97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3229

 

Introduced 2/24/2011, by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Funeral or Burial Funds Act and the Illinois Pre-Need Cemetery Sales Act to transfer all authority given to the Comptroller under the Acts to the Department of Financial and Professional Regulation. Replaces all references to "Comptroller" with "Department". Effective immediately.


LRB097 06677 CEL 46763 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3229LRB097 06677 CEL 46763 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Funeral or Burial Funds Act is
5amended by changing Sections 1a, 1a-1, 1a-2, 2, 3, 3a, 3a-5,
63b, 3c, 3d, 3e, 3f, 4a, 7.2, 7.3, 8, and 8.1 as follows:
 
7    (225 ILCS 45/1a)  (from Ch. 111 1/2, par. 73.101a)
8    Sec. 1a. For the purposes of this Act, the following terms
9shall have the meanings specified, unless the context clearly
10requires another meaning:
11    "Beneficiary" means the person specified in the pre-need
12contract upon whose death funeral services or merchandise shall
13be provided or delivered.
14    "Department" means the Department of Financial and
15Professional Regulation.
16    "Licensee" means a seller of a pre-need contract who has
17been licensed by the Department Comptroller under this Act.
18    "Outer burial container" means any container made of
19concrete, steel, wood, fiberglass or similar material, used
20solely at the interment site, and designed and used exclusively
21to surround or enclose a separate casket and to support the
22earth above such casket, commonly known as a burial vault,
23grave box or grave liner, but not including a lawn crypt as

 

 

HB3229- 2 -LRB097 06677 CEL 46763 b

1defined in the Illinois Pre-need Cemetery Sales Act.
2    "Parent company" means a corporation owning more than 12
3cemeteries or funeral homes in more than one state.
4    "Person" means any person, partnership, association,
5corporation, or other entity.
6    "Pre-need contract" means any agreement or contract, or any
7series or combination of agreements or contracts, whether
8funded by trust deposits or life insurance policies or
9annuities, which has for a purpose the furnishing or
10performance of funeral services or the furnishing or delivery
11of any personal property, merchandise, or services of any
12nature in connection with the final disposition of a dead human
13body. Nothing in this Act is intended to regulate the content
14of a life insurance policy or a tax-deferred annuity.
15    "Provider" means a person who is obligated for furnishing
16or performing funeral services or the furnishing or delivery of
17any personal property, merchandise, or services of any nature
18in connection with the final disposition of a dead human body.
19    "Purchaser" means the person who originally paid the money
20under or in connection with a pre-need contract.
21    "Sales proceeds" means the entire amount paid to a seller,
22exclusive of sales taxes paid by the seller, finance charges
23paid by the purchaser, and credit life, accident or disability
24insurance premiums, upon any agreement or contract, or series
25or combination of agreements or contracts, for the purpose of
26performing funeral services or furnishing personal property,

 

 

HB3229- 3 -LRB097 06677 CEL 46763 b

1merchandise, or services of any nature in connection with the
2final disposition of a dead human body, including, but not
3limited to, the retail price paid for such services and
4personal property and merchandise.
5    "Purchase price" means sales proceeds less finance charges
6on retail installment contracts.
7    "Seller" means the person who sells or offers to sell the
8pre-need contract to a purchaser, whether funded by a trust
9agreement, life insurance policy, or tax-deferred annuity.
10    "Trustee" means a person authorized to hold funds under
11this Act.
12(Source: P.A. 92-419, eff. 1-1-02.)
 
13    (225 ILCS 45/1a-1)
14    Sec. 1a-1. Pre-need contracts.
15    (a) It shall be unlawful for any seller doing business
16within this State to accept sales proceeds from a purchaser,
17either directly or indirectly by any means, unless the seller
18enters into a pre-need contract with the purchaser which meets
19the following requirements:
20        (1) It states the name and address of the principal
21    office of the seller and the parent company of the seller,
22    if any.
23        (1.5) If funded by a trust, it clearly identifies the
24    trustee's name and address and the primary state or federal
25    regulator of the trustee as a corporate fiduciary.

 

 

HB3229- 4 -LRB097 06677 CEL 46763 b

1        (1.7) If funded by life insurance, it clearly
2    identifies the life insurance provider and the primary
3    regulator of the life insurance provider.
4        (2) It clearly identifies the provider's name and
5    address, the purchaser, and the beneficiary, if other than
6    the purchaser.
7        (2.5) If the provider has branch locations, the
8    contract gives the purchaser the opportunity to identify
9    the branch at which the funeral will be provided.
10        (3) It contains a complete description of the funeral
11    merchandise and services to be provided and the price of
12    the merchandise and services, and it clearly discloses
13    whether the price of the merchandise and services is
14    guaranteed or not guaranteed as to price.
15            (A) Each guaranteed price contract shall contain
16        the following statement in 12 point bold type:
17            THIS CONTRACT GUARANTEES THE BENEFICIARY THE
18        SPECIFIC GOODS AND SERVICES CONTRACTED FOR. NO
19        ADDITIONAL CHARGES MAY BE REQUIRED. FOR DESIGNATED
20        GOODS AND SERVICES, ADDITIONAL CHARGES MAY BE INCURRED
21        FOR UNEXPECTED EXPENSES INCLUDING, BUT NOT LIMITED TO,
22        CASH ADVANCES, SHIPPING OF REMAINS FROM A DISTANT
23        PLACE, OR DESIGNATED HONORARIA ORDERED OR DIRECTED BY
24        SURVIVORS.
25            (B) Except as provided in subparagraph (C) of this
26        paragraph (3), each non-guaranteed price contract

 

 

HB3229- 5 -LRB097 06677 CEL 46763 b

1        shall contain the following statement in 12 point bold
2        type:
3            THIS CONTRACT DOES NOT GUARANTEE THE PRICE THE
4        BENEFICIARY WILL PAY FOR ANY SPECIFIC GOODS OR
5        SERVICES. ANY FUNDS PAID UNDER THIS CONTRACT ARE ONLY A
6        DEPOSIT TO BE APPLIED TOWARD THE FINAL PRICE OF THE
7        GOODS OR SERVICES CONTRACTED FOR. ADDITIONAL CHARGES
8        MAY BE REQUIRED.
9            (C) If a non-guaranteed price contract may
10        subsequently become guaranteed, the contract shall
11        clearly disclose the nature of the guarantee and the
12        time, occurrence, or event upon which the contract
13        shall become a guaranteed price contract.
14        (4) It provides that if the particular supplies and
15    services specified in the pre-need contract are
16    unavailable at the time of delivery, the provider shall be
17    required to furnish supplies and services similar in style
18    and at least equal in quality of material and workmanship.
19        (5) It discloses any penalties or restrictions,
20    including but not limited to geographic restrictions or the
21    inability of the provider to perform, on the delivery of
22    merchandise, services, or pre-need contract guarantees.
23        (6) Regardless of the method of funding the pre-need
24    contract, the following must be disclosed:
25            (A) Whether the pre-need contract is to be funded
26        by a trust, life insurance, or an annuity;

 

 

HB3229- 6 -LRB097 06677 CEL 46763 b

1            (B) The nature of the relationship among the person
2        funding the pre-need contract, the provider, and the
3        seller; and
4            (C) The impact on the pre-need contract of (i) any
5        changes in the funding arrangement including but not
6        limited to changes in the assignment, beneficiary
7        designation, or use of the funds; (ii) any specific
8        penalties to be incurred by the contract purchaser as a
9        result of failure to make payments; (iii) penalties to
10        be incurred or moneys or refunds to be received as a
11        result of cancellations; and (iv) all relevant
12        information concerning what occurs and whether any
13        entitlements or obligations arise if there is a
14        difference between the proceeds of the particular
15        funding arrangement and the amount actually needed to
16        pay for the funeral at-need.
17            (D) The method of changing the provider.
18    (b) All pre-need contracts are subject to the Federal Trade
19Commission Rule concerning the Cooling-Off Period for
20Door-to-Door Sales (16 CFR Part 429).
21    (c) No pre-need contract shall be sold in this State unless
22there is a provider for the services and personal property
23being sold. If the seller is not a provider, then the seller
24must have a binding agreement with a provider, and the identity
25of the provider and the nature of the agreement between the
26seller and the provider shall be disclosed in the pre-need

 

 

HB3229- 7 -LRB097 06677 CEL 46763 b

1contract at the time of the sale and before the receipt of any
2sales proceeds. The failure to disclose the identity of the
3provider, the nature of the agreement between the seller and
4the provider, or any changes thereto to the purchaser and
5beneficiary, or the failure to make the disclosures required in
6subdivision (a)(1), constitutes an intentional violation of
7this Act.
8    (d) All pre-need contracts must be in writing in at least
911 point type, numbered, and executed in duplicate. A signed
10copy of the pre-need contract must be provided to the purchaser
11at the time of entry into the pre-need contract. The Department
12Comptroller may by rule develop a model pre-need contract form
13that meets the requirements of this Act.
14    (e) The Department State Comptroller shall by rule develop
15a booklet for consumers in plain English describing the scope,
16application, and consumer protections of this Act. After the
17adoption of these rules, no pre-need contract shall be sold in
18this State unless (i) the seller distributes to the purchaser
19prior to the sale a booklet promulgated or approved for use by
20the Department State Comptroller; (ii) the seller explains to
21the purchaser the terms of the pre-need contract prior to the
22purchaser signing; and (iii) the purchaser initials a statement
23in the contract confirming that the seller has explained the
24terms of the contract prior to the purchaser signing.
25    (f) All sales proceeds received in connection with a
26pre-need contract shall be deposited into a trust account as

 

 

HB3229- 8 -LRB097 06677 CEL 46763 b

1provided in Section 1b and Section 2 of this Act, or shall be
2used to purchase a life insurance policy or tax-deferred
3annuity as provided in Section 2a of this Act.
4    (g) No pre-need contract shall be sold in this State unless
5it is accompanied by a funding mechanism permitted under this
6Act, and unless the seller is licensed by the Department
7Comptroller as provided in Section 3 of this Act. Nothing in
8this Act is intended to relieve sellers of pre-need contracts
9from being licensed under any other Act required for their
10profession or business, and being subject to the rules
11promulgated to regulate their profession or business,
12including rules on solicitation and advertisement.
13(Source: P.A. 96-879, eff. 2-2-10.)
 
14    (225 ILCS 45/1a-2)
15    Sec. 1a-2. Pre-Need Funeral Consumer Protection Fund.
16    (a) Each licensee shall pay a fee of $5 out of the funds
17received for each pre-need contract sold and shall forward this
18sum to the Department Comptroller semi-annually within 30 days
19of the end of June and December. Fees collected under this
20Section shall be deposited into the Pre-need Funeral Consumer
21Protection Fund, which is hereby created as a special fund in
22the State treasury. Moneys in the Fund may be expended for the
23purposes specified in subsection (b) and to purchase insurance
24to cover losses guaranteed by the Fund.
25    (b) In the event that the purchaser is unable to receive

 

 

HB3229- 9 -LRB097 06677 CEL 46763 b

1the benefits of his or her pre-need contract or to receive the
2funds due by reason of cancellation of the contract, the
3purchaser may apply to the Department Comptroller on a form
4prescribed by the Department Comptroller for restitution from
5the Pre-need Funeral Consumer Protection Fund. Upon a finding
6by the Department Comptroller that the benefits or return of
7payment is not available to the purchaser, the Department
8Comptroller may cause restitution to be paid to the purchaser
9from the Pre-need Funeral Consumer Protection Fund.
10    (c) In all such cases where a purchaser is paid restitution
11from the Fund, the Department Comptroller shall be subrogated
12to that purchaser's claims against the licensee for all amounts
13paid from the Fund. If the licensee's liability for default is
14subsequently proven, any award made by a court of law shall be
15made payable to the Pre-need Funeral Consumer Protection Fund
16up to the amount paid to the purchaser from the Fund and the
17Department Comptroller shall request that the Attorney General
18engage in all reasonable post-judgment collection steps to
19collect such claims from the judgment debtor and reimburse the
20Fund.
21    (d) The Fund shall not be applied toward any restitution
22for losses in any lawsuit initiated by the Attorney General or
23Department Comptroller or with respect to any claim made on a
24pre-need contract that occurred prior to the effective date of
25this amendatory Act of the 96th General Assembly.
26    (e) Notwithstanding any other provision of this Section,

 

 

HB3229- 10 -LRB097 06677 CEL 46763 b

1the payment of restitution from the Fund shall be a matter of
2grace and not of right and no purchaser shall have any vested
3right in the Fund as a beneficiary or otherwise.
4    (f) The Fund may not be allocated for any purpose other
5than that specified in this Act.
6(Source: P.A. 96-879, eff. 2-2-10.)
 
