Full Text of SB0482 94th General Assembly
SB0482sam001 94TH GENERAL ASSEMBLY
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Sen. Debbie DeFrancesco Halvorson
Filed: 3/7/2005
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| AMENDMENT TO SENATE BILL 482
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| AMENDMENT NO. ______. Amend Senate Bill 482 by replacing | 3 |
| everything after the enacting clause with the following: | 4 |
| "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.
| 9 |
| (a) It shall be unlawful for any seller doing business
| 10 |
| 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
| 18 |
| 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 |
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| the merchandise and services, and it
clearly discloses | 2 |
| 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 | 5 |
| the following
statement in 12 point bold type:
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| THIS CONTRACT GUARANTEES THE BENEFICIARY THE | 7 |
| SPECIFIC GOODS AND
SERVICES CONTRACTED FOR. NO | 8 |
| ADDITIONAL CHARGES MAY BE REQUIRED.
FOR DESIGNATED | 9 |
| GOODS AND SERVICES, ADDITIONAL CHARGES MAY BE INCURRED | 10 |
| FOR
UNEXPECTED EXPENSES INCLUDING, BUT NOT LIMITED TO, | 11 |
| CASH ADVANCES, SHIPPING OF
REMAINS FROM A DISTANT | 12 |
| PLACE, OR DESIGNATED HONORARIA ORDERED OR DIRECTED BY
| 13 |
| SURVIVORS.
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| (B) Except as provided in subparagraph (C) of this | 15 |
| paragraph (3),
each non-guaranteed price contract | 16 |
| shall contain the following
statement in 12 point bold | 17 |
| type:
| 18 |
| THIS CONTRACT DOES NOT GUARANTEE THE PRICE THE | 19 |
| BENEFICIARY WILL PAY FOR
ANY SPECIFIC GOODS OR | 20 |
| SERVICES. ANY FUNDS PAID UNDER THIS CONTRACT ARE ONLY A
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| DEPOSIT TO BE APPLIED TOWARD THE FINAL PRICE OF THE | 22 |
| GOODS OR SERVICES
CONTRACTED FOR. ADDITIONAL CHARGES | 23 |
| 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 | 26 |
| clearly
disclose the nature of the guarantee and the | 27 |
| time,
occurrence, or event upon which the contract | 28 |
| shall become a
guaranteed price contract.
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| (4) It provides that if the particular supplies and | 30 |
| services specified
in the pre-need contract are | 31 |
| unavailable at the time of delivery, the provider
shall be | 32 |
| required to furnish supplies and services similar in style | 33 |
| and at
least equal in quality of material and workmanship.
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| (5) It discloses any penalties or restrictions, |
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| including
but not limited
to geographic restrictions or the | 2 |
| inability of the provider
to
perform, on the delivery of | 3 |
| merchandise, services, or pre-need contract
guarantees.
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| (6) Regardless of the method of funding the pre-need | 5 |
| contract, the
following must be disclosed:
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| (A) Whether the pre-need contract is to be funded | 7 |
| 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 | 12 |
| changes in the
funding arrangement including but not | 13 |
| limited to changes in the assignment,
beneficiary | 14 |
| designation, or use of the funds; (ii) any specific | 15 |
| penalties
to be incurred
by the contract purchaser as a | 16 |
| result of failure to make payments; (iii)
penalties to | 17 |
| be incurred or moneys or refunds to be received as a | 18 |
| result of
cancellations; and (iv) all relevant | 19 |
| information concerning what occurs and
whether any | 20 |
| entitlements or obligations arise if there is a | 21 |
| difference between
the proceeds of the particular | 22 |
| funding arrangement and the amount actually
needed to | 23 |
| 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 | 26 |
| Commission Rule
concerning the Cooling-Off Period for | 27 |
| 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 | 30 |
| being
sold. If the seller is not a provider, then the seller | 31 |
| must have a binding agreement with a provider, and
the identity | 32 |
| of the provider and the nature of the agreement between the | 33 |
| seller
and the provider shall be disclosed in the pre-need | 34 |
| contract at the time of the
sale and before the receipt of any |
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| sales proceeds. A separate completed contract, as required by | 2 |
| the Illinois Pre-Need Cemetery Sales Act, shall be issued for | 3 |
| cemetery merchandise, cemetery services, or undeveloped | 4 |
| interment, entombment, or inurnment spaces, as defined in the | 5 |
| Illinois Pre-Need Cemetery Sales Act, and not covered by this | 6 |
| Act, unless the seller is licensed under both Acts and all | 7 |
| disclosures are in compliance with both Acts. The failure to | 8 |
| disclose the
identity of the provider, the nature of the | 9 |
| agreement between the seller and
the provider, or any changes | 10 |
| thereto to the purchaser and beneficiary, or the
failure to | 11 |
| make the disclosures required in subdivision (a)(1), | 12 |
| constitutes an
intentional violation of this Act.
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| (d) All pre-need contracts must be in writing in at least | 14 |
| 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 | 16 |
| at the time of
entry into the pre-need contract. The | 17 |
| Comptroller may by rule develop
a model pre-need contract form | 18 |
| which meets the requirements of this Act.
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| (e) The State Comptroller shall by rule develop a booklet | 20 |
| for
consumers in plain English describing
the scope, | 21 |
| 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 | 23 |
| this State
unless (i) the seller distributes to the purchaser | 24 |
| prior to the sale a
booklet promulgated or approved for use by | 25 |
| the State Comptroller; (ii) the
seller explains to the | 26 |
| purchaser the terms of the pre-need contract prior to
the | 27 |
| purchaser signing; and (iii) the purchaser initials a statement | 28 |
| in the
contract confirming that the seller has explained the | 29 |
| terms of the contract
prior to the purchaser signing.
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| (f) All sales proceeds received in connection with a | 31 |
| pre-need
contract shall be deposited into a trust account as | 32 |
| provided in
Section 1b and Section 2 of this Act, or shall be | 33 |
| used to purchase a life
insurance policy or tax-deferred | 34 |
| 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 | 2 |
| it is
accompanied by a funding mechanism permitted under this | 3 |
| Act, and unless the
seller is licensed by the Comptroller as | 4 |
| provided in Section 3
of this Act.
Nothing in this Act is | 5 |
| intended to relieve sellers of pre-need
contracts from
being | 6 |
| licensed under any other Act required for their profession or | 7 |
| business,
and being subject to the rules promulgated to | 8 |
| regulate their profession or
business, including rules on | 9 |
| 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 | 13 |
| license.
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| (a) The Comptroller may refuse to issue or renew or may | 15 |
| 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 | 25 |
| enforceable judgment or decree rendered by any court
of | 26 |
| competent jurisdiction against the applicant.
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| (6) The applicant or licensee has conducted or is
about | 28 |
| to conduct business in a fraudulent manner.
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| (7) The trust agreement is
not in compliance with State | 30 |
| 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 |
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| license application for license or license renewal ,
the | 2 |
| individual has
conducted or is about to conduct any | 3 |
| business on behalf
of the applicant in a fraudulent manner; | 4 |
| has been
convicted of any felony or misdemeanor, an | 5 |
| essential
element of which is fraud; has had a judgment | 6 |
| rendered
against him or her based on fraud in any civil
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| litigation; has failed to satisfy any enforceable
judgment | 8 |
| or decree rendered against him or her by any
court of | 9 |
| competent jurisdiction; or has been convicted
of any felony | 10 |
| 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 | 13 |
| is a firm, partnership, association or
corporation and any | 14 |
| shareholder holding more than 10% of
the corporate stock, | 15 |
| has violated any provision of this
Act or any regulation, | 16 |
| decision, order, or finding made
by the Comptroller under | 17 |
| 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 | 22 |
| issuance or renewal of
the license.
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| (b) Before refusal to issue or renew and before suspension | 24 |
| or
revocation of a
license, the Comptroller shall hold a | 25 |
| hearing to determine whether the
applicant or licensee, | 26 |
| hereinafter referred to as the respondent, is entitled
to hold | 27 |
| 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 | 29 |
| that on the
date designated a hearing will be held to determine | 30 |
| his eligibility for a
license and that he may appear in person | 31 |
| or by counsel. Such written
notice may be served on the | 32 |
| respondent personally, or by registered or
certified mail sent | 33 |
| to the respondent's business address as shown in his
latest | 34 |
| notification to the Comptroller. At the hearing, both the
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| respondent and the complainant shall be accorded ample | 2 |
| opportunity to
present in person or by counsel such statements, | 3 |
| testimony, evidence and
argument as may be pertinent to the | 4 |
| charges or to any defense thereto. The
Comptroller may | 5 |
| reasonably continue such hearing from time to time.
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| The Comptroller may subpoena any person or persons in this | 7 |
| State and take
testimony orally, by deposition or by exhibit, | 8 |
| in the same manner and with
the same fees and mileage | 9 |
| allowances as prescribed in judicial proceedings
in civil | 10 |
| cases.
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| Any authorized agent of the Comptroller may administer | 12 |
| oaths to witnesses
at any hearing which the Comptroller is | 13 |
| 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. | 17 |
| (a) Any license that was issued under this Act before the | 18 |
| effective date of this amendatory Act of the 94th General | 19 |
| Assembly shall expire according to a schedule developed by the | 20 |
| Comptroller pursuant to the original date of issuance and must | 21 |
| thereafter be renewed as provided in this Act. Beginning on the | 22 |
| effective date of this amendatory Act of the 94th General | 23 |
| Assembly, a license or license renewal under this Act shall be | 24 |
| issued for a 5-year term, which shall expire as provided in | 25 |
| this Act. | 26 |
| (b) The Comptroller by rule may adopt a system under which | 27 |
| licenses must be renewed by various dates during the year, | 28 |
| coinciding with the due date of the annual report of the | 29 |
| licensee or any extensions thereof. | 30 |
| (225 ILCS 45/3a-2 new)
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| Sec. 3a-2. Requirements for license renewal. In order to | 32 |
| complete the license renewal process, the licensee shall submit |
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| a license renewal application to the Comptroller in writing | 2 |
| signed by the licensee and duly verified on forms furnished by | 3 |
| the Comptroller upon the date of renewal. The Comptroller may | 4 |
| prescribe abbreviated license renewal application forms for | 5 |
| persons holding multiple licenses issued by the Comptroller. | 6 |
| Each renewal application (except abbreviated applications) | 7 |
| shall contain all the following: | 8 |
| (1) An affirmative statement indicating the licensee's | 9 |
| desire for renewal and agreement to abide by all applicable | 10 |
| statutes and rules. | 11 |
| (2) A $25 nonrefundable renewal fee. | 12 |
| (3) A completed annual report. | 13 |
| (4) The following information for the licensee, and | 14 |
| each member, officer, and director thereof, if the licensee | 15 |
| is a firm, partnership, association, or corporation, and | 16 |
| each shareholder holding more than 10% of the corporate | 17 |
| stock, if the licensee is a corporation: | 18 |
| (A) His or her name and current address (both | 19 |
| residence and place of business).
