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90_SB1244
760 ILCS 100/2 from Ch. 21, par. 64.2
760 ILCS 100/9 from Ch. 21, par. 64.9
Amends the Cemetery Care Act. Removes from the
definition of "care" overhead expense and maintenance of
records of lot ownership, transfers, and burials. Provides
that the definition of "care" does not include the
compensation of employees the preponderance of whose duties
do not involve the maintenance of the cemetery. Provides
that a cemetery authority owning, operating, controlling, or
managing a privately operated cemetery shall make application
for a license within 30 days whenever it is newly organized
and desires to be licensed to accept care funds or whenever
there is a sale or transfer of a controlling interest.
LRB9008269NTsb
LRB9008269NTsb
1 AN ACT to amend the Cemetery Care Act by changing
2 Sections 2 and 9.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Cemetery Care Act is amended by changing
6 Sections 2 and 9 as follows:
7 (760 ILCS 100/2) (from Ch. 21, par. 64.2)
8 Sec. 2. Definitions. The following words, terms and
9 phrases used in this Act, for the purpose of this Act, have
10 the following meanings:
11 "Person" means any person, partnership, association,
12 corporation, or other entity.
13 "Trustee" means any person authorized to hold funds under
14 this Act.
15 "Comptroller" means the Comptroller of the State of
16 Illinois.
17 "Care" means the maintenance of a cemetery and of the
18 lots, graves, crypts, niches, family mausoleums, memorials,
19 and markers therein; including cutting and trimming of lawn,
20 shrubs and trees at reasonable intervals; keeping in repair
21 the drains, water lines, roads, buildings, fences and other
22 structures, in keeping with a well maintained cemetery; also
23 overhead expense necessary for such purposes, including
24 maintenance of machinery, tools, and equipment for such care
25 and the; compensation of employees the preponderance of whose
26 duties involve the maintenance of the cemetery, including
27 payment of insurance premiums and, reasonable payments for
28 employees pension and other benefit plans for those
29 employees, and maintaining necessary records of lot
30 ownership, transfers and burials.
31 "Care funds" as distinguished from receipts from annual
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1 charges or gifts for current or annual care, means any realty
2 or personalty impressed with a trust by the terms of any
3 gift, grant, contribution, payment, legacy, or pursuant to
4 contract, accepted by any cemetery authority owning,
5 operating, controlling or managing a privately operated
6 cemetery, or by any trustee or licensee, agent or custodian
7 for the same, under Section 3 of this Act, and the amounts
8 set aside under Section 4 of this Act, and any income
9 accumulated therefrom, where legally so directed by the terms
10 of the transaction by which the principal was established.
11 "Cemetery" means any land or structure in this State
12 dedicated to and used, or intended to be used, for the
13 interment of human remains.
14 "Cemetery authority" means any person, firm, corporation,
15 trustee, partnership, association or municipality owning,
16 operating, controlling or managing a cemetery or holding
17 lands for burial grounds or burial purposes in this State.
18 "Mausoleum crypt" means a space in a mausoleum used or
19 intended to be used, above or under ground, to entomb human
20 remains.
21 "Family burying ground" means a cemetery in which no lots
22 are sold to the public and in which interments are restricted
23 to a group of persons related to each other by blood or
24 marriage.
25 "Fraternal cemetery" means a cemetery owned, operated,
26 controlled, or managed by any fraternal organization or
27 auxiliary organizations thereof, in which the sale of lots,
28 graves, crypts or niches is restricted principally to its
29 members.
30 "Grave" means a space of ground in a cemetery, used, or
31 intended to be used, for burial.
32 "Investment Company Act of 1940" means Title 15, of the
33 United States Code, Sections 80a-1 to 80a-51, inclusive, as
34 amended.
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1 "Investment Company" means any issuer (a) whose
2 securities are purchasable only with care funds or trust
3 funds, or both; and (b) which is an open and diversified
4 management company as defined in and registered under the
5 "Investment Company Act of 1940"; and (c) which has entered
6 into an agreement with the Comptroller containing such
7 provisions as the Comptroller by regulation reasonably
8 requires for the proper administration of this Act.
9 "Municipal cemetery" means a cemetery owned, operated,
10 controlled or managed by any city, village, incorporated
11 town, township, county, or other municipal corporation,
12 political subdivision, or instrumentality thereof authorized
13 by law to own, operate, or manage a cemetery.
14 "Niche" means a space in a columbarium used or intended
15 to be used, for inurnment of cremated human remains.
16 "Privately operated cemetery" means any entity that
17 offers interment rights, entombment rights or inurnments
18 rights, other than a fraternal, municipal, State, federal or
19 religious cemetery or a family burying ground.
20 "Religious cemetery" means a cemetery owned, operated,
21 controlled, or managed by any recognized church, religious
22 society, association or denomination, or by any cemetery
23 authority or any corporation administering, or through which
24 is administered, the temporalities of any recognized church,
25 religious society, association or denomination.
26 "State or federal cemetery" means a cemetery owned,
27 operated, controlled, or managed by any State or the federal
28 government or any political subdivision or instrumentality
29 thereof.
30 "Entombment right" means the right to place individual
31 human remains or individual cremated human remains in a
32 specific mausoleum crypt or lawn crypt selected by the
33 consumer for use as a final resting place.
34 "Interment right" means the right to place individual
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1 human remains or cremated human remains in a specific
2 underground location selected by the consumer for use as a
3 final resting place.
4 "Inurnment right" means the right to place individual
5 cremated human remains in a specific niche selected by the
6 consumer for use as a final resting place.
