Full Text of SB1464 101st General Assembly
SB1464ham002 101ST GENERAL ASSEMBLY | Rep. Robert Martwick Filed: 5/26/2019
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| 1 | | AMENDMENT TO SENATE BILL 1464
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1464 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Funeral or Burial Funds Act is | 5 | | amended by changing Section 2 as follows:
| 6 | | (225 ILCS 45/2) (from Ch. 111 1/2, par. 73.102)
| 7 | | Sec. 2.
(a) If a purchaser selects a trust arrangement to | 8 | | fund the
pre-need contract, all trust deposits as determined by | 9 | | Section 1b shall be made
within 30 days of receipt.
| 10 | | (b) A trust established under this Act must be maintained | 11 | | with a corporate fiduciary as defined in Section 1-5.05 of the | 12 | | Corporate Fiduciary Act or with a foreign corporate fiduciary | 13 | | recognized by Article IV of the Corporate Fiduciary Act.
| 14 | | (c) Trust agreements and amendments to the trust agreements | 15 | | used to
fund a pre-need contract shall be filed with the | 16 | | Comptroller.
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| 1 | | (d) (Blank).
| 2 | | (e) A seller or provider shall furnish to the trustee and | 3 | | depositary the
name of each payor and the amount of payment on | 4 | | each such account for which
deposit is being so made. Nothing | 5 | | shall prevent the trustee from commingling the
deposits in any | 6 | | such trust fund for purposes of its management and the
| 7 | | investment of its funds as provided in the Common Trust Fund | 8 | | Act. In addition,
multiple trust funds maintained under this | 9 | | Act may be commingled or commingled
with other funeral or | 10 | | burial related trust funds if all record keeping
requirements | 11 | | imposed by law are met.
| 12 | | (f) (Blank).
| 13 | | (g) Upon no less than 30 days prior notice to the | 14 | | Comptroller, the seller may change
the trustee of
the fund. | 15 | | Failure to provide the Comptroller with timely prior notice is | 16 | | an intentional violation of this Act. | 17 | | (h) A trustee shall at least annually furnish to each | 18 | | purchaser a statement containing: (1) the receipts, | 19 | | disbursements, and inventory of the trust, including an | 20 | | explanation of any fees or expenses charged by the trustee | 21 | | under Section 5 of this Act or otherwise, (2) an explanation of | 22 | | the purchaser's right to a refund, if any, under this Act, and | 23 | | (3) identifying the primary regulator of the trust as a | 24 | | corporate fiduciary under state or federal law.
| 25 | | (i) If a trustee has reason to believe that the contact | 26 | | information for a purchaser is no longer valid, then the |
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| 1 | | trustee shall promptly notify the seller. If a trustee has | 2 | | reason to believe that the purchaser is deceased, then the | 3 | | trustee shall promptly notify the seller. A trustee shall | 4 | | report and remit to the State Treasurer any trust funds, | 5 | | including both the principal and any accrued earnings or | 6 | | losses, less any funds allowed to be retained under subsection | 7 | | (c-5) of Section 4, relating to an individual account that is | 8 | | presumed abandoned under the Revised Uniform Unclaimed | 9 | | Property Act. | 10 | | (Source: P.A. 96-879, eff. 2-2-10; 97-593, eff. 8-26-11.)
