HB1074 95TH GENERAL ASSEMBLY

LRB095 09808 RAS 30018 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1074

Introduced 2/8/2007, by Rep. William Davis

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Funeral or Burial Funds Act, the Crematory Regulation Act, the Cemetery Care Act, and the Illinois Pre-Need Cemetery Sales Act. Provides that licenses and license renewals shall be issued for a 5-year term. Provides requirements for license renewal and makes conforming changes in other provisions of the Acts. In the Cemetery Care Act, adds a provision requiring a cemetery association holding $75,000 or less in its care funds to file a report with the Comptroller in lieu of other annual report requirements and provides that the Comptroller shall examine at least annually every licensee who holds $750,000 or more (was, $250,000 or more) in its care funds. Effective January 1, 2008.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Funeral or Burial Funds Act is amended by changing Sections 3a, 3a-5, and 3f and by adding Sections 3a-1, 3a-2, 3a-3, and 3a-4 as follows:

(225 ILCS 45/3a) (from Ch. 111 1/2, par. 73.103a)

Sec. 3a. Denial, nonrenewal, suspension, or revocation of license.

(a) The Comptroller may refuse to issue or renew or may suspend or revoke a license on any of the following grounds:

(1) The applicant or licensee has made any misrepresentations or false statements or concealed any material fact.

(2) The applicant or licensee is insolvent.

(3) The applicant or licensee has been engaged in business practices that work a fraud.

(4) The applicant or licensee has refused to give pertinent data to the Comptroller.

(5) The applicant or licensee has failed to satisfy any enforceable judgment or decree rendered by any court of competent jurisdiction against the applicant.

(6) The applicant or licensee has conducted or is about to conduct business in a fraudulent manner.

(7) The trust agreement is not in compliance with State or federal law.

(8) The fidelity bond is not satisfactory to the Comptroller.

(9) As to any individual required to be listed in the license application for license or license renewal, the individual has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner; has been convicted of any felony or misdemeanor, an essential element of which is fraud; has had a judgment rendered against him or her based on fraud in any civil litigation; has failed to satisfy any enforceable judgment or decree rendered against him or her by any court of competent jurisdiction; or has been convicted of any felony or any theft-related offense.

(10) The applicant or licensee, including any member, officer, or director thereof if the applicant or licensee is a firm, partnership, association or corporation and any shareholder holding more than 10% of the corporate stock, has violated any provision of this Act or any regulation, decision, order, or finding made by the Comptroller under this Act.

(11) The Comptroller finds any fact or condition existing which, if it had existed at the time of the original application for such license or license renewal , would have warranted the Comptroller in refusing the issuance or renewal of the license.

(b) Before refusal to issue or renew and before suspension or revocation of a license, the Comptroller shall hold a hearing to determine whether the applicant or licensee, hereinafter referred to as the respondent, is entitled to hold such a license. At least 10 days prior to the date set for such hearing, the Comptroller shall notify the respondent in writing that on the date designated a hearing will be held to determine his eligibility for a license and that he may appear in person or by counsel. Such written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in his latest notification to the Comptroller. At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Comptroller may reasonably continue such hearing from time to time.

The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition or by exhibit, in the same manner and with the same fees and mileage allowances as prescribed in judicial proceedings in civil cases.

Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing which the Comptroller is authorized to conduct.

(Source: P.A. 92-419, eff. 1-1-02.)

(225 ILCS 45/3a-1 new)

Sec. 3a-1. Term of license.

(a) Any license that was issued under this Act before the effective date of this amendatory Act of the 95th General Assembly shall expire according to a schedule developed by the Comptroller pursuant to the original date of issuance and must thereafter be renewed as provided in this Act. Beginning on the effective date of this amendatory Act of the 95th General Assembly, a license or license renewal under this Act shall be issued for a 5-year term, which shall expire as provided in this Act.

(b) The Comptroller by rule may adopt a system under which licenses must be renewed by various dates during the year, coinciding with the due date of the annual report of the licensee or any extensions thereof.

(225 ILCS 45/3a-2 new)

Sec. 3a-2. Requirements for license renewal. In order to complete the license renewal process, the licensee shall submit a license renewal application to the Comptroller in writing signed by the licensee and duly verified on forms furnished by the Comptroller upon the date of renewal. The Comptroller may prescribe abbreviated license renewal application forms for persons holding multiple licenses issued by the Comptroller. Each renewal application (except abbreviated applications) shall contain all the following:

(1) An affirmative statement indicating the licensee's desire for renewal and agreement to abide by all applicable statutes and rules.

(2) A $25 nonrefundable renewal fee.

(3) A completed annual report.

(4) The following information for the licensee, and each member, officer, and director thereof, if the licensee is a firm, partnership, association, or corporation, and each shareholder holding more than 10% of the corporate stock, if the licensee is a corporation:

(A) His or her name and current address (both residence and place of business).

(B) A detailed statement of the individual's business experience for the 10 years immediately preceding the application.

(C) Any present or prior connection between the individual and any other person engaged in pre-need sales.

(D) Any felony or misdemeanor convictions of which fraud was an essential element and any charges or complaints lodged against the individual of which fraud was an essential element and that resulted in civil or criminal litigation.

(E) Any failure of the individual to satisfy an enforceable judgment entered against him or her based upon fraud.

(F) Any other information requested by the Comptroller relating to past business practices of the individual.

Since the information required by this item (4) and item (5) may be confidential or contain proprietary information, this information shall not be available to other licensees or the general public and shall be used only for the lawful purposes of the Comptroller in enforcing this Act.

