HBA-MPM H.B. 1975 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1975
By: Hunter
Business & Industry
3/13/2001
Introduced



BACKGROUND AND PURPOSE 

Current state law authorizes cemetery plot owners to organize a nonprofit
cemetery organization to receive title to land previously dedicated to
cemetery purposes.  If the decision to incorporate is made, the plot owners
must also select a board of directors from among themselves.  Currently,
nonprofit cemetery organizations are not required to be organized in
compliance with the Texas Nonprofit Corporation Act. House Bill 1975
requires nonprofit cemetery corporations to be organized in compliance with
the Texas Nonprofit Corporation Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1975 amends the Health and Safety Code to require a corporation
formed in order to receive title to land previously dedicated to cemetery
purposes to be organized in accordance with the incorporator and the
articles of incorporation requirements under the Texas Non-Profit
Corporation Act if plot owners vote to incorporate.  The bill requires an
initial board of directors (board) of the corporation composed of members
named in the articles of incorporation to manage the corporation.  The bill
requires subsequent board members to be selected according to the bylaws of
the corporation.  The bill provides that plot owners in a cemetery owned by
a nonprofit corporation are not shareholders of the corporation. 

The bill repeals law specifying that a person who purchases a plot from a
nonprofit cemetery corporation is a shareholder of the corporation or in
any corporation that owns the cemetery. 

EFFECTIVE DATE

September 1, 2001.