| 11 | | Section 10. The Revised Uniform Unclaimed Property Act is | 12 | | amended by changing Sections 15-102 and 15-201 as follows: | 13 | | (765 ILCS 1026/15-102)
| 14 | | Sec. 15-102. Definitions. In this Act: | 15 | | (1) "Administrator" means the State Treasurer. | 16 | | (2) "Administrator's agent" means a person with which | 17 | | the administrator contracts to conduct an examination | 18 | | under Article 10 on behalf of the administrator. The term | 19 | | includes an independent contractor of the person and each | 20 | | individual participating in the examination on behalf of | 21 | | the person or contractor. | 22 | | (2.5) (Blank). | 23 | | (3) "Apparent owner" means a person whose name appears | 24 | | on the records of a holder as the owner of property held, |
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| 1 | | issued, or owing by the holder. | 2 | | (4) "Business association" means a corporation, joint | 3 | | stock company, investment company, unincorporated | 4 | | association, joint venture, limited liability company, | 5 | | business trust, trust company, land bank, safe deposit | 6 | | company, safekeeping depository, financial organization, | 7 | | insurance company, federally chartered entity, utility, | 8 | | sole proprietorship, or other business entity, whether or | 9 | | not for profit. | 10 | | (5) "Confidential information" means information that | 11 | | is "personal information" under the Personal Information | 12 | | Protection Act, "private information" under the Freedom of | 13 | | Information Act or personal information contained within | 14 | | public records, the disclosure of which would constitute a | 15 | | clearly unwarranted invasion of personal privacy, unless | 16 | | the disclosure is consented to in writing by the individual | 17 | | subjects of the information as provided in the Freedom of | 18 | | Information Act. | 19 | | (6) "Domicile" means: | 20 | | (A) for a corporation, the state of its | 21 | | incorporation; | 22 | | (B) for a business association whose formation | 23 | | requires a filing with a state, other than a | 24 | | corporation, the state of its filing; | 25 | | (C) for a federally chartered entity or an | 26 | | investment company registered under the Investment |
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| 1 | | Company Act of 1940, the state of its home office; and | 2 | | (D) for any other holder, the state of its | 3 | | principal place of business. | 4 | | (7) "Electronic" means relating to technology having | 5 | | electrical, digital, magnetic, wireless, optical, | 6 | | electromagnetic, or similar capabilities. | 7 | | (8) "Electronic mail" means a communication by | 8 | | electronic means which is automatically retained and | 9 | | stored and may be readily accessed or retrieved. | 10 | | (8.5) "Escheat fee" means any charge imposed solely by | 11 | | virtue of property being reported as presumed abandoned. | 12 | | (9) "Financial organization" means a bank, savings | 13 | | bank, foreign bank, corporate fiduciary, currency | 14 | | exchange, money transmitter, or credit union. | 15 | | (10) "Game-related digital content" means digital | 16 | | content that exists only in an electronic game or | 17 | | electronic-game platform. The term: | 18 | | (A) includes: | 19 | | (i) game-play currency such as a virtual | 20 | | wallet, even if denominated in United States | 21 | | currency; and | 22 | | (ii) the following if for use or redemption | 23 | | only within the game or platform or another | 24 | | electronic game or electronic-game platform: | 25 | | (I) points sometimes referred to as gems, | 26 | | tokens, gold, and similar names; and |
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| 1 | | (II) digital codes; and | 2 | | (B) does not include an item that the issuer: | 3 | | (i) permits to be redeemed for use outside a | 4 | | game or platform for: | 5 | | (I) money; or | 6 | | (II) goods or services that have more than | 7 | | minimal value; or | 8 | | (ii) otherwise monetizes for use outside a | 9 | | game or platform. | 10 | | (11) "Gift card" means a record evidencing a promise | 11 | | made for consideration by the seller or issuer of the | 12 | | record that goods, services, or money will be provided to | 13 | | the owner of the record to the value or amount shown in the | 14 | | record that is either: | 15 | | (A) a record: | 16 | | (i) issued on a prepaid basis primarily for | 17 | | personal, family, or household purposes to a | 18 | | consumer in a specified amount; | 19 | | (ii) the value of which does not expire; | 20 | | (iii) that is not subject to a dormancy, | 21 | | inactivity, or post-sale service fee; | 22 | | (iv) that is redeemable upon presentation for | 23 | | goods or services; and | 24 | | (v) that, unless required by law, may not be | 25 | | redeemed for or converted into money or otherwise | 26 | | monetized by the issuer; or |