7    (225 ILCS 45/2)  (from Ch. 111 1/2, par. 73.102)
8    Sec. 2. (a) If a purchaser selects a trust arrangement to
9fund the pre-need contract, all trust deposits as determined by
10Section 1b shall be made within 30 days of receipt.
11    (b) A trust established under this Act must be maintained
12with a corporate fiduciary as defined in Section 1-5.05 of the
13Corporate Fiduciary Act.
14    (c) Trust agreements and amendments to the trust agreements
15used to fund a pre-need contract shall be filed with the
16Department Comptroller.
17    (d) (Blank).
18    (e) A seller or provider shall furnish to the trustee and
19depositary the name of each payor and the amount of payment on
20each such account for which deposit is being so made. Nothing
21shall prevent the trustee from commingling the deposits in any
22such trust fund for purposes of its management and the
23investment of its funds as provided in the Common Trust Fund
24Act. In addition, multiple trust funds maintained under this
25Act may be commingled or commingled with other funeral or

 

 

HB3229- 11 -LRB097 06677 CEL 46763 b

1burial related trust funds if all record keeping requirements
2imposed by law are met.
3    (f) (Blank).
4    (g) Upon no less than 30 days prior notice to the
5Department Comptroller, the seller may change the trustee of
6the fund. Failure to provide the Department Comptroller with
7timely prior notice is an intentional violation of this Act.
8    (h) A trustee shall at least annually furnish to each
9purchaser a statement containing: (1) the receipts,
10disbursements, and inventory of the trust, including an
11explanation of any fees or expenses charged by the trustee
12under Section 5 of this Act or otherwise, (2) an explanation of
13the purchaser's right to a refund, if any, under this Act, and
14(3) identifying the primary regulator of the trust as a
15corporate fiduciary under state or federal law.
16(Source: P.A. 96-879, eff. 2-2-10.)
 
17    (225 ILCS 45/3)  (from Ch. 111 1/2, par. 73.103)
18    Sec. 3. Licensing.
19    (a) No person, firm, partnership, association or
20corporation may act as seller without first securing from the
21Department State Comptroller a license to so act. Application
22for such license shall be in writing, signed by the applicant
23and duly verified on forms furnished by the Department
24Comptroller. Each application shall contain at least the
25following:

 

 

HB3229- 12 -LRB097 06677 CEL 46763 b

1        (1) The full name and address (both residence and place
2    of business) of the applicant, and every member, officer
3    and director thereof if the applicant is a firm,
4    partnership, association, or corporation, and of every
5    shareholder holding more than 10% of the corporate stock if
6    the applicant is a corporation;
7        (2) A statement of the applicant's assets and
8    liabilities;
9        (3) The name and address of the applicant's principal
10    place of business at which the books, accounts, and records
11    shall be available for examination by the Department
12    Comptroller as required by this Act;
13        (4) The names and addresses of the applicant's branch
14    locations at which pre-need sales shall be conducted and
15    which shall operate under the same license number as the
16    applicant's principal place of business;
17        (5) For each individual listed under item (1) above, a
18    detailed statement of the individual's business experience
19    for the 10 years immediately preceding the application; any
20    present or prior connection between the individual and any
21    other person engaged in pre-need sales; any felony or
22    misdemeanor convictions for which fraud was an essential
23    element; any charges or complaints lodged against the
24    individual for which fraud was an essential element and
25    which resulted in civil or criminal litigation; any failure
26    of the individual to satisfy an enforceable judgment

 

 

HB3229- 13 -LRB097 06677 CEL 46763 b

1    entered against him based upon fraud; and any other
2    information requested by the Department Comptroller
3    relating to past business practices of the individual.
4    Since the information required by this item (5) may be
5    confidential or contain proprietary information, this
6    information shall not be available to other licensees or
7    the general public and shall be used only for the lawful
8    purposes of the Department Comptroller in enforcing this
9    Act;
10        (6) The name of the trustee and, if applicable, the
11    names of the advisors to the trustee, including a copy of
12    the proposed trust agreement under which the trust funds
13    are to be held as required by this Act; and
14        (7) Such other information as the Department
15    Comptroller may reasonably require in order to determine
16    the qualification of the applicant to be licensed under
17    this Act.
18    (b) Applications for license shall be accompanied by a
19fidelity bond executed by the applicant and a surety company
20authorized to do business in this State or an irrevocable,
21unconditional letter of credit issued by a bank, credit union,
22or trust company authorized to do business in the State of
23Illinois, as approved by the Department State Comptroller, in
24such amount not exceeding $10,000 as the Department Comptroller
25may require. If, after notice and an opportunity to be heard,
26it has been determined that a licensee has violated this Act

 

 

HB3229- 14 -LRB097 06677 CEL 46763 b

1within the past 5 calendar years, the Department Comptroller
2may require an additional bond or letter of credit from the
3licensee from time to time in amounts equal to one-tenth of
4such trust funds, which bond or letter of credit shall run to
5the Department Comptroller for the use and benefit of the
6beneficiaries of such trust funds.
7    The licensee shall keep accurate accounts, books and
8records in this State, at the principal place of business
9identified in the licensee's license application or as
10otherwise approved by the Department Comptroller in writing, of
11all transactions, copies of all pre-need contracts, trust
12agreements, and other agreements, dates and amounts of payments
13made and accepted thereon, the names and addresses of the
14contracting parties, the persons for whose benefit such funds
15are accepted, and the names of the depositaries of such funds.
16Each licensee shall maintain the documentation for a period of
173 years after the licensee has fulfilled his obligations under
18the pre-need contract. Additionally, for a period not to exceed
196 months after the performance of all terms in a pre-need sales
20contract, the licensee shall maintain copies of the contract at
21the licensee branch location where the contract was entered or
22at some other location agreed to by the Department Comptroller
23in writing. If an insurance policy or tax-deferred annuity is
24used to fund the pre-need contract, the licensee under this Act
25shall keep and maintain accurate accounts, books, and records
26in this State, at the principal place of business identified in

 

 

HB3229- 15 -LRB097 06677 CEL 46763 b

1the licensee's application or as otherwise approved by the
2Department Comptroller in writing, of all insurance policies
3and tax-deferred annuities used to fund the pre-need contract,
4the name and address of insured, annuitant, and initial
5beneficiary, and the name and address of the insurance company
6issuing the policy or annuity. If a life insurance policy or
7tax-deferred annuity is used to fund a pre-need contract, the
8licensee shall notify the insurance company of the name of each
9pre-need contract purchaser and the amount of each payment when
10the pre-need contract, insurance policy or annuity is
11purchased.
12    The licensee shall make reports to the Department
13Comptroller annually or at such other time as the Department
14Comptroller may require, on forms furnished by the Department
15Comptroller. The licensee shall file the annual report with the
16Department Comptroller within 75 days after the end of the
17licensee's fiscal year. The Department Comptroller shall for
18good cause shown grant an extension for the filing of the
19annual report upon the written request of the licensee. Such
20extension shall not exceed 60 days. If a licensee fails to
21submit an annual report to the Department Comptroller within
22the time specified in this Section, the Department Comptroller
23shall impose upon the licensee a penalty of $5 for each and
24every day the licensee remains delinquent in submitting the
25annual report. The Department Comptroller may abate all or part
26of the $5 daily penalty for good cause shown. Every application

 

 

HB3229- 16 -LRB097 06677 CEL 46763 b

1shall be accompanied by a check or money order in the amount of
2$25 and every report shall be accompanied by a check or money
3order in the amount of $10 payable to: the Illinois Department
4of Financial and Professional Regulation Comptroller, State of
5Illinois.
6    The licensee shall make all required books and records
7pertaining to trust funds, insurance policies, or tax-deferred
8annuities available to the Department Comptroller for
9examination. The Department Comptroller, or a person
10designated by the Department Comptroller who is trained to
11perform such examinations, may at any time investigate the
12books, records and accounts of the licensee with respect to
13trust funds, insurance policies, or tax-deferred annuities and
14for that purpose may require the attendance of and examine
15under oath all persons whose testimony he may require. The
16licensee shall pay a fee for such examination in accordance
17with a schedule established by the Department Comptroller. The
18fee shall not exceed the cost of such examination. For pre-need
19contracts funded by trust arrangements, the cost of an initial
20examination shall be borne by the licensee if it has $10,000 or
21more in trust funds, otherwise, by the Department Comptroller.
22The charge made by the Department Comptroller for an
23examination shall be based upon the total amount of trust funds
24held by the licensee at the end of the calendar or fiscal year
25for which the report is required by this Act and shall be in
26accordance with the following schedule:

 

 

HB3229- 17 -LRB097 06677 CEL 46763 b

1Less than $10,000.................................no charge;
2$10,000 or more but less than $50,000...................$10;
3$50,000 or more but less than $100,000..................$40;
4$100,000 or more but less than $250,000.................$80;
5$250,000 or more........................................$100.
6    The Department Comptroller may order additional audits or
7examinations as he or she may deem necessary or advisable to
8ensure the safety and stability of the trust funds and to
9ensure compliance with this Act. These additional audits or
10examinations shall only be made after good cause is established
11by the Department Comptroller in the written order. The grounds
12for ordering these additional audits or examinations may
13include, but shall not be limited to:
14        (1) material and unverified changes or fluctuations in
15    trust balances or insurance or annuity policy amounts;
16        (2) the licensee changing trustees more than twice in
17    any 12-month period;
18        (3) any withdrawals or attempted withdrawals from the
19    trusts, insurance policies, or annuity contracts in
20    violation of this Act; or
21        (4) failure to maintain or produce documentation
22    required by this Act for deposits into trust accounts,
23    trust investment activities, or life insurance or annuity
24    policies.
25    The licensee shall bear the full cost of that examination
26or audit, up to a maximum of $20,000. The Department

 

 

HB3229- 18 -LRB097 06677 CEL 46763 b

1Comptroller may elect to pay for the examination or audit and
2receive reimbursement from the licensee. Payment of the costs
3of the examination or audit by a licensee shall be a condition
4of receiving, maintaining, or renewing a license under this
5Act. All moneys received by the Department Comptroller for
6examination or audit fees shall be maintained in a separate
7account to be known as the Department's Comptroller's
8Administrative Fund. This Fund, subject to appropriation by the
9General Assembly, may be utilized by the Department Comptroller
10for enforcing this Act and other purposes that may be
11authorized by law.
12    For pre-need contracts funded by life insurance or a
13tax-deferred annuity, the cost of an examination shall be borne
14by the licensee. The fee schedule for such examination shall be
15established in rules promulgated by the Department
16Comptroller. In the event such investigation or other
17information received by the Department Comptroller discloses a
18substantial violation of the requirements of this Act, the
19Department Comptroller shall revoke the license of such person
20upon a hearing as provided in this Act. Such licensee may
21terminate all further responsibility for compliance with the
22requirements of this Act by voluntarily surrendering the
23license to the Department Comptroller, or in the event of its
24loss, furnishing the Department Comptroller with a sworn
25statement to that effect, which states the licensee's intention
26to discontinue acceptance of funds received under pre-need

 

 

HB3229- 19 -LRB097 06677 CEL 46763 b

1contracts. Such license or statement must be accompanied by an
2affidavit that said licensee has lawfully expended or refunded
3all funds received under pre-need contracts, and that the
4licensee will accept no additional sales proceeds. The
5Department Comptroller shall immediately cancel or revoke said
6license.
7(Source: P.A. 96-879, eff. 2-2-10.)
 
8    (225 ILCS 45/3a)  (from Ch. 111 1/2, par. 73.103a)
9    Sec. 3a. Denial, suspension, or revocation of license.
10    (a) The Department Comptroller may refuse to issue or may
11suspend or revoke a license on any of the following grounds:
12        (1) The applicant or licensee has made any
13    misrepresentations or false statements or concealed any
14    material fact.
15        (2) The applicant or licensee is insolvent.
16        (3) The applicant or licensee has been engaged in
17    business practices that work a fraud.
18        (4) The applicant or licensee has refused to give
19    pertinent data to the Department Comptroller.
20        (5) The applicant or licensee has failed to satisfy any
21    enforceable judgment or decree rendered by any court of
22    competent jurisdiction against the applicant.
23        (6) The applicant or licensee has conducted or is about
24    to conduct business in a fraudulent manner.
25        (7) The trust agreement is not in compliance with State

 

 

HB3229- 20 -LRB097 06677 CEL 46763 b

1    or federal law.
2        (8) The fidelity bond is not satisfactory to the
3    Department Comptroller.
4        (9) As to any individual required to be listed in the
5    license application, the individual has conducted or is
6    about to conduct any business on behalf of the applicant in
7    a fraudulent manner; has been convicted of any felony or
8    misdemeanor, an essential element of which is fraud; has
9    had a judgment rendered against him or her based on fraud
10    in any civil litigation; has failed to satisfy any
11    enforceable judgment or decree rendered against him or her
12    by any court of competent jurisdiction; or has been
13    convicted of any felony or any theft-related offense.
14        (10) The applicant or licensee, including any member,
15    officer, or director thereof if the applicant or licensee
16    is a firm, partnership, association or corporation and any
17    shareholder holding more than 10% of the corporate stock,
18    has violated any provision of this Act or any regulation,
19    decision, order, or finding made by the Department
20    Comptroller under this Act.
21        (11) The Department Comptroller finds any fact or
22    condition existing which, if it had existed at the time of
23    the original application for such license, would have
24    warranted the Department Comptroller in refusing the
25    issuance of the license.
26    (b) Before refusal to issue or renew and before suspension

 

 

HB3229- 21 -LRB097 06677 CEL 46763 b

1or revocation of a license, the Department Comptroller shall
2hold a hearing to determine whether the applicant or licensee,
3hereinafter referred to as the respondent, is entitled to hold
4such a license. At least 10 days prior to the date set for such
5hearing, the Department Comptroller shall notify the
6respondent in writing that on the date designated a hearing
7will be held to determine his eligibility for a license and
8that he may appear in person or by counsel. Such written notice
9may be served on the respondent personally, or by registered or
10certified mail sent to the respondent's business address as
11shown in his latest notification to the Department Comptroller.
12At the hearing, both the respondent and the complainant shall
13be accorded ample opportunity to present in person or by
14counsel such statements, testimony, evidence and argument as
15may be pertinent to the charges or to any defense thereto. The
16Department Comptroller may reasonably continue such hearing
17from time to time.
18    The Department Comptroller may subpoena any person or
19persons in this State and take testimony orally, by deposition
20or by exhibit, in the same manner and with the same fees and
21mileage allowances as prescribed in judicial proceedings in
22civil cases.
23    Any authorized agent of the Department Comptroller may
24administer oaths to witnesses at any hearing which the
25Department Comptroller is authorized to conduct.
26(Source: P.A. 92-419, eff. 1-1-02.)
 

