SRC-HRD H.B. 1843 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1843
By: Marchant (Sibley)
State Affairs
5-12-97
Engrossed


DIGEST 

Currently, some cemeteries sell lawn crypts for $800 to $1000 that
supposedly contain complex drainage systems and  reinforced structures.
Sometimes, however, what is delivered is a simple concrete box or other
outer burial container, costing $250 to $450. There is concern that when a
preneed transaction takes place, the seller should be licensed by the
Department of Banking.  This would allow the consumer added protection and
give the department clear authority to correct these practices when done
on a pre-need basis.

H.B. 1843 would provide that if an outer burial chamber, other than a lawn
crypt, is sold on a preneed basis, it is covered under the prepaid funeral
contract statute.  The bill would amend current law to refer to a specific
definition of lawn crypt in the Health and Safety Code.  In addition, H.B.
1843 would give the banking commissioner the ability to waive the
investment limitations on trust funds as long as there is not an
unreasonable risk of loss to the funds.

PURPOSE

As proposed, H.B. 1843 requires that if an outer burial chamber, other
than a lawn crypt, is sold on a pre-need basis, it is covered under the
prepaid funeral contract statute.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the banking commissioner of Texas under
SECTION 2 (Section 5A, Article 548b, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1(b), Article 548b, V.T.C.S., to redefine
"prepaid funeral benefits" and to define "crypt," "grave," "lawn crypt,"
"niche," "plot," "funeral merchandise" or "merchandise," and "funeral
services" or "services." 

SECTION 2. Amends Section 5A, Article 548b, V.T.C.S., by adding Subsection
(i), to authorize the banking commissioner of Texas (commissioner) to
waive a limitation provided by Subsection (e), (f), or (g), of this
section, on written request of a permit holder, if the commissioner
concludes that the waiver does not threaten an unreasonable risk of loss
to the prepaid funeral benefits trust funds.  Requires the commissioner,
by order, to approve or disapprove the request not later than the 60th day
after the date the commissioner receives the request.  Provides that if
the commissioner does not disapprove the request before the expiration of
this period, the request is approved. Provides that if the permit holder
does not request a hearing before the 11th day after the date of an order
of disapproval, the order takes effect on that 11th day.  Requires the
hearing, if a hearing is timely requested, to be conducted as a contested
case under Chapter 2001, Government Code. 

SECTION 3. Amends Section 711.001(19), Health and Safety Code, to redefine
"lawn crypt." 

SECTION 4. Amends Chapter 711, Health and Safety Code, by adding
Subchapter E, as follows: 

SUBCHAPTER E.  LAWN CRYPTS

Sec. 711.061.  REQUIREMENTS FOR LAWN CRYPTS.  Prohibits a lawn crypt from
being  installed except under certain conditions. 

Sec. 711.062.  REQUEST TO INSTALL LAWN CRYPT IN FEWER THAN 10 UNITS.
Authorizes a lawn crypt to be installed in fewer than 10 units if it is
installed in a plot pursuant to the plot owner's written request that is
in substantially a certain form.  Sets forth the form.   

SECTION 5. Makes application of SECTIONS 3 and 4 of this Act prospective.

SECTION 6. Effective date: September 1, 1997.

SECTION 7. Emergency clause.