State of Illinois
92nd General Assembly
Legislation

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92_HB2283

 
                                              LRB9201944LDprA

 1        AN ACT in relation to cemeteries.

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

 4        Section  5.   The  Grave  and Cemetery Restoration Act is
 5    amended by changing Section 1 as follows:

 6        (55 ILCS 70/1) (from Ch. 21, par. 61)
 7        Sec. 1. Care by county.
 8        (a)  The county board of any county may appropriate funds
 9    from the county treasury  to  be  used  for  the  purpose  of
10    putting  any  old,  neglected  graves  and  cemeteries in the
11    county in a cleaner and more respectable condition.
12        (b)  A county that has within its territory an  abandoned
13    cemetery may enter the cemetery grounds and cause the grounds
14    to be cleared and made orderly. Provided, in no event shall a
15    county  enter  an abandoned cemetery under this subsection if
16    the owner of the property or the legally responsible cemetery
17    authority provides written notification to the county,  prior
18    to  the  county's  entry  (1)  demonstrating the ownership or
19    authority to control or manage the cemetery and (2) declining
20    the county authorization to enter the property. In  making  a
21    cemetery  orderly  under  this  Section,  the county may take
22    necessary measures to correct dangerous conditions that exist
23    in regard to markers, memorials, or other cemetery  artifacts
24    but  may  not  permanently  remove  those  items  from  their
25    location  on  the cemetery grounds.  If an abandoned cemetery
26    is  dedicated  as  an  Illinois  nature  preserve  under  the
27    Illinois Natural Areas Preservation Act, any actions to cause
28    the  grounds  to  be  cleared  and  kept  orderly  shall   be
29    consistent  with  the  rules  and  master  plan governing the
30    dedicated nature preserve.
31        (c)  For the purposes of this Section:
 
                            -2-               LRB9201944LDprA
 1        "Abandoned cemetery" means an  area  of  land  containing
 2    more  than  6  places  of interment for which, after diligent
 3    search,  no  owner  of  the  land  or  currently  functioning
 4    cemetery authority objects to entry sought pursuant  to  this
 5    Section,  and  (1) at which no interments have taken place in
 6    at least 3 years; or (2) for which there has been  inadequate
 7    maintenance for at least 6 months.
 8        "Diligent  search"  includes,  but  is  not  limited  to,
 9    publication  of  a notice in a newspaper of local circulation
10    not more than 45 but at least 30 days  prior  to  a  county's
11    entry  and  cleanup  of  cemetery  grounds.  The notice shall
12    provide (1) notice of the county's intended entry and cleanup
13    of the cemetery; (2)  the  name,  if  known,  and  geographic
14    location  of  the  cemetery;  (3)  the  right of the cemetery
15    authority or owner of the  property  to  deny  entry  to  the
16    county upon written notice to the county; and (4) the date or
17    dates of the intended cleanup.
18        "Inadequate maintenance" includes, but is not limited to,
19    the  failure to cut the lawn throughout a cemetery to prevent
20    an overgrowth of grass and weeds; the failure to trim  shrubs
21    to prevent excessive overgrowth; the failure to trim trees so
22    as  to  remove  dead limbs; the failure to keep in repair the
23    drains, water lines,  roads,  buildings,  fences,  and  other
24    structures  of  the cemetery premises; or the failure to keep
25    the cemetery premises free of trash and debris.
26    (Source: P.A. 86-696.)

27        Section 10.  The Township Code  is  amended  by  changing
28    Section 130-5 as follows:

29        (60 ILCS 1/130-5)
30        Sec. 130-5.  Cemeteries; permitted activities.
31        (a)  A  township  may  establish  and maintain cemeteries
32    within and without  its  territory,  may  acquire  lands  for
 
                            -3-               LRB9201944LDprA
 1    cemeteries  by condemnation or otherwise, may lay out lots of
 2    convenient size for families, and may sell lots for a  family
 3    burying   ground  or  to  individuals  for  burial  purposes.
 4    Associations duly incorporated under the laws of  this  State
 5    for cemetery purposes shall have the same power and authority
 6    to  purchase  lands  and sell lots for burial purposes as are
 7    conferred upon townships under this Article.
 8        (b)  A  township  that  has  within  its   territory   an
 9    abandoned  cemetery  may enter the cemetery grounds and cause
10    the grounds to be cleared and made orderly. Provided,  in  no
11    event shall a township enter an abandoned cemetery under this
12    subsection  if  the  owner  of  the  property  or the legally
13    responsible cemetery authority provides written  notification
14    to   the   township,   prior  to  the  township's  entry  (1)
15    demonstrating the ownership or authority to control or manage
16    the cemetery and (2) declining the township authorization  to
17    enter  the  property. In making a cemetery orderly under this
18    Section, the township may take necessary measures to  correct
19    dangerous   conditions  that  exist  in  regard  to  markers,
20    memorials,  or  other  cemetery   artifacts   but   may   not
21    permanently  remove  those  items  from their location on the
22    cemetery grounds.  If an abandoned cemetery is  dedicated  as
23    an  Illinois nature preserve under the Illinois Natural Areas
24    Preservation Act, any actions to  cause  the  grounds  to  be
25    cleared  and  kept orderly shall be consistent with the rules
26    and master plan governing the dedicated nature preserve.
27        (c)  In this Section:
28        "Abandoned cemetery" means an  area  of  land  containing
29    more  than  6  places  of interment for which, after diligent
30    search,  no  owner  of  the  land  or  currently  functioning
31    cemetery authority objects to entry sought pursuant  to  this
32    Section,  and  (1) at which no interments have taken place in
33    at least 3 years; or (2) for which there has been  inadequate
34    maintenance for at least 6 months.
 
                            -4-               LRB9201944LDprA
 1        "Diligent  search"  includes,  but  is  not  limited  to,
 2    publication  of  a notice in a newspaper of local circulation
 3    not more than 45 but at least 30 days prior to  a  township's
 4    entry  and  cleanup  of  cemetery  grounds.  The notice shall
 5    provide (1) notice  of  the  township's  intended  entry  and
 6    cleanup  of  the  cemetery;  (2)  the  name,  if  known,  and
 7    geographic  location  of  the  cemetery; (3) the right of the
 8    cemetery authority or owner of the property to deny entry  to
 9    the township upon written notice to the township; and (4) the
10    date or dates of the intended cleanup.
11        "Inadequate maintenance" includes, but is not limited to,
12    the  failure to cut the lawn throughout a cemetery to prevent
13    an overgrowth of grass and weeds; the failure to trim  shrubs
14    to prevent excessive overgrowth; the failure to trim trees so
15    as  to  remove  dead limbs; the failure to keep in repair the
16    drains, water lines,  roads,  buildings,  fences,  and  other
17    structures  of  the cemetery premises; or the failure to keep
18    the cemetery premises free of trash and debris.
19    (Source: Laws 1963, p. 824; P.A. 88-62.)

20        Section 15.  The Illinois Municipal Code  is  amended  by
21    changing Section 11-49-1 as follows:

22        (65 ILCS 5/11-49-1) (from Ch. 24, par. 11-49-1)
23        Sec. 11-49-1. Cemeteries; permitted activities.
24        (a)  The  corporate  authorities of each municipality may
25    establish and  regulate  cemeteries  within  or  without  the
26    municipal  limits; may acquire lands therefor, by purchase or
27    otherwise; may  cause  cemeteries  to  be  removed;  and  may
28    prohibit their establishment within one mile of the municipal
29    limits.
30        (b)  The   corporate  authorities  also  may  enter  into
31    contracts to  purchase  existing  cemeteries,  or  lands  for
32    cemetery purposes, on deferred installments to be paid solely
 
                            -5-               LRB9201944LDprA
 1    from  the  proceeds  of  sale  of  cemetery  lots. Every such
 2    contract shall empower the purchasing  municipality,  in  its
 3    own  name,  to  execute  and  deliver  deeds to purchasers of
 4    cemetery lots for burial purposes.
 5        (c)  The corporate authorities of each municipality  that
 6    has  within its territory an abandoned cemetery may enter the
 7    cemetery grounds and cause the grounds to be cleared and made
 8    orderly.  Provided,  in  no   event   shall   the   corporate
 9    authorities  of  a  municipality  enter an abandoned cemetery
10    under this subsection if the owner of  the  property  or  the
11    legally   responsible  cemetery  authority  provides  written
12    notification to  the  corporate  authorities,  prior  to  the
13    corporate  authorities' entry (1) demonstrating the ownership
14    or authority to  control  or  manage  the  cemetery  and  (2)
15    declining  the corporate authority authorization to enter the
16    property. In making a cemetery orderly  under  this  Section,
17    the   corporate   authorities  of  a  municipality  may  take
18    necessary measures to correct dangerous conditions that exist
19    in regard to markers, memorials, or other cemetery  artifacts
20    but  may  not  permanently  remove  those  items  from  their
21    location  on  the cemetery grounds.  If an abandoned cemetery
22    is  dedicated  as  an  Illinois  nature  preserve  under  the
23    Illinois Natural Areas Preservation Act, any actions to cause
24    the  grounds  to  be  cleared  and  kept  orderly  shall   be
25    consistent  with  the  rules  and  master  plan governing the
26    dedicated nature preserve.
27        (d)  In this Section:
28        "Abandoned cemetery" means an  area  of  land  containing
29    more  than  6  places  of interment for which, after diligent
30    search,  no  owner  of  the  land  or  currently  functioning
31    cemetery authority objects to entry sought pursuant  to  this
32    Section,  and  (1) at which no interments have taken place in
33    at least 3 years; or (2) for which there has been  inadequate
34    maintenance for at least 6 months.
 
                            -6-               LRB9201944LDprA
 1        "Diligent  search"  includes,  but  is  not  limited  to,
 2    publication  of  a notice in a newspaper of local circulation
 3    not more than 45 but at least 30  days  prior  to  entry  and
 4    cleanup of cemetery grounds by the corporate authorities of a
 5    municipality.  The  notice  shall  provide  (1) notice of the
 6    corporate authorities' intended  entry  and  cleanup  of  the
 7    cemetery;  (2) the name, if known, and geographic location of
 8    the cemetery; (3) the right  of  the  cemetery  authority  or
 9    owner  of  the  property  to  deny  entry  to  the  corporate
10    authorities upon written notice to those authorities; and (4)
11    the date or dates of the intended cleanup.
12        "Inadequate maintenance" includes, but is not limited to,
13    the  failure to cut the lawn throughout a cemetery to prevent
14    an overgrowth of grass and weeds; the failure to trim  shrubs
15    to prevent excessive overgrowth; the failure to trim trees so
16    as  to  remove  dead limbs; the failure to keep in repair the
17    drains, water lines,  roads,  buildings,  fences,  and  other
18    structures  of  the cemetery premises; or the failure to keep
19    the cemetery premises free of trash and debris.
20    (Source: Laws 1961, p. 576.)

21        Section 20. The Illinois Funeral or Burial Funds  Act  is
22    amended  by changing Sections 1a, 1a-1, 2, 2a, 3, 3a, 3e, 3f,
23    4, 7.2, and 8 and by adding Sections 3a-5 and 8.1 as follows:

24        (225 ILCS 45/1a) (from Ch. 111 1/2, par. 73.101a)
25        Sec. 1a.  For the purposes of  this  Act,  the  following
26    terms  shall  have the meanings specified, unless the context
27    clearly requires another meaning:
28        "Beneficiary" means the person specified in the  pre-need
29    contract  upon  whose  death  funeral services or merchandise
30    shall be provided or delivered.
31        "Licensee" means a seller of a pre-need contract who  has
32    been licensed by the Comptroller under this Act.
 
                            -7-               LRB9201944LDprA
 1        "Outer  burial  container"  means  any  container made of
 2    concrete, steel, wood, fiberglass or similar  material,  used
 3    solely   at   the  interment  site,  and  designed  and  used
 4    exclusively to surround or enclose a separate casket  and  to
 5    support  the  earth  above  such  casket, commonly known as a
 6    burial vault, grave box or grave liner, but not  including  a
 7    lawn crypt as defined in the Illinois Pre-need Cemetery Sales
 8    Act.
 9        "Parent   company"   means   a  corporation  that  has  a
10    controlling interest in another corporation.
11        "Person"  means  any  person,  partnership,  association,
12    corporation, or other entity.
13        "Pre-need contract" means any agreement or  contract,  or
14    any series or combination of agreements or contracts, whether
15    funded  by  trust  deposits  or  life  insurance  policies or
16    annuities,  which  has  for  a  purpose  the  furnishing   or
17    performance of funeral services or the furnishing or delivery
18    of  any  personal  property,  merchandise, or services of any
19    nature in connection with the final  disposition  of  a  dead
20    human  body.  Nothing in this Act is intended to regulate the
21    content of a life insurance policy or a tax-deferred annuity.
22        "Provider" means a person who is obligated for furnishing
23    or performing funeral services or the furnishing or  delivery
24    of  any  personal  property,  merchandise, or services of any
25    nature in connection with the final  disposition  of  a  dead
26    human body.
27        "Purchaser"  means  the  person  who  originally paid the
28    money under or in connection with a pre-need contract.
29        "Sales proceeds"  means  the  entire  amount  paid  to  a
30    seller,  exclusive of sales taxes paid by the seller, finance
31    charges paid by the purchaser, and credit life,  accident  or
32    disability   insurance   premiums,   upon  any  agreement  or
33    contract,  or  series  or  combination   of   agreements   or
34    contracts,  for the purpose of performing funeral services or
 
                            -8-               LRB9201944LDprA
 1    furnishing personal property, merchandise, or services of any
 2    nature in connection with the final  disposition  of  a  dead
 3    human  body,  including, but not limited to, the retail price
 4    paid for such services and personal property and merchandise.
 5        "Purchase price" means the sales  proceeds  less  finance
 6    charges on retail installment contracts.
 7        "Seller" means the person who sells or offers to sell the
 8    pre-need  contract  to a purchaser, whether funded by a trust
 9    agreement, life insurance policy, or tax-deferred annuity.
10        "Trustee" means a person authorized to hold  funds  under
11    this Act.
12    (Source: P.A. 88-477.)