 

 

HB3229- 22 -LRB097 06677 CEL 46763 b

1    (225 ILCS 45/3a-5)
2    Sec. 3a-5. License requirements.
3    (a) Every license issued by the Department Comptroller
4shall state the number of the license, the business name and
5address of the licensee's principal place of business, each
6branch location also operating under the license, and the
7licensee's parent company, if any. The license shall be
8conspicuously posted in each place of business operating under
9the license. The Department Comptroller may issue such
10additional licenses as may be necessary for licensee branch
11locations upon compliance with the provisions of this Act
12governing an original issuance of a license for each new
13license.
14    (b) Individual salespersons representing a licensee shall
15not be required to obtain licenses in their individual
16capacities, but must acknowledge, by affidavit, that they have
17been provided with a copy of and have read this Act. The
18licensee shall retain copies of the affidavits of its sellers
19for its records and shall make the affidavits available to the
20Department Comptroller for examination upon request.
21    (c) The licensee shall be responsible for the activities of
22any person representing the licensee in selling or offering a
23pre-need contract for sale.
24    (d) Any person not selling on behalf of a licensee shall
25obtain its own license.

 

 

HB3229- 23 -LRB097 06677 CEL 46763 b

1    (e) No license shall be transferable or assignable without
2the express written consent of the Department Comptroller. A
3transfer of more than 50% of the ownership of any business
4licensed hereunder shall be deemed to be an attempted
5assignment of the license originally issued to the licensee for
6which consent of the Department Comptroller shall be required.
7    (f) Every license issued hereunder shall remain in force
8until it has been suspended, surrendered, or revoked in
9accordance with this Act. The Department Comptroller, upon the
10request of an interested person or on his own motion, may issue
11new licenses to a licensee whose license or licenses have been
12revoked, if no factor or condition then exists which would have
13warranted the Department Comptroller to originally refuse the
14issuance of such license.
15(Source: P.A. 92-419, eff. 1-1-02.)
 
16    (225 ILCS 45/3b)  (from Ch. 111 1/2, par. 73.103b)
17    Sec. 3b. The Department Comptroller, at his expense, shall
18provide a certified shorthand reporter to take down the
19testimony and preserve a record of all proceedings at the
20hearing of any case involving the refusal to issue or renew a
21license, the suspension or revocation of a license, the
22imposition of a monetary penalty, or the referral of a case for
23criminal prosecution. The record of any such proceeding shall
24consist of the notice of hearing, complaint, all other
25documents in the nature of pleadings and written motions filed

 

 

HB3229- 24 -LRB097 06677 CEL 46763 b

1in the proceedings, the transcript of testimony and the report
2and orders of the Department Comptroller. Copies of the
3transcript of such record may be purchased from the certified
4shorthand reporter who prepared the record.
5(Source: P.A. 84-839.)
 
6    (225 ILCS 45/3c)  (from Ch. 111 1/2, par. 73.103c)
7    Sec. 3c. Any circuit court may, upon application of the
8Department Comptroller or of the applicant or licensee against
9whom proceedings under Section 3a are pending, enter an order
10requiring witnesses to attend and testify, and requiring the
11production of documents, papers, files, books and records in
12connection with any hearing in any proceedings under that
13Section. Failure to obey such court order may result in the
14institution of contempt proceedings.
15(Source: P.A. 84-839.)
 
16    (225 ILCS 45/3d)  (from Ch. 111 1/2, par. 73.103d)
17    Sec. 3d. Any person affected by a final administrative
18decision of the Department Comptroller may have such decision
19reviewed judicially by the circuit court of the county where
20such person resides, or in the case of a corporation, where the
21registered office is located. If the plaintiff in the review
22proceeding is not a resident of this State, venue shall be in
23Sangamon County. The provisions of the Administrative Review
24Law, as now or hereafter amended, and any rules adopted

 

 

HB3229- 25 -LRB097 06677 CEL 46763 b

1thereunder shall govern all proceedings for the judicial review
2of final administrative decisions of the Department
3Comptroller. The term "administrative decision" is defined as
4in the Administrative Review Law.
5    The Department Comptroller is not required to certify the
6record of the proceeding unless the plaintiff in the review
7proceedings has purchased a copy of the transcript from the
8certified shorthand reporter who prepared the record. Exhibits
9shall be certified without cost.
10(Source: P.A. 84-839.)
 
11    (225 ILCS 45/3e)  (from Ch. 111 1/2, par. 73.103e)
12    Sec. 3e. Upon the revocation of, suspension of, or refusal
13to renew any license, the licensee shall immediately surrender
14the license or licenses to the Department Comptroller. If the
15licensee fails to do so, the Department Comptroller shall have
16the right to seize the same.
17(Source: P.A. 92-419, eff. 1-1-02.)
 
18    (225 ILCS 45/3f)
19    Sec. 3f. Revocation of license.
20    (a) The Department Comptroller, upon determination that
21grounds exist for the revocation or suspension of a license
22issued under this Act, may revoke or suspend, if appropriate,
23the license issued to a licensee or to a particular branch
24office location with respect to which the grounds for

 

 

HB3229- 26 -LRB097 06677 CEL 46763 b

1revocation or suspension may occur or exist.
2    (b) Whenever a license is revoked by the Department
3Comptroller, he or she shall apply to the Circuit Court of the
4county wherein the licensee is located for a receiver to
5administer the trust funds of the licensee or to maintain the
6life insurance policies and tax-deferred annuities held by the
7licensee under a pre-need contract.
8(Source: P.A. 92-419, eff. 1-1-02.)
 
9    (225 ILCS 45/4a)
10    Sec. 4a. Investment of funds.
11    (a) A trustee has a duty to invest and manage the trust
12assets pursuant to the Prudent Investor Rule under the Trusts
13and Trustees Act.
14    (b) The trust shall be a single-purpose trust fund. In the
15event of the seller's bankruptcy, insolvency or assignment for
16the benefit of creditors, or an adverse judgment, the trust
17funds shall not be available to any creditor as assets of the
18seller or to pay any expenses of any bankruptcy or similar
19proceeding, but shall be distributed to the purchasers or
20managed for their benefit by the trustee holding the funds.
21Except in an action by the Department Comptroller to revoke a
22license issued pursuant to this Act and for creation of a
23receivership as provided in this Act, the trust shall not be
24subject to judgment, execution, garnishment, attachment, or
25other seizure by process in bankruptcy or otherwise, nor to

 

 

HB3229- 27 -LRB097 06677 CEL 46763 b

1sale, pledge, mortgage, or other alienation, and shall not be
2assignable except as approved by the Department Comptroller.
3The changes made by Public Act 91-7 are intended to clarify
4existing law regarding the inability of licensees to pledge the
5trust.
6    (c) Because it is not known at the time of deposit or at
7the time that income is earned on the trust account to whom the
8principal and the accumulated earnings will be distributed for
9the purpose of determining the Illinois income tax due on these
10trust funds, the principal and any accrued earnings or losses
11related to each individual account shall be held in suspense
12until the final determination is made as to whom the account
13shall be paid. The beneficiary's estate shall not be
14responsible for any funeral and burial purchases listed in a
15pre-need contract if the pre-need contract is entered into on a
16guaranteed price basis.
17    If a pre-need contract is not a guaranteed price contract,
18then to the extent the proceeds of a non-guaranteed price
19pre-need contract cover the funeral and burial expenses for the
20beneficiary, no claim may be made against the estate of the
21beneficiary. A claim may be made against the beneficiary's
22estate if the charges for the funeral services and merchandise
23at the time of use exceed the amount of the amount in trust
24plus the percentage of the sale proceeds initially retained by
25the seller or the face value of the life insurance policy or
26tax-deferred annuity.

 

 

HB3229- 28 -LRB097 06677 CEL 46763 b

1(Source: P.A. 96-879, eff. 2-2-10.)
 
2    (225 ILCS 45/7.2)
3    Sec. 7.2. Investigation of unlawful practices. If it
4appears to the Department Comptroller that a person has engaged
5in, is engaging in, or is about to engage in any practice in
6violation of this Act, the Department Comptroller may:
7        (1) require that person to file on such terms as the
8    Department Comptroller prescribes a statement or report in
9    writing, under oath or otherwise, containing all
10    information the Department Comptroller may consider
11    necessary to ascertain whether a licensee is in compliance
12    with this Act, or whether an unlicensed person is engaging
13    in activities for which a license is required;
14        (2) examine under oath any person in connection with
15    the books and records pertaining to or having an impact
16    upon trust funds, insurance policies, or tax deferred
17    annuities required or allowed to be maintained pursuant to
18    this Act;
19        (3) examine any books and records of the licensee,
20    trustee, or investment advisor that the Department
21    Comptroller may consider necessary to ascertain compliance
22    with this Act; and
23        (4) require the production of a copy of any record,
24    book, document, account, or paper that is produced in
25    accordance with this Act and retain it in his or her

 

 

HB3229- 29 -LRB097 06677 CEL 46763 b

1    possession until the completion of all proceedings in
2    connection with which it is produced.
3(Source: P.A. 92-419, eff. 1-1-02.)
 
4    (225 ILCS 45/7.3)
5    Sec. 7.3. Service. Service by the Department Comptroller of
6any notice requiring a person to file a statement or report
7shall be made:
8        (1) personally by delivery of a duly executed copy
9    thereof to the person to be served or, if that person is
10    not a natural person, in the manner provided in the Civil
11    Practice Law when a complaint is filed; or
12        (2) by mailing by certified mail a duly executed copy
13    thereof to the person to be served at his or her last known
14    abode or principal place of business within this State.
15(Source: P.A. 89-615, eff. 8-9-96.)
 
16    (225 ILCS 45/8)  (from Ch. 111 1/2, par. 73.108)
17    Sec. 8. Any person who intentionally fails to deposit the
18required sales proceeds into a trust required under this Act,
19intentionally and improperly withdraws or uses trust funds for
20his or her own benefit, or otherwise intentionally violates any
21provision of this Act is guilty of a Class 4 felony.
22    If any person intentionally violates this Act or fails or
23refuses to comply with any order of the Department Comptroller
24or any part of an order that has become final to the person and

 

 

HB3229- 30 -LRB097 06677 CEL 46763 b

1is still in effect, the Department Comptroller may, after
2notice and hearing at which it is determined that a violation
3of this Act or the order has been committed, further order that
4the person shall forfeit and pay to the State of Illinois a sum
5not to exceed $5,000 for each violation. This liability shall
6be enforced in an action brought in any court of competent
7jurisdiction by the Department Comptroller in the name of the
8People of the State of Illinois.
9    In addition to the other penalties and remedies provided in
10this Act, the Department Comptroller may bring a civil action
11in the county of residence of the licensee or any person
12accepting trust funds to enjoin any violation or threatened
13violation of this Act.
14    The powers vested in the Department Comptroller by this
15Section are in addition to any and all other powers and
16remedies vested in the Department Comptroller by law.
17(Source: P.A. 92-419, eff. 1-1-02.)
 
