HB5627 103RD GENERAL ASSEMBLY

LRB103 37827 RTM 67957 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5627

Introduced 2/9/2024, by Rep. Jaime M. Andrade, Jr.

SYNOPSIS AS INTRODUCED:

225 ILCS 45/1	from Ch. 111 1/2, par. 73.101
225 ILCS 45/1a	from Ch. 111 1/2, par. 73.101a
225 ILCS 45/2c new
225 ILCS 45/10	from Ch. 111 1/2, par. 73.110

Amends the Illinois Funeral or Burial Funds Act. Defines the term "transportation protection agreement". Provides that the Illinois Insurance Code does not apply to any transportation protection agreement sold by any seller. Provides that nothing in the Act shall be deemed to apply to (1) merchandise that is delivered within 30 days of purchase, (2) a transportation protection agreement, or (3) pre-need cemetery sales (currently only pre-need cemetery sales) under the Illinois Pre-Need Cemetery Sales Act. Makes a change to a provision concerning payments under pre-need contracts.

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 1, 1a, and 10 and by adding Section 2c as follows:

(225 ILCS 45/1) (from Ch. 111 1/2, par. 73.101)

Sec. 1. Payment under pre-need contract. Except as otherwise provided in this Section, all sales proceeds paid to any person, partnership, association or corporation with respect to merchandise or services covered by this Act, upon any agreement or contract, or any series or combination of agreements or contracts, which has for a purpose the furnishing or performance of funeral services, or the furnishing or delivery of any personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body, including, but not limited to, outer burial containers, urns, combination casket-vault units, caskets and clothing, for future delivery use at a time determinable by the death of the person or persons whose body or bodies are to be so disposed of, shall be held to be trust funds, and shall be placed in trust in accordance with Sections 1b and 2, or shall be used to purchase life insurance or annuities in accordance with Section 2a. The person, partnership, association or corporation receiving said payments under a pre-need contract is hereby declared to be a trustee thereof until deposits of funds are made in accordance with Section 1b or 2a of this Act.

Nothing in this Act shall be construed to prohibit the inclusion of outer burial containers in sales contracts under the Illinois Pre-Need Cemetery Sales Act.

(Source: P.A. 96-879, eff. 2-2-10.)

(225 ILCS 45/1a) (from Ch. 111 1/2, par. 73.101a)

Sec. 1a. For the purposes of this Act, the following terms shall have the meanings specified, unless the context clearly requires another meaning:

"Beneficiary" means the person specified in the pre-need contract upon whose death funeral services or merchandise shall be provided or delivered.

"Licensee" means a seller of a pre-need contract who has been licensed by the Comptroller under this Act.

"Outer burial container" means any container made of concrete, steel, wood, fiberglass or similar material, used solely at the interment site, and designed and used exclusively to surround or enclose a separate casket and to support the earth above such casket, commonly known as a burial vault, grave box or grave liner, but not including a lawn crypt as defined in the Illinois Pre-need Cemetery Sales Act.

"Parent company" means a corporation owning more than 12 cemeteries or funeral homes in more than one state.

"Person" means any person, partnership, association, corporation, or other entity.

"Pre-need contract" means any agreement or contract, or any series or combination of agreements or contracts, whether funded by trust deposits or life insurance policies or annuities, which has for a purpose the furnishing or performance of funeral services or the furnishing or delivery of any personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body. Nothing in this Act is intended to regulate the content of a life insurance policy or a tax-deferred annuity.

"Provider" means a person who is obligated for furnishing or performing funeral services or the furnishing or delivery of any personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body.

"Purchaser" means the person who originally paid the money under or in connection with a pre-need contract.

"Sales proceeds" means the entire amount paid to a seller, exclusive of sales taxes paid by the seller, finance charges paid by the purchaser, and credit life, accident or disability insurance premiums, upon any agreement or contract, or series or combination of agreements or contracts, for the purpose of performing funeral services or furnishing personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body, including, but not limited to, the retail price paid for such services and personal property and merchandise.

"Purchase price" means sales proceeds less finance charges on retail installment contracts.

"Seller" means the person who sells or offers to sell the pre-need contract to a purchaser, whether funded by a trust agreement, life insurance policy, or tax-deferred annuity.

"Transportation protection agreement" means an agreement that primarily provides or arranges for services related to the preparation for the purpose of transportation and subsequent transportation of human remains or cremated remains.

"Trustee" means a person authorized to hold funds under this Act.

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

(225 ILCS 45/2c new)

Sec. 2c. Transportation protection agreements. The Illinois Insurance Code does not apply to any transportation protection agreement sold by any seller.

(225 ILCS 45/10) (from Ch. 111 1/2, par. 73.110)

Sec. 10. Nothing in this Act shall be deemed to apply to (1) merchandise that is delivered within 30 days of purchase, (2) a transportation protection agreement, or (3) pre-need cemetery sales under the "Illinois Pre-Need Cemetery Sales Act", enacted by the 84th General Assembly.

(Source: P.A. 85-293.)