Full Text of HB4436 101st General Assembly
HB4436 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4436 Introduced 2/3/2020, by Rep. Fred Crespo SYNOPSIS AS INTRODUCED: |
| 760 ILCS 100/2 | from Ch. 21, par. 64.2 | 760 ILCS 100/3 | from Ch. 21, par. 64.3 |
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Amends the Cemetery Care Act. Provides that the net income of a cemetery authority does not include any capital gains from the investment of any gift, grant, contribution, payment, legacy, or sum of money, funds, securities, or property of any kind given to it for the care of its cemetery or any lot, grace, crypt, or niche in its cemetery or the special care of any lot, grave, crypt, or niche or family mausoleum or memorial, marker, or monument in its cemetery. Effective immediately.
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| | A BILL FOR |
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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 changing | 5 | | Sections 2 and 3 as follows:
| 6 | | (760 ILCS 100/2) (from Ch. 21, par. 64.2)
| 7 | | Sec. 2. Definitions. The following words, terms and phrases | 8 | | used in this
Act, for the purpose of this Act, have the | 9 | | following meanings:
| 10 | | "Person" means any person, partnership, association, | 11 | | corporation, or other
entity.
| 12 | | "Trustee" means any person authorized to hold funds under | 13 | | this Act.
| 14 | | "Capital gains" means a profit that results from a | 15 | | disposition of a capital asset, such as stock, bonds, or real | 16 | | estate, where the amount realized on the disposition exceeds | 17 | | the purchase price. | 18 | | "Comptroller" means the Comptroller of the State of | 19 | | Illinois.
| 20 | | "Care" means the maintenance of a cemetery and of the lots, | 21 | | graves, crypts,
niches, family mausoleums, memorials, and | 22 | | markers therein; including: (i)
the cutting
and trimming of | 23 | | lawn, shrubs, and trees at reasonable intervals; (ii)
keeping |
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| 1 | | in repair the drains, water lines, roads, buildings, fences, | 2 | | and
other structures, in keeping with a well maintained | 3 | | cemetery; (iii) maintenance of
machinery, tools, and equipment | 4 | | for such care; (iv) compensation of
employees, payment of | 5 | | insurance premiums, and reasonable payments for
employees
| 6 | | pension and other benefits plans; and (v) to the extent surplus | 7 | | income from
the
care fund is available, the payment of overhead | 8 | | expenses necessary for such
purposes and for maintaining | 9 | | necessary records of lot
ownership, transfers, and burials.
| 10 | | "Care funds" as distinguished from receipts from annual | 11 | | charges or gifts
for current or annual care, means any realty | 12 | | or personalty impressed with a
trust by the terms of any gift, | 13 | | grant, contribution, payment, legacy,
or pursuant to contract, | 14 | | accepted by any cemetery authority
owning, operating, | 15 | | controlling or managing a privately operated cemetery,
or by | 16 | | any trustee or licensee, agent or custodian for the same, under
| 17 | | Section 3 of this Act, and the amounts set aside under Section | 18 | | 4 of this
Act, and any income accumulated therefrom, where | 19 | | legally so directed by the
terms of the transaction by which | 20 | | the principal was established.
| 21 | | "Cemetery" means any land or structure in this State | 22 | | dedicated to and
used, or intended to be used, for the | 23 | | interment of human remains.
| 24 | | "Cemetery authority" means any person, firm, corporation, | 25 | | trustee,
partnership, association or municipality owning, | 26 | | operating, controlling or
managing a cemetery or holding lands |
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| 1 | | for burial grounds or burial purposes
in this State.
| 2 | | "Mausoleum crypt" means a space in a mausoleum used or | 3 | | intended to be
used, above or under ground, to entomb human | 4 | | remains.
| 5 | | "Family burying ground" means a cemetery in which no lots | 6 | | are sold to
the public and in which interments are restricted | 7 | | to a group of persons
related to each other by blood or | 8 | | marriage.
| 9 | | "Fraternal cemetery" means a cemetery owned, operated, | 10 | | controlled, or
managed by any fraternal organization or | 11 | | auxiliary organizations thereof,
in which the sale of lots, | 12 | | graves, crypts or niches is restricted
principally to its | 13 | | members.
| 14 | | "Grave" means a space of ground in a cemetery, used, or | 15 | | intended to be
used, for burial.
| 16 | | "Investment Company Act of 1940" means Title 15, of the | 17 | | United States
Code, Sections 80a-1 to 80a-51, inclusive, as
| 18 | | amended.
| 19 | | "Investment Company" means any issuer (a) whose securities | 20 | | are
purchasable only with care funds or trust funds, or both; | 21 | | and (b) which is
an open and diversified management company as | 22 | | defined in and registered
under the "Investment Company Act of | 23 | | 1940"; and (c) which has entered into
an agreement with the | 24 | | Comptroller containing such provisions as the
Comptroller by | 25 | | regulation reasonably requires for the proper administration
| 26 | | of this Act.
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| 1 | | "Municipal cemetery" means a cemetery owned, operated, | 2 | | controlled or
managed by any city, village, incorporated town, | 3 | | township, county, or other
municipal corporation, political | 4 | | subdivision, or instrumentality thereof
authorized by law to | 5 | | own, operate, or manage a cemetery.
| 6 | | "Niche" means a space in a columbarium used or intended to | 7 | | be used, for
inurnment of cremated human remains.
| 8 | | "Principal" means an original sum invested and any capital | 9 | | gains. | 10 | | "Privately operated cemetery" means any entity that offers | 11 | | interment rights,
entombment rights, or inurnment rights, | 12 | | other than a
fraternal, municipal, State, federal or religious | 13 | | cemetery or a family burying
ground.
| 14 | | "Religious cemetery" means a cemetery owned, operated, | 15 | | controlled, or
managed by any recognized church, religious | 16 | | society, association or
denomination, or by any cemetery | 17 | | authority or any corporation
administering, or through which is | 18 | | administered, the temporalities of any
recognized church, | 19 | | religious society, association or denomination.
| 20 | | "State or federal cemetery" means a cemetery owned, | 21 | | operated,
controlled, or managed by any State or the federal | 22 | | government or any
political subdivision or instrumentality | 23 | | thereof.
| 24 | | "Entombment right" means the right to place individual | 25 | | human remains or
individual cremated human remains in a | 26 | | specific mausoleum crypt or lawn
crypt selected by the consumer |
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| 1 | | for use as a final resting place.
| 2 | | "Interment right" means the right to place individual human | 3 | | remains or
cremated human remains in a specific underground | 4 | | location selected by the
consumer for use as a final resting | 5 | | place.
| 6 | | "Inurnment right" means the right to place individual | 7 | | cremated human
remains in a specific niche selected by the | 8 | | consumer for use as a final
resting place.
| 9 | | "Lawn crypt" means a permanent underground crypt usually | 10 | | constructed of
reinforced concrete or similar material | 11 | | installed in multiple units for the
entombment of human | 12 | | remains.
| 13 | | "Imputed value" means the retail price of comparable rights | 14 | | within the
same or similar area of the cemetery.
| 15 | | (Source: P.A. 92-651, eff. 7-11-02 .)
| 16 | | (760 ILCS 100/3) (from Ch. 21, par. 64.3)
| 17 | | Sec. 3. Gifts and contributions - Trust funds. Any cemetery | 18 | | authority is
hereby authorized and empowered to accept any | 19 | | gift, grant, contribution,
payment, legacy, or pursuant to | 20 | | contract, any sum of money, funds, securities
or property of | 21 | | any kind, or the income or avails thereof, and to establish a
| 22 | | trust fund to hold the same in perpetuity for the
care of its | 23 | | cemetery, or for the care of any lot, grave, crypt or niche in | 24 | | its
cemetery; or for the special care of any lot, grave, crypt | 25 | | or niche or of any
family mausoleum or memorial, marker, or |
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| 1 | | monument in its cemetery.