13        (225 ILCS 45/1a-1)
14        Sec. 1a-1.  Pre-need contracts.
15        (a)  It  shall  be unlawful for any seller doing business
16    within this State to accept sales proceeds from a  purchaser,
17    either directly or indirectly by any means, unless the seller
18    enters  into  a  pre-need  contract  with the purchaser which
19    meets the following requirements:
20             (1)  It states the name and address of the principal
21        office of the  seller  and  the  parent  company  of  the
22        seller,  if  any  provider, or clearly discloses that the
23        provider  will  be  selected  by  the  purchaser  or  the
24        purchaser's survivor or legal representative at  a  later
25        date, except that no contract shall contain any provision
26        restricting  the  right  of the contract purchaser during
27        his or her lifetime in making his or her own selection of
28        a provider.
29             (2)  It clearly identifies the  provider's  seller's
30        name  and address, the purchaser, and the beneficiary, if
31        other than the purchaser, and the provider, if  different
32        than  the  seller  or discloses that the provider will be
33        selected at a later date.
 
                            -9-               LRB9201944LDprA
 1             (2.5)  If the provider  has  branch  locations,  the
 2        contract  gives the purchaser the opportunity to identify
 3        the branch at which the funeral will be provided.
 4             (3)  It  contains  a  complete  description  of  the
 5        funeral merchandise and services to be provided  and  the
 6        price  of  the  merchandise  and services, and it clearly
 7        discloses  whether  the  price  of  the  merchandise  and
 8        services is guaranteed or not guaranteed as to price.
 9                  (A)  Each  guaranteed  price   contract   shall
10             contain  the  following  statement  in 12 point bold
11             type:
12                  THIS CONTRACT GUARANTEES  THE  BENEFICIARY  THE
13             SPECIFIC  GOODS  AND  SERVICES  CONTRACTED  FOR.  NO
14             ADDITIONAL CHARGES MAY BE REQUIRED.  FOR  DESIGNATED
15             GOODS   AND  SERVICES,  ADDITIONAL  CHARGES  MAY  BE
16             INCURRED FOR UNEXPECTED EXPENSES INCLUDING, BUT  NOT
17             LIMITED  TO, CASH ADVANCES, SHIPPING OF REMAINS FROM
18             A DISTANT PLACE, OR DESIGNATED HONORARIA ORDERED  OR
19             DIRECTED BY SURVIVORS.
20                  (B)  Except  as provided in subparagraph (C) of
21             this  paragraph  (3),  each   non-guaranteed   price
22             contract shall contain the following statement in 12
23             point bold type:
24                  THIS  CONTRACT DOES NOT GUARANTEE THE PRICE THE
25             BENEFICIARY WILL  PAY  FOR  ANY  SPECIFIC  GOODS  OR
26             SERVICES.   ANY  FUNDS  PAID UNDER THIS CONTRACT ARE
27             ONLY A DEPOSIT TO BE APPLIED TOWARD THE FINAL  PRICE
28             OF THE GOODS OR SERVICES CONTRACTED FOR.  ADDITIONAL
29             CHARGES MAY BE REQUIRED.
30                  (C)  If  a  non-guaranteed  price  contract may
31             subsequently become guaranteed, the  contract  shall
32             clearly disclose the nature of the guarantee and the
33             time,  occurrence,  or event upon which the contract
34             shall become a guaranteed price contract.
 
                            -10-              LRB9201944LDprA
 1             (4)  It provides that if the particular supplies and
 2        services  specified  in   the   pre-need   contract   are
 3        unavailable  at  the time of delivery, the provider shall
 4        be required to furnish supplies and services  similar  in
 5        style  and  at  least  equal  in  quality of material and
 6        workmanship.
 7             (5)  It discloses  any  penalties  or  restrictions,
 8        including  but  not limited to geographic restrictions or
 9        the inability of the provider, if selected,  to  perform,
10        on  the  delivery  of  merchandise, services, or pre-need
11        contract guarantees.
12             (6)  Regardless  of  the  method  of   funding   the
13        pre-need contract, the following must be disclosed:
14                  (A)  Whether  the  pre-need  contract  is to be
15             funded by a trust, life insurance, or an annuity;
16                  (B)  The nature of the relationship  among  the
17             person  entity  funding  the  pre-need contract, the
18             provider, if selected, and the seller; and
19                  (C)  The impact on the pre-need contract of (i)
20             any changes in the funding arrangement including but
21             not  limited   to   changes   in   the   assignment,
22             beneficiary  designation,  or use of the funds; (ii)
23             any  specific  penalties  to  be  incurred  by   the
24             contract  purchaser  as  a result of failure to make
25             payments; (iii) penalties to be incurred  or  moneys
26             or   refunds   to   be   received  as  a  result  of
27             cancellations; and  (iv)  all  relevant  information
28             concerning  what occurs and whether any entitlements
29             or  obligations  arise  if  there  is  a  difference
30             between  the  proceeds  of  the  particular  funding
31             arrangement and the amount actually  needed  to  pay
32             for the funeral at-need.; and
33                  (D)  The  method  of  changing or selecting the
34             designation of the provider.
 
                            -11-              LRB9201944LDprA
 1        (b)  All pre-need contracts are subject  to  the  Federal
 2    Trade  Commission  Rule concerning the Cooling-Off Period for
 3    Door-to-Door Sales (16 CFR Part 429).
 4        (c)  No pre-need contract shall be  sold  in  this  State
 5    unless  there  is  a  provider  for the services and personal
 6    property being sold, or unless disclosure has  been  made  by
 7    the  seller as provided in subdivision (a)(1).  If the seller
 8    is not a provider and a provider has been selected, then  the
 9    seller must have a binding agreement with a provider, and the
10    identity  of  the  provider  and  the nature of the agreement
11    between the seller and the provider shall be disclosed in the
12    pre-need contract at the time of  the  sale  and  before  the
13    receipt of any sales proceeds.  Any subsequent change made in
14    the  identity of the provider shall be approved in writing by
15    the purchaser and beneficiary within 30 days after it occurs.
16    The failure to disclose the identity  of  the  provider,  the
17    nature  of the agreement between the seller and the provider,
18    or any changes thereto to the purchaser and  beneficiary,  or
19    the  failure  to make the disclosures required in subdivision
20    (a)(1), constitutes an intentional violation of this Act.
21        (d)  All pre-need contracts must  be  in  writing  in  at
22    least  12 point type, numbered, and executed in duplicate and
23    no pre-need contract form shall be used without prior  filing
24    with the Comptroller.  A signed copy of the pre-need contract
25    must  be  provided to the purchaser at the time of entry into
26    the pre-need  contract.  The  Comptroller  shall  review  all
27    pre-need  contract  forms  and  shall  prohibit  the  use  of
28    contract forms which do not meet the requirements of this Act
29    upon   written  notification  to  the  seller.   Any  use  or
30    attempted use of any oral pre-need contract  or  any  written
31    pre-need contract in a form not filed with the Comptroller or
32    in  a  form  which does not meet the requirements of this Act
33    shall be deemed a violation of this Act and  is  voidable  by
34    the  purchaser  without  penalty.   Life  insurance policies,
 
                            -12-              LRB9201944LDprA
 1    tax-deferred annuities, endorsements, riders, or applications
 2    for life insurance or tax-deferred annuities are not  subject
 3    to  filing with the Comptroller.  The Comptroller may by rule
 4    develop a  model  pre-need  contract  form  which  meets  the
 5    requirements of this Act.
 6        (e)  The  State  Comptroller  shall  by  rule  develop  a
 7    booklet  for consumers in plain English describing the scope,
 8    application, and consumer protections of this Act.  After the
 9    adoption of these rules,  no pre-need contract shall be  sold
10    in  this  State  unless  the  seller  (i)  distributes to the
11    purchaser prior to the sale a booklet promulgated or approved
12    for use by the State Comptroller and  (ii)  explains  to  the
13    purchaser  the  terms  of  the pre-need contract prior to the
14    purchaser's signing.
15        (f)  All sales proceeds received  in  connection  with  a
16    pre-need  contract shall be deposited into a trust account as
17    provided in Section 1b and Section 2 of this Act, or shall be
18    used to purchase a  life  insurance  policy  or  tax-deferred
19    annuity as provided in Section 2a of this Act.
20        (g)  No  pre-need  contract  shall  be sold in this State
21    unless it is accompanied by  a  funding  mechanism  permitted
22    under  this  Act,  and  unless  the seller is licensed by the
23    Comptroller as provided in Section 3 of this Act.  Nothing in
24    this Act is intended to relieve sellers of pre-need contracts
25    from being licensed under any other Act  required  for  their
26    profession  or  business,  and  being  subject  to  the rules
27    promulgated  to  regulate  their  profession   or   business,
28    including rules on solicitation and advertisement.
29    (Source: P.A. 90-47, eff. 1-1-98.)

30        (225 ILCS 45/2) (from Ch. 111 1/2, par. 73.102)
31        Sec.  2.  (a)  If a purchaser selects a trust arrangement
32    to  fund  the  pre-need  contract,  all  trust  deposits   as
33    determined  by  Section  1b  shall  be made within 30 days of
 
                            -13-              LRB9201944LDprA
 1    receipt.
 2        (b)  A  trust  established  under  this   Act   must   be
 3    maintained:
 4             (1)  in  a  trust  account  established  in  a bank,
 5        savings and loan association,  savings  bank,  or  credit
 6        union  authorized  to  do  business  in Illinois in which
 7        accounts  are  insured  by  an  agency  of  the   federal
 8        government; or
 9             (2)  in a trust company authorized to do business in
10        Illinois.
11        (c)  Trust   agreements   and  amendments  to  the  trust
12    agreements used to fund a pre-need contract  shall  be  filed
13    with the Comptroller.
14        (d)  (Blank). Trust agreements shall follow the format of
15    the   standard  Funeral  Trust  Agreements  approved  by  the
16    Comptroller for guaranteed or  non-guaranteed  price  funeral
17    plans.
18        (e)  A  seller  or  provider shall furnish to the trustee
19    and depositary the name of  each  payor  and  the  amount  of
20    payment  on  each  such account for which deposit is being so
21    made.  Nothing shall prevent  the  trustee  or  a  seller  or
22    provider acting as a trustee in accordance with this Act from
23    commingling  the deposits in any such trust fund for purposes
24    of its management and the investment of its funds as provided
25    in the Common Trust Fund Act.  In  addition,  multiple  trust
26    funds   maintained  under  this  Act  may  be  commingled  or
27    commingled with other funeral or burial related  trust  funds
28    if all record keeping requirements imposed by law are met.
29        (f)  Trust   funds  may  be  maintained  in  a  financial
30    institution described in subsection (b) which is located in a
31    state  adjoining  this  State  where:   (1)   the   financial
32    institution  is located within 50 miles of the border of this
33    State, (2) its accounts are federally insured, and (3) it has
34    registered with the Illinois Secretary of State for  purposes
 
                            -14-              LRB9201944LDprA
 1    of service of process.
 2        (g)  Upon  notice  to  the  Comptroller,  the  seller may
 3    change the trustee of the fund.
 4    (Source: P.A. 88-477.)

 5        (225 ILCS 45/2a)
 6        Sec. 2a.  Purchase of insurance or annuity.
 7        (a)  If a  purchaser  selects  the  purchase  of  a  life
 8    insurance policy or tax-deferred annuity contract to fund the
 9    pre-need  contract,  the  application  and  collected premium
10    shall be mailed  within  30  days  of  signing  the  pre-need
11    contract.
12        (b)  If  life  insurance  or an annuity is used to fund a
13    pre-need contract, the seller or provider shall not be  named
14    as  the  owner  or  beneficiary of the policy or annuity.  No
15    person whose only insurable interest in the  insured  is  the
16    receipt  of  proceeds  from the policy or in naming who shall
17    receive the proceeds nor any trust acting on behalf  of  such
18    person  or  seller  or  provider  shall  be named as owner or
19    beneficiary of the policy or annuity.
20        (c)  Nothing   shall   prohibit   the   purchaser    from
21    irrevocably assigning ownership of the policy or annuity used
22    to  fund  a guaranteed price pre-need contract to a person or
23    trust for the purpose of  obtaining  favorable  consideration
24    for Medicaid, Supplemental Security Income, or another public
25    assistance  program,  as  permitted  under  federal law.  The
26    seller or contract provider may be named a nominal  owner  of
27    the  life  insurance policy only for such time as it takes to
28    immediately transfer the policy into  a  trust.   Except  for
29    this  purpose,  neither  the seller nor the contract provider
30    shall be named the owner or the beneficiary of the policy  or
31    annuity.  ,  except  that neither the seller nor the contract
32    provider shall be named the owner of the policy or annuity.
33        (d)  If a life insurance policy or  annuity  contract  is
 
                            -15-              LRB9201944LDprA
 1    used to fund a pre-need contract, except for guaranteed price
 2    contracts permitted in Section 4(a) of this Act, the pre-need
 3    contract  must be revocable, and any the assignment provision
 4    in  the  pre-need  contract  must   contain   the   following
 5    disclosure in 12 point bold type:
 6        THIS  ASSIGNMENT  MAY  BE  REVOKED  BY  THE  ASSIGNOR  OR
 7    ASSIGNOR'S  SUCCESSOR OR, IF THE ASSIGNOR IS ALSO THE INSURED
 8    AND DECEASED, BY THE REPRESENTATIVE OF THE  INSURED'S  ESTATE
 9    BEFORE  THE  RENDERING  TO  THE CEMETERY SERVICES OR GOODS OR
10    FUNERAL SERVICES OR GOODS.  IF THE ASSIGNMENT IS REVOKED, THE
11    DEATH BENEFIT UNDER THE  LIFE  INSURANCE  POLICY  OR  ANNUITY
12    CONTRACT  SHALL  BE  PAID  IN ACCORDANCE WITH THE BENEFICIARY
13    DESIGNATION UNDER THE INSURANCE POLICY OR ANNUITY CONTRACT.
14        (e)  Sales proceeds shall not be used  to  purchase  life
15    insurance  policies  or  tax-deferred  annuities  unless  the
16    company  issuing  the life insurance policies or tax-deferred
17    annuities  is  licensed  with  the  Illinois  Department   of
18    Insurance,  and  the  insurance producer or annuity seller is
19    licensed to do business in the State of Illinois.
20    (Source: P.A. 88-477.)

21        (225 ILCS 45/3) (from Ch. 111 1/2, par. 73.103)
22        Sec. 3.  Licensing.
23        (a)  No  person,  firm,   partnership,   association   or
24    corporation may act as seller without first securing from the
25    State  Comptroller  a license to so act. Application for such
26    license shall be in writing, signed by the applicant and duly
27    verified  on  forms  furnished  by  the   Comptroller.   Each
28    application shall contain at least the following:
29             (1)  The  full  name and address (both residence and
30        place of business) of the applicant,  and  every  member,
31        officer  and director thereof if the applicant is a firm,
32        partnership, association, or corporation,  and  of  every
33        shareholder  holding more than 10% of the corporate stock
 
                            -16-              LRB9201944LDprA
 1        if the applicant is a  corporation.  Any  license  issued
 2        pursuant  to  the  application shall be valid only at the
 3        address stated in the application for such  applicant  or
 4        at   such   new   address  as  may  be  approved  by  the
 5        Comptroller;
 6             (2)  A  statement  of  the  applicant's  assets  and
 7        liabilities approximate net worth;
 8             (3)  The  name  and  address  of   the   applicant's
 9        principal place of business at which the books, accounts,
10        and  records  shall  be  available for examination by the
11        Comptroller as required by this Act;
12             (4) The  names  and  addresses  of  the  applicant's
13        branch   locations  at  which  pre-need  sales  shall  be
14        conducted and which shall operate under the same  license
15        number as the applicant's principal place of business;
16             (5) For each individual listed under item (1) above,
17        a   detailed   statement  of  the  individual's  business
18        experience for the 10  years  immediately  preceding  the
19        application;  any present or prior connection between the
20        individual and  any  other  person  engaged  in  pre-need
21        sales;  any  felony  or misdemeanor convictions for which
22        fraud was an essential element; any charges or complaints
23        lodged against the individual  for  which  fraud  was  an
24        essential element and which resulted in civil or criminal
25        litigation;  any  failure of the individual to satisfy an
26        enforceable  judgment  entered  against  him  based  upon
27        fraud;  and  any  other  information  requested  by   the
28        Comptroller  relating  to  past business practices of the
29        individual. Since the information required by  this  item
30        (5)   may   be   confidential   or   contain  proprietary
31        information, this information shall not be  available  to
32        other  licensees  or the general public and shall be used
33        only for  the  lawful  purposes  of  the  Comptroller  in
34        enforcing this Act;
 
                            -17-              LRB9201944LDprA
 1             (6)  The name of the trustee and, if applicable, the
 2        names of the advisors to the trustee, including a copy of
 3        the proposed trust agreement under which the trust  funds
 4        are to be held as required by this Act; and
 5             (7)  Such  other  information as the Comptroller may
 6        reasonably   require   in   order   to   determine    the
 7        qualification  of the applicant to be licensed under this
 8        Act. and (3)
 9        (b)  Applications for license shall be accompanied  by  a
10    fidelity  bond executed by the applicant and a surety company
11    authorized to do business in this State  or  an  irrevocable,
12    unconditional  letter  of  credit  issued  by  a bank, credit
13    union, or trust company authorized  to  do  business  in  the
14    State  of  Illinois, as approved by the State Comptroller, in
15    such amount not exceeding  $10,000  as  the  Comptroller  may
16    require.   Individual  salespersons  employed  by  a licensee
17    shall not be required to obtain licenses in their  individual
18    capacities.   Upon  receipt  of  such application and bond or
19    letter of credit the Comptroller shall issue a license unless
20    he or she shall determine that the applicant has  made  false
21    statements  or  representations  in  such  application, or is
22    insolvent, or has  conducted  or  is  about  to  conduct  his
23    business in a fraudulent manner, or is not duly authorized to
24    transact  business  in this State. Such license shall be kept
25    conspicuously  posted  in  the  place  of  business  of   the
26    licensee. If, after notice and an opportunity to be heard, it
27    has  been  determined  that  a licensee has violated this Act
28    within the past 5 calendar years, or if a licensee  does  not
29    retain  a  corporate  fiduciary,  as defined in the Corporate
30    Fiduciary Act, to manage the funds in trust pursuant to  this
31    Act, the Comptroller may require an additional bond or letter
32    of  credit  from  the  licensee  from time to time in amounts
33    equal to one-tenth of such trust funds, which bond or  letter
34    of  credit  shall  run  to  the  Comptroller  for the use and
 
                            -18-              LRB9201944LDprA
 1    benefit of the beneficiaries of such trust funds.
 2        The licensee shall  keep  accurate  accounts,  books  and
 3    records  in  this  State,  at the principal place of business
 4    identified  in  the  licensee's  license  application  or  as
 5    otherwise approved by the  Comptroller  in  writing,  of  all
 6    transactions,   copies   of  all  pre-need  contracts,  trust
 7    agreements,  and  other  agreements,  dates  and  amounts  of
 8    payments made and accepted thereon, the names  and  addresses
 9    of  the  contracting  parties,  the persons for whose benefit
10    such funds are accepted, and the names of the depositaries of
11    such funds. Each licensee shall  maintain  the  documentation
12    for  a period of 3 years after the licensee has fulfilled his
13    obligations under the pre-need contract.  Additionally, for a
14    period not to exceed 6 months after the  performance  of  all
15    terms  in  a  pre-need  sales  contract,  the  licensee shall
16    maintain copies  of  the  contract  at  the  licensee  branch
17    location  where  the  contract  was entered.  If an insurance
18    policy or tax-deferred annuity is used to fund  the  pre-need
19    contract, the licensee under this Act shall keep and maintain
20    accurate  accounts,  books, and records in this State, at the
21    principal place of  business  identified  in  the  licensee's
22    application  or  as  otherwise approved by the Comptroller in
23    writing, of all insurance policies and tax-deferred annuities
24    used to fund the pre-need contract, the name and  address  of
25    insured, annuitant, and initial beneficiary, and the name and
26    address  of  the  insurance  company  issuing  the  policy or
27    annuity.  If a life insurance policy or tax-deferred  annuity
28    is  used  to  fund  a  pre-need  contract, the licensee shall
29    notify the insurance company of the  name  of  each  pre-need
30    contract  purchaser  and  the amount of each payment when the
31    pre-need contract, insurance policy or annuity is purchased.
32        The  licensee  shall  make  reports  to  the  Comptroller
33    annually or  at  such  other  time  as  the  Comptroller  may
34    require,  on forms furnished by the Comptroller. The licensee
 
                            -19-              LRB9201944LDprA
 1    shall file the annual report with the Comptroller  within  75
 2    days  after  the  end  of  the  licensee's  fiscal  year. The
 3    Comptroller shall for good cause shown grant an extension for
 4    the filing of the annual report upon the written  request  of
 5    the  licensee. Such extension shall not exceed 60 days.  If a
 6    licensee fails to submit an annual report to the  Comptroller
 7    within  the  time  specified in this Section, the Comptroller
 8    shall impose upon the licensee a penalty of $5 for  each  and
 9    every  day  the licensee remains delinquent in submitting the
10    annual report. Every application shall be  accompanied  by  a
11    check  or  money  order in the amount of $25 and every report
12    shall be accompanied by a check or money order in the  amount
13    of $10 payable to:  Comptroller, State of Illinois.
14        The  licensee  shall  make all required books and records
15    pertaining   to   trust   funds,   insurance   policies,   or
16    tax-deferred  annuities  available  to  the  Comptroller  for
17    examination. The Comptroller, or a person designated  by  the
18    Comptroller  who is trained to perform such examinations, may
19    at any time investigate the books, records  and  accounts  of
20    the licensee with respect to trust funds, insurance policies,
21    or  tax-deferred  annuities  and for that purpose may require
22    the attendance of and examine under oath  all  persons  whose
23    testimony  he  may  require. The licensee shall pay a fee for
24    such examination in accordance with a schedule established by
25    the Comptroller.  The fee shall not exceed the cost  of  such
26    examination.   For   pre-need   contracts   funded  by  trust
27    arrangements, the cost of an  initial  examination  shall  be
28    borne  by  the  licensee  if  it has $10,000 or more in trust
29    funds, otherwise, by the Comptroller.  The charge made by the
30    Comptroller for an examination shall be based upon the  total
31    amount  of trust funds held by the licensee at the end of the
32    calendar or fiscal year for which the report is  required  by
33    this  Act  and  shall  be  in  accordance  with the following
34    schedule:
 
                            -20-              LRB9201944LDprA
 1    Less than $10,000..................................no charge;
 2    $10,000 or more but less than $50,000....................$10;
 3    $50,000 or more but less than $100,000...................$40;
 4    $100,000 or more but less than $250,000..................$80;
 5    $250,000 or more........................................$100.
 6        The  Comptroller   may   order   additional   audits   or
 7    examinations  as he or she may deem necessary or advisable to
 8    ensure the safety and stability of the  trust  funds  and  to
 9    ensure  compliance with this Act.  These additional audits or
10    examinations  shall  only  be  made  after  good   cause   is
11    established  by  the  Comptroller  in the written order.  The
12    grounds for ordering these additional audits or  examinations
13    may include, but shall not be limited to:
14             (1)  material and unverified changes or fluctuations
15        in trust balances or insurance or annuity policy amounts;
16             (2)  the  licensee changing trustees more than twice
17        in any 12-month period;
18             (3)  any withdrawals or attempted  withdrawals  from
19        the  trusts,  insurance policies, or annuity contracts in
20        violation of this Act; or
21             (4)  failure to maintain  or  produce  documentation
22        required  by  this  Act for deposits into trust accounts,
23        trust investment activities, or life insurance or annuity
24        policies.
25        Prior to ordering an additional audit or examination, the
26    Comptroller shall request the licensee to respond and comment
27    upon the factors identified by the Comptroller as  warranting
28    the subsequent examination or audit.  The licensee shall have
29    30  days  to  provide  a response to the Comptroller.  If the
30    Comptroller  decides   to   proceed   with   the   additional
31    examination  or  audit, the licensee shall bear the full cost
32    of that examination or audit, up to a maximum of $7,500.  The
33    Comptroller may elect to pay for the examination or audit and
34    receive reimbursement from  the  licensee.   Payment  of  the
 
                            -21-              LRB9201944LDprA
 1    costs  of  the  examination or audit by a licensee shall be a
 2    condition of receiving, maintaining, or  renewing  a  license
 3    under  this  Act.  All moneys received by the Comptroller for
 4    examination or audit fees shall be maintained in  a  separate
 5    account to be known as the Comptroller's Administrative Fund.
 6    This  Fund, subject to appropriation by the General Assembly,
 7    may be utilized by the Comptroller for enforcing this Act and
 8    other purposes that may be authorized by law.
 9        For pre-need contracts funded  by  life  insurance  or  a
10    tax-deferred  annuity,  the  cost  of an examination shall be
11    borne by the licensee if it has received $10,000 or  more  in
12    premiums during the preceding calendar year. The fee schedule
13    for   such   examination   shall   be  established  in  rules
14    promulgated  by  the   Comptroller.   In   the   event   such
15    investigation   or   other   information   received   by  the
16    Comptroller  discloses  a  substantial   violation   of   the
17    requirements  of  this  Act, the Comptroller shall revoke the
18    license of such person upon a hearing  as  provided  in  this
19    Act.  Such  licensee may terminate all further responsibility
20    for  compliance  with  the  requirements  of  this   Act   by
21    voluntarily  surrendering  the license to the Comptroller, or
22    in the event of its loss, furnishing the Comptroller  with  a
23    sworn  statement  to that effect, which states the licensee's
24    intention to discontinue acceptance of funds  received  under
25    pre-need   contracts.  Such  license  or  statement  must  be
26    accompanied by an affidavit that said licensee  has  lawfully
27    expended  or  refunded  all  funds  received  under  pre-need
28    contracts,  and  that  the licensee will accept no additional
29    sales proceeds. The Comptroller shall immediately  cancel  or
30    revoke said license.
31    (Source: P.A. 88-477; 89-615, eff. 8-9-96.)

32        (225 ILCS 45/3a) (from Ch. 111 1/2, par. 73.103a)
33        Sec. 3a.  Denial, suspension, or revocation of license.
 
                            -22-              LRB9201944LDprA
 1        (a)  The  Comptroller  may refuse to issue or may suspend
 2    or revoke a license on any of the following grounds:
 3             (1)  The  applicant  or  licensee   has   made   any
 4        misrepresentations  or  false statements or concealed any
 5        material fact.
 6             (2)  The applicant or licensee is insolvent.
 7             (3)  The applicant or licensee has been  engaged  in
 8        business practices that work a fraud.
 9             (4)  The  applicant  or licensee has refused to give
10        pertinent data to the Comptroller.
11             (5)  The applicant or licensee has failed to satisfy
12        any enforceable judgment or decree rendered by any  court
13        of competent jurisdiction against the applicant.
14             (6)  The  applicant  or licensee has conducted or is
15        about to conduct business in a fraudulent manner.
16             (7)  The trustee advisors or the trust agreement  is
17        not satisfactory to the Comptroller.
18             (8)  The  fidelity  bond  is not satisfactory to the
19        Comptroller.
20             (9)  As  to  any  individual,  the  individual   has
21        conducted  or  is about to conduct any business on behalf
22        of  the  applicant  in  a  fraudulent  manner;  has  been
23        convicted of any  felony  or  misdemeanor,  an  essential
24        element  of  which  is fraud; has had a judgment rendered
25        against  him  or  her  based  on  fraud  in   any   civil
26        litigation;   has   failed  to  satisfy  any  enforceable
27        judgment or decree rendered against him  or  her  by  any
28        court of competent jurisdiction; or has been convicted of
29        any felony or any theft-related offense.
30             (10)  The   applicant  or  licensee,  including  any
31        member, officer, or director thereof if the applicant  or
32        licensee   is   a   firm,   partnership,  association  or
33        corporation and any shareholder holding more than 10%  of
34        the  corporate  stock, has violated any provision of this
 
                            -23-              LRB9201944LDprA
 1        Act or any regulation, decision, order, or  finding  made
 2        by the Comptroller under this Act.
 3             (11)  The  Comptroller  finds  any fact or condition
 4        existing which, if it had existed  at  the  time  of  the
 5        original   application   for  such  license,  would  have
 6        warranted the Comptroller in refusing the issuance of the
 7        license.
 8        (b)  Before  refusal  to  issue  or  renew   and   before
 9    suspension  or revocation of a license, the Comptroller shall
10    hold  a  hearing  to  determine  whether  the  applicant   or
11    licensee,  hereinafter  referred  to  as  the  respondent, is
12    entitled to hold such a license.  At  least 10 days prior  to
13    the  date  set for such hearing, the Comptroller shall notify
14    the respondent in writing  that  on  the  date  designated  a
15    hearing  will  be  held  to  determine  his eligibility for a
16    license and that he may appear in person or by counsel.  Such
17    written notice may be served on the respondent personally, or
18    by registered or certified  mail  sent  to  the  respondent's
19    business  address  as shown in his latest notification to the
20    Comptroller.  At the hearing, both  the  respondent  and  the
21    complainant shall be accorded ample opportunity to present in
22    person or by counsel such statements, testimony, evidence and
23    argument as may be pertinent to the charges or to any defense
24    thereto.    The  Comptroller  may  reasonably  continue  such
25    hearing from time to time.
26        The Comptroller may subpoena any  person  or  persons  in
27    this  State  and  take  testimony orally, by deposition or by
28    exhibit, in the same  manner  and  with  the  same  fees  and
29    mileage  allowances  as prescribed in judicial proceedings in
30    civil cases.
31        Any authorized agent of the  Comptroller  may  administer
32    oaths  to  witnesses  at any hearing which the Comptroller is
33    authorized to conduct.
34    (Source: P.A. 84-839.)
 
