Full Text of HB5584 102nd General Assembly
HB5584 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5584 Introduced 1/31/2022___________, by SYNOPSIS AS INTRODUCED: |
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Amends the Cemetery Care Act. Requires every cemetery authority to choose the distribution of either of the following from a care fund: all net ordinary income; or a unitrust disbursement not exceeding 5% of the fair market value of the care fund. Requires the distribution method and the disbursement percentage selected to remain in effect unless the cemetery authority notifies the trustee and the Comptroller of its desire to effect a change. Requires a distribution from the care fund to be made on a monthly, quarterly, semiannual, or annual basis, as agreed upon by the cemetery authority and the trustee. Provides that in order to withdraw a unitrust disbursement, the fair market value of the care fund after the disbursement shall be greater than 80% of the aggregate fair market value of the care fund as of the end of the immediately preceding calendar year. Requires the trustee to pay reasonable operating expenses and taxes of the care fund itself. Provides that the provisions do not apply to a fraternal cemetery, a municipal, State, or federal cemetery, a religious cemetery, or a family burying ground.
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| | A BILL FOR |
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| | | HB5584 | | LRB102 24793 LNS 34037 b |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Cemetery Care Act is amended by adding | 5 | | Section 4.1 as follows: | 6 | | (760 ILCS 100/4.1 new) | 7 | | Sec. 4.1. Disbursement. | 8 | | (a) Every cemetery authority shall choose the distribution | 9 | | of either of the following from a care fund: | 10 | | (1) all net ordinary income, including collected | 11 | | dividends, interest, and other income earned by the care | 12 | | fund, reduced by any expenses, including, but not limited | 13 | | to, taxes on income, fees, commissions, and costs; or | 14 | | (2) a unitrust disbursement not exceeding 5% of the | 15 | | fair market value of the care fund. As used in this | 16 | | paragraph, "fair market value" means the average of the | 17 | | net fair market value of the assets of the care fund as of | 18 | | the last trading day for each of the 3 preceding fiscal | 19 | | years. | 20 | | (b) A cemetery authority that selects the unitrust | 21 | | disbursement method under paragraph (2) of subsection (a) | 22 | | shall: | 23 | | (1) deliver to the trustee of the care fund written |
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| 1 | | instructions, including the disbursement percentage | 2 | | selected, not later than 60 days prior to the beginning of | 3 | | the calendar year; and | 4 | | (2) deliver to the Comptroller a notification that the | 5 | | cemetery authority selected the unitrust disbursement | 6 | | method and the percentage selected. | 7 | | (c) The distribution method and, if a unitrust | 8 | | disbursement, the disbursement percentage selected shall | 9 | | remain in effect unless the cemetery authority notifies the | 10 | | trustee and the Comptroller of its desire to effect a change. | 11 | | The trustee shall ensure that an investment policy is in place | 12 | | and contains goals and objectives that are supportive of the | 13 | | growth of the care fund. | 14 | | (d) A distribution from the care fund shall be made on a | 15 | | monthly, quarterly, semiannual, or annual basis, as agreed | 16 | | upon by the cemetery authority and the trustee. If the trustee | 17 | | does not receive written instructions from the cemetery | 18 | | authority informing the trustee of the method of calculation | 19 | | and distribution chosen, the trustee shall calculate and | 20 | | distribute the net income, as earned, on a monthly basis. | 21 | | (e) A unitrust disbursement may not be withdrawn unless | 22 | | the fair market value of the care fund after the disbursement | 23 | | is greater than 80% of the aggregate fair market value of the | 24 | | care fund as of the end of the immediately preceding calendar | 25 | | year. If this is not the case, the disbursement shall be | 26 | | limited for that year to net ordinary income. |
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| 1 | | (f) The trustee shall pay the reasonable operating | 2 | | expenses and taxes of the care fund itself. If the operating | 3 | | expenses and taxes paid are greater than 2.5% of the fair | 4 | | market value at the end of the preceding calendar year and the | 5 | | cemetery authority has selected a unitrust disbursement, the | 6 | | trustee shall reduce the unitrust disbursement by the amount | 7 | | exceeding 2.5%. | 8 | | (g) This Section does not apply to a fraternal cemetery, a | 9 | | municipal, State, or federal cemetery, a religious cemetery, | 10 | | or a family burying ground.
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