| 2 | | The cemetery authority shall act as trustee of all amounts | 3 | | received for
care until they have been deposited into the trust | 4 | | fund established under this
Section. The cemetery authority may | 5 | | continue to be the trustee of up to
$500,000 of care funds that | 6 | | have been deposited into the trust fund, but the
cemetery | 7 | | authority must retain an independent trustee for any amount of | 8 | | care
funds held in trust in excess of that $500,000. A cemetery | 9 | | authority holding
care funds in excess of $500,000 on the | 10 | | effective date of this amendatory Act
of 1996 shall have 36 | 11 | | months to retain an independent trustee for the excess
amounts | 12 | | held in trust; any other cemetery authority must retain an | 13 | | independent
trustee for its care funds in excess of $500,000 as | 14 | | soon as may be practical.
| 15 | | No gift, grant, legacy, payment or other contribution
shall | 16 | | be invalid by reason of any indefiniteness or uncertainty as to | 17 | | the
beneficiary designated in the instrument creating the gift, | 18 | | grant, legacy,
payment or other contribution. If any gift, | 19 | | grant, legacy, payment or
other contribution consists of | 20 | | non-income producing
property, the cemetery authority | 21 | | accepting it is authorized and empowered
to sell such property | 22 | | and to invest the funds obtained in accordance with
the | 23 | | provisions of the next succeeding paragraph.
| 24 | | The care funds authorized by this Section and provided for | 25 | | in Section 4 of
this Act shall be held intact and, unless | 26 | | otherwise restricted by the terms of
the gift, grant, legacy, |
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| 1 | | contribution, payment, contract or other payment, as
to | 2 | | investments made after June 11, 1951 the trustee of the care | 3 | | funds of the cemetery authority, in
acquiring, investing, | 4 | | reinvesting, exchanging, retaining, selling and
managing | 5 | | property for any such trust, shall exercise the judgment and | 6 | | care
under the circumstances then prevailing, which persons of | 7 | | prudence, discretion
and intelligence exercise in the | 8 | | management of their own affairs, not in
regard to speculation | 9 | | but in regard to the permanent disposition of their
funds, | 10 | | considering the probable income as well as the probable safety | 11 | | of
their capital. Within the limitations of the foregoing | 12 | | standard, the trustee of the care funds of the cemetery
| 13 | | authority is authorized to acquire and retain every kind of | 14 | | property, real,
personal or mixed, and every kind of | 15 | | investment, including specifically but
without limiting the | 16 | | generality of the foregoing, bonds, debentures and
other | 17 | | corporate obligations, preferred or common stocks and real | 18 | | estate
mortgages, which persons of prudence, discretion and | 19 | | intelligence acquire or
retain for their own account. Within | 20 | | the limitations of the foregoing
standard,
the trustee is | 21 | | authorized to retain property
properly acquired, without | 22 | | limitation as to time and without regard to its
suitability for | 23 | | original purchase. The care funds authorized by this
Section | 24 | | may be commingled with other trust funds received by such | 25 | | cemetery
authority for the care of its cemetery or for the care | 26 | | or special care of
any lot, grave, crypt, niche, private |
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| 1 | | mausoleum, memorial, marker, or
monument in its cemetery, | 2 | | whether received by gift, grant, legacy,
contribution, | 3 | | payment, contract or other conveyance heretofore or hereafter
| 4 | | made to such cemetery authority. Such care funds may be | 5 | | invested with
common trust funds as provided in The Common | 6 | | Trust Fund Act. The net income
only from the investment of such | 7 | | care funds
shall be allocated and used for the purposes | 8 | | specified in the transaction
by which the principal was | 9 | | established in the proportion that each
contribution bears to | 10 | | the entire sum invested. Net income does not include any | 11 | | capital gains from the investment of such care funds.
| 12 | | (Source: P.A. 89-615, eff. 8-9-96 .)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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