State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ Senate Amendment 001 ]

90_SB1244

      760 ILCS 100/2            from Ch. 21, par. 64.2
      760 ILCS 100/9            from Ch. 21, par. 64.9
          Amends  the  Cemetery  Care  Act.    Removes   from   the
      definition  of  "care"  overhead  expense  and maintenance of
      records of lot ownership, transfers, and burials.    Provides
      that   the   definition   of  "care"  does  not  include  the
      compensation of employees the preponderance of  whose  duties
      do  not  involve  the  maintenance of the cemetery.  Provides
      that a cemetery authority owning, operating, controlling,  or
      managing a privately operated cemetery shall make application
      for  a  license within 30 days whenever it is newly organized
      and desires to be licensed to accept care funds  or  whenever
      there is a sale or transfer of a controlling interest.
                                                     LRB9008269NTsb
                                               LRB9008269NTsb
 1        AN  ACT  to  amend  the  Cemetery  Care  Act  by changing
 2    Sections 2 and 9.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Cemetery Care Act is amended by changing
 6    Sections 2 and 9 as follows:
 7        (760 ILCS 100/2) (from Ch. 21, par. 64.2)
 8        Sec. 2.  Definitions.  The  following  words,  terms  and
 9    phrases  used  in this Act, for the purpose of this Act, have
10    the following meanings:
11        "Person"  means  any  person,  partnership,  association,
12    corporation, or other entity.
13        "Trustee" means any person authorized to hold funds under
14    this Act.
15        "Comptroller" means  the  Comptroller  of  the  State  of
16    Illinois.
17        "Care"  means  the  maintenance  of a cemetery and of the
18    lots, graves, crypts, niches, family  mausoleums,  memorials,
19    and  markers therein; including cutting and trimming of lawn,
20    shrubs and trees at reasonable intervals; keeping  in  repair
21    the  drains,  water lines, roads, buildings, fences and other
22    structures, in keeping with a well maintained cemetery;  also
23    overhead  expense  necessary  for  such  purposes,  including
24    maintenance  of machinery, tools, and equipment for such care
25    and the; compensation of employees the preponderance of whose
26    duties involve the maintenance  of  the  cemetery,  including
27    payment  of  insurance  premiums and, reasonable payments for
28    employees  pension  and  other  benefit   plans   for   those
29    employees,   and   maintaining   necessary   records  of  lot
30    ownership, transfers and burials.
31        "Care funds" as distinguished from receipts  from  annual
                            -2-                LRB9008269NTsb
 1    charges or gifts for current or annual care, means any realty
 2    or  personalty  impressed  with  a  trust by the terms of any
 3    gift, grant, contribution, payment, legacy,  or  pursuant  to
 4    contract,   accepted   by   any  cemetery  authority  owning,
 5    operating,  controlling  or  managing  a  privately  operated
 6    cemetery, or by any trustee or licensee, agent  or  custodian
 7    for  the  same,  under Section 3 of this Act, and the amounts
 8    set aside under  Section  4  of  this  Act,  and  any  income
 9    accumulated therefrom, where legally so directed by the terms
10    of the transaction by which the principal was established.
11        "Cemetery"  means  any  land  or  structure in this State
12    dedicated to and used,  or  intended  to  be  used,  for  the
13    interment of human remains.
14        "Cemetery authority" means any person, firm, corporation,
15    trustee,  partnership,  association  or  municipality owning,
16    operating, controlling or  managing  a  cemetery  or  holding
17    lands for burial grounds or burial purposes in this State.
18        "Mausoleum  crypt"  means  a space in a mausoleum used or
19    intended to be used, above or under ground, to  entomb  human
20    remains.
21        "Family burying ground" means a cemetery in which no lots
22    are sold to the public and in which interments are restricted
23    to  a  group  of  persons  related  to each other by blood or
24    marriage.
25        "Fraternal cemetery" means a  cemetery  owned,  operated,
26    controlled,  or  managed  by  any  fraternal  organization or
27    auxiliary organizations thereof, in which the sale  of  lots,
28    graves,  crypts  or  niches  is restricted principally to its
29    members.
30        "Grave" means a space of ground in a cemetery,  used,  or
31    intended to be used, for burial.
32        "Investment  Company  Act of 1940" means Title 15, of the
33    United States Code, Sections 80a-1 to 80a-51,  inclusive,  as
34    amended.
