The Finance Commission of Texas (the commission), on behalf of the Texas Department of Banking (the department), proposes to amend certain rules in 7 TAC Chapter 26, governing Texas perpetual care cemeteries. In particular, the commission proposes to amend §26.1, concerning fees to operate a perpetual care cemetery; §26.2, concerning required records to maintain; §26.3, concerning responding to written notice to prohibit interment of a homicide perpetrator in the same cemetery as a homicide victim; §26.4 concerning burial markers or monuments; §26.5, concerning conveyance of a cemetery plot; §26.6, concerning required record for cremains receptacle; §26.11, concerning information to consumers on how to file a consumer complaint; and §26.12, concerning response to written consumer complaints.

The proposed amendments arise from rule review conducted pursuant to Texas Government Code, §2001.039, and provide clarity, improve consistency and workability, eliminate an unneeded reference, and address certain clerical errors, and maintain consistent formatting within the chapter.

The rules in 7 TAC Chapter 26, govern perpetual care cemeteries. A reference is no longer needed and minor cleanup and reorganization is beneficial.

Section 26.1(a) sets out definitions for this section. Proposed amendments to §26.1(a) improve formatting consistency, add a definition for clarity, and consolidate all definitions into one subsection.

Section 26.1(b) discusses required fees for operating a perpetual care cemetery. Proposed amendment to §26.1(b) eliminates references to a renewal fee as it is no longer applicable.

Section 26.1(c) discusses the manner of fee payment. Proposed amendment to §26.1(c) makes a minor language change for clarity.

Section 26.1(d) explains how the annual assessment fee is adjusted. Proposed amendments to §26.1(d) remove the definition in order to consolidate all definitions in one subsection and make minor punctuation changes for clarity.

Section 26.1(e) explains when an additional examination may be necessary and what the associated costs may be. Proposed amendment to §26.1(e) makes a minor punctuation change for clarity.

Section 26.2(a) sets out definitions for this section. Proposed amendments to §26.2(a) add a definition for clarity and make a punctuation change for consistency.

Section 26.2(b) discusses record retention requirements. Proposed amendments to §26.2(b) make clerical changes for consistency.

Section 26.2(c) explains where records must be kept. Proposed amendments to §26.2(c) make clerical changes for consistency.

Section 26.3 provides suggested actions for cemetery owners relating to the interment of certain persons. Proposed amendments to §26.3 make clerical changes for clarity and consistency.

Section 26.4(h) explains requirements for cemeteries related to the purchase of outside burial markers or monuments. Proposed amendment to §26.4(h) makes a clerical change for clarity.

Section 26.5 explains the requirements for the issuance of conveyance documents for a cemetery plot. Proposed amendment to §26.5 makes a clerical change for consistency.

Section 26.6 explains the requirements for cremains receptacle maps. Proposed amendments to §26.6 make clerical changes for consistency.

Section 26.11(b) explains the requirements for providing notice of a consumer complaint. Proposed amendments to §26.11 make minor clerical changes for consistency.

Section 26.12(b) explains the requirements for responding to a consumer complaint. Proposed amendments to §26.12 make minor clerical changes for consistency.

Jesse Saucillo, Director of Non‑Depository Supervision, Texas Department of Banking, has determined that for the first five-year period the proposed rules are in effect, there will be no fiscal implications for state government or for local government as a result of enforcing or administering the proposed rules.

Director Saucillo also has determined that, for each year of the first five years the rules as proposed are in effect, the public benefit anticipated as a result of enforcing the rules is greater clarity of the rules and efficiency in the regulation of perpetual care cemeteries.

For each year of the first five years that the rules will be in effect, there will be no economic costs to persons required to comply with the rules as proposed.

For each year of the first five years that the rules will be in effect, the rules will not:

-- create or eliminate a government program;

-- require the creation of new employee positions or the elimination of existing employee positions;

-- require an increase or decrease in future legislative appropriations to the agency;

-- require an increase or decrease in fees paid to the agency;

-- create a new regulation;

-- expand, limit or repeal an existing regulation;

-- increase or decrease the number of individuals subject to the rules' applicability; and

-- positively or adversely affect this state's economy.

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities. There will be no difference in the cost of compliance for these entities.

Most of the proposed amendments are clerical changes to improve clarity. A small number of proposed amendments make slightly more substantive changes for purposes of better organization or make minor modifications to reflect current requirements, but those changes do not expand existing regulations or create new regulations.

To be considered, comments on the proposed amendments must be submitted no later than 5:00 p.m. on December 12, 2022. Comments should be addressed to General Counsel, Texas Department of Banking, Legal Division, 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294. Comments may also be submitted by email to legal@dob.texas.gov.

The amended rules are proposed under Texas Finance Code (Finance Code), §712.008, which authorizes the commission to adopt rules to enforce and administer Health and Safety Code, Chapter 712.

Chapter 712 of the Health and Safety Code is affected by the proposed amended sections.