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| (B) A detailed statement of the individual's | 21 |
| business experience for the 10 years immediately | 22 |
| preceding the application. | 23 |
| (C) Any present or prior connection between the | 24 |
| individual and any other person engaged in pre-need | 25 |
| sales. | 26 |
| (D) Any felony or misdemeanor convictions of which | 27 |
| fraud was an essential element and any charges or | 28 |
| complaints lodged against the individual of which | 29 |
| fraud was an essential element and that resulted in | 30 |
| civil or criminal litigation. | 31 |
| (E) Any failure of the individual to satisfy an | 32 |
| enforceable judgment entered against him or her based | 33 |
| upon fraud. | 34 |
| (F) Any other information requested by the |
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| Comptroller relating to past
business practices of the | 2 |
| individual. | 3 |
| Since the information required by this item (4) and item | 4 |
| (5) may be confidential or contain proprietary | 5 |
| information, this information shall not be available to | 6 |
| other licensees or the general public and shall be used | 7 |
| only for the lawful purposes of the Comptroller in | 8 |
| enforcing this Act.
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| (5) A current statement of the licensee's assets and | 10 |
| liabilities. | 11 |
| (6) The current name and address of the licensee's | 12 |
| principal place of business at which the books, accounts, | 13 |
| and records are available for examination by the | 14 |
| Comptroller as required by this Act. | 15 |
| (7) The current names and addresses of the licensee's | 16 |
| branch locations at which pre-need sales are conducted and | 17 |
| that operate under the same license number as the | 18 |
| licensee's principal place of business. | 19 |
| (8) The name of the current trustee and, if applicable, | 20 |
| the names of the advisors to the trustee, including a copy | 21 |
| of the current trust agreement under which the trust funds | 22 |
| are held as required by this Act. | 23 |
| (9) Such other information as the Comptroller may | 24 |
| reasonably require in order to determine whether the | 25 |
| licensee's renewal application qualifies under this Act. | 26 |
| (225 ILCS 45/3a-3 new)
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| Sec. 3a-3. Remedy for delinquent license renewal. | 28 |
| (a) If a licensee continues to conduct activities requiring | 29 |
| a license but fails to submit a completed license renewal | 30 |
| application to the Comptroller within the time specified in | 31 |
| this Act, the Comptroller shall impose upon the licensee a | 32 |
| penalty in the amount of $5 per day for each day the renewal | 33 |
| statement is not submitted. The Comptroller may abate all or |
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| part of the $5 daily penalty for good cause shown. | 2 |
| (b) In the event the renewal application is denied by the | 3 |
| Comptroller, the renewal fee paid is not refundable. | 4 |
| (225 ILCS 45/3a-4 new)
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| Sec. 3a-4. License renewal process. Once the licensee has | 6 |
| filed for license renewal, the expiring license shall remain in | 7 |
| effect until the renewal has been issued. Upon approval of the | 8 |
| Comptroller, the Comptroller shall issue a license renewal to | 9 |
| 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 | 13 |
| number of the license, the business name and address of
the | 14 |
| licensee's principal place of business, each branch
location | 15 |
| also operating under the license, and the
licensee's parent | 16 |
| company, if any. The license shall be
conspicuously posted in | 17 |
| each place of business operating
under the license. The | 18 |
| Comptroller may issue such
additional licenses as may be | 19 |
| necessary for licensee branch
locations upon compliance with | 20 |
| the provisions of this Act
governing an original issuance of a | 21 |
| license for each new
license.
| 22 |
| (b) Individual salespersons representing a licensee
shall | 23 |
| not be required to obtain licenses in their
individual | 24 |
| capacities, but must acknowledge, by affidavit,
that they have | 25 |
| been provided with a copy of and have read
this Act. The | 26 |
| licensee shall retain copies of the affidavits
of its sellers | 27 |
| for its records and shall make the affidavits
available to the | 28 |
| Comptroller for examination upon request.
| 29 |
| (c) The licensee shall be responsible for the activities
of | 30 |
| any person representing the licensee in selling or
offering a | 31 |
| pre-need contract for sale.
| 32 |
| (d) Any person not selling on behalf of a licensee shall
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| obtain its own license.
| 2 |
| (e) No license shall be transferable or assignable
without | 3 |
| the express written consent of the Comptroller. A
transfer of | 4 |
| more than 50% of the ownership of any business
licensed | 5 |
| hereunder shall be deemed to be an attempted
assignment of the | 6 |
| license originally issued to the licensee
for which consent of | 7 |
| the Comptroller shall be required.
| 8 |
| (f) Every license issued hereunder shall remain in force
| 9 |
| until it expires or has been suspended, surrendered, or revoked | 10 |
| in
accordance with this Act. The Comptroller, upon the request
| 11 |
| of an interested person or on his own motion, may issue new
| 12 |
| licenses to a licensee whose license or licenses have been
| 13 |
| revoked, if no factor or condition then exists which would
have | 14 |
| warranted the Comptroller to originally refuse the
issuance of | 15 |
| such license.
| 16 |
| (Source: P.A. 92-419, eff. 1-1-02 .)
| 17 |
| (225 ILCS 45/3f)
| 18 |
| Sec. 3f. Revocation of license.
| 19 |
| (a) The Comptroller, upon determination that grounds
exist | 20 |
| for the nonrenewal, revocation or suspension of a license | 21 |
| issued
under this Act, may refuse to renew, revoke or suspend, | 22 |
| if appropriate, the license issued to
a licensee or to a | 23 |
| particular branch office location with respect to which
the | 24 |
| grounds for the nonrenewal, revocation or suspension may occur | 25 |
| or exist.
| 26 |
| (b) Whenever a license is not renewed or is revoked by the
| 27 |
| Comptroller, he or she shall apply to the Circuit Court of the | 28 |
| county wherein
the licensee is located for a receiver to | 29 |
| administer the trust funds of the
licensee or to maintain the | 30 |
| life insurance policies and tax-deferred annuities
held by the | 31 |
| licensee under a pre-need contract.
| 32 |
| (Source: P.A. 92-419, eff. 1-1-02.)
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| Section 10. The Crematory Regulation Act is amended by | 2 |
| changing Sections 11, 11.5, 13, and 62.10 and by adding | 3 |
| Sections 10.1, 10.2, 10.3, and 10.4 as follows:
| 4 |
| (410 ILCS 18/10.1 new)
| 5 |
| Sec. 10.1. Term of license.
| 6 |
| (a) Any license that was issued under this Act before the | 7 |
| effective date of this amendatory Act of the 94th General | 8 |
| Assembly shall expire according to a schedule developed by the | 9 |
| Comptroller pursuant to the original date of issuance and must | 10 |
| thereafter be renewed as provided in this Act. Beginning on the | 11 |
| effective date of this amendatory Act of the 94th General | 12 |
| Assembly, a license or license renewal shall be issued for a | 13 |
| 5-year term, which shall expire as provided in this Act. | 14 |
| (b) The Comptroller by rule may adopt a system under which | 15 |
| licenses must be renewed by various dates during the year, | 16 |
| coinciding with the due date of the annual report of the | 17 |
| licensee or any extensions thereof. | 18 |
| (410 ILCS 18/10.2 new)
| 19 |
| Sec. 10.2. Requirements for license renewal. In order to | 20 |
| complete the license renewal process, the licensee shall submit | 21 |
| a license renewal application to the Comptroller in writing on | 22 |
| forms furnished by the Comptroller upon the date of renewal. | 23 |
| The Comptroller may prescribe abbreviated license renewal | 24 |
| application forms for persons holding multiple licenses issued | 25 |
| by the Comptroller. Each renewal application (except | 26 |
| abbreviated applications) shall contain all of the following: | 27 |
| (1) An affirmative statement indicating the licensee's | 28 |
| desire for renewal and agreement to abide by all applicable | 29 |
| statutes and rules. | 30 |
| (2) A $25 nonrefundable renewal fee. | 31 |
| (3) A completed annual report. | 32 |
| (4) The current name and address (both residence and |
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| business) of the licensee, if the licensee is an | 2 |
| individual; the full name and address of every member, if | 3 |
| the licensee is a partnership; the full name and address of | 4 |
| every member of the board of directors, if the licensee is | 5 |
| an association; and the name and address of every officer, | 6 |
| director, and shareholder holding more than 25% of the | 7 |
| corporate stock, if the licensee is a corporation. | 8 |
| (5) A description of the type of structure and | 9 |
| equipment used in the operation of the crematory, including | 10 |
| the operating permit number issued to the cremation device | 11 |
| by the Illinois Environmental Protection Agency. | 12 |
| (6) An updated attestation by the owner that cremation | 13 |
| services shall be by a person trained in accordance with | 14 |
| the requirements of Section 22 of this Act. | 15 |
| (7) A copy of the certifications issued by the | 16 |
| certification program to the person or persons who operate | 17 |
| the cremation device. | 18 |
| (8) Any further information that the Comptroller | 19 |
| reasonably may require. | 20 |
| (410 ILCS 18/10.3 new)
| 21 |
| Sec. 10.3. Remedy for delinquent license renewal. | 22 |
| (a) If a licensee continues to conduct activities requiring | 23 |
| a license but fails to submit a completed license renewal | 24 |
| application to the Comptroller within the time specified in | 25 |
| this Act, the Comptroller shall impose upon the licensee a | 26 |
| penalty of $5 for each day the licensee remains delinquent in | 27 |
| submitting the renewal application. The Comptroller may abate | 28 |
| all or part of the $5 daily penalty for good cause shown. | 29 |
| (b) In the event the renewal application is denied by the | 30 |
| Comptroller, the renewal fee paid is not refundable. | 31 |
| (410 ILCS 18/10.4 new)
| 32 |
| Sec. 10.4. License renewal process. Once the licensee has |
|
|
|
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| filed for license renewal, the expiring license shall remain in | 2 |
| effect until the renewal has been issued. Upon approval of the | 3 |
| Comptroller, the Comptroller shall issue a license renewal to | 4 |
| be posted in the place of business of the licensee.