                            -24-              LRB9201944LDprA
 1        (225 ILCS 45/3a-5 new)
 2        Section 3a-5.  License requirements.
 3        (a)  Every license issued by the Comptroller shall  state
 4    the  number  of the license, the business name and address of
 5    the licensee's  principal  place  of  business,  each  branch
 6    location also operating under the license, and the licensee's
 7    parent  company,  if any.  The license shall be conspicuously
 8    posted in each place of business operating under the license.
 9    The Comptroller may issue such additional licenses as may  be
10    necessary  for licensee branch locations upon compliance with
11    the provisions of this Act governing an original issuance  of
12    a license for each new license.
13        (b)  Individual   salespersons  representing  a  licensee
14    shall not be required to obtain licenses in their  individual
15    capacities,  but  must  acknowledge,  by affidavit, that they
16    have  been  educated  in  the  provisions  of  this  Act  and
17    understand the penalties for failure to comply.  The licensee
18    shall retain copies of the affidavits of its sellers for  its
19    records  and  shall  make  the  affidavits  available  to the
20    Comptroller for examination upon request.
21        (c) The licensee shall be responsible for the  activities
22    of  any  person  representing  the  licensee  in  selling  or
23    offering a pre-need contract for sale.
24        (d)  Any person not selling on behalf of a licensee shall
25    obtain its own license.
26        (e)  No  license  shall  be  transferable  or  assignable
27    without the express written consent of  the  Comptroller.   A
28    transfer  of  more  than 50% of the ownership of any business
29    licensed  hereunder  shall  be  deemed  to  be  an  attempted
30    assignment of the license originally issued to  the  licensee
31    for which consent of the Comptroller shall be required.
32        (f)  Every license issued hereunder shall remain in force
33    until it has  been  suspended,  surrendered,  or  revoked  in
34    accordance  with  this Act. The Comptroller, upon the request
 
                            -25-              LRB9201944LDprA
 1    of an interested person or on his own motion, may  issue  new
 2    licenses  to  a  licensee whose license or licenses have been
 3    revoked, if no factor or condition then  exists  which  would
 4    have  warranted  the  Comptroller  to  originally  refuse the
 5    issuance of such license.

 6        (225 ILCS 45/3e) (from Ch. 111 1/2, par. 73.103e)
 7        Sec. 3e.  Upon  the  revocation  of,  suspension  of,  or
 8    refusal  to renew any license, the licensee shall immediately
 9    surrender the license  or  licenses  and  any  branch  office
10    licenses to the Comptroller.  If the licensee fails to do so,
11    the Comptroller shall have the right to seize the same.
12    (Source: P.A. 84-839.)

13        (225 ILCS 45/3f)
14        Sec. 3f.  Revocation of license.
15        (a)  The  Comptroller,  upon  determination  that grounds
16    exist for the revocation or suspension of  a  license  issued
17    under this Act, may revoke or suspend the license issued to a
18    particular  branch  office location with respect to which the
19    grounds for revocation or suspension may occur or exist.
20        (b)  Whenever a license is revoked by the Comptroller, he
21    or she shall apply to the Circuit Court of the county wherein
22    the licensee is located for  a  receiver  to  administer  the
23    trust funds of the licensee or to maintain the life insurance
24    policies  and  tax-deferred  annuities  held  by the licensee
25    under a pre-need contract.
26    (Source: P.A. 88-477.)

27        (225 ILCS 45/4) (from Ch. 111 1/2, par. 73.104)
28        Sec. 4. Withdrawal of funds; revocability of contract.
29        (a)  The amount or amounts so deposited into trust,  with
30    interest  thereon,  if  any, shall not be withdrawn until the
31    death of the person or persons for whose  funeral  or  burial
 
                            -26-              LRB9201944LDprA
 1    such  funds  were paid, unless sooner withdrawn and repaid to
 2    the  person  who  originally  paid  the  money  under  or  in
 3    connection with the pre-need contract or to his or her  legal
 4    representative.   The life insurance policies or tax-deferred
 5    annuities shall not be surrendered until  the  death  of  the
 6    person or persons for whose funeral or burial the policies or
 7    annuities  were  purchased,  unless  sooner  surrendered  and
 8    repaid  to  the  owner  of  the  policy purchased under or in
 9    connection with the pre-need contract or to his or her  legal
10    representative.   If,  however,  the  agreement  or series of
11    agreements provides for forfeiture and retention  of  any  or
12    all  payments  as  and  for liquidated damages as provided in
13    Section 6, then the trustee may  withdraw  the  deposits.  In
14    addition, nothing in this Section (i) prohibits the change of
15    depositary  by  the  trustee  and the transfer of trust funds
16    from one depositary to another or (ii) prohibits  a  contract
17    purchaser who is or may become eligible for public assistance
18    under  any applicable federal or State law or local ordinance
19    including, but not limited to, eligibility under  24  C.F.R.,
20    Part  913  relating to family insurance under federal Housing
21    and Urban Development Policy  from  irrevocably  waiving,  in
22    writing,  and  renouncing  the  right  to  cancel  a pre-need
23    contract for funeral services in an amount prescribed by rule
24    of the Illinois Department of Public Aid. No guaranteed price
25    pre-need funeral  contract  may  prohibit  a  purchaser  from
26    making  a contract irrevocable to the extent that federal law
27    or regulations require that such a  contract  be  irrevocable
28    for  purposes of the purchaser's eligibility for Supplemental
29    Security  Income  benefits,  Medicaid,  or   another   public
30    assistance program, as permitted under federal law.
31        (b)  If  for  any  reason  a  seller  or provider who has
32    engaged in pre-need sales has refused, cannot,  or  does  not
33    comply  with  the  terms  of  the  pre-need contract within a
34    reasonable time after he or she is required  to  do  so,  the
 
                            -27-              LRB9201944LDprA
 1    purchaser  or  his or her heirs or assigns or duly authorized
 2    representative shall have the right to a refund of an  amount
 3    equal  to  the  sales  proceeds  price  paid  for undelivered
 4    merchandise or services plus otherwise  earned  undistributed
 5    interest  amounts held in trust attributable to the contract,
 6    within 30 days of the filing of a sworn  affidavit  with  the
 7    trustee  setting  forth the existence of the contract and the
 8    fact of breach.  A copy of this affidavit shall be filed with
 9    the Comptroller and the seller.  In the  event  a  seller  is
10    prevented  from  performing by strike, shortage of materials,
11    civil disorder, natural  disaster,  or  any  like  occurrence
12    beyond  the  control of the seller or provider, the seller or
13    provider's time for performance  shall  be  extended  by  the
14    length  of  the delay.  Nothing in this Section shall relieve
15    the seller or provider from any liability for non-performance
16    of his or her obligations under the pre-need contract.
17        (c)  After final payment  on  a  pre-need  contract,  any
18    purchaser  may,  upon written demand to a seller, demand that
19    the pre-need contract with the  seller  be  terminated.   The
20    seller  shall,  within  30  days,  initiate  a  refund to the
21    purchaser of the entire amount held in trust attributable  to
22    undelivered  merchandise  and unperformed services, including
23    otherwise earned undistributed interest earned thereon or the
24    cash  surrender  value  of  a  life   insurance   policy   or
25    tax-deferred annuity.
26        (c-5)  If no funeral merchandise or services are provided
27    or  if the funeral is conducted by another person, the seller
28    may keep no more than 10% of  the  payments  made  under  the
29    pre-need  contract  or  $300,  whichever  sum  is  less.  The
30    remainder of the trust funds or insurance or annuity proceeds
31    shall be forwarded to the legal heirs of the deceased  or  as
32    determined by probate action.
33        (d)  The placement and retention of all or a portion of a
34    casket,   combination  casket-vault,  urn,  or  outer  burial
 
                            -28-              LRB9201944LDprA
 1    container  comprised  of  materials  which  are  designed  to
 2    withstand prolonged storage in the manner set forth  in  this
 3    paragraph   without   adversely   affecting   the  structural
 4    integrity or aesthetic characteristics of such merchandise in
 5    a specific burial space in which the person  or  persons  for
 6    whose  funeral  or  burial the merchandise was intended has a
 7    right of interment, or the placement of the merchandise in  a
 8    specific  mausoleum  crypt or lawn crypt in which such person
 9    has  a  right  of  entombment,  or  the  placement   of   the
10    merchandise  in  a  specific niche in which such person has a
11    right of inurnment, or delivery to such person and  retention
12    by such person until the time of need shall constitute actual
13    delivery to the person who originally paid the money under or
14    in  connection  with  said agreement or series of agreements.
15    Actual delivery shall eliminate, from and after the  date  of
16    actual  delivery,  any requirement under this Act to place or
17    retain in trust any funds  received  for  the  sale  of  such
18    merchandise.  The delivery, prior to the time of need, of any
19    funeral  or  burial  merchandise  in  any  manner  other than
20    authorized  by  this  Section  shall  not  constitute  actual
21    delivery and shall not eliminate any requirement  under  this
22    Act  to  place  or retain in trust any funds received for the
23    sale of such merchandise.
24    (Source: P.A. 87-1091; 88-477.)

25        (225 ILCS 45/7.2)
26        Sec. 7.2.  Investigation of unlawful  practices.   If  it
27    appears  to  the Comptroller that a person has engaged in, is
28    engaging in, or  is  about  to  engage  in  any  practice  in
29    violation  of  declared  to  be  unlawful  by  this  Act, the
30    Comptroller may:
31             (1)  require that person to file on  such  terms  as
32        the  Comptroller  prescribes  a  statement  or  report in
33        writing,  under  oath  or   otherwise,   containing   all
 
                            -29-              LRB9201944LDprA
 1        information  the  Comptroller  may  consider necessary to
 2        ascertain whether a licensee is in compliance  with  this
 3        Act,  or  whether  an  unlicensed  person  is engaging in
 4        activities for which a license is required;
 5             (2)  examine under oath  any  person  in  connection
 6        with  the  books  and  records pertaining to or having an
 7        impact upon  trust  funds,  insurance  policies,  or  tax
 8        deferred  annuities  required or allowed to be maintained
 9        pursuant to this Act;
10             (3)  examine any books and records of the  licensee,
11        trustee,  or  investment advisor that the Comptroller may
12        consider necessary to ascertain compliance with this Act;
13        and
14             (4)  require the production of a copy of any record,
15        book, document, account, or paper  that  is  produced  in
16        accordance  with  this  Act  and  retain it in his or her
17        possession until the completion  of  all  proceedings  in
18        connection with which it is produced.
19    (Source: P.A. 89-615, eff. 8-9-96.)

20        (225 ILCS 45/8) (from Ch. 111 1/2, par. 73.108)
21        Sec.   8.  Any  person  who  intentionally  violates  any
22    provision of this Act is guilty of a Class 4 felony.
23        If any person intentionally violates this Act or fails or
24    refuses to comply with any order of the  Comptroller  or  any
25    part  of  an order that has become final to the person and is
26    still in  effect,  the  Comptroller  may,  after  notice  and
27    hearing  at  which  it is determined that a violation of this
28    Act or the order has been committed, further order  that  the
29    person  shall  forfeit and pay to the State of Illinois a sum
30    not to exceed $5,000  for  each  violation.   This  liability
31    shall  be  enforced  in  an  action  brought  in any court of
32    competent jurisdiction by the Comptroller in the name of  the
33    People of the State of Illinois.
 
                            -30-              LRB9201944LDprA
 1        Any  violation  of  this  Act  for  which  a  fine may be
 2    assessed shall be established by  rules  promulgated  by  the
 3    Comptroller.
 4        In  addition to the other penalties and remedies provided
 5    in this Act, the Comptroller may bring a civil action in  the
 6    county  of  residence of the licensee or any person accepting
 7    trust funds to enjoin any violation or  threatened  violation
 8    of this Act.
 9        The  powers vested in the Comptroller by this Section are
10    in addition to any and all other powers and  remedies  vested
11    in the Comptroller by law.
12    (Source: P.A. 88-477.)

13        (225 ILCS 45/8.1 new)
14        Sec. 8.1.  Sales; liability of purchaser for shortage. In
15    the  event  of a sale or transfer of all or substantially all
16    of the assets of the licensee, the sale or  transfer  of  the
17    controlling  interest  of the corporate stock of the licensee
18    if the licensee is a corporation, the sale or transfer of the
19    controlling interest of the partnership if the licensee is  a
20    partnership,   or  the  sale  of  the  licensee  pursuant  to
21    foreclosure proceedings, the  purchaser  is  liable  for  any
22    shortages  existing  before  or  after  the sale in the trust
23    funds required to be maintained in a trust pursuant  to  this
24    Act and shall honor all pre-need contracts and trusts entered
25    into  by  the  licensee.  Any shortages existing in the trust
26    funds constitute a prior lien in favor of the trust  for  the
27    total  value  of the shortages, and notice of that lien shall
28    be provided in all sales instruments.
29        In  the  event  of  a  sale  or  transfer   of   all   or
30    substantially  all of the assets of the licensee, the sale or
31    transfer of the controlling interest of the  corporate  stock
32    of the licensee if the licensee is a corporation, or the sale
33    or transfer of the controlling interest of the partnership if
 
                            -31-              LRB9201944LDprA
 1    the  licensee  is a partnership, the licensee shall, at least
 2    21  days  prior  to  the  sale  or   transfer,   notify   the
 3    Comptroller,  in  writing,  of  the  pending  date of sale or
 4    transfer so as to permit the Comptroller to audit  the  books
 5    and  records  of  the  licensee.  The audit must be commenced
 6    within 10 business days of the receipt  of  the  notification
 7    and  completed  within  the 21-day notification period unless
 8    the Comptroller notifies the licensee during that period that
 9    there is a basis for  determining  a  deficiency  which  will
10    require  additional  time  to finalize.  The sale or transfer
11    may not be completed by the licensee unless and until:
12             (i) the Comptroller has completed the audit  of  the
13        licensee's books and records;
14             (ii) any delinquency existing in the trust funds has
15        been  paid  by the licensee, or arrangements satisfactory
16        to the Comptroller have been made by the licensee on  the
17        sale or transfer for the payment of any delinquency; and
18             (iii)   the   Comptroller   issues  a  license  upon
19        application of the  new  owner,  which  license  must  be
20        applied for within 30 days of the anticipated date of the
21        sale   or   transfer,  subject  to  the  payment  of  any
22        delinquencies, if any, as stated in item (ii).
23        For  purposes  of   this   Section,   a   person,   firm,
24    corporation,  partnership,  or  institution that acquires the
25    licensee through a real estate foreclosure shall  be  subject
26    to the provisions of this Section.

27        Section  25.   The Illinois Public Aid Code is amended by
28    changing Section 12-4.11 as follows:

29        (305 ILCS 5/12-4.11) (from Ch. 23, par. 12-4.11)
30        Sec. 12-4.11. Grant amounts.   The Department,  with  due
31    regard  for  and  subject  to  budgetary  limitations,  shall
32    establish   grant  amounts  for  each  of  the  programs,  by
 
                            -32-              LRB9201944LDprA
 1    regulation.  The grant amounts may vary by program,  size  of
 2    assistance unit and geographic area.
 3        Aid payments shall not be reduced except: (1) for changes
 4    in  the  cost  of items included in the grant amounts, or (2)
 5    for changes in the expenses of  the  recipient,  or  (3)  for
 6    changes   in   the  income  or  resources  available  to  the
 7    recipient, or  (4)  for  changes  in  grants  resulting  from
 8    adoption of a consolidated grant amount.
 9        In  fixing standards to govern payments or reimbursements
10    for  funeral  and  burial  expenses,  the  Department   shall
11    establish  a minimum allowable amount of not less than $1,000
12    for Department payment of funeral services and not less  than
13    $500  for Department payment of burial or cremation services.
14    In establishing the minimum allowable amount, the  Department
15    shall   take   into  account  the  services  essential  to  a
16    dignified, low-cost (i) funeral and (ii) burial or cremation,
17    including reasonable amounts that may be necessary for burial
18    space and cemetery charges, and any applicable taxes or other
19    required governmental fees  or  charges.  If  no  person  has
20    agreed  to  pay  the  total  cost of the (i) funeral and (ii)
21    burial or cremation charges, the  Department  shall  pay  the
22    vendor the actual costs of the (i) funeral and (ii) burial or
23    cremation,  or  the minimum allowable amount for each service
24    as established by the Department, whichever is less, provided
25    that the  Department  reduces  its  payments  by  the  amount
26    available  from  the following sources: the decedent's assets
27    and available resources and the anticipated  amounts  of  any
28    death  benefits  available  to  the  decedent's  estate,  and
29    amounts  paid  and  arranged  to  be  paid  by the decedent's
30    legally responsible relatives. A legally responsible relative
31    is expected to pay (i) funeral and (ii) burial  or  cremation
32    expenses unless financially unable to do so.
33        Nothing contained in this Section or in any other Section
34    of  this  Code  shall  be  construed to prohibit the Illinois
 
                            -33-              LRB9201944LDprA
 1    Department (1) from consolidating existing standards  on  the
 2    basis  of  any  standards  which are or were in effect on, or
 3    subsequent to  July  1,  1969,  or  (2)  from  employing  any
 4    consolidated standards in determining need for public aid and
 5    the   amount   of  money  payment  or  grant  for  individual
 6    recipients or recipient families.
 7    (Source:  P.A.  90-17,  eff.  7-1-97;  90-326,  eff.  8-8-97;
 8    90-372,  eff.  7-1-98;  90-655,  eff.  7-30-98;  91-24,  eff.
 9    7-1-99.)

10        Section 30. The Cemetery Care Act is amended by  changing
11    Sections  2a, 9, 10, 11, 11.1, 13, and 15b and adding Section
12    26 as follows:

13        (760 ILCS 100/2a) (from Ch. 21, par. 64.2a)
14        Sec. 2a.  Powers  and  duties  of  cemetery  authorities;
15    cemetery property maintained by cemetery care funds.
16        (a)  With  respect  to  cemetery  property  maintained by
17    cemetery  care  funds,  a  cemetery  authority  is  shall  be
18    responsible for the performance of:
19             (1) (a)  the care and maintenance  of  the  cemetery
20        property it owns; and
21             (2)  (b)  the  opening  and  closing  of all graves,
22        crypts, or niches  for  human  remains  in  any  cemetery
23        property it owns.
24        (b)  A  cemetery authority owning, operating, controlling
25    or managing  a  privately  operated  cemetery  shall  provide
26    reasonable  maintenance  of  the cemetery property and of the
27    lots, graves,  crypts,  and  columbariums  in  the  cemetery.
28    Reasonable maintenance includes, but is not limited to:
29             (1)  the  laying  of  seed,  sod,  or other suitable
30        ground  cover  as  soon  as  practicable   following   an
31        interment  given the weather conditions, climate, season,
32        and the interment's proximity to ongoing burial activity;
 
                            -34-              LRB9201944LDprA
 1             (2) the cutting of the lawn throughout the  cemetery
 2        at reasonable intervals to prevent an overgrowth of grass
 3        and  weeds  given  the  weather  conditions, climate, and
 4        season;
 5             (3) the trimming  of  shrubs  to  prevent  excessive
 6        overgrowth;
 7             (4) the trimming of trees to remove dead limbs;
 8             (5)  keeping  in  repair  the  drains,  water lines,
 9        roads, buildings, fences, and other structures; and
10             (6) keeping the cemetery premises free of trash  and
11        debris.
12        Reasonable  maintenance  by  the cemetery authority shall
13    not preclude the exercise of lawful rights by an owner of  an
14    interment,  inurnment,  or  entombment  right, or the owner's
15    family and heirs, in accordance with the reasonable rules and
16    regulations  of  the  cemetery  or  other  agreement  of  the
17    cemetery authority.  In the case of a cemetery dedicated as a
18    nature preserve under the Illinois Natural Areas Preservation
19    Act, reasonable maintenance by the cemetery  authority  shall
20    be in accordance with the rules and master plan governing the
21    dedicated nature preserve.
22        (c)  A  cemetery authority owning, operating, controlling
23    or  managing  a  privately  operated  cemetery   shall   make
24    available for inspection, and upon reasonable request provide
25    a  copy  of, its rules and regulations and its current prices
26    of interment, inurnment, or entombment rights.
27        (d) A cemetery authority owning,  operating,  controlling
28    or  managing  a privately operated cemetery may, from time to
29    time as land in its  cemetery  may  be  required  for  burial
30    purposes,  survey and subdivide those lands and make and file
31    in its office a map thereof delineating the  lots  or  plots,
32    avenues,  paths,  alleys,  and  walks  and  their  respective
33    designations.   The  cemetery authority shall open the map to
34    public inspection. The cemetery authority may make  available
 
                            -35-              LRB9201944LDprA
 1    a  true  copy  of the map upon written request and payment of
 2    reasonable photocopy fees. Any unsold lots,  plots  or  parts
 3    thereof,  in  which  there  are  not  human  remains,  may be
 4    resurveyed  and  altered  in  shape  or  size,  and  properly
 5    designated  on  such  map.    Nothing   contained   in   this
 6    subsection,  however,  shall  prevent  the cemetery authority
 7    from enlarging an interment right by  selling  to  the  owner
 8    thereof  the  excess  space  next to such interment right and
 9    permitting interments therein, provided reasonable access  to
10    such interment right and to adjoining interment rights is not
11    thereby eliminated.
12        (e)  A cemetery authority owning, operating, controlling,
13    or managing a privately operated cemetery shall keep a record
14    of  every  interment,  entombment,  and  inurnment   in   the
15    cemetery.  The record shall include the deceased's name, age,
16    and   date   of   burial,   when  these  particulars  can  be
17    conveniently obtained, and the lot, plot,  or  section  where
18    the  human  remains  are  interred, entombed, or inurned. The
19    record shall be  open  to  public  inspection.  The  cemetery
20    authority shall make available a true copy of the record upon
21    written request and payment of reasonable copy costs.
22        (f)  A cemetery authority owning, operating, controlling,
23    or managing  a  privately  operated  cemetery  shall  provide
24    access   to  the  cemetery  under  the  cemetery  authority's
25    reasonable rules and regulations.
26    (Source: P.A. 87-747.)

27        (760 ILCS 100/9) (from Ch. 21, par. 64.9)
28        Sec. 9. Application for license.
29        (a)  Prior to the acceptance of care funds authorized  by
30    Section  3  of  this  Act  or  the  sale  or  transfer of the
31    controlling interest of  a  licensed  cemetery  authority,  a
32    cemetery   authority   owning,   operating,  controlling,  or
33    managing a privately operated cemetery shall make application
 
                            -36-              LRB9201944LDprA
 1    to the Comptroller for a license to hold the funds.  Whenever
 2    a   cemetery  authority  owning,  operating,  controlling  or
 3    managing a privately operated cemetery is newly organized and
 4    such cemetery authority desires to be licensed to accept  the
 5    care  funds  authorized by Section 3 of this Act, or whenever
 6    there is a sale or transfer of the controlling interest of  a
 7    licensed  cemetery  authority,  it shall make application for
 8    such license.
 9        In the case of a sale  or  transfer  of  the  controlling
10    interest  of  the cemetery authority, the prior license shall
11    remain in effect until the Comptroller issues a  new  license
12    to  the  newly-controlled  cemetery  authority as provided in
13    Section 15b.  Upon issuance of the  new  license,  the  prior
14    license  shall  be  deemed  surrendered  if  the licensee has
15    agreed to the sale and transfer  and  has  consented  to  the
16    surrender  of  the  license.   A  sale  or  transfer  of  the
17    controlling  interest of a cemetery authority to an immediate
18    family member is not considered a transfer of the controlling
19    interest for purposes of this Section.
20        (b)  Applications for license shall  be  filed  with  the
21    Comptroller.  Applications  shall  be  in writing under oath,
22    signed by the applicant, and in the  form  furnished  by  the
23    Comptroller.    The  form  furnished by the Comptroller shall
24    enable a cemetery authority to apply for license of  multiple
25    cemetery  locations  within a single license application.   A
26    check or money order in the amount of $25 per license seeking
27    to be issued under the application, payable to:  Comptroller,
28    State of Illinois, shall be included.  Each application shall
29    contain the following:
30             (1)  the  full  name  and address (both of residence
31        and of  place  of  business)  of  the  applicant,  if  an
32        individual;  of  every  member,  if  the  applicant  is a
33        partnership  or  association;  of   every   officer,   or
34        director,  if the applicant is a corporation;, and of any
 
                            -37-              LRB9201944LDprA
 1        party owning 10% or more of the cemetery  authority,  and
 2        the full name and address of the parent company, if any;
 3             (2)  a  detailed statement of the applicant's assets
 4        and liabilities;
 5             (2.1)  the name, address, and  legal  boundaries  of
 6        each cemetery for which the care funds shall be entrusted
 7        and  at  which  books,  accounts,  and  records  shall be
 8        available for examination by the Comptroller as  required
 9        by Section 13 of this Act;
10             (3)  as to the name of each individual person listed
11        under  (1)  above,  a detailed statement of each person's
12        business  experience  for  the   10   years   immediately
13        preceding  the  application;  the  present  and  previous
14        connection,  if  any,  of  each  person  with  any  other
15        cemetery  or  cemetery authority; whether each person has
16        ever been convicted of any a  felony  or  has  ever  been
17        convicted  of  any  misdemeanor  of  which  an  essential
18        element  is  fraud  or  has  been  involved  in any civil
19        litigation in which a judgment has been  entered  against
20        him  or  her  based  on  fraud;  whether  each  person is
21        currently  a  defendant  in  any  lawsuit  in  which  the
22        complaint against the person is based upon fraud; whether
23        such  person  has  failed  to  satisfy  any   enforceable
24        judgment  entered by a court of competent jurisdiction in
25        any civil proceedings against such individual; and
26             (4)  the total amount in  trust  and  now  available
27        from  sales  of lots, graves, crypts or niches where part
28        of the sale price has been placed in trust; the amount of
29        money placed in the care funds  of  each  applicant;  the
30        amount  set  aside  in  care funds from the sale of lots,
31        graves, crypts and niches for the  general  care  of  the
32        cemetery  and  the amount available for that purpose; the
33        amount received in trust by special agreement for special
34        care and the  amount  available  for  that  purpose;  the
 
                            -38-              LRB9201944LDprA
 1        amount of principal applicable to trust funds received by
 2        the applicant; and.
 3             (5)  any  other information that the Comptroller may
 4        reasonably   require   in   order   to   determine    the
 5        qualifications of the applicant to be licensed under this
 6        Act.
 7        Such  information  shall  be  furnished  whether the care
 8    funds  are  held  by  the  applicant  as  trustee  or  by  an
 9    independent trustee.  If  the  funds  are  not  held  by  the
10    applicant,  the  name of the independent trustee holding them
11    is also to be furnished by the applicant.
12        (c)  Applications for license shall also  be  accompanied
13    by  a  fidelity bond issued by a bonding company or insurance
14    company authorized to do business in  this  State  or  by  an
15    irrevocable,  unconditional letter of credit issued by a bank
16    or trust company authorized to do business in  the  State  of
17    Illinois,  as  approved  by the State Comptroller, where such
18    care funds exceed the sum of $15,000.  Such bond or letter of
19    credit shall run to the Comptroller and his or her  successor
20    for  the  benefit  of  the  care  funds held by such cemetery
21    authority or by  the  trustee  of  the  care  funds  of  such
22    cemetery authority.  Such bonds or letters of credit shall be
23    in an amount equal to 1/10 of such care funds.  However, such
24    bond  or letter of credit shall not be in an amount less than
25    $1,000; the first $15,000 of such care  funds  shall  not  be
26    considered  in computing the amount of such bond or letter of
27    credit.  No application shall be accepted by the  Comptroller
28    unless accompanied by such bond or letter of credit.
29        Applications  for  license  by  newly  organized cemetery
30    authorities after January 1, 1960 shall also  be  accompanied
31    by evidence of a minimum care fund deposit in an amount to be
32    determined  as  follows: if the number of inhabitants, either
33    in the county in which the cemetery is to be  located  or  in
34    the  area  included within a 10 mile radius from the cemetery
 
                            -39-              LRB9201944LDprA
 1    if the number of inhabitants therein is greater, is 25,000 or
 2    less  the  deposit  shall  be  $7,500;  if  the   number   of
 3    inhabitants  is  25,001  to  50,000,  the  deposit  shall  be
 4    $10,000;  if  the number of inhabitants is 50,001 to 125,000,
 5    the deposit shall be $15,000; if the number of inhabitants is
 6    over 125,000, the deposit shall be $25,000.
 7        After an amount equal to and in addition to the  required
 8    minimum  care  fund  deposit has been deposited in trust, the
 9    cemetery authority may withhold 50% of all future care  funds
10    until  it  has  recovered the amount of the minimum care fund
11    deposit.
12        (d)  (Blank).  The  applicant  shall  have  a   permanent
13    address and any license issued pursuant to the application is
14    valid  only  at the address or at any new address approved by
15    the Comptroller.
16        (e)  All bonds and bonding deposits made by any  cemetery
17    authority  may  be  returned  to  the  cemetery  authority or
18    cancelled as  to  care  funds  invested  with  an  investment
19    company.
20    (Source: P.A. 89-615, eff. 8-9-96; 90-655, eff. 7-30-98.)

21        (760 ILCS 100/10) (from Ch. 21, par. 64.10)
22        Sec.  10.   Upon receipt of such application for license,
23    the Comptroller shall issue a license to the applicant unless
24    the Comptroller determines that:
25        (a)  The applicant has  made  any  misrepresentations  or
26    false  statements  or has concealed any essential or material
27    fact, or
28        (b)  The applicant is insolvent; or
29        (c)  The applicant is or has been using practices in  the
30    conducting of the cemetery business that work or tend to work
31    a fraud; or
32        (d)  The   applicant  has  refused  to  furnish  or  give
33    pertinent data to the Comptroller; or
 
                            -40-              LRB9201944LDprA
 1        (e)  The applicant has failed to notify  the  Comptroller
 2    with   respect   to   any  material  facts  required  in  the
 3    application for license under the provisions of this Act; or
 4        (f)  The applicant has failed to satisfy any  enforceable
 5    judgment   entered   by   the  circuit  court  in  any  civil
 6    proceedings against such applicant; or
 7        (g)  The applicant has conducted or is about  to  conduct
 8    its business in a fraudulent manner; or
 9        (h)  The   applicant  or  any  As  to  the  name  of  any
10    individual listed in the license application, such individual
11    has conducted or is about to conduct any business  on  behalf
12    of  the  applicant  in  a  fraudulent  manner;  or  has  been
13    convicted  of  a  felony  or  any  misdemeanor  of  which  an
14    essential element is fraud; or has been involved in any civil
15    litigation  in  which a judgment has been entered against him
16    or  her  based  on  fraud;  or  has  failed  to  satisfy  any
17    enforceable judgment entered by  the  circuit  court  in  any
18    civil  proceedings  against  such  individual;  or  has  been
19    convicted  of  any  felony;  or  has  been  convicted  of any
20    theft-related offense; or  has  failed  to  comply  with  the
21    requirements  of  this  Act; or has demonstrated a pattern of
22    failing to open or close any graves, crypts,  or  niches  for
23    human remains in the cemetery within a reasonable time frame;
24    or  has  demonstrated a pattern of placing human remains in a
25    final  resting  place  other  than  that  required  under  an
26    agreement with a consumer; or has demonstrated a  pattern  of
27    improperly failing to honor a contract with a consumer; or
28        (i)  The  applicant  has  ever  had  a  license involving
29    cemeteries or funeral homes revoked, suspended, or refused to
30    be issued in Illinois or elsewhere.
31        If the Comptroller so determines, then he  or  she  shall
32    conduct   a   hearing   to  determine  whether  to  deny  the
33    application. However, no application shall be  denied  unless
34    the  applicant  has had at least 10 days' notice of a hearing
 
                            -41-              LRB9201944LDprA
 1    on the application and an opportunity to be heard thereon. If
 2    the application is denied, the Comptroller  shall  within  20
 3    days thereafter prepare and keep on file in his or her office
 4    the  transcript  of the evidence taken and a written order of
 5    denial thereof, which shall contain his or her findings  with
 6    respect  thereto  and  the reasons supporting the denial, and
 7    shall send by United States mail a copy of the written  order
 8    of  denial  to  the applicant at the address set forth in the
 9    application, within 5 days after the filing of such order.  A
10    review  of such decision may be had as provided in Section 20
11    of this Act.
12        The license issued by the  Comptroller  shall  remain  in
13    full force and effect until it is surrendered by the licensee
14    or revoked by the Comptroller as hereinafter provided.
15    (Source: P.A. 88-477.)

16        (760 ILCS 100/11) (from Ch. 21, par. 64.11)
17        Sec.  11.  Issuance  and  display  of license.  A license
18    issued under this Act authorizes the  cemetery  authority  to
19    accept care funds for the cemetery identified in the license.
20    If a license application seeks licensure to accept care funds
21    on   behalf   of   more   than  one  cemetery  location,  the
22    Comptroller, upon approval of the license application,  shall
23    issue  to  the cemetery authority a separate license for each
24    cemetery location indicated on the application. Each  license
25    issued  by  the  Comptroller under this Act is independent of
26    any other license that may be issued to a cemetery  authority
27    under a single license application.
28        Every  license  issued by the Comptroller shall state the
29    number of the license and the address at which  the  business
30    is  to be conducted. Such license shall be kept conspicuously
31    posted in the place of business of the licensee and shall not
32    be transferable or assignable.
33        No more than one place of business  shall  be  maintained
 
                            -42-              LRB9201944LDprA
 1    under  the  same  license, but the Comptroller may issue more
 2    than one license to the same licensee  upon  compliance  with
 3    the  provisions of this Act governing an original issuance of
 4    a license, for each new license.
 5        Whenever a licensee shall wish  to  change  the  name  as
 6    originally  set  forth  in his license, he shall give written
 7    notice thereof to the Comptroller together with  the  reasons
 8    for  the  change  and  if  the  change  is  approved  by  the
 9    Comptroller he shall issue a new license.
10        A  license issued by the Comptroller shall remain in full
11    force and effect until it is surrendered by the  licensee  or
12    suspended  or  revoked by the Comptroller as provided in this
13    Act.
14    (Source: P.A. 78-592.)

15        (760 ILCS 100/11.1)
16        Sec. 11.1.  Investigation of unlawful practices.   If  it
17    appears  to  the Comptroller that a person has engaged in, is
18    engaging in, or is about to engage in any  practice  declared
19    to be unlawful by this Act, the Comptroller may:
20             (1)  require  that  person  to file on such terms as
21        the Comptroller  prescribes  a  statement  or  report  in
22        writing,   under   oath   or  otherwise,  containing  all
23        information the Comptroller  may  consider  necessary  to
24        ascertain whether a privately operated cemetery authority
25        licensee  is  in  compliance with this Act, or whether an
26        unlicensed person is engaging in activities for  which  a
27        license is required;
28             (2)  examine  under  oath  any  person in connection
29        with the books and records pertaining  to  or  having  an
30        impact  upon  the  trust  funds required to be maintained
31        pursuant to this Act;
32             (2.1)  examine under oath any person  in  connection
33        with  the  performance of duties required to be performed
 
                            -43-              LRB9201944LDprA
 1        under this Act;
 2             (3)  examine any books and records of the  privately
 3        operated   cemetery   authority,  licensee,  trustee,  or
 4        investment advisor  that  the  Comptroller  may  consider
 5        necessary to ascertain compliance with this Act; and
 6             (4)  require the production of a copy of any record,
 7        book,  document,  account,  or  paper that is produced in
 8        accordance with this Act and retain  it  in  his  or  her
 9        possession  until  the  completion  of all proceedings in
10        connection with which it is produced.
11    (Source: P.A. 89-615, eff. 8-9-96.)

12        (760 ILCS 100/13) (from Ch. 21, par. 64.13)
13        Sec. 13. Books, accounts, and records.    Every  licensee
14    and  the trustee of the care funds of every licensee shall be
15    a resident of this State and shall keep in this State and use
16    in its business such books,  accounts  and  records  as  will
17    enable  the Comptroller to determine whether such licensee or
18    trustee is complying with the provisions of this Act and with
19    the rules, regulations and directions made by the Comptroller
20    hereunder.  The licensee shall update  books,  accounts,  and
21    records  no less often than monthly.  The licensee shall keep
22    the books, accounts, and records at the  location  identified
23    in  the  license  issued  by  the Comptroller or as otherwise
24    agreed by the Comptroller in writing.  The  books,  accounts,
25    and records shall be accessible for review upon demand of the
26    Comptroller.
27    (Source: P.A. 78-592.)

28        (760 ILCS 100/15b)
29        Sec. 15b.  Sales; liability of purchaser for shortage.
30        In  the case of a sale of any privately operated cemetery
31    or any part thereof or of any related personal property by  a
32    cemetery  authority to a purchaser or pursuant to foreclosure
 
                            -44-              LRB9201944LDprA
 1    proceedings, except the sale of burial rights,  services,  or
 2    merchandise  to  a  person  for his or her personal or family
 3    burial  or  interment,  the  purchaser  is  liable  for   any
 4    shortages existing before or after the sale in the care funds
 5    required to be maintained in a trust pursuant to this Act and
 6    shall  honor  all instruments issued under Section 4 for that
 7    cemetery. Any shortages existing in the care funds constitute
 8    a prior lien in favor of the trust for the total value of the
 9    shortages, and notice of such lien shall be provided  in  all
10    sales instruments.
11        In   the   event   of  a  sale  or  transfer  of  all  or
12    substantially all of the assets of the cemetery authority,  a
13    sale  or transfer of any cemetery land, including any portion
14    of  cemetery  land  in  which  no  human  remains  have  been
15    interred, the sale or transfer of the controlling interest of
16    the corporate stock of the cemetery authority if the cemetery
17    authority is a corporation, or the sale or  transfer  of  the
18    controlling of the partnership if the cemetery authority is a
19    partnership,  the  cemetery authority shall, at least 21 days
20    prior to the sale or transfer,  notify  the  Comptroller,  in
21    writing,  of  the  pending  date of sale or transfer so as to
22    permit the Comptroller to audit the books and records of  the
23    cemetery  authority.  The audit must be commenced within 10 5
24    business  days  of  the  receipt  of  the  notification   and
25    completed  within  the  21 day notification period unless the
26    Comptroller  notifies  the  cemetery  authority  during  that
27    period that there is a basis  for  determining  a  deficiency
28    which  will require additional time to finalize.  The sale or
29    transfer may not  be  completed  by  the  cemetery  authority
30    unless and until:
31             (a)  The  Comptroller has completed the audit of the
32        cemetery authority's books and records;
33             (b)  Any delinquency existing in the care funds  has
34        been  paid  by  the  cemetery  authority, or arrangements
 
                            -45-              LRB9201944LDprA
 1        satisfactory to the Comptroller have  been  made  by  the
 2        cemetery  authority  on  the  sale  or  transfer  for the
 3        payment of any delinquency;
 4             (c)  The Comptroller  issues  a  new  cemetery  care
 5        license   upon   application   of  the  newly  controlled
 6        corporation or partnership, which license must be applied
 7        for within 30 days of the anticipated date of the sale or
 8        transfer, subject to the payment of any delinquencies, if
 9        any, as stated in item (b) above.
10        For  purposes  of   this   Section,   a   person,   firm,
11    corporation,  partnership,  or  institution that acquires the
12    cemetery through a real estate foreclosure shall  be  subject
13    to  the  provisions of this Section.  The sale or transfer of
14    the controlling  interest  of  a  cemetery  authority  to  an
15    immediate  family  member  is  not  subject  to  the  license
16    application process required in item (c) of this Section.
17    (Source: P.A. 90-623, eff. 7-10-98.)

18        (760 ILCS 100/26 new)
19        Sec.  26.  Abandoned  or  neglected cemeteries; clean-up.
20    The Comptroller may administer a program for the  purpose  of
21    cleaning  up  abandoned  or  neglected  cemeteries located in
22    Illinois.  Administration of this  program  may  include  the
23    Comptroller's issuance of grants for that purpose to units of
24    local   government,   school  districts,  and  not-for-profit
25    associations.

26        Section 40. The Cemetery Protection  Act  is  amended  by
27    changing Section 1 as follows:

28        (765 ILCS 835/1) (from Ch. 21, par. 15)
29        Sec.  1.  (a)  Any  person  who acts without proper legal
30    authority and who willfully and knowingly destroys or damages
31    the remains of a deceased human being or who desecrates human
 
                            -46-              LRB9201944LDprA
 1    remains is guilty of a Class 3 felony.
 2        (a-5)  Any person who acts without proper legal authority
 3    and who willfully and knowingly removes any  portion  of  the
 4    remains  of a deceased human being from a burial ground where
 5    skeletal remains are buried or from a  grave,  crypt,  vault,
 6    mausoleum,  or other repository of human remains is guilty of
 7    a Class 4 felony.
 8        (b)  Any person who acts without proper  legal  authority
 9    and who willfully and knowingly:
10             (1)  obliterates, vandalizes, or desecrates a burial
11        ground  where  skeletal  remains  are  buried or a grave,
12        crypt, vault, mausoleum, or  other  repository  of  human
13        remains;
14             (2)  obliterates,  vandalizes,  or desecrates a park
15        or  other  area  clearly  designated  to   preserve   and
16        perpetuate  the  memory  of a deceased person or group of
17        persons;
18             (3)  obliterates, vandalizes, or desecrates  plants,
19        trees,  shrubs,  or  flowers  located  upon  or  around a
20        repository for human remains or within a human  graveyard
21        or cemetery; or
22             (4)  obliterates, vandalizes, or desecrates a fence,
23        rail,  curb,  or  other  structure  of  a  similar nature
24        intended for the protection or for the  ornamentation  of
25        any  tomb,  monument,  gravestone,  or other structure of
26        like character;
27    is guilty of a Class A  misdemeanor  if  the  amount  of  the
28    damage  is  less than $500, a Class 4 felony if the amount of
29    the damage is at least $500 and less than $10,000, a Class  3
30    felony  if  the  amount of the damage is at least $10,000 and
31    less than $100,000, or a Class 2  felony  if  the  damage  is
32    $100,000  or  more  and  shall  provide  restitution  to  the
33    cemetery  authority  or  property owner for the amount of any
34    damage caused.
 
                            -47-              LRB9201944LDprA
 1        (b-5)  Any person who acts without proper legal authority
 2    and who willfully and knowingly defaces, vandalizes, injures,
 3    or removes a  gravestone  or  other  memorial,  monument,  or
 4    marker  commemorating  a deceased person or group of persons,
 5    whether located within or outside of a  recognized  cemetery,
 6    memorial  park,  or battlefield is guilty of a Class 4 felony
 7    for damaging at least one but no more than 4  gravestones,  a
 8    Class  3  felony  for damaging at least 5 but no more than 10
 9    gravestones, or a Class 2 felony for damaging  more  than  10
10    gravestones  and  shall  provide  restitution to the cemetery
11    authority or property owner for  the  amount  of  any  damage
12    caused.
13        (b-7)  Any person who acts without proper legal authority
14    and  who  willfully  and knowingly removes with the intent to
15    resell a gravestone or other memorial,  monument,  or  marker
16    commemorating  a deceased person or group of persons, whether
17    located within or outside  a  recognized  cemetery,  memorial
18    park, or battlefield, is guilty of a Class 2 felony.
19        (c)  The  provisions  of  this Section shall not apply to
20    the removal or unavoidable breakage or injury by  a  cemetery
21    authority  of  anything  placed in or upon any portion of its
22    cemetery in violation of any of the rules and regulations  of
23    the cemetery authority, nor to the removal of anything placed
24    in  the  cemetery  by  or  with  the  consent of the cemetery
25    authority that in the judgment of the cemetery authority  has
26    become wrecked, unsightly, or dilapidated.
27        (d)  If   an  unemancipated  minor  is  found  guilty  of
28    violating any of the provisions of  subsection  (b)  of  this
29    Section  and is unable to provide restitution to the cemetery
30    authority or property owner, the parents or  legal  guardians
31    of  that  minor  shall  provide  restitution  to the cemetery
32    authority or property owner for  the  amount  of  any  damage
33    caused,  up  to  the  total amount allowed under the Parental
34    Responsibility Law.
 
                            -48-              LRB9201944LDprA
 1        (e)  Any person who shall hunt, shoot  or  discharge  any
 2    gun,  pistol  or  other  missile,  within  the  limits of any
 3    cemetery, or shall cause any shot or missile to be discharged
 4    into or over any portion thereof, or shall violate any of the
 5    rules made and established by the board of directors of  such
 6    cemetery, for the protection or government thereof, is guilty
 7    of a Class C misdemeanor.
 8        (f)  Any person who knowingly enters or knowingly remains
 9    upon  the  premises  of  a public or private cemetery without
10    authorization during hours that the  cemetery  is  posted  as
11    closed to the public is guilty of a Class A misdemeanor.
12        (g)  All  fines when recovered, shall be paid over by the
13    court  or  officer  receiving  the  same  to   the   cemetery
14    association  and  be applied, as far as possible in repairing
15    the injury,  if  any,  caused  by  such  offense.   Provided,
16    nothing  contained  in  this  Act shall deprive such cemetery
17    association, or  the  owner  of  any  lot  or  monument  from
18    maintaining  an  action for the recovery of damages caused by
19    any injury caused by a violation of the  provisions  of  this
20    Act, or of the rules established by the board of directors of
21    such  cemetery  association. Nothing in this Section shall be
22    construed to prohibit the discharge of firearms  loaded  with
23    blank  ammunition  as  part  of  any  funeral,  any  memorial
24    observance or any other patriotic or military ceremony.
25    (Source: P.A. 89-36, eff. 1-1-96.)

26        Section  45.  The Illinois Pre-Need Cemetery Sales Act is
27    amended by changing Sections 1, 4, 5, 6, 7, 8, 8a, 9, 12, 14,
28    16, 19, 20, and 22 and adding Section 27.1 as follows:

29        (815 ILCS 390/1) (from Ch. 21, par. 201)
30        Sec. 1.  Purpose.  It is  the  purpose  of  this  Act  to
31    assure  adequate  protection  for  those who contract through
32    pre-need contracts  for  the  purchase  of  certain  cemetery
 
                            -49-              LRB9201944LDprA
 1    merchandise  and cemetery services and undeveloped interment,
 2    entombment or inurnment space,  when  the  seller  may  delay
 3    delivery  or performance more than 120 days following initial
 4    payment on the account.
 5    (Source: P.A. 85-805.)

 6        (815 ILCS 390/4) (from Ch. 21, par. 204)
 7        Sec. 4.  Definitions.  As used in this Act, the following
 8    terms shall have the meaning specified:
 9        (A) A.  "Pre-need sales  contract"  or  "Pre-need  sales"
10    means  any  agreement or contract or series or combination of
11    agreements or contracts which have for a purpose the sale  of
12    cemetery   merchandise,   cemetery  services  or  undeveloped
13    interment, entombment or inurnment spaces where the terms  of
14    such  sale  require  payment  or  payments  to  be  made at a
15    currently  determinable  time  and  where  the   merchandise,
16    services or completed spaces are to be provided more than 120
17    days following the initial payment on the account.
18        (B) B.  "Delivery" occurs when:
19             (1)  Physical   possession  of  the  merchandise  is
20        transferred or  the  easement  for  burial  rights  in  a
21        completed space is executed, delivered and transferred to
22        the buyer; or
23             (2)  Following  authorization by a purchaser under a
24        pre-need sales contract, title  to  the  merchandise  has
25        been  transferred  to  the  buyer and the merchandise has
26        been paid for and is in the possession of the seller  who
27        has  placed it, until needed, at the site of its ultimate
28        use; except that burial of any item at the  site  of  its
29        ultimate  use  shall not constitute delivery for purposes
30        of this Act; or
31             (3)  (A)  Following  authorization  by  a  purchaser
32        under a pre-need sales contract, the merchandise has been
33        permanently identified with the name of the buyer or  the
 
                            -50-              LRB9201944LDprA
 1        beneficiary  and  delivered  to  a  licensed  and  bonded
 2        warehouse  and  both  title  to  the  merchandise  and  a
 3        warehouse receipt have been delivered to the purchaser or
 4        beneficiary  and a copy of the warehouse receipt has been
 5        delivered to the licensee for  retention  in  its  files;
 6        except  that  in the case of outer burial containers, the
 7        use of a licensed and bonded warehouse as  set  forth  in
 8        this paragraph shall not constitute delivery for purposes
 9        of  this Act.  Nothing herein shall prevent a seller from
10        perfecting a security interest  in  accordance  with  the
11        Uniform  Commercial Code on any merchandise covered under
12        this Act.
13             (B)  All  warehouse  facilities  to  which   sellers
14        deliver merchandise pursuant to this Act shall:
15                  (i)  be either located in the State of Illinois
16             or  qualify  as  a  foreign  warehouse  facility  as
17             defined herein;
18                  (ii)  submit  to  the Comptroller not less than
19             annually, by March 1 of each year, a report  of  all
20             cemetery  merchandise  stored by each licensee under
21             this Act which is in storage  on  the  date  of  the
22             report;
23                  (iii)  permit  the  Comptroller or his designee
24             at any time to examine  stored  merchandise  and  to
25             examine any documents pertaining thereto;
26                  (iv)  submit   evidence   satisfactory  to  the
27             Comptroller that  all  merchandise  stored  by  said
28             warehouse  for  licensees  under this Act is insured
29             for casualty or other loss  normally  assumed  by  a
30             bailee for hire;
31                  (v)  demonstrate  to  the  Comptroller that the
32             warehouse  has  procured  and   is   maintaining   a
33             performance  bond  in  the  form, content and amount
34             sufficient  to  unconditionally  guarantee  to   the
 
                            -51-              LRB9201944LDprA
 1             purchaser  or beneficiary the prompt shipment of the
 2             cemetery merchandise.
 3        (C)  "Cemetery  merchandise"  means  items  of   personal
 4    property  normally  sold  by a cemetery authority not covered
 5    under the Illinois Funeral or Burial Funds Act, including but
 6    not limited to:
 7             (1)  memorials,
 8             (2)  markers,
 9             (3)  monuments,
10             (4)  foundations, and
11             (5)  outer burial containers.
12        (D)  "Undeveloped  interment,  entombment  or   inurnment
13    spaces"  or  "undeveloped  spaces" means any space to be used
14    for the reception of human remains that is not completely and
15    totally constructed at the time of initial  payment  therefor
16    in a:
17             (1)  lawn crypt,
18             (2)  mausoleum,
19             (3)  garden crypt,
20             (4)  columbarium, or
21             (5)  cemetery section.
22        (E)  "Cemetery services" means those services customarily
23    performed  by  cemetery  or crematory personnel in connection
24    with the interment, entombment, inurnment or cremation  of  a
25    dead human body.
26        (F)  "Cemetery   section"  means  a  grouping  of  spaces
27    intended to be developed simultaneously for  the  purpose  of
28    interring human remains.
29        (G)  "Columbarium"  means  an  arrangement of niches that
30    may be an entire building,  a  complete  room,  a  series  of
31    special indoor alcoves, a bank along a corridor or part of an
32    outdoor  garden  setting  that  is  constructed  of permanent
33    material such as bronze, marble, brick, stone or concrete for
34    the inurnment of human remains.
 
                            -52-              LRB9201944LDprA
 1        (H)  "Lawn crypt" means  a  permanent  underground  crypt
 2    usually   constructed   of  reinforced  concrete  or  similar
 3    material installed in multiple units  for  the  interment  of
 4    human remains.
 5        (I)  "Mausoleum"  or  "garden  crypt" means a grouping of
 6    spaces constructed of reinforced concrete or similar material
 7    constructed or assembled above the ground for entombing human
 8    remains.
 9        (J)  "Memorials, markers and monuments" means the  object
10    usually  comprised of a permanent material such as granite or
11    bronze used to identify and memorialize the deceased.
12        (K)  "Foundations" means those items  used  to  affix  or
13    support  a  memorial  or monument to the ground in connection
14    with the installation of a memorial, marker or monument.
15        (L)  "Person"   means   an    individual,    corporation,
16    partnership,   joint   venture,   business  trust,  voluntary
17    organization or any other form of entity.
18        (M)  "Seller" means any person selling  or  offering  for
19    sale  cemetery  merchandise, cemetery services or undeveloped
20    interment, entombment, or inurnment spaces in accordance with
21    a pre-need sales contract on a pre-need basis.
22        (N)  "Religious  cemetery"  means   a   cemetery   owned,
23    operated,  controlled  or  managed  by any recognized church,
24    religious society, association  or  denomination  or  by  any
25    cemetery  authority  or  any  corporation  administering,  or
26    through  which  is  administered,  the  temporalities  of any
27    recognized  church,   religious   society,   association   or
28    denomination.
29        (O)  "Municipal   cemetery"   means   a  cemetery  owned,
30    operated,  controlled  or  managed  by  any  city,   village,
31    incorporated   town,  township,  county  or  other  municipal
32    corporation,  political   subdivision,   or   instrumentality
33    thereof  authorized  by  law  to  own,  operate  or  manage a
34    cemetery.
 
                            -53-              LRB9201944LDprA
 1        (O-1)  "Outer burial container" means a container made of
 2    concrete, steel, wood, fiberglass, or similar material,  used
 3    solely   at   the  interment  site,  and  designed  and  used
 4    exclusively to surround or enclose a separate casket  and  to
 5    support  the  earth  above  such  casket, commonly known as a
 6    burial vault, grave box, or grave liner, but not including  a
 7    lawn crypt.
 8        (P)  "Sales  price"  means  the  gross  amount  paid by a
 9    purchaser  on  a  pre-need  sales   contract   for   cemetery
10    merchandise,  cemetery  services  or  undeveloped  interment,
11    entombment or inurnment spaces, excluding sales taxes, credit
12    life  insurance  premiums,  finance charges and Cemetery Care
13    Act contributions.
14        (Q)  (Blank).
15        (R) "Provider" means a  person  who  is  responsible  for
16    performing   cemetery   services   or   furnishing   cemetery
17    merchandise,   interment   spaces,   entombment   spaces,  or
18    inurnment spaces under a pre-need sales contract.
19        (S)  "Purchaser"  or  "buyer"  means   the   person   who
20    originally  paid  the  money  under  or  in connection with a
21    pre-need sales contract.
22        (T) "Parent company"  means  a  corporation  that  has  a
23    controlling interest in another corporation.
24        (U)  "Foreign   warehouse  facility"  means  a  warehouse
25    facility now or hereafter located in any state  or  territory
26    of  the  United  States,  including the District of Columbia,
27    other than the State of Illinois.
28        A foreign warehouse facility  shall  be  deemed  to  have
29    appointed  the Comptroller to be its true and lawful attorney
30    upon whom may be served all legal process in  any  action  or
31    proceeding against it relating to or growing out of this Act,
32    and  the  acceptance  of  the  delivery of stored merchandise
33    under this Act shall be signification of its  agreement  that
34    any  such  process against it which is so served, shall be of
 
                            -54-              LRB9201944LDprA
 1    the same legal force and validity as though  served  upon  it
 2    personally.
 3        Service  of  such  process shall be made by delivering to
 4    and leaving with the Comptroller, or any agent having  charge
 5    of  the  Comptroller's  Department  of  Cemetery  and  Burial
 6    Trusts,  a  copy  of  such  process and such service shall be
 7    sufficient service upon such foreign  warehouse  facility  if
 8    notice  of such service and a copy of the process are, within
 9    10 days thereafter, sent by registered mail by the  plaintiff
10    to the foreign warehouse facility at its principal office and
11    the  plaintiff's affidavit of compliance herewith is appended
12    to the summons.  The Comptroller shall keep a record  of  all
13    process  served  upon him under this Section and shall record
14    therein the time of such service.
15    (Source: P.A. 91-7,  eff.  1-1-2000;  91-357,  eff.  7-29-99;
16    revised 8-30-99.)

17        (815 ILCS 390/5) (from Ch. 21, par. 205)
18        Sec. 5.  It is unlawful for any seller person directly or
19    indirectly doing business within this State, through an agent
20    or  otherwise  to  engage in pre-need sales without a license
21    issued by the Comptroller.
22    (Source: P.A. 84-239.)

