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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 2, 3, and 3a-5 as follows:
 
6    (225 ILCS 45/2)  (from Ch. 111 1/2, par. 73.102)
7    Sec. 2. (a) If a purchaser selects a trust arrangement to
8fund the pre-need contract, all trust deposits as determined by
9Section 1b shall be made within 30 days of receipt.
10    (b) A trust established under this Act must be maintained
11with a corporate fiduciary as defined in Section 1-5.05 of the
12Corporate Fiduciary Act or with a foreign corporate fiduciary
13recognized by Article IV of the Corporate Fiduciary Act.
14    (c) Trust agreements and amendments to the trust agreements
15used to fund a pre-need contract shall be filed with the
16Comptroller.
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

 

 

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

 

 

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

 

 

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

 

 

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1or letter of credit from the licensee from time to time in
2amounts equal to one-tenth of such trust funds, which bond or
3letter of credit shall run to the Comptroller for the use and
4benefit of the beneficiaries of such trust funds.
5    The licensee shall keep accurate accounts, books and
6records in this State, at the principal place of business
7identified in the licensee's license application or as
8otherwise approved by the Comptroller in writing, of all
9transactions, copies of all pre-need contracts, trust
10agreements, and other agreements, dates and amounts of payments
11made and accepted thereon, the names and addresses of the
12contracting parties, the persons for whose benefit such funds
13are accepted, and the names of the depositaries of such funds.
14Each licensee shall maintain the documentation for a period of
153 years after the licensee has fulfilled his obligations under
16the pre-need contract. Additionally, for a period not to exceed
176 months after the performance of all terms in a pre-need sales
18contract, the licensee shall maintain copies of the contract at
19the licensee branch location where the contract was entered or
20at some other location agreed to by the Comptroller in writing.
21If an insurance policy or tax-deferred annuity is used to fund
22the pre-need contract, the licensee under this Act shall keep
23and maintain accurate accounts, books, and records in this
24State, at the principal place of business identified in the
25licensee's application or as otherwise approved by the
26Comptroller in writing, of all insurance policies and

 

 

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1tax-deferred annuities used to fund the pre-need contract, the
2name and address of insured, annuitant, and initial
3beneficiary, and the name and address of the insurance company
4issuing the policy or annuity. If a life insurance policy or
5tax-deferred annuity is used to fund a pre-need contract, the
6licensee shall notify the insurance company of the name of each
7pre-need contract purchaser and the amount of each payment when
8the pre-need contract, insurance policy or annuity is
9purchased.
10    The licensee shall make reports to the Comptroller annually
11or at such other time as the Comptroller may require, on forms
12furnished by the Comptroller. The licensee shall file the
13annual report with the Comptroller within 75 days after the end
14of the licensee's fiscal year. The Comptroller shall for good
15cause shown grant an extension for the filing of the annual
16report upon the written request of the licensee. Such extension
17shall not exceed 60 days. If a licensee fails to submit an
18annual report to the Comptroller within the time specified in
19this Section, the Comptroller shall impose upon the licensee a
20penalty of $5 per day for the first 15 days past due, $10 per
21day for 16 through 30 days past due, $15 per day for 31 through
2245 days past due, and $20 per day for the 46th day and every day
23thereafter for each and every day the licensee remains
24delinquent in submitting the annual report. The Comptroller may
25abate all or part of the $5 daily penalty for good cause shown.
26Every application shall be accompanied by a check or money

 

 

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1order in the amount of $25 and every report shall be
2accompanied by a check or money order in the amount of $10
3payable to: Comptroller, State of Illinois.
4    The licensee shall make all required books and records
5pertaining to trust funds, insurance policies, or tax-deferred
6annuities available to the Comptroller for examination. The
7Comptroller, or a person designated by the Comptroller who is
8trained to perform such examinations, may at any time
9investigate the books, records and accounts of the licensee
10with respect to trust funds, insurance policies, or
11tax-deferred annuities and for that purpose may require the
12attendance of and examine under oath all persons whose
13testimony he may require. The licensee shall pay a fee for such
14examination in accordance with a schedule established by the
15Comptroller. The fee shall not exceed the cost of such
16examination. For pre-need contracts funded by trust
17arrangements, the cost of an initial examination shall be borne
18by the licensee if it has $10,000 or more in trust funds,
19otherwise, by the Comptroller. The charge made by the
20Comptroller for an examination shall be based upon the total
21amount of trust funds held by the licensee at the end of the
22calendar or fiscal year for which the report is required by
23this Act and shall be in accordance with the following
24schedule:
25Less than $10,000.................................no charge;
26$10,000 or more but less than $50,000...................$10;

 

 

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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    The Comptroller may order additional audits or
5examinations 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 Comptroller in the written order. The grounds for
10ordering these additional audits or examinations may include,
11but shall not be limited to:
12        (1) material and unverified changes or fluctuations in
13    trust balances or insurance or annuity policy amounts;
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, insurance policies, or annuity contracts in
18    violation of this Act; or
19        (4) failure to maintain or produce documentation
20    required by this Act for deposits into trust accounts,
21    trust investment activities, or life insurance or annuity
22    policies.
23    The licensee shall bear the full cost of that examination
24or audit, up to a maximum of $20,000. The Comptroller may elect
25to pay for the examination or audit and receive reimbursement
26from the licensee. Payment of the costs of the examination or

 

 

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1audit by a licensee shall be a condition of receiving,
2maintaining, or renewing a license under this Act. All moneys
3received by the Comptroller for examination or audit fees shall
4be maintained in a separate account to be known as the
5Comptroller's Administrative Fund. This Fund, subject to
6appropriation by the General Assembly, may be utilized by the
7Comptroller for enforcing this Act and other purposes that may
8be authorized by law.
9    For pre-need contracts funded by life insurance or a
10tax-deferred annuity, the cost of an examination shall be borne
11by the licensee. The fee schedule for such examination shall be
12established in rules promulgated by the Comptroller. In the
13event such investigation or other information received by the
14Comptroller discloses a substantial violation of the
15requirements of this Act, the Comptroller shall revoke the
16license of such person upon a hearing as provided in this Act.
17Such licensee may terminate all further responsibility for
18compliance with the requirements of this Act by voluntarily
19surrendering the license to the Comptroller, or in the event of
20its loss, furnishing the Comptroller with a sworn statement to
21that effect, which states the licensee's intention to
22discontinue acceptance of funds received under pre-need
23contracts. Such license or statement must be accompanied by an
24affidavit that said licensee has lawfully expended or refunded
25all funds received under pre-need contracts, and that the
26licensee will accept no additional sales proceeds. The

 

 

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1Comptroller shall immediately cancel or revoke said license.
2(Source: P.A. 96-879, eff. 2-2-10.)
 
3    (225 ILCS 45/3a-5)
4    Sec. 3a-5. License requirements.
5    (a) Every license issued by the Comptroller shall state the
6number of the license, the business name and address of the
7licensee's principal place of business, each branch location
8also operating under the license, and the licensee's parent
9company, if any. The license shall be conspicuously posted in
10each place of business operating under the license. The
11Comptroller may issue such additional licenses as may be
12necessary for licensee branch locations upon compliance with
13the provisions of this Act governing an original issuance of a
14license for each new license.
15    (b) Individual salespersons representing a licensee shall
16not be required to obtain licenses in their individual
17capacities, but must acknowledge, by affidavit, that they have
18been provided with a copy of and have read this Act. The
19licensee shall retain copies of the affidavits of its sellers
20for its records and shall make the affidavits available to the
21Comptroller for examination upon request.
22    (c) The licensee shall be responsible for the activities of
23any person representing the licensee in selling or offering a
24pre-need contract for sale.
25    (d) Any person not selling on behalf of a licensee shall

 

 

