HBA-LJP, JVL H.B. 1460 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1460 By: Williams Financial Institutions 3/16/2001 Committee Report (Amended) BACKGROUND AND PURPOSE Under current law, certain cemeteries without endowment funds or with insufficient endowment funds are able to use the terms "perpetual" or "endowment" in the cemetery's name or advertising. There are concerns that the use of these terms is 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" 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. EXPLANATION OF AMENDMENTS Committee Amendment No. 1 adds the prohibition that a cemetery corporation that does not operate as a perpetual care cemetery is not to use a term which suggests "perpetual care" or "endowment care" standards in the cemetery's name or in any advertising relating to the cemetery.