HBA-LJP, JVL H.B. 1460 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1460
By: Williams
Financial Institutions
6/14/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, certain cemeteries without endowment funds
or with insufficient endowment funds were able to use the terms "perpetual"
or "endowment" in the cemetery's name or advertising.  There were concerns
that the use of these terms was misleading and confusing.  House Bill 1460
prevents cemeteries from using the words "perpetual care" or "endowment
care" in the cemeteries's name and advertising, unless it is operated as a
perpetual care cemetery in accordance with existing law. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1460 amends the Health and Safety Code to prohibit a cemetery
corporation, that does not operate as a perpetual care cemetery, from using
the words "perpetual care" or "endowment care" or any other term that
suggests "perpetual care" or "endowment care" standards in the cemetery's
name or in any advertising relating to the cemetery.  The bill requires a
cemetery corporation that is not in compliance with the prohibition on
using these terms in its name to amend its articles of incorporation to
comply with this Act not later than December 31, 2002. 

EFFECTIVE DATE

September 1, 2001.