BILL ANALYSIS C.S.H.B. 3803 By: Lambert Pensions, Investments & Financial Services Committee Report (Substituted) BACKGROUND AND PURPOSE Current Health and Safety Code provisions governing the Texas Department of Banking regulation of perpetual care cemeteries do not contain a confidentiality provision specific to perpetual care cemetery financial information, but Finance Code provisions governing prepaid funeral services require the department to regulate prepaid funeral contracts and make certain financial information relating to such a contract seller confidential. The bill author has informed the committee that the department regulates entities that are both permitted prepaid funeral contract sellers and registered perpetual care cemeteries, which can cause some conflicting applications. C.S.H.B. 3803 seeks to remove a potential conflict by adding confidentiality provisions to the Health and Safety Code that mirror the Finance Code confidentiality provisions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 3803 amends the Health and Safety Code to establish that the following information is confidential: information relating to the financial condition of a perpetual care cemetery or fund that the Texas Department of Banking obtains directly or indirectly, through examination or otherwise, other than a published statement; and a department file or record relating to the financial condition of a perpetual care cemetery or fund. However, the bill authorizes the banking commissioner of Texas to disclose such information to an agency, department, or instrumentality of this state, another state, or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 3803 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Both the substitute and the introduced establish that certain information relating to the financial condition of a perpetual care cemetery or fund is confidential. However, the introduced specified that information as records or other information retained by the Texas Department of Banking, whereas the substitute specifies that information as information, other than a published statement, that the department obtains directly or indirectly, through examination or otherwise, and a department file or record relating to such a financial condition. Additionally, the introduced established that the applicable information is not subject to disclosure under state public information law, whereas the substitute does not. Whereas the introduced authorized the department to disclose information made confidential under the bill to the state, a political subdivision of the state, or a state agency if the department considers disclosure to be in the best interest of the public or necessary or proper to aid in the enforcement of a law or rule, the substitute authorizes the banking commissioner of Texas instead to disclose such information to an agency, department, or instrumentality of this state, another state or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States. The substitute changes the bill's effective date to provide for its possible immediate effect, contingent on receiving the requisite constitutional vote, whereas the introduced provided only for the bill to take effect September 1, 2025, with no possibility for immediate effect.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 3803
By: Lambert
Pensions, Investments & Financial Services
Committee Report (Substituted)
C.S.H.B. 3803
By: Lambert
Pensions, Investments & Financial Services
Committee Report (Substituted)
BACKGROUND AND PURPOSE Current Health and Safety Code provisions governing the Texas Department of Banking regulation of perpetual care cemeteries do not contain a confidentiality provision specific to perpetual care cemetery financial information, but Finance Code provisions governing prepaid funeral services require the department to regulate prepaid funeral contracts and make certain financial information relating to such a contract seller confidential. The bill author has informed the committee that the department regulates entities that are both permitted prepaid funeral contract sellers and registered perpetual care cemeteries, which can cause some conflicting applications. C.S.H.B. 3803 seeks to remove a potential conflict by adding confidentiality provisions to the Health and Safety Code that mirror the Finance Code confidentiality provisions.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS C.S.H.B. 3803 amends the Health and Safety Code to establish that the following information is confidential: information relating to the financial condition of a perpetual care cemetery or fund that the Texas Department of Banking obtains directly or indirectly, through examination or otherwise, other than a published statement; and a department file or record relating to the financial condition of a perpetual care cemetery or fund. However, the bill authorizes the banking commissioner of Texas to disclose such information to an agency, department, or instrumentality of this state, another state, or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 3803 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Both the substitute and the introduced establish that certain information relating to the financial condition of a perpetual care cemetery or fund is confidential. However, the introduced specified that information as records or other information retained by the Texas Department of Banking, whereas the substitute specifies that information as information, other than a published statement, that the department obtains directly or indirectly, through examination or otherwise, and a department file or record relating to such a financial condition. Additionally, the introduced established that the applicable information is not subject to disclosure under state public information law, whereas the substitute does not. Whereas the introduced authorized the department to disclose information made confidential under the bill to the state, a political subdivision of the state, or a state agency if the department considers disclosure to be in the best interest of the public or necessary or proper to aid in the enforcement of a law or rule, the substitute authorizes the banking commissioner of Texas instead to disclose such information to an agency, department, or instrumentality of this state, another state or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States. The substitute changes the bill's effective date to provide for its possible immediate effect, contingent on receiving the requisite constitutional vote, whereas the introduced provided only for the bill to take effect September 1, 2025, with no possibility for immediate effect.
BACKGROUND AND PURPOSE
Current Health and Safety Code provisions governing the Texas Department of Banking regulation of perpetual care cemeteries do not contain a confidentiality provision specific to perpetual care cemetery financial information, but Finance Code provisions governing prepaid funeral services require the department to regulate prepaid funeral contracts and make certain financial information relating to such a contract seller confidential. The bill author has informed the committee that the department regulates entities that are both permitted prepaid funeral contract sellers and registered perpetual care cemeteries, which can cause some conflicting applications. C.S.H.B. 3803 seeks to remove a potential conflict by adding confidentiality provisions to the Health and Safety Code that mirror the Finance Code confidentiality provisions.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 3803 amends the Health and Safety Code to establish that the following information is confidential:
information relating to the financial condition of a perpetual care cemetery or fund that the Texas Department of Banking obtains directly or indirectly, through examination or otherwise, other than a published statement; and
a department file or record relating to the financial condition of a perpetual care cemetery or fund.
However, the bill authorizes the banking commissioner of Texas to disclose such information to an agency, department, or instrumentality of this state, another state, or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 3803 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
Both the substitute and the introduced establish that certain information relating to the financial condition of a perpetual care cemetery or fund is confidential. However, the introduced specified that information as records or other information retained by the Texas Department of Banking, whereas the substitute specifies that information as information, other than a published statement, that the department obtains directly or indirectly, through examination or otherwise, and a department file or record relating to such a financial condition. Additionally, the introduced established that the applicable information is not subject to disclosure under state public information law, whereas the substitute does not.
Whereas the introduced authorized the department to disclose information made confidential under the bill to the state, a political subdivision of the state, or a state agency if the department considers disclosure to be in the best interest of the public or necessary or proper to aid in the enforcement of a law or rule, the substitute authorizes the banking commissioner of Texas instead to disclose such information to an agency, department, or instrumentality of this state, another state or the United States if the commissioner determines disclosure is in the best interest of the public and necessary or proper to enforce the laws of this state, another state, or the United States.
The substitute changes the bill's effective date to provide for its possible immediate effect, contingent on receiving the requisite constitutional vote, whereas the introduced provided only for the bill to take effect September 1, 2025, with no possibility for immediate effect.