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1obtain its own license.
2    (e) No license shall be transferable or assignable without
3the express written consent of the Comptroller. A transfer of
4more than 50% of the ownership of any business licensed
5hereunder shall be deemed to be an attempted assignment of the
6license originally issued to the licensee for which consent of
7the Comptroller shall be required.
8    (f) Every license issued hereunder shall be renewed every 5
9years for a renewal fee of $100. The renewal fee shall be
10deposited into the Comptroller's Administrative Fund remain in
11force until it has been suspended, surrendered, or revoked in
12accordance with this Act. The Comptroller, upon the request of
13an interested person or on his own motion, may issue new
14licenses to a licensee whose license or licenses have been
15revoked, if no factor or condition then exists which would have
16warranted the Comptroller to originally refuse the issuance of
17such license.
18(Source: P.A. 92-419, eff. 1-1-02.)
 
19    Section 10. The Cemetery Oversight Act is amended by
20changing Sections 15-15, 15-40, and 75-55 as follows:
 
21    (225 ILCS 411/15-15)
22    (Section scheduled to be repealed on January 1, 2021)
23    Sec. 15-15. Care funds; deposits; investments.
24    (a) Whenever a cemetery authority accepts care funds,

 

 

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1either in connection with the sale or giving away at an imputed
2value of an interment right, entombment right, or inurnment
3right, or in pursuance of a contract, or whenever, as a
4condition precedent to the purchase or acceptance of an
5interment right, entombment right, or inurnment right, such
6cemetery authority shall establish a care fund or deposit the
7funds in an already existing care fund.
8    (b) The cemetery authority shall execute and deliver to the
9person from whom it received the care funds an instrument in
10writing that shall specifically state: (i) the nature and
11extent of the care to be furnished and (ii) that such care
12shall be furnished only in so far as net income derived from
13the amount deposited in trust will permit (the income from the
14amount so deposited, less necessary expenditures of
15administering the trust, shall be deemed the net income).
16    (c) The setting-aside and deposit of care funds shall be
17made by such cemetery authority no later than 30 days after the
18close of the month in which the cemetery authority gave away
19for an imputed value or received the final payment on the
20purchase price of interment rights, entombment rights, or
21inurnment rights, or received the final payment for the general
22or special care of a lot, grave, crypt, or niche or of a family
23mausoleum, memorial, marker, or monument, and such amounts
24shall be held by the trustee of the care funds of such cemetery
25authority in trust and in perpetuity for the specific purposes
26stated in the written instrument described in subsection (b).

 

 

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1For all care funds received by a cemetery authority, except for
2care funds received by a cemetery authority pursuant to a
3specific gift, grant, contribution, payment, legacy, or
4contract that are subject to investment restrictions more
5restrictive than the investment provisions set forth in this
6Act, and except for care funds otherwise subject to a trust
7agreement executed by a person or persons responsible for
8transferring the specific gift, grant, contribution, payment,
9or legacy to the cemetery authority that contains investment
10restrictions more restrictive than the investment provisions
11set forth in this Act, the cemetery authority may, without the
12necessity of having to obtain prior approval from any court in
13this State, designate a new trustee in accordance with this Act
14and invest the care funds in accordance with this Section,
15notwithstanding any contrary limitation contained in the trust
16agreement.
17    (d) Any cemetery authority engaged in selling or giving
18away at an imputed value interment rights, entombment rights,
19or inurnment rights, in conjunction with the selling or giving
20away at an imputed value any other merchandise or services not
21covered by this Act, shall be prohibited from increasing the
22sales price or imputed value of those items not requiring a
23care fund deposit under this Act with the purpose of allocating
24a lesser sales price or imputed value to items that require a
25care fund deposit.
26    (e) If any sale that requires a deposit to a cemetery

 

 

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1authority's care fund is made by a cemetery authority on an
2installment basis, and the installment contract is factored,
3discounted, or sold to a third party, then the cemetery
4authority shall deposit the amount due to the care fund within
530 days after the close of the month in which the installment
6contract was factored, discounted, or sold. If, subsequent to
7such deposit, the purchaser defaults on the contract such that
8no care fund deposit on that contract would have been required,
9then the cemetery authority may apply the amount deposited as a
10credit against future required deposits.
11    (f) The trust authorized by this Section shall be a single
12purpose trust fund. In the event of the cemetery authority's
13bankruptcy, insolvency, or assignment for the benefit of
14creditors, or an adverse judgment, the trust funds shall not be
15available to any creditor as assets of the cemetery authority
16or to pay any expenses of any bankruptcy or similar proceeding,
17but shall be retained intact to provide for the future
18maintenance of the cemetery. Except in an action by the
19Department to revoke a license issued pursuant to this Act and
20for creation of a receivership as provided in this Act, the
21trust shall not be subject to judgment, execution, garnishment,
22attachment, or other seizure by process in bankruptcy or
23otherwise, nor to sale, pledge, mortgage, or other alienation,
24and shall not be assignable except as approved by the
25Comptroller Department.
26(Source: P.A. 96-863, eff. 3-1-10.)
 

 

 

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1    (225 ILCS 411/15-40)
2    (Section scheduled to be repealed on January 1, 2021)
3    Sec. 15-40. Trust examinations and audits.
4    (a) The Comptroller Department shall examine at least
5annually every licensee who holds $250,000 or more in its care
6funds. For that purpose, the Comptroller Department shall have
7free access to the office and places of business and to such
8records of all licensees and of all trustees of the care funds
9of all licensees as shall relate to the acceptance, use, and
10investment of care funds. The Comptroller Department may
11require the attendance of and examine under oath all persons
12whose testimony may be required relative to such business. In
13such cases the Comptroller Department, or any qualified
14representative of the Comptroller Department whom the
15Comptroller Department may designate, may administer oaths to
16all such persons called as witnesses, and the Comptroller
17Department, or any such qualified representative of the
18Comptroller Department, may conduct such examinations. The
19cost of an initial examination shall be determined by rule.
20    (b) The Comptroller Department may order additional audits
21or examinations as it may deem necessary or advisable to ensure
22the safety and stability of the trust funds and to ensure
23compliance with this Act. These additional audits or
24examinations shall only be made after good cause is established
25by the Comptroller Department in the written order. The grounds

 

 

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1for ordering these additional audits or examinations may
2include, but shall not be limited to:
3        (1) material and unverified changes or fluctuations in
4    trust balances;
5        (2) the licensee changing trustees more than twice in
6    any 12-month period;
7        (3) any withdrawals or attempted withdrawals from the
8    trusts in violation of this Act; or
9        (4) failure to maintain or produce documentation
10    required by this Act.
11(Source: P.A. 96-863, eff. 3-1-10.)
 
12    (225 ILCS 411/75-55)
13    (Section scheduled to be repealed on January 1, 2021)
14    Sec. 75-55. Transition.
15    (a) Within 60 days after the effective date of this Act,
16the Comptroller shall provide the Department copies of records
17in the Comptroller's possession pertaining to the Cemetery Care
18Act and the Crematory Regulation Act that are necessary for the
19Department's immediate responsibilities under this Act. All
20other records pertaining to the Cemetery Care Act with the
21exception of records pertaining to care funds and the Crematory
22Regulation Act shall be transferred to the Department by March
231, 2012. In the case of records that pertain both to the
24administration of the Cemetery Care Act or the Crematory
25Regulation Act and to a function retained by the Comptroller,

 

 

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1the Comptroller, in consultation with the Department, shall
2determine, within 60 days after the repeal of the Cemetery Care
3Act, whether the records shall be transferred, copied, or left
4with the Comptroller; until this determination has been made
5the transfer shall not occur.
6    (b) (Blank). A person licensed under one of the Acts listed
7in subsection (a) of this Section or regulated under the
8Cemetery Association Act shall continue to comply with the
9provisions of those Acts until such time as the person is
10licensed under this Act or those Acts are repealed or the
11amendatory changes made by this amendatory Act of the 96th
12General Assembly take effect, as the case may be, whichever is
13earlier.
14    (c) To support the costs that may be associated with
15implementing and maintaining a licensure and regulatory
16process for the licensure and regulation of cemetery
17authorities, cemetery managers, customer service employees,
18and cemetery workers, all cemetery authorities not maintaining
19a full exemption or partial exemption shall pay a one-time fee
20of $20 to the Department plus an additional charge of $1 per
21burial unit per year within the cemetery. The Department may
22establish forms for the collection of the fee established under
23this subsection and shall deposit such fee into the Cemetery
24Oversight Licensing and Disciplinary Fund. The Department may
25begin to collect the aforementioned fee after the effective
26date of this Act. In addition, the Department may establish

 

 

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1rules for the collection process, which may include, but shall
2not be limited to, dates, forms, enforcement, or other
3procedures necessary for the effective collection, deposit,
4and overall process regarding this Section.
5    (d) Any cemetery authority that fails to pay to the
6Department the required fee or submits the incorrect amount
7shall be subject to the penalties provided for in Section
825-110 of this Act.
9    (e) Except as otherwise specifically provided, all fees,
10fines, penalties, or other moneys received or collected
11pursuant to this Act shall be deposited in the Cemetery
12Oversight Licensing and Disciplinary Fund.
13    (f) (Blank). All proportionate funds held in the
14Comptroller's Administrative Fund related to unexpended moneys
15collected under the Cemetery Care Act and the Crematory
16Regulation Act shall be transferred to the Cemetery Oversight
17Licensing and Disciplinary Fund within 60 days after the
18effective date of the repeal of the Cemetery Care Act.
19    (g) (Blank). Personnel employed by the Comptroller on
20February 29, 2012, to perform the duties pertaining to the
21administration of the Cemetery Care Act and the Crematory
22Regulation Act, are transferred to the Department on March 1,
232012.
24    The rights of State employees, the State, and its agencies
25under the Comptroller Merit Employment Code and applicable
26collective bargaining agreements and retirement plans are not

 

 

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1affected under this Act, except that all positions transferred
2to the Department shall be subject to the Personnel Code
3effective March 1, 2012.
4    All transferred employees who are members of collective
5bargaining units shall retain their seniority, continuous
6service, salary, and accrued benefits. During the pendency of
7the existing collective bargaining agreement, the rights
8provided for under that agreement shall not be abridged.
9    The Department shall continue to honor during their
10pendency all bargaining agreements in effect at the time of the
11transfer and to recognize all collective bargaining
12representatives for the employees who perform or will perform
13functions transferred by this Act. For all purposes with
14respect to the management of the existing agreement and the
15negotiation and management of any successor agreements, the
16Department shall be deemed the employer of employees who
17perform or will perform functions transferred to the Department
18by this Act.
19(Source: P.A. 96-863, eff. 3-1-10.)
 
20    Section 15. The Illinois Pre-Need Cemetery Sales Act is
21amended by changing Sections 6, 8, 15, and 20 as follows:
 
22    (815 ILCS 390/6)  (from Ch. 21, par. 206)
23    Sec. 6. License application.
24    (a) An application for a license shall be made in writing

 

 

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1to the Comptroller on forms prescribed by him or her, signed by
2the applicant under oath verified by a notary public, and
3accompanied by a non-returnable $125 $25 application fee, $100
4of which shall be deposited into the Comptroller's
5Administrative Fund. The Comptroller may prescribe abbreviated
6application forms for persons holding a license under the
7Cemetery Care Act. Applications (except abbreviated
8applications) must include at least the following information:
9        (1) The full name and address, both residence and
10    business, of the applicant if the applicant is an
11    individual; of every member if applicant is a partnership;
12    of every member of the Board of Directors if applicant is
13    an association; and of every officer, director and
14    shareholder holding more than 10% of the corporate stock if
15    applicant is a corporation;
16        (2) A detailed statement of applicant's assets and
17    liabilities;
18        (2.1) The name and address of the applicant's principal
19    place of business at which the books, accounts, and records
20    are available for examination by the Comptroller as
21    required by this Act;
22        (2.2) The name and address of the applicant's branch
23    locations at which pre-need sales will be conducted and
24    which will operate under the same license number as the
25    applicant's principal place of business;
26        (3) For each individual listed under (1) above, a

