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.

 

 

HB5584- 3 -LRB102 24793 LNS 34037 b

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.