                            -3-                LRB9008269NTsb
 1        "Investment   Company"   means   any   issuer  (a)  whose
 2    securities are purchasable only  with  care  funds  or  trust
 3    funds,  or  both;  and  (b)  which is an open and diversified
 4    management company as defined in  and  registered  under  the
 5    "Investment  Company  Act of 1940"; and (c) which has entered
 6    into  an  agreement  with  the  Comptroller  containing  such
 7    provisions  as  the  Comptroller  by  regulation   reasonably
 8    requires for the proper administration of this Act.
 9        "Municipal  cemetery"  means  a cemetery owned, operated,
10    controlled or managed  by  any  city,  village,  incorporated
11    town,  township,  county,  or  other  municipal  corporation,
12    political  subdivision, or instrumentality thereof authorized
13    by law to own, operate, or manage a cemetery.
14        "Niche" means a space in a columbarium used  or  intended
15    to be used, for inurnment of cremated human remains.
16        "Privately  operated  cemetery"  means  any  entity  that
17    offers  interment  rights,  entombment  rights  or inurnments
18    rights, other than a fraternal, municipal, State, federal  or
19    religious cemetery or a family burying ground.
20        "Religious  cemetery"  means  a cemetery owned, operated,
21    controlled, or managed by any  recognized  church,  religious
22    society,  association  or  denomination,  or  by any cemetery
23    authority or any corporation administering, or through  which
24    is  administered, the temporalities of any recognized church,
25    religious society, association or denomination.
26        "State or  federal  cemetery"  means  a  cemetery  owned,
27    operated,  controlled, or managed by any State or the federal
28    government or any political  subdivision  or  instrumentality
29    thereof.
30        "Entombment  right"  means  the right to place individual
31    human remains or  individual  cremated  human  remains  in  a
32    specific  mausoleum  crypt  or  lawn  crypt  selected  by the
33    consumer for use as a final resting place.
34        "Interment right" means the  right  to  place  individual
                            -4-                LRB9008269NTsb
 1    human  remains  or  cremated  human  remains  in  a  specific
 2    underground  location  selected  by the consumer for use as a
 3    final resting place.
 4        "Inurnment right" means the  right  to  place  individual
 5    cremated  human  remains  in a specific niche selected by the
 6    consumer for use as a final resting place.
 7        "Lawn crypt" means a permanent underground crypt  usually
 8    constructed   of  reinforced  concrete  or  similar  material
 9    installed in multiple  units  for  the  entombment  of  human
10    remains.
11        "Imputed  value"  means  the  retail  price of comparable
12    rights within the same or similar area of the cemetery.
13    (Source: P.A. 88-477.)
14        (760 ILCS 100/9) (from Ch. 21, par. 64.9)
15        Sec. 9. Application for license.
16        (a)  Whenever a  cemetery  authority  owning,  operating,
17    controlling  or  managing  a  privately  operated cemetery is
18    newly organized and such cemetery  authority  desires  to  be
19    licensed  to accept the care funds authorized by Section 3 of
20    this Act, or whenever there is a  sale  or  transfer  of  the
21    controlling  interest  of  a  licensed cemetery authority, it
22    shall make application for such license within 30 days.
23        In the case of a sale  or  transfer  of  the  controlling
24    interest  of  the cemetery authority, the prior license shall
25    remain in effect until the Comptroller issues a  new  license
26    to  the  newly-controlled  cemetery  authority as provided in
27    Section 15b.  Upon issuance of the  new  license,  the  prior
28    license  shall  be  deemed  surrendered  if  the licensee has
29    agreed to the sale and transfer  and  has  consented  to  the
30    surrender  of  the  license.   A  sale  or  transfer  of  the
31    controlling  interest of a cemetery authority to an immediate
32    family member is not considered a transfer of the controlling
33    interest for purposes of this Section.