 

 

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1    detailed statement of the individual's business experience
2    for the 10 years immediately preceding the application; any
3    present or prior connection between the individual and any
4    other person engaged in pre-need sales; any felony or
5    misdemeanor convictions for which fraud was an essential
6    element; any charges or complaints lodged against the
7    individual for which fraud was an essential element and
8    which resulted in civil or criminal litigation; any failure
9    of the individual to satisfy an enforceable judgment
10    entered against him or her based upon fraud; and any other
11    information requested by the Comptroller relating to the
12    past business practices of the individual. Since the
13    information required by this paragraph may be confidential
14    or contain proprietary information, this information shall
15    not be available to other licensees or the general public
16    and shall be used only for the lawful purposes of the
17    Comptroller in enforcing this Act;
18        (4) The name of the trustee and, if applicable, the
19    names of the advisors to the trustee, including a copy of
20    the proposed trust agreement under which the trust funds
21    are to be held as required by this Act;
22        (5) Where applicable, the name of the corporate surety
23    company providing the performance bond for the
24    construction of undeveloped spaces and a copy of the bond;
25    and
26        (6) Such other information as the Comptroller may

 

 

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1    reasonably require in order to determine the qualification
2    of the applicant to be licensed under this Act.
3    (b) Applications for license shall be accompanied by a
4fidelity bond executed by the applicant and a security company
5authorized to do business in this State in such amount, not
6exceeding $10,000, as the Comptroller may require. The
7Comptroller may require additional bond from time to time in
8amounts equal to one-tenth of such trust funds but not to
9exceed $100,000, which bond shall run to the Comptroller for
10the use and benefit of the beneficiaries of such trust funds.
11Such licensee may by written permit of the Comptroller be
12authorized to operate without additional bond, except such
13fidelity bond as may be required by the Comptroller for the
14protection of the licensee against loss by default by any of
15its employees engaged in the handling of trust funds.
16    (c) Any application not acted upon within 90 days may be
17deemed denied.
18(Source: P.A. 92-419, eff. 1-1-02.)
 
19    (815 ILCS 390/8)  (from Ch. 21, par. 208)
20    Sec. 8. (a) Every license issued by the Comptroller shall
21state the number of the license, the business name and address
22of the licensee's principal place of business, each branch
23location also operating under the license, and the licensee's
24parent company, if any. The license shall be conspicuously
25posted in each place of business operating under the license.

 

 

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1The Comptroller may issue additional licenses as may be
2necessary for license branch locations upon compliance with the
3provisions of this Act governing an original issuance of a
4license for each new license.
5    (b) Individual salespersons representing a licensee shall
6not be required to obtain licenses in their individual
7capacities but must acknowledge, by affidavit, that they have
8been provided a copy of and have read this Act. The licensee
9must retain copies of the affidavits of its salespersons for
10its records and must make the affidavits available to the
11Comptroller for examination upon request.
12    (c) The licensee shall be responsible for the activities of
13any person representing the licensee in selling or offering a
14pre-need contract for sale.
15    (d) Any person not selling on behalf of a licensee shall be
16required to obtain his or her own license.
17    (e) Any person engaged in pre-need sales, as defined
18herein, prior to the effective date of this Act may continue
19operations until the application for license under this Act is
20denied; provided that such person shall make application for a
21license within 60 days of the date that application forms are
22made available by the Comptroller.
23    (f) No license shall be transferable or assignable without
24the express written consent of the Comptroller. A transfer of
25more than 50% of the ownership of any business licensed
26hereunder shall be deemed to be an attempted assignment of the