18    (225 ILCS 45/8.1)
19    Sec. 8.1. Sales; liability of purchaser for shortage. In
20the event of a sale or transfer of all or substantially all of
21the assets of the licensee, the sale or transfer of the
22controlling interest of the corporate stock of the licensee if
23the licensee is a corporation, the sale or transfer of the
24controlling interest of the partnership if the licensee is a
25partnership, or the sale of the licensee pursuant to

 

 

HB3229- 31 -LRB097 06677 CEL 46763 b

1foreclosure proceedings, the purchaser is liable for any
2shortages existing before or after the sale in the trust funds
3required to be maintained in a trust pursuant to this Act and
4shall honor all pre-need contracts and trusts entered into by
5the licensee. Any shortages existing in the trust funds
6constitute a prior lien in favor of the trust for the total
7value of the shortages, and notice of that lien shall be
8provided in all sales instruments.
9    In the event of a sale or transfer of all or substantially
10all of the assets of the licensee, the sale or transfer of the
11controlling interest of the corporate stock of the licensee if
12the licensee is a corporation, or the sale or transfer of the
13controlling interest of the partnership if the licensee is a
14partnership, the licensee shall, at least 21 days prior to the
15sale or transfer, notify the Department Comptroller, in
16writing, of the pending date of sale or transfer so as to
17permit the Department Comptroller to audit the books and
18records of the licensee. The audit must be commenced within 10
19business days of the receipt of the notification and completed
20within the 21-day notification period unless the Department
21Comptroller notifies the licensee during that period that there
22is a basis for determining a deficiency which will require
23additional time to finalize. Failure to provide timely notice
24to the Department Comptroller under this Section shall be an
25intentional violation of this Act. The sale or transfer may not
26be completed by the licensee unless and until:

 

 

HB3229- 32 -LRB097 06677 CEL 46763 b

1        (i) the Department Comptroller has completed the audit
2    of the licensee's books and records;
3        (ii) any delinquency existing in the trust funds has
4    been paid by the licensee, or arrangements satisfactory to
5    the Department Comptroller have been made by the licensee
6    on the sale or transfer for the payment of any delinquency;
7    and
8        (iii) the Department Comptroller issues a license upon
9    application of the new owner, which license must be applied
10    for within 21 days of the anticipated date of the sale or
11    transfer, subject to the payment of any delinquencies, if
12    any, as stated in item (ii).
13    For purposes of this Section, a person, firm, corporation,
14partnership, or institution that acquires the licensee through
15a real estate foreclosure shall be subject to the provisions of
16this Section.
17(Source: P.A. 96-879, eff. 2-2-10.)
 
18    Section 10. The Illinois Pre-Need Cemetery Sales Act is
19amended by changing Sections 4, 5, 6, 7, 8, 8a, 8b, 9, 10, 11,
2012, 13, 14, 15, 16, 18, 19, 20, 21, 23, 24, 27, and 27.1 as
21follows:
 
22    (815 ILCS 390/4)  (from Ch. 21, par. 204)
23    Sec. 4. Definitions. As used in this Act, the following
24terms shall have the meaning specified:

 

 

HB3229- 33 -LRB097 06677 CEL 46763 b

1    (A) "Pre-need sales contract" or "Pre-need sales" means any
2agreement or contract or series or combination of agreements or
3contracts which have for a purpose the sale of cemetery
4merchandise, cemetery services or undeveloped interment,
5entombment or inurnment spaces where the terms of such sale
6require payment or payments to be made at a currently
7determinable time and where the merchandise, services or
8completed spaces are to be provided more than 120 days
9following the initial payment on the account. An agreement or
10contract for a memorial, marker, or monument shall not be
11deemed a "pre-need sales contract" or a "pre-need sale" if the
12memorial, marker, or monument is delivered within 180 days
13following initial payment on the account and work thereon
14commences a reasonably short time after initial payment on the
15account.
16    (B) "Delivery" occurs when:
17        (1) Physical possession of the merchandise is
18    transferred or the easement for burial rights in a
19    completed space is executed, delivered and transferred to
20    the buyer; or
21        (2) Following authorization by a purchaser under a
22    pre-need sales contract, title to the merchandise has been
23    transferred to the buyer and the merchandise has been paid
24    for and is in the possession of the seller who has placed
25    it, until needed, at the site of its ultimate use; or
26        (3) Following authorization by a purchaser under a

 

 

HB3229- 34 -LRB097 06677 CEL 46763 b

1    pre-need sales contract, the merchandise has been
2    permanently identified with the name of the buyer or the
3    beneficiary and delivered to a licensed and bonded
4    warehouse and both title to the merchandise and a warehouse
5    receipt have been delivered to the purchaser or beneficiary
6    and a copy of the warehouse receipt has been delivered to
7    the licensee for retention in its files; except that in the
8    case of outer burial containers, the use of a licensed and
9    bonded warehouse as set forth in this paragraph shall not
10    constitute delivery for purposes of this Act. Nothing
11    herein shall prevent a seller from perfecting a security
12    interest in accordance with the Uniform Commercial Code on
13    any merchandise covered under this Act.
14        All warehouse facilities to which sellers deliver
15    merchandise pursuant to this Act shall:
16            (i) be either located in the State of Illinois or
17        qualify as a foreign warehouse facility as defined
18        herein;
19            (ii) submit to the Department Comptroller not less
20        than annually, by March 1 of each year, a report of all
21        cemetery merchandise stored by each licensee under
22        this Act which is in storage on the date of the report;
23            (iii) permit the Department Comptroller or his
24        designee at any time to examine stored merchandise and
25        to examine any documents pertaining thereto;
26            (iv) submit evidence satisfactory to the

 

 

HB3229- 35 -LRB097 06677 CEL 46763 b

1        Department Comptroller that all merchandise stored by
2        said warehouse for licensees under this Act is insured
3        for casualty or other loss normally assumed by a bailee
4        for hire;
5            (v) demonstrate to the Department Comptroller that
6        the warehouse has procured and is maintaining a
7        performance bond in the form, content and amount
8        sufficient to unconditionally guarantee to the
9        purchaser or beneficiary the prompt shipment of the
10        cemetery merchandise.
11    (C) "Cemetery merchandise" means items of personal
12property normally sold by a cemetery authority not covered
13under the Illinois Funeral or Burial Funds Act, including but
14not limited to:
15        (1) memorials,
16        (2) markers,
17        (3) monuments,
18        (4) foundations, and
19        (5) outer burial containers.
20    (D) "Undeveloped interment, entombment or inurnment
21spaces" or "undeveloped spaces" means any space to be used for
22the reception of human remains that is not completely and
23totally constructed at the time of initial payment therefor in
24a:
25        (1) lawn crypt,
26        (2) mausoleum,

 

 

HB3229- 36 -LRB097 06677 CEL 46763 b

1        (3) garden crypt,
2        (4) columbarium, or
3        (5) cemetery section.
4    (E) "Cemetery services" means those services customarily
5performed by cemetery or crematory personnel in connection with
6the interment, entombment, inurnment or cremation of a dead
7human body.
8    (F) "Cemetery section" means a grouping of spaces intended
9to be developed simultaneously for the purpose of interring
10human remains.
11    (G) "Columbarium" means an arrangement of niches that may
12be an entire building, a complete room, a series of special
13indoor alcoves, a bank along a corridor or part of an outdoor
14garden setting that is constructed of permanent material such
15as bronze, marble, brick, stone or concrete for the inurnment
16of human remains.
17    (G-5) "Department" means the Department of Financial and
18Professional Regulation.
19    (H) "Lawn crypt" means a permanent underground crypt
20usually constructed of reinforced concrete or similar material
21installed in multiple units for the entombment of human
22remains.
23    (I) "Mausoleum" or "garden crypt" means a grouping of
24spaces constructed of reinforced concrete or similar material
25constructed or assembled above the ground for entombing human
26remains.

 

 

HB3229- 37 -LRB097 06677 CEL 46763 b

1    (J) "Memorials, markers and monuments" means the object
2usually comprised of a permanent material such as granite or
3bronze used to identify and memorialize the deceased.
4    (K) "Foundations" means those items used to affix or
5support a memorial or monument to the ground in connection with
6the installation of a memorial, marker or monument.
7    (L) "Person" means an individual, corporation,
8partnership, joint venture, business trust, voluntary
9organization or any other form of entity.
10    (M) "Seller" means any person selling or offering for sale
11cemetery merchandise, cemetery services or undeveloped
12interment, entombment, or inurnment spaces in accordance with a
13pre-need sales contract.
14    (N) "Religious cemetery" means a cemetery owned, operated,
15controlled or managed by any recognized church, religious
16society, association or denomination or by any cemetery
17authority or any corporation administering, or through which is
18administered, the temporalities of any recognized church,
19religious society, association or denomination.
20    (O) "Municipal cemetery" means a cemetery owned, operated,
21controlled or managed by any city, village, incorporated town,
22township, county or other municipal corporation, political
23subdivision, or instrumentality thereof authorized by law to
24own, operate or manage a cemetery. "Municipal cemetery" also
25includes a cemetery placed in receivership pursuant to this Act
26while such cemetery is in receivership.

 

 

HB3229- 38 -LRB097 06677 CEL 46763 b

1    (O-1) "Outer burial container" means a container made of
2concrete, steel, wood, fiberglass, or similar material, used
3solely at the interment site, and designed and used exclusively
4to surround or enclose a separate casket and to support the
5earth above such casket, commonly known as a burial vault,
6grave box, or grave liner, but not including a lawn crypt.
7    (P) "Sales price" means the gross amount paid by a
8purchaser on a pre-need sales contract for cemetery
9merchandise, cemetery services or undeveloped interment,
10entombment or inurnment spaces, excluding sales taxes, credit
11life insurance premiums, finance charges and Cemetery Care Act
12contributions.
13    (Q) (Blank).
14    (R) "Provider" means a person who is responsible for
15performing cemetery services or furnishing cemetery
16merchandise, interment spaces, entombment spaces, or inurnment
17spaces under a pre-need sales contract.
18    (S) "Purchaser" or "buyer" means the person who originally
19paid the money under or in connection with a pre-need sales
20contract.
21    (T) "Parent company" means a corporation owning more than
2212 cemeteries or funeral homes in more than one state.
23    (U) "Foreign warehouse facility" means a warehouse
24facility now or hereafter located in any state or territory of
25the United States, including the District of Columbia, other
26than the State of Illinois.

 

 

HB3229- 39 -LRB097 06677 CEL 46763 b

1    A foreign warehouse facility shall be deemed to have
2appointed the Department Comptroller to be its true and lawful
3attorney upon whom may be served all legal process in any
4action or proceeding against it relating to or growing out of
5this Act, and the acceptance of the delivery of stored
6merchandise under this Act shall be signification of its
7agreement that any such process against it which is so served,
8shall be of the same legal force and validity as though served
9upon it personally.
10    Service of such process shall be made by delivering to and
11leaving with the Department Comptroller, or any agent having
12charge of the Department's Comptroller's Department of
13Cemetery and Burial Trusts, a copy of such process and such
14service shall be sufficient service upon such foreign warehouse
15facility if notice of such service and a copy of the process
16are, within 10 days thereafter, sent by registered mail by the
17plaintiff to the foreign warehouse facility at its principal
18office and the plaintiff's affidavit of compliance herewith is
19appended to the summons. The Department Comptroller shall keep
20a record of all process served upon him under this Section and
21shall record therein the time of such service.
22(Source: P.A. 96-879, eff. 2-2-10.)
 
23    (815 ILCS 390/5)  (from Ch. 21, par. 205)
24    Sec. 5. It is unlawful for any seller directly or
25indirectly doing business within this State to engage in

 

 

HB3229- 40 -LRB097 06677 CEL 46763 b

1pre-need sales without a license issued by the Department
2Comptroller.
3(Source: P.A. 92-419, eff. 1-1-02.)
 