                            -5-                LRB9008269NTsb
 1        (b)  Applications for license shall  be  filed  with  the
 2    Comptroller.  Applications  shall  be  in writing under oath,
 3    signed by the applicant, and in the  form  furnished  by  the
 4    Comptroller.   A  check  or money order in the amount of $25,
 5    payable  to:  Comptroller,  State  of  Illinois,   shall   be
 6    included.  Each application shall contain the following:
 7             (1)  the  full  name  and address (both of residence
 8        and of  place  of  business)  of  the  applicant,  if  an
 9        individual;  of  every  member,  if  the  applicant  is a
10        partnership or association;  of  every  officer,  if  the
11        applicant  is  a corporation, and of any party owning 10%
12        or more of the cemetery authority; and
13             (2)  a detailed statement of the applicant's  assets
14        and liabilities; and
15             (3)  as to the name of each individual person listed
16        under  (1)  above,  a detailed statement of each person's
17        business  experience  for  the   10   years   immediately
18        preceding  the  application;  the  present  and  previous
19        connection,  if  any,  of  each  person  with  any  other
20        cemetery  or  cemetery authority; whether each person has
21        ever been convicted of a felony  or  any  misdemeanor  of
22        which  an essential element is fraud or has been involved
23        in any civil litigation in  which  a  judgment  has  been
24        entered  against  him or her based on fraud; whether each
25        person is currently a defendant in any lawsuit  in  which
26        the  complaint  against  the  person is based upon fraud;
27        whether such person has failed to satisfy any enforceable
28        enforcible judgment  entered  by  a  court  of  competent
29        jurisdiction   in  any  civil  proceedings  against  such
30        individual; and
31             (4)  the total amount in  trust  and  now  available
32        from  sales  of lots, graves, crypts or niches where part
33        of the sale price has been placed in trust; the amount of
34        money placed in the care funds  of  each  applicant;  the
                            -6-                LRB9008269NTsb
 1        amount  set  aside  in  care funds from the sale of lots,
 2        graves, crypts and niches for the  general  care  of  the
 3        cemetery  and  the amount available for that purpose; the
 4        amount received in trust by special agreement for special
 5        care and the  amount  available  for  that  purpose;  the
 6        amount of principal applicable to trust funds received by
 7        the applicant.
 8        Such  information  shall  be  furnished  whether the care
 9    funds  are  held  by  the  applicant  as  trustee  or  by  an
10    independent trustee.  If  the  funds  are  not  held  by  the
11    applicant,  the  name of the independent trustee holding them
12    is also to be furnished by the applicant.
13        (c)  Applications for license shall also  be  accompanied
14    by  a  fidelity bond issued by a bonding company or insurance
15    company authorized to do business in  this  State  or  by  an
16    irrevocable,  unconditional letter of credit issued by a bank
17    or trust company authorized to do business in  the  State  of
18    Illinois,  as  approved  by the State Comptroller, where such
19    care funds exceed the sum of $15,000.  Such bond or letter of
20    credit shall run to the Comptroller and his or her  successor
21    for  the  benefit  of  the  care  funds held by such cemetery
22    authority or by  the  trustee  of  the  care  funds  of  such
23    cemetery authority.  Such bonds or letters of credit shall be
24    in an amount equal to 1/10 of such care funds.  However, such
25    bond  or letter of credit shall not be in an amount less than
26    $1,000; the first $15,000 of such care  funds  shall  not  be
27    considered  in computing the amount of such bond or letter of
28    credit.  No application shall be accepted by the  Comptroller
29    unless accompanied by such bond or letter of credit.
30        Applications  for  license  by  newly  organized cemetery
31    authorities after January 1, 1960 shall also  be  accompanied
32    by evidence of a minimum care fund deposit in an amount to be
33    determined  as  follows: if the number of inhabitants, either
34    in the county in which the cemetery is to be  located  or  in
                            -7-                LRB9008269NTsb
 1    the  area  included within a 10 mile radius from the cemetery
 2    if the number of inhabitants therein is greater, is 25,000 or
 3    less  the  deposit  shall  be  $7,500;  if  the   number   of
 4    inhabitants  is  25,001  to  50,000,  the  deposit  shall  be
 5    $10,000;  if  the number of inhabitants is 50,001 to 125,000,
 6    the deposit shall be $15,000; if the number of inhabitants is
 7    over 125,000, the deposit shall be $25,000.
 8        After an amount equal to and in addition to the  required
 9    minimum  care  fund  deposit has been deposited in trust, the
10    cemetery authority may withhold 50% of all future care  funds
11    until  it  has  recovered the amount of the minimum care fund
12    deposit.
13        (d)  The applicant shall have a permanent address and any
14    license issued pursuant to the application is valid  only  at
15    the   address   or   at  any  new  address  approved  by  the
16    Comptroller.
17        (e)  All bonds and bonding deposits made by any  cemetery
18    authority  may  be  returned  to  the  cemetery  authority or
19    cancelled as  to  care  funds  invested  with  an  investment
20    company.
21    (Source: P.A. 88-477; 89-615, eff. 8-9-96; revised 7-11-97.)

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