Texas House Bill HB4774

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the administration of perpetual care trust funds for capital improvements at perpetual care cemeteries.

Impact

The bill modifies the Health and Safety Code, specifically Section 712.025, which governs the use of perpetual care fund distributions. It introduces the provision that allows for a petition to be made to the district court for permission to use fund distributions for capital improvements as long as two criteria are met: the capital improvements do not adversely affect the cemetery’s ability to provide perpetual care, and they are in the best interest of the cemetery and the families involved. This change is expected to foster improvements in cemetery facilities and services, which may positively impact community satisfaction with local cemeteries.

Summary

House Bill 4774 aims to amend the administration of perpetual care trust funds designated for capital improvements at perpetual care cemeteries in Texas. The bill’s primary focus is to allow corporations managing perpetual care cemeteries to utilize distributions from these funds not just for general maintenance, but also for specific capital improvements. This flexibility is intended to ensure that these cemeteries can maintain and enhance their services, meeting the needs of families who have loved ones buried there.

Contention

While the bill primarily intends to enhance cemetery services, potential points of contention could arise regarding oversight and the conditions under which fund distributions are accessed for improvements. Some stakeholders might express concerns over how the courts will interpret the definitions of 'best interest' and 'adversely affect,' leading to possible inconsistencies in how perpetual care cemeteries are managed across Texas. The success of the bill hinges on balancing the need for improvements while ensuring the original intent of perpetual care is upheld.

Texas Constitutional Statutes Affected

Health And Safety Code

• Chapter 712. Perpetual Care Cemeteries
  • Section: 025