102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5584
 
Introduced 1/31/2022___________, by 
 
SYNOPSIS AS INTRODUCED:
 

 
760 ILCS 100/4.1 new

     Amends the Cemetery Care Act. Requires every cemetery authority to choose the distribution of either of the following from a care fund: all net ordinary income; or a unitrust disbursement not exceeding 5% of the fair market value of the care fund. Requires the distribution method and the disbursement percentage selected to remain in effect unless the cemetery authority notifies the trustee and the Comptroller of its desire to effect a change. Requires a distribution from the care fund to be made on a monthly, quarterly, semiannual, or annual basis, as agreed upon by the cemetery authority and the trustee. Provides that in order to withdraw a unitrust disbursement, the fair market value of the care fund after the disbursement shall be greater than 80% of the aggregate fair market value of the care fund as of the end of the immediately preceding calendar year. Requires the trustee to pay reasonable operating expenses and taxes of the care fund itself. Provides that the provisions do not apply to a fraternal cemetery, a municipal, State, or federal cemetery, a religious cemetery, or a family burying ground.
  


LRB102 24793 LNS 34037 b

 
 
A BILL FOR
 

  
HB5584LRB102 24793 LNS 34037 b


  
1    AN ACT concerning civil law.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Cemetery Care Act is amended  by adding 
5Section 4.1 as follows:
 
6    (760 ILCS 100/4.1 new)
7    Sec. 4.1. Disbursement.
8    (a) Every cemetery authority shall choose the distribution 
9of either of the following from a care fund:
10        (1) all net ordinary income, including collected 
11    dividends, interest, and other income earned by the care 
12    fund, reduced by any expenses, including, but not limited 
13    to, taxes on income, fees, commissions, and costs; or
14        (2) a unitrust disbursement not exceeding 5% of the 
15    fair market value of the care fund. As used in this 
16    paragraph, "fair market value" means the average of the 
17    net fair market value of the assets of the care fund as of 
18    the last trading day for each of the 3 preceding fiscal 
19    years.
20    (b) A cemetery authority that selects the unitrust 
21disbursement method under paragraph (2) of subsection (a) 
22shall:
23        (1) deliver to the trustee of the care fund written 
 
 
HB5584- 2 -LRB102 24793 LNS 34037 b

1    instructions, including the disbursement percentage 
2    selected, not later than 60 days prior to the beginning of 
3    the calendar year; and
4        (2) deliver to the Comptroller a notification that the 
5    cemetery authority selected the unitrust disbursement 
6    method and the percentage selected.
7    (c) The distribution method and, if a unitrust 
8disbursement, the disbursement percentage selected shall 
9remain in effect unless the cemetery authority notifies the 
10trustee and the Comptroller of its desire to effect a change. 
11The trustee shall ensure that an investment policy is in place 
12and contains goals and objectives that are supportive of the 
13growth of the care fund.
14    (d) A distribution from the care fund shall be made on a 
15monthly, quarterly, semiannual, or annual basis, as agreed 
16upon by the cemetery authority and the trustee. If the trustee 
17does not receive written instructions from the cemetery 
18authority informing the trustee of the method of calculation 
19and distribution chosen, the trustee shall calculate and 
20distribute the net income, as earned, on a monthly basis.
21    (e) A unitrust disbursement may not be withdrawn unless 
22the fair market value of the care fund after the disbursement 
23is greater than 80% of the aggregate fair market value of the 
24care fund as of the end of the immediately preceding calendar 
25year. If this is not the case, the disbursement shall be 
26limited for that year to net ordinary income.
 
 
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1    (f) The trustee shall pay the reasonable operating 
2expenses and taxes of the care fund itself. If the operating 
3expenses and taxes paid are greater than 2.5% of the fair 
4market value at the end of the preceding calendar year and the 
5cemetery authority has selected a unitrust disbursement, the 
6trustee shall reduce the unitrust disbursement by the amount 
7exceeding 2.5%.
8    (g) This Section does not apply to a fraternal cemetery, a 
9municipal, State, or federal cemetery, a religious cemetery, 
10or a family burying ground.