(5) A current statement of the licensee's assets and liabilities.

(6) The current name and address of the licensee's principal place of business at which the books, accounts, and records are available for examination by the Comptroller as required by this Act.

(7) The current names and addresses of the licensee's branch locations at which pre-need sales are conducted and that operate under the same license number as the licensee's principal place of business.

(8) The name of the current trustee and, if applicable, the names of the advisors to the trustee, including a copy of the current trust agreement under which the trust funds are held as required by this Act.

(9) Such other information as the Comptroller may reasonably require in order to determine whether the licensee's renewal application qualifies under this Act.

(225 ILCS 45/3a-3 new)

Sec. 3a-3. Remedy for delinquent license renewal.

(a) If a licensee continues to conduct activities requiring a license but fails to submit a completed license renewal application to the Comptroller within the time specified in this Act, the Comptroller shall impose upon the licensee a penalty in the amount of $5 per day for each day the renewal statement is not submitted. The Comptroller may abate all or part of the $5 daily penalty for good cause shown.

(b) In the event the renewal application is denied by the Comptroller, the renewal fee paid is not refundable.

(225 ILCS 45/3a-4 new)

Sec. 3a-4. License renewal process. Once the licensee has filed for license renewal, the expiring license shall remain in effect until the renewal has been issued. Upon approval of the Comptroller, the Comptroller shall issue a license renewal to be posted in the place of business of the licensee.

(225 ILCS 45/3a-5)

Sec. 3a-5. License requirements.

(a) Every license issued by the Comptroller shall state the number of the license, the business name and address of the licensee's principal place of business, each branch location also operating under the license, and the licensee's parent company, if any. The license shall be conspicuously posted in each place of business operating under the license. The Comptroller may issue such additional licenses as may be necessary for licensee branch locations upon compliance with the provisions of this Act governing an original issuance of a license for each new license.

(b) Individual salespersons representing a licensee shall not be required to obtain licenses in their individual capacities, but must acknowledge, by affidavit, that they have been provided with a copy of and have read this Act. The licensee shall retain copies of the affidavits of its sellers for its records and shall make the affidavits available to the Comptroller for examination upon request.

(c) The licensee shall be responsible for the activities of any person representing the licensee in selling or offering a pre-need contract for sale.

(d) Any person not selling on behalf of a licensee shall obtain its own license.

(e) No license shall be transferable or assignable without the express written consent of the Comptroller. A transfer of more than 50% of the ownership of any business licensed hereunder shall be deemed to be an attempted assignment of the license originally issued to the licensee for which consent of the Comptroller shall be required.

(f) Every license issued hereunder shall remain in force until it expires or has been suspended, surrendered, or revoked in accordance with this Act. The Comptroller, upon the request of an interested person or on his own motion, may issue new licenses to a licensee whose license or licenses have been revoked, if no factor or condition then exists which would have warranted the Comptroller to originally refuse the issuance of such license.

(Source: P.A. 92-419, eff. 1-1-02.)

(225 ILCS 45/3f)

Sec. 3f. Revocation of license.

(a) The Comptroller, upon determination that grounds exist for the nonrenewal, revocation or suspension of a license issued under this Act, may refuse to renew, revoke or suspend, if appropriate, the license issued to a licensee or to a particular branch office location with respect to which the grounds for the nonrenewal, revocation or suspension may occur or exist.

(b) Whenever a license is not renewed or is revoked by the Comptroller, he or she shall apply to the Circuit Court of the county wherein the licensee is located for a receiver to administer the trust funds of the licensee or to maintain the life insurance policies and tax-deferred annuities held by the licensee under a pre-need contract.

(Source: P.A. 92-419, eff. 1-1-02.)

Section 10. The Crematory Regulation Act is amended by changing Sections 11, 11.5, 13, and 62.10 and by adding Sections 10.1, 10.2, 10.3, and 10.4 as follows:

(410 ILCS 18/10.1 new)

Sec. 10.1. Term of license.

(a) Any license that was issued under this Act before the effective date of this amendatory Act of the 95th General Assembly shall expire according to a schedule developed by the Comptroller pursuant to the original date of issuance and must thereafter be renewed as provided in this Act. Beginning on the effective date of this amendatory Act of the 95th General Assembly, a license or license renewal shall be issued for a 5-year term, which shall expire as provided in this Act.

(b) The Comptroller by rule may adopt a system under which licenses must be renewed by various dates during the year, coinciding with the due date of the annual report of the licensee or any extensions thereof.

(410 ILCS 18/10.2 new)

Sec. 10.2. Requirements for license renewal. In order to complete the license renewal process, the licensee shall submit a license renewal application to the Comptroller in writing on forms furnished by the Comptroller upon the date of renewal. The Comptroller may prescribe abbreviated license renewal application forms for persons holding multiple licenses issued by the Comptroller. Each renewal application (except abbreviated applications) shall contain all of the following:

(1) An affirmative statement indicating the licensee's desire for renewal and agreement to abide by all applicable statutes and rules.

(2) A $25 nonrefundable renewal fee.

(3) A completed annual report.

(4) The current name and address (both residence and business) of the licensee, if the licensee is an individual; the full name and address of every member, if the licensee is a partnership; the full name and address of every member of the board of directors, if the licensee is an association; and the name and address of every officer, director, and shareholder holding more than 25% of the corporate stock, if the licensee is a corporation.

(5) A description of the type of structure and equipment used in the operation of the crematory, including the operating permit number issued to the cremation device by the Illinois Environmental Protection Agency.