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| 1 | | (B) a prepaid commercial mobile radio service, as | 2 | | defined in 47 C.F.R. 20.3, as amended. | 3 | | (12) "Holder" means a person obligated to hold for the | 4 | | account of, or to deliver or pay to, the owner, property | 5 | | subject to this Act. | 6 | | (13) "Insurance company" means an association, | 7 | | corporation, or fraternal or mutual-benefit organization, | 8 | | whether or not for profit, engaged in the business of | 9 | | providing life endowments, annuities, or insurance, | 10 | | including accident, burial, casualty, credit-life, | 11 | | contract-performance, dental, disability, fidelity, fire, | 12 | | health, hospitalization, illness, life, malpractice, | 13 | | marine, mortgage, surety, wage-protection, and | 14 | | worker-compensation insurance. | 15 | | (14) "Loyalty card" means a record given without direct | 16 | | monetary consideration under an award, reward, benefit, | 17 | | loyalty, incentive, rebate, or promotional program which | 18 | | may be used or redeemed only to obtain goods or services or | 19 | | a discount on goods or services. The term does not include | 20 | | a record that may be redeemed for money or otherwise | 21 | | monetized by the issuer. | 22 | | (15) "Mineral" means gas, oil, coal, oil shale, other | 23 | | gaseous liquid or solid hydrocarbon, cement material, sand | 24 | | and gravel, road material, building stone, chemical raw | 25 | | material, gemstone, fissionable and nonfissionable ores, | 26 | | colloidal and other clay, steam and other geothermal |
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| 1 | | resources, and any other substance defined as a mineral by | 2 | | law of this State other than this Act. | 3 | | (16) "Mineral proceeds" means an amount payable for | 4 | | extraction, production, or sale of minerals, or, on the | 5 | | abandonment of the amount, an amount that becomes payable | 6 | | after abandonment. The term includes an amount payable: | 7 | | (A) for the acquisition and retention of a mineral | 8 | | lease, including a bonus, royalty, compensatory | 9 | | royalty, shut-in royalty, minimum royalty, and delay | 10 | | rental; | 11 | | (B) for the extraction, production, or sale of | 12 | | minerals, including a net revenue interest, royalty, | 13 | | overriding royalty, extraction payment, and production | 14 | | payment; and | 15 | | (C) under an agreement or option, including a | 16 | | joint-operating agreement, unit agreement, pooling | 17 | | agreement, and farm-out agreement. | 18 | | (17) "Money order" means a payment order for a | 19 | | specified amount of money. The term includes an express | 20 | | money order and a personal money order on which the | 21 | | remitter is the purchaser. | 22 | | (18) "Municipal bond" means a bond or evidence of | 23 | | indebtedness issued by a municipality or other political | 24 | | subdivision of a state. | 25 | | (19) "Net card value" means the original purchase price | 26 | | or original issued value of a stored-value card, plus |
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| 1 | | amounts added to the original price or value, minus amounts | 2 | | used and any service charge, fee, or dormancy charge | 3 | | permitted by law. | 4 | | (20) "Non-freely transferable security" means a | 5 | | security that cannot be delivered to the administrator by | 6 | | the Depository Trust Clearing Corporation or similar | 7 | | custodian of securities providing post-trade clearing and | 8 | | settlement services to financial markets or cannot be | 9 | | delivered because there is no agent to effect transfer. The | 10 | | term includes a worthless security. | 11 | | (21) "Owner", unless the context otherwise requires, | 12 | | means a person that has a legal, beneficial, or equitable | 13 | | interest in property subject to this Act or the person's | 14 | | legal representative when acting on behalf of the owner. | 15 | | The term includes: | 16 | | (A) a depositor, for a deposit; | 17 | | (B) a beneficiary, for a trust other than a deposit | 18 | | in trust; | 19 | | (C) a creditor, claimant, or payee, for other | 20 | | property; and | 21 | | (D) the lawful bearer of a record that may be used | 22 | | to obtain money, a reward, or a thing of value. | 23 | | (22) "Payroll card" means a record that evidences a | 24 | | payroll-card account as defined in Regulation E, 12 CFR | 25 | | Part 1005, as amended. | 26 | | (23) "Person" means an individual, estate, business |
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| 1 | | association, public corporation, government or | 2 | | governmental subdivision, agency, or instrumentality, or | 3 | | other legal entity, whether or not for profit. | 4 | | (24) "Property" means tangible property described in | 5 | | Section 15-201 or a fixed and certain interest in | 6 | | intangible property held, issued, or owed in the course of | 7 | | a holder's business or by a government, governmental | 8 | | subdivision, agency, or instrumentality. The term: | 9 | | (A) includes all income from or increments to the | 10 | | property; | 11 | | (B) includes property referred to as or evidenced | 12 | | by: | 13 | | (i) money, virtual currency, interest, or a | 14 | | dividend, check, draft, deposit, or payroll card; | 15 | | (ii) a credit balance, customer's overpayment, | 16 | | stored-value card, security deposit, refund, | 17 | | credit memorandum, unpaid wage, unused ticket for | 18 | | which the issuer has an obligation to provide a | 19 | | refund, mineral proceeds, or unidentified | 20 | | remittance; | 21 | | (iii) a security except for: | 22 | | (I) a worthless security; or | 23 | | (II) a security that is subject to a lien, | 24 | | legal hold, or restriction evidenced on the | 25 | | records of the holder or imposed by operation | 26 | | of law, if the lien, legal hold, or restriction |
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| 1 | | restricts the holder's or owner's ability to | 2 | | receive, transfer, sell, or otherwise | 3 | | negotiate the security; | 4 | | (iv) a bond, debenture, note, or other | 5 | | evidence of indebtedness; | 6 | | (v) money deposited to redeem a security, make | 7 | | a distribution, or pay a dividend; | 8 | | (vi) an amount due and payable under an annuity | 9 | | contract or insurance policy; | 10 | | (vii) an amount distributable from a trust or | 11 | | custodial fund established under a plan to provide | 12 | | health, welfare, pension, vacation, severance, | 13 | | retirement, death, stock purchase, profit-sharing, | 14 | | employee-savings, supplemental-unemployment | 15 | | insurance, or a similar benefit; and | 16 | | (viii) any instrument on which a financial | 17 | | organization or business association is directly | 18 | | liable; and | 19 | | (C) does not include: | 20 | | (i) game-related digital content; | 21 | | (ii) a loyalty card; or | 22 | | (iii) a gift card ; or . | 23 | | (iv) funds on deposit or held in trust pursuant | 24 | | to Section 16 of the Illinois Pre-Need Cemetery | 25 | | Sales Act. | 26 | | (25) "Putative holder" means a person believed by the |
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| 1 | | administrator to be a holder, until the person pays or | 2 | | delivers to the administrator property subject to this Act | 3 | | or the administrator or a court makes a final determination | 4 | | that the person is or is not a holder. | 5 | | (26) "Record" means information that is inscribed on a | 6 | | tangible medium or that is stored in an electronic or other | 7 | | medium and is retrievable in perceivable form. The phrase | 8 | | "records of the holder" includes records maintained by a | 9 | | third party that has contracted with the holder. | 10 | | (27) "Security" means: | 11 | | (A) a security as defined in Article 8 of the | 12 | | Uniform Commercial Code; | 13 | | (B) a security entitlement as defined in Article 8 | 14 | | of the Uniform Commercial Code, including a customer | 15 | | security account held by a registered broker-dealer, | 16 | | to the extent the financial assets held in the security | 17 | | account are not: | 18 | | (i) registered on the books of the issuer in | 19 | | the name of the person for which the broker-dealer | 20 | | holds the assets; | 21 | | (ii) payable to the order of the person; or | 22 | | (iii) specifically indorsed to the person; or | 23 | | (C) an equity interest in a business association | 24 | | not included in subparagraph (A) or (B). | 25 | | (28) "Sign" means, with present intent to authenticate | 26 | | or adopt a record: |