4    (815 ILCS 390/6)  (from Ch. 21, par. 206)
5    Sec. 6. License application.
6    (a) An application for a license shall be made in writing
7to the Department Comptroller on forms prescribed by him or
8her, signed by the applicant under oath verified by a notary
9public, and accompanied by a non-returnable $25 application
10fee. The Department Comptroller may prescribe abbreviated
11application forms for persons holding a license under the
12Cemetery Care Act. Applications (except abbreviated
13applications) must include at least the following information:
14        (1) The full name and address, both residence and
15    business, of the applicant if the applicant is an
16    individual; of every member if applicant is a partnership;
17    of every member of the Board of Directors if applicant is
18    an association; and of every officer, director and
19    shareholder holding more than 10% of the corporate stock if
20    applicant is a corporation;
21        (2) A detailed statement of applicant's assets and
22    liabilities;
23        (2.1) The name and address of the applicant's principal
24    place of business at which the books, accounts, and records
25    are available for examination by the Department

 

 

HB3229- 41 -LRB097 06677 CEL 46763 b

1    Comptroller as required by this Act;
2        (2.2) The name and address of the applicant's branch
3    locations at which pre-need sales will be conducted and
4    which will operate under the same license number as the
5    applicant's principal place of business;
6        (3) For each individual listed under (1) above, a
7    detailed statement of the individual's business experience
8    for the 10 years immediately preceding the application; any
9    present or prior connection between the individual and any
10    other person engaged in pre-need sales; any felony or
11    misdemeanor convictions for which fraud was an essential
12    element; any charges or complaints lodged against the
13    individual for which fraud was an essential element and
14    which resulted in civil or criminal litigation; any failure
15    of the individual to satisfy an enforceable judgment
16    entered against him or her based upon fraud; and any other
17    information requested by the Department Comptroller
18    relating to the past business practices of the individual.
19    Since the information required by this paragraph may be
20    confidential or contain proprietary information, this
21    information shall not be available to other licensees or
22    the general public and shall be used only for the lawful
23    purposes of the Department Comptroller in enforcing this
24    Act;
25        (4) The name of the trustee and, if applicable, the
26    names of the advisors to the trustee, including a copy of

 

 

HB3229- 42 -LRB097 06677 CEL 46763 b

1    the proposed trust agreement under which the trust funds
2    are to be held as required by this Act;
3        (5) Where applicable, the name of the corporate surety
4    company providing the performance bond for the
5    construction of undeveloped spaces and a copy of the bond;
6    and
7        (6) Such other information as the Department
8    Comptroller may reasonably require in order to determine
9    the qualification of the applicant to be licensed under
10    this Act.
11    (b) Applications for license shall be accompanied by a
12fidelity bond executed by the applicant and a security company
13authorized to do business in this State in such amount, not
14exceeding $10,000, as the Department Comptroller may require.
15The Department Comptroller may require additional bond from
16time to time in amounts equal to one-tenth of such trust funds
17but not to exceed $100,000, which bond shall run to the
18Department Comptroller for the use and benefit of the
19beneficiaries of such trust funds. Such licensee may by written
20permit of the Department Comptroller be authorized to operate
21without additional bond, except such fidelity bond as may be
22required by the Department Comptroller for the protection of
23the licensee against loss by default by any of its employees
24engaged in the handling of trust funds.
25    (c) Any application not acted upon within 90 days may be
26deemed denied.

 

 

HB3229- 43 -LRB097 06677 CEL 46763 b

1(Source: P.A. 92-419, eff. 1-1-02.)
 
2    (815 ILCS 390/7)  (from Ch. 21, par. 207)
3    Sec. 7. The Department Comptroller may refuse to issue or
4may suspend or revoke a license on any of the following
5grounds:
6    (a) The applicant or licensee has made any
7misrepresentations or false statements or concealed any
8material fact;
9    (b) The applicant or licensee is insolvent;
10    (c) The applicant or licensee has been engaged in business
11practices that work a fraud;
12    (d) The applicant or licensee has refused to give pertinent
13data to the Department Comptroller;
14    (e) The applicant or licensee has failed to satisfy any
15enforceable judgment or decree rendered by any court of
16competent jurisdiction against the applicant;
17    (f) The applicant or licensee has conducted or is about to
18conduct business in a fraudulent manner;
19    (g) The trust agreement is not in compliance with State or
20federal law;
21    (h) The pre-construction performance bond, if applicable,
22is not satisfactory to the Department Comptroller;
23    (i) The fidelity bond is not satisfactory to the Department
24Comptroller;
25    (j) As to any individual listed in the license application

 

 

HB3229- 44 -LRB097 06677 CEL 46763 b

1as required pursuant to Section 6, that individual has
2conducted or is about to conduct any business on behalf of the
3applicant in a fraudulent manner, has been convicted of any
4felony or misdemeanor an essential element of which is fraud,
5has had a judgment rendered against him or her based on fraud
6in any civil litigation, has failed to satisfy any enforceable
7judgment or decree rendered against him by any court of
8competent jurisdiction, or has been convicted of any felony or
9any theft-related offense;
10    (k) The applicant or licensee has failed to make the annual
11report required by this Act or to comply with a final order,
12decision, or finding of the Department Comptroller made
13pursuant to this Act;
14    (l) The applicant or licensee, including any member,
15officer, or director thereof if the applicant or licensee is a
16firm, partnership, association, or corporation and any
17shareholder holding more than 10% of the corporate stock, has
18violated any provision of this Act or any regulation or order
19made by the Department Comptroller under this Act; or
20    (m) The Department Comptroller finds any fact or condition
21existing which, if it had existed at the time of the original
22application for such license would have warranted the
23Department Comptroller in refusing the issuance of the license.
24(Source: P.A. 92-419, eff. 1-1-02.)
 
25    (815 ILCS 390/8)  (from Ch. 21, par. 208)

 

 

HB3229- 45 -LRB097 06677 CEL 46763 b

1    Sec. 8. (a) Every license issued by the Department
2Comptroller shall state the number of the license, the business
3name and address of the licensee's principal place of business,
4each branch location also operating under the license, and the
5licensee's parent company, if any. The license shall be
6conspicuously posted in each place of business operating under
7the license. The Department Comptroller may issue additional
8licenses as may be necessary for license branch locations upon
9compliance with the provisions of this Act governing an
10original issuance of a license for each new license.
11    (b) Individual salespersons representing a licensee shall
12not be required to obtain licenses in their individual
13capacities but must acknowledge, by affidavit, that they have
14been provided a copy of and have read this Act. The licensee
15must retain copies of the affidavits of its salespersons for
16its records and must make the affidavits available to the
17Department Comptroller for examination upon request.
18    (c) The licensee shall be responsible for the activities of
19any person representing the licensee in selling or offering a
20pre-need contract for sale.
21    (d) Any person not selling on behalf of a licensee shall be
22required to obtain his or her own license.
23    (e) Any person engaged in pre-need sales, as defined
24herein, prior to the effective date of this Act may continue
25operations until the application for license under this Act is
26denied; provided that such person shall make application for a

 

 

HB3229- 46 -LRB097 06677 CEL 46763 b

1license within 60 days of the date that application forms are
2made available by the Department Comptroller.
3    (f) No license shall be transferable or assignable without
4the express written consent of the Department Comptroller. A
5transfer of more than 50% of the ownership of any business
6licensed hereunder shall be deemed to be an attempted
7assignment of the license originally issued to the licensee for
8which consent of the Department Comptroller shall be required.
9    (g) Every license issued hereunder shall remain in force
10until the same has been suspended, surrendered or revoked in
11accordance with this Act, but the Department Comptroller, upon
12the request of an interested person or on his own motion, may
13issue new licenses to a licensee whose license or licenses have
14been revoked, if no factor or condition then exists which would
15have warranted the Department Comptroller in refusing
16originally the issuance of such license.
17(Source: P.A. 92-419, eff. 1-1-02.)
 
18    (815 ILCS 390/8a)
19    Sec. 8a. Investigation of unlawful practices. If it appears
20to the Department Comptroller that a person has engaged in, is
21engaging in, or is about to engage in any practice in violation
22of this Act, the Department Comptroller may:
23        (1) require that person to file on such terms as the
24    Department Comptroller prescribes a statement or report in
25    writing, under oath or otherwise, containing all

 

 

HB3229- 47 -LRB097 06677 CEL 46763 b

1    information the Department Comptroller may consider
2    necessary to ascertain whether a licensee is in compliance
3    with this Act, or whether an unlicensed person is engaging
4    in activities for which a license is required;
5        (2) examine under oath any person in connection with
6    the books and records pertaining to or having an impact
7    upon the trust funds required to be maintained pursuant to
8    this Act;
9        (3) examine any books and records of the licensee,
10    trustee, or investment advisor that the Department
11    Comptroller may consider necessary to ascertain compliance
12    with this Act; and
13        (4) require the production of a copy of any record,
14    book, document, account, or paper that is produced in
15    accordance with this Act and retain it in his or her
16    possession until the completion of all proceedings in
17    connection with which it is produced.
18(Source: P.A. 92-419, eff. 1-1-02.)
 
19    (815 ILCS 390/8b)
20    Sec. 8b. Service. Service by the Department Comptroller of
21any notice requiring a person to file a statement or report
22shall be made:
23        (1) personally by delivery of a duly executed copy
24    thereof to the person to be served or, if that person is
25    not a natural person, in the manner provided in the Civil

 

 

HB3229- 48 -LRB097 06677 CEL 46763 b

1    Practice Law when a complaint is filed; or
2        (2) by mailing by certified mail a duly executed copy
3    thereof to the person to be served at his or her last known
4    abode or principal place of business within this State.
5(Source: P.A. 89-615, eff. 8-9-96.)
 
6    (815 ILCS 390/9)  (from Ch. 21, par. 209)
7    Sec. 9. The Department Comptroller may upon his own motion
8investigate the actions of any person providing, selling, or
9offering pre-need sales contracts or of any applicant or any
10person or persons holding or claiming to hold a license under
11this Act. The Department Comptroller shall make such an
12investigation on receipt of the verified written complaint of
13any person setting forth facts which, if proved, would
14constitute grounds for refusal, suspension, or revocation of a
15license. Before refusing to issue, and before suspension or
16revocation of a license, the Department Comptroller shall hold
17a hearing to determine whether the applicant or licensee,
18hereafter called the respondent, is entitled to hold such a
19license. At least 10 days prior to the date set for such
20hearing, the Department Comptroller shall notify the
21respondent in writing that on the date designated a hearing
22will be held to determine his eligibility for a license and
23that he may appear in person or by counsel. Such written notice
24may be served on the respondent personally, or by registered or
25certified mail sent to the respondent's business address as

 

 

HB3229- 49 -LRB097 06677 CEL 46763 b

1shown in his latest notification to the Department Comptroller
2and shall include sufficient information to inform the
3respondent of the general nature of the charge. At the hearing,
4both the respondent and the complainant shall be accorded ample
5opportunity to present in person or by counsel such statements,
6testimony, evidence and argument as may be pertinent to the
7charges or to any defense thereto. The Department Comptroller
8may reasonably continue such hearing from time to time.
9    The Department Comptroller may subpoena any person or
10persons in this State and take testimony orally, by deposition
11or by exhibit, in the same manner and with the same fees and
12mileage as prescribed in judicial proceedings in civil cases.
13    Any authorized agent of the Department Comptroller may
14administer oaths to witnesses at any hearing which the
15Department Comptroller is authorized to conduct.
16    The Department Comptroller, at his expense, shall provide a
17certified shorthand reporter to take down the testimony and
18preserve a record of all proceedings at the hearing of any case
19involving the refusal to issue a license, the suspension or
20revocation of a license, the imposition of a monetary penalty,
21or the referral of a case for criminal prosecution. The record
22of any such proceeding shall consist of the notice of hearing,
23complaint, all other documents in the nature of pleadings and
24written motions filed in the proceedings, the transcript of
25testimony and the report and orders of the Department
26Comptroller. Copies of the transcript of such record may be

 

 

HB3229- 50 -LRB097 06677 CEL 46763 b

1purchased from the certified shorthand reporter who prepared
2the record or from the Department Comptroller.
3(Source: P.A. 92-419, eff. 1-1-02.)
 
4    (815 ILCS 390/10)  (from Ch. 21, par. 210)
5    Sec. 10. Any circuit court may, upon application of the
6Department Comptroller or of the applicant or licensee against
7whom proceedings under Section 9 are pending, enter an order
8requiring witnesses to attend and testify, and requiring the
9production of documents, papers, files, books and records in
10connection with any hearing in any proceedings under that
11Section. Failure to obey such court order may result in
12contempt proceedings.
13(Source: P.A. 84-239.)
 
14    (815 ILCS 390/11)  (from Ch. 21, par. 211)
15    Sec. 11. Any person affected by a final administrative
16decision of the Department Comptroller may have such decision
17reviewed judicially by the circuit court of the county where
18such person resides, or in the case of a corporation, where the
19registered office is located. If the plaintiff in the review
20proceeding is not a resident of this State, venue shall be in
21Sangamon County. The provisions of the "Administrative Review
22Law", approved August 19, 1981, all amendments and
23modifications thereto, and any rules adopted under it govern
24all proceedings for the judicial review of final administrative

 

 

HB3229- 51 -LRB097 06677 CEL 46763 b

1decisions of the Department Comptroller. The term
2"administrative decision" is defined as in the "Administrative
3Review Law".
4    The Department Comptroller is not required to certify the
5record of the proceeding unless the plaintiff in the review
6proceedings has purchased a copy of the transcript from the
7certified shorthand reporter who prepared the record or from
8the Department Comptroller. Exhibits shall be certified
9without cost.
10(Source: P.A. 84-239.)
 
11    (815 ILCS 390/12)  (from Ch. 21, par. 212)
12    Sec. 12. License revocation or suspension.
13    (a) The Department Comptroller may, upon determination
14that grounds exist for the revocation or suspension of a
15license issued under this Act, revoke or suspend, if
16appropriate, the license issued to a licensee or to a
17particular branch office location with respect to which the
18grounds for revocation or suspension may occur or exist.
19    (b) Upon the revocation or suspension of any license, the
20licensee shall immediately surrender the license or licenses to
21the Department Comptroller. If the licensee fails to do so, the
22Department Comptroller has the right to seize the license or
23licenses.
24(Source: P.A. 92-419, eff. 1-1-02.)
 

