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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of a cemetery plot; providing a criminal |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 711.001, Health and Safety Code, is |
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amended by adding Subdivision (2-a) to read as follows: |
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(2-a) "Cemetery broker" means a person who sells the |
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exclusive right of sepulture for another person. The term does not |
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include a person who: |
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(A) is an officer, agent, or employee of the |
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cemetery organization in which the plot is located; or |
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(B) originally purchased the exclusive right of |
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sepulture for personal use. |
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SECTION 2. Section 711.012(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) The Finance Commission of Texas may adopt rules to |
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enforce and administer Sections 711.003, 711.008, 711.021-711.024, |
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711.032-711.035, 711.038, 711.0381, 711.040-711.042, 711.052, |
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711.061, and 711.062 relating to perpetual care cemeteries. |
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SECTION 3. The heading to Section 711.038, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 711.038. SALE OF PLOTS BY CEMETERY ORGANIZATIONS. |
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SECTION 4. Section 711.038(e), Health and Safety Code, is |
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amended to read as follows: |
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(e) A person who is an officer, agent, or employee of the |
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cemetery organization or its affiliate is not required to be |
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licensed to sell a plot in a dedicated cemetery. |
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SECTION 5. Subchapter C, Chapter 711, Health and Safety |
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Code, is amended by adding Section 711.0381 to read as follows: |
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Sec. 711.0381. SALE OF PLOTS BY CERTAIN PERSONS. (a) A |
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person who is not an officer, agent, or employee of the cemetery |
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organization in which a plot is located may act as a cemetery broker |
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in the sale of the exclusive right of sepulture in the plot: |
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(1) if the person is: |
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(A) the person named as grantee in the quitclaim |
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agreement or other instrument of conveyance; |
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(B) an heir of the grantee as described by |
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Section 711.039; or |
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(C) the grantee's agent who is registered with |
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the commission; |
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(2) subject to the rules of the cemetery organization |
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and the restrictions in the quitclaim agreement or other instrument |
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of conveyance; |
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(3) after a quitclaim agreement or other instrument of |
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conveyance that is acceptable to the cemetery organization is filed |
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and recorded with the cemetery organization; |
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(4) after payment in full to the cemetery organization |
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of any fees related to the transfer of ownership of the exclusive |
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right of sepulture in the plot; and |
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(5) after payment in full of the purchase price of the |
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exclusive right of sepulture in the plot. |
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(b) A quitclaim agreement or other instrument evidencing |
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the conveyance of the exclusive right of sepulture must be filed |
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with the cemetery organization not later than the third business |
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day after the date of the sale, and must be signed by the person |
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named in the original instrument of conveyance as the transferor or |
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the transferee and by any agent assisting in the transfer of the |
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interment rights. |
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(c) The sale of the exclusive right of sepulture in a group |
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of interment rights that were conveyed collectively may not be |
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divided without the consent of the cemetery organization. |
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(d) A person selling the right of sepulture in a plot shall |
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collect and remit to the cemetery organization all fees required |
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under Section 712.028. |
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(e) A person selling the right of sepulture in a plot must |
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collect and remit all other fees as required by the rules of the |
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cemetery organization. Fees required by the rules of the cemetery |
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organization for the sale of the right of sepulture in a plot under |
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this section may not exceed the fees charged on the sale of the |
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right of sepulture in a plot by the cemetery organization under |
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Section 711.038. |
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(f) A cemetery broker must keep a record of each sale under |
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this section. The record must include: |
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(1) the name and address of the purchaser; |
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(2) the date of the purchase; |
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(3) a copy of the purchase agreement, with the name and |
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address of the cemetery; |
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(4) a specific description of the interment rights; |
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(5) the purchase price; |
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(6) the amount of fees collected and remitted in |
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accordance with Subsection (d); and |
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(7) information on the disposal of the purchase |
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agreement, including whether the agreement was conveyed, canceled, |
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or voided. |
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(g) A person acting as a cemetery broker may only use the |
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quitclaim agreement or other instrument conveying ownership that is |
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authorized by the cemetery organization in which the plot is |
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located. |
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(h) A person who is not an officer, agent, or employee of the |
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cemetery organization in which the plot is located must register |
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with the Finance Commission of Texas to act as a cemetery broker in |
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the sale of the exclusive right of sepulture in a plot. |
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SECTION 6. Section 711.052(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) A person who is an individual, firm, association, |
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corporation, or municipality, or an officer, agent, or employee of |
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an individual, firm, association, corporation, or municipality, |
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commits an offense if the person: |
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(1) engages in a business for cemetery purposes in |
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this state other than through a corporation organized for that |
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purpose, if a corporation is required by law; |
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(2) fails or refuses to keep records of interment as |
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required by Sections 711.003 and 711.004; |
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(3) sells, offers to sell, or advertises for sale a |
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plot or the exclusive right of sepulture in a plot for purposes of |
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speculation or investment; [or] |
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(4) represents through advertising or printed |
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material that a retail department will be established for the |
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resale of the plots of plot purchasers, that specific improvements |
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will be made in the cemetery, or that specific merchandise or |
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services will be furnished to a plot owner, unless adequate funds or |
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reserves are created by the cemetery organization for the |
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represented purpose; or |
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(5) fails or refuses to keep records of sales or fails |
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or refuses to collect and remit fees as required by Section |
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711.0381. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |