HBA-MPM H.B. 1975 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1975 By: Hunter Business & Industry 3/13/2001 Introduced 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. Currently, nonprofit cemetery organizations are not required to be organized in compliance with the Texas Nonprofit Corporation Act. House Bill 1975 requires nonprofit cemetery corporations to be organized in compliance with 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 House Bill 1975 amends the Health and Safety Code to require a corporation formed in order to receive title to land previously dedicated to cemetery purposes to be organized in accordance with the incorporator and the articles of incorporation requirements under the Texas Non-Profit Corporation Act if plot owners vote to incorporate. The bill requires an initial board of directors (board) of the corporation composed of members named in the articles of incorporation 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.