By Tillery H.B. No. 426 77R2401 YDB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to regulation of cemeteries; providing civil and criminal 1-3 penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 711, Health and Safety Code, is amended 1-6 by adding Subchapter F to read as follows: 1-7 SUBCHAPTER F. REGISTRATION OF CEMETERIES 1-8 Sec. 711.101. DEFINITION. In this subchapter, "commission" 1-9 means the Texas Funeral Service Commission. 1-10 Sec. 711.102. EXEMPTIONS. (a) A private or family cemetery 1-11 is exempt from the requirements of this subchapter if the cemetery: 1-12 (1) is not operated for profit; 1-13 (2) is not larger than a maximum size established by 1-14 commission rule; and 1-15 (3) meets any other criteria established by the 1-16 commission by rule. 1-17 (b) In adopting rules or criteria under Subsection (a)(2) or 1-18 (3), the commission shall protect the public interest. 1-19 Sec. 711.103. REGISTRATION REQUIRED. A person may not 1-20 operate a cemetery unless the person holds a cemetery operator's 1-21 certificate of registration issued under this subchapter. 1-22 Sec. 711.104. APPLICATION REQUIREMENTS. (a) An applicant 1-23 for a cemetery operator's certificate of registration must file 1-24 with the commission an application stating: 2-1 (1) the applicant's name, address, and telephone 2-2 number; 2-3 (2) the applicant's business trade name; 2-4 (3) for an applicant whose business is incorporated: 2-5 (A) the applicant's business name registered 2-6 with the secretary of state; 2-7 (B) the location of the applicant's registered 2-8 business office; and 2-9 (C) the name and address of each person who 2-10 directly or indirectly owns or controls 10 percent or more of the 2-11 outstanding shares of stock in the applicant's business; 2-12 (4) the date the applicant began, or will begin, the 2-13 operation of the cemetery; and 2-14 (5) the address of the cemetery. 2-15 (b) An application for a certificate of registration must be 2-16 accompanied by the required fee. 2-17 (c) An applicant must comply with the application 2-18 requirements of this section for each location at which the 2-19 applicant will operate a cemetery. 2-20 Sec. 711.105. FEES. (a) Except as provided by Subsection 2-21 (b), the commission shall charge each applicant for a certificate 2-22 of registration or renewal of a certificate a reasonable 2-23 registration fee not to exceed $100 to cover the cost of issuance 2-24 or renewal. 2-25 (b) A cemetery operated by an entity described by Section 2-26 712.002(4) is exempt from the registration fee. 2-27 Sec. 711.106. CERTIFICATE OF REGISTRATION NONTRANSFERABLE. A 3-1 cemetery operator's certificate of registration is not 3-2 transferable. 3-3 Sec. 711.107. TERM; RENEWAL. (a) A cemetery operator's 3-4 certificate of registration expires on the first anniversary of the 3-5 date of issuance. 3-6 (b) A certificate of registration must be renewed annually 3-7 as provided by rules adopted by the commission. 3-8 Sec. 711.108. CHANGE OF INFORMATION. If the information 3-9 provided in an application for a certificate of registration 3-10 changes, the certificate holder shall notify the commission of the 3-11 change before the 90th day after the date the change occurs. 3-12 Sec. 711.109. ADMINISTRATIVE AND RULEMAKING AUTHORITY. (a) 3-13 The commission shall administer this subchapter. 3-14 (b) In administering this subchapter, the commission shall: 3-15 (1) adopt rules; 3-16 (2) issue administrative orders; and 3-17 (3) take action necessary to ensure compliance with 3-18 this subchapter. 3-19 Sec. 711.110. INVESTIGATIVE AUTHORITY. The commission may 3-20 investigate an alleged violation of this subtitle. 3-21 Sec. 711.111. COMPLAINTS. (a) The commission by rule shall 3-22 establish methods by which consumer and service recipients are 3-23 notified of the name, mailing address, and telephone number of the 3-24 commission for the purpose of directing complaints to the 3-25 commission. 3-26 (b) The commission shall investigate each complaint received 3-27 by the commission relating to a cemetery or its operator. 4-1 (c) If a person files a complaint with the commission 4-2 relating to a cemetery or its operator, the commission shall give 4-3 to the person an explanation of the remedies that are available to 4-4 the person under this chapter and information about other 4-5 appropriate state or local agencies or officials with which the 4-6 person may file a complaint. 4-7 (d) If a written complaint is filed with the commission that 4-8 the commission has authority to resolve, the commission, at least 4-9 quarterly until final disposition of the complaint, shall notify 4-10 the parties to the complaint of the status of the complaint unless 4-11 the notice would jeopardize an undercover investigation. 4-12 (e) The complainant is entitled to attend any proceeding 4-13 resulting from the complaint. 4-14 Sec. 711.112. SUIT FOR ENFORCEMENT. (a) The attorney 4-15 general, at the request of the commission, shall file suit against 4-16 a person who violates, or threatens to violate, this subtitle to: 4-17 (1) enjoin the violation; 4-18 (2) recover a civil penalty under Section 711.113; or 4-19 (3) both enjoin the violation and recover the penalty. 4-20 (b) Venue for suit filed under this section is in a district 4-21 court located in: 4-22 (1) Travis County; or 4-23 (2) the county in which the cemetery is located. 4-24 Sec. 711.113. AMOUNT OF CIVIL PENALTY; RECOVERY OF EXPENSES. 4-25 (a) Except as provided by Subsection (b), a person who violates 4-26 this subtitle is liable to the state for a civil penalty in an 4-27 amount not to exceed $1,000 for a single violation. 5-1 (b) If more than one civil penalty is assessed against the 5-2 same person, the total amount of civil penalties assessed may not 5-3 exceed $25,000. 5-4 (c) In addition to the amount of any civil penalty, the 5-5 commission may recover reasonable expenses, including court costs, 5-6 attorney's fees, investigative costs, witness fees, and deposition 5-7 expenses, incurred in recovering a civil penalty or obtaining an 5-8 injunction under this subtitle. 5-9 Sec. 711.114. CRIMINAL OFFENSE: VIOLATION OF SUBCHAPTER. 5-10 (a) A person commits an offense if the person knowingly operates 5-11 or attempts to operate a cemetery in violation of this subchapter. 5-12 (b) An offense under this section is a Class A misdemeanor. 5-13 Sec. 711.115. CRIMINAL OFFENSE: INTERFERENCE WITH 5-14 INVESTIGATION. (a) A person commits an offense if, with actual 5-15 notice that the commission, attorney general, or a district or 5-16 county attorney has initiated, or plans to initiate, an 5-17 investigation under this subchapter, the person intentionally 5-18 conceals, alters, destroys, or falsifies a document or record that 5-19 is relevant or material to the investigation. 5-20 (b) An offense under this section is a Class A misdemeanor. 5-21 SECTION 2. (a) Before January 1, 2002, the Texas Funeral 5-22 Service Commission shall adopt rules establishing the registration 5-23 process required by Subchapter F, Chapter 711, Health and Safety 5-24 Code, as added by this Act. 5-25 (b) The prohibition imposed by Section 711.103, Health and 5-26 Safety Code, as added by this Act, does not apply to a person 5-27 before January 1, 2003. 6-1 SECTION 3. This Act takes effect September 1, 2001.