 

 

HB3229- 52 -LRB097 06677 CEL 46763 b

1    (815 ILCS 390/13)  (from Ch. 21, par. 213)
2    Sec. 13. A licensee may surrender any license by delivering
3to the Department Comptroller written notice that he thereby
4surrenders such license but such surrender shall not affect
5such licensee's civil or criminal liability for acts committed
6prior to such surrender, or affect his bond. The Department
7Comptroller shall not permit a license to be surrendered by
8licensee unless and until the trust funds of such licensee have
9been transferred to a successor licensee who shall be licensed
10by the Department Comptroller in conformity with the provisions
11of this Act. Any purported transfer of trust funds without
12compliance with this Section is void and the Department
13Comptroller shall have the right to petition for the
14appointment of a receiver to administer the business of the
15licensee.
16(Source: P.A. 84-239.)
 
17    (815 ILCS 390/14)  (from Ch. 21, par. 214)
18    Sec. 14. Contract required.
19    (a) It is unlawful for any person doing business within
20this State to accept sales proceeds, either directly or
21indirectly, by any means unless the seller enters into a
22pre-need sales contract with the purchaser which meets the
23following requirements:
24        (1) A written sales contract shall be executed in at
25    least 11 point type in duplicate for each pre-need sale

 

 

HB3229- 53 -LRB097 06677 CEL 46763 b

1    made by a licensee, and a signed copy given to the
2    purchaser. Each completed contract shall be numbered and
3    shall contain: (i) the name and address of the purchaser,
4    the principal office of the licensee, and the parent
5    company of the licensee; (ii) the name of the person, if
6    known, who is to receive the cemetery merchandise, cemetery
7    services or the completed interment, entombment or
8    inurnment spaces under the contract; and (iii) specific
9    identification of such merchandise, services or spaces to
10    be provided, if a specific space or spaces are contracted
11    for, and the price of the merchandise, services, or space
12    or spaces.
13        (2) In addition, such contracts must contain a
14    provision in distinguishing typeface as follows:
15        "Notwithstanding anything in this contract to the
16    contrary, you are afforded certain specific rights of
17    cancellation and refund under the Illinois Pre-Need
18    Cemetery Sales Act, enacted by the 84th General Assembly of
19    the State of Illinois".
20        (3) All pre-need sales contracts shall be sold on a
21    guaranteed price basis. At the time of performance of the
22    service or delivery of the merchandise, the seller shall be
23    prohibited from assessing the purchaser or his heirs or
24    assigns or duly authorized representative any additional
25    charges for the specific merchandise and services listed on
26    the pre-need sales contract.

 

 

HB3229- 54 -LRB097 06677 CEL 46763 b

1        (4) Each contract shall clearly disclose that the price
2    of the merchandise or services is guaranteed and shall
3    contain the following statement in 12 point bold type:
4        "THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC
5    GOODS, SERVICES, INTERMENT SPACES, ENTOMBMENT SPACES, AND
6    INURNMENT SPACES CONTRACTED FOR. NO ADDITIONAL CHARGES MAY
7    BE REQUIRED FOR DESIGNATED GOODS, SERVICES, AND SPACES.
8    ADDITIONAL CHARGES MAY BE INCURRED FOR UNEXPECTED
9    EXPENSES."
10        (5) The pre-need sales contract shall provide that if
11    the particular cemetery services, cemetery merchandise, or
12    spaces specified in the pre-need contract are unavailable
13    at the time of delivery, the seller shall be required to
14    furnish services, merchandise, and spaces similar in style
15    and at least equal in quality of material and workmanship.
16        (6) The pre-need contract shall also disclose any
17    specific penalties to be incurred by the purchaser as a
18    result of failure to make payments; and penalties to be
19    incurred or moneys or refunds to be received as a result of
20    cancellation of the contract.
21        (7) The pre-need contract shall disclose the nature of
22    the relationship between the provider and the seller.
23        (8) Each pre-need contract that authorizes the
24    delivery of cemetery merchandise to a licensed and bonded
25    warehouse shall provide that prior to or upon delivery of
26    the merchandise to the warehouse the title to the

 

 

HB3229- 55 -LRB097 06677 CEL 46763 b

1    merchandise and a warehouse receipt shall be delivered to
2    the purchaser or beneficiary. The pre-need contract shall
3    contain the following statement in 12 point bold type:
4    "THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO A
5    LICENSED AND BONDED WAREHOUSE FOR STORAGE OF THE
6    MERCHANDISE UNTIL THE MERCHANDISE IS NEEDED BY THE
7    BENEFICIARY. DELIVERY OF THE MERCHANDISE IN THIS MANNER MAY
8    PRECLUDE REFUND OF SALE PROCEEDS THAT ARE ATTRIBUTABLE TO
9    THE DELIVERED MERCHANDISE."
10        The purchaser shall initial the statement at the time
11    of entry into the pre-need contract.
12        (9) Each pre-need contract that authorizes the
13    placement of cemetery merchandise at the site of its
14    ultimate use prior to the time that the merchandise is
15    needed by the beneficiary shall contain the following
16    statement in 12 point bold type:
17    "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE AT
18    THE SITE OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
19    MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
20    MERCHANDISE IN THIS MANNER MAY PRECLUDE REFUND OF SALE
21    PROCEEDS THAT ARE ATTRIBUTABLE TO THE DELIVERED
22    MERCHANDISE."
23        The purchaser shall initial the statement at the time
24    of entry into the pre-need contract.
25        (10) Each pre-need contract that is funded by a trust
26    shall clearly identify the trustee's name and address and

 

 

HB3229- 56 -LRB097 06677 CEL 46763 b

1    the primary state or federal regulator of the trustee as a
2    corporate fiduciary.
3    (b) Every pre-need sales contract must be in writing. The
4Department Comptroller may by rule develop a model pre-need
5sales contract form that meets the requirements of this Act.
6    (c) To the extent the Rule is applicable, every pre-need
7sales contract is subject to the Federal Trade Commission Rule
8concerning the Cooling-Off Period for Door-to-Door Sales (16
9CFR Part 429).
10    (d) No pre-need sales contract may be entered into in this
11State unless there is a provider for the cemetery merchandise,
12cemetery services, and undeveloped interment, inurnment, and
13entombment spaces being sold. If the seller is not the
14provider, then the seller must have a binding agreement with a
15provider, and the identity of the provider and the nature of
16the agreement between the seller and the provider must be
17disclosed in the pre-need sales contract at the time of sale
18and before the receipt of any sale proceeds. The failure to
19disclose the identity of the provider, the nature of the
20agreement between the seller and the provider, or any changes
21thereto to the purchaser and beneficiary, or the failure to
22make the disclosures required by this Section constitutes an
23intentional violation of this Act.
24    (e) No pre-need contract may be entered into in this State
25unless it is accompanied by a funding mechanism permitted under
26this Act and unless the seller is licensed by the Department

 

 

HB3229- 57 -LRB097 06677 CEL 46763 b

1Comptroller as provided in this Act. Nothing in this Act is
2intended to relieve providers or sellers of pre-need contracts
3from being licensed under any other Act required for their
4profession or business or from being subject to the rules
5promulgated to regulate their profession or business,
6including rules on solicitation and advertisement.
7    (f) No pre-need contract may be entered into in this State
8unless the seller explains to the purchaser the terms of the
9pre-need contract prior to the purchaser signing and the
10purchaser initials a statement in the contract confirming that
11the seller has explained the terms of the contract prior to the
12purchaser signing.
13    (g) The Department State Comptroller shall develop a
14booklet for consumers in plain English describing the scope,
15application, and consumer protections of this Act. After the
16booklet is developed, no pre-need contract may be sold in this
17State unless the seller distributes to the purchaser prior to
18the sale a booklet developed or approved for use by the
19Department State Comptroller.
20(Source: P.A. 96-879, eff. 2-2-10.)
 
21    (815 ILCS 390/15)  (from Ch. 21, par. 215)
22    Sec. 15. (a) Whenever a seller receives anything of value
23under a pre-need sales contract, the person receiving such
24value shall deposit 50% of all proceeds received into one or
25more trust funds maintained pursuant to this Section, except

 

 

HB3229- 58 -LRB097 06677 CEL 46763 b

1that, in the case of proceeds received for the purchase of
2outer burial containers, 85% of the proceeds shall be deposited
3into one or more trust funds. Such deposits shall be made until
4the amount deposited in trust equals 50% of the sales price of
5the cemetery merchandise, cemetery services and undeveloped
6spaces included in such contract, except that, in the case of
7deposits for outer burial containers, deposits shall be made
8until the amount deposited in trust equals 85% of the sales
9price. In the event an installment contract is factored,
10discounted or sold to a third party, the seller shall deposit
11an amount equal to 50% of the sales price of the installment
12contract, except that, for the portion of the contract
13attributable to the sale of outer burial containers, the seller
14shall deposit an amount equal to 85% of the sales price.
15Proceeds required to be deposited in trust which are
16attributable to cemetery merchandise and cemetery services
17shall be held in a "Cemetery Merchandise Trust Fund". Proceeds
18required to be deposited in trust which are attributable to the
19sale of undeveloped interment, entombment or inurnment spaces
20shall be held in a "Pre-construction Trust Fund". If
21merchandise is delivered for storage in a bonded warehouse, as
22authorized herein, and payment of transportation or other
23charges totaling more than $20 will be required in order to
24secure delivery to the site of ultimate use, upon such delivery
25to the warehouse the seller shall deposit to the trust fund the
26full amount of the actual or estimated transportation charge.

 

 

HB3229- 59 -LRB097 06677 CEL 46763 b

1Transportation charges which have been prepaid by the seller
2shall not be deposited to trust funds maintained pursuant to
3this Section. As used in this Section, "all proceeds" means the
4entire amount paid by a purchaser in connection with a pre-need
5sales contract, including finance charges and Cemetery Care Act
6contributions, but excluding sales taxes and credit life
7insurance premiums.
8    (b) The seller shall act as trustee of all amounts received
9for cemetery merchandise, services, or undeveloped spaces
10until those amounts have been deposited into the trust fund.
11All trust deposits required by this Act shall be made within 30
12days following the end of the month of receipt. The seller must
13retain a corporate fiduciary as an independent trustee for any
14amount of trust funds. Upon 30 days' prior written notice from
15the seller to the Department Comptroller, the seller may change
16the trustee of the trust fund. Failure to provide the
17Department Comptroller with timely prior notice is an
18intentional violation of this Act.
19    (c) A trust established under this Act must be maintained
20with a corporate fiduciary as defined in Section 1-5.05 of the
21Corporate Fiduciary Act.
22    (d) Funds deposited in the trust account shall be
23identified in the records of the seller by the name of the
24purchaser. Nothing shall prevent the trustee from commingling
25the deposits in any such trust fund for purposes of the
26management thereof and the investment of funds therein as

 

 

HB3229- 60 -LRB097 06677 CEL 46763 b

1provided in the "Common Trust Fund Act", approved June 24,
21949, as amended. In addition, multiple trust funds maintained
3pursuant to this Act may be commingled or commingled with other
4funeral or burial related trust funds, provided that all record
5keeping requirements imposed by or pursuant to law are met.
6    (e) In lieu of a pre-construction trust fund, a seller of
7undeveloped interment, entombment or inurnment spaces may
8obtain and file with the Department Comptroller a performance
9bond in an amount at least equal to 50% of the sales price of
10the undeveloped spaces or the estimated cost of completing
11construction, whichever is greater. The bond shall be
12conditioned on the satisfactory construction and completion of
13the undeveloped spaces as required in Section 19 of this Act.
14    Each bond obtained under this Section shall have as surety
15thereon a corporate surety company incorporated under the laws
16of the United States, or a State, the District of Columbia or a
17territory or possession of the United States. Each such
18corporate surety company must be authorized to provide
19performance bonds as required by this Section, have paid-up
20capital of at least $250,000 in cash or its equivalent and be
21able to carry out its contracts. Each pre-need seller must
22provide to the Department Comptroller, for each corporate
23surety company such seller utilizes, a statement of assets and
24liabilities of the corporate surety company sworn to by the
25president and secretary of the corporation by January 1 of each
26year.

 

 

HB3229- 61 -LRB097 06677 CEL 46763 b

1    The Department Comptroller shall prohibit pre-need sellers
2from doing new business with a corporate surety company if the
3company is insolvent or is in violation of this Section. In
4addition the Department Comptroller may direct a pre-need
5seller to reinstate a pre-construction trust fund upon the
6Department's Comptroller's determination that the corporate
7surety company no longer is sufficient security.
8    All performance bonds issued pursuant to this Section must
9be irrevocable during the statutory term for completing
10construction specified in Section 19 of this Act, unless
11terminated sooner by the completion of construction.
12    (f) Whenever any pre-need contract shall be entered into
13and include 1) items of cemetery merchandise and cemetery
14services, and 2) rights to interment, inurnment or entombment
15in completed spaces without allocation of the gross sale price
16among the items sold, the application of payments received
17under the contract shall be allocated, first to the right to
18interment, inurnment or entombment, second to items of cemetery
19merchandise and cemetery services, unless some other
20allocation is clearly provided in the contract.
21    (g) Any person engaging in pre-need sales who enters into a
22combination sale which involves the sale of items covered by a
23trust or performance bond requirement and any item not covered
24by any entrustment or bond requirement, shall be prohibited
25from increasing the gross sales price of those items not
26requiring entrustment with the purpose of allocating a lesser

 

 

HB3229- 62 -LRB097 06677 CEL 46763 b

1gross sales price to items which require a trust deposit or a
2performance bond.
3(Source: P.A. 96-879, eff. 2-2-10.)
 