 

 

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1license originally issued to the licensee for which consent of
2the Comptroller shall be required.
3    (g) Every license issued hereunder shall be renewed every 5
4years for a fee of $100. The renewal fee shall be deposited
5into the Comptroller's Administrative Fund. The remain in force
6until the same has been suspended, surrendered or revoked in
7accordance with this Act, but the Comptroller, upon the request
8of an interested person or on his own motion, may issue new
9licenses to a licensee whose license or licenses have been
10revoked, if no factor or condition then exists which would have
11warranted the Comptroller in refusing originally the issuance
12of such license.
13(Source: P.A. 92-419, eff. 1-1-02.)
 
14    (815 ILCS 390/15)  (from Ch. 21, par. 215)
15    Sec. 15. (a) Whenever a seller receives anything of value
16under a pre-need sales contract, the person receiving such
17value shall deposit 50% of all proceeds received into one or
18more trust funds maintained pursuant to this Section, except
19that, in the case of proceeds received for the purchase of
20outer burial containers, 85% of the proceeds shall be deposited
21into one or more trust funds. Such deposits shall be made until
22the amount deposited in trust equals 50% of the sales price of
23the cemetery merchandise, cemetery services and undeveloped
24spaces included in such contract, except that, in the case of
25deposits for outer burial containers, deposits shall be made

 

 

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1until the amount deposited in trust equals 85% of the sales
2price. In the event an installment contract is factored,
3discounted or sold to a third party, the seller shall deposit
4an amount equal to 50% of the sales price of the installment
5contract, except that, for the portion of the contract
6attributable to the sale of outer burial containers, the seller
7shall deposit an amount equal to 85% of the sales price.
8Proceeds required to be deposited in trust which are
9attributable to cemetery merchandise and cemetery services
10shall be held in a "Cemetery Merchandise Trust Fund". Proceeds
11required to be deposited in trust which are attributable to the
12sale of undeveloped interment, entombment or inurnment spaces
13shall be held in a "Pre-construction Trust Fund". If
14merchandise is delivered for storage in a bonded warehouse, as
15authorized herein, and payment of transportation or other
16charges totaling more than $20 will be required in order to
17secure delivery to the site of ultimate use, upon such delivery
18to the warehouse the seller shall deposit to the trust fund the
19full amount of the actual or estimated transportation charge.
20Transportation charges which have been prepaid by the seller
21shall not be deposited to trust funds maintained pursuant to
22this Section. As used in this Section, "all proceeds" means the
23entire amount paid by a purchaser in connection with a pre-need
24sales contract, including finance charges and Cemetery Care Act
25contributions, but excluding sales taxes and credit life
26insurance premiums.

 

 

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1    (b) The seller shall act as trustee of all amounts received
2for cemetery merchandise, services, or undeveloped spaces
3until those amounts have been deposited into the trust fund.
4All trust deposits required by this Act shall be made within 30
5days following the end of the month of receipt. The seller must
6retain a corporate fiduciary as an independent trustee for any
7amount of trust funds. Upon 30 days' prior written notice from
8the seller to the Comptroller, the seller may change the
9trustee of the trust fund. Failure to provide the Comptroller
10with timely prior notice is an intentional violation of this
11Act.
12    (c) A trust established under this Act must be maintained
13with a corporate fiduciary as defined in Section 1-5.05 of the
14Corporate Fiduciary Act or with a foreign corporate fiduciary
15recognized by Article IV of the Corporate Fiduciary Act.
16    (d) Funds deposited in the trust account shall be
17identified in the records of the seller by the name of the
18purchaser. Nothing shall prevent the trustee from commingling
19the deposits in any such trust fund for purposes of the
20management thereof and the investment of funds therein as
21provided in the "Common Trust Fund Act", approved June 24,
221949, as amended. In addition, multiple trust funds maintained
23pursuant to this Act may be commingled or commingled with other
24funeral or burial related trust funds, provided that all record
25keeping requirements imposed by or pursuant to law are met.
26    (e) In lieu of a pre-construction trust fund, a seller of

