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A BILL TO BE ENTITLED
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AN ACT
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relating to cemeteries and perpetual care cemetery corporations; |
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creating an offense. |
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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 (5-a) and amending Subdivisions (6) |
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and (21) to read as follows: |
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(5-a) "Cremains receptacle" means a marker, boulder, |
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bench, pedestal, pillar, or other aboveground vessel that contains |
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niches for cremated remains. |
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(6) "Cremated remains" or "cremains" means the bone |
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fragments remaining after the cremation process, which may include |
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the residue of any foreign materials that were cremated with the |
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human remains. |
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(21) "Niche" means a space in a columbarium or |
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cremains receptacle used or intended to be used for the placement of |
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cremated remains in an urn or other container. |
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SECTION 2. Subsections (a) and (b), Section 711.012, Health |
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and Safety Code, are 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, 711.004, 711.007, |
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711.008, 711.0105, 711.021-711.024, 711.032-711.036, 711.038, |
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711.040-711.042, 711.052, 711.061, 711.063, and 711.064 [711.062] |
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relating to perpetual care cemeteries. |
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(b) The Texas Funeral Service Commission may adopt rules, |
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establish procedures, and prescribe forms to enforce and administer |
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Sections 711.003, 711.008, 711.0105, 711.021-711.034, 711.038, |
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711.0395, 711.041, 711.042, 711.052, 711.061, 711.063, and 711.064 |
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[711.062] relating to cemeteries that are not perpetual care |
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cemeteries. |
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SECTION 3. Section 711.021, Health and Safety Code, is |
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amended by amending Subsection (b) and adding Subsection (b-1) to |
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read as follows: |
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(b) A corporation conducting a business for cemetery |
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purposes, including the sale of plots, may be formed only as |
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provided by this section. The corporation must be a filing entity |
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or foreign filing entity, as those terms are defined by Section |
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1.002, Business Organizations Code [either:
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[(1)
a nonprofit corporation organized in accordance
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with Section A or B, Article 3.01, Texas Non-Profit Corporation Act
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(Article 1396-3.01, Vernon's Texas Civil Statutes), or with Section
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711.022; or
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[(2) a private corporation operated for profit]. |
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(b-1) The formation and governance of a nonprofit |
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corporation for cemetery purposes is subject to Sections 711.022 |
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and 711.023. |
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SECTION 4. Section 711.034, Health and Safety Code, is |
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amended by amending Subsection (e) and adding Subsection (e-1) to |
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read as follows: |
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(e) The certificate or declaration may contain a provision |
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permitting the directors by order to resurvey and change the shape |
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and size of the property for which the associated map or plat is |
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filed if that change does not disturb any interred remains. Except |
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as provided by Subsection (e-1), if [If] a change is made, the |
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cemetery organization shall: |
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(1) file an amended map or plat not later than the last |
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day of the next calendar quarter; and |
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(2) [shall] indicate any change in a specific unique |
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number assigned to a plot, crypt, lawn crypt, or columbarium niche. |
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(e-1) A cemetery organization that holds a certificate of |
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authority to operate a perpetual care cemetery under Chapter 712 is |
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not required to file an amended map or plat if: |
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(1) the only change to the property is: |
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(A) the placement of a cremains receptacle that |
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contains not more than four niches on a plot; or |
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(B) the alteration of an existing cremains |
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receptacle on a plot; and |
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(2) the cemetery organization maintains records, as |
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required by rules adopted by the Finance Commission of Texas, that |
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specify the location of the cremains receptacle. |
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SECTION 5. Subsections (a) and (c), Section 711.051, Health |
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and Safety Code, are amended to read as follows: |
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(a) A cemetery corporation that violates this chapter or |
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Chapter 712 forfeits the corporation's charter and right to do |
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business in this state unless the corporation corrects the |
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violation before the 30th [91st] day after the date of receiving |
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notice of the violation from the attorney general. |
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(c) If the violation is not corrected before the 30th [91st] |
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day after the date of the notice, the attorney general shall bring |
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suit or quo warranto proceedings for the forfeiture of the |
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corporation's charter and dissolution of the corporation in a [the] |
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district court of Travis County or of any county in which the |
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violation occurred. |
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SECTION 6. Subsection (a) and (d), Section 711.052, Health |
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and Safety Code, are 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; |
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(5) makes more than one interment in a plot in a |
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cemetery operated by a cemetery organization other than as provided |
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by Section 711.0395; or |
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(6) removes remains from a plot in a cemetery operated |
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by a cemetery organization without complying with Section 711.004. |
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(d) Except as provided by this subsection, an [An] offense |
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under this section is a Class A misdemeanor. An offense under |
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Subsection (a)(5) or (6) is a felony of the second degree. |
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SECTION 7. Section 712.003, Health and Safety Code, is |
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amended by amending Subsection (c) and adding Subsection (c-1) to |
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read as follows: |
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(c) A corporation chartered on or after September 1, 1993, |
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and before September 1, 2013, must have: |
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(1) a minimum capital of $75,000; and |
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(2) a minimum of $75,000 in capital for each |
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certificate of authority to operate a perpetual care cemetery |
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issued to the corporation on or after September 1, 2013. |
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(c-1) A corporation whose certificate of formation takes |
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effect on or after September 1, 2013, must have a minimum of $75,000 |
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in capital for each certificate of authority to operate a perpetual |
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care cemetery issued to the corporation. |
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SECTION 8. Subsection (b), Section 712.0039, Health and |
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Safety Code, is amended to read as follows: |
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(b) If the proposed transferee would own more than 50 |
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percent of the stock or other ownership or membership interest of |
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the corporation and is not a certificate holder, the proposed |
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transferee shall file any necessary documents with the secretary of |
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state and an application for a certificate of authority with the |
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department as required by this chapter. If the proposed transferee |
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is required to apply for a certificate of authority under this |
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subsection, the [The] transfer of the perpetual care fund may not |
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occur until after the date a certificate of authority is issued to |
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the transferee applicant. |
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SECTION 9. Subsection (g), Section 712.0441, Health and |
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Safety Code, is amended to read as follows: |
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(g) If a violation described in Subsection (a) has not been |
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corrected before the 31st day after the date the corporation |
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receives [with 90 days after the receipt of] written notice [by the
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corporation] from the commissioner of the violation, the |
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commissioner may report the violation to the attorney general, who |
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shall bring suit or quo warranto proceedings for the forfeiture of |
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the corporation's charter and dissolution of the corporation in a |
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[the] district court of Travis County or of any county in which the |
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corporation's [its] perpetual care cemetery is operated. |
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SECTION 10. Subsections (a) and (c), Section 711.051 and |
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Subsection (g), Section 712.0441, Health and Safety Code, as |
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amended by this Act, apply only to a violation that occurs on or |
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after the effective date of this Act. A violation that occurs |
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before the effective date of this Act is governed by the law |
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applicable to the violation immediately before that date, and the |
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former law is continued in effect for that purpose. |
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SECTION 11. This Act takes effect September 1, 2013. |
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