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| 1 | | (A) to execute or adopt a tangible symbol; or | 2 | | (B) to attach to or logically associate with the | 3 | | record an electronic symbol, sound, or process. | 4 | | (29) "State" means a state of the United States, the | 5 | | District of Columbia, the Commonwealth of Puerto Rico, the | 6 | | United States Virgin Islands, or any territory or insular | 7 | | possession subject to the jurisdiction of the United | 8 | | States. | 9 | | (30) "Stored-value card" means a card, code, or other | 10 | | device that is: | 11 | | (A) issued on a prepaid basis primarily for | 12 | | personal, family, or household purposes to a consumer | 13 | | in a specified amount, whether or not that amount may | 14 | | be increased or reloaded in exchange for payment; and | 15 | | (B) redeemable upon presentation at multiple | 16 | | unaffiliated merchants for goods or services or usable | 17 | | at automated teller machines; and | 18 | | "Stored-value card" does not include a gift card, | 19 | | payroll card, loyalty card, or game-related digital | 20 | | content. | 21 | | (31) "Utility" means a person that owns or operates for | 22 | | public use a plant, equipment, real property, franchise, or | 23 | | license for the following public services: | 24 | | (A) transmission of communications or information; | 25 | | (B) production, storage, transmission, sale, | 26 | | delivery, or furnishing of electricity, water, steam, |
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| 1 | | or gas; or | 2 | | (C) provision of sewage or septic services, or | 3 | | trash, garbage, or recycling disposal. | 4 | | (32) "Virtual currency" means a digital representation | 5 | | of value used as a medium of exchange, unit of account, or | 6 | | store of value, which does not have legal tender status | 7 | | recognized by the United States. The term does not include: | 8 | | (A) the software or protocols governing the | 9 | | transfer of the digital representation of value; | 10 | | (B) game-related digital content; or | 11 | | (C) a loyalty card or gift card. | 12 | | (33) "Worthless security" means a security whose cost | 13 | | of liquidation and delivery to the administrator would | 14 | | exceed the value of the security on the date a report is | 15 | | due under this Act.
| 16 | | (Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.) | 17 | | (765 ILCS 1026/15-201)
| 18 | | Sec. 15-201. When property presumed abandoned. Subject to | 19 | | Section 15-210, the following property is presumed abandoned if | 20 | | it is unclaimed by the apparent owner during the period | 21 | | specified below: | 22 | | (1) a traveler's check, 15 years after issuance; | 23 | | (2) a money order, 7 years after issuance; | 24 | | (3) any instrument on which a financial organization or | 25 | | business association is directly liable, 3 years after |
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| 1 | | issuance; | 2 | | (4) a state or municipal bond, bearer bond, or | 3 | | original-issue-discount bond, 3 years after the earliest | 4 | | of the date the bond matures or is called or the obligation | 5 | | to pay the principal of the bond arises; | 6 | | (5) a debt of a business association, 3 years after the | 7 | | obligation to pay arises; | 8 | | (6) a demand, savings, or time deposit, 3 years after | 9 | | the later of maturity or the date of the last indication of | 10 | | interest in the property by the apparent owner, except for | 11 | | a deposit that is automatically renewable, 3 years after | 12 | | its initial date of maturity unless the apparent owner | 13 | | consented in a record on file with the holder to renewal at | 14 | | or about the time of the renewal; | 15 | | (7) money or a credit owed to a customer as a result of | 16 | | a retail business transaction, other than in-store credit | 17 | | for returned merchandise, 3 years after the obligation | 18 | | arose; | 19 | | (8) an amount owed by an insurance company on a life or | 20 | | endowment insurance policy or an annuity contract that has | 21 | | matured or terminated, 3 years after the obligation to pay | 22 | | arose under the terms of the policy or contract or, if a | 23 | | policy or contract for which an amount is owed on proof of | 24 | | death has not matured by proof of the death of the insured | 25 | | or annuitant, as follows: | 26 | | (A) with respect to an amount owed on a life or |
