HBA-MPM C.S.H.B. 1975 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1975
By: Hunter
Business & Industry
3/27/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current state law authorizes cemetery plot owners to organize a nonprofit
cemetery organization to receive title to land previously dedicated to
cemetery purposes.  If the decision to incorporate is made, the plot owners
must also select a board of directors from among themselves.  Current law
does not provide for a board of directors for a cemetery organization
incorporated in accordance to the Texas Non-Profit Corporation Act, nor
does it specify how the board of directors are selected.  C.S.H.B. 1975
requires an initial board of directors to manage the corporation and sets
forth a method for selecting subsequent board members for an organization
incorporated under the Texas Nonprofit Corporation Act. 

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

C.S.H.B. 1975 amends the Health and Safety Code to provide that if the plot
owners of a cemetery organization vote to incorporate in accordance with
the Texas Non-Profit Corporation Act, on formation of the corporation, an
initial board of directors (board) composed of members named in the
articles of incorporation are required to manage the corporation.  The bill
requires subsequent board members to be selected according to the bylaws of
the corporation.  The bill provides that plot owners in a cemetery owned by
a nonprofit corporation are not shareholders of the corporation. 

The bill repeals law specifying that a person who purchases a plot from a
nonprofit cemetery corporation is a shareholder of the corporation or in
any corporation that owns the cemetery. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1975 modifies the original by providing that plot owners of a
cemetery organization may vote to incorporate in accordance with the Texas
Non-Profit Corporation Act (Act), rather than requiring plot owners of a
cemetery organization to incorporate in accordance with the Act upon the
decision by the owners to incorporate.