1-1                                   AN ACT

 1-2     relating to funeral merchandise and services and other funeral

 1-3     benefits.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 1(b), Chapter 512, Acts of the 54th

 1-6     Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas

 1-7     Civil Statutes), is amended by amending Subdivision (9) and adding

 1-8     Subdivisions (12), (13), and (14) to read as follows:

 1-9                 (9)  "Prepaid funeral benefits" means prearranged or

1-10     prepaid funeral or cemetery services or funeral merchandise,

1-11     including an alternative container, casket, or outer burial

1-12     container [caskets, grave vaults, and all other articles of

1-13     merchandise incidental  to a funeral service].  The term does not

1-14     include a grave, [lot, grave space, grave] marker, monument,

1-15     tombstone, crypt, niche, plot, or lawn crypt [mausoleum] unless it

1-16     is sold in contemplation of trade or barter for funeral services

1-17     and funeral merchandise to which this Act applies.

1-18                 (12)  "Crypt," "grave," "lawn crypt," "niche," and

1-19     "plot" have the meanings assigned those terms by Section 711.001,

1-20     Health and Safety Code.

1-21                 (13)  "Funeral merchandise" or "merchandise" means

1-22     goods sold or offered for sale on a preneed basis directly to the

1-23     public for use in connection with funeral services.

1-24                 (14)  "Funeral services" or "services" means services

 2-1     sold or offered for sale on a preneed basis that may be used to:

 2-2                       (A)  care for and prepare deceased human bodies

 2-3     for burial, cremation, or other final disposition; and

 2-4                       (B)  arrange, supervise, or conduct the funeral

 2-5     ceremony or the final disposition of deceased human bodies.

 2-6           SECTION 2.  Section 5A, Chapter 512, Acts of the 54th

 2-7     Legislature, Regular Session, 1955 (Article 548b, Vernon's Texas

 2-8     Civil Statutes), is amended by adding Subsection (i) to read as

 2-9     follows:

2-10           (i)  The Commissioner may waive a limitation provided by

2-11     Subsection (e), (f), or (g) of this section, on written request of

2-12     a permit holder, if the Commissioner concludes that the waiver does

2-13     not threaten an unreasonable risk of loss to the prepaid funeral

2-14     benefits trust funds.  The Commissioner by order shall approve or

2-15     disapprove the request not later than the 60th day after the date

2-16     the Commissioner receives the request.  If the Commissioner does

2-17     not disapprove the request before the expiration of this period,

2-18     the request is approved.  If the permit holder does not request a

2-19     hearing before the 11th day after the date of an order of

2-20     disapproval, the order takes effect on that 11th day.  If a hearing

2-21     is timely requested, the hearing shall be conducted as a contested

2-22     case under Chapter 2001, Government Code.

2-23           SECTION 3.  Section 711.001(19), Health and Safety Code, is

2-24     amended to read as follows:

2-25                 (19)  "Lawn crypt" means a subsurface [concrete and

2-26     reinforced steel] receptacle installed in multiple units for ground

2-27     burial of human remains.

 3-1           SECTION 4.  Chapter 711, Health and Safety Code, is amended

 3-2     by adding Subchapter E to read as follows:

 3-3                         SUBCHAPTER E.  LAWN CRYPTS

 3-4           Sec. 711.061.  REQUIREMENTS FOR LAWN CRYPTS.  A lawn crypt

 3-5     may not be installed unless:

 3-6                 (1)  the lawn crypt is constructed of concrete and

 3-7     reinforced steel or other comparably durable material;

 3-8                 (2)  the lawn crypt is installed on not less than six

 3-9     inches of rock, gravel, or other drainage material;

3-10                 (3)  the lawn crypt provides a method to drain water

3-11     out of the lawn crypt;

3-12                 (4)  the outside top surface of the lawn crypt at the

3-13     time of installation is at least 1-1/2 feet below the surface of

3-14     the ground as required by Section 714.001(a)(2) and is capable of

3-15     withstanding the weight of the soil and sod above the top surface

3-16     and the weight of machinery and equipment normally used in the

3-17     maintenance of the cemetery;

3-18                 (5)  the lawn crypt is installed in a garden or other

3-19     section of the cemetery that has been dedicated for lawn crypt

3-20     interment purposes in accordance with Section 711.034; and

3-21                 (6)  except as provided by Section 711.062, the lawn

3-22     crypt is installed in multiple units of 10 or more.

3-23           Sec. 711.062.  REQUEST TO INSTALL LAWN CRYPT IN FEWER THAN 10

3-24     UNITS.  A lawn crypt may be installed in fewer than 10 units if it

3-25     is installed in a plot pursuant to the plot owner's written request

3-26     that is in substantially the following form:

3-27                "REQUEST FOR INSTALLATION OF A LAWN CRYPT IN

 4-1                             FEWER THAN 10 UNITS

 4-2           I, (plot owner's name and address), request (name of cemetery

 4-3     organization) to install a lawn crypt consisting of (number of)

 4-4     units in the following location (description of plots) in (name and

 4-5     address of cemetery).

 4-6           The lawn crypt must meet the requirements of Section 711.061,

 4-7     Health and Safety Code:

 4-8                 (1)  the lawn crypt must be constructed of concrete and

 4-9     reinforced steel or other comparably durable material;

4-10                 (2)  the lawn crypt must be installed on not less than

4-11     six inches of rock, gravel, or other drainage material;

4-12                 (3)  the lawn crypt must provide a method to drain

4-13     water out of the lawn crypt;

4-14                 (4)  the outside top surface of the lawn crypt at the

4-15     time of installation must be at least 1-1/2 feet below the surface

4-16     of the ground as required by Section 714.001(a)(2), Health and

4-17     Safety Code, and be capable of withstanding the weight of the soil

4-18     and sod above the top surface and the weight of machinery and

4-19     equipment normally used in the maintenance of the cemetery; and

4-20                 (5)  the plot in which the lawn crypt is to be

4-21     installed must be located in a garden or other section of the

4-22     cemetery that is dedicated for lawn crypt interment purposes in

4-23     accordance with Section 711.034, Health and Safety Code.

4-24           Dated (month, day, year).

4-25                                             (signature of plot owner)."

4-26           SECTION 5.  Sections 3 and 4 of this Act apply only to the

4-27     installation of a lawn crypt on or after the effective date of this

 5-1     Act.

 5-2           SECTION 6.  This Act takes effect September 1, 1997.

 5-3           SECTION 7.  The importance of this legislation and the

 5-4     crowded condition of the calendars in both houses create an

 5-5     emergency and an imperative public necessity that the

 5-6     constitutional rule requiring bills to be read on three several

 5-7     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1843 was passed by the House on April

         17, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1843 on May 29, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1843 was passed by the Senate, with

         amendments, on May 26, 1997, by the following vote:  Yeas 31, Nays

         0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor