Full Text of SB0482 94th General Assembly
SB0482 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0482
Introduced 2/16/2005, by Sen. Debbie DeFrancesco Halvorson - Deanna Demuzio - M. Maggie Crotty - William R. Haine - Antonio Munoz, et al. SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Funeral or Burial Funds Act. Provides that a separate completed contract shall be issued for cemetery merchandise, cemetery services, or undeveloped interment, entombment, or inurnment spaces, and not covered by this Act, unless certain conditions are met. Provides that licenses and license renewals shall be issued for a 5-year term. Provides requirements for license renewal and makes conforming changes in other provisions. Amends the Crematory Regulation Act, the Cemetery Care Act, and the Illinois Pre-Need Cemetery Sales Act. Provides that licenses and license renewals shall be issued for a 5-year term. Provides requirements for license renewal and makes conforming changes in other provisions of the Acts. Adds additional contract requirements under the Illinois Pre-Need Cemetery Sales Act. In the Cemetery Care Act, provides that the Comptroller shall examine at least annually every licensee who holds $750,000 or more (was, $250,000 or more) in its care funds. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person authorized by law to sell funeral services on an at need basis may also sell cemetery services, cemetery merchandise, or interment, inurnment, or entombment spaces on an at need basis, unless the person is also authorized by law to sell such cemetery services, merchandise, or spaces and issues to the consumer a separate contract with the provider of such cemetery services, merchandise, or spaces. Provides requirements for completed contracts. Effective January 1, 2006.
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A BILL FOR
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SB0482 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Funeral or Burial Funds Act is | 5 |
| amended by changing Sections 1a-1, 3a, 3a-5, and 3f and by | 6 |
| adding Sections 3a-1, 3a-2, 3a-3, and 3a-4 as follows:
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| (225 ILCS 45/1a-1)
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| Sec. 1a-1. Pre-need contracts.
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| (a) It shall be unlawful for any seller doing business
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| within
this State to accept sales proceeds from a purchaser, | 11 |
| either directly or
indirectly by any means, unless the seller | 12 |
| enters into a
pre-need contract
with the purchaser which meets | 13 |
| the following requirements:
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| (1) It states the name and address of the principal | 15 |
| office of the
seller and the parent company of the
seller, | 16 |
| if
any.
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| (2) It clearly identifies the provider's name and
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| address,
the purchaser, and
the beneficiary, if other than | 19 |
| the purchaser.
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| (2.5) If the provider has branch locations, the | 21 |
| contract
gives the purchaser the opportunity to identify | 22 |
| the branch
at which the funeral will be provided.
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| (3) It contains a complete description of the funeral | 24 |
| merchandise and
services to be provided and the price of | 25 |
| the merchandise and services, and it
clearly discloses | 26 |
| whether the price of the merchandise and services is
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| guaranteed or not guaranteed as to price.
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| (A) Each guaranteed price contract shall contain | 29 |
| the following
statement in 12 point bold type:
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| THIS CONTRACT GUARANTEES THE BENEFICIARY THE | 31 |
| SPECIFIC GOODS AND
SERVICES CONTRACTED FOR. NO | 32 |
| ADDITIONAL CHARGES MAY BE REQUIRED.
FOR DESIGNATED |
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| GOODS AND SERVICES, ADDITIONAL CHARGES MAY BE INCURRED | 2 |
| FOR
UNEXPECTED EXPENSES INCLUDING, BUT NOT LIMITED TO, | 3 |
| CASH ADVANCES, SHIPPING OF
REMAINS FROM A DISTANT | 4 |
| PLACE, OR DESIGNATED HONORARIA ORDERED OR DIRECTED BY
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| SURVIVORS.
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| (B) Except as provided in subparagraph (C) of this | 7 |
| paragraph (3),
each non-guaranteed price contract | 8 |
| shall contain the following
statement in 12 point bold | 9 |
| type:
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| THIS CONTRACT DOES NOT GUARANTEE THE PRICE THE | 11 |
| BENEFICIARY WILL PAY FOR
ANY SPECIFIC GOODS OR | 12 |
| SERVICES. ANY FUNDS PAID UNDER THIS CONTRACT ARE ONLY A
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| DEPOSIT TO BE APPLIED TOWARD THE FINAL PRICE OF THE | 14 |
| GOODS OR SERVICES
CONTRACTED FOR. ADDITIONAL CHARGES | 15 |
| MAY BE REQUIRED.
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| (C) If a non-guaranteed price contract may
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| subsequently become guaranteed, the contract shall | 18 |
| clearly
disclose the nature of the guarantee and the | 19 |
| time,
occurrence, or event upon which the contract | 20 |
| shall become a
guaranteed price contract.
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| (4) It provides that if the particular supplies and | 22 |
| services specified
in the pre-need contract are | 23 |
| unavailable at the time of delivery, the provider
shall be | 24 |
| required to furnish supplies and services similar in style | 25 |
| and at
least equal in quality of material and workmanship.
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| (5) It discloses any penalties or restrictions, | 27 |
| including
but not limited
to geographic restrictions or the | 28 |
| inability of the provider
to
perform, on the delivery of | 29 |
| merchandise, services, or pre-need contract
guarantees.
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| (6) Regardless of the method of funding the pre-need | 31 |
| contract, the
following must be disclosed:
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| (A) Whether the pre-need contract is to be funded | 33 |
| by a trust, life
insurance, or an annuity;
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| (B) The nature of the relationship among the person
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| funding the
pre-need contract, the provider, and the
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| seller; and
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| (C) The impact on the pre-need contract of (i) any | 2 |
| changes in the
funding arrangement including but not | 3 |
| limited to changes in the assignment,
beneficiary | 4 |
| designation, or use of the funds; (ii) any specific | 5 |
| penalties
to be incurred
by the contract purchaser as a | 6 |
| result of failure to make payments; (iii)
penalties to | 7 |
| be incurred or moneys or refunds to be received as a | 8 |
| result of
cancellations; and (iv) all relevant | 9 |
| information concerning what occurs and
whether any | 10 |
| entitlements or obligations arise if there is a | 11 |
| difference between
the proceeds of the particular | 12 |
| funding arrangement and the amount actually
needed to | 13 |
| pay for the funeral at-need.
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| (D) The method of changing the
provider.
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| (b) All pre-need contracts are subject to the Federal Trade | 16 |
| Commission Rule
concerning the Cooling-Off Period for | 17 |
| Door-to-Door Sales (16 CFR Part 429).
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| (c) No pre-need contract shall be sold in this State unless
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| there is a provider for the services and personal property | 20 |
| being
sold. If the seller is not a provider, then the seller | 21 |
| must have a binding agreement with a provider, and
the identity | 22 |
| of the provider and the nature of the agreement between the | 23 |
| seller
and the provider shall be disclosed in the pre-need | 24 |
| contract at the time of the
sale and before the receipt of any | 25 |
| sales proceeds. A separate completed contract, as required by | 26 |
| the Illinois Pre-Need Cemetery Sales Act, shall be issued for | 27 |
| cemetery merchandise, cemetery services, or undeveloped | 28 |
| interment, entombment, or inurnment spaces, as defined in the | 29 |
| Illinois Pre-Need Cemetery Sales Act, and not covered by this | 30 |
| Act, unless the seller is licensed under both Acts and all | 31 |
| disclosures are in compliance with both Acts. The failure to | 32 |
| disclose the
identity of the provider, the nature of the | 33 |
| agreement between the seller and
the provider, or any changes | 34 |
| thereto to the purchaser and beneficiary, or the
failure to | 35 |
| make the disclosures required in subdivision (a)(1), | 36 |
| constitutes an
intentional violation of this Act.
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| (d) All pre-need contracts must be in writing in at least | 2 |
| 11 point type,
numbered, and executed in duplicate. A signed
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| copy of the pre-need contract must be provided to the purchaser | 4 |
| at the time of
entry into the pre-need contract. The | 5 |
| Comptroller may by rule develop
a model pre-need contract form | 6 |
| which meets the requirements of this Act.
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| (e) The State Comptroller shall by rule develop a booklet | 8 |
| for
consumers in plain English describing
the scope, | 9 |
| application, and consumer protections of this Act. After the
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| adoption of these rules, no pre-need contract shall be sold in | 11 |
| this State
unless (i) the seller distributes to the purchaser | 12 |
| prior to the sale a
booklet promulgated or approved for use by | 13 |
| the State Comptroller; (ii) the
seller explains to the | 14 |
| purchaser the terms of the pre-need contract prior to
the | 15 |
| purchaser signing; and (iii) the purchaser initials a statement | 16 |
| in the
contract confirming that the seller has explained the | 17 |
| terms of the contract
prior to the purchaser signing.
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| (f) All sales proceeds received in connection with a | 19 |
| pre-need
contract shall be deposited into a trust account as | 20 |
| provided in
Section 1b and Section 2 of this Act, or shall be | 21 |
| used to purchase a life
insurance policy or tax-deferred | 22 |
| annuity as provided in Section 2a
of this Act.
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| (g) No pre-need contract shall be sold in this State unless | 24 |
| it is
accompanied by a funding mechanism permitted under this | 25 |
| Act, and unless the
seller is licensed by the Comptroller as | 26 |
| provided in Section 3
of this Act.
Nothing in this Act is | 27 |
| intended to relieve sellers of pre-need
contracts from
being | 28 |
| licensed under any other Act required for their profession or | 29 |
| business,
and being subject to the rules promulgated to | 30 |
| regulate their profession or
business, including rules on | 31 |
| solicitation and advertisement.
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| (Source: P.A. 92-419, eff. 1-1-02.)
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| (225 ILCS 45/3a) (from Ch. 111 1/2, par. 73.103a)
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| Sec. 3a. Denial, nonrenewal, suspension, or revocation of | 35 |
| license.
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| (a) The Comptroller may refuse to issue or renew or may | 2 |
| suspend
or revoke a license on any of the following grounds:
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| (1) The applicant or licensee has made any
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| misrepresentations or false statements or concealed any
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| material fact.
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| (2) The applicant or licensee is insolvent.
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| (3) The applicant or licensee has been engaged in
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| business practices that work a fraud.
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| (4) The applicant or licensee has refused to give
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| pertinent data to the Comptroller.
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| (5) The applicant or licensee has failed to satisfy
any | 12 |
| enforceable judgment or decree rendered by any court
of | 13 |
| competent jurisdiction against the applicant.
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| (6) The applicant or licensee has conducted or is
about | 15 |
| to conduct business in a fraudulent manner.
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| (7) The trust agreement is
not in compliance with State | 17 |
| or federal law.
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| (8) The fidelity bond is not satisfactory to the
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| Comptroller.
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| (9) As to any individual required to be listed in the | 21 |
| license application for license or license renewal ,
the | 22 |
| individual has
conducted or is about to conduct any | 23 |
| business on behalf
of the applicant in a fraudulent manner; | 24 |
| has been
convicted of any felony or misdemeanor, an | 25 |
| essential
element of which is fraud; has had a judgment | 26 |
| rendered
against him or her based on fraud in any civil
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| litigation; has failed to satisfy any enforceable
judgment | 28 |
| or decree rendered against him or her by any
court of | 29 |
| competent jurisdiction; or has been convicted
of any felony | 30 |
| or any theft-related offense.
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| (10) The applicant or licensee, including any member,
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| officer, or director thereof if the applicant or
licensee | 33 |
| is a firm, partnership, association or
corporation and any | 34 |
| shareholder holding more than 10% of
the corporate stock, | 35 |
| has violated any provision of this
Act or any regulation, | 36 |
| decision, order, or finding made
by the Comptroller under |
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| this Act.
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| (11) The Comptroller finds any fact or condition
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| existing which, if it had existed at the time of the
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| original application for such license or license renewal ,
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| would have
warranted the Comptroller in refusing the | 6 |
| issuance or renewal of
the license.
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| (b) Before refusal to issue or renew and before suspension | 8 |
| or
revocation of a
license, the Comptroller shall hold a | 9 |
| hearing to determine whether the
applicant or licensee, | 10 |
| hereinafter referred to as the respondent, is entitled
to hold | 11 |
| such a license. At least 10 days prior to the date set for such
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| hearing, the Comptroller shall notify the respondent in writing | 13 |
| that on the
date designated a hearing will be held to determine | 14 |
| his eligibility for a
license and that he may appear in person | 15 |
| or by counsel. Such written
notice may be served on the | 16 |
| respondent personally, or by registered or
certified mail sent | 17 |
| to the respondent's business address as shown in his
latest | 18 |
| notification to the Comptroller. At the hearing, both the
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| respondent and the complainant shall be accorded ample | 20 |
| opportunity to
present in person or by counsel such statements, | 21 |
| testimony, evidence and
argument as may be pertinent to the | 22 |
| charges or to any defense thereto. The
Comptroller may | 23 |
| reasonably continue such hearing from time to time.
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| The Comptroller may subpoena any person or persons in this | 25 |
| State and take
testimony orally, by deposition or by exhibit, | 26 |
| in the same manner and with
the same fees and mileage | 27 |
| allowances as prescribed in judicial proceedings
in civil | 28 |
| cases.
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| Any authorized agent of the Comptroller may administer | 30 |
| oaths to witnesses
at any hearing which the Comptroller is | 31 |
| authorized to conduct.
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| (Source: P.A. 92-419, eff. 1-1-02.)
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| (225 ILCS 45/3a-1 new)
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| Sec. 3a-1. Term of license. | 35 |
| (a) Any license that was issued under this Act before the |
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| effective date of this amendatory Act of the 94th General | 2 |
| Assembly shall expire 5 years after the effective date of this | 3 |
| amendatory Act of the 94th General Assembly and must thereafter | 4 |
| be renewed as provided in this Act. Beginning on the effective | 5 |
| date of this amendatory Act of the 94th General Assembly, a | 6 |
| license or license renewal under this Act shall be issued for a | 7 |
| 5-year term, which shall expire as provided in this Act. | 8 |
| (b) The Comptroller by rule may adopt a system under which | 9 |
| licenses must be renewed by various dates during the year, | 10 |
| coinciding with the due date of the annual report of the | 11 |
| licensee or any extensions thereof. | 12 |
| (225 ILCS 45/3a-2 new)
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| Sec. 3a-2. Requirements for license renewal. In order to | 14 |
| complete the license renewal process, the licensee shall submit | 15 |
| a license renewal application to the Comptroller in writing | 16 |
| signed by the applicant and duly verified on forms furnished by | 17 |
| the Comptroller upon date of renewal. Each renewal application | 18 |
| must contain all the following: | 19 |
| (1) An affirmative statement indicating the licensee's | 20 |
| desire for renewal and agreement to abide by all applicable | 21 |
| statutes and rules. | 22 |
| (2) A $25 nonrefundable renewal fee. | 23 |
| (3) A completed annual report. | 24 |
| (4) The following information for the applicant, and | 25 |
| each member, officer, and director thereof, if the | 26 |
| applicant is a firm, partnership, association, or | 27 |
| corporation, and each shareholder holding more than 10% of | 28 |
| the corporate stock, if the applicant is a corporation: | 29 |
| (A) His or her name and current address (both | 30 |
| residence and place of business).
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| (B) A detailed statement of the individual's | 32 |
| business experience for the 10 years immediately | 33 |
| preceding the application. | 34 |
| (C) Any present or prior connection between the | 35 |
| individual and any other person engaged in pre-need |
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| sales. | 2 |
| (D) Any felony or misdemeanor convictions of which | 3 |
| fraud was an essential element and any charges or | 4 |
| complaints lodged against the individual of which | 5 |
| fraud was an essential element and that resulted in | 6 |
| civil or criminal litigation. | 7 |
| (E) Any failure of the individual to satisfy an | 8 |
| enforceable judgment entered against him or her based | 9 |
| upon fraud. | 10 |
| (F) Any other information requested by the | 11 |
| Comptroller relating to past
business practices of the | 12 |
| individual. | 13 |
| Since the information required by this item (4) may be | 14 |
| confidential or contain proprietary information, this | 15 |
| information shall not be available to other licensees or | 16 |
| the general public and shall be used only for the lawful | 17 |
| purposes of the Comptroller in enforcing this Act.
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| (5) A current statement of the applicant's assets and | 19 |
| liabilities. | 20 |
| (6) The current name and address of the licensee's | 21 |
| principal place of business at which the books, accounts, | 22 |
| and records are available for examination by the | 23 |
| Comptroller as required by this Act. | 24 |
| (7) The current names and addresses of the licensee's | 25 |
| branch locations at which pre-need sales are conducted and | 26 |
| that operate under the same license number as the | 27 |
| applicant's principal place of business. | 28 |
| (8) The name of the current trustee and, if applicable, | 29 |
| the names of the advisors to the trustee, including a copy | 30 |
| of the current trust agreement under which the trust funds | 31 |
| are held as required by this Act. | 32 |
| (9) Such other information as the Comptroller may | 33 |
| reasonably require in order to determine whether the | 34 |
| licensee's renewal application qualifies under this Act. | 35 |
| (225 ILCS 45/3a-3 new)
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| Sec. 3a-3. Remedy for delinquent license renewal. | 2 |
| (a) If a licensee continues to conduct activities requiring | 3 |
| a license but fails to submit a completed license renewal | 4 |
| application to the Comptroller within the time specified in | 5 |
| this Act, the Comptroller shall impose upon the licensee a | 6 |
| penalty in the amount of $5 per day for each day the renewal | 7 |
| statement is not submitted. The Comptroller may abate all or | 8 |
| part of the $5 daily penalty for good cause shown. | 9 |
| (b) In the event the renewal application is denied by the | 10 |
| Comptroller, the renewal fee paid is not refundable. | 11 |
| (225 ILCS 45/3a-4 new)
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| Sec. 3a-4. License renewal process. Once the licensee has | 13 |
| filed for license renewal, the expiring license shall remain in | 14 |
| effect until the renewal has been issued. Upon approval of the | 15 |
| Comptroller, the Comptroller shall issue a license renewal to | 16 |
| be posted in the place of business of the licensee.
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| (225 ILCS 45/3a-5)
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| Sec. 3a-5. License requirements.
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| (a) Every license issued by the Comptroller shall state
the | 20 |
| number of the license, the business name and address of
the | 21 |
| licensee's principal place of business, each branch
location | 22 |
| also operating under the license, and the
licensee's parent | 23 |
| company, if any. The license shall be
conspicuously posted in | 24 |
| each place of business operating
under the license. The | 25 |
| Comptroller may issue such
additional licenses as may be | 26 |
| necessary for licensee branch
locations upon compliance with | 27 |
| the provisions of this Act
governing an original issuance of a | 28 |
| license for each new
license.
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| (b) Individual salespersons representing a licensee
shall | 30 |
| not be required to obtain licenses in their
individual | 31 |
| capacities, but must acknowledge, by affidavit,
that they have | 32 |
| been provided with a copy of and have read
this Act. The | 33 |
| licensee shall retain copies of the affidavits
of its sellers | 34 |
| for its records and shall make the affidavits
available to the |
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| Comptroller for examination upon request.
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| (c) The licensee shall be responsible for the activities
of | 3 |
| any person representing the licensee in selling or
offering a | 4 |
| pre-need contract for sale.
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| (d) Any person not selling on behalf of a licensee shall
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| obtain its own license.
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| (e) No license shall be transferable or assignable
without | 8 |
| the express written consent of the Comptroller. A
transfer of | 9 |
| more than 50% of the ownership of any business
licensed | 10 |
| hereunder shall be deemed to be an attempted
assignment of the | 11 |
| license originally issued to the licensee
for which consent of | 12 |
| the Comptroller shall be required.
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| (f) Every license issued hereunder shall remain in force
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| until it expires or has been suspended, surrendered, or revoked | 15 |
| in
accordance with this Act. The Comptroller, upon the request
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| of an interested person or on his own motion, may issue new
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| licenses to a licensee whose license or licenses have been
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| revoked, if no factor or condition then exists which would
have | 19 |
| warranted the Comptroller to originally refuse the
issuance of | 20 |
| such license.
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| (Source: P.A. 92-419, eff. 1-1-02 .)
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| (225 ILCS 45/3f)
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| Sec. 3f. Revocation of license.
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| (a) The Comptroller, upon determination that grounds
exist | 25 |
| for the nonrenewal, revocation or suspension of a license | 26 |
| issued
under this Act, may refuse to renew, revoke or suspend, | 27 |
| if appropriate, the license issued to
a licensee or to a | 28 |
| particular branch office location with respect to which
the | 29 |
| grounds for the nonrenewal, revocation or suspension may occur | 30 |
| or exist.
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| (b) Whenever a license is not renewed or is revoked by the
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| Comptroller, he or she shall apply to the Circuit Court of the | 33 |
| county wherein
the licensee is located for a receiver to | 34 |
| administer the trust funds of the
licensee or to maintain the | 35 |
| life insurance policies and tax-deferred annuities
held by the |
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| licensee under a pre-need contract.
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| (Source: P.A. 92-419, eff. 1-1-02.)
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| Section 10. The Crematory Regulation Act is amended by | 4 |
| changing Sections 11, 11.5, 13, and 62.10 and by adding | 5 |
| Sections 10.1, 10.2, 10.3, and 10.4 as follows:
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| (410 ILCS 18/10.1 new)
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| Sec. 10.1. Term of license.
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| (a) Any license that was issued under this Act before the | 9 |
| effective date of this amendatory Act of the 94th General | 10 |
| Assembly shall expire 5 years after the effective date of this | 11 |
| amendatory Act of the 94th General Assembly and must thereafter | 12 |
| be renewed as provided in this Act. Beginning on the effective | 13 |
| date of this amendatory Act of the 94th General Assembly, a | 14 |
| license or license renewal shall be issued for a 5-year term, | 15 |
| which shall expire as provided in this Act. | 16 |
| (b) The Comptroller by rule may adopt a system under which | 17 |
| licenses must be renewed by various dates during the year, | 18 |
| coinciding with the due date of the annual report of the | 19 |
| licensee or any extensions thereof. | 20 |
| (410 ILCS 18/10.2 new)
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| Sec. 10.2. Requirements for license renewal. In order to | 22 |
| complete the license renewal process, the licensee shall submit | 23 |
| a license renewal application to the Comptroller in writing on | 24 |
| forms furnished by the Comptroller upon date of renewal. Each | 25 |
| renewal application shall contain all of the following: | 26 |
| (1) An affirmative statement indicating the licensee's | 27 |
| desire for renewal and agreement to abide by all applicable | 28 |
| statutes and rules. | 29 |
| (2) A $25 nonrefundable renewal fee. | 30 |
| (3) A completed annual report. | 31 |
| (4) The current name and address (both residence and | 32 |
| business) of the licensee, if the licensee is an | 33 |
| individual; the full name and address of every member, if |
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| the licensee is a partnership; the full name and address of | 2 |
| every member of the board of directors, if the licensee is | 3 |
| an association; and the name and address of every officer, | 4 |
| director, and shareholder holding more than 25% of the | 5 |
| corporate stock, if the licensee is a corporation. | 6 |
| (5) A description of the type of structure and | 7 |
| equipment used in the operation of the crematory, including | 8 |
| the operating permit number issued to the cremation device | 9 |
| by the Illinois Environmental Protection Agency. | 10 |
| (6) An updated attestation by the owner that cremation | 11 |
| services shall be by a person trained in accordance with | 12 |
| the requirements of Section 22 of this Act. | 13 |
| (7) A copy of the certifications issued by the | 14 |
| certification program to the person or persons who operate | 15 |
| the cremation device. | 16 |
| (8) Any further information that the Comptroller | 17 |
| reasonably may require. | 18 |
| (410 ILCS 18/10.3 new)
| 19 |
| Sec. 10.3. Remedy for delinquent license renewal. | 20 |
| (a) If a licensee continues to conduct activities requiring | 21 |
| a license but fails to submit a completed license renewal | 22 |
| application to the Comptroller within the time specified in | 23 |
| this Act, the Comptroller shall impose upon the licensee a | 24 |
| penalty of $5 for each day the licensee remains delinquent in | 25 |
| submitting the renewal application. The Comptroller may abate | 26 |
| all or part of the $5 daily penalty for good cause shown. | 27 |
| (b) In the event the renewal application is denied by the | 28 |
| Comptroller, the renewal fee paid is not refundable. | 29 |
| (410 ILCS 18/10.4 new)
| 30 |
| Sec. 10.4. License renewal process. Once the licensee has | 31 |
| filed for license renewal, the expiring license shall remain in | 32 |
| effect until the renewal has been issued. Upon approval of the | 33 |
| Comptroller, the Comptroller shall issue a license renewal to | 34 |
| be posted in the place of business of the licensee.
|
|
|
|
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|
| 1 |
| (410 ILCS 18/11)
| 2 |
| Sec. 11. Grounds for refusal of license or license renewal
| 3 |
| or suspension or revocation of
license.
| 4 |
| (a) In this Section, "applicant" means a person who has | 5 |
| applied for a
license
or license renewal under
this Act.
| 6 |
| (b) The Comptroller may refuse to issue or renew a license | 7 |
| under this Act, or may
suspend
or revoke a license issued under | 8 |
| this Act, on any of the following grounds:
| 9 |
| (1) The applicant or licensee has made any | 10 |
| misrepresentation or false
statement or concealed any | 11 |
| material fact in connection with a license
application or | 12 |
| licensure under this Act.
| 13 |
| (2) The applicant or licensee has been engaged in | 14 |
| business practices that
work a fraud.
| 15 |
| (3) The applicant or licensee has refused to give | 16 |
| information required
under this Act to be disclosed to the
| 17 |
| Comptroller.
| 18 |
| (4) The applicant or licensee has conducted or is about | 19 |
| to conduct
cremation
business in a fraudulent manner.
| 20 |
| (5) As to any individual listed in the license or | 21 |
| license renewal application as required
under Section 10 or | 22 |
| 10.2 , that individual has conducted or is about to conduct | 23 |
| any
cremation business on behalf of the applicant in a | 24 |
| fraudulent manner or has
been
convicted
of any felony or | 25 |
| misdemeanor an essential element of which is fraud.
| 26 |
| (6) The applicant or licensee has failed to make the | 27 |
| annual report
required
by this Act or to comply with a | 28 |
| final order, decision, or finding of the
Comptroller
made | 29 |
| under this Act.
| 30 |
| (7) The applicant or licensee, including any member, | 31 |
| officer, or director
of
the applicant or licensee if the | 32 |
| applicant or licensee is a firm, partnership,
association, | 33 |
| or corporation and including any shareholder holding more | 34 |
| than 25%
of the corporate stock of the applicant or | 35 |
| licensee, has violated any provision
of
this Act or any |
|
|
|
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|
| 1 |
| regulation or order made by the Comptroller under this Act.
| 2 |
| (8) The Comptroller finds any fact or condition | 3 |
| existing that, if it had
existed at the time of the | 4 |
| original application for a license or license renewal under | 5 |
| this Act,
would
have warranted the Comptroller in refusing | 6 |
| the issuance of the license.
| 7 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 8 |
| (410 ILCS 18/11.5)
| 9 |
| Sec. 11.5. License revocation or suspension; surrender of | 10 |
| license.
| 11 |
| (a) Upon determining that grounds exist for the nonrenewal,
| 12 |
| revocation , or suspension of
a
license issued under this Act, | 13 |
| the Comptroller, if appropriate, may revoke ,
or
suspend , or | 14 |
| refuse to renew the
license issued to the licensee.
| 15 |
| (b) Upon the nonrenewal, revocation , or suspension of a | 16 |
| license issued under this Act,
the
licensee must immediately | 17 |
| surrender the license to the Comptroller. If the
licensee fails | 18 |
| to
do so, the Comptroller may seize the license.
| 19 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 20 |
| (410 ILCS 18/13)
| 21 |
| Sec. 13. License; display; transfer; duration.
| 22 |
| (a) Every license issued under this Act must state the | 23 |
| number of the
license, the
business name and address of the | 24 |
| licensee's principal place of business, and
the licensee's
| 25 |
| parent company, if any. The license must be conspicuously | 26 |
| posted in the place
of business
operating under the license.
| 27 |
| (b) No license is transferable or assignable without the | 28 |
| express
written
consent of the Comptroller. A transfer of more | 29 |
| than 50% of the ownership of any
business licensed under this | 30 |
| Act shall be deemed to be an attempted assignment
of
the | 31 |
| license
originally issued to the licensee for whom consent of | 32 |
| the Comptroller is
required.
| 33 |
| (c) Every license issued under this Act shall remain in | 34 |
| force until it expires or has
been
surrendered, suspended, or |
|
|
|
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LRB094 10608 AMC 40929 b |
|
| 1 |
| revoked in accordance with this Act.
Upon
the request of an | 2 |
| interested person or on the Comptroller's own motion, the
| 3 |
| Comptroller may
issue a new
license to a licensee whose license | 4 |
| has been revoked under this Act if no
factor or
condition then | 5 |
| exists which would have warranted the Comptroller in
originally | 6 |
| refusing
the issuance of the license.
| 7 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 8 |
| (410 ILCS 18/62.10)
| 9 |
| Sec. 62.10. Investigation of actions; hearing.
| 10 |
| (a) The Comptroller shall make an investigation
upon
| 11 |
| discovering facts that, if proved, would constitute grounds for | 12 |
| refusal , denial ,
suspension, or
revocation of a license under | 13 |
| this Act.
| 14 |
| (b) Before refusing to issue or renew , and before | 15 |
| suspending or revoking, a license
under
this Act, the | 16 |
| Comptroller shall hold a hearing to determine whether the
| 17 |
| applicant for a
license or the licensee ("the respondent") is | 18 |
| entitled to hold such a license.
At least 10
days before the | 19 |
| date set for the hearing, the Comptroller shall notify the
| 20 |
| respondent in
writing that (i) on the designated date a hearing | 21 |
| will be held to determine the
respondent's
eligibility for a | 22 |
| license and (ii) the respondent may appear in person or by
| 23 |
| counsel. The
written notice may be served on the respondent | 24 |
| personally, or by registered or
certified
mail sent to the | 25 |
| respondent's business address as shown in the respondent's
| 26 |
| latest
notification to the Comptroller. The notice must include | 27 |
| sufficient information
to inform
the respondent of the general | 28 |
| nature of the reason for the Comptroller's
action.
| 29 |
| (c) At the hearing, both the respondent and the complainant | 30 |
| shall be
accorded
ample opportunity to present in person or by | 31 |
| counsel such statements,
testimony,
evidence, and argument as | 32 |
| may be pertinent to the charge or to any defense to
the charge. | 33 |
| The
Comptroller may reasonably continue the hearing from time | 34 |
| to time. The
Comptroller
may subpoena any person or persons in | 35 |
| this State and take testimony orally, by
deposition, or by |
|
|
|
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|
| 1 |
| exhibit, in the same manner and with the same fees and
mileage | 2 |
| as
prescribed in judicial proceedings in civil cases. Any | 3 |
| authorized agent of the
Comptroller
may administer oaths to | 4 |
| witnesses at any hearing that the Comptroller is
authorized to
| 5 |
| conduct.
| 6 |
| (d) The Comptroller, at the Comptroller's expense, shall | 7 |
| provide a certified
shorthand reporter to take down the | 8 |
| testimony and preserve a record of every
proceeding at
the | 9 |
| hearing of any case involving the refusal to issue or renew a | 10 |
| license under this
Act, the
suspension or revocation of such a | 11 |
| license, the imposition of a monetary
penalty, or the
referral | 12 |
| of a case for criminal prosecution. The record of any such | 13 |
| proceeding
shall
consist of the notice of hearing, the | 14 |
| complaint, all other documents in the
nature
of pleadings
and | 15 |
| written motions filed in the proceeding, the transcript of | 16 |
| testimony, and
the report and
orders of the Comptroller. Copies | 17 |
| of the transcript of the record may be
purchased from
the | 18 |
| certified shorthand reporter who prepared the record or from | 19 |
| the
Comptroller.
| 20 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 21 |
| Section 15. The Cemetery Care Act is amended by changing | 22 |
| Sections 7, 8, 10, 11, 14, 15, 15.3, 15.4, and 18 and by adding | 23 |
| Sections 9.1, 9.2, 9.3, and 9.4 as follows:
| 24 |
| (760 ILCS 100/7) (from Ch. 21, par. 64.7)
| 25 |
| Sec. 7. License to hold care funds.
No cemetery authority | 26 |
| owning, operating, controlling or managing a
privately | 27 |
| operated cemetery may accept the care funds authorized by the
| 28 |
| provisions of Section 3 of this Act without securing from the | 29 |
| Comptroller a
license to hold
the funds. The license shall be | 30 |
| secured by the
cemetery authority whether
the cemetery | 31 |
| authority is serving as trustee of the care funds or whether
| 32 |
| the care funds are held by an independent trustee.
| 33 |
| All licenses issued under the provisions of this Act by the | 34 |
| Department
of Financial Institutions prior to the time the |
|
|
|
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|
| 1 |
| administration of this Act
was transferred to the Comptroller | 2 |
| shall remain valid for all purposes
unless such license expires | 3 |
| or is terminated, surrendered or revoked as provided in
this | 4 |
| Act.
| 5 |
| (Source: P.A. 89-615, eff. 8-9-96.)
| 6 |
| (760 ILCS 100/8) (from Ch. 21, par. 64.8)
| 7 |
| Sec. 8. Every cemetery authority shall register with the | 8 |
| Comptroller upon
forms furnished by him or her. Such | 9 |
| registration statement shall state whether
the cemetery | 10 |
| authority claims that the cemetery owned, operated, | 11 |
| controlled, or
managed by it is a fraternal cemetery, | 12 |
| municipal, State, or federal cemetery,
or religious cemetery, | 13 |
| or a family burying ground, as the case may be, as
defined in | 14 |
| Section 2 of this Act, and shall state the date of | 15 |
| incorporation if
a corporation and whether incorporated under | 16 |
| general or private act of the
legislature. Such registration | 17 |
| statement shall be accompanied by a fee of $5.
Such fee shall | 18 |
| be paid to the Comptroller and no registration statement shall
| 19 |
| be accepted by him without the payment of such fee. Every | 20 |
| cemetery authority
that is not required to file an annual | 21 |
| report under this Act shall bear the
responsibility of | 22 |
| informing the Comptroller whenever a change takes place
| 23 |
| regarding status of cemetery, name of contact person, and that | 24 |
| person's address
and telephone number.
| 25 |
| Upon receipt of a registration statement, if a claim is | 26 |
| made that a
cemetery is a fraternal cemetery, municipal | 27 |
| cemetery, or religious
cemetery, or a family burying ground, as | 28 |
| the case may be, as defined in
Section 2 of this Act, and the | 29 |
| Comptroller shall determine that such
cemetery is not a | 30 |
| fraternal cemetery, a municipal cemetery, or a religious
| 31 |
| cemetery, or a family burying ground, as the case may be, as | 32 |
| defined in
Section 2 of this Act, the Comptroller shall notify | 33 |
| the cemetery authority
making the claim of such determination; | 34 |
| provided, however, that no such
claim shall be denied until the | 35 |
| cemetery authority making such claim has
had at least 10 days' |
|
|
|
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|
| 1 |
| notice of a hearing thereon and an opportunity to be
heard. | 2 |
| When any such claim is denied, the Comptroller shall within 20 | 3 |
| days
thereafter prepare and keep on file in his office the | 4 |
| transcript of the
evidence taken and a written order or | 5 |
| decision of denial of such claim and
shall send by United | 6 |
| States mail a copy of such order or decision of denial
to the | 7 |
| cemetery authority making such claim within 5 days after the | 8 |
| filing
in his office of such order, finding or decision. A | 9 |
| review of any such
order, finding or decision may be had as | 10 |
| provided in the Administrative
Review Law, as now or hereafter | 11 |
| amended.
| 12 |
| Where no claim is made that a cemetery is a fraternal | 13 |
| cemetery,
municipal cemetery or religious cemetery or family | 14 |
| burying ground, as the
case may be, as defined in Section 2 of | 15 |
| this Act, the registration
statement shall be accompanied by a | 16 |
| fidelity bond in the amount required by
Section 9 of this Act. | 17 |
| Upon receipt of such application, statement and
bond, the | 18 |
| Comptroller shall issue a license to accept the care funds
| 19 |
| authorized by the provisions of Section 3 of this Act to each | 20 |
| cemetery
authority owning, operating, controlling or managing | 21 |
| a privately operated
cemetery. However, the Comptroller shall | 22 |
| issue a license
without the filing of a bond where the filing | 23 |
| of a bond is excused by
Section 18 of this Act.
| 24 |
| The license issued by the Comptroller shall remain in full | 25 |
| force and
effect until it expires or is surrendered by the | 26 |
| licensee or revoked by the
Comptroller as hereinafter provided.
| 27 |
| (Source: P.A. 88-477.)
| 28 |
| (760 ILCS 100/9.1 new)
| 29 |
| Sec. 9.1. Term of license. | 30 |
| (a) Any license that was issued under this Act before the | 31 |
| effective date of this amendatory Act of the 94th General | 32 |
| Assembly shall expire 5 years after the effective date of this | 33 |
| amendatory Act of the 94th General Assembly and must thereafter | 34 |
| be renewed as provided in this Act. Beginning on the effective | 35 |
| date of this amendatory Act of the 94th General Assembly, a |
|
|
|
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LRB094 10608 AMC 40929 b |
|
| 1 |
| license or license renewal shall be issued for a 5-year term, | 2 |
| which shall expire as provided in this Act. | 3 |
| (b) The Comptroller by rule may adopt a system under which | 4 |
| licenses must be renewed by various dates during the year, | 5 |
| coinciding with the due date of the annual report of the | 6 |
| licensee or any extensions thereof. | 7 |
| (760 ILCS 100/9.2 new)
| 8 |
| Sec. 9.2. Requirements for license renewal. In order to | 9 |
| complete the license renewal process, the licensee shall submit | 10 |
| a license renewal application to the Comptroller in writing | 11 |
| signed by the applicant and on forms furnished by the | 12 |
| Comptroller upon date of renewal. The form furnished by the | 13 |
| Comptroller shall enable a cemetery authority to apply for | 14 |
| license renewal of multiple cemetery locations within a single | 15 |
| license renewal application. Each renewal application must | 16 |
| contain all the following: | 17 |
| (1) An affirmative statement indicating the licensee's | 18 |
| desire for renewal and agreement to abide by all applicable | 19 |
| statutes and rules. | 20 |
| (2) A $25 nonrefundable renewal fee. | 21 |
| (3) A completed annual report. | 22 |
| (4) The following information for the licensee; each | 23 |
| member, if the licensee is a partnership or association; | 24 |
| each officer or director, if the licensee is a corporation; | 25 |
| and each party owning 10% or more of the cemetery authority | 26 |
| and the parent company, if any: | 27 |
| (A) Name and current address (both residence and | 28 |
| place of business).
| 29 |
| (B) A detailed statement of the individual's | 30 |
| business experience for the 10 years immediately | 31 |
| preceding the application. | 32 |
| (C) Any present or prior connection between the | 33 |
| individual and any other cemetery or cemetery | 34 |
| authority. | 35 |
| (D) Any felony or misdemeanor convictions of which |
|
|
|
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|
| 1 |
| fraud was an essential element, any judgment against | 2 |
| the person in a civil suit in which the complaint is | 3 |
| based on fraud, and whether the person is, at the time | 4 |
| of application, a defendant in a civil suit in which | 5 |
| the complaint is based on fraud. | 6 |
| (E) Any failure of the individual to satisfy an | 7 |
| enforceable judgment entered against him or her based | 8 |
| upon fraud. | 9 |
| Since the information required by this item (4) may be | 10 |
| confidential or contain proprietary information, this | 11 |
| information shall not be available to other licensees or | 12 |
| the general public and shall be used only for the lawful | 13 |
| purposes of the Comptroller in enforcing this Act.
| 14 |
| (5) A current statement of the applicant's assets and | 15 |
| liabilities. | 16 |
| (6) The current name, address, and legal boundaries of | 17 |
| each cemetery for which the care funds are entrusted and at | 18 |
| which the books, accounts, and records are available for | 19 |
| examination by the Comptroller as required by Section 13 of | 20 |
| this Act. | 21 |
| (7) Any other information that the Comptroller may | 22 |
| reasonably require in order to determine whether the | 23 |
| licensee qualifies for license renewal under this Act. | 24 |
| (760 ILCS 100/9.3 new)
| 25 |
| Sec. 9.3. Remedy for delinquent renewal. | 26 |
| (a) If a licensee continues to conduct activities requiring | 27 |
| a license but fails to submit a completed license renewal | 28 |
| application to the Comptroller within the time specified in | 29 |
| this Act, the Comptroller shall impose upon the licensee a | 30 |
| penalty of $5 for each day the licensee remains delinquent in | 31 |
| submitting the renewal application. The Comptroller may abate | 32 |
| all or part of the $5 daily penalty for good cause shown. | 33 |
| (b) In the event the renewal application is denied by the | 34 |
| Comptroller, the renewal fee paid is not refundable. |
|
|
|
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LRB094 10608 AMC 40929 b |
|
| 1 |
| (760 ILCS 100/9.4 new)
| 2 |
| Sec. 9.4. License renewal process. Once the licensee has | 3 |
| filed for license renewal, the expiring license shall remain in | 4 |
| effect until the renewal has been issued. Upon approval of the | 5 |
| Comptroller, the Comptroller shall issue a license renewal to | 6 |
| be posted in the place of business of the licensee.
| 7 |
| (760 ILCS 100/10) (from Ch. 21, par. 64.10)
| 8 |
| Sec. 10. Upon receipt of such application for license or | 9 |
| license renewal , the Comptroller shall
issue a license or | 10 |
| license renewal to the applicant unless the Comptroller | 11 |
| determines that:
| 12 |
| (a) The applicant has made any misrepresentations or false | 13 |
| statements or
has concealed any essential or material fact, or
| 14 |
| (b) The applicant is insolvent; or
| 15 |
| (c) The applicant is or has been using practices in the | 16 |
| conducting of the
cemetery business that work or tend to work a | 17 |
| fraud; or
| 18 |
| (d) The applicant has refused to furnish or give pertinent | 19 |
| data to
the Comptroller; or
| 20 |
| (e) The applicant has failed to notify the Comptroller with | 21 |
| respect
to any material facts required in the application for | 22 |
| license under the
provisions of this Act; or
| 23 |
| (f) The applicant has failed to satisfy any enforceable | 24 |
| judgment entered by
the circuit court in any civil proceedings | 25 |
| against such applicant; or
| 26 |
| (g) The applicant has conducted or is about to conduct its | 27 |
| business
in a fraudulent manner; or
| 28 |
| (h) The applicant or any individual listed
in the license
| 29 |
| or license renewal application has
conducted or is about to | 30 |
| conduct any business on behalf of the applicant in
a fraudulent | 31 |
| manner; or has been convicted of a felony or any misdemeanor
of | 32 |
| which an essential element is fraud; or has been involved in | 33 |
| any civil
litigation in which a judgment has been entered | 34 |
| against him or her based on
fraud; or has failed to satisfy any | 35 |
| enforceable judgment entered
by the circuit court in any civil |
|
|
|
SB0482 |
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LRB094 10608 AMC 40929 b |
|
| 1 |
| proceedings against such individual; or has
been convicted of | 2 |
| any felony of which fraud is an essential element; or has
been | 3 |
| convicted of any theft-related
offense;
or has failed to comply | 4 |
| with the requirements of this Act;
or has demonstrated a | 5 |
| pattern of
improperly failing to honor a
contract with a | 6 |
| consumer; or
| 7 |
| (i) The applicant has ever had a license involving | 8 |
| cemeteries or funeral
homes revoked, suspended, or refused to | 9 |
| be issued in Illinois or elsewhere.
| 10 |
| If the Comptroller so determines, then he or she shall | 11 |
| conduct a hearing to
determine whether to deny the application | 12 |
| for license or license renewal . However, no application for | 13 |
| license or license renewal shall be
denied unless the applicant | 14 |
| or licensee has had at least 10 days' notice of a hearing on
| 15 |
| the application and an opportunity to be heard thereon. If the | 16 |
| application for license or license renewal is
denied, the | 17 |
| Comptroller shall within 20 days thereafter prepare and keep on
| 18 |
| file in his or her office the transcript of the evidence taken | 19 |
| and a written
order of denial thereof, which shall contain his | 20 |
| or her findings with respect
thereto and the reasons supporting | 21 |
| the denial, and shall send by United States
mail a copy of the | 22 |
| written order of denial to the applicant at the address set
| 23 |
| forth in the application for license or license renewal , within | 24 |
| 5 days after the filing of such order. A
review of such | 25 |
| decision may be had as provided in Section 20 of this Act.
| 26 |
| The license or license renewal issued by the Comptroller | 27 |
| shall remain in full force and
effect until it expires or is | 28 |
| surrendered by the licensee or revoked by the
Comptroller as | 29 |
| hereinafter provided.
| 30 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 31 |
| (760 ILCS 100/11) (from Ch. 21, par. 64.11)
| 32 |
| Sec. 11. Issuance and display of license. A license issued | 33 |
| under this Act authorizes the
cemetery authority to accept care | 34 |
| funds for the cemetery
identified in the license. If a license
| 35 |
| application seeks licensure to accept care funds on behalf
of |
|
|
|
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LRB094 10608 AMC 40929 b |
|
| 1 |
| more than one cemetery location, the Comptroller, upon
approval | 2 |
| of the license application, shall issue to the
cemetery | 3 |
| authority a separate license for each cemetery
location | 4 |
| indicated on the application. Each license issued
by the | 5 |
| Comptroller under this Act is independent of any
other license | 6 |
| that may be issued to a cemetery authority
under a single | 7 |
| license application.
| 8 |
| Every license issued by the Comptroller shall state the | 9 |
| number of the
license and the address at which the business is | 10 |
| to be conducted. Such
license shall be kept conspicuously | 11 |
| posted in the place of business of the
licensee and shall not | 12 |
| be transferable or assignable.
| 13 |
| No more than one place of business shall be maintained | 14 |
| under the same
license, but the Comptroller may issue more than | 15 |
| one license to the same
licensee upon compliance with the | 16 |
| provisions of this Act governing an
original issuance of a | 17 |
| license, for each new license.
| 18 |
| Whenever a licensee shall wish to change the name as | 19 |
| originally set
forth in his license, he shall give written | 20 |
| notice thereof to the
Comptroller together with the reasons for | 21 |
| the change and if the change is
approved by the Comptroller he | 22 |
| shall issue a new license.
| 23 |
| A license issued by the Comptroller shall remain in full
| 24 |
| force and effect until it expires or is surrendered by the | 25 |
| licensee or
suspended or revoked by the Comptroller as
provided | 26 |
| in this Act.
| 27 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 28 |
| (760 ILCS 100/14) (from Ch. 21, par. 64.14)
| 29 |
| Sec. 14. The Comptroller may at any time investigate the | 30 |
| cemetery business
of every licensee with respect to its care | 31 |
| funds. The Comptroller shall
examine at least annually every | 32 |
| licensee who holds $750,000
$250,000 or more in
its care funds. | 33 |
| For that purpose, the Comptroller shall have free access
to the | 34 |
| office and places of business and to such records of all
| 35 |
| licensees and of all trustees of the care funds of all |
|
|
|
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| 1 |
| licensees as
shall relate to the acceptance, use and investment | 2 |
| of care funds. The
Comptroller may require the attendance of | 3 |
| and examine under oath all
persons whose testimony he may | 4 |
| require relative to such business and in
such cases the | 5 |
| Comptroller or any qualified representative of the
Comptroller | 6 |
| whom the Comptroller may designate, may administer oaths to
all | 7 |
| such persons called as witnesses, and the Comptroller, or any | 8 |
| such
qualified representative of the Comptroller, may conduct | 9 |
| such
examinations. The cost of an initial examination
shall be | 10 |
| borne by the
cemetery authority if it has $10,000 or more in | 11 |
| such fund; otherwise, by
the Comptroller. The charge made by | 12 |
| the Comptroller for such examination
shall be based upon the | 13 |
| total amount of care funds held by the cemetery
authority as of | 14 |
| the end of the calendar or fiscal year for which a
report is | 15 |
| required by Section 12 of this Act and shall be in accordance
| 16 |
| with the following schedule:
| 17 |
| less than $10,000 .............................no charge;
| 18 |
| $10,000 or more but less than
| 19 |
| $50,000 .........................................$10;
| 20 |
| $50,000 or more but less than
| 21 |
| $100,000 ........................................$40;
| 22 |
| $100,000 or more but less than
| 23 |
| $250,000 ........................................$80;
| 24 |
| $250,000 or more ........................................$100.
| 25 |
| Any licensee which is not required to be examined annually | 26 |
| shall submit
an annual report to the Comptroller containing | 27 |
| such information as the
Comptroller reasonably may request.
| 28 |
| The Comptroller may order additional audits or | 29 |
| examinations as he or she
may deem necessary or advisable to | 30 |
| ensure the safety and stability of the trust
funds and to | 31 |
| ensure compliance with this Act. These additional audits or
| 32 |
| examinations shall only be made after good cause is established | 33 |
| by the
Comptroller in the written order. The grounds for | 34 |
| ordering these additional
audits or examinations may include, | 35 |
| but shall not be limited to:
| 36 |
| (1) material and unverified changes or fluctuations in |
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|
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| trust balances;
| 2 |
| (2) the licensee changing trustees more than twice in | 3 |
| any 12-month
period;
| 4 |
| (3) any withdrawals or attempted withdrawals from the | 5 |
| trusts in violation
of this Act; or
| 6 |
| (4) failure to maintain or produce documentation | 7 |
| required by this Act for
deposits into trust accounts or | 8 |
| trust investment activities.
| 9 |
| Prior to ordering an additional audit or examination, the | 10 |
| Comptroller shall
request the licensee to respond and comment | 11 |
| upon the factors identified by the
Comptroller as warranting | 12 |
| the subsequent examination or audit. The licensee
shall have 30 | 13 |
| days to provide a response to the Comptroller. If the
| 14 |
| Comptroller decides to proceed with the additional examination | 15 |
| or audit, the
licensee shall bear the full cost of that | 16 |
| examination or audit, up to a maximum
of $7,500. The
| 17 |
| Comptroller may elect to pay for the examination or audit and | 18 |
| receive
reimbursement from the licensee. Payment of the costs | 19 |
| of the examination or
audit by a licensee shall be a condition | 20 |
| of receiving or maintaining a license
under this Act. All | 21 |
| moneys received by the Comptroller for examination or
audit | 22 |
| fees shall be maintained in a separate account to be known as | 23 |
| the
Comptroller's Administrative
Fund. This Fund,
subject to | 24 |
| appropriation by the General Assembly, may
be utilized by the | 25 |
| Comptroller for
enforcing this Act and other purposes that may | 26 |
| be authorized by law.
| 27 |
| (Source: P.A. 89-615, eff. 8-9-96.)
| 28 |
| (760 ILCS 100/15) (from Ch. 21, par. 64.15)
| 29 |
| Sec. 15. The Comptroller may, upon 10 days' notice to the | 30 |
| licensee, by
United
States mail directed to the licensee at the | 31 |
| address set forth in the
license, stating the contemplated | 32 |
| action and, in general, the grounds
therefor, and upon | 33 |
| reasonable opportunity to be heard prior to such action,
revoke | 34 |
| of fail to renew any license issued hereunder if he finds that:
| 35 |
| (a) The licensee has failed to make the annual report
or to |
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| maintain in effect the required bond or to comply with an | 2 |
| order,
decision, or finding of the Comptroller made pursuant to | 3 |
| this Act; or that
| 4 |
| (b) The licensee has violated any provision of this Act or | 5 |
| any
regulation or direction made by the Comptroller under this | 6 |
| Act; or that
| 7 |
| (c) Any fact or condition exists which would constitute | 8 |
| grounds for
denying an application for a new license or license | 9 |
| renewal .
| 10 |
| (Source: P.A. 91-7, eff. 6-1-99.)
| 11 |
| (760 ILCS 100/15.3) (from Ch. 21, par. 64.15-3)
| 12 |
| Sec. 15.3.
| 13 |
| Every license issued hereunder shall remain in force until | 14 |
| the same expires or has
been surrendered or revoked in | 15 |
| accordance with this Act, but the
Comptroller may on his own | 16 |
| motion, issue new licenses to a licensee whose
license or | 17 |
| licenses have been revoked if no fact or condition then exists
| 18 |
| which clearly would have warranted the Comptroller in refusing | 19 |
| originally
the issuance of such license under this Act.
| 20 |
| (Source: P.A. 78-592.)
| 21 |
| (760 ILCS 100/15.4) (from Ch. 21, par. 64.15-4)
| 22 |
| Sec. 15.4. No license shall be revoked or not renewed until | 23 |
| the licensee has had at least
10 days' notice of a hearing | 24 |
| thereon and an opportunity to be heard. When any
license is so | 25 |
| revoked or not renewed , the Comptroller shall within 20 days | 26 |
| thereafter,
prepare and keep on file in his office the | 27 |
| transcript of the evidence taken
and a written order or | 28 |
| decision of revocation, and shall send by United
States mail a | 29 |
| copy of such order or decision of revocation or failure to | 30 |
| renew to the licensee
at the address set forth in the license | 31 |
| within 5 days after the filing in
his office of such order, | 32 |
| finding or decision. A review of any such order,
finding or | 33 |
| decision may be had as provided in Section 19 of this Act.
| 34 |
| (Source: P.A. 83-333.)
|
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| (760 ILCS 100/18) (from Ch. 21, par. 64.18)
| 2 |
| Sec. 18. Application; when bond is unnecessary. The | 3 |
| provisions of this Act as
to the (a) registration, (b) | 4 |
| application for license or license renewal , (c) filing of a | 5 |
| fidelity
bond, (d) filing of an annual report, and (e) | 6 |
| examination by the Comptroller,
apply to a cemetery authority | 7 |
| owning, operating, controlling or managing a
privately | 8 |
| operated cemetery whether the care funds are held by such | 9 |
| cemetery
authority as trustee or by any independent trustee for | 10 |
| the same.
However, no bond need be filed with
the Comptroller | 11 |
| as to care funds of such cemetery authority held as trustee by
| 12 |
| a bank or trust company authorized to do business in this State | 13 |
| as a trust
company in accordance with Section 2-10 of the | 14 |
| Corporate Fiduciary Act or held
by an investment company.
| 15 |
| Upon application by such cemetery authority to the | 16 |
| Comptroller, and upon
a showing that all of the care funds of | 17 |
| such cemetery authority are held by
such bank or trust company | 18 |
| as trustee for such cemetery authority pursuant to
an agreement | 19 |
| in writing approved from time to time by the Comptroller for | 20 |
| the
handling and management of all of the care funds of such | 21 |
| cemetery authority, or
are held by an investment company, the | 22 |
| Comptroller in writing may permit the
licensee to operate | 23 |
| without the filing of any bond as to such care funds except
| 24 |
| such fidelity bond as he or she may require for the protection | 25 |
| of such cemetery
authority against defaults by its employees | 26 |
| engaged in the handling and
collection of funds.
| 27 |
| (Source: P.A. 88-477; 89-615, eff. 8-9-96.)
| 28 |
| Section 20. The Illinois Pre-Need Cemetery Sales Act is | 29 |
| amended by changing Sections 7, 8, 9, 12, and 14 and by adding | 30 |
| Sections 6a, 6b, 6c, and 6d as follows: | 31 |
| (815 ILCS 390/6a new)
| 32 |
| Sec. 6a. Term of license. | 33 |
| (a) Any license that was issued under this Act before the |
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| effective date of this amendatory Act of the 94th General | 2 |
| Assembly shall expire 5 years after the effective date of this | 3 |
| amendatory Act of the 94th General Assembly and must thereafter | 4 |
| be renewed as provided in this Act. Beginning on the effective | 5 |
| date of this amendatory Act of the 94th General Assembly, a | 6 |
| license or license renewal shall be issued for a 5-year term, | 7 |
| which shall expire as provided in this Act. | 8 |
| (b) The Comptroller by rule may adopt a system under which | 9 |
| licenses must be renewed by various dates during the year, | 10 |
| coinciding with the due date of the annual report of the | 11 |
| licensee or any extensions thereof. | 12 |
| (815 ILCS 390/6b new)
| 13 |
| Sec. 6b. Requirements for license renewal. In order to | 14 |
| complete the license renewal process, the licensee shall submit | 15 |
| a license renewal application to the Comptroller in writing | 16 |
| under oath, signed by the applicant and in the form furnished | 17 |
| by the Comptroller upon date of renewal. The Comptroller may | 18 |
| prescribe abbreviated license renewal application forms for | 19 |
| persons holding a license under the Cemetery Care Act. Each | 20 |
| renewal application (except abbreviated applications) shall | 21 |
| contain all of the following: | 22 |
| (1) An affirmative statement indicating the licensee's | 23 |
| desire for renewal and agreement to abide by all applicable | 24 |
| statutes and rules. | 25 |
| (2) A $25 nonrefundable renewal fee. | 26 |
| (3) A completed annual report. | 27 |
| (4) The following information for the applicant, and | 28 |
| each member, officer, and director thereof, if the | 29 |
| applicant is a firm, partnership, association, or | 30 |
| corporation, and each shareholder holding more than 10% of | 31 |
| the corporate stock, if the applicant is a corporation: | 32 |
| (A) His or her name and current address (both | 33 |
| residence and place of business).
| 34 |
| (B) A detailed statement of the individual's | 35 |
| business experience for the 10 years immediately |
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| preceding the application. | 2 |
| (C) Any present or prior connection between the | 3 |
| individual and any other person engaged in pre-need | 4 |
| sales. | 5 |
| (D) Any felony or misdemeanor convictions of which | 6 |
| fraud was an essential element and any charges or | 7 |
| complaints lodged against the individual of which | 8 |
| fraud was an essential element and that resulted in | 9 |
| civil or criminal litigation. | 10 |
| (E) Any failure of the individual to satisfy an | 11 |
| enforceable judgment entered against him or her based | 12 |
| upon fraud. | 13 |
| (F) Any other information requested by the | 14 |
| Comptroller relating to past
business practices of the | 15 |
| individual. | 16 |
| Since the information required by this item (4) may be | 17 |
| confidential or contain proprietary information, this | 18 |
| information shall not be available to other licensees or | 19 |
| the general public and shall be used only for the lawful | 20 |
| purposes of the Comptroller in enforcing this Act.
| 21 |
| (5) A detailed statement of the licensee's current | 22 |
| assets and liabilities. | 23 |
| (6) The current name and address of the licensee's | 24 |
| principal place of business at which the books, accounts, | 25 |
| and records are available for examination by the | 26 |
| Comptroller as required by this Act. | 27 |
| (7) The current name and address of the licensee's | 28 |
| branch locations at which pre-need sales are conducted and | 29 |
| that operate under the same license number as the | 30 |
| licensee's principal place of business. | 31 |
| (8) A current copy of the trust agreement under which | 32 |
| the trust funds are to be held as required by this Act. | 33 |
| (9) Such other information as the Comptroller may | 34 |
| reasonably require in order to determine whether the | 35 |
| licensee's renewal application qualifies under this Act. |
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LRB094 10608 AMC 40929 b |
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| (815 ILCS 390/6c new)
| 2 |
| Sec. 6c. Remedy for delinquent license renewal. | 3 |
| (a) If a licensee continues to conduct activities requiring | 4 |
| a license but fails to submit a completed license renewal | 5 |
| application to the Comptroller within the time specified in | 6 |
| this Act, the Comptroller shall impose upon the licensee a | 7 |
| penalty of $5 for each day the licensee remains delinquent in | 8 |
| submitting the application. The Comptroller may abate all or | 9 |
| part of the $5 daily penalty for good cause shown. | 10 |
| (b) In the event the renewal application is denied by the | 11 |
| Comptroller, the renewal fee paid is not refundable. | 12 |
| (815 ILCS 390/6d new)
| 13 |
| Sec. 6d. License renewal process.
Once the licensee has | 14 |
| filed for license renewal, the expiring license shall remain in | 15 |
| effect until the renewal has been issued. Upon approval of the | 16 |
| Comptroller, the Comptroller shall issue a license renewal to | 17 |
| be posted in the place of business of the licensee.
| 18 |
| (815 ILCS 390/7) (from Ch. 21, par. 207)
| 19 |
| Sec. 7. The Comptroller may refuse to issue or renew a | 20 |
| license or may suspend or revoke
a license on any of the | 21 |
| following grounds:
| 22 |
| (a) The applicant or licensee has made any | 23 |
| misrepresentations or false
statements or concealed any | 24 |
| material fact;
| 25 |
| (b) The applicant or licensee is insolvent;
| 26 |
| (c) The applicant or licensee has been engaged in business | 27 |
| practices that
work a fraud;
| 28 |
| (d) The applicant or licensee has refused to give pertinent | 29 |
| data to the
Comptroller;
| 30 |
| (e) The applicant or licensee has failed to satisfy any | 31 |
| enforceable
judgment or decree rendered by any court of | 32 |
| competent jurisdiction against
the applicant;
| 33 |
| (f) The applicant or licensee has conducted or is about to | 34 |
| conduct
business in a fraudulent manner;
|
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| (g) The trust agreement is not in compliance
with State or | 2 |
| federal law;
| 3 |
| (h) The pre-construction performance bond, if applicable, | 4 |
| is not
satisfactory to the Comptroller;
| 5 |
| (i) The fidelity bond is not satisfactory to the | 6 |
| Comptroller;
| 7 |
| (j) As to any individual listed in the license application | 8 |
| for license or license renewal as required
pursuant to Section | 9 |
| 6 or 6b , that individual has conducted
or is
about to conduct | 10 |
| any business on behalf of the applicant in a fraudulent
manner, | 11 |
| has been convicted of any felony or misdemeanor an essential
| 12 |
| element of which is fraud, has had a judgment rendered against | 13 |
| him or her
based on
fraud in any civil litigation, has failed | 14 |
| to satisfy any enforceable
judgment or decree rendered against | 15 |
| him by any court of competent
jurisdiction, or has been | 16 |
| convicted of any felony or any theft-related
offense;
| 17 |
| (k) The applicant or licensee has failed to make the annual | 18 |
| report
required by this Act or to comply with a final order, | 19 |
| decision, or finding
of the Comptroller made pursuant to this | 20 |
| Act;
| 21 |
| (l) The applicant or licensee, including any member, | 22 |
| officer, or director
thereof if the applicant or licensee is a | 23 |
| firm, partnership, association, or
corporation and any | 24 |
| shareholder holding more than 10% of the corporate stock,
has | 25 |
| violated any provision of this Act
or
any regulation or order | 26 |
| made by the Comptroller under this Act; or
| 27 |
| (m) The Comptroller finds any fact or condition existing | 28 |
| which, if it
had existed at the time of the original | 29 |
| application for such license or renewal of such license would
| 30 |
| have warranted the Comptroller in refusing the issuance or | 31 |
| renewal of the license.
| 32 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 33 |
| (815 ILCS 390/8) (from Ch. 21, par. 208)
| 34 |
| Sec. 8. (a) Every license issued by the Comptroller shall | 35 |
| state the
number of the license, the business name and address |
|
|
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| 1 |
| of the licensee's
principal place of business, each branch | 2 |
| location also operating under the
license, and the licensee's | 3 |
| parent company, if any. The license shall be
conspicuously | 4 |
| posted in
each place of business operating under the license. | 5 |
| The Comptroller may issue
additional licenses as may be | 6 |
| necessary for license branch locations upon compliance with the | 7 |
| provisions of this Act
governing an original issuance of a | 8 |
| license for each new license.
| 9 |
| (b) Individual salespersons representing a licensee
shall | 10 |
| not be required
to obtain licenses in their individual | 11 |
| capacities
but must acknowledge, by affidavit, that they have
| 12 |
| been provided a copy of and have read this Act. The licensee | 13 |
| must
retain copies of the affidavits of its salespersons for | 14 |
| its
records and must make the affidavits available to the
| 15 |
| Comptroller for examination upon request.
| 16 |
| (c) The licensee shall be responsible for the activities of | 17 |
| any person
representing the licensee in selling or offering a | 18 |
| pre-need contract for sale.
| 19 |
| (d) Any person not selling on behalf of a
licensee
shall be | 20 |
| required to obtain his or her own license.
| 21 |
| (e) Any person engaged in pre-need sales, as defined | 22 |
| herein, prior to
the effective date of this Act may continue | 23 |
| operations until the application
for license under this Act is | 24 |
| denied; provided that such person shall make
application for a | 25 |
| license within 60 days of the date that application forms
are | 26 |
| made available by the Comptroller.
| 27 |
| (f) No license shall be transferable or assignable without | 28 |
| the express
written consent of the Comptroller. A transfer of | 29 |
| more than 50% of the
ownership of any business licensed | 30 |
| hereunder shall be deemed to be an attempted
assignment of the | 31 |
| license originally issued to the licensee for which consent
of | 32 |
| the Comptroller shall be required.
| 33 |
| (g) Every license issued hereunder shall remain in force | 34 |
| until the same
expires or has been suspended, surrendered or | 35 |
| revoked in accordance with this Act,
but the Comptroller, upon | 36 |
| the request of an interested person or on his
own motion, may |
|
|
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LRB094 10608 AMC 40929 b |
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| 1 |
| issue new licenses to a licensee whose license or licenses
have | 2 |
| been revoked, if no factor or condition then exists which would | 3 |
| have
warranted the Comptroller in refusing originally the | 4 |
| issuance of such license.
| 5 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 6 |
| (815 ILCS 390/9) (from Ch. 21, par. 209)
| 7 |
| Sec. 9. The Comptroller may upon his own motion investigate | 8 |
| the actions
of any person providing, selling, or offering | 9 |
| pre-need sales contracts
or of any applicant
or any person or | 10 |
| persons holding or claiming to hold
a license under this Act. | 11 |
| The Comptroller shall make such an investigation
on receipt of | 12 |
| the verified written complaint of any person setting forth
| 13 |
| facts which, if proved, would constitute grounds for refusal to | 14 |
| issue or renew , suspension,
or revocation of a license.
Before | 15 |
| refusing to issue or renew , and before suspension or revocation | 16 |
| of a license,
the Comptroller shall hold a hearing to determine | 17 |
| whether the applicant or
licensee,
hereafter called the | 18 |
| respondent, is entitled to hold
such a license. At
least 10 | 19 |
| days prior to the date set for such hearing, the Comptroller | 20 |
| shall
notify the respondent in writing that on the date | 21 |
| designated a hearing
will be held to determine his eligibility | 22 |
| for a license and that he may
appear in person or by counsel. | 23 |
| Such written notice may be served on the
respondent personally, | 24 |
| or by registered or certified mail sent to the
respondent's
| 25 |
| business address as shown in his latest notification to the | 26 |
| Comptroller and
shall include sufficient information to inform | 27 |
| the respondent of the general
nature of the charge. At the | 28 |
| hearing, both the respondent and the complainant
shall be | 29 |
| accorded ample opportunity to present in person or by counsel | 30 |
| such
statements, testimony, evidence and argument as may be | 31 |
| pertinent to the
charges or to any defense thereto. The | 32 |
| Comptroller may reasonably continue
such hearing from time to | 33 |
| time.
| 34 |
| The Comptroller may subpoena any person or persons in this | 35 |
| State and take
testimony orally, by deposition or by exhibit, |
|
|
|
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| 1 |
| in the same manner and with
the same fees and mileage as | 2 |
| prescribed in judicial proceedings in civil cases.
| 3 |
| Any authorized agent of the Comptroller may administer | 4 |
| oaths to witnesses
at any hearing which the Comptroller is | 5 |
| authorized to conduct.
| 6 |
| The Comptroller, at his expense, shall provide a certified | 7 |
| shorthand reporter
to take down the testimony and preserve a | 8 |
| record of all proceedings at the
hearing of any case involving | 9 |
| the refusal to issue or renew a license, the suspension
or | 10 |
| revocation of a license, the imposition of a monetary penalty, | 11 |
| or the
referral
of a case for criminal prosecution. The record | 12 |
| of any such proceeding shall
consist of the notice of hearing, | 13 |
| complaint, all other documents in the
nature of pleadings and | 14 |
| written motions filed in the proceedings, the
transcript
of | 15 |
| testimony and the report and orders of the Comptroller. Copies | 16 |
| of the
transcript of such record may be purchased from the | 17 |
| certified shorthand
reporter
who prepared the record or from | 18 |
| the Comptroller.
| 19 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 20 |
| (815 ILCS 390/12) (from Ch. 21, par. 212)
| 21 |
| Sec. 12. License nonrenewal, revocation , or suspension.
| 22 |
| (a) The Comptroller may, upon determination that grounds
| 23 |
| exist for the revocation or suspension or nonrenewal of a | 24 |
| license issued
under this Act, revoke or suspend , or fail to | 25 |
| renew , if appropriate, the license issued to a
licensee or to a
| 26 |
| particular branch office location with respect to which the
| 27 |
| grounds for revocation ,
or suspension , or failure to renew may | 28 |
| occur or exist.
| 29 |
| (b) Upon the nonrenewal, revocation , or suspension of any | 30 |
| license, the
licensee shall immediately surrender the license | 31 |
| or licenses to the Comptroller. If the licensee fails to do so, | 32 |
| the
Comptroller has the right to seize the license or licenses.
| 33 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 34 |
| (815 ILCS 390/14) (from Ch. 21, par. 214)
|
|
|
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|
| 1 |
| Sec. 14. Contract required.
| 2 |
| (a) It is unlawful for any person doing business within | 3 |
| this
State to accept sales proceeds, either directly or | 4 |
| indirectly, by any
means unless the seller enters into a | 5 |
| pre-need sales
contract
with the
purchaser which meets the | 6 |
| following requirements:
| 7 |
| (1) A written sales contract shall be executed in at | 8 |
| least 11 point
type in duplicate for
each pre-need sale | 9 |
| made by a licensee, and a signed copy given to the
| 10 |
| purchaser. Each completed contract shall be numbered and | 11 |
| shall contain: (i)
the
name and address of the purchaser, | 12 |
| the principal office
of the licensee, and the parent | 13 |
| company of the licensee; (ii) the name
of the person,
if | 14 |
| known, who
is to receive the cemetery merchandise, cemetery | 15 |
| services or the
completed interment, entombment or | 16 |
| inurnment spaces under the contract; and
(iii) specific | 17 |
| identification of such
merchandise, type of services to be | 18 |
| held by cemetery or crematory personnel, or spaces to be | 19 |
| provided, if a specific space or spaces
are contracted for, | 20 |
| and
the price of the merchandise, services, or space or | 21 |
| spaces ; (iv) the location of the spaces to be provided, if | 22 |
| a specific space is contracted for, indicated on an overall | 23 |
| map of the site of the interment, entombment, or inurnment | 24 |
| spaces; and (v) a description of the type of care furnished | 25 |
| by a provider holding a valid license under the Cemetery | 26 |
| Care Act that is being purchased to maintain the interment, | 27 |
| entombment, or inurnment space, if a specific space is | 28 |
| contracted for. If no care is included in the contract, the | 29 |
| contract shall state in 11-point type "This contract does | 30 |
| not include maintenance care.", and this statement shall be | 31 |
| initialed by the purchaser. | 32 |
| (1.5) Each contract shall include a current copy of the | 33 |
| provider's rules and regulations pertaining to the site of | 34 |
| the completed interment, entombment, or inurnment spaces, | 35 |
| if such spaces are to be provided under the contract .
| 36 |
| (2) In addition,
such contracts must contain a |
|
|
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|
| 1 |
| provision in distinguishing typeface as follows:
| 2 |
| "Notwithstanding anything in this contract to the | 3 |
| contrary, you are
afforded certain specific rights of | 4 |
| cancellation and refund under the Illinois Pre-Need | 5 |
| Cemetery Sales Act, enacted by the 84th
General Assembly of | 6 |
| the State of Illinois".
| 7 |
| (3) All pre-need sales contracts shall be sold on a | 8 |
| guaranteed price
basis.
At the time of performance of the | 9 |
| service or delivery of the merchandise,
the seller shall be | 10 |
| prohibited from assessing the purchaser or
his heirs or
| 11 |
| assigns or duly authorized representative any additional | 12 |
| charges for the
specific merchandise and services listed on | 13 |
| the pre-need sales contract.
| 14 |
| (4) Each contract shall clearly disclose that the price | 15 |
| of the
merchandise or services is guaranteed and shall | 16 |
| contain the following
statement in 12 point bold type:
| 17 |
| "THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC | 18 |
| GOODS,
SERVICES, INTERMENT SPACES, ENTOMBMENT SPACES, AND | 19 |
| INURNMENT SPACES
CONTRACTED FOR. NO ADDITIONAL CHARGES MAY | 20 |
| BE REQUIRED FOR
DESIGNATED GOODS, SERVICES, AND SPACES. | 21 |
| ADDITIONAL CHARGES MAY
BE INCURRED FOR
UNEXPECTED | 22 |
| EXPENSES."
| 23 |
| (5) The pre-need sales contract shall provide that
if | 24 |
| the particular cemetery services, cemetery
merchandise, or | 25 |
| spaces specified in the pre-need
contract are unavailable | 26 |
| at the time of delivery, the
seller shall be required to | 27 |
| furnish services,
merchandise, and spaces similar in style | 28 |
| and at least
equal in quality of material and workmanship.
| 29 |
| (6) The pre-need contract shall also disclose any
| 30 |
| specific penalties to be incurred by the purchaser as a
| 31 |
| result of failure to make payments; and penalties to be
| 32 |
| incurred or moneys or refunds to be received as a result
of | 33 |
| cancellation of the contract.
| 34 |
| (7) The pre-need contract shall disclose the nature
of | 35 |
| the relationship between the provider and the seller.
| 36 |
| (8) Each pre-need contract that authorizes the |
|
|
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| delivery
of cemetery merchandise to a licensed and bonded | 2 |
| warehouse
shall provide that prior to or upon delivery of | 3 |
| the
merchandise to the warehouse
the title to the | 4 |
| merchandise and a warehouse receipt shall
be delivered to | 5 |
| the purchaser or beneficiary. The pre-need
contract shall | 6 |
| contain the following statement in 12 point
bold type:
| 7 |
| "THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO
A | 8 |
| LICENSED AND BONDED WAREHOUSE FOR STORAGE OF THE
| 9 |
| MERCHANDISE UNTIL THE MERCHANDISE IS NEEDED BY THE
| 10 |
| BENEFICIARY. DELIVERY OF THE MERCHANDISE IN THIS MANNER MAY
| 11 |
| PRECLUDE REFUND OF SALE PROCEEDS THAT ARE ATTRIBUTABLE TO
| 12 |
| THE DELIVERED MERCHANDISE."
| 13 |
| The purchaser shall initial the statement at the time | 14 |
| of
entry into the pre-need contract.
| 15 |
| (9) Each pre-need contract that authorizes the | 16 |
| placement
of cemetery merchandise at the site of its
| 17 |
| ultimate use prior to the time that the merchandise is | 18 |
| needed
by the beneficiary shall contain the following | 19 |
| statement in
12 point bold type:
| 20 |
| "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE
AT | 21 |
| THE SITE OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
| 22 |
| MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
| 23 |
| MERCHANDISE IN THIS MANNER MAY PRECLUDE REFUND OF SALE
| 24 |
| PROCEEDS THAT ARE ATTRIBUTABLE TO THE DELIVERED
| 25 |
| MERCHANDISE."
| 26 |
| The purchaser shall initial the statement at the time | 27 |
| of
entry into the pre-need contract.
| 28 |
| (b) Every pre-need sales contract must be in writing.