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| 1 | | endowment insurance policy, the earlier of: | 2 | | (i) 3 years after the death of the insured; or | 3 | | (ii) 2 years after the insured has attained, or | 4 | | would have attained if living, the limiting age | 5 | | under the mortality table on which the reserve for | 6 | | the policy is based; and | 7 | | (B) with respect to an amount owed on an annuity | 8 | | contract, 3 years after the death of the annuitant. | 9 | | (9) funds on deposit or held in trust pursuant to the | 10 | | Illinois Funeral or Burial Funds Act, the earliest of: | 11 | | (A) 2 years after the date of death of the | 12 | | beneficiary; | 13 | | (B) one year after the date the beneficiary has | 14 | | attained, or would have attained if living, the age of | 15 | | 105 where the holder does not know whether the | 16 | | beneficiary is deceased; | 17 | | (C) 40 years after the contract for prepayment was | 18 | | executed , unless the apparent owner has indicated an | 19 | | interest in the property more than 40 years after the | 20 | | contract for prepayment was executed, in which case, 3 | 21 | | years after the last indication of interest in the | 22 | | property by the apparent owner ; | 23 | | (10) property distributable by a business association | 24 | | in the course of dissolution or distributions from the | 25 | | termination of a retirement plan, one year after the | 26 | | property becomes distributable; |
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| 1 | | (11) property held by a court, including property | 2 | | received as proceeds of a class action, 3 years after the | 3 | | property becomes distributable; | 4 | | (12) property held by a government or governmental | 5 | | subdivision, agency, or instrumentality, including | 6 | | municipal bond interest and unredeemed principal under the | 7 | | administration of a paying agent or indenture trustee, 3 | 8 | | years after the property becomes distributable; | 9 | | (13) wages, commissions, bonuses, or reimbursements to | 10 | | which an employee is entitled, or other compensation for | 11 | | personal services, including amounts held on a payroll | 12 | | card, one year after the amount becomes payable; | 13 | | (14) a deposit or refund owed to a subscriber by a | 14 | | utility, one year after the deposit or refund becomes | 15 | | payable, except that any capital credits or patronage | 16 | | capital retired, returned, refunded or tendered to a member | 17 | | of an electric cooperative, as defined in Section 3.4 of | 18 | | the Electric Supplier Act, or a telephone or | 19 | | telecommunications cooperative, as defined in Section | 20 | | 13-212 of the Public Utilities Act, that has remained | 21 | | unclaimed by the person appearing on the records of the | 22 | | entitled cooperative for more than 2 years, shall not be | 23 | | subject to, or governed by, any other provisions of this | 24 | | Act, but rather shall be used by the cooperative for the | 25 | | benefit of the general membership of the cooperative; and | 26 | | (15) property not specified in this Section or Sections |
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| 1 | | 15-202 through 15-208, the earlier of 3 years after the | 2 | | owner first has a right to demand the property or the | 3 | | obligation to pay or distribute the property arises. | 4 | | Notwithstanding anything to the contrary in this Section | 5 | | 15-201, and subject to Section 15-210, a deceased owner cannot | 6 | | indicate interest in his or her property. If the owner is | 7 | | deceased and the abandonment period for the owner's property | 8 | | specified in this Section 15-201 is greater than 2 years, then | 9 | | the property, other than an amount owed by an insurance company | 10 | | on a life or endowment insurance policy or an annuity contract | 11 | | that has matured or terminated, shall instead be presumed | 12 | | abandoned 2 years from the date of the owner's last indication | 13 | | of interest in the property.
| 14 | | (Source: P.A. 100-22, eff. 1-1-18; 100-566, eff. 1-1-18.) | 15 | | Section 15. The Illinois Pre-Need Cemetery Sales Act is | 16 | | amended by changing Section 16 and by adding Section 18.5 as | 17 | | follows:
| 18 | | (815 ILCS 390/16) (from Ch. 21, par. 216)
| 19 | | Sec. 16. Trust funds; disbursements.
| 20 | | (a) A trustee shall make no disbursements from the trust | 21 | | fund
except as provided in this Act.
| 22 | | (b) A trustee has a duty to invest and manage the trust | 23 | | assets pursuant to the Prudent Investor Rule under the Trusts | 24 | | and Trustees Act. Whenever the seller changes trustees pursuant |
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| 1 | | to this Act, the trustee must provide written notice of the | 2 | | change in trustees to the Comptroller no less than 28 days | 3 | | prior to the effective date of such a change in trustee. The | 4 | | trustee has an ongoing duty to provide the Comptroller with a | 5 | | current and true copy of the trust agreement under which the | 6 | | trust funds are held pursuant to this Act.
| 7 | | (c) The trustee may rely upon certifications and affidavits | 8 | | made to it
under the provisions of this Act, and shall not be | 9 | | liable to any person
for such reliance.
| 10 | | (d) A trustee shall be allowed to withdraw from the trust | 11 | | funds maintained
pursuant to this Act a reasonable fee pursuant | 12 | | to the Trusts and Trustees Act.
| 13 | | (e) The trust shall be a single-purpose trust fund. In the | 14 | | event of the
seller's bankruptcy, insolvency or assignment for | 15 | | the
benefit of creditors,
or an adverse judgment, the trust | 16 | | funds shall not be available to any creditor
as assets of the | 17 | | seller or to pay any expenses of any
bankruptcy or similar
| 18 | | proceeding, but shall be distributed to the purchasers or | 19 | | managed for their
benefit by the trustee holding the funds.
| 20 | | Except in an action by the Comptroller to revoke a license | 21 | | issued pursuant
to this Act and for creation of a receivership | 22 | | as provided in this Act, the
trust shall not be subject to | 23 | | judgment, execution, garnishment, attachment,
or other seizure | 24 | | by process in bankruptcy or otherwise, nor to sale, pledge,
| 25 | | mortgage, or other alienation, and shall not be assignable | 26 | | except as
approved by the Comptroller. The changes made by this |
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| 1 | | amendatory Act of
the 91st General Assembly are intended to | 2 | | clarify existing law regarding the
inability of licensees to | 3 | | pledge the trust.
| 4 | | (f) Because it is not known at the time of deposit or at | 5 | | the time that
income is earned on the trust account to whom the | 6 | | principal and the accumulated
earnings will be distributed, for | 7 | | purposes of determining the Illinois Income
Tax due on these | 8 | | trust funds, the principal and any accrued earnings or
losses | 9 | | relating to each individual account shall be held in suspense | 10 | | until
the final determination is made as to whom the account | 11 | | shall be paid.
| 12 | | (g) A trustee shall at least annually furnish to each | 13 | | purchaser a statement identifying: (1) the receipts, | 14 | | disbursements, and inventory of the trust, including an | 15 | | explanation of any fees or expenses charged by the trustee | 16 | | under paragraph (d) of this Section or otherwise, (2) an | 17 | | explanation of the purchaser's right to a refund, if any, under | 18 | | this Act, and (3) the primary regulator of the trust as a | 19 | | corporate fiduciary under state or federal law. | 20 | | (h) If the trustee has reason to believe that the contact | 21 | | information for a purchaser is no longer valid, then the | 22 | | trustee shall promptly notify the seller. If the trustee has | 23 | | reason to believe that the purchaser is deceased, then the | 24 | | trustee shall promptly notify the seller. A trustee shall remit | 25 | | as provided in Section 18.5 of this Act any pre-need trust | 26 | | funds, including both the principal and any accrued earnings or |
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| 1 | | losses, relating to an individual account that is presumed | 2 | | abandoned under Section 18.5. | 3 | | (Source: P.A. 96-879, eff. 2-2-10.)
