Texas 2017 - 85th Regular

Texas Senate Bill SB1402 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Campbell S.B. No. 1402
2		-	(Dean, Parker)
	1	+	S.B. No. 1402
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the regulation of cemeteries and the administration of
8	6		perpetual care trust funds.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 711.056(a), Health and Safety Code, is
11	9		amended to read as follows:
12	10		(a) If after a hearing conducted as provided by Chapter
13	11		2001, Government Code, the trier of fact finds that a violation of
14	12		this chapter or a rule of the Finance Commission of Texas
15	13		establishes a pattern of wilful disregard for the requirements of
16	14		this chapter or rules of the finance commission, the trier of fact
17	15		may [shall] recommend to the commissioner that the maximum
18	16		administrative penalty permitted under Section 711.055 be imposed
19	17		on the person committing the violation or that the commissioner
20	18		cancel or not renew:
21	19		(1) the person's registration under Subchapter C-1, if
22	20		the person is registered under that subchapter; or
23	21		(2) the person's permit under Chapter 154, Finance
24	22		Code, if the person holds such a permit.
25	23		SECTION 2. Section 712.0034, Health and Safety Code, is
26	24		amended by amending Subsection (b) and adding Subsection (c) to
27	25		read as follows:
28	26		(b) To qualify for a certificate of authority under this
29	27		chapter, an applicant must demonstrate to the satisfaction of the
30	28		commissioner that:
31	29		(1) the applicant's business ability, experience,
32	30		character, financial condition, and general fitness warrant the
33	31		public's confidence;
34	32		(2) the cemetery operations manager has at least two
35	33		years of experience in cemetery management;
36	34		(3) the issuance of the certificate of authority is in
37	35		the public interest;
38	36		(4) the applicant, a principal of the applicant, or a
39	37		person who controls the applicant does not owe the department a
40	38		delinquent fee, assessment, administrative penalty, or other
41	39		amount imposed under this chapter or a rule adopted or order issued
42	40		under this chapter; and
43	41		(5) the applicant corporation:
44	42		(A) is in good standing and statutory compliance
45	43		with this state;
46	44		(B) is authorized to engage in the perpetual care
47	45		cemetery business in this state; [and]
48	46		(C) does not owe any delinquent franchise or
49	47		other taxes to this state; and
50	48		(D) wholly owns all land on which the perpetual
51	49		care cemetery will be located.
52	50		(c) For purposes of Subsection (b)(5)(D), an applicant
53	51		corporation is considered to wholly own land regardless of whether
54	52		the land is subject to a mortgage, deed of trust, or other lien.
55	53		SECTION 3. Section 712.0037, Health and Safety Code, is
56	54		amended by adding Subsections (a-1) and (a-2) to read as follows:
57	55		(a-1) Notwithstanding Subsection (a), a certificate holder
58	56		holding a certificate of authority issued before September 1, 2017,
59	57		that does not on that date satisfy the ownership requirement under
60	58		Section 712.0034(b)(5)(D) is not required to satisfy that ownership
61	59		requirement as a condition of renewal until September 1, 2022. The
62	60		commissioner may extend the period of compliance for the ownership
63	61		requirement if the certificate holder:
64	62		(1) files a written application for the extension in
65	63		the form and manner required by the department; and
66	64		(2) shows good cause for the extension.
67	65		(a-2) This subsection and Subsection (a-1) expire September
68	66		1, 2028.
69	67		SECTION 4. Section 712.021, Health and Safety Code, is
70	68		amended by amending Subsections (a) and (g) and adding Subsection
71	69		(h) to read as follows:
72	70		(a) Except as provided by Subsection (h), a [A] corporation
73	71		that operates a perpetual care cemetery in this state shall have a
74	72		fund established with a trust company or a bank with trust powers
75	73		that is located in this state. The trust company or bank may not
76	74		have more than one director who is also a director of the
77	75		corporation.
78	76		(g) In this subsection, "master trust account" means an
79	77		account containing the perpetual care trust funds of two or more
80	78		certificate holders for the purpose of collective investment and
81	79		administration. The trustors of two or more perpetual care trust
82	80		funds may establish a master [common] trust account [fund] in which
83	81		deposits required by this chapter are made, provided that separate
84	82		records of principal and income are maintained for each perpetual
85	83		care cemetery for the benefit of which the master [common] trust
86	84		account [fund] is established, and further provided that the income
87	85		attributable to each perpetual care cemetery is used only for the
88	86		perpetual care of that cemetery.
89	87		(h) A corporation may apply to the commissioner for
90	88		temporary relief and placement of a perpetual care trust fund in a
91	89		segregated interest bearing account at a Texas financial
92	90		institution, as defined by Section 201.101, Finance Code, if the
93	91		corporation:
94	92		(1) has been operating a perpetual care cemetery in
95	93		this state for at least two years; and
96	94		(2) has a perpetual care trust fund with a balance of
97	95		less than $100,000, the income of which is insufficient to pay
98	96		trustee fees.
99	97		SECTION 5. This Act takes effect September 1, 2017.
	98	+	______________________________ ______________________________
	99	+	President of the Senate Speaker of the House
	100	+	I hereby certify that S.B. No. 1402 passed the Senate on
	101	+	April 19, 2017, by the following vote: Yeas 31, Nays 0.
	102	+	______________________________
	103	+	Secretary of the Senate
	104	+	I hereby certify that S.B. No. 1402 passed the House on
	105	+	May 9, 2017, by the following vote: Yeas 145, Nays 0, two present
	106	+	not voting.
	107	+	______________________________
	108	+	Chief Clerk of the House
	109	+	Approved:
	110	+	______________________________
	111	+	Date
	112	+	______________________________
	113	+	Governor