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91_HB2081ham001
LRB9103838WHdvam01
1 AMENDMENT TO HOUSE BILL 2081
2 AMENDMENT NO. . Amend House Bill 2081 by replacing
3 the title with the following:
4 "AN ACT to amend the Cemetery Care Act by changing
5 Section 9."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Cemetery Care Act is amended by changing
9 Section 9 as follows:
10 (760 ILCS 100/9) (from Ch. 21, par. 64.9)
11 Sec. 9. Application for license.
12 (a) Whenever a cemetery authority owning, operating,
13 controlling or managing a privately operated cemetery is
14 newly organized and such cemetery authority desires to be
15 licensed to accept the care funds authorized by Section 3 of
16 this Act, or whenever there is a sale or transfer of the
17 controlling interest of a licensed cemetery authority, it
18 shall make application for such license.
19 In the case of a sale or transfer of the controlling
20 interest of the cemetery authority, the prior license shall
21 remain in effect until the Comptroller issues a new license
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1 to the newly-controlled cemetery authority as provided in
2 Section 15b. Upon issuance of the new license, the prior
3 license shall be deemed surrendered if the licensee has
4 agreed to the sale and transfer and has consented to the
5 surrender of the license. A sale or transfer of the
6 controlling interest of a cemetery authority to an immediate
7 family member is not considered a transfer of the controlling
8 interest for purposes of this Section.
9 (b) Applications for license shall be filed with the
10 Comptroller. Applications shall be in writing under oath,
11 signed by the applicant, and in the form furnished by the
12 Comptroller. A check or money order in the amount of $25,
13 payable to: Comptroller, State of Illinois, shall be
14 included. Each application shall contain the following:
15 (1) the full name and address (both of residence
16 and of place of business) of the applicant, if an
17 individual; of every member, if the applicant is a
18 partnership or association; of every officer, if the
19 applicant is a corporation, and of any party owning 10%
20 or more of the cemetery authority;
21 (2) a detailed statement of the applicant's assets
22 and liabilities;
23 (3) as to the name of each individual person listed
24 under (1) above, a detailed statement of each person's
25 business experience for the 10 years immediately
26 preceding the application; the present and previous
27 connection, if any, of each person with any other
28 cemetery or cemetery authority; whether each person has
29 ever been convicted of a felony or any misdemeanor of
30 which an essential element is fraud or has been involved
31 in any civil litigation in which a judgment has been
32 entered against him or her based on fraud; whether each
33 person is currently a defendant in any lawsuit in which
34 the complaint against the person is based upon fraud;
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1 whether such person has failed to satisfy any enforceable
2 judgment entered by a court of competent jurisdiction in
3 any civil proceedings against such individual; and
4 (4) the total amount in trust and now available
5 from sales of lots, graves, crypts or niches where part
6 of the sale price has been placed in trust; the amount of
7 money placed in the care funds of each applicant; the
8 amount set aside in care funds from the sale of lots,
9 graves, crypts and niches for the general care of the
10 cemetery and the amount available for that purpose; the
11 amount received in trust by special agreement for special
12 care and the amount available for that purpose; the
13 amount of principal applicable to trust funds received by
14 the applicant.
15 Such information shall be furnished whether the care
16 funds are held by the applicant as trustee or by an
17 independent trustee. If the funds are not held by the
18 applicant, the name of the independent trustee holding them
19 is also to be furnished by the applicant.
20 (c) Applications for license shall also be accompanied
21 by a fidelity bond issued by a bonding company or insurance
22 company authorized to do business in this State or by an
23 irrevocable, unconditional letter of credit issued by a bank
24 or trust company authorized to do business in the State of
25 Illinois, as approved by the State Comptroller, where such
26 care funds exceed the sum of $15,000. Such bond or letter of
27 credit shall run to the Comptroller and his or her successor
28 for the benefit of the care funds held by such cemetery
29 authority or by the trustee of the care funds of such
30 cemetery authority. Such bonds or letters of credit shall be
31 in an amount equal to 1/10 of such care funds. However, such
32 bond or letter of credit shall not be in an amount less than
33 $1,000; the first $15,000 of such care funds shall not be
34 considered in computing the amount of such bond or letter of
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1 credit. No application shall be accepted by the Comptroller
2 unless accompanied by such bond or letter of credit.
3 Applications for license by newly organized cemetery
4 authorities after January 1, 1960 shall also be accompanied
5 by evidence of a minimum care fund deposit in an amount to be
6 determined as follows: if the number of inhabitants, either
7 in the county in which the cemetery is to be located or in
8 the area included within a 10 mile radius from the cemetery
9 if the number of inhabitants therein is greater, is 25,000 or
10 less the deposit shall be $7,500; if the number of
11 inhabitants is 25,001 to 50,000, the deposit shall be
12 $10,000; if the number of inhabitants is 50,001 to 125,000,
13 the deposit shall be $15,000; if the number of inhabitants is
14 over 125,000, the deposit shall be $25,000.
15 After an amount equal to and in addition to the required
16 minimum care fund deposit has been deposited in trust, the
17 cemetery authority may withhold 50% of all future care funds
18 until it has recovered the amount of the minimum care fund
19 deposit.
20 (d) The applicant shall have a permanent address and any
21 license issued pursuant to the application is valid only at
22 the address or at any new address approved by the
23 Comptroller.
24 (e) All bonds and bonding deposits made by any cemetery
25 authority may be returned to the cemetery authority or
26 cancelled as to care funds invested with an investment
27 company.
28 (f) Before issuing any license under this Act, the
29 Comptroller shall conduct an evaluation of the prospective
30 licensee's prior experience with operation of any other
31 cemetery or cemetery authority. The Comptroller may deny the
32 license if the prospective licensee or any employee or
33 officer of the prospective licensee:
34 (1) has a history of repeated violations of any
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1 State or federal statute or regulation, or any pertinent
2 local ordinance in relation to the operation of any
3 cemetery or cemetery authority or with respect to the
4 management or administration of the trust funds of any
5 cemetery or cemetery authority;
6 (2) has been convicted in this or any other state
7 of any crime which is a felony under the laws of this
8 State, or convicted of a felony in a federal court; or
9 (3) has a history of gross carelessness or
10 incompetence in the management or operation of any
11 cemetery or cemetery authority or with respect to the
12 administration or management of the trust funds of any
13 cemetery or cemetery authority.
14 (Source: P.A. 89-615, eff. 8-9-96; 90-655, eff. 7-30-98.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.".