Tex. Health & Safety Code Section 712.005
Cancellation of Charter for Failure to Begin Operation of Perpetual Care Cemetery

(a)

If a corporation chartered under Section 712.003 (Registration Required; Minimum Capital) does not begin actual operation of its perpetual care cemetery for six months after the charter is granted and delivered, the commissioner may instruct the secretary of state to cancel the charter and serve notice of the cancellation on the corporation by registered or certified letter, addressed to the corporation’s address.

(b)

The commissioner may rescind the order of cancellation on:

(1)

the application of the directors;

(2)

the payment to the commissioner of a penalty set by the commissioner in an amount not to exceed $500;

(3)

the execution and delivery to the commissioner of an agreement to begin actual operation of the perpetual care cemetery not later than one month after the date of the agreement; and

(4)

a proper showing by the trustee that the fund is on deposit.

(c)

If the corporation does not begin actual operation as agreed, the commissioner by order may set aside the order of rescission and the cancellation is final. The commissioner shall make a full report of the cancellation to the attorney general for liquidation of the corporation, if liquidation is necessary.

(d)

If no sale of the dedicated cemetery property of the corporation is made, a certified copy of the order of cancellation authorizes the trustee to refund the fund to the incorporators who signed the corporation’s articles of incorporation.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 634, Sec. 29, eff. Sept. 1, 1993.

Source: Section 712.005 — Cancellation of Charter for Failure to Begin Operation of Perpetual Care Cemetery, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­712.­htm#712.­005 (accessed May 26, 2025).

712.001
Definitions 712.002
Exemptions from Chapter 712.003
Registration Required 712.004
Perpetual Care Trust Fund Required 712.005
Cancellation of Charter for Failure to Begin Operation of Perpetual Care Cemetery 712.007
Notice of Perpetual Care Required 712.008
Rules 712.009
Limitations on Burials 712.020
Conflict with Other Law 712.021
Establishment and Purposes of Fund 712.022
Operation of Perpetual Care Cemetery 712.023
Validity of Contributions 712.024
Amendment of Trust Instrument 712.025
Use of Fund Distributions 712.026
Suit by Plot Owners to Maintain Perpetual Care 712.027
Investment of Fund 712.028
Amount of Fund Deposits from Sales 712.029
Accounting for and Depositing Amounts 712.030
Use of Gift for Special Care of Plot in Perpetual Care Cemetery 712.0032
Certificate of Authority Requirement 712.0033
Certificate of Authority Application 712.0034
Qualifications for Certificate of Authority 712.0035
Issuance of Certificate of Authority 712.0036
Term of Certificate of Authority 712.0037
Renewal of Certificate of Authority 712.0038
Transfer or Assignment Prohibited 712.0039
Transfer of Business Ownership 712.041
Annual Statement of Funds 712.042
Fees 712.043
Additional Fund Report 712.044
Examination of Records 712.045
Revocation or Suspension of Certificate of Authority 712.048
Criminal Penalties 712.061
Offer and Sale of Undeveloped Mausoleum Space 712.062
Deposits to Fund 712.063
Preconstruction Trust 712.064
Construction 712.065
Release of Trust Funds to Corporation 712.066
Contract Disclosures 712.067
Bond in Lieu of Preconstruction Trust 712.068
Reports 712.0255
Judicial Modification or Termination of Fund 712.0351
Definitions 712.0352
Modification of Distribution Method 712.0353
Determination of Fair Market Value 712.0354
Determination of Total Return Percentage 712.0355
Regulatory Limits on Distributions 712.0356
Rules 712.0357
Nature of Total Return Distributions 712.00395
Surrender of Certificate of Authority 712.0435
Investigations 712.0441
Enforcement 712.0442
Pattern of Wilful Disregard 712.0443
Cease and Desist Order 712.0444
Emergency Order 712.0445
Receivership Proceedings
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Verified:
May 26, 2025

§ 712.005. Cancellation of Charter for Failure to Begin Operation of Perpetual Care Cemetery's source at texas​.gov