SRC-BWC H.B. 1460 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1460
By: Williams (Armbrister)
State Affairs
4/23/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, certain cemeteries without endowment funds or with
insufficient endowment funds are able to use the terms "perpetual" or
"endowment" in the cemetery's name or advertising.  There are concerns that
the use of these terms is misleading and confusing.  H.B. 1460 amends the
Health and Safety Code to prohibit a cemetery corporation that does not
operate as a perpetual care cemetery from using those words in relation to
the cemetery.  The bill requires a cemetery corporation that is not in
compliance with the prohibition on using these terms in its name to amend
its articles of incorporation to comply with this Act not later than
December 31, 2002. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 711.021, Health and Safety Code, to prohibit a
cemetery corporation, including a corporation described by Subsection (d),
that does not operate as a perpetual care cemetery in accordance with
Chapter 712 from using the words "perpetual care" or "endowment care," or
any other term that suggests "perpetual care" or "endowment care"
standards, in the cemetery's name or any advertising relating to the
cemetery. 

SECTION 2.  Requires a cemetery corporation that is not in compliance with
Section 711.021(h) (1), Health and Safety Code, on the effective date of
this Act, to amend its articles of incorporation to comply with this Act
not later than December 31, 2002. 

SECTION 3.  Effective date: September 1, 2001.