(6) An updated attestation by the owner that cremation services shall be by a person trained in accordance with the requirements of Section 22 of this Act.

(7) A copy of the certifications issued by the certification program to the person or persons who operate the cremation device.

(8) Any further information that the Comptroller reasonably may require.

(410 ILCS 18/10.3 new)

Sec. 10.3. Remedy for delinquent license renewal.

(a) If a licensee continues to conduct activities requiring a license but fails to submit a completed license renewal application to the Comptroller within the time specified in this Act, the Comptroller shall impose upon the licensee a penalty of $5 for each day the licensee remains delinquent in submitting the renewal application. The Comptroller may abate all or part of the $5 daily penalty for good cause shown.

(b) In the event the renewal application is denied by the Comptroller, the renewal fee paid is not refundable.

(410 ILCS 18/10.4 new)

Sec. 10.4. License renewal process. Once the licensee has filed for license renewal, the expiring license shall remain in effect until the renewal has been issued. Upon approval of the Comptroller, the Comptroller shall issue a license renewal to be posted in the place of business of the licensee.

(410 ILCS 18/11)

Sec. 11. Grounds for refusal of license or license renewal or suspension or revocation of license.

(a) In this Section, "applicant" means a person who has applied for a license or license renewal under this Act.

(b) The Comptroller may refuse to issue or renew a license under this Act, or may suspend or revoke a license issued under this Act, on any of the following grounds:

(1) The applicant or licensee has made any misrepresentation or false statement or concealed any material fact in connection with a license application or licensure under this Act.

(2) The applicant or licensee has been engaged in business practices that work a fraud.

(3) The applicant or licensee has refused to give information required under this Act to be disclosed to the Comptroller.

(4) The applicant or licensee has conducted or is about to conduct cremation business in a fraudulent manner.

(5) As to any individual listed in the license or license renewal application as required under Section 10 or 10.2, that individual has conducted or is about to conduct any cremation business on behalf of the applicant in a fraudulent manner or has been convicted of any felony or misdemeanor an essential element of which is fraud.

(6) The applicant or licensee has failed to make the annual report required by this Act or to comply with a final order, decision, or finding of the Comptroller made under this Act.

(7) The applicant or licensee, including any member, officer, or director of the applicant or licensee if the applicant or licensee is a firm, partnership, association, or corporation and including any shareholder holding more than 25% of the corporate stock of the applicant or licensee, has violated any provision of this Act or any regulation or order made by the Comptroller under this Act.

(8) The Comptroller finds any fact or condition existing that, if it had existed at the time of the original application for a license or license renewal under this Act, would have warranted the Comptroller in refusing the issuance of the license.

(Source: P.A. 92-675, eff. 7-1-03.)

(410 ILCS 18/11.5)

Sec. 11.5. License revocation or suspension; surrender of license.

(a) Upon determining that grounds exist for the nonrenewal, revocation, or suspension of a license issued under this Act, the Comptroller, if appropriate, may revoke, or suspend, or refuse to renew the license issued to the licensee.

(b) Upon the nonrenewal, revocation, or suspension of a license issued under this Act, the licensee must immediately surrender the license to the Comptroller. If the licensee fails to do so, the Comptroller may seize the license.

(Source: P.A. 92-675, eff. 7-1-03.)

(410 ILCS 18/13)

Sec. 13. License; display; transfer; duration.

(a) Every license issued under this Act must state the number of the license, the business name and address of the licensee's principal place of business, and the licensee's parent company, if any. The license must be conspicuously posted in the place of business operating under the license.

(b) No license is transferable or assignable without the express written consent of the Comptroller. A transfer of more than 50% of the ownership of any business licensed under this Act shall be deemed to be an attempted assignment of the license originally issued to the licensee for whom consent of the Comptroller is required.

(c) Every license issued under this Act shall remain in force until it expires or has been surrendered, suspended, or revoked in accordance with this Act. Upon the request of an interested person or on the Comptroller's own motion, the Comptroller may issue a new license to a licensee whose license has been revoked under this Act if no factor or condition then exists which would have warranted the Comptroller in originally refusing the issuance of the license.

(Source: P.A. 92-675, eff. 7-1-03.)

(410 ILCS 18/62.10)

Sec. 62.10. Investigation of actions; hearing.

(a) The Comptroller shall make an investigation upon discovering facts that, if proved, would constitute grounds for refusal, denial, suspension, or revocation of a license under this Act.

(b) Before refusing to issue or renew, and before suspending or revoking, a license under this Act, the Comptroller shall hold a hearing to determine whether the applicant for a license or the licensee ("the respondent") is entitled to hold such a license. At least 10 days before the date set for the hearing, the Comptroller shall notify the respondent in writing that (i) on the designated date a hearing will be held to determine the respondent's eligibility for a license and (ii) the respondent may appear in person or by counsel. The written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in the respondent's latest notification to the Comptroller. The notice must include sufficient information to inform the respondent of the general nature of the reason for the Comptroller's action.

(c) At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence, and argument as may be pertinent to the charge or to any defense to the charge. The Comptroller may reasonably continue the hearing from time to time. The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition, or by exhibit, in the same manner and with the same fees and mileage as prescribed in judicial proceedings in civil cases. Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing that the Comptroller is authorized to conduct.

(d) The Comptroller, at the Comptroller's expense, shall provide a certified shorthand reporter to take down the testimony and preserve a record of every proceeding at the hearing of any case involving the refusal to issue or renew a license under this Act, the suspension or revocation of such a license, the imposition of a monetary penalty, or the referral of a case for criminal prosecution. The record of any such proceeding shall consist of the notice of hearing, the complaint, all other documents in the nature of pleadings and written motions filed in the proceeding, the transcript of testimony, and the report and orders of the Comptroller. Copies of the transcript of the record may be purchased from the certified shorthand reporter who prepared the record or from the Comptroller.

(Source: P.A. 92-675, eff. 7-1-03.)

Section 15. The Cemetery Care Act is amended by changing Sections 7, 8, 10, 11, 14, 15, 15.3, 15.4, and 18 and by adding Sections 9.1, 9.2, 9.3, 9.4, and 12.1 as follows:

(760 ILCS 100/7) (from Ch. 21, par. 64.7)

Sec. 7. License to hold care funds. No cemetery authority owning, operating, controlling or managing a privately operated cemetery may accept the care funds authorized by the provisions of Section 3 of this Act without securing from the Comptroller a license to hold the funds. The license shall be secured by the cemetery authority whether the cemetery authority is serving as trustee of the care funds or whether the care funds are held by an independent trustee.

All licenses issued under the provisions of this Act by the Department of Financial Institutions prior to the time the administration of this Act was transferred to the Comptroller shall remain valid for all purposes unless such license expires or is terminated, surrendered or revoked as provided in this Act.

(Source: P.A. 89-615, eff. 8-9-96.)

(760 ILCS 100/8) (from Ch. 21, par. 64.8)

Sec. 8. Every cemetery authority shall register with the Comptroller upon forms furnished by him or her. Such registration statement shall state whether the cemetery authority claims that the cemetery owned, operated, controlled, or managed by it is a fraternal cemetery, municipal, State, or federal cemetery, or religious cemetery, or a family burying ground, as the case may be, as defined in Section 2 of this Act, and shall state the date of incorporation if a corporation and whether incorporated under general or private act of the legislature. Such registration statement shall be accompanied by a fee of $5. Such fee shall be paid to the Comptroller and no registration statement shall be accepted by him without the payment of such fee. Every cemetery authority that is not required to file an annual report under this Act shall bear the responsibility of informing the Comptroller whenever a change takes place regarding status of cemetery, name of contact person, and that person's address and telephone number.

Upon receipt of a registration statement, if a claim is made that a cemetery is a fraternal cemetery, municipal cemetery, or religious cemetery, or a family burying ground, as the case may be, as defined in Section 2 of this Act, and the Comptroller shall determine that such cemetery is not a fraternal cemetery, a municipal cemetery, or a religious cemetery, or a family burying ground, as the case may be, as defined in Section 2 of this Act, the Comptroller shall notify the cemetery authority making the claim of such determination; provided, however, that no such claim shall be denied until the cemetery authority making such claim has had at least 10 days' notice of a hearing thereon and an opportunity to be heard. When any such claim is denied, the Comptroller shall within 20 days thereafter prepare and keep on file in his office the transcript of the evidence taken and a written order or decision of denial of such claim and shall send by United States mail a copy of such order or decision of denial to the cemetery authority making such claim within 5 days after the filing in his office of such order, finding or decision. A review of any such order, finding or decision may be had as provided in the Administrative Review Law, as now or hereafter amended.

Where no claim is made that a cemetery is a fraternal cemetery, municipal cemetery or religious cemetery or family burying ground, as the case may be, as defined in Section 2 of this Act, the registration statement shall be accompanied by a fidelity bond in the amount required by Section 9 of this Act. Upon receipt of such application, statement and bond, the Comptroller shall issue a license to accept the care funds authorized by the provisions of Section 3 of this Act to each cemetery authority owning, operating, controlling or managing a privately operated cemetery. However, the Comptroller shall issue a license without the filing of a bond where the filing of a bond is excused by Section 18 of this Act.

The license issued by the Comptroller shall remain in full force and effect until it expires or is surrendered by the licensee or revoked by the Comptroller as hereinafter provided.

(Source: P.A. 88-477.)

(760 ILCS 100/9.1 new)

Sec. 9.1. Term of license.

(a) Any license that was issued under this Act before the effective date of this amendatory Act of the 95th General Assembly shall expire according to a schedule developed by the Comptroller pursuant to the original date of issuance and must thereafter be renewed as provided in this Act. Beginning on the effective date of this amendatory Act of the 95th General Assembly, a license or license renewal shall be issued for a 5-year term, which shall expire as provided in this Act.

(b) The Comptroller by rule may adopt a system under which licenses must be renewed by various dates during the year, coinciding with the due date of the annual report of the licensee or any extensions thereof.

(760 ILCS 100/9.2 new)

Sec. 9.2. Requirements for license renewal. In order to complete the license renewal process, the licensee shall submit a license renewal application to the Comptroller in writing signed by the licensee and on forms furnished by the Comptroller upon the date of renewal. The Comptroller may prescribe abbreviated license renewal forms for persons holding multiple licenses issued by the Comptroller. Each renewal application (except abbreviated applications) shall contain all the following:

(1) An affirmative statement indicating the licensee's desire for renewal and agreement to abide by all applicable statutes and rules.

(2) A $25 nonrefundable renewal fee.

(3) A completed annual report.

(4) The following information for the licensee; each member, if the licensee is a partnership or association; each officer or director, if the licensee is a corporation; and each party owning 10% or more of the cemetery authority and the parent company, if any:

(A) Name and current address (both residence and place of business).

(B) A detailed statement of the individual's business experience for the 10 years immediately preceding the application.