7 "Lawn crypt" means a permanent underground crypt usually
8 constructed of reinforced concrete or similar material
9 installed in multiple units for the entombment of human
10 remains.
11 "Imputed value" means the retail price of comparable
12 rights within the same or similar area of the cemetery.
13 (Source: P.A. 88-477.)
14 (760 ILCS 100/9) (from Ch. 21, par. 64.9)
15 Sec. 9. Application for license.
16 (a) Whenever a cemetery authority owning, operating,
17 controlling or managing a privately operated cemetery is
18 newly organized and such cemetery authority desires to be
19 licensed to accept the care funds authorized by Section 3 of
20 this Act, or whenever there is a sale or transfer of the
21 controlling interest of a licensed cemetery authority, it
22 shall make application for such license within 30 days.
23 In the case of a sale or transfer of the controlling
24 interest of the cemetery authority, the prior license shall
25 remain in effect until the Comptroller issues a new license
26 to the newly-controlled cemetery authority as provided in
27 Section 15b. Upon issuance of the new license, the prior
28 license shall be deemed surrendered if the licensee has
29 agreed to the sale and transfer and has consented to the
30 surrender of the license. A sale or transfer of the
31 controlling interest of a cemetery authority to an immediate
32 family member is not considered a transfer of the controlling
33 interest for purposes of this Section.
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1 (b) Applications for license shall be filed with the
2 Comptroller. Applications shall be in writing under oath,
3 signed by the applicant, and in the form furnished by the
4 Comptroller. A check or money order in the amount of $25,
5 payable to: Comptroller, State of Illinois, shall be
6 included. Each application shall contain the following:
7 (1) the full name and address (both of residence
8 and of place of business) of the applicant, if an
9 individual; of every member, if the applicant is a
10 partnership or association; of every officer, if the
11 applicant is a corporation, and of any party owning 10%
12 or more of the cemetery authority; and
13 (2) a detailed statement of the applicant's assets
14 and liabilities; and
15 (3) as to the name of each individual person listed
16 under (1) above, a detailed statement of each person's
17 business experience for the 10 years immediately
18 preceding the application; the present and previous
19 connection, if any, of each person with any other
20 cemetery or cemetery authority; whether each person has
21 ever been convicted of a felony or any misdemeanor of
22 which an essential element is fraud or has been involved
23 in any civil litigation in which a judgment has been
24 entered against him or her based on fraud; whether each
25 person is currently a defendant in any lawsuit in which
26 the complaint against the person is based upon fraud;
27 whether such person has failed to satisfy any enforceable
28 enforcible judgment entered by a court of competent
29 jurisdiction in any civil proceedings against such
30 individual; and
31 (4) the total amount in trust and now available
32 from sales of lots, graves, crypts or niches where part
33 of the sale price has been placed in trust; the amount of
34 money placed in the care funds of each applicant; the
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1 amount set aside in care funds from the sale of lots,
2 graves, crypts and niches for the general care of the
3 cemetery and the amount available for that purpose; the
4 amount received in trust by special agreement for special
5 care and the amount available for that purpose; the
6 amount of principal applicable to trust funds received by
7 the applicant.
8 Such information shall be furnished whether the care
9 funds are held by the applicant as trustee or by an
10 independent trustee. If the funds are not held by the
11 applicant, the name of the independent trustee holding them
12 is also to be furnished by the applicant.
13 (c) Applications for license shall also be accompanied
14 by a fidelity bond issued by a bonding company or insurance
15 company authorized to do business in this State or by an
16 irrevocable, unconditional letter of credit issued by a bank
17 or trust company authorized to do business in the State of
18 Illinois, as approved by the State Comptroller, where such
19 care funds exceed the sum of $15,000. Such bond or letter of
20 credit shall run to the Comptroller and his or her successor
21 for the benefit of the care funds held by such cemetery
22 authority or by the trustee of the care funds of such
23 cemetery authority. Such bonds or letters of credit shall be
24 in an amount equal to 1/10 of such care funds. However, such
25 bond or letter of credit shall not be in an amount less than
26 $1,000; the first $15,000 of such care funds shall not be
27 considered in computing the amount of such bond or letter of
28 credit. No application shall be accepted by the Comptroller
29 unless accompanied by such bond or letter of credit.
30 Applications for license by newly organized cemetery
31 authorities after January 1, 1960 shall also be accompanied
32 by evidence of a minimum care fund deposit in an amount to be
33 determined as follows: if the number of inhabitants, either
34 in the county in which the cemetery is to be located or in
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1 the area included within a 10 mile radius from the cemetery
2 if the number of inhabitants therein is greater, is 25,000 or
3 less the deposit shall be $7,500; if the number of
4 inhabitants is 25,001 to 50,000, the deposit shall be
5 $10,000; if the number of inhabitants is 50,001 to 125,000,
6 the deposit shall be $15,000; if the number of inhabitants is
7 over 125,000, the deposit shall be $25,000.
8 After an amount equal to and in addition to the required
9 minimum care fund deposit has been deposited in trust, the
10 cemetery authority may withhold 50% of all future care funds
11 until it has recovered the amount of the minimum care fund
12 deposit.
13 (d) The applicant shall have a permanent address and any
14 license issued pursuant to the application is valid only at
15 the address or at any new address approved by the
16 Comptroller.
17 (e) All bonds and bonding deposits made by any cemetery
18 authority may be returned to the cemetery authority or
19 cancelled as to care funds invested with an investment
20 company.
21 (Source: P.A. 88-477; 89-615, eff. 8-9-96; revised 7-11-97.)
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