4    (815 ILCS 390/16)  (from Ch. 21, par. 216)
5    Sec. 16. Trust funds; disbursements.
6    (a) A trustee shall make no disbursements from the trust
7fund except as provided in this Act.
8    (b) A trustee has a duty to invest and manage the trust
9assets pursuant to the Prudent Investor Rule under the Trusts
10and Trustees Act. Whenever the seller changes trustees pursuant
11to this Act, the trustee must provide written notice of the
12change in trustees to the Department Comptroller no less than
1328 days prior to the effective date of such a change in
14trustee. The trustee has an ongoing duty to provide the
15Department Comptroller with a current and true copy of the
16trust agreement under which the trust funds are held pursuant
17to this Act.
18    (c) The trustee may rely upon certifications and affidavits
19made to it under the provisions of this Act, and shall not be
20liable to any person for such reliance.
21    (d) A trustee shall be allowed to withdraw from the trust
22funds maintained pursuant to this Act a reasonable fee pursuant
23to the Trusts and Trustees Act.
24    (e) The trust shall be a single-purpose trust fund. In the
25event of the seller's bankruptcy, insolvency or assignment for

 

 

HB3229- 63 -LRB097 06677 CEL 46763 b

1the benefit of creditors, or an adverse judgment, the trust
2funds shall not be available to any creditor as assets of the
3seller or to pay any expenses of any bankruptcy or similar
4proceeding, but shall be distributed to the purchasers or
5managed for their benefit by the trustee holding the funds.
6Except in an action by the Department Comptroller to revoke a
7license issued pursuant to this Act and for creation of a
8receivership as provided in this Act, the trust shall not be
9subject to judgment, execution, garnishment, attachment, or
10other seizure by process in bankruptcy or otherwise, nor to
11sale, pledge, mortgage, or other alienation, and shall not be
12assignable except as approved by the Department Comptroller.
13The changes made by this amendatory Act of the 91st General
14Assembly are intended to clarify existing law regarding the
15inability of licensees to pledge the trust.
16    (f) Because it is not known at the time of deposit or at
17the time that income is earned on the trust account to whom the
18principal and the accumulated earnings will be distributed, for
19purposes of determining the Illinois Income Tax due on these
20trust funds, the principal and any accrued earnings or losses
21relating to each individual account shall be held in suspense
22until the final determination is made as to whom the account
23shall be paid.
24    (g) A trustee shall at least annually furnish to each
25purchaser a statement identifying: (1) the receipts,
26disbursements, and inventory of the trust, including an

 

 

HB3229- 64 -LRB097 06677 CEL 46763 b

1explanation of any fees or expenses charged by the trustee
2under paragraph (d) of this Section or otherwise, (2) an
3explanation of the purchaser's right to a refund, if any, under
4this Act, and (3) the primary regulator of the trust as a
5corporate fiduciary under state or federal law.
6(Source: P.A. 96-879, eff. 2-2-10.)
 
7    (815 ILCS 390/18)  (from Ch. 21, par. 218)
8    Sec. 18. (a) If for any reason a seller who has engaged in
9pre-need sales has refused, cannot or does not comply with the
10terms of the pre-need sales contract within a reasonable time
11after he is required to do so, the purchaser or his heirs or
12assigns or duly authorized representative shall have the right
13to a refund of an amount equal to the sales price paid for
14undelivered merchandise, services or spaces plus undistributed
15interest amounts held in trust attributable to such contract,
16within 30 days of the filing of a sworn affidavit with the
17trustee setting forth the existence of the contract and the
18fact of breach. A copy of this affidavit shall be filed with
19the Department Comptroller and the seller. In the event a
20seller is prevented from performing by strike, shortage of
21materials, civil disorder, natural disaster or any like
22occurrence beyond the control of the seller, the seller's time
23for performance shall be extended by the length of such delay.
24Nothing in this Section shall relieve the seller from any
25liability for non-performance of his obligations under the

 

 

HB3229- 65 -LRB097 06677 CEL 46763 b

1pre-need sales contract.
2    (b) If the purchaser defaults in making payments, the
3seller shall have the right to cancel the contract and withdraw
4from the trust fund the entire balance to the credit of the
5defaulting purchaser's account as liquidating damages. In such
6event, the trustee shall deliver said balance to the seller
7upon its certification, and upon receiving said certification
8the trustee may rely thereon and shall not be liable to anyone
9for such reliance.
10    (c) After final payment on a pre-need contract, any
11beneficiary may upon written demand of a seller, demand that
12the pre-need contract with such seller be terminated. The
13seller shall, within 30 days, initiate a refund to such
14purchaser or beneficiary of the entire amount held in trust
15attributable to undelivered cemetery merchandise and
16unperformed cemetery services, including undistributed
17interest earned thereon. Where more than one beneficiary is
18included in a pre-need contract, a seller need not honor a
19demand for cancellation under this paragraph unless all
20beneficiaries assent and their signatures are included in
21written demand for refund.
22(Source: P.A. 85-805.)
 
23    (815 ILCS 390/19)  (from Ch. 21, par. 219)
24    Sec. 19. Construction or development of spaces.
25    (a) The construction or development of undeveloped

 

 

HB3229- 66 -LRB097 06677 CEL 46763 b

1interment, entombment or inurnment spaces shall be commenced on
2that phase, section or sections of undeveloped ground or
3section of lawn crypts, mausoleums, garden crypts,
4columbariums or cemetery spaces in which sales are made within
53 years of the date of the first such sale. The seller shall
6give written notice to the Department Comptroller no later than
730 days after the first sale. Such notice shall include a
8description of the project. Once commenced, construction or
9development shall be pursued diligently to completion. The
10construction must be completed within 6 years of the first
11sale. If construction or development is not commenced or
12completed within the times specified herein, any purchaser may
13surrender and cancel the contract and upon cancellation shall
14be entitled to a refund of the actual amounts paid toward the
15purchase price plus interest attributable to such amount earned
16while in trust; provided however that any delay caused by
17strike, shortage of materials, civil disorder, natural
18disaster or any like occurrence beyond the control of the
19seller shall extend the time of such commencement and
20completion by the length of such delay.
21    (b) At any time within 12 months of a purchaser's entering
22into a pre-need contract for undeveloped interment, entombment
23or inurnment spaces, a purchaser may surrender and cancel his
24or her contract and upon cancellation shall be entitled to a
25refund of the actual amounts paid toward the purchase price
26plus interest attributable to such amount earned while in

 

 

HB3229- 67 -LRB097 06677 CEL 46763 b

1trust. Notwithstanding the foregoing, the cancellation and
2refund rights specified in this paragraph shall terminate as of
3the date the seller commences construction or development of
4the phase, section or sections of undeveloped spaces in which
5sales are made. After the rights of cancellation and refund
6specified herein have terminated, if a purchaser defaults in
7making payments under the pre-need contract, the seller shall
8have the right to cancel the contract and withdraw from the
9trust fund the entire balance to the credit of the defaulting
10purchaser's account as liquidated damages. In such event, the
11trustee shall deliver said balance to the seller upon its
12certification, and upon receiving said certification the
13trustee may rely thereon and shall not be liable to anyone for
14such reliance.
15    (c) During the construction or development of interment,
16entombment or inurnment spaces, upon the sworn certification by
17the seller and the contractor to the trustee the trustee shall
18disburse from the trust fund the amount equivalent to the cost
19of performed labor or delivered materials as certified. Said
20certification shall be substantially in the following form:
21    We, the undersigned, being respectively the Seller and
22Contractor, do hereby certify that the Contractor has performed
23labor or delivered materials or both to (address of property)
24.........., in connection with a contract to .........., and
25that as of this date the value of the labor performed and
26materials delivered is $.......

 

 

HB3229- 68 -LRB097 06677 CEL 46763 b

1    We do further certify that in connection with such contract
2there remains labor to be performed, and materials to be
3delivered, of the value of $........
4    This Certificate is signed (insert date).
5............              ............
6   Seller                  Contractor
 
7    A person who executes and delivers a completion certificate
8with actual knowledge of a falsity contained therein shall be
9considered in violation of this Act and subject to the
10penalties contained herein.
11    (d) Except as otherwise authorized by this Section, every
12seller of undeveloped spaces shall provide facilities for
13temporary interment, entombment or inurnment for purchasers or
14beneficiaries of contracts who die prior to completion of the
15space. Such temporary facilities shall be constructed of
16permanent materials, and, insofar as practical, be landscaped
17and groomed to the extent customary in the cemetery industry in
18that community. The heirs, assigns, or personal representative
19of a purchaser or beneficiary shall not be required to accept
20temporary underground interment spaces where the undeveloped
21space contracted for was an above ground entombment or
22inurnment space. In the event that temporary facilities as
23described in this paragraph are not made available, upon the
24death of a purchaser or beneficiary, the heirs, assigns, or
25personal representative is entitled to a refund of the entire

 

 

HB3229- 69 -LRB097 06677 CEL 46763 b

1sales price paid plus undistributed interest attributable to
2such amount while in trust.
3    (e) If the seller delivers a completed space acceptable to
4the heirs, assigns or personal representative of a purchaser or
5beneficiary, other than the temporary facilities specified
6herein, in lieu of the undeveloped space purchased, the seller
7shall provide the trustee with a delivery certificate and all
8sums deposited under the pre-need sales contract, including the
9undistributed income, shall be paid to the seller.
10    (f) Upon completion of the phase, section or sections of
11the project as certified to the trustee by the seller and the
12contractor and delivery of the deed or certificate of ownership
13to the completed interment, entombment, or inurnment space to
14all of the purchasers entitled to receive those ownership
15documents, the trust fund requirements set forth herein shall
16terminate and all funds held in the preconstruction trust fund
17attributable to the completed phase, section or sections,
18including interest accrued thereon, shall be returned to the
19seller.
20    (g) This Section shall not apply to the sale of undeveloped
21spaces if there has been any such sale in the same phase,
22section or sections of the project prior to the effective date
23of this Act.
24(Source: P.A. 91-357, eff. 7-29-99; 92-419, eff. 1-1-02.)
 
25    (815 ILCS 390/20)  (from Ch. 21, par. 220)

 

 

HB3229- 70 -LRB097 06677 CEL 46763 b

1    Sec. 20. Records.
2    (a) Each licensee must keep accurate accounts, books and
3records in this State at the principal place of business
4identified in the licensee's license application or as
5otherwise approved by the Department Comptroller in writing of
6all transactions, copies of agreements, dates and amounts of
7payments made or received, the names and addresses of the
8contracting parties, the names and addresses of persons for
9whose benefit funds are received, if known, and the names of
10the trust depositories. Additionally, for a period not to
11exceed 6 months after the performance of all terms in a
12pre-need sales contract, the licensee shall maintain copies of
13each pre-need contract at the licensee branch location where
14the contract was entered or at some other location agreed to by
15the Department Comptroller in writing.
16    (b) Each licensee must maintain such records for a period
17of 3 years after the licensee shall have fulfilled his or her
18obligation under the pre-need contract or 3 years after any
19stored merchandise shall have been provided to the purchaser or
20beneficiary, whichever is later.
21    (c) Each licensee shall submit reports to the Department
22Comptroller annually, under oath, on forms furnished by the
23Department Comptroller. The annual report shall contain, but
24shall not be limited to, the following:
25        (1) An accounting of the principal deposit and
26    additions of principal during the fiscal year.

 

 

HB3229- 71 -LRB097 06677 CEL 46763 b

1        (2) An accounting of any withdrawal of principal or
2    earnings.
3        (3) An accounting at the end of each fiscal year, of
4    the total amount of principal and earnings held.
5    (d) The annual report shall be filed by the licensee with
6the Department Comptroller within 75 days after the end of the
7licensee's fiscal year. An extension of up to 60 days may be
8granted by the Department Comptroller, upon a showing of need
9by the licensee. Any other reports shall be in the form
10furnished or specified by the Department Comptroller. If a
11licensee fails to submit an annual report to the Department
12Comptroller within the time specified in this Section, the
13Department Comptroller shall impose upon the licensee a penalty
14of $5 for each and every day the licensee remains delinquent in
15submitting the annual report. The Department Comptroller may
16abate all or part of the $5 daily penalty for good cause shown.
17Each report shall be accompanied by a check or money order in
18the amount of $10 payable to: the Illinois Department of
19Financial and Professional Regulation Comptroller, State of
20Illinois.
21    (e) On and after the effective date of this amendatory Act
22of the 91st General Assembly, a licensee may report all
23required information concerning the sale of outer burial
24containers on the licensee's annual report required to be filed
25under this Act and shall not be required to report that
26information under the Illinois Funeral or Burial Funds Act, as

 

 

HB3229- 72 -LRB097 06677 CEL 46763 b

1long as the information is reported under this Act.
2(Source: P.A. 91-7, eff. 1-1-00; 92-419, eff. 1-1-02.)
 
