
    2-3  corporation on behalf of the nonprofit corporation.  The necessary
    2-4  parties to the action on which citation shall be served under
    2-5  Section 715.006 are:
    2-6              (1)  the record owners of the real property comprising
    2-7  the historic cemetery;
    2-8              (2)  the owners of plots in the cemetery, who may be
    2-9  designated as a class in the petition; and
   2-10              (3)  the Texas Historical Commission.
   2-11        Sec. 715.004.  CONTENTS OF PETITION.  (a)  A petition filed
   2-12  by a nonprofit corporation under this chapter must contain a legal
   2-13  description of the real property comprising the historic cemetery
   2-14  and must aver to the court that:
   2-15              (1)  the nonprofit corporation, through its members and
   2-16  incorporators, has a religious, ethnic, historic, or cultural
   2-17  relationship to the cemetery;
   2-18              (2)  the cemetery was established more than 75 years
   2-19  before the date the action was commenced;
   2-20              (3)  a viable organization of plot owners of the
   2-21  cemetery does not exist; and
   2-22              (4)  the cemetery threatens or endangers the public
   2-23  health, safety, comfort, or welfare.
   2-24        (b)  The petition must be accompanied by the written plan
   2-25  described by Section 715.005.
   2-26        Sec. 715.005.  WRITTEN PLAN.  (a)  The written plan
   2-27  accompanying the nonprofit corporation's petition must include:
    3-1              (1)  a description of the actions to be taken by the
    3-2  nonprofit corporation to restore, operate, and maintain the
    3-3  historic cemetery, which must include:
    3-4                    (A)  repair of any fences;
    3-5                    (B)  straightening and resetting of memorials or
    3-6  embellishments in the cemetery that are a threat or danger to the
    3-7  public health, safety, comfort, or welfare; and
    3-8                    (C)  taking of proper steps to restore and
    3-9  continuously operate and maintain the cemetery in an orderly and
   3-10  decent fashion that does not endanger the public health, safety,
   3-11  comfort, or welfare;
   3-12              (2)  the anticipated costs of the actions described
   3-13  under Subdivision (1);
   3-14              (3)  the time that the actions described by Subdivision
   3-15  (1) will be commenced and the time that it is anticipated the
   3-16  actions will be completed;
   3-17              (4)  a description of the actions to be taken by the
   3-18  nonprofit corporation for the proper conduct of its business and
   3-19  for the protection of the cemetery and the principles, plans, and
   3-20  ideals on which the cemetery was established;
   3-21              (5)  the percentage of the total purchase price of each
   3-22  plot in the cemetery sold and conveyed by the nonprofit corporation
   3-23  to be deposited in the trust fund established under Section
   3-24  715.011, which must be at least 10 percent of the total purchase
   3-25  price of the plot; and
   3-26              (6)  a description of the records to be maintained by
   3-27  the nonprofit corporation, including records regarding:
    4-1                    (A)  the sale of plots in the cemetery;
    4-2                    (B)  the interments in the cemetery;
    4-3                    (C)  the total purchase price received from the
    4-4  sale of each plot in the cemetery;
    4-5                    (D)  the percentage of the total purchase price
    4-6  of each plot in the cemetery deposited in the trust fund
    4-7  established under Section 715.011; and
    4-8                    (E)  the income received by the nonprofit
    4-9  corporation from the trust fund established under Section 715.011
   4-10  and the manner in which the income is used by the nonprofit
   4-11  corporation for the maintenance and care of the cemetery.
   4-12        (b)  After the written plan is filed, the court may require
   4-13  that the nonprofit corporation modify the plan to include other
   4-14  matters specified by the court.
   4-15        Sec. 715.006.  SERVICE OF CITATION.  (a)  Before the 31st day
   4-16  after the date an action is commenced by a nonprofit corporation
   4-17  under this chapter, the nonprofit corporation shall cause citation
   4-18  to be issued and served by certified mail, return receipt
   4-19  requested, on:
   4-20              (1)  the record owners of the real property comprising
   4-21  the cemetery at their last known addresses;
   4-22              (2)  the owners of plots in the cemetery at their last
   4-23  known addresses;
   4-24              (3)  the Texas Historical Commission at its office in
   4-25  Austin, Texas; and
   4-26              (4)  the county auditor of the county in which the
   4-27  cemetery is located.
    5-1        (b)  The citation must be accompanied by a copy of the
    5-2  petition.
    5-3        (c)  If the address or identity of a plot owner is not known
    5-4  and cannot be ascertained with reasonable diligence, service by
    5-5  publication shall be made on the plot owner by publishing notice at
    5-6  least three times in a newspaper of general circulation in the
    5-7  county in which the cemetery is located.  If there is not a
    5-8  newspaper of general circulation in the county in which the
    5-9  cemetery is located, the notice may be published in a newspaper of
   5-10  general circulation in an adjoining county.
   5-11        Sec. 715.007.  HEARING.  (a)  Not later than the 90th day
   5-12  after the date the petition is filed, the court shall hold a
   5-13  hearing on the petition.
   5-14        (b)  Notice of the hearing shall be given by the nonprofit
   5-15  corporation to the parties listed in Section 715.003 not later than
   5-16  the 30th day before the date of the hearing.
   5-17        (c)  The notice shall be given in the manner prescribed by
   5-18  Section 715.006 for service of citation.
   5-19        (d)  At the hearing, each of the parties listed in Section
   5-20  715.003 shall be given an opportunity to be heard by the court and
   5-21  to answer the petition of the nonprofit corporation.
   5-22        Sec. 715.008.  COURT ORDER.  (a)  The court shall issue an
   5-23  order authorizing the nonprofit corporation to restore, operate,
   5-24  and maintain the cemetery if the court finds that:
   5-25              (1)  the facts stated in the petition filed by a
   5-26  nonprofit corporation under this chapter are true and correct;
   5-27              (2)  the written plan accompanying the petition
    6-1  demonstrates the nonprofit corporation's ability to restore,
    6-2  operate, and maintain the historic cemetery in accordance with this
    6-3  chapter; and
    6-4              (3)  authorizing the nonprofit corporation to restore,
    6-5  operate, and maintain the cemetery is in the best interest of the
    6-6  public.
    6-7        (b)  The written plan must be incorporated in the court's
    6-8  order.
    6-9        (c)  The court's order is binding on all parties to the
   6-10  action.
   6-11        (d)  The court retains continuing jurisdiction to monitor and
   6-12  review compliance with the court's order.
   6-13        Sec. 715.009.  NONPROFIT CORPORATION.  (a)  The members of a
   6-14  nonprofit corporation authorized to restore, operate, and maintain
   6-15  a historic cemetery are the plot and property owners of the
   6-16  cemetery.
   6-17        (b)  Each plot owner may exercise the rights and privileges
   6-18  of a member of the nonprofit corporation without regard to whether
   6-19  the plot owner acquired the plot before or after the nonprofit
   6-20  corporation was organized.
   6-21        Sec. 715.010.  ORGANIZATIONAL MEETING.  (a)  A nonprofit
   6-22  corporation authorized to restore, operate, and maintain a historic
   6-23  cemetery shall, not later than the 10th day after the date of the
   6-24  order of the court under Section 715.008:
   6-25              (1)  publish notice of the time and place of the
   6-26  organizational meeting of the members of the nonprofit corporation
   6-27  in a newspaper having general circulation in the county in which
    7-1  the cemetery is located or, if there is no newspaper of general
    7-2  circulation in the county in which the cemetery is located, in a
    7-3  newspaper of general circulation in an adjoining county; and
    7-4              (2)  post written notice of the time and place of the
    7-5  meeting at the cemetery.
    7-6        (b)  The notice published under Subsection (a)(1) must be
    7-7  published not later than the 30th day before the date of the
    7-8  meeting and repeated twice before the date of the meeting.  The
    7-9  notice may not be published more than once a week.
   7-10        (c)  The written notice posted under Subsection (a)(2) must
   7-11  be posted not later than the 30th day before the date of the
   7-12  hearing and must remain posted until the date of the hearing.
   7-13        (d)  At the organizational meeting of the members of a
   7-14  nonprofit corporation authorized to restore, operate, and maintain
   7-15  a historic cemetery, a majority of the members present and voting
   7-16  at the meeting shall elect a board of directors of the nonprofit
   7-17  corporation.  Directors and officers are not required to be members
   7-18  of the nonprofit corporation.
