Tex. Health & Safety Code § 712.0355 · Subchapter B-1. DISTRIBUTIONS FROM FUND
REGULATORY LIMITS ON DISTRIBUTIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) After notice and an opportunity for hearing, the commissioner by order may convert a total return fund to a net income fund, limit or prohibit distributions from the fund, or both, if:
(1) the current fair market value of the fund at the beginning of a fiscal year is less than the original principal of the fund, consisting of the sum of all required deposits into the fund under this chapter, including deposits required by Sections 712.004 and 712.028;
(2) the average fair market value of the fund declines by 10 percent or more over a two-year period; or
(3) the trustee or other fiduciary of the fund responsible for investment policy has demonstrated a lack of sufficient knowledge and expertise or has failed to ensure that an investment policy is in place to support the use of the total return method of calculating distributions in a manner consistent with achieving the purposes of the fund as provided by Section 712.021(f).
(b) The commissioner may decline to impose corrective measures under Subsection (a) if the commissioner finds that:
(1) the cause of the adverse trend in the fair market value of the fund is due to one or more unusual or temporary factors not within the control of the corporation or trustee of the corporation's fund and could not have been reasonably anticipated;
(2) the current, written investment policy of the fund, in light of anticipated distributions from the fund, is reasonably designed to protect the fund from further declines in fair market value; and
(3) the exception appears to be both necessary and appropriate for the continued protection and perpetual existence of the fund.
Notes and commentary — not statutory text
History
Added by Acts 2017, 85th Leg., R.S., Ch. 1051 (H.B. 1948), Sec. 1, eff. September 1, 2017.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/HS/htm/HS.712.htm
- Text hash
- sha256 5cbe2d11a17d09a9e3f8ee48212a36cd96b8529e0d05678bc5da8b28deb1c867
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Health and Safety Code
- Tex. Health & Safety Code § 712.004PERPETUAL CARE TRUST FUND REQUIRED.Printed as Sections 712.004 and 712.028
- Tex. Health & Safety Code § 712.021ESTABLISHMENT AND PURPOSES OF FUND.Printed as Section 712.021(f)
- Tex. Health & Safety Code § 712.028AMOUNT OF FUND DEPOSITS FROM SALES.Printed as Sections 712.004 and 712.028
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.