(C) Any present or prior connection between the individual and any other cemetery or cemetery authority.

(D) Any felony or misdemeanor convictions of which fraud was an essential element, any judgment against the person in a civil suit in which the complaint is based on fraud, and whether the person is, at the time of application, a defendant in a civil suit in which the complaint is based on fraud.

(E) Any failure of the individual to satisfy an enforceable judgment entered against him or her based upon fraud.

Since the information required by this item (4) and the following item (5) may be confidential or contain proprietary information, this information shall not be available to other licensees or the general public and shall be used only for the lawful purposes of the Comptroller in enforcing this Act.

(5) A current statement of the licensee's assets and liabilities.

(6) The current name, address, and legal boundaries of each cemetery for which the care funds are entrusted and at which the books, accounts, and records are available for examination by the Comptroller as required by Section 13 of this Act.

(7) Any other information that the Comptroller may reasonably require in order to determine whether the licensee qualifies for license renewal under this Act.

(760 ILCS 100/9.3 new)

Sec. 9.3. Remedy for delinquent renewal.

(a) If a licensee continues to conduct activities requiring a license but fails to submit a completed license renewal application to the Comptroller within the time specified in this Act, the Comptroller shall impose upon the licensee a penalty of $5 for each day the licensee remains delinquent in submitting the renewal application. The Comptroller may abate all or part of the $5 daily penalty for good cause shown.

(b) In the event the renewal application is denied by the Comptroller, the renewal fee paid is not refundable.

(760 ILCS 100/9.4 new)

Sec. 9.4. License renewal process. Once the licensee has filed for license renewal, the expiring license shall remain in effect until the renewal has been issued. Upon approval of the Comptroller, the Comptroller shall issue a license renewal to be posted in the place of business of the licensee.

(760 ILCS 100/10) (from Ch. 21, par. 64.10)

Sec. 10. Upon receipt of such application for license or license renewal, the Comptroller shall issue a license or license renewal to the applicant unless the Comptroller determines that:

(a) The applicant or licensee has made any misrepresentations or false statements or has concealed any essential or material fact, or

(b) The applicant or licensee is insolvent; or

(c) The applicant or licensee is or has been using practices in the conducting of the cemetery business that work or tend to work a fraud; or

(d) The applicant or licensee has refused to furnish or give pertinent data to the Comptroller; or

(e) The applicant or licensee has failed to notify the Comptroller with respect to any material facts required in the application for license under the provisions of this Act; or

(f) The applicant or licensee has failed to satisfy any enforceable judgment entered by the circuit court in any civil proceedings against such applicant; or

(g) The applicant or licensee has conducted or is about to conduct its business in a fraudulent manner; or

(h) The applicant or licensee or any individual listed in the license or license renewal application has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner; or has been convicted of a felony or any misdemeanor of which an essential element is fraud; or has been involved in any civil litigation in which a judgment has been entered against him or her based on fraud; or has failed to satisfy any enforceable judgment entered by the circuit court in any civil proceedings against such individual; or has been convicted of any felony of which fraud is an essential element; or has been convicted of any theft-related offense; or has failed to comply with the requirements of this Act; or has demonstrated a pattern of improperly failing to honor a contract with a consumer; or

(i) The applicant or licensee has ever had a license involving cemeteries or funeral homes revoked, suspended, or refused to be issued in Illinois or elsewhere.

If the Comptroller so determines, then he or she shall conduct a hearing to determine whether to deny the application for license or license renewal. However, no application for license or license renewal shall be denied unless the applicant or licensee has had at least 10 days' notice of a hearing on the application and an opportunity to be heard thereon. If the application for license or license renewal is denied, the Comptroller shall within 20 days thereafter prepare and keep on file in his or her office the transcript of the evidence taken and a written order of denial thereof, which shall contain his or her findings with respect thereto and the reasons supporting the denial, and shall send by United States mail a copy of the written order of denial to the applicant at the address set forth in the application for license or license renewal, within 5 days after the filing of such order. A review of such decision may be had as provided in Section 20 of this Act.

The license or license renewal issued by the Comptroller shall remain in full force and effect until it expires or is surrendered by the licensee or revoked by the Comptroller as hereinafter provided.

(Source: P.A. 92-419, eff. 1-1-02.)

(760 ILCS 100/11) (from Ch. 21, par. 64.11)

Sec. 11. Issuance and display of license. A license issued under this Act authorizes the cemetery authority to accept care funds for the cemetery identified in the license. If a license application seeks licensure to accept care funds on behalf of more than one cemetery location, the Comptroller, upon approval of the license application, shall issue to the cemetery authority a separate license for each cemetery location indicated on the application. Each license issued by the Comptroller under this Act is independent of any other license that may be issued to a cemetery authority under a single license application.

Every license issued by the Comptroller shall state the number of the license and the address at which the business is to be conducted. Such license shall be kept conspicuously posted in the place of business of the licensee and shall not be transferable or assignable.

No more than one place of business shall be maintained under the same license, but the Comptroller may issue more than one license to the same licensee upon compliance with the provisions of this Act governing an original issuance of a license, for each new license.

Whenever a licensee shall wish to change the name as originally set forth in his license, he shall give written notice thereof to the Comptroller together with the reasons for the change and if the change is approved by the Comptroller he shall issue a new license.

A license issued by the Comptroller shall remain in full force and effect until it expires or is surrendered by the licensee or suspended or revoked by the Comptroller as provided in this Act.

(Source: P.A. 92-419, eff. 1-1-02.)

(760 ILCS 100/12.1 new)

Sec. 12.1. Any cemetery association, as established pursuant to the Cemetery Association Act, holding $75,000 or less in its care funds, in lieu of complying with the annual report requirements of Section 12 of this Act, shall file with the Comptroller a financial report containing information required by the Comptroller. Each report shall be made under oath and shall be in the form furnished by the Comptroller. The report shall be filed free of cost. If any financial report shows that the amount of the care funds held in trust at the end of the preceding calendar year or fiscal year, as the case may be, has increased in amount greater than $75,000, then, for the next calendar or fiscal year, as the case may be, the cemetery association shall file an annual report as required under Section 12 of this Act.

(760 ILCS 100/14) (from Ch. 21, par. 64.14)

Sec. 14. The Comptroller may at any time investigate the cemetery business of every licensee with respect to its care funds. The Comptroller shall examine at least annually every licensee who holds $750,000 $250,000 or more in its care funds. For that purpose, the Comptroller shall have free access to the office and places of business and to such records of all licensees and of all trustees of the care funds of all licensees as shall relate to the acceptance, use and investment of care funds. The Comptroller may require the attendance of and examine under oath all persons whose testimony he may require relative to such business and in such cases the Comptroller or any qualified representative of the Comptroller whom the Comptroller may designate, may administer oaths to all such persons called as witnesses, and the Comptroller, or any such qualified representative of the Comptroller, may conduct such examinations. The cost of an initial examination shall be borne by the cemetery authority if it has $10,000 or more in such fund; otherwise, by the Comptroller. The charge made by the Comptroller for such examination shall be based upon the total amount of care funds held by the cemetery authority as of the end of the calendar or fiscal year for which a report is required by Section 12 of this Act and shall be in accordance with the following schedule:

less than $10,000.........................no charge;

$10,000 or more but less than

$50,000.....................................$10;

$50,000 or more but less than

$100,000....................................$40;

$100,000 or more but less than

$250,000....................................$80;

$250,000 or more....................................$100.

Any licensee which is not required to be examined annually shall submit an annual report to the Comptroller containing such information as the Comptroller reasonably may request.

The Comptroller may order additional audits or examinations as he or she may deem necessary or advisable to ensure the safety and stability of the trust funds and to ensure compliance with this Act. These additional audits or examinations shall only be made after good cause is established by the Comptroller in the written order. The grounds for ordering these additional audits or examinations may include, but shall not be limited to:

(1) material and unverified changes or fluctuations in trust balances;

(2) the licensee changing trustees more than twice in any 12-month period;

(3) any withdrawals or attempted withdrawals from the trusts in violation of this Act; or

(4) failure to maintain or produce documentation required by this Act for deposits into trust accounts or trust investment activities.

Prior to ordering an additional audit or examination, the Comptroller shall request the licensee to respond and comment upon the factors identified by the Comptroller as warranting the subsequent examination or audit. The licensee shall have 30 days to provide a response to the Comptroller. If the Comptroller decides to proceed with the additional examination or audit, the licensee shall bear the full cost of that examination or audit, up to a maximum of $7,500. The Comptroller may elect to pay for the examination or audit and receive reimbursement from the licensee. Payment of the costs of the examination or audit by a licensee shall be a condition of receiving or maintaining a license under this Act. All moneys received by the Comptroller for examination or audit fees shall be maintained in a separate account to be known as the Comptroller's Administrative Fund. This Fund, subject to appropriation by the General Assembly, may be utilized by the Comptroller for enforcing this Act and other purposes that may be authorized by law.

(Source: P.A. 89-615, eff. 8-9-96.)

(760 ILCS 100/15) (from Ch. 21, par. 64.15)

Sec. 15. The Comptroller may, upon 10 days' notice to the licensee, by United States mail directed to the licensee at the address set forth in the license, stating the contemplated action and, in general, the grounds therefor, and upon reasonable opportunity to be heard prior to such action, revoke of fail to renew any license issued hereunder if he finds that:

(a) The licensee has failed to make the annual report or to maintain in effect the required bond or to comply with an order, decision, or finding of the Comptroller made pursuant to this Act; or that

(b) The licensee has violated any provision of this Act or any regulation or direction made by the Comptroller under this Act; or that

(c) Any fact or condition exists which would constitute grounds for denying an application for a new license or license renewal.

(Source: P.A. 91-7, eff. 6-1-99.)

(760 ILCS 100/15.3) (from Ch. 21, par. 64.15-3)

Sec. 15.3. Every license issued hereunder shall remain in force until the same expires or has been surrendered or revoked in accordance with this Act, but the Comptroller may on his own motion, issue new licenses to a licensee whose license or licenses have been revoked if no fact or condition then exists which clearly would have warranted the Comptroller in refusing originally the issuance of such license under this Act.

(Source: P.A. 78-592.)

(760 ILCS 100/15.4) (from Ch. 21, par. 64.15-4)

Sec. 15.4. No license shall be revoked or not renewed until the licensee has had at least 10 days' notice of a hearing thereon and an opportunity to be heard. When any license is so revoked or not renewed, the Comptroller shall within 20 days thereafter, prepare and keep on file in his office the transcript of the evidence taken and a written order or decision of revocation, and shall send by United States mail a copy of such order or decision of revocation or failure to renew to the licensee at the address set forth in the license within 5 days after the filing in his office of such order, finding or decision. A review of any such order, finding or decision may be had as provided in Section 19 of this Act.

(Source: P.A. 83-333.)

