|
(a)What unique defined terms are used in this section? (1)"You" or "I" means the owner or operator of a perpetual care cemetery. (2)"Perpetual care property" or "property" means all niches, crypts, and ground space sold in connection with perpetual care. (3)"Consumer complaint" means a written complaint you receive, either at your corporate office or your cemetery location, from a consumer regarding the manner in which you operate your perpetual care cemetery or perform your obligations under a perpetual care cemetery contract or Health and Safety Code, Chapter 711 or Chapter 712. The term includes a written complaint you receive either directly from the consumer or through the Department. The term does not include an oral complaint. (4)"Maintain" means to store and retain information and documents specified by this section in such a way that the information can be expeditiously retrieved for examination by the commissioner, whether by hard copy or produced electronically and printed for review. (b)What records must I maintain? (1)You must maintain the following records in a general file that is readily accessible to the department: (A)the current certificate of authority to operate a perpetual care cemetery, unless prominently displayed in the cemetery office; (B)the latest filed annual statement required under Health & Safety Code, §712.041; (C)your most current consolidated financial statement or, in the alternative, your most current financial records and/or tax return, provided that the records must substantiate your use or expenditure of fund income; (D)a sample form of each purchase agreement you currently use; (E)a sample form of each document of conveyance of interment rights you currently use; (F)the current trust agreement governing the fund; (G)all examination reports and official correspondence sent to you by the banking department during the preceding three years; (H)all trustee/depository statements covering the perpetual care fund, provided at least quarterly, and all written correspondence from the trustee that you received since the last examination; (I)minutes of each meeting of the cemetery corporation's board of directors held since the last banking department examination or, if the cemetery corporation is a wholly-owned subsidiary and does not hold board meetings, minutes of each meeting of the parent corporation's board of directors held since the last examination; (J)all correspondence you sent to or received from the banking department during the preceding three years; (K)all maps, plats, and property dedications that you have filed reflecting the dates of filing in the county records under Health & Safety Code, §711.034; (L)your current sales maps showing the sold and unsold spaces in all gardens, mausoleums, crematories, and columbaria in the cemetery; (M)records and photographs relating to lawn crypt construction and completion, to demonstrate you complied with Health & Safety Code, §711.061; (N)each cemetery price list that you used at any time in the preceding three years; and (O)your quarterly reconciliation of capital gains and losses in the fund since the last examination, if your trust agreement includes capital gains and losses in the definition of trust income. (2)You must maintain the following records in a segregated consumer complaint file: (A)each written complaint that you received from a consumer regarding the manner in which you operate the perpetual care cemetery or perform your contractual obligations to a consumer; and (B)all written correspondence and other records relating to a consumer complaint, including records showing how you resolved or otherwise disposed of the complaint. (3)You must maintain either: (A)separate files for each property purchaser, filed alphabetically or numerically, that contains all executed property purchase agreements, conveyance documents, and all related information; or (B)files referenced by property location if: (i)the cemetery maintains an alphabetical index on which the names of the property owners or purchasers can be cross-referenced to their property location; and (ii)the files contain all executed property purchase agreements, conveyance documents, and all related information. (4)You must maintain, and update at least monthly, a historical register of all interment rights sold, showing: (A)the purchaser's name; (B)the date of purchase; (C)the purchase agreement number; (D)a specific description of the property you sold; and (E)how and when you disposed of the purchase agreement, including whether the agreement was conveyed, canceled, or voided. (5)You must maintain a monthly recapitulation of all conveyance of interment rights issued since the date of your last examination that includes, for each paid-in-full property sale: (A)the date the purchase agreement was executed; (B)the property purchaser's name; (C)the purchase agreement number; (D)the date that the purchase agreement was paid-in-full; (E)the conveyance document number; (F)the amount of ground area, number of crypts, or number of niches conveyed under the purchase agreement, and the corresponding sales price of each; (G)the deposits to the fund from sales, as required by Health & Safety Code, §712.028; (H)any additional deposits to the fund: (i)that are required by contract in an amount in excess of the deposits required by Health & Safety Code, §712.028; (ii)that result from exchanged or traded-in property; (iii)that result from the sale of additional or subsequent rights of interment; or (iv)that are voluntarily made in excess of the amount of deposits required by Health & Safety Code, §712.028; (I)total deposits for each conveyance, which is the sum of subparagraphs (G) and (H) of this paragraph for each conveyance; and (J)cumulative monthly totals of the amounts listed in subparagraphs (F), (G), and (H) of this paragraph. (c)Where do I need to keep the records required under this section? (1)You must keep all required records at the perpetual care cemetery's physical location, corporate office located in this state, or another location approved in writing by the commissioner. (2)If the physical location of the records is not conducive to examination by banking department personnel, the banking department may request that you provide your records at a mutually agreeable location in your area that is more suitable for conducting an examination. In this situation, if you refuse to agree, the commissioner may consider your inaction to constitute refusal to submit to an examination and initiate an appropriate enforcement action against you under Health & Safety Code, §712.0441. (d)With respect to purchase agreements executed prior to the effective date of this section, a perpetual care cemetery will not violate this section if it cannot produce records required under this section that were not previously required by statute or rule.
This agency hereby certifies that the adoption has
been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on December 15, 2006
TRD-200606766 Sarah J. Shirley
General Counsel
Texas Department of Banking
Effective date: January 4, 2007
Proposal publication date: November 3, 2006
For further information, please call: (512) 475-1300
|
