Public Act 90-0623 of the 90th General Assembly

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Public Act 90-0623

SB1244 Enrolled                                LRB9008269NTsb

    AN ACT  to  amend  the  Cemetery  Care  Act  by  changing
Sections 2 and 15b.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Cemetery Care Act is amended by  changing
Sections 2 and 15b as follows:

    (760 ILCS 100/2) (from Ch. 21, par. 64.2)
    Sec.  2.  Definitions.  The  following  words,  terms and
phrases used in this Act, for the purpose of this  Act,  have
the following meanings:
    "Person"  means  any  person,  partnership,  association,
corporation, or other entity.
    "Trustee" means any person authorized to hold funds under
this Act.
    "Comptroller"  means  the  Comptroller  of  the  State of
Illinois.
    "Care" means the maintenance of a  cemetery  and  of  the
lots,  graves,  crypts, niches, family mausoleums, memorials,
and markers therein; including: (i) the cutting and  trimming
of  lawn,  shrubs,  and  trees  at reasonable intervals; (ii)
keeping in repair the drains, water lines, roads,  buildings,
fences,   and  other  structures,  in  keeping  with  a  well
maintained cemetery; (iii) also  overhead  expense  necessary
for such purposes, including maintenance of machinery, tools,
and  equipment for such care; (iv) compensation of employees,
payment of insurance premiums, and  reasonable  payments  for
employees  pension  and  other benefits plans; and (v) to the
extent surplus income from the care fund  is  available,  the
payment of overhead expenses necessary for such purposes, and
for   maintaining   necessary   records   of  lot  ownership,
transfers, and burials.
    "Care funds" as distinguished from receipts  from  annual
charges or gifts for current or annual care, means any realty
or  personalty  impressed  with  a  trust by the terms of any
gift, grant, contribution, payment, legacy,  or  pursuant  to
contract,   accepted   by   any  cemetery  authority  owning,
operating,  controlling  or  managing  a  privately  operated
cemetery, or by any trustee or licensee, agent  or  custodian
for  the  same,  under Section 3 of this Act, and the amounts
set aside under  Section  4  of  this  Act,  and  any  income
accumulated therefrom, where legally so directed by the terms
of the transaction by which the principal was established.
    "Cemetery"  means  any  land  or  structure in this State
dedicated to and used,  or  intended  to  be  used,  for  the
interment of human remains.
    "Cemetery authority" means any person, firm, corporation,
trustee,  partnership,  association  or  municipality owning,
operating, controlling or  managing  a  cemetery  or  holding
lands for burial grounds or burial purposes in this State.
    "Mausoleum  crypt"  means  a space in a mausoleum used or
intended to be used, above or under ground, to  entomb  human
remains.
    "Family burying ground" means a cemetery in which no lots
are sold to the public and in which interments are restricted
to  a  group  of  persons  related  to each other by blood or
marriage.
    "Fraternal cemetery" means a  cemetery  owned,  operated,
controlled,  or  managed  by  any  fraternal  organization or
auxiliary organizations thereof, in which the sale  of  lots,
graves,  crypts  or  niches  is restricted principally to its
members.
    "Grave" means a space of ground in a cemetery,  used,  or
intended to be used, for burial.
    "Investment  Company  Act of 1940" means Title 15, of the
United States Code, Sections 80a-1 to 80a-51,  inclusive,  as
amended.
    "Investment   Company"   means   any   issuer  (a)  whose
securities are purchasable only  with  care  funds  or  trust
funds,  or  both;  and  (b)  which is an open and diversified
management company as defined in  and  registered  under  the
"Investment  Company  Act of 1940"; and (c) which has entered
into  an  agreement  with  the  Comptroller  containing  such
provisions  as  the  Comptroller  by  regulation   reasonably
requires for the proper administration of this Act.
    "Municipal  cemetery"  means  a cemetery owned, operated,
controlled or managed  by  any  city,  village,  incorporated
town,  township,  county,  or  other  municipal  corporation,
political  subdivision, or instrumentality thereof authorized
by law to own, operate, or manage a cemetery.
    "Niche" means a space in a columbarium used  or  intended
to be used, for inurnment of cremated human remains.
    "Privately  operated  cemetery"  means  any  entity  that
offers  interment  rights,  entombment  rights  or inurnments
rights, other than a fraternal, municipal, State, federal  or
religious cemetery or a family burying ground.
    "Religious  cemetery"  means  a cemetery owned, operated,
controlled, or managed by any  recognized  church,  religious
society,  association  or  denomination,  or  by any cemetery
authority or any corporation administering, or through  which
is  administered, the temporalities of any recognized church,
religious society, association or denomination.
    "State or  federal  cemetery"  means  a  cemetery  owned,
operated,  controlled, or managed by any State or the federal
government or any political  subdivision  or  instrumentality
thereof.
    "Entombment  right"  means  the right to place individual
human remains or  individual  cremated  human  remains  in  a
specific  mausoleum  crypt  or  lawn  crypt  selected  by the
consumer for use as a final resting place.
    "Interment right" means the  right  to  place  individual
human  remains  or  cremated  human  remains  in  a  specific
underground  location  selected  by the consumer for use as a
final resting place.
    "Inurnment right" means the  right  to  place  individual
cremated  human  remains  in a specific niche selected by the
consumer for use as a final resting place.
    "Lawn crypt" means a permanent underground crypt  usually
constructed   of  reinforced  concrete  or  similar  material
installed in multiple  units  for  the  entombment  of  human
remains.
    "Imputed  value"  means  the  retail  price of comparable
rights within the same or similar area of the cemetery.
(Source: P.A. 88-477.)