| 5 |
| (410 ILCS 18/11)
| 6 |
| Sec. 11. Grounds for refusal of license or license renewal
| 7 |
| or suspension or revocation of
license.
| 8 |
| (a) In this Section, "applicant" means a person who has | 9 |
| applied for a
license
or license renewal under
this Act.
| 10 |
| (b) The Comptroller may refuse to issue or renew a license | 11 |
| under this Act, or may
suspend
or revoke a license issued under | 12 |
| this Act, on any of the following grounds:
| 13 |
| (1) The applicant or licensee has made any | 14 |
| misrepresentation or false
statement or concealed any | 15 |
| material fact in connection with a license
application or | 16 |
| licensure under this Act.
| 17 |
| (2) The applicant or licensee has been engaged in | 18 |
| business practices that
work a fraud.
| 19 |
| (3) The applicant or licensee has refused to give | 20 |
| information required
under this Act to be disclosed to the
| 21 |
| Comptroller.
| 22 |
| (4) The applicant or licensee has conducted or is about | 23 |
| to conduct
cremation
business in a fraudulent manner.
| 24 |
| (5) As to any individual listed in the license or | 25 |
| license renewal application as required
under Section 10 or | 26 |
| 10.2 , that individual has conducted or is about to conduct | 27 |
| any
cremation business on behalf of the applicant in a | 28 |
| fraudulent manner or has
been
convicted
of any felony or | 29 |
| misdemeanor an essential element of which is fraud.
| 30 |
| (6) The applicant or licensee has failed to make the | 31 |
| annual report
required
by this Act or to comply with a | 32 |
| final order, decision, or finding of the
Comptroller
made | 33 |
| under this Act.
|
|
|
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| (7) The applicant or licensee, including any member, | 2 |
| officer, or director
of
the applicant or licensee if the | 3 |
| applicant or licensee is a firm, partnership,
association, | 4 |
| or corporation and including any shareholder holding more | 5 |
| than 25%
of the corporate stock of the applicant or | 6 |
| licensee, has violated any provision
of
this Act or any | 7 |
| regulation or order made by the Comptroller under this Act.
| 8 |
| (8) The Comptroller finds any fact or condition | 9 |
| existing that, if it had
existed at the time of the | 10 |
| original application for a license or license renewal under | 11 |
| this Act,
would
have warranted the Comptroller in refusing | 12 |
| the issuance of the license.
| 13 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 14 |
| (410 ILCS 18/11.5)
| 15 |
| Sec. 11.5. License revocation or suspension; surrender of | 16 |
| license.
| 17 |
| (a) Upon determining that grounds exist for the nonrenewal,
| 18 |
| revocation , or suspension of
a
license issued under this Act, | 19 |
| the Comptroller, if appropriate, may revoke ,
or
suspend , or | 20 |
| refuse to renew the
license issued to the licensee.
| 21 |
| (b) Upon the nonrenewal, revocation , or suspension of a | 22 |
| license issued under this Act,
the
licensee must immediately | 23 |
| surrender the license to the Comptroller. If the
licensee fails | 24 |
| to
do so, the Comptroller may seize the license.
| 25 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 26 |
| (410 ILCS 18/13)
| 27 |
| Sec. 13. License; display; transfer; duration.
| 28 |
| (a) Every license issued under this Act must state the | 29 |
| number of the
license, the
business name and address of the | 30 |
| licensee's principal place of business, and
the licensee's
| 31 |
| parent company, if any. The license must be conspicuously | 32 |
| posted in the place
of business
operating under the license.
|
|
|
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| (b) No license is transferable or assignable without the | 2 |
| express
written
consent of the Comptroller. A transfer of more | 3 |
| than 50% of the ownership of any
business licensed under this | 4 |
| Act shall be deemed to be an attempted assignment
of
the | 5 |
| license
originally issued to the licensee for whom consent of | 6 |
| the Comptroller is
required.
| 7 |
| (c) Every license issued under this Act shall remain in | 8 |
| force until it expires or has
been
surrendered, suspended, or | 9 |
| revoked in accordance with this Act.
Upon
the request of an | 10 |
| interested person or on the Comptroller's own motion, the
| 11 |
| Comptroller may
issue a new
license to a licensee whose license | 12 |
| has been revoked under this Act if no
factor or
condition then | 13 |
| exists which would have warranted the Comptroller in
originally | 14 |
| refusing
the issuance of the license.
| 15 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 16 |
| (410 ILCS 18/62.10)
| 17 |
| Sec. 62.10. Investigation of actions; hearing.
| 18 |
| (a) The Comptroller shall make an investigation
upon
| 19 |
| discovering facts that, if proved, would constitute grounds for | 20 |
| refusal , denial ,
suspension, or
revocation of a license under | 21 |
| this Act.
| 22 |
| (b) Before refusing to issue or renew , and before | 23 |
| suspending or revoking, a license
under
this Act, the | 24 |
| Comptroller shall hold a hearing to determine whether the
| 25 |
| applicant for a
license or the licensee ("the respondent") is | 26 |
| entitled to hold such a license.
At least 10
days before the | 27 |
| date set for the hearing, the Comptroller shall notify the
| 28 |
| respondent in
writing that (i) on the designated date a hearing | 29 |
| will be held to determine the
respondent's
eligibility for a | 30 |
| license and (ii) the respondent may appear in person or by
| 31 |
| counsel. The
written notice may be served on the respondent | 32 |
| personally, or by registered or
certified
mail sent to the | 33 |
| respondent's business address as shown in the respondent's
|
|
|
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| 1 |
| latest
notification to the Comptroller. The notice must include | 2 |
| sufficient information
to inform
the respondent of the general | 3 |
| nature of the reason for the Comptroller's
action.
| 4 |
| (c) At the hearing, both the respondent and the complainant | 5 |
| shall be
accorded
ample opportunity to present in person or by | 6 |
| counsel such statements,
testimony,
evidence, and argument as | 7 |
| may be pertinent to the charge or to any defense to
the charge. | 8 |
| The
Comptroller may reasonably continue the hearing from time | 9 |
| to time. The
Comptroller
may subpoena any person or persons in | 10 |
| this State and take testimony orally, by
deposition, or by | 11 |
| exhibit, in the same manner and with the same fees and
mileage | 12 |
| as
prescribed in judicial proceedings in civil cases. Any | 13 |
| authorized agent of the
Comptroller
may administer oaths to | 14 |
| witnesses at any hearing that the Comptroller is
authorized to
| 15 |
| conduct.
| 16 |
| (d) The Comptroller, at the Comptroller's expense, shall | 17 |
| provide a certified
shorthand reporter to take down the | 18 |
| testimony and preserve a record of every
proceeding at
the | 19 |
| hearing of any case involving the refusal to issue or renew a | 20 |
| license under this
Act, the
suspension or revocation of such a | 21 |
| license, the imposition of a monetary
penalty, or the
referral | 22 |
| of a case for criminal prosecution. The record of any such | 23 |
| proceeding
shall
consist of the notice of hearing, the | 24 |
| complaint, all other documents in the
nature
of pleadings
and | 25 |
| written motions filed in the proceeding, the transcript of | 26 |
| testimony, and
the report and
orders of the Comptroller. Copies | 27 |
| of the transcript of the record may be
purchased from
the | 28 |
| certified shorthand reporter who prepared the record or from | 29 |
| the
Comptroller.
| 30 |
| (Source: P.A. 92-675, eff. 7-1-03.)
| 31 |
| Section 15. The Cemetery Care Act is amended by changing | 32 |
| Sections 7, 8, 10, 11, 14, 15, 15.3, 15.4, and 18 and by adding | 33 |
| Sections 9.1, 9.2, 9.3, and 9.4 as follows:
|
|
|
|
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| 1 |
| (760 ILCS 100/7) (from Ch. 21, par. 64.7)
| 2 |
| Sec. 7. License to hold care funds.
No cemetery authority | 3 |
| owning, operating, controlling or managing a
privately | 4 |
| operated cemetery may accept the care funds authorized by the
| 5 |
| provisions of Section 3 of this Act without securing from the | 6 |
| Comptroller a
license to hold
the funds. The license shall be | 7 |
| secured by the
cemetery authority whether
the cemetery | 8 |
| authority is serving as trustee of the care funds or whether
| 9 |
| the care funds are held by an independent trustee.
| 10 |
| All licenses issued under the provisions of this Act by the | 11 |
| Department
of Financial Institutions prior to the time the | 12 |
| administration of this Act
was transferred to the Comptroller | 13 |
| shall remain valid for all purposes
unless such license expires | 14 |
| or is terminated, surrendered or revoked as provided in
this | 15 |
| Act.
| 16 |
| (Source: P.A. 89-615, eff. 8-9-96.)
| 17 |
| (760 ILCS 100/8) (from Ch. 21, par. 64.8)
| 18 |
| Sec. 8. Every cemetery authority shall register with the | 19 |
| Comptroller upon
forms furnished by him or her. Such | 20 |
| registration statement shall state whether
the cemetery | 21 |
| authority claims that the cemetery owned, operated, | 22 |
| controlled, or
managed by it is a fraternal cemetery, | 23 |
| municipal, State, or federal cemetery,
or religious cemetery, | 24 |
| or a family burying ground, as the case may be, as
defined in | 25 |
| Section 2 of this Act, and shall state the date of | 26 |
| incorporation if
a corporation and whether incorporated under | 27 |
| general or private act of the
legislature. Such registration | 28 |
| statement shall be accompanied by a fee of $5.
Such fee shall | 29 |
| be paid to the Comptroller and no registration statement shall
| 30 |
| be accepted by him without the payment of such fee. Every | 31 |
| cemetery authority
that is not required to file an annual | 32 |
| report under this Act shall bear the
responsibility of |
|
|
|
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| informing the Comptroller whenever a change takes place
| 2 |
| regarding status of cemetery, name of contact person, and that | 3 |
| person's address
and telephone number.
| 4 |
| Upon receipt of a registration statement, if a claim is | 5 |
| made that a
cemetery is a fraternal cemetery, municipal | 6 |
| cemetery, or religious
cemetery, or a family burying ground, as | 7 |
| the case may be, as defined in
Section 2 of this Act, and the | 8 |
| Comptroller shall determine that such
cemetery is not a | 9 |
| fraternal cemetery, a municipal cemetery, or a religious
| 10 |
| cemetery, or a family burying ground, as the case may be, as | 11 |
| defined in
Section 2 of this Act, the Comptroller shall notify | 12 |
| the cemetery authority
making the claim of such determination; | 13 |
| provided, however, that no such
claim shall be denied until the | 14 |
| cemetery authority making such claim has
had at least 10 days' | 15 |
| notice of a hearing thereon and an opportunity to be
heard. | 16 |
| When any such claim is denied, the Comptroller shall within 20 | 17 |
| days
thereafter prepare and keep on file in his office the | 18 |
| transcript of the
evidence taken and a written order or | 19 |
| decision of denial of such claim and
shall send by United | 20 |
| States mail a copy of such order or decision of denial
to the | 21 |
| cemetery authority making such claim within 5 days after the | 22 |
| filing
in his office of such order, finding or decision. A | 23 |
| review of any such
order, finding or decision may be had as | 24 |
| provided in the Administrative
Review Law, as now or hereafter | 25 |
| amended.
| 26 |
| Where no claim is made that a cemetery is a fraternal | 27 |
| cemetery,
municipal cemetery or religious cemetery or family | 28 |
| burying ground, as the
case may be, as defined in Section 2 of | 29 |
| this Act, the registration
statement shall be accompanied by a | 30 |
| fidelity bond in the amount required by
Section 9 of this Act. | 31 |
| Upon receipt of such application, statement and
bond, the | 32 |
| Comptroller shall issue a license to accept the care funds
| 33 |
| authorized by the provisions of Section 3 of this Act to each | 34 |
| cemetery
authority owning, operating, controlling or managing |
|
|
|
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| 1 |
| a privately operated
cemetery. However, the Comptroller shall | 2 |
| issue a license
without the filing of a bond where the filing | 3 |
| of a bond is excused by
Section 18 of this Act.
| 4 |
| The license issued by the Comptroller shall remain in full | 5 |
| force and
effect until it expires or is surrendered by the | 6 |
| licensee or revoked by the
Comptroller as hereinafter provided.
| 7 |
| (Source: P.A. 88-477.)
| 8 |
| (760 ILCS 100/9.1 new)
| 9 |
| Sec. 9.1. Term of license. | 10 |
| (a) Any license that was issued under this Act before the | 11 |
| effective date of this amendatory Act of the 94th General | 12 |
| Assembly shall expire according to a schedule developed by the | 13 |
| Comptroller pursuant to the original date of issuance and must | 14 |
| thereafter be renewed as provided in this Act. Beginning on the | 15 |
| effective date of this amendatory Act of the 94th General | 16 |
| Assembly, a license or license renewal shall be issued for a | 17 |
| 5-year term, which shall expire as provided in this Act. | 18 |
| (b) The Comptroller by rule may adopt a system under which | 19 |
| licenses must be renewed by various dates during the year, | 20 |
| coinciding with the due date of the annual report of the | 21 |
| licensee or any extensions thereof. | 22 |
| (760 ILCS 100/9.2 new)
| 23 |
| Sec. 9.2. Requirements for license renewal. In order to | 24 |
| complete the license renewal process, the licensee shall submit | 25 |
| a license renewal application to the Comptroller in writing | 26 |
| signed by the licensee and on forms furnished by the | 27 |
| Comptroller upon the date of renewal. The Comptroller may | 28 |
| prescribe abbreviated license renewal forms for persons | 29 |
| holding multiple licenses issued by the Comptroller. Each | 30 |
| renewal application (except abbreviated applications) shall | 31 |
| contain all the following: | 32 |
| (1) An affirmative statement indicating the licensee's |
|
|
|
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| 1 |
| desire for renewal and agreement to abide by all applicable | 2 |
| statutes and rules. | 3 |
| (2) A $25 nonrefundable renewal fee. | 4 |
| (3) A completed annual report. | 5 |
| (4) The following information for the licensee; each | 6 |
| member, if the licensee is a partnership or association; | 7 |
| each officer or director, if the licensee is a corporation; | 8 |
| and each party owning 10% or more of the cemetery authority | 9 |
| and the parent company, if any: | 10 |
| (A) Name and current address (both residence and | 11 |
| place of business).
| 12 |
| (B) A detailed statement of the individual's | 13 |
| business experience for the 10 years immediately | 14 |
| preceding the application. | 15 |
| (C) Any present or prior connection between the | 16 |
| individual and any other cemetery or cemetery | 17 |
| authority. | 18 |
| (D) Any felony or misdemeanor convictions of which | 19 |
| fraud was an essential element, any judgment against | 20 |
| the person in a civil suit in which the complaint is | 21 |
| based on fraud, and whether the person is, at the time | 22 |
| of application, a defendant in a civil suit in which | 23 |
| the complaint is based on fraud. | 24 |
| (E) Any failure of the individual to satisfy an | 25 |
| enforceable judgment entered against him or her based | 26 |
| upon fraud. | 27 |
| Since the information required by this item (4) and the | 28 |
| following item (5) may be confidential or contain | 29 |
| proprietary information, this information shall not be | 30 |
| available to other licensees or the general public and | 31 |
| shall be used only for the lawful purposes of the | 32 |
| Comptroller in enforcing this Act.
| 33 |
| (5) A current statement of the licensee's assets and | 34 |
| liabilities. |
|
|
|
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| 1 |
| (6) The current name, address, and legal boundaries of | 2 |
| each cemetery for which the care funds are entrusted and at | 3 |
| which the books, accounts, and records are available for | 4 |
| examination by the Comptroller as required by Section 13 of | 5 |
| this Act. | 6 |
| (7) Any other information that the Comptroller may | 7 |
| reasonably require in order to determine whether the | 8 |
| licensee qualifies for license renewal under this Act. | 9 |
| (760 ILCS 100/9.3 new)
| 10 |
| Sec. 9.3. Remedy for delinquent renewal. | 11 |
| (a) If a licensee continues to conduct activities requiring | 12 |
| a license but fails to submit a completed license renewal | 13 |
| application to the Comptroller within the time specified in | 14 |
| this Act, the Comptroller shall impose upon the licensee a | 15 |
| penalty of $5 for each day the licensee remains delinquent in | 16 |
| submitting the renewal application. The Comptroller may abate | 17 |
| all or part of the $5 daily penalty for good cause shown. | 18 |
| (b) In the event the renewal application is denied by the | 19 |
| Comptroller, the renewal fee paid is not refundable. | 20 |
| (760 ILCS 100/9.4 new)
| 21 |
| Sec. 9.4. License renewal process. Once the licensee has | 22 |
| filed for license renewal, the expiring license shall remain in | 23 |
| effect until the renewal has been issued. Upon approval of the | 24 |
| Comptroller, the Comptroller shall issue a license renewal to | 25 |
| be posted in the place of business of the licensee.
| 26 |
| (760 ILCS 100/10) (from Ch. 21, par. 64.10)
| 27 |
| Sec. 10. Upon receipt of such application for license or | 28 |
| license renewal , the Comptroller shall
issue a license or | 29 |
| license renewal to the applicant unless the Comptroller | 30 |
| determines that:
| 31 |
| (a) The applicant or licensee has made any |
|
|
|
09400SB0482sam001 |
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|
| 1 |
| misrepresentations or false statements or
has concealed any | 2 |
| essential or material fact, or
| 3 |
| (b) The applicant or licensee is insolvent; or
| 4 |
| (c) The applicant or licensee is or has been using | 5 |
| practices in the conducting of the
cemetery business that work | 6 |
| or tend to work a fraud; or
| 7 |
| (d) The applicant or licensee has refused to furnish or | 8 |
| give pertinent data to
the Comptroller; or
| 9 |
| (e) The applicant or licensee has failed to notify the | 10 |
| Comptroller with respect
to any material facts required in the | 11 |
| application for license under the
provisions of this Act; or
| 12 |
| (f) The applicant or licensee has failed to satisfy any | 13 |
| enforceable judgment entered by
the circuit court in any civil | 14 |
| proceedings against such applicant; or
| 15 |
| (g) The applicant or licensee has conducted or is about to | 16 |
| conduct its business
in a fraudulent manner; or
| 17 |
| (h) The applicant or licensee or any individual listed
in | 18 |
| the license
or license renewal application has
conducted or is | 19 |
| about to conduct any business on behalf of the applicant in
a | 20 |
| fraudulent manner; or has been convicted of a felony or any | 21 |
| misdemeanor
of which an essential element is fraud; or has been | 22 |
| involved in any civil
litigation in which a judgment has been | 23 |
| entered against him or her based on
fraud; or has failed to | 24 |
| satisfy any enforceable judgment entered
by the circuit court | 25 |
| in any civil proceedings against such individual; or has
been | 26 |
| convicted of any felony of which fraud is an essential element; | 27 |
| or has
been convicted of any theft-related
offense;
or has | 28 |
| failed to comply with the requirements of this Act;
or has | 29 |
| demonstrated a pattern of
improperly failing to honor a
| 30 |
| contract with a consumer; or
| 31 |
| (i) The applicant or licensee has ever had a license | 32 |
| involving cemeteries or funeral
homes revoked, suspended, or | 33 |
| refused to be issued in Illinois or elsewhere.
