(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 records either
in hard copy form or on microfiche or in an electronic database from
which the record can be retrieved and printed in hard copy in a manner
that does not impede the efficient completion of the examination.
(5)"Department" means the Texas Department
of Banking.
(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) - (F)(No change.)
(G)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;
(H)all recordkeeping exceptions and other department
or commissioner approvals or directions upon which the certificate
holder relies in connection with its current operations;
(I)all maps, plats, and property dedications, and
a list of these that reflects the dates of filing in the county records
under Health and Safety Code, §711.034;
(J)your current sales maps showing the sold and unsold
spaces in all gardens, mausoleums, crematories, and columbaria in
the cemetery;
(K)records and photographs relating to lawn crypt
construction and completion, to demonstrate you complied with Health
and Safety Code, §711.061, §711.063 and §711.064; [
§§711.061, 711.063 and 711.064;]
(L) - (O)(No change.)
(2) - (4)(No change.)
(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) - (H)(No change.)
(I)total deposits for each conveyance, which is the
sum of subparagraphs (G) and (H) of this subsection [paragraph
] for each conveyance; and
(J)cumulative monthly totals of the amounts listed
in subparagraphs (F), (G), and (H) of this subsection [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 and Safety Code, §§712.0441
- 712.0444.
(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.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on October 28, 2022
TRD-202204257 Catherine Reyer
General Counsel
Texas Department
of Banking
Earliest possible date of adoption: December 11, 2022
For further information, please call: (512) 475-1301
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