   7-19        Sec. 715.011.  POWERS AND DUTIES OF NONPROFIT CORPORATION;
   7-20  TRUST FUND.  (a)  A nonprofit corporation authorized to restore,
   7-21  operate, and maintain a historic cemetery may divide cemetery
   7-22  property into lots and subdivisions for cemetery purposes and
   7-23  charge reasonable assessments on the property for the purposes of
   7-24  general improvement and maintenance of the cemetery.
   7-25        (b)  The nonprofit corporation may sell and convey the
   7-26  exclusive right of sepulture in any unsold plot in the cemetery if,
   7-27  before the sale and conveyance of any right of sepulture, the
    8-1  nonprofit corporation establishes a trust fund to provide for the
    8-2  perpetual maintenance of the cemetery.
    8-3        (c)  The county auditor of the county in which the cemetery
    8-4  is located shall act as the trustee of the trust fund.
    8-5        (d)  The nonprofit corporation shall deposit in the trust
    8-6  fund the amount required under the written plan incorporated in the
    8-7  court's order not later than the 20th day after the last day of the
    8-8  month in which the total purchase price of a plot has been paid in
    8-9  full.
   8-10        (e)  The nonprofit corporation shall file a monthly statement
   8-11  with the county auditor, signed by the president and secretary of
   8-12  the nonprofit corporation, that verifies that all funds required to
   8-13  be deposited in the trust fund during the preceding month have been
   8-14  deposited in the trust fund and that any income disbursed from the
   8-15  trust fund during the preceding month was used by the nonprofit
   8-16  corporation for the maintenance and care of the cemetery.
   8-17        (f)  The principal of a trust fund established under this
   8-18  section may not be reduced voluntarily, and it must remain
   8-19  inviolable.
   8-20        (g)  The trust fund and the trustee are governed by Title 9,
   8-21  Property Code.
   8-22        (h)  The trustee may receive and hold as part of the trust
   8-23  fund any property contributed as a gift or grant to the trust fund
   8-24  for the perpetual maintenance of the historic cemetery.
   8-25        (i)  The income of the trust fund may be applied in the
   8-26  manner the directors of the nonprofit corporation determine to be
   8-27  for the best interest of the cemetery and may be used only for the
    9-1  maintenance and care of the cemetery.
    9-2        (j)  A district court of the county in which the historic
    9-3  cemetery is located shall appoint a suitable successor trustee of a
    9-4  trust fund established under this section if the county auditor
    9-5  resigns the position of trustee of the trust fund or fails to act
    9-6  as its trustee.
    9-7        (k)  The county auditor or other person who acts as the
    9-8  trustee of a trust fund established under this section is not
    9-9  civilly or criminally liable for acts performed in the good faith
   9-10  administration of the trust fund.
   9-11        Sec. 715.012.  CREMATORY PROHIBITED.  A nonprofit corporation
   9-12  authorized to restore, operate, and maintain a cemetery under this
   9-13  chapter may not construct, establish, or maintain a crematory.
   9-14        Sec. 715.013.  ADJACENT OR CONTIGUOUS CEMETERY.  A nonprofit
   9-15  corporation authorized to restore, operate, and maintain a historic
   9-16  cemetery may not acquire land for cemetery purposes that is
   9-17  adjacent or contiguous to the cemetery unless the adjacent or
   9-18  contiguous land is operated as a perpetual care cemetery under
   9-19  Chapter 712.  The nonprofit corporation may not petition the
   9-20  district court of the county in which the cemetery is located to
   9-21  remove the dedication with respect to all or any portion of the
   9-22  cemetery.
   9-23        Sec. 715.014.  CEMETERY OPEN TO PUBLIC.  A historic cemetery
   9-24  restored, operated, and maintained by a nonprofit corporation under
   9-25  this chapter must remain open to the public.
   9-26        Sec. 715.015.  EXEMPTION.  This chapter does not apply to:
   9-27              (1)  a perpetual care cemetery; or
   10-1              (2)  a family cemetery.
   10-2        SECTION 2.  The importance of this legislation and the
   10-3  crowded condition of the calendars in both houses create an
   10-4  emergency and an imperative public necessity that the
   10-5  constitutional rule requiring bills to be read on three several
   10-6  days in each house be suspended, and this rule is hereby suspended,
   10-7  and that this Act take effect and be in force from and after its
   10-8  passage, and it is so enacted.