| 34 |
| If the Comptroller so determines, then he or she shall |
|
|
|
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|
| 1 |
| conduct a hearing to
determine whether to deny the application | 2 |
| for license or license renewal . However, no application for | 3 |
| license or license renewal shall be
denied unless the applicant | 4 |
| or licensee has had at least 10 days' notice of a hearing on
| 5 |
| the application and an opportunity to be heard thereon. If the | 6 |
| application for license or license renewal is
denied, the | 7 |
| Comptroller shall within 20 days thereafter prepare and keep on
| 8 |
| file in his or her office the transcript of the evidence taken | 9 |
| and a written
order of denial thereof, which shall contain his | 10 |
| or her findings with respect
thereto and the reasons supporting | 11 |
| the denial, and shall send by United States
mail a copy of the | 12 |
| written order of denial to the applicant at the address set
| 13 |
| forth in the application for license or license renewal , within | 14 |
| 5 days after the filing of such order. A
review of such | 15 |
| decision may be had as provided in Section 20 of this Act.
| 16 |
| The license or license renewal issued by the Comptroller | 17 |
| shall remain in full force and
effect until it expires or is | 18 |
| surrendered by the licensee or revoked by the
Comptroller as | 19 |
| hereinafter provided.
| 20 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 21 |
| (760 ILCS 100/11) (from Ch. 21, par. 64.11)
| 22 |
| Sec. 11. Issuance and display of license. A license issued | 23 |
| under this Act authorizes the
cemetery authority to accept care | 24 |
| funds for the cemetery
identified in the license. If a license
| 25 |
| application seeks licensure to accept care funds on behalf
of | 26 |
| more than one cemetery location, the Comptroller, upon
approval | 27 |
| of the license application, shall issue to the
cemetery | 28 |
| authority a separate license for each cemetery
location | 29 |
| indicated on the application. Each license issued
by the | 30 |
| Comptroller under this Act is independent of any
other license | 31 |
| that may be issued to a cemetery authority
under a single | 32 |
| license application.
| 33 |
| Every license issued by the Comptroller shall state the |
|
|
|
09400SB0482sam001 |
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|
| 1 |
| number of the
license and the address at which the business is | 2 |
| to be conducted. Such
license shall be kept conspicuously | 3 |
| posted in the place of business of the
licensee and shall not | 4 |
| be transferable or assignable.
| 5 |
| No more than one place of business shall be maintained | 6 |
| under the same
license, but the Comptroller may issue more than | 7 |
| one license to the same
licensee upon compliance with the | 8 |
| provisions of this Act governing an
original issuance of a | 9 |
| license, for each new license.
| 10 |
| Whenever a licensee shall wish to change the name as | 11 |
| originally set
forth in his license, he shall give written | 12 |
| notice thereof to the
Comptroller together with the reasons for | 13 |
| the change and if the change is
approved by the Comptroller he | 14 |
| shall issue a new license.
| 15 |
| A license issued by the Comptroller shall remain in full
| 16 |
| force and effect until it expires or is surrendered by the | 17 |
| licensee or
suspended or revoked by the Comptroller as
provided | 18 |
| in this Act.
| 19 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 20 |
| (760 ILCS 100/14) (from Ch. 21, par. 64.14)
| 21 |
| Sec. 14. The Comptroller may at any time investigate the | 22 |
| cemetery business
of every licensee with respect to its care | 23 |
| funds. The Comptroller shall
examine at least annually every | 24 |
| licensee who holds $750,000
$250,000 or more in
its care funds. | 25 |
| For that purpose, the Comptroller shall have free access
to the | 26 |
| office and places of business and to such records of all
| 27 |
| licensees and of all trustees of the care funds of all | 28 |
| licensees as
shall relate to the acceptance, use and investment | 29 |
| of care funds. The
Comptroller may require the attendance of | 30 |
| and examine under oath all
persons whose testimony he may | 31 |
| require relative to such business and in
such cases the | 32 |
| Comptroller or any qualified representative of the
Comptroller | 33 |
| whom the Comptroller may designate, may administer oaths to
all |
|
|
|
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| 1 |
| such persons called as witnesses, and the Comptroller, or any | 2 |
| such
qualified representative of the Comptroller, may conduct | 3 |
| such
examinations. The cost of an initial examination
shall be | 4 |
| borne by the
cemetery authority if it has $10,000 or more in | 5 |
| such fund; otherwise, by
the Comptroller. The charge made by | 6 |
| the Comptroller for such examination
shall be based upon the | 7 |
| total amount of care funds held by the cemetery
authority as of | 8 |
| the end of the calendar or fiscal year for which a
report is | 9 |
| required by Section 12 of this Act and shall be in accordance
| 10 |
| with the following schedule:
| 11 |
| less than $10,000 .............................no charge;
| 12 |
| $10,000 or more but less than
| 13 |
| $50,000 .........................................$10;
| 14 |
| $50,000 or more but less than
| 15 |
| $100,000 ........................................$40;
| 16 |
| $100,000 or more but less than
| 17 |
| $250,000 ........................................$80;
| 18 |
| $250,000 or more ........................................$100.
| 19 |
| Any licensee which is not required to be examined annually | 20 |
| shall submit
an annual report to the Comptroller containing | 21 |
| such information as the
Comptroller reasonably may request.
| 22 |
| The Comptroller may order additional audits or | 23 |
| examinations as he or she
may deem necessary or advisable to | 24 |
| ensure the safety and stability of the trust
funds and to | 25 |
| ensure compliance with this Act. These additional audits or
| 26 |
| examinations shall only be made after good cause is established | 27 |
| by the
Comptroller in the written order. The grounds for | 28 |
| ordering these additional
audits or examinations may include, | 29 |
| but shall not be limited to:
| 30 |
| (1) material and unverified changes or fluctuations in | 31 |
| trust balances;
| 32 |
| (2) the licensee changing trustees more than twice in | 33 |
| any 12-month
period;
| 34 |
| (3) any withdrawals or attempted withdrawals from the |
|
|
|
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| 1 |
| trusts in violation
of this Act; or
| 2 |
| (4) failure to maintain or produce documentation | 3 |
| required by this Act for
deposits into trust accounts or | 4 |
| trust investment activities.
| 5 |
| Prior to ordering an additional audit or examination, the | 6 |
| Comptroller shall
request the licensee to respond and comment | 7 |
| upon the factors identified by the
Comptroller as warranting | 8 |
| the subsequent examination or audit. The licensee
shall have 30 | 9 |
| days to provide a response to the Comptroller. If the
| 10 |
| Comptroller decides to proceed with the additional examination | 11 |
| or audit, the
licensee shall bear the full cost of that | 12 |
| examination or audit, up to a maximum
of $7,500. The
| 13 |
| Comptroller may elect to pay for the examination or audit and | 14 |
| receive
reimbursement from the licensee. Payment of the costs | 15 |
| of the examination or
audit by a licensee shall be a condition | 16 |
| of receiving or maintaining a license
under this Act. All | 17 |
| moneys received by the Comptroller for examination or
audit | 18 |
| fees shall be maintained in a separate account to be known as | 19 |
| the
Comptroller's Administrative
Fund. This Fund,
subject to | 20 |
| appropriation by the General Assembly, may
be utilized by the | 21 |
| Comptroller for
enforcing this Act and other purposes that may | 22 |
| be authorized by law.
| 23 |
| (Source: P.A. 89-615, eff. 8-9-96.)
| 24 |
| (760 ILCS 100/15) (from Ch. 21, par. 64.15)
| 25 |
| Sec. 15. The Comptroller may, upon 10 days' notice to the | 26 |
| licensee, by
United
States mail directed to the licensee at the | 27 |
| address set forth in the
license, stating the contemplated | 28 |
| action and, in general, the grounds
therefor, and upon | 29 |
| reasonable opportunity to be heard prior to such action,
revoke | 30 |
| of fail to renew any license issued hereunder if he finds that:
| 31 |
| (a) The licensee has failed to make the annual report
or to | 32 |
| maintain in effect the required bond or to comply with an | 33 |
| order,
decision, or finding of the Comptroller made pursuant to |
|
|
|
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| 1 |
| this Act; or that
| 2 |
| (b) The licensee has violated any provision of this Act or | 3 |
| any
regulation or direction made by the Comptroller under this | 4 |
| Act; or that
| 5 |
| (c) Any fact or condition exists which would constitute | 6 |
| grounds for
denying an application for a new license or license | 7 |
| renewal .
| 8 |
| (Source: P.A. 91-7, eff. 6-1-99.)
| 9 |
| (760 ILCS 100/15.3) (from Ch. 21, par. 64.15-3)
| 10 |
| Sec. 15.3. Every license issued hereunder shall remain in | 11 |
| force until the same expires or has
been surrendered or revoked | 12 |
| in accordance with this Act, but the
Comptroller may on his own | 13 |
| motion, issue new licenses to a licensee whose
license or | 14 |
| licenses have been revoked if no fact or condition then exists
| 15 |
| which clearly would have warranted the Comptroller in refusing | 16 |
| originally
the issuance of such license under this Act.
| 17 |
| (Source: P.A. 78-592.)
