The Finance Commission of Texas (the commission) proposes new §26.2, concerning recordkeeping requirements for perpetual care cemeteries.

Proposed §26.2 will require owners or operators of perpetual care cemeteries to keep a general file that includes records such as documents and correspondence relating to perpetual care operations, financial information, sample forms of agreements, trustee or bank statements, corporate information, and other documents required to be maintained by provisions of Health & Safety Code, Chapters 711 and 712. The proposed section will also require owners or operators to keep a consumer complaint file, purchase agreement files, a historical register of all interment rights sold, and a monthly recapitulation of all conveyances of interment rights issued subsequent to an examination.

Other than records of consumer complaints, the records that proposed §26.2 will require to be maintained were previously recommended to be maintained by Texas Department of Banking Policy Memorandum No. 1013 (November 25, 1996), as those necessary to support examinations by the banking commissioner. The banking department has not experienced significant recordkeeping compliance problems since Memorandum No. 1013 has been in effect because the recommended records are readily available to perpetual care cemeteries. The new section will appropriately formalize Memorandum No. 1013 as a rule promulgated under Health & Safety Code, §712.008. Consumer complaint records must be maintained for examination by the commissioner under Health & Safety Code, §712.044(a), as amended by the legislature effective September 1, 2001.

Finally, proposed §26.2 will require that records be kept at the cemetery or corporate office. If these locations are not conducive to examination, the proposed section authorizes the banking department to request delivery of the records to another more suitable location for examination.

Stephanie Newberg, Deputy Commissioner, Texas Department of Banking, has determined that, for each year of the first five years that the section is in effect, there will be no fiscal implication for state or local government as a result of enforcing or administering the section as adopted.

Ms. Newberg also has determined that, for each of the first five years the section as proposed is in effect, the public benefit will be clear guidance for perpetual care cemeteries on the records that are required under Health & Safety Code, Chapter 712 for examination by the commissioner. No economic cost will be incurred by a person required to comply with this section, and there will be no deleterious effect on small businesses.

Comments concerning the proposed section should be submitted within 30 days of publication to Robin Robinson, Assistant General Counsel, Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294, or by e-mail to robin.robinson@banking.state.tx.us.

The section is proposed under Health & Safety Code, §712.008, which authorizes the commission to adopt rules necessary to enforce and administer Health & Safety Code, Chapter 712.

Health & Safety Code, Chapter 712, is affected by the proposed section.