(760 ILCS 100/18) (from Ch. 21, par. 64.18)

Sec. 18. Application; when bond is unnecessary. The provisions of this Act as to the (a) registration, (b) application for license or license renewal, (c) filing of a fidelity bond, (d) filing of an annual report, and (e) examination by the Comptroller, apply to a cemetery authority owning, operating, controlling or managing a privately operated cemetery whether the care funds are held by such cemetery authority as trustee or by any independent trustee for the same. However, no bond need be filed with the Comptroller as to care funds of such cemetery authority held as trustee by a bank or trust company authorized to do business in this State as a trust company in accordance with Section 2-10 of the Corporate Fiduciary Act or held by an investment company.

Upon application by such cemetery authority to the Comptroller, and upon a showing that all of the care funds of such cemetery authority are held by such bank or trust company as trustee for such cemetery authority pursuant to an agreement in writing approved from time to time by the Comptroller for the handling and management of all of the care funds of such cemetery authority, or are held by an investment company, the Comptroller in writing may permit the licensee to operate without the filing of any bond as to such care funds except such fidelity bond as he or she may require for the protection of such cemetery authority against defaults by its employees engaged in the handling and collection of funds.

(Source: P.A. 88-477; 89-615, eff. 8-9-96.)

Section 20. The Illinois Pre-Need Cemetery Sales Act is amended by changing Sections 7, 8, 9, and 12 and by adding Sections 6a, 6b, 6c, and 6d as follows:

(815 ILCS 390/6a new)

Sec. 6a. Term of license.

(a) Any license that was issued under this Act before the effective date of this amendatory Act of the 95th General Assembly shall expire according to a schedule developed by the Comptroller pursuant to the original date of issuance and must thereafter be renewed as provided in this Act. Beginning on the effective date of this amendatory Act of the 95th General Assembly, a license or license renewal shall be issued for a 5-year term, which shall expire as provided in this Act.

(b) The Comptroller by rule may adopt a system under which licenses must be renewed by various dates during the year, coinciding with the due date of the annual report of the licensee or any extensions thereof.

(815 ILCS 390/6b new)

Sec. 6b. Requirements for license renewal. In order to complete the license renewal process, the licensee shall submit a license renewal application to the Comptroller in writing under oath, signed by the licensee and in the form furnished by the Comptroller upon the date of renewal. The Comptroller may prescribe abbreviated license renewal application forms for persons holding multiple licenses issued by the Comptroller. Each renewal application (except abbreviated applications) shall contain all of the following:

(1) An affirmative statement indicating the licensee's desire for renewal and agreement to abide by all applicable statutes and rules.

(2) A $25 nonrefundable renewal fee.

(3) A completed annual report.

(4) The following information for the licensee, and each member, officer, and director thereof, if the licensee is a firm, partnership, association, or corporation, and each shareholder holding more than 10% of the corporate stock, if the licensee is a corporation:

(A) His or her name and current address (both residence and place of business).

(B) A detailed statement of the individual's business experience for the 10 years immediately preceding the application.

(C) Any present or prior connection between the individual and any other person engaged in pre-need sales.

(D) Any felony or misdemeanor convictions of which fraud was an essential element and any charges or complaints lodged against the individual of which fraud was an essential element and that resulted in civil or criminal litigation.

(E) Any failure of the individual to satisfy an enforceable judgment entered against him or her based upon fraud.

(F) Any other information requested by the Comptroller relating to past business practices of the individual.

Since the information required by this item (4) and item (5) may be confidential or contain proprietary information, this information shall not be available to other licensees or the general public and shall be used only for the lawful purposes of the Comptroller in enforcing this Act.

(5) A detailed statement of the licensee's current assets and liabilities.

(6) The current name and address of the licensee's principal place of business at which the books, accounts, and records are available for examination by the Comptroller as required by this Act.

(7) The current name and address of the licensee's branch locations at which pre-need sales are conducted and that operate under the same license number as the licensee's principal place of business.

(8) A current copy of the trust agreement under which the trust funds are to be held as required by this Act.

(9) Such other information as the Comptroller may reasonably require in order to determine whether the licensee's renewal application qualifies under this Act.

(815 ILCS 390/6c new)

Sec. 6c. Remedy for delinquent license renewal.

(a) If a licensee continues to conduct activities requiring a license but fails to submit a completed license renewal application to the Comptroller within the time specified in this Act, the Comptroller shall impose upon the licensee a penalty of $5 for each day the licensee remains delinquent in submitting the application. The Comptroller may abate all or part of the $5 daily penalty for good cause shown.

(b) In the event the renewal application is denied by the Comptroller, the renewal fee paid is not refundable.

(815 ILCS 390/6d new)

Sec. 6d. License renewal process. Once the licensee has filed for license renewal, the expiring license shall remain in effect until the renewal has been issued. Upon approval of the Comptroller, the Comptroller shall issue a license renewal to be posted in the place of business of the licensee.