The | 29 |
| Comptroller may by rule
develop a model pre-need sales contract | 30 |
| form that meets the requirements
of this Act.
| 31 |
| (c) To the extent the Rule is applicable, every pre-need | 32 |
| sales
contract is subject to the Federal Trade Commission Rule | 33 |
| concerning the
Cooling-Off Period for Door-to-Door Sales (16 | 34 |
| CFR Part 429).
| 35 |
| (d) No pre-need sales contract may be entered into in
this | 36 |
| State unless there is a provider for the cemetery
merchandise, |
|
|
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| cemetery services, and undeveloped interment,
inurnment, and | 2 |
| entombment spaces being sold. If the seller
is not the | 3 |
| provider, then the seller must have a binding
agreement with a | 4 |
| provider, and the identity of the provider
and the nature of | 5 |
| the agreement between the seller and the
provider must be | 6 |
| disclosed in the pre-need sales contract
at the time of sale | 7 |
| and before the receipt of any sale
proceeds. The purchaser | 8 |
| shall make personal contact with the provider and visit the | 9 |
| site of the undeveloped interment, inurnment, or entombment | 10 |
| spaces being sold, unless the purchaser waives his or her right | 11 |
| to do so. Each pre-need contract that is sold by a seller who | 12 |
| is not the provider shall contain the following statements in | 13 |
| 12-point bold type and the applicable statements shall be | 14 |
| initialed by the purchaser: | 15 |
| "I HAVE MADE PERSONAL CONTACT WITH THE PROVIDER OF THE | 16 |
| CEMETERY MERCHANDISE, CEMETERY SERVICES, OR UNDEVELOPED | 17 |
| INTERMENT, INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS | 18 |
| CONTRACT. | 19 |
| I HAVE VISITED THE SITE OF THE UNDEVELOPED INTERMENT, | 20 |
| INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 21 |
| I HAVE WAIVED MY RIGHT TO MAKE PERSONAL CONTACT AND/OR | 22 |
| VISIT THE PROVIDER OF THE CEMETERY MERCHANDISE, CEMETERY | 23 |
| SERVICES, OR UNDEVELOPED INTERMENT, INURNMENT, OR | 24 |
| ENTOMBMENT SPACES BEING SOLD IN THIS CONTRACT. | 25 |
| A COPY OF THE PROVIDER'S RULES AND REGULATIONS HAS BEEN | 26 |
| MADE AVAILABLE TO ME." | 27 |
| A separate completed contract shall be issued for funeral | 28 |
| merchandise or funeral services covered by the Illinois Funeral | 29 |
| or Burial Funds Act, and
not covered by this Act, unless the | 30 |
| seller is licensed under both Acts and all disclosures are in | 31 |
| compliance with both Acts. The failure to disclose the identity | 32 |
| of the
provider, the nature of the agreement between the seller
| 33 |
| and the provider, or any changes thereto to the purchaser
and | 34 |
| beneficiary, or the failure to make the disclosures
required by | 35 |
| this Section constitutes an intentional
violation of this Act.
| 36 |
| (e) No pre-need contract may be entered into in this
State |
|
|
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|
| 1 |
| unless it is accompanied by a funding mechanism
permitted under | 2 |
| this Act and unless the seller is
licensed by the Comptroller | 3 |
| as provided in this Act.
Nothing in this Act is intended to | 4 |
| relieve providers or
sellers of pre-need contracts from being | 5 |
| licensed under any
other Act required for their profession or | 6 |
| business or from
being subject to the rules promulgated to | 7 |
| regulate their
profession or business, including rules on | 8 |
| solicitation and
advertisement.
| 9 |
| (f) No pre-need contract may be entered into in this
State | 10 |
| unless the seller explains to the
purchaser the terms of the | 11 |
| pre-need contract prior to the
purchaser signing and the | 12 |
| purchaser initials a statement in the contract
confirming that | 13 |
| the seller has explained the terms of the contract prior to the
| 14 |
| purchaser signing.
| 15 |
| (g) The State Comptroller shall develop a booklet for
| 16 |
| consumers in plain English describing the scope,
application, | 17 |
| and consumer protections of this Act. After
the booklet is | 18 |
| developed, no pre-need contract may be
sold in this State | 19 |
| unless the seller
distributes to the purchaser prior to the | 20 |
| sale a booklet
developed or approved for use by the State | 21 |
| Comptroller.
| 22 |
| (Source: P.A. 91-7, eff. 1-1-00; 92-419, eff. 1-1-02.)
| 23 |
| Section 25. The Consumer Fraud and Deceptive Business | 24 |
| Practices Act is amended by adding Section 2VV as follows: | 25 |
| (815 ILCS 505/2VV new)
| 26 |
| Sec. 2VV. Cemetery or funeral contracts. No person | 27 |
| authorized by law to sell funeral services on an at need basis | 28 |
| may also sell cemetery services, cemetery merchandise, or | 29 |
| interment, inurnment, or entombment spaces on an at need basis, | 30 |
| unless the person is also authorized by law to sell such | 31 |
| cemetery services, merchandise, or spaces and issues to the | 32 |
| consumer a separate contract with the provider of such cemetery | 33 |
| services, merchandise, or spaces. | 34 |
| Each completed contract shall be numbered and shall |
|
|
|
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| 1 |
| contain: (i) the name and address of the purchaser, the name | 2 |
| and pertinent information of the person who is to receive the | 3 |
| cemetery services, merchandise, or spaces, and the name and | 4 |
| address of the seller; (ii) specific identification of such | 5 |
| merchandise, type of services to be held by cemetery or | 6 |
| crematory personnel, or spaces to be provided and the price of | 7 |
| the merchandise, services, or spaces; (iii) the location of the | 8 |
| space to be provided, if a specific space is contracted for, | 9 |
| indicated on an overall map of the site of the interment, | 10 |
| entombment, or inurnment space; and (iv) a description of the | 11 |
| type of care furnished by a provider holding a valid license | 12 |
| under the Cemetery Care Act that is being purchased to maintain | 13 |
| the interment, entombment, or inurnment space, if a specific | 14 |
| space is contracted for. If no care is included in the | 15 |
| contract, the contract shall state in 11-point bold type: "This | 16 |
| contract does not include maintenance care.", and this | 17 |
| statement shall be initialed by the purchaser. Each contract | 18 |
| shall include a current copy of the provider's rules and | 19 |
| regulations pertaining to the site of the interment, | 20 |
| entombment, or inurnment spaces, if such spaces are to be | 21 |
| provided under the contract.
The purchaser shall make personal | 22 |
| contact with the provider and visit the site of the undeveloped | 23 |
| interment, inurnment, or entombment spaces being sold, unless | 24 |
| the purchaser waives his or her right to do so. Each contract | 25 |
| that is sold by a seller who is not the provider shall contain | 26 |
| the following statements in 12-point bold type and the | 27 |
| applicable statements shall be initialed by the purchaser: | 28 |
| "I HAVE MADE PERSONAL CONTACT WITH THE PROVIDER OF THE | 29 |
| CEMETERY MERCHANDISE, CEMETERY SERVICES, OR INTERMENT, | 30 |
| INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 31 |
| I HAVE VISITED THE SITE OF THE INTERMENT, INURNMENT, OR | 32 |
| ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 33 |
| I HAVE WAIVED MY RIGHT TO MAKE PERSONAL CONTACT AND | 34 |
| VISIT THE PROVIDER OF THE CEMETERY MERCHANDISE, CEMETERY | 35 |
| SERVICES, OR INTERMENT, INURNMENT, OR ENTOMBMENT SPACES | 36 |
| BEING SOLD IN THIS CONTRACT." |
|
|
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|
| 1 |
| Any person who violates this Section commits an unlawful | 2 |
| practice within the meaning of this Act.
| 3 |
| Section 99. Effective date. This Act takes effect January | 4 |
| 1, 2006. |
|
|
|
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|
| 1 |
|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 225 ILCS 45/1a-1 |
|
| 4 |
| 225 ILCS 45/3a |
from Ch. 111 1/2, par. 73.103a |
| 5 |
| 225 ILCS 45/3a-1 new |
|
| 6 |
| 225 ILCS 45/3a-2 new |
|
| 7 |
| 225 ILCS 45/3a-3 new |
|
| 8 |
| 225 ILCS 45/3a-4 new |
|
| 9 |
| 225 ILCS 45/3a-5 |
|
| 10 |
| 225 ILCS 45/3f |
|
| 11 |
| 410 ILCS 18/10.1 new |
|
| 12 |
| 410 ILCS 18/10.2 new |
|
| 13 |
| 410 ILCS 18/10.3 new |
|
| 14 |
| 410 ILCS 18/10.4 new |
|
| 15 |
| 410 ILCS 18/11 |
|
| 16 |
| 410 ILCS 18/11.5 |
|
| 17 |
| 410 ILCS 18/13 |
|
| 18 |
| 410 ILCS 18/62.10 |
|
| 19 |
| 760 ILCS 100/7 |
from Ch. 21, par. 64.7 |
| 20 |
| 760 ILCS 100/8 |
from Ch. 21, par. 64.8 |
| 21 |
| 760 ILCS 100/9.1 new |
|
| 22 |
| 760 ILCS 100/9.2 new |
|
| 23 |
| 760 ILCS 100/9.3 new |
|
| 24 |
| 760 ILCS 100/9.4 new |
|
| 25 |
| 760 ILCS 100/10 |
from Ch. 21, par. 64.10 |
| 26 |
| 760 ILCS 100/11 |
from Ch. 21, par. 64.11 |
| 27 |
| 760 ILCS 100/14 |
from Ch. 21, par. 64.14 |
| 28 |
| 760 ILCS 100/15 |
from Ch. 21, par. 64.15 |
| 29 |
| 760 ILCS 100/15.3 |
from Ch. 21, par. 64.15-3 |
| 30 |
| 760 ILCS 100/15.4 |
from Ch. 21, par. 64.15-4 |
| 31 |
| 760 ILCS 100/18 |
from Ch. 21, par. 64.18 |
| 32 |
| 815 ILCS 390/6a new |
|
| 33 |
| 815 ILCS 390/6b new |
|
| 34 |
| 815 ILCS 390/6c new |
|
| 35 |
| 815 ILCS 390/6d new |
|
|
|
|
|
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|
| 1 |
| 815 ILCS 390/7 |
from Ch. 21, par. 207 |
| 2 |
| 815 ILCS 390/8 |
from Ch. 21, par. 208 |
| 3 |
| 815 ILCS 390/9 |
from Ch. 21, par. 209 |
| 4 |
| 815 ILCS 390/12 |
from Ch. 21, par. 212 |
| 5 |
| 815 ILCS 390/14 |
from Ch. 21, par. 214 |
| 6 |
| 815 ILCS 505/2VV new |
|
| |
|