3    (815 ILCS 390/21)  (from Ch. 21, par. 221)
4    Sec. 21. Audits.
5    (a) The Department Comptroller may audit the records of any
6licensee with respect to the trust funds created or
7pre-construction performance bonds obtained pursuant to this
8Act as they pertain to the deposits to and withdrawals from the
9trust fund and the maintenance of the required bond, at
10reasonable times no more than annually unless there is
11reasonable cause to suspect a deficiency. For that purpose, the
12Department Comptroller shall have free access to the office and
13places of business of all licensees and all trustees or
14depositories as it relates to the deposit, withdrawal and
15investment of funds. The fee for an initial audit shall be
16borne by the licensee if it has $10,000 or more in trust funds;
17otherwise, by the Department Comptroller. The fee charged by
18the Department Comptroller for such audit shall be paid by the
19licensee and shall be based upon the total amount of pre-need
20sales made by the licensee pursuant to this Act as of the end
21of the calendar or fiscal year for which an annual report is
22required and shall be in accordance with the following
23schedule:
24less than $10,000.................................no charge
25$10,000 or more but less than $50,000.............$10

 

 

HB3229- 73 -LRB097 06677 CEL 46763 b

1$50,000 or more but less than $100,000............$40
2$100,000 or more but less than $250,000...........$80
3$250,000 or more..................................$100
4    (b) The Department Comptroller may order additional audits
5or examinations as he or she may deem necessary or advisable to
6ensure the safety and stability of the trust funds and to
7ensure compliance with this Act. These additional audits or
8examinations shall only be made after good cause is established
9by the Department Comptroller in the written order. The grounds
10for ordering these additional audits or examinations may
11include, but shall not be limited to:
12        (1) material and unverified changes or fluctuations in
13    trust balances;
14        (2) the licensee changing trustees more than twice in
15    any 12-month period;
16        (3) any withdrawals or attempted withdrawals from the
17    trusts in violation of this Act; or
18        (4) failure to maintain or produce documentation
19    required by this Act for deposits into trust accounts or
20    trust investment activities.
21    Prior to ordering an additional audit or examination, the
22Department Comptroller shall request the licensee to respond
23and comment upon the factors identified by the Department
24Comptroller as warranting the subsequent examination or audit.
25The licensee shall have 30 days to provide a response to the
26Department Comptroller. If the Department Comptroller decides

 

 

HB3229- 74 -LRB097 06677 CEL 46763 b

1to proceed with the additional examination or audit, the
2licensee shall bear the full cost of that examination or audit
3up to a maximum of $7,500. The Department Comptroller may elect
4to pay for the examination or audit and receive reimbursement
5from the licensee. Payment of the costs of the examination or
6audit by a licensee shall be a condition of receiving or
7maintaining a license under this Act. All moneys received by
8the Department Comptroller for examination or audit fees shall
9be maintained in a separate account to be known as the
10Department's Comptroller's Administrative Fund. This Fund,
11subject to appropriation by the General Assembly, may be
12utilized by the Department Comptroller for enforcing this Act
13and other purposes that may be authorized by law.
14(Source: P.A. 88-477; 89-615, eff. 8-9-96.)
 
15    (815 ILCS 390/23)  (from Ch. 21, par. 223)
16    Sec. 23. (a) Any person who fails to deposit the required
17amount into a trust provided for in this Act, improperly
18withdraws or uses trust funds for his or her own benefit, or
19otherwise violates any provision of this Act is guilty of a
20Class 4 felony.
21    (b) If any person violates this Act or fails or refuses to
22comply with any order of the Department Comptroller or any part
23thereof which to such person has become final and is still in
24effect, the Department Comptroller may, after notice and
25hearing at which it is determined that a violation of this Act

 

 

HB3229- 75 -LRB097 06677 CEL 46763 b

1or such order has been committed, further order that such
2person shall forfeit and pay to the State of Illinois a sum not
3to exceed $5,000 for each violation. Such liability shall be
4enforced in an action brought in any court of competent
5jurisdiction by the Department Comptroller in the name of the
6people of the State of Illinois.
7    (c) Whenever a license is revoked by the Department
8Comptroller, or the Department Comptroller determines that any
9person is engaged in pre-need sales without a license, he shall
10apply to the circuit court of the county where such person is
11located for a receiver to administer the business of such
12person.
13    (d) Whenever a licensee fails or refuses to make a required
14report or whenever it appears to the Department Comptroller
15from any report or examination that such licensee has committed
16a violation of law or that the trust funds have not been
17administered properly or that it is unsafe or inexpedient for
18such licensee or the trustee of the trust funds of such
19licensee to continue to administer such funds or that any
20officer of such licensee or of the trustee of the trust funds
21of such licensee has abused his trust or has been guilty of
22misconduct or breach of trust in his official position
23injurious to such licensee or that such licensee has suffered
24as to its trust funds a serious loss by larceny, embezzlement,
25burglary, repudiation or otherwise, the Department Comptroller
26shall, by order, direct the discontinuance of such illegal,

 

 

HB3229- 76 -LRB097 06677 CEL 46763 b

1unsafe or unauthorized practices and shall direct strict
2conformity with the requirements of the law and safety and
3security in its transactions and may apply to the circuit court
4of the county where such licensee is located to prevent any
5disbursements or expenditures by such licensee until the trust
6funds are in such condition that it would not be jeopardized
7thereby and the Department Comptroller shall communicate the
8facts to the Attorney General of the State of Illinois who
9shall thereupon institute such proceedings against the
10licensee or its trustee or the officers of either or both as
11the nature of the case may require.
12    (e) In addition to the other penalties and remedies
13provided in this Act, the Department Comptroller may bring a
14civil action in the county of residence of the licensee or any
15person engaging in pre-need sales, to enjoin any violation or
16threatened violation of this Act.
17    (f) The powers vested in the Department Comptroller by this
18Section are additional to any and all other powers and remedies
19vested in the Department Comptroller by law, and nothing herein
20contained shall be construed as requiring that the Department
21Comptroller shall employ the powers conferred herein instead of
22or as a condition precedent to the exercise of any other power
23or remedy vested in the Department Comptroller.
24(Source: P.A. 92-419, eff. 1-1-02.)
 
25    (815 ILCS 390/24)  (from Ch. 21, par. 224)

 

 

HB3229- 77 -LRB097 06677 CEL 46763 b

1    Sec. 24. The Department Comptroller may adopt, amend or
2repeal such rules, not inconsistent with the law, as may be
3necessary to enable him to administer and enforce the
4provisions of this Act. All such action shall be taken
5according to the provisions of "The Illinois Administrative
6Procedure Act", approved September 22, 1975, as amended.
7(Source: P.A. 84-239.)
 
8    (815 ILCS 390/27)  (from Ch. 21, par. 227)
9    Sec. 27. (a) The provisions of this Act shall not apply to
10any pre-need sale that was executed prior to the effective date
11of this Act. Any seller, with the written approval of the
12purchaser, shall have the option to become subject to this Act
13on any pre-need sales made prior to the effective date of this
14Act by giving written notice to its purchasers and to the
15Department Comptroller.
16    (b) The provisions of this Act shall not apply to the
17isolated or occasional sale by a consumer to another consumer
18of cemetery merchandise, cemetery services or undeveloped
19spaces by an individual who does not hold himself out as being
20engaged in, or who does not engage in, making pre-need sales.
21(Source: P.A. 85-805.)
 
22    (815 ILCS 390/27.1)
23    Sec. 27.1. Sales; liability of purchaser for shortage. In
24the event of a sale or transfer of all or substantially all of

 

 

HB3229- 78 -LRB097 06677 CEL 46763 b

1the assets of the licensee, the sale or transfer of the
2controlling interest of the corporate stock of the licensee if
3the licensee is a corporation, the sale or transfer of the
4controlling interest of the partnership if the licensee is a
5partnership, or sale pursuant to foreclosure proceedings, the
6purchaser is liable for any shortages existing before or after
7the sale in the trust funds required to be maintained in a
8trust under this Act and shall honor all pre-need contracts and
9trusts entered into by the licensee. Any shortages existing in
10the trust funds constitute a prior lien in favor of the trust
11for the total value of the shortages, and notice of that lien
12must be provided in all sales instruments.
13    In the event of a sale or transfer of all or substantially
14all of the assets of the licensee, the sale or transfer of the
15controlling interest of the corporate stock of the licensee if
16the licensee is a corporation, or the sale or transfer of the
17controlling interest of the partnership if the licensee is a
18partnership, the licensee shall, at least 21 days prior to the
19sale or transfer, notify the Department Comptroller, in
20writing, of the pending date of sale or transfer so as to
21permit the Department Comptroller to audit the books and
22records of the licensee. The audit must be commenced within 10
23business days after the receipt of the notification and
24completed within the 21-day notification period unless the
25Department Comptroller notifies the licensee during that
26period that there is a basis for determining a deficiency which

 

 

HB3229- 79 -LRB097 06677 CEL 46763 b

1will require additional time to finalize. The sale or transfer
2may not be completed by the licensee unless and until:
3        (i) the Department Comptroller has completed the audit
4    of the licensee's books and records;
5        (ii) any delinquency existing in the trust funds has
6    been paid by the licensee, or arrangements satisfactory to
7    the Department Comptroller have been made by the licensee
8    on the sale or transfer for the payment of any delinquency;
9        (iii) the Department Comptroller issues a license upon
10    application of the new owner, which license must be applied
11    for within 30 days after the anticipated date of the sale
12    or transfer, subject to the payment of any delinquencies,
13    if any, as stated in item (ii).
14    For purposes of this Section, a person, firm, corporation,
15partnership, or institution that acquires the licensee through
16a real estate foreclosure is subject to the provisions of this
17Section.
18(Source: P.A. 92-419, eff. 1-1-02.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.

 

 

HB3229- 80 -LRB097 06677 CEL 46763 b

1 INDEX
2 Statutes amended in order of appearance
3    225 ILCS 45/1afrom Ch. 111 1/2, par. 73.101a
4    225 ILCS 45/1a-1
5    225 ILCS 45/1a-2
6    225 ILCS 45/2from Ch. 111 1/2, par. 73.102
7    225 ILCS 45/3from Ch. 111 1/2, par. 73.103
8    225 ILCS 45/3afrom Ch. 111 1/2, par. 73.103a
9    225 ILCS 45/3a-5
10    225 ILCS 45/3bfrom Ch. 111 1/2, par. 73.103b
11    225 ILCS 45/3cfrom Ch. 111 1/2, par. 73.103c
12    225 ILCS 45/3dfrom Ch. 111 1/2, par. 73.103d
13    225 ILCS 45/3efrom Ch. 111 1/2, par. 73.103e
14    225 ILCS 45/3f
15    225 ILCS 45/4a
16    225 ILCS 45/7.2
17    225 ILCS 45/7.3
18    225 ILCS 45/8from Ch. 111 1/2, par. 73.108
19    225 ILCS 45/8.1
20    815 ILCS 390/4from Ch. 21, par. 204
21    815 ILCS 390/5from Ch. 21, par. 205
22    815 ILCS 390/6from Ch. 21, par. 206
23    815 ILCS 390/7from Ch. 21, par. 207
24    815 ILCS 390/8from Ch. 21, par. 208
25    815 ILCS 390/8a

 

 

HB3229- 81 -LRB097 06677 CEL 46763 b

1    815 ILCS 390/8b
2    815 ILCS 390/9from Ch. 21, par. 209
3    815 ILCS 390/10from Ch. 21, par. 210
4    815 ILCS 390/11from Ch. 21, par. 211
5    815 ILCS 390/12from Ch. 21, par. 212
6    815 ILCS 390/13from Ch. 21, par. 213
7    815 ILCS 390/14from Ch. 21, par. 214
8    815 ILCS 390/15from Ch. 21, par. 215
9    815 ILCS 390/16from Ch. 21, par. 216
10    815 ILCS 390/18from Ch. 21, par. 218
11    815 ILCS 390/19from Ch. 21, par. 219
12    815 ILCS 390/20from Ch. 21, par. 220
13    815 ILCS 390/21from Ch. 21, par. 221
14    815 ILCS 390/23from Ch. 21, par. 223
15    815 ILCS 390/24from Ch. 21, par. 224
16    815 ILCS 390/27from Ch. 21, par. 227
17    815 ILCS 390/27.1