By Hunter                                             H.B. No. 1975
         77R9543 YDB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain cemeteries operated by a nonprofit cemetery
 1-3     corporation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 711.022(d), Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           (d)  If the plot owners vote to incorporate in accordance
 1-8     with Articles 3.01 and 3.02, Texas Non-Profit Corporation Act
 1-9     (Articles 1396-3.01 and 1396-3.02, Vernon's Texas Civil Statutes),
1-10     on formation of the corporation, an initial board of directors
1-11     composed of members named in the articles of incorporation shall
1-12     manage the corporation.  Subsequent members of the board of
1-13     directors shall be selected according to the bylaws of the
1-14     corporation. Plot owners in a cemetery owned by a nonprofit
1-15     corporation are not shareholders of the corporation [, at the same
1-16     meeting they shall select from the plot owners a board of directors
1-17     to be named in the charter].
1-18           SECTION 2. Section 711.023, Health and Safety Code, is
1-19     repealed.
1-20           SECTION 3. This Act takes effect September 1, 2001, and
1-21     applies only to a corporation organized under Section 711.022,
1-22     Health and Safety Code, as amended by this Act, on or after that
1-23     date.  A corporation organized under that law before the effective
1-24     date of this Act is governed by the law as it existed immediately
 2-1     before the effective date of this Act, and that law is continued in
 2-2     effect for that purpose.