| 18 |
| (760 ILCS 100/15.4) (from Ch. 21, par. 64.15-4)
| 19 |
| Sec. 15.4. No license shall be revoked or not renewed until | 20 |
| the licensee has had at least
10 days' notice of a hearing | 21 |
| thereon and an opportunity to be heard. When any
license is so | 22 |
| revoked or not renewed , the Comptroller shall within 20 days | 23 |
| thereafter,
prepare and keep on file in his office the | 24 |
| transcript of the evidence taken
and a written order or | 25 |
| decision of revocation, and shall send by United
States mail a | 26 |
| copy of such order or decision of revocation or failure to | 27 |
| renew to the licensee
at the address set forth in the license | 28 |
| within 5 days after the filing in
his office of such order, | 29 |
| finding or decision. A review of any such order,
finding or | 30 |
| decision may be had as provided in Section 19 of this Act.
| 31 |
| (Source: P.A. 83-333.)
|
|
|
|
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|
| 1 |
| (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. |
|
|
|
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| (a) Any license that was issued under this Act before the | 2 |
| effective date of this amendatory Act of the 94th General | 3 |
| Assembly shall expire according to a schedule developed by the | 4 |
| Comptroller pursuant to the original date of issuance and must | 5 |
| thereafter be renewed as provided in this Act. Beginning on the | 6 |
| effective date of this amendatory Act of the 94th General | 7 |
| Assembly, a license or license renewal shall be issued for a | 8 |
| 5-year term, which shall expire as provided in this Act. | 9 |
| (b) The Comptroller by rule may adopt a system under which | 10 |
| licenses must be renewed by various dates during the year, | 11 |
| coinciding with the due date of the annual report of the | 12 |
| licensee or any extensions thereof. | 13 |
| (815 ILCS 390/6b new)
| 14 |
| Sec. 6b. Requirements for license renewal. In order to | 15 |
| complete the license renewal process, the licensee shall submit | 16 |
| a license renewal application to the Comptroller in writing | 17 |
| under oath, signed by the licensee and in the form furnished by | 18 |
| the Comptroller upon the date of renewal. The Comptroller may | 19 |
| prescribe abbreviated license renewal application forms for | 20 |
| persons holding multiple licenses issued by the Comptroller. | 21 |
| Each renewal application (except abbreviated applications) | 22 |
| shall contain all of the following: | 23 |
| (1) An affirmative statement indicating the licensee's | 24 |
| desire for renewal and agreement to abide by all applicable | 25 |
| statutes and rules. | 26 |
| (2) A $25 nonrefundable renewal fee. | 27 |
| (3) A completed annual report. | 28 |
| (4) The following information for the licensee, and | 29 |
| each member, officer, and director thereof, if the licensee | 30 |
| is a firm, partnership, association, or corporation, and | 31 |
| each shareholder holding more than 10% of the corporate | 32 |
| stock, if the licensee is a corporation: | 33 |
| (A) His or her name and current address (both |
|
|
|
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| 1 |
| residence and place of business).
| 2 |
| (B) A detailed statement of the individual's | 3 |
| business experience for the 10 years immediately | 4 |
| preceding the application. | 5 |
| (C) Any present or prior connection between the | 6 |
| individual and any other person engaged in pre-need | 7 |
| sales. | 8 |
| (D) Any felony or misdemeanor convictions of which | 9 |
| fraud was an essential element and any charges or | 10 |
| complaints lodged against the individual of which | 11 |
| fraud was an essential element and that resulted in | 12 |
| civil or criminal litigation. | 13 |
| (E) Any failure of the individual to satisfy an | 14 |
| enforceable judgment entered against him or her based | 15 |
| upon fraud. | 16 |
| (F) Any other information requested by the | 17 |
| Comptroller relating to past
business practices of the | 18 |
| individual. | 19 |
| Since the information required by this item (4) and item | 20 |
| (5) may be confidential or contain proprietary | 21 |
| information, this information shall not be available to | 22 |
| other licensees or the general public and shall be used | 23 |
| only for the lawful purposes of the Comptroller in | 24 |
| enforcing this Act.
| 25 |
| (5) A detailed statement of the licensee's current | 26 |
| assets and liabilities. | 27 |
| (6) The current name and address of the licensee's | 28 |
| principal place of business at which the books, accounts, | 29 |
| and records are available for examination by the | 30 |
| Comptroller as required by this Act. | 31 |
| (7) The current name and address of the licensee's | 32 |
| branch locations at which pre-need sales are conducted and | 33 |
| that operate under the same license number as the | 34 |
| licensee's principal place of business. |
|
|
|
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| (8) A current copy of the trust agreement under which | 2 |
| the trust funds are to be held as required by this Act. | 3 |
| (9) Such other information as the Comptroller may | 4 |
| reasonably require in order to determine whether the | 5 |
| licensee's renewal application qualifies under this Act. | 6 |
| (815 ILCS 390/6c new)
| 7 |
| Sec. 6c. Remedy for delinquent license renewal. | 8 |
| (a) If a licensee continues to conduct activities requiring | 9 |
| a license but fails to submit a completed license renewal | 10 |
| application to the Comptroller within the time specified in | 11 |
| this Act, the Comptroller shall impose upon the licensee a | 12 |
| penalty of $5 for each day the licensee remains delinquent in | 13 |
| submitting the application. The Comptroller may abate all or | 14 |
| part of the $5 daily penalty for good cause shown. | 15 |
| (b) In the event the renewal application is denied by the | 16 |
| Comptroller, the renewal fee paid is not refundable. | 17 |
| (815 ILCS 390/6d new)
| 18 |
| Sec. 6d. License renewal process.
Once the licensee has | 19 |
| filed for license renewal, the expiring license shall remain in | 20 |
| effect until the renewal has been issued. Upon approval of the | 21 |
| Comptroller, the Comptroller shall issue a license renewal to | 22 |
| be posted in the place of business of the licensee.
| 23 |
| (815 ILCS 390/7) (from Ch. 21, par. 207)
| 24 |
| Sec. 7. The Comptroller may refuse to issue or renew a | 25 |
| license or may suspend or revoke
a license on any of the | 26 |
| following grounds:
| 27 |
| (a) The applicant or licensee has made any | 28 |
| misrepresentations or false
statements or concealed any | 29 |
| material fact;
| 30 |
| (b) The applicant or licensee is insolvent;
| 31 |
| (c) The applicant or licensee has been engaged in business |
|
|
|
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| 1 |
| practices that
work a fraud;
| 2 |
| (d) The applicant or licensee has refused to give pertinent | 3 |
| data to the
Comptroller;
| 4 |
| (e) The applicant or licensee has failed to satisfy any | 5 |
| enforceable
judgment or decree rendered by any court of | 6 |
| competent jurisdiction against
the applicant;
| 7 |
| (f) The applicant or licensee has conducted or is about to | 8 |
| conduct
business in a fraudulent manner;
| 9 |
| (g) The trust agreement is not in compliance
with State or | 10 |
| federal law;
| 11 |
| (h) The pre-construction performance bond, if applicable, | 12 |
| is not
satisfactory to the Comptroller;
| 13 |
| (i) The fidelity bond is not satisfactory to the | 14 |
| Comptroller;
| 15 |
| (j) As to any individual listed in the license application | 16 |
| for license or license renewal as required
pursuant to Section | 17 |
| 6 or 6b , that individual has conducted
or is
about to conduct | 18 |
| any business on behalf of the applicant in a fraudulent
manner, | 19 |
| has been convicted of any felony or misdemeanor an essential
| 20 |
| element of which is fraud, has had a judgment rendered against | 21 |
| him or her
based on
fraud in any civil litigation, has failed | 22 |
| to satisfy any enforceable
judgment or decree rendered against | 23 |
| him by any court of competent
jurisdiction, or has been | 24 |
| convicted of any felony or any theft-related
offense;
| 25 |
| (k) The applicant or licensee has failed to make the annual | 26 |
| report
required by this Act or to comply with a final order, | 27 |
| decision, or finding
of the Comptroller made pursuant to this | 28 |
| Act;
| 29 |
| (l) The applicant or licensee, including any member, | 30 |
| officer, or director
thereof if the applicant or licensee is a | 31 |
| firm, partnership, association, or
corporation and any | 32 |
| shareholder holding more than 10% of the corporate stock,
has | 33 |
| violated any provision of this Act
or
any regulation or order | 34 |
| made by the Comptroller under this Act; or
|
|
|
|
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|
| 1 |
| (m) The Comptroller finds any fact or condition existing | 2 |
| which, if it
had existed at the time of the original | 3 |
| application for such license or renewal of such license would
| 4 |
| have warranted the Comptroller in refusing the issuance or | 5 |
| renewal of the license.
| 6 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 7 |
| (815 ILCS 390/8) (from Ch. 21, par. 208)
| 8 |
| Sec. 8. (a) Every license issued by the Comptroller shall | 9 |
| state the
number of the license, the business name and address | 10 |
| of the licensee's
principal place of business, each branch | 11 |
| location also operating under the
license, and the licensee's | 12 |
| parent company, if any. The license shall be
conspicuously | 13 |
| posted in
each place of business operating under the license. | 14 |
| The Comptroller may issue
additional licenses as may be | 15 |
| necessary for license branch locations upon compliance with the | 16 |
| provisions of this Act
governing an original issuance of a | 17 |
| license for each new license.
| 18 |
| (b) Individual salespersons representing a licensee
shall | 19 |
| not be required
to obtain licenses in their individual | 20 |
| capacities
but must acknowledge, by affidavit, that they have
| 21 |
| been provided a copy of and have read this Act. The licensee | 22 |
| must
retain copies of the affidavits of its salespersons for | 23 |
| its
records and must make the affidavits available to the
| 24 |
| Comptroller for examination upon request.
| 25 |
| (c) The licensee shall be responsible for the activities of | 26 |
| any person
representing the licensee in selling or offering a | 27 |
| pre-need contract for sale.
| 28 |
| (d) Any person not selling on behalf of a
licensee
shall be | 29 |
| required to obtain his or her own license.