(815 ILCS 390/7) (from Ch. 21, par. 207)

Sec. 7. The Comptroller may refuse to issue or renew a license or may suspend or revoke a license on any of the following grounds:

(a) The applicant or licensee has made any misrepresentations or false statements or concealed any material fact;

(b) The applicant or licensee is insolvent;

(c) The applicant or licensee has been engaged in business practices that work a fraud;

(d) The applicant or licensee has refused to give pertinent data to the Comptroller;

(e) The applicant or licensee has failed to satisfy any enforceable judgment or decree rendered by any court of competent jurisdiction against the applicant;

(f) The applicant or licensee has conducted or is about to conduct business in a fraudulent manner;

(g) The trust agreement is not in compliance with State or federal law;

(h) The pre-construction performance bond, if applicable, is not satisfactory to the Comptroller;

(i) The fidelity bond is not satisfactory to the Comptroller;

(j) As to any individual listed in the license application for license or license renewal as required pursuant to Section 6 or 6b, that individual has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner, has been convicted of any felony or misdemeanor an essential element of which is fraud, has had a judgment rendered against him or her based on fraud in any civil litigation, has failed to satisfy any enforceable judgment or decree rendered against him by any court of competent jurisdiction, or has been convicted of any felony or any theft-related offense;

(k) The applicant or licensee has failed to make the annual report required by this Act or to comply with a final order, decision, or finding of the Comptroller made pursuant to this Act;

(l) The applicant or licensee, including any member, officer, or director thereof if the applicant or licensee is a firm, partnership, association, or corporation and any shareholder holding more than 10% of the corporate stock, has violated any provision of this Act or any regulation or order made by the Comptroller under this Act; or

(m) The Comptroller finds any fact or condition existing which, if it had existed at the time of the original application for such license or renewal of such license would have warranted the Comptroller in refusing the issuance or renewal of the license.

(Source: P.A. 92-419, eff. 1-1-02.)

(815 ILCS 390/8) (from Ch. 21, par. 208)

Sec. 8. (a) Every license issued by the Comptroller shall state the number of the license, the business name and address of the licensee's principal place of business, each branch location also operating under the license, and the licensee's parent company, if any. The license shall be conspicuously posted in each place of business operating under the license. The Comptroller may issue additional licenses as may be necessary for license branch locations upon compliance with the provisions of this Act governing an original issuance of a license for each new license.

(b) Individual salespersons representing a licensee shall not be required to obtain licenses in their individual capacities but must acknowledge, by affidavit, that they have been provided a copy of and have read this Act. The licensee must retain copies of the affidavits of its salespersons for its records and must make the affidavits available to the Comptroller for examination upon request.

(c) The licensee shall be responsible for the activities of any person representing the licensee in selling or offering a pre-need contract for sale.

(d) Any person not selling on behalf of a licensee shall be required to obtain his or her own license.

(e) Any person engaged in pre-need sales, as defined herein, prior to the effective date of this Act may continue operations until the application for license under this Act is denied; provided that such person shall make application for a license within 60 days of the date that application forms are made available by the Comptroller.

(f) No license shall be transferable or assignable without the express written consent of the Comptroller. A transfer of more than 50% of the ownership of any business licensed hereunder shall be deemed to be an attempted assignment of the license originally issued to the licensee for which consent of the Comptroller shall be required.

(g) Every license issued hereunder shall remain in force until the same expires or has been suspended, surrendered or revoked in accordance with this Act, but the Comptroller, upon the request of an interested person or on his own motion, may issue new licenses to a licensee whose license or licenses have been revoked, if no factor or condition then exists which would have warranted the Comptroller in refusing originally the issuance of such license.

(Source: P.A. 92-419, eff. 1-1-02.)

(815 ILCS 390/9) (from Ch. 21, par. 209)

Sec. 9. The Comptroller may upon his own motion investigate the actions of any person providing, selling, or offering pre-need sales contracts or of any applicant or any person or persons holding or claiming to hold a license under this Act. The Comptroller shall make such an investigation on receipt of the verified written complaint of any person setting forth facts which, if proved, would constitute grounds for refusal to issue or renew, suspension, or revocation of a license. Before refusing to issue or renew, and before suspension or revocation of a license, the Comptroller shall hold a hearing to determine whether the applicant or licensee, hereafter called the respondent, is entitled to hold such a license. At least 10 days prior to the date set for such hearing, the Comptroller shall notify the respondent in writing that on the date designated a hearing will be held to determine his eligibility for a license and that he may appear in person or by counsel. Such written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in his latest notification to the Comptroller and shall include sufficient information to inform the respondent of the general nature of the charge. At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Comptroller may reasonably continue such hearing from time to time.

The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition or by exhibit, in the same manner and with the same fees and mileage as prescribed in judicial proceedings in civil cases.

Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing which the Comptroller is authorized to conduct.

The Comptroller, at his expense, shall provide a certified shorthand reporter to take down the testimony and preserve a record of all proceedings at the hearing of any case involving the refusal to issue or renew a license, the suspension or revocation of a license, the imposition of a monetary penalty, or the referral of a case for criminal prosecution. The record of any such proceeding shall consist of the notice of hearing, complaint, all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony and the report and orders of the Comptroller. Copies of the transcript of such record may be purchased from the certified shorthand reporter who prepared the record or from the Comptroller.

(Source: P.A. 92-419, eff. 1-1-02.)

(815 ILCS 390/12) (from Ch. 21, par. 212)

Sec. 12. License nonrenewal, revocation, or suspension.

(a) The Comptroller may, upon determination that grounds exist for the revocation or suspension or nonrenewal of a license issued under this Act, revoke, or suspend, or fail to renew, if appropriate, the license issued to a licensee or to a particular branch office location with respect to which the grounds for revocation, or suspension, or failure to renew may occur or exist.

(b) Upon the nonrenewal, revocation, or suspension of any license, the licensee shall immediately surrender the license or licenses to the Comptroller. If the licensee fails to do so, the Comptroller has the right to seize the license or licenses.

(Source: P.A. 92-419, eff. 1-1-02.)

Section 99. Effective date. This Act takes effect January 1, 2008.