Texas 2017 - 85th Regular

Texas House Bill HB2821 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	85R16144 JG-F
2	2	By: Dean H.B. No. 2821
3	3	Substitute the following for H.B. No. 2821:
4	4	By: Burrows C.S.H.B. No. 2821
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of cemeteries and the administration of
10	10	perpetual care trust funds.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 711.056(a), Health and Safety Code, is
13	13	amended to read as follows:
14	14	(a) If after a hearing conducted as provided by Chapter
15	15	2001, Government Code, the trier of fact finds that a violation of
16	16	this chapter or a rule of the Finance Commission of Texas
17	17	establishes a pattern of wilful disregard for the requirements of
18	18	this chapter or rules of the finance commission, the trier of fact
19	19	may [shall] recommend to the commissioner that the maximum
20	20	administrative penalty permitted under Section 711.055 be imposed
21	21	on the person committing the violation or that the commissioner
22	22	cancel or not renew:
23	23	(1) the person's registration under Subchapter C-1, if
24	24	the person is registered under that subchapter; or
25	25	(2) the person's permit under Chapter 154, Finance
26	26	Code, if the person holds such a permit.
27	27	SECTION 2. Section 712.0034, Health and Safety Code, is
28	28	amended by amending Subsection (b) and adding Subsection (c) to
29	29	read as follows:
30	30	(b) To qualify for a certificate of authority under this
31	31	chapter, an applicant must demonstrate to the satisfaction of the
32	32	commissioner that:
33	33	(1) the applicant's business ability, experience,
34	34	character, financial condition, and general fitness warrant the
35	35	public's confidence;
36	36	(2) the cemetery operations manager has at least two
37	37	years of experience in cemetery management;
38	38	(3) the issuance of the certificate of authority is in
39	39	the public interest;
40	40	(4) the applicant, a principal of the applicant, or a
41	41	person who controls the applicant does not owe the department a
42	42	delinquent fee, assessment, administrative penalty, or other
43	43	amount imposed under this chapter or a rule adopted or order issued
44	44	under this chapter; and
45	45	(5) the applicant corporation:
46	46	(A) is in good standing and statutory compliance
47	47	with this state;
48	48	(B) is authorized to engage in the perpetual care
49	49	cemetery business in this state; [and]
50	50	(C) does not owe any delinquent franchise or
51	51	other taxes to this state; and
52	52	(D) wholly owns all land on which the perpetual
53	53	care cemetery will be located.
54	54	(c) For purposes of Subsection (b)(5)(D), an applicant
55	55	corporation is considered to wholly own land regardless of whether
56	56	the land is subject to a mortgage, deed of trust, or other lien.
57	57	SECTION 3. Section 712.0037, Health and Safety Code, is
58	58	amended by adding Subsections (a-1) and (a-2) to read as follows:
59	59	(a-1) Notwithstanding Subsection (a), a certificate holder
60	60	holding a certificate of authority issued before September 1, 2017,
61	61	that does not on that date satisfy the ownership requirement under
62	62	712.0034(b)(5)(D) is not required to satisfy that ownership
63	63	requirement as a condition of renewal until September 1, 2022. The
64	64	commissioner may extend the period of compliance for the ownership
65	65	requirement if the certificate holder:
66	66	(1) files a written application for the extension in
67	67	the form and manner required by the department; and
68	68	(2) shows good cause for the extension.
69	69	(a-2) This subsection and Subsection (a-1) expire September
70	70	1, 2028.
71	71	SECTION 4. Section 712.021, Health and Safety Code, is
72	72	amended by amending Subsections (a) and (g) and adding Subsection
73	73	(h) to read as follows:
74	74	(a) Except as provided by Subsection (h), a [A] corporation
75	75	that operates a perpetual care cemetery in this state shall have a
76	76	fund established with a trust company or a bank with trust powers
77	77	that is located in this state. The trust company or bank may not
78	78	have more than one director who is also a director of the
79	79	corporation.
80	80	(g) In this subsection, "master trust account" means an
81	81	account containing the perpetual care trust funds of two or more
82	82	certificate holders for the purpose of collective investment and
83	83	administration. The trustors of two or more perpetual care trust
84	84	funds may establish a master [common] trust account [fund] in which
85	85	deposits required by this chapter are made, provided that separate
86	86	records of principal and income are maintained for each perpetual
87	87	care cemetery for the benefit of which the master [common] trust
88	88	account [fund] is established, and further provided that the income
89	89	attributable to each perpetual care cemetery is used only for the
90	90	perpetual care of that cemetery.
91	91	(h) A corporation may apply to the commissioner for
92	92	temporary relief and placement of a perpetual care trust fund in a
93	93	segregated interest bearing account at a Texas financial
94	94	institution, as defined by Section 201.101, Finance Code, if the
95	95	corporation:
96	96	(1) has been operating a perpetual care cemetery in
97	97	this state for at least two years; and
98	98	(2) has a perpetual care trust fund with a balance of
99	99	less than $100,000, the income of which is insufficient to pay
100	100	trustee fees.
101	101	SECTION 5. This Act takes effect September 1, 2017.