 

 

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1undeveloped interment, entombment or inurnment spaces may
2obtain and file with the Comptroller a performance bond in an
3amount at least equal to 50% of the sales price of the
4undeveloped spaces or the estimated cost of completing
5construction, whichever is greater. The bond shall be
6conditioned on the satisfactory construction and completion of
7the undeveloped spaces as required in Section 19 of this Act.
8    Each bond obtained under this Section shall have as surety
9thereon a corporate surety company incorporated under the laws
10of the United States, or a State, the District of Columbia or a
11territory or possession of the United States. Each such
12corporate surety company must be authorized to provide
13performance bonds as required by this Section, have paid-up
14capital of at least $250,000 in cash or its equivalent and be
15able to carry out its contracts. Each pre-need seller must
16provide to the Comptroller, for each corporate surety company
17such seller utilizes, a statement of assets and liabilities of
18the corporate surety company sworn to by the president and
19secretary of the corporation by January 1 of each year.
20    The Comptroller shall prohibit pre-need sellers from doing
21new business with a corporate surety company if the company is
22insolvent or is in violation of this Section. In addition the
23Comptroller may direct a pre-need seller to reinstate a
24pre-construction trust fund upon the Comptroller's
25determination that the corporate surety company no longer is
26sufficient security.

 

 

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1    All performance bonds issued pursuant to this Section must
2be irrevocable during the statutory term for completing
3construction specified in Section 19 of this Act, unless
4terminated sooner by the completion of construction.
5    (f) Whenever any pre-need contract shall be entered into
6and include 1) items of cemetery merchandise and cemetery
7services, and 2) rights to interment, inurnment or entombment
8in completed spaces without allocation of the gross sale price
9among the items sold, the application of payments received
10under the contract shall be allocated, first to the right to
11interment, inurnment or entombment, second to items of cemetery
12merchandise and cemetery services, unless some other
13allocation is clearly provided in the contract.
14    (g) Any person engaging in pre-need sales who enters into a
15combination sale which involves the sale of items covered by a
16trust or performance bond requirement and any item not covered
17by any entrustment or bond requirement, shall be prohibited
18from increasing the gross sales price of those items not
19requiring entrustment with the purpose of allocating a lesser
20gross sales price to items which require a trust deposit or a
21performance bond.
22(Source: P.A. 96-879, eff. 2-2-10.)
 
23    (815 ILCS 390/20)  (from Ch. 21, par. 220)
24    Sec. 20. Records.
25    (a) Each licensee must keep accurate accounts, books and

 

 

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

 

 

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1        (3) An accounting at the end of each fiscal year, of
2    the total amount of principal and earnings held.
3    (d) The annual report shall be filed by the licensee with
4the Comptroller within 75 days after the end of the licensee's
5fiscal year. An extension of up to 60 days may be granted by
6the Comptroller, upon a showing of need by the licensee. Any
7other reports shall be in the form furnished or specified by
8the Comptroller. If a licensee fails to submit an annual report
9to the Comptroller within the time specified in this Section,
10the Comptroller shall impose upon the licensee a penalty of $5
11per day for the first 15 days past due, $10 per day for 16
12through 30 days past due, $15 per day for 31 through 45 days
13past due, and $20 per day for the 46th day and every day
14thereafter for each and every day the licensee remains
15delinquent in submitting the annual report. The 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: Comptroller, State of Illinois.
19    (e) On and after the effective date of this amendatory Act
20of the 91st General Assembly, a licensee may report all
21required information concerning the sale of outer burial
22containers on the licensee's annual report required to be filed
23under this Act and shall not be required to report that
24information under the Illinois Funeral or Burial Funds Act, as
25long as the information is reported under this Act.
26(Source: P.A. 91-7, eff. 1-1-00; 92-419, eff. 1-1-02.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.