| 30 |
| (e) Any person engaged in pre-need sales, as defined | 31 |
| herein, prior to
the effective date of this Act may continue | 32 |
| operations until the application
for license under this Act is | 33 |
| denied; provided that such person shall make
application for a |
|
|
|
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| 1 |
| license within 60 days of the date that application forms
are | 2 |
| made available by the Comptroller.
| 3 |
| (f) No license shall be transferable or assignable without | 4 |
| the express
written consent of the Comptroller. A transfer of | 5 |
| more than 50% of the
ownership of any business licensed | 6 |
| hereunder shall be deemed to be an attempted
assignment of the | 7 |
| license originally issued to the licensee for which consent
of | 8 |
| the Comptroller shall be required.
| 9 |
| (g) Every license issued hereunder shall remain in force | 10 |
| until the same
expires or has been suspended, surrendered or | 11 |
| revoked in accordance with this Act,
but the Comptroller, upon | 12 |
| the request of an interested person or on his
own motion, may | 13 |
| issue new licenses to a licensee whose license or licenses
have | 14 |
| been revoked, if no factor or condition then exists which would | 15 |
| have
warranted the Comptroller in refusing originally the | 16 |
| issuance of such license.
| 17 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 18 |
| (815 ILCS 390/9) (from Ch. 21, par. 209)
| 19 |
| Sec. 9. The Comptroller may upon his own motion investigate | 20 |
| the actions
of any person providing, selling, or offering | 21 |
| pre-need sales contracts
or of any applicant
or any person or | 22 |
| persons holding or claiming to hold
a license under this Act. | 23 |
| The Comptroller shall make such an investigation
on receipt of | 24 |
| the verified written complaint of any person setting forth
| 25 |
| facts which, if proved, would constitute grounds for refusal to | 26 |
| issue or renew , suspension,
or revocation of a license.
Before | 27 |
| refusing to issue or renew , and before suspension or revocation | 28 |
| of a license,
the Comptroller shall hold a hearing to determine | 29 |
| whether the applicant or
licensee,
hereafter called the | 30 |
| respondent, is entitled to hold
such a license. At
least 10 | 31 |
| days prior to the date set for such hearing, the Comptroller | 32 |
| shall
notify the respondent in writing that on the date | 33 |
| designated a hearing
will be held to determine his eligibility |
|
|
|
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| 1 |
| for a license and that he may
appear in person or by counsel. | 2 |
| Such written notice may be served on the
respondent personally, | 3 |
| or by registered or certified mail sent to the
respondent's
| 4 |
| business address as shown in his latest notification to the | 5 |
| Comptroller and
shall include sufficient information to inform | 6 |
| the respondent of the general
nature of the charge. At the | 7 |
| hearing, both the respondent and the complainant
shall be | 8 |
| accorded ample opportunity to present in person or by counsel | 9 |
| such
statements, testimony, evidence and argument as may be | 10 |
| pertinent to the
charges or to any defense thereto. The | 11 |
| Comptroller may reasonably continue
such hearing from time to | 12 |
| time.
| 13 |
| The Comptroller may subpoena any person or persons in this | 14 |
| State and take
testimony orally, by deposition or by exhibit, | 15 |
| in the same manner and with
the same fees and mileage as | 16 |
| prescribed in judicial proceedings in civil cases.
| 17 |
| Any authorized agent of the Comptroller may administer | 18 |
| oaths to witnesses
at any hearing which the Comptroller is | 19 |
| authorized to conduct.
| 20 |
| The Comptroller, at his expense, shall provide a certified | 21 |
| shorthand reporter
to take down the testimony and preserve a | 22 |
| record of all proceedings at the
hearing of any case involving | 23 |
| the refusal to issue or renew a license, the suspension
or | 24 |
| revocation of a license, the imposition of a monetary penalty, | 25 |
| or the
referral
of a case for criminal prosecution. The record | 26 |
| of any such proceeding shall
consist of the notice of hearing, | 27 |
| complaint, all other documents in the
nature of pleadings and | 28 |
| written motions filed in the proceedings, the
transcript
of | 29 |
| testimony and the report and orders of the Comptroller. Copies | 30 |
| of the
transcript of such record may be purchased from the | 31 |
| certified shorthand
reporter
who prepared the record or from | 32 |
| the Comptroller.
| 33 |
| (Source: P.A. 92-419, eff. 1-1-02.)
|
|
|
|
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|
| 1 |
| (815 ILCS 390/12) (from Ch. 21, par. 212)
| 2 |
| Sec. 12. License nonrenewal, revocation , or suspension.
| 3 |
| (a) The Comptroller may, upon determination that grounds
| 4 |
| exist for the revocation or suspension or nonrenewal of a | 5 |
| license issued
under this Act, revoke or suspend , or fail to | 6 |
| renew , if appropriate, the license issued to a
licensee or to a
| 7 |
| particular branch office location with respect to which the
| 8 |
| grounds for revocation ,
or suspension , or failure to renew may | 9 |
| occur or exist.
| 10 |
| (b) Upon the nonrenewal, revocation , or suspension of any | 11 |
| license, the
licensee shall immediately surrender the license | 12 |
| or licenses to the Comptroller. If the licensee fails to do so, | 13 |
| the
Comptroller has the right to seize the license or licenses.
| 14 |
| (Source: P.A. 92-419, eff. 1-1-02.)
| 15 |
| (815 ILCS 390/14) (from Ch. 21, par. 214)
| 16 |
| Sec. 14. Contract required.
| 17 |
| (a) It is unlawful for any person doing business within | 18 |
| this
State to accept sales proceeds, either directly or | 19 |
| indirectly, by any
means unless the seller enters into a | 20 |
| pre-need sales
contract
with the
purchaser which meets the | 21 |
| following requirements:
| 22 |
| (1) A written sales contract shall be executed in at | 23 |
| least 11 point
type in duplicate for
each pre-need sale | 24 |
| made by a licensee, and a signed copy given to the
| 25 |
| purchaser. Each completed contract shall be numbered and | 26 |
| shall contain: (i)
the
name and address of the purchaser, | 27 |
| the principal office
of the licensee, and the parent | 28 |
| company of the licensee; (ii) the name
of the person,
if | 29 |
| known, who
is to receive the cemetery merchandise, cemetery | 30 |
| services or the
completed interment, entombment or | 31 |
| inurnment spaces under the contract; and
(iii) specific | 32 |
| identification of such
merchandise, type of services to be | 33 |
| held by cemetery or crematory personnel, or spaces to be |
|
|
|
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|
| 1 |
| provided, if a specific space or spaces
are contracted for, | 2 |
| and
the price of the merchandise, services, or space or | 3 |
| spaces ; (iv) the location of the spaces to be provided, if | 4 |
| a specific space is contracted for, indicated on a copy of | 5 |
| an overall map of the site or section of the interment, | 6 |
| entombment, or inurnment spaces; and (v) a description of | 7 |
| the type of care furnished by a provider holding a valid | 8 |
| license under the Cemetery Care Act that is being purchased | 9 |
| to maintain the interment, entombment, or inurnment space, | 10 |
| if a specific space is contracted for. If no care is | 11 |
| included in the contract, the contract shall state in | 12 |
| 11-point type "This contract does not include maintenance | 13 |
| care.", and this statement shall be initialed by the | 14 |
| purchaser. | 15 |
| (1.5) Upon request by the purchaser, each contract may | 16 |
| include a current copy of the provider's rules and | 17 |
| regulations pertaining to the site of the completed | 18 |
| interment, entombment, or inurnment spaces, if such spaces | 19 |
| are to be provided under the contract .
| 20 |
| (2) In addition,
such contracts must contain a | 21 |
| provision in distinguishing typeface as follows:
| 22 |
| "Notwithstanding anything in this contract to the | 23 |
| contrary, you are
afforded certain specific rights of | 24 |
| cancellation and refund under the Illinois Pre-Need | 25 |
| Cemetery Sales Act, enacted by the 84th
General Assembly of | 26 |
| the State of Illinois".
| 27 |
| (3) All pre-need sales contracts shall be sold on a | 28 |
| guaranteed price
basis.
At the time of performance of the | 29 |
| service or delivery of the merchandise,
the seller shall be | 30 |
| prohibited from assessing the purchaser or
his heirs or
| 31 |
| assigns or duly authorized representative any additional | 32 |
| charges for the
specific merchandise and services listed on | 33 |
| the pre-need sales contract.
| 34 |
| (4) Each contract shall clearly disclose that the price |
|
|
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| 1 |
| of the
merchandise or services is guaranteed and shall | 2 |
| contain the following
statement in 12 point bold type:
| 3 |
| "THIS CONTRACT GUARANTEES THE BENEFICIARY THE SPECIFIC | 4 |
| GOODS,
SERVICES, INTERMENT SPACES, ENTOMBMENT SPACES, AND | 5 |
| INURNMENT SPACES
CONTRACTED FOR. NO ADDITIONAL CHARGES MAY | 6 |
| BE REQUIRED FOR
DESIGNATED GOODS, SERVICES, AND SPACES. | 7 |
| ADDITIONAL CHARGES MAY
BE INCURRED FOR
UNEXPECTED | 8 |
| EXPENSES."
| 9 |
| (5) The pre-need sales contract shall provide that
if | 10 |
| the particular cemetery services, cemetery
merchandise, or | 11 |
| spaces specified in the pre-need
contract are unavailable | 12 |
| at the time of delivery, the
seller shall be required to | 13 |
| furnish services,
merchandise, and spaces similar in style | 14 |
| and at least
equal in quality of material and workmanship.
| 15 |
| (6) The pre-need contract shall also disclose any
| 16 |
| specific penalties to be incurred by the purchaser as a
| 17 |
| result of failure to make payments; and penalties to be
| 18 |
| incurred or moneys or refunds to be received as a result
of | 19 |
| cancellation of the contract.
| 20 |
| (7) The pre-need contract shall disclose the nature
of | 21 |
| the relationship between the provider and the seller.