| 4 | | (815 ILCS 390/18.5 new) | 5 | | Sec. 18.5. Presumptively abandoned trust funds. | 6 | | (a) After final payment on a pre-need contract, the entire | 7 | | amount held in trust attributable to undelivered cemetery | 8 | | merchandise and unperformed cemetery services, including | 9 | | undistributed interest earned thereon, is presumptively | 10 | | abandoned 2 years after the earlier of: | 11 | | (A) the later of: | 12 | | (i) the date the seller in the ordinary course of | 13 | | its business receives notice or an indication of the | 14 | | death of a beneficiary; or | 15 | | (ii) 10 years after the death of a beneficiary if a | 16 | | beneficiary is cremated and the purchaser or the heir | 17 | | or assign, or other beneficiaries if any, or a duly | 18 | | authorized representative of the purchaser or a | 19 | | beneficiary, has not indicated an interest in the trust | 20 | | funds; | 21 | | (B) the date a beneficiary has attained, or would have | 22 | | attained if living, the age of 105 where both the trustee | 23 | | and the seller do not know whether a beneficiary is | 24 | | deceased; or | 25 | | (C) 50 years after the pre-need contract was executed, |
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| 1 | | unless the purchaser or the heir or assign, or a duly | 2 | | authorized representative of the purchaser or a | 3 | | beneficiary, has indicated an interest in the property more | 4 | | than 50 years after the pre-need contract was executed, in | 5 | | which case, 3 years after the last indication of interest | 6 | | by the purchaser or the heir or assign, or a beneficiary, | 7 | | or a duly authorized representative of a purchaser or a | 8 | | beneficiary. | 9 | | (b) The period after which trust funds are presumed | 10 | | abandoned is measured from the later of: (1) the date the trust | 11 | | funds are presumed abandoned under this Section; or (2) the | 12 | | latest indication of interest by the apparent owner in the | 13 | | trust funds. If more than one beneficiary is included in a | 14 | | pre-need contract, an indication of interest by any one or more | 15 | | of the beneficiaries requires that the presumption of | 16 | | abandonment under paragraphs (A) and (B) of subsection (a) be | 17 | | evaluated based on the beneficiary's information. An | 18 | | indication of interest in the trust funds includes any one or | 19 | | more of the actions listed in subsection (b) of Section 15-210 | 20 | | of the Revised Uniform Unclaimed Property Act. | 21 | | (c) The seller shall notify the trustee of the pre-need | 22 | | trust funds in writing when any trust funds are presumed | 23 | | abandoned under this Section. | 24 | | (d) If the seller is licensed to hold care funds under the | 25 | | Cemetery Care Act, then within 30 days of receiving notice that | 26 | | pre-need trust funds are presumed abandoned under this Section, |
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| 1 | | the trustee of the pre-need trust funds shall remit the | 2 | | presumptively abandoned pre-need trust funds to the trustee for | 3 | | the care fund held pursuant to the Cemetery Care Act for | 4 | | deposit into such care fund. If the seller has retained an | 5 | | independent trustee pursuant to the Cemetery Care Act, then any | 6 | | funds remitted pursuant to this Section shall be remitted to | 7 | | the independent trustee. If the purchaser or beneficiary of | 8 | | pre-need trust funds presumed abandoned under this Section and | 9 | | deposited into a care fund makes a claim, then the seller shall | 10 | | direct the trustee of the care funds held pursuant to the | 11 | | Cemetery Care Act to refund the purchaser or beneficiary the | 12 | | amount that was deposited into the care fund. | 13 | | (e) If the seller is not licensed to hold care funds under | 14 | | the Cemetery Care Act, the trustee of pre-need trust funds | 15 | | shall remit presumptively abandoned trust funds to the | 16 | | Comptroller semi-annually within 30 days after the end of June | 17 | | and December for deposit into the Cemetery Consumer Protection | 18 | | Fund. If the purchaser or beneficiary of pre-need trust funds | 19 | | that were presumed abandoned under this Section and deposited | 20 | | into the Cemetery Consumer Protection Fund makes a claim, then | 21 | | either the seller shall request restitution or reimbursement | 22 | | from the Cemetery Consumer Protection Fund as provided in | 23 | | Section 22 and provide the cemetery merchandise or cemetery | 24 | | services pursuant to the pre-need contract, or the purchaser or | 25 | | beneficiary shall request restitution or reimbursement from | 26 | | the Cemetery Consumer Protection Fund as provided in Section |
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| 1 | | 22. | 2 | | (f) Notwithstanding any provision of this Act, the only | 3 | | penalties that may be imposed in connection with the | 4 | | administration of this Section are those provided in the | 5 | | Revised Uniform Unclaimed Property Act. ".
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