    (760 ILCS 100/15b)
    Sec. 15b.  Sales; liability of purchaser for shortage.
    In the case of a sale of any privately operated  cemetery
or  any part thereof or of any related personal property by a
cemetery authority to a purchaser or pursuant to  foreclosure
proceedings,  except  the sale of burial rights, services, or
merchandise to a person for his or  her  personal  or  family
burial   or  interment,  the  purchaser  is  liable  for  any
shortages existing before or after the sale in the care funds
required to be maintained in a trust pursuant to this Act and
shall honor all instruments issued under Section 4  for  that
cemetery. Any shortages existing in the care funds constitute
a prior lien in favor of the trust for the total value of the
shortages,  and  notice of such lien shall be provided in all
sales instruments.
    In  the  event  of  a  sale  or  transfer   of   all   or
substantially  all  of  the assets of the cemetery authority,
the sale or transfer  of  the  controlling  interest  of  the
corporate  stock  of  the  cemetery authority if the cemetery
authority is a corporation, or the sale or  transfer  of  the
controlling of the partnership if the cemetery authority is a
partnership,  the  cemetery authority shall, at least 21 days
prior to the sale or transfer,  notify  the  Comptroller,  in
writing,  of  the  pending  date of sale or transfer so as to
permit the Comptroller to audit the books and records of  the
cemetery  authority.   The  audit  must be commenced within 5
business  days  of  the  receipt  of  the  notification   and
completed  within  the  21 day notification period unless the
Comptroller  notifies  the  cemetery  authority  during  that
period that there is a basis  for  determining  a  deficiency
which  will require additional time to finalize.  The sale or
transfer may not  be  completed  by  the  cemetery  authority
unless and until:
         (a)  The  Comptroller has completed the audit of the
    cemetery authority's books and records;
         (b)  Any delinquency existing in the care funds  has
    been  paid  by  the  cemetery  authority, or arrangements
    satisfactory to the Comptroller have  been  made  by  the
    cemetery  authority  on  the  sale  or  transfer  for the
    payment of any delinquency;
         (c)  The Comptroller  issues  a  new  cemetery  care
    license   upon   application   of  the  newly  controlled
    corporation or partnership, which license must be applied
    for within 30 days of the anticipated date of the sale or
    transfer, subject to the payment of any delinquencies, if
    any, as stated in item (b) above.
    For  purposes  of   this   Section,   a   person,   firm,
corporation,  partnership,  or  institution that acquires the
cemetery through a real estate foreclosure shall  be  subject
to  the  provisions of this Section.  The sale or transfer of
the controlling  interest  of  a  cemetery  authority  to  an
immediate  family  member  is  not  subject  to  the  license
application process required in item (c) of this Section.
(Source: P.A. 88-477.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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