| 22 |
| (8) Each pre-need contract that authorizes the | 23 |
| delivery
of cemetery merchandise to a licensed and bonded | 24 |
| warehouse
shall provide that prior to or upon delivery of | 25 |
| the
merchandise to the warehouse
the title to the | 26 |
| merchandise and a warehouse receipt shall
be delivered to | 27 |
| the purchaser or beneficiary. The pre-need
contract shall | 28 |
| contain the following statement in 12 point
bold type:
| 29 |
| "THIS CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO
A | 30 |
| LICENSED AND BONDED WAREHOUSE FOR STORAGE OF THE
| 31 |
| MERCHANDISE UNTIL THE MERCHANDISE IS NEEDED BY THE
| 32 |
| BENEFICIARY. DELIVERY OF THE MERCHANDISE IN THIS MANNER MAY
| 33 |
| PRECLUDE REFUND OF SALE PROCEEDS THAT ARE ATTRIBUTABLE TO
| 34 |
| THE DELIVERED MERCHANDISE."
|
|
|
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| The purchaser shall initial the statement at the time | 2 |
| of
entry into the pre-need contract.
| 3 |
| (9) Each pre-need contract that authorizes the | 4 |
| placement
of cemetery merchandise at the site of its
| 5 |
| ultimate use prior to the time that the merchandise is | 6 |
| needed
by the beneficiary shall contain the following | 7 |
| statement in
12 point bold type:
| 8 |
| "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE
AT | 9 |
| THE SITE OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
| 10 |
| MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
| 11 |
| MERCHANDISE IN THIS MANNER MAY PRECLUDE REFUND OF SALE
| 12 |
| PROCEEDS THAT ARE ATTRIBUTABLE TO THE DELIVERED
| 13 |
| MERCHANDISE."
| 14 |
| The purchaser shall initial the statement at the time | 15 |
| of
entry into the pre-need contract.
| 16 |
| (b) Every pre-need sales contract must be in writing.
The | 17 |
| Comptroller may by rule
develop a model pre-need sales contract | 18 |
| form that meets the requirements
of this Act.
| 19 |
| (c) To the extent the Rule is applicable, every pre-need | 20 |
| sales
contract is subject to the Federal Trade Commission Rule | 21 |
| concerning the
Cooling-Off Period for Door-to-Door Sales (16 | 22 |
| CFR Part 429).
| 23 |
| (d) No pre-need sales contract may be entered into in
this | 24 |
| State unless there is a provider for the cemetery
merchandise, | 25 |
| cemetery services, and undeveloped interment,
inurnment, and | 26 |
| entombment spaces being sold. If the seller
is not the | 27 |
| provider, then the seller must have a binding
agreement with a | 28 |
| provider, and the identity of the provider
and the nature of | 29 |
| the agreement between the seller and the
provider must be | 30 |
| disclosed in the pre-need sales contract
at the time of sale | 31 |
| and before the receipt of any sale
proceeds. The purchaser | 32 |
| shall make personal contact with the provider and visit the | 33 |
| site of the undeveloped interment, inurnment, or entombment | 34 |
| spaces being sold, unless the purchaser waives his or her right |
|
|
|
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| to do so. Each pre-need contract that is sold by a seller who | 2 |
| is not the provider shall contain the following statements in | 3 |
| 12-point bold type and the applicable statements shall be | 4 |
| initialed by the purchaser: | 5 |
| "I HAVE MADE PERSONAL CONTACT WITH THE PROVIDER OF THE | 6 |
| CEMETERY MERCHANDISE, CEMETERY SERVICES, OR UNDEVELOPED | 7 |
| INTERMENT, INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS | 8 |
| CONTRACT. | 9 |
| I HAVE VISITED THE SITE OF THE UNDEVELOPED INTERMENT, | 10 |
| INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 11 |
| I HAVE WAIVED MY RIGHT TO MAKE PERSONAL CONTACT AND/OR | 12 |
| VISIT THE PROVIDER OF THE CEMETERY MERCHANDISE, CEMETERY | 13 |
| SERVICES, OR UNDEVELOPED INTERMENT, INURNMENT, OR | 14 |
| ENTOMBMENT SPACES BEING SOLD IN THIS CONTRACT. | 15 |
| A COPY OF THE PROVIDER'S RULES AND REGULATIONS HAS BEEN | 16 |
| MADE AVAILABLE TO ME UPON MY REQUEST." | 17 |
| A separate completed contract shall be issued for funeral | 18 |
| merchandise or funeral services covered by the Illinois Funeral | 19 |
| or Burial Funds Act, and
not covered by this Act, unless the | 20 |
| seller is licensed under both Acts and all disclosures are in | 21 |
| compliance with both Acts. The failure to disclose the identity | 22 |
| of the
provider, the nature of the agreement between the seller
| 23 |
| and the provider, or any changes thereto to the purchaser
and | 24 |
| beneficiary, or the failure to make the disclosures
required by | 25 |
| this Section constitutes an intentional
violation of this Act.
| 26 |
| (e) No pre-need contract may be entered into in this
State | 27 |
| unless it is accompanied by a funding mechanism
permitted under | 28 |
| this Act and unless the seller is
licensed by the Comptroller | 29 |
| as provided in this Act.
Nothing in this Act is intended to | 30 |
| relieve providers or
sellers of pre-need contracts from being | 31 |
| licensed under any
other Act required for their profession or | 32 |
| business or from
being subject to the rules promulgated to | 33 |
| regulate their
profession or business, including rules on | 34 |
| solicitation and
advertisement.
|
|
|
|
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|
| 1 |
| (f) No pre-need contract may be entered into in this
State | 2 |
| unless the seller explains to the
purchaser the terms of the | 3 |
| pre-need contract prior to the
purchaser signing and the | 4 |
| purchaser initials a statement in the contract
confirming that | 5 |
| the seller has explained the terms of the contract prior to the
| 6 |
| purchaser signing.
| 7 |
| (g) The State Comptroller shall develop a booklet for
| 8 |
| consumers in plain English describing the scope,
application, | 9 |
| and consumer protections of this Act. After
the booklet is | 10 |
| developed, no pre-need contract may be
sold in this State | 11 |
| unless the seller
distributes to the purchaser prior to the | 12 |
| sale a booklet
developed or approved for use by the State | 13 |
| Comptroller.
| 14 |
| (Source: P.A. 91-7, eff. 1-1-00; 92-419, eff. 1-1-02.)
| 15 |
| Section 25. The Consumer Fraud and Deceptive Business | 16 |
| Practices Act is amended by adding Section 2VV as follows: | 17 |
| (815 ILCS 505/2VV new)
| 18 |
| Sec. 2VV. Cemetery or funeral contracts. No person | 19 |
| authorized by law to sell funeral services on an at need basis | 20 |
| may also sell cemetery services, cemetery merchandise, or | 21 |
| interment, inurnment, or entombment spaces on an at need basis, | 22 |
| unless the person is also authorized by law to sell such | 23 |
| cemetery services, merchandise, or spaces and issues to the | 24 |
| consumer a separate contract with the provider of such cemetery | 25 |
| services, merchandise, or spaces. | 26 |
| Each completed contract shall be numbered and shall | 27 |
| contain: (i) the name and address of the purchaser, the name | 28 |
| and pertinent information of the person who is to receive the | 29 |
| cemetery services, merchandise, or spaces, and the name and | 30 |
| address of the seller; (ii) specific identification of such | 31 |
| merchandise, type of services to be held by cemetery or | 32 |
| crematory personnel, or spaces to be provided and the price of |
|
|
|
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| 1 |
| the merchandise, services, or spaces; (iii) the location of the | 2 |
| space to be provided, if a specific space is contracted for, | 3 |
| indicated on a copy of an overall map of the site or section of | 4 |
| the interment, entombment, or inurnment space; and (iv) a | 5 |
| description of the type of care furnished by a provider holding | 6 |
| a valid license under the Cemetery Care Act that is being | 7 |
| purchased to maintain the interment, entombment, or inurnment | 8 |
| space, if a specific space is contracted for. If no care is | 9 |
| included in the contract, the contract shall state in 11-point | 10 |
| bold type: "This contract does not include maintenance care.", | 11 |
| and this statement shall be initialed by the purchaser. Upon | 12 |
| request by the purchaser, each contract may include a current | 13 |
| copy of the provider's rules and regulations pertaining to the | 14 |
| site of the interment, entombment, or inurnment spaces, if such | 15 |
| spaces are to be provided under the contract.
The purchaser | 16 |
| shall make personal contact with the provider and visit the | 17 |
| site of the undeveloped interment, inurnment, or entombment | 18 |
| spaces being sold, unless the purchaser waives his or her right | 19 |
| to do so. Each contract that is sold by a seller who is not the | 20 |
| provider shall contain the following statements in 12-point | 21 |
| bold type and the applicable statements shall be initialed by | 22 |
| the purchaser: | 23 |
| "I HAVE MADE PERSONAL CONTACT WITH THE PROVIDER OF THE | 24 |
| CEMETERY MERCHANDISE, CEMETERY SERVICES, OR INTERMENT, | 25 |
| INURNMENT, OR ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 26 |
| I HAVE VISITED THE SITE OF THE INTERMENT, INURNMENT, OR | 27 |
| ENTOMBMENT SPACES SOLD IN THIS CONTRACT. | 28 |
| I HAVE WAIVED MY RIGHT TO MAKE PERSONAL CONTACT AND | 29 |
| VISIT THE PROVIDER OF THE CEMETERY MERCHANDISE, CEMETERY | 30 |
| SERVICES, OR INTERMENT, INURNMENT, OR ENTOMBMENT SPACES | 31 |
| BEING SOLD IN THIS CONTRACT. | 32 |
| A COPY OF THE PROVIDER'S RULES AND REGULATIONS HAS BEEN | 33 |
| MADE AVAILABLE TO ME UPON MY REQUEST."
| 34 |
| Any person who violates this Section commits an unlawful |
|
|
|
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LRB094 10608 AMC 42982 a |
|
| 1 |
| practice within the meaning of this Act.
| 2 |
| Section 99. Effective date. This Act takes effect January | 3 |
| 1, 2006.".
|
|