23        (815 ILCS 390/6) (from Ch. 21, par. 206)
24        Sec. 6.  License application.
25        (a)  An application  for  a  license  shall  be  made  in
26    writing to the Comptroller on forms prescribed by him or her,
27    signed  by  the  applicant  under  oath  verified by a notary
28    public appointed and commissioned under the  Illinois  Notary
29    Public  Act, and shall be accompanied by a non-returnable $25
30    application fee.  The Comptroller may  prescribe  abbreviated
31    application  forms  for  persons  holding a license under the
32    Cemetery  Care   Act.    Applications   (except   abbreviated
 
                            -55-              LRB9201944LDprA
 1    applications)   must   include   at   least   the   following
 2    information:
 3             (1)  The  full  name and address, both residence and
 4        business,  of  the  applicant  if  the  applicant  is  an
 5        individual;  of  every   member   if   applicant   is   a
 6        partnership; of every member of the Board of Directors if
 7        applicant  is  an  association;  and  of  every  officer,
 8        director  and shareholder holding more than 10% 5% of the
 9        corporate stock if applicant is a corporation;
10             (2)  A detailed statement of applicant's assets  and
11        liabilities;
12             (2.1)  The  name  and  address  of  the  applicant's
13        principal place of business at which the books, accounts,
14        and   records   are  available  for  examination  by  the
15        Comptroller as required by this Act;
16             (2.2)  The  name  and  address  of  the  applicant's
17        branch  locations  at  which  pre-need  sales   will   be
18        conducted  and  which will operate under the same license
19        number as the applicant's principal place of business;
20             (3)  For each individual listed under (1)  above,  a
21        detailed   statement   of   the   individual's   business
22        experience  for  the  10  years immediately preceding the
23        application; any present or prior connection between  the
24        individual  and  any  other  person  engaged  in pre-need
25        sales; any felony or misdemeanor  convictions  for  which
26        fraud was an essential element; any charges or complaints
27        lodged  against  the  individual  for  which fraud was an
28        essential element and which resulted in civil or criminal
29        litigation; any failure of the individual to  satisfy  an
30        enforceable  judgment  entered  against  him or her based
31        upon fraud; and any other information  requested  by  the
32        Comptroller  relating  to  the past business practices of
33        the individual.  Since the information required  by  this
34        paragraph  may  be  confidential  or  contain proprietary
 
                            -56-              LRB9201944LDprA
 1        information, this information shall not be  available  to
 2        other  licensees  or the general public and shall be used
 3        only for  the  lawful  purposes  of  the  Comptroller  in
 4        enforcing this Act;
 5             (4)  The name of the trustee and, if applicable, the
 6        names of the advisors to the trustee, including a copy of
 7        the  proposed trust agreement under which the trust funds
 8        are to be held as required by this Act;
 9             (5)  Where applicable, the  name  of  the  corporate
10        surety  company  providing  the  performance bond for the
11        construction of undeveloped spaces  and  a  copy  of  the
12        bond; and
13             (6)  Such  other  information as the Comptroller may
14        reasonably   require   in   order   to   determine    the
15        qualification  of the applicant to be licensed under this
16        Act.
17        (b)  Applications for license shall be accompanied  by  a
18    fidelity  bond  executed  by  the  applicant  and  a security
19    company authorized to do  business  in  this  State  in  such
20    amount,   not  exceeding  $10,000,  as  the  Comptroller  may
21    require.  The Comptroller may require  additional  bond  from
22    time  to  time  in  amounts  equal to one-tenth of such trust
23    funds but not to exceed $100,000, which bond shall run to the
24    Comptroller for the use and benefit of the  beneficiaries  of
25    such trust funds.  Such licensee may by written permit of the
26    Comptroller be authorized to operate without additional bond,
27    except   such  fidelity  bond  as  may  be  required  by  the
28    Comptroller for the protection of the licensee  against  loss
29    by default by any of its employees engaged in the handling of
30    trust funds.
31        (c)  Any application not acted upon within 90 days may be
32    deemed denied.
33    (Source: P.A. 88-477.)
 
                            -57-              LRB9201944LDprA
 1        (815 ILCS 390/7) (from Ch. 21, par. 207)
 2        Sec.  7.   The  Comptroller  may  refuse  to issue or may
 3    suspend or revoke a license on any of the following grounds:
 4        (a)  The   applicant   or   licensee   has    made    any
 5    misrepresentations  or  false  statements  or  concealed  any
 6    material fact;
 7        (b)  The applicant or licensee is insolvent;
 8        (c)  The  applicant  or  licensee  has  been  engaged  in
 9    business practices that work a fraud;
10        (d)  The  applicant  or  licensee  has  refused  to  give
11    pertinent data to the Comptroller;
12        (e)  The  applicant or licensee has failed to satisfy any
13    enforceable judgment or  decree  rendered  by  any  court  of
14    competent jurisdiction against the applicant;
15        (f)  The  applicant or licensee has conducted or is about
16    to conduct business in a fraudulent manner;
17        (g)  The trustee advisors or the trust agreement  is  not
18    satisfactory to the Comptroller;
19        (h)  The    pre-construction    performance    bond,   if
20    applicable, is not satisfactory to the Comptroller;
21        (i)  The  fidelity  bond  is  not  satisfactory  to   the
22    Comptroller;
23        (j)  As  to  any  individual listed, that such individual
24    has conducted or is about to conduct any business  on  behalf
25    of  the applicant in a fraudulent manner,; has been convicted
26    of any felony or misdemeanor an essential element of which is
27    fraud, has had a judgment rendered against him or  her  based
28    on  fraud  in  any civil litigation, or has failed to satisfy
29    any enforceable judgment or decree rendered  against  him  by
30    any court of competent jurisdiction, or has been convicted of
31    any felony or any theft-related offense;
32        (k)  The  applicant  or  licensee  has failed to make the
33    annual report required by this Act or to comply with a  final
34    order,  decision, or finding of the Comptroller made pursuant
 
                            -58-              LRB9201944LDprA
 1    to this Act;
 2        (l)  The applicant or  licensee,  including  any  member,
 3    officer,  or director thereof if the applicant or licensee is
 4    a firm, partnership,  association,  or  corporation  and  any
 5    shareholder holding more than 10% of the corporate stock, has
 6    violated any provision of this Act or any regulation or order
 7    made by the Comptroller under this Act; or
 8        (m)  The Comptroller finds any fact or condition existing
 9    which,  if  it  had  existed  at  the  time  of  the original
10    application  for  such  license  would  have  warranted   the
11    Comptroller in refusing the issuance of the license.
12    (Source: P.A. 85-842.)

13        (815 ILCS 390/8) (from Ch. 21, par. 208)
14        Sec.  8.  (a)  Every  license  issued  by the Comptroller
15    shall state the number of the license, the business name  and
16    address  of  the licensee's principal place of business, each
17    branch location also operating under  the  license,  and  the
18    licensee's  parent  company,  if  any.  licensee at which the
19    business is to  be  conducted,  and   The  license  shall  be
20    conspicuously  posted in each the place of business operating
21    under the license.  No more than one place of business  shall
22    be  maintained  under  the same license, but  The Comptroller
23    may issue additional licenses as may be necessary for license
24    branch locations more than one license  to  a  licensee  upon
25    compliance  with  the  provisions  of  this  Act governing an
26    original issuance of a license for each new license.
27        (b)  Individual salespersons representing employed  by  a
28    licensee  shall  not  be required to obtain licenses in their
29    individual capacities but  must  acknowledge,  by  affidavit,
30    that  they  have  been educated in the provisions of this Act
31    and must understand the penalties for failure to comply.  The
32    licensee  must  retain  copies  of  the  affidavits  of   its
33    salespersons  for  its  records  and must make the affidavits
 
                            -59-              LRB9201944LDprA
 1    available to the Comptroller for examination upon request.
 2        (c)  The licensee shall be responsible for the activities
 3    of  any  person  representing  the  licensee  in  selling  or
 4    offering a pre-need contract  for  sale  all  individuals  or
 5    sales organizations selling under contract with, as agents or
 6    on behalf of the licensee.
 7        (d)  Any  sales  company  or  other person not selling on
 8    behalf of a licensee shall be required to obtain his  or  her
 9    its own license.
10        (e)  Any  person  engaged  in  pre-need sales, as defined
11    herein, prior to the effective date of this Act may  continue
12    operations  until  the application for license under this Act
13    is denied; provided that such person shall  make  application
14    for  a  license  within  60 days of the date that application
15    forms are made available by the Comptroller.
16        (f)  No  license  shall  be  transferable  or  assignable
17    without the express written consent of  the  Comptroller.   A
18    transfer  of  more  than 50% of the ownership of any business
19    licensed  hereunder  shall  be  deemed  to  be  an  attempted
20    assignment of the license originally issued to  the  licensee
21    for which consent of the Comptroller shall be required.
22        (g)  Every license issued hereunder shall remain in force
23    until  the same has been suspended, surrendered or revoked in
24    accordance with this  Act,  but  the  Comptroller,  upon  the
25    request  of  an  interested  person or on his own motion, may
26    issue new licenses to a licensee whose  license  or  licenses
27    have  been  revoked,  if  no  factor or condition then exists
28    which  would  have  warranted  the  Comptroller  in  refusing
29    originally the issuance of such license.
30    (Source: P.A. 84-239.)

31        (815 ILCS 390/8a)
32        Sec. 8a.  Investigation of  unlawful  practices.   If  it
33    appears  to  the Comptroller that a person has engaged in, is
 
                            -60-              LRB9201944LDprA
 1    engaging in, or  is  about  to  engage  in  any  practice  in
 2    violation  of  declared  to  be  unlawful  by  this  Act, the
 3    Comptroller may:
 4             (1)  require that person to file on  such  terms  as
 5        the  Comptroller  prescribes  a  statement  or  report in
 6        writing,  under  oath  or   otherwise,   containing   all
 7        information  the  Comptroller  may  consider necessary to
 8        ascertain whether a licensee is in compliance  with  this
 9        Act,  or  whether  an  unlicensed  person  is engaging in
10        activities for which a license is required;
11             (2)  examine under oath  any  person  in  connection
12        with  the  books  and  records pertaining to or having an
13        impact upon the trust funds  required  to  be  maintained
14        pursuant to this Act;
15             (3)  examine  any books and records of the licensee,
16        trustee, or investment advisor that the  Comptroller  may
17        consider necessary to ascertain compliance with this Act;
18        and
19             (4)  require the production of a copy of any record,
20        book,  document,  account,  or  paper that is produced in
21        accordance with this Act and retain  it  in  his  or  her
22        possession  until  the  completion  of all proceedings in
23        connection with which it is produced.
24    (Source: P.A. 89-615, eff. 8-9-96.)

25        (815 ILCS 390/9) (from Ch. 21, par. 209)
26        Sec.  9.   The  Comptroller  may,  upon  his  own  motion
27    investigate the actions of any person providing, selling,  or
28    offering  pre-need sales contracts or of any applicant or any
29    person or persons holding or claiming to hold a license under
30    this Act.  The Comptroller shall make such  an  investigation
31    on  receipt  of  the verified written complaint of any person
32    setting  forth  facts  which,  if  proved,  would  constitute
33    grounds for refusal, suspension, or revocation of  a  license
 
                            -61-              LRB9201944LDprA
 1    with  respect  to  which  grounds for revocation may occur or
 2    exist, or if he shall find that such grounds  for  revocation
 3    are of general application to all offices or to more than one
 4    office  operated  by  such licensee, he may revoke all of the
 5    licenses issued to such licensee or such number of  licensees
 6    to  which grounds apply, as the case may be.  Before refusing
 7    to issue, and before suspension or revocation of  a  license,
 8    the Comptroller shall hold a hearing to determine whether the
 9    applicant  or  licensee,  hereafter called the respondent, is
10    entitled to hold such a license.  At least 10 days  prior  to
11    the  date  set for such hearing, the Comptroller shall notify
12    the respondent in writing  that  on  the  date  designated  a
13    hearing  will  be  held  to  determine  his eligibility for a
14    license and that he may  appear  in  person  or  by  counsel.
15    Such   written   notice  may  be  served  on  the  respondent
16    personally, or by registered or certified mail  sent  to  the
17    respondent's   business   address  as  shown  in  his  latest
18    notification to the Comptroller and shall include  sufficient
19    information to inform the respondent of the general nature of
20    the  charge.   At  the  hearing,  both the respondent and the
21    complainant shall be accorded ample opportunity to present in
22    person or by counsel such statements, testimony, evidence and
23    argument as may be pertinent to the charges or to any defense
24    thereto.   The  Comptroller  may  reasonably  continue   such
25    hearing from time to time.
26        The  Comptroller  may  subpoena  any person or persons in
27    this State and take testimony orally,  by  deposition  or  by
28    exhibit,  in  the  same  manner  and  with  the same fees and
29    mileage as prescribed in judicial proceedings in civil cases.
30        Any authorized agent of the  Comptroller  may  administer
31    oaths  to  witnesses  at any hearing which the Comptroller is
32    authorized to conduct.
33        The  Comptroller,  at  his  expense,  shall   provide   a
34    certified  shorthand  reporter to take down the testimony and
 
                            -62-              LRB9201944LDprA
 1    preserve a record of all proceedings at the  hearing  of  any
 2    case involving the refusal to issue a license, the suspension
 3    or  revocation  of  a  license,  the imposition of a monetary
 4    penalty, or the referral of a case for criminal  prosecution.
 5    The record of any such proceeding shall consist of the notice
 6    of  hearing,  complaint, all other documents in the nature of
 7    pleadings and written motions filed in the  proceedings,  the
 8    transcript  of  testimony  and  the  report and orders of the
 9    Comptroller.  Copies of the transcript of such record may  be
10    purchased  from the certified shorthand reporter who prepared
11    the record or from the Comptroller.
12    (Source: P.A. 84-239.)

13        (815 ILCS 390/12) (from Ch. 21, par. 212)
14        Sec. 12.  License revocation or suspension.
15        (a)  The Comptroller may, upon determination that grounds
16    exist for the revocation or suspension of  a  license  issued
17    under  this  Act,  revoke  or suspend the license issued to a
18    particular branch office location with respect to  which  the
19    grounds for revocation or suspension may occur or exist.
20        (b)  Upon  the  revocation  or suspension of any license,
21    the licensee  shall  immediately  surrender  the  license  or
22    licenses  and  any branch office licenses to the Comptroller.
23    If the licensee fails to do so, the Comptroller has the right
24    to seize the license or licenses same.
25    (Source: P.A. 84-239.)

26        (815 ILCS 390/14) (from Ch. 21, par. 214)
27        Sec. 14.  Contract required.
28        (a)  It is unlawful for any person seller doing  business
29    within  this  State to accept sales proceeds, either directly
30    or indirectly, by any means, unless the seller enters into  a
31    pre-need  sales  contract  with the purchaser which meets the
32    following requirements:
 
                            -63-              LRB9201944LDprA
 1             (1)  A written sales contract shall be  executed  in
 2        at  least  12  point  type in duplicate for each pre-need
 3        sale made by a licensee, and a signed copy given  to  the
 4        purchaser.  Each completed contract shall be numbered and
 5        shall contain: (i) the name and address of the purchaser,
 6        the principal office of  the  licensee,  and  the  parent
 7        company  of  the licensee;  (ii) and the seller, the name
 8        of the person, if known, who is to receive  the  cemetery
 9        merchandise,   cemetery   services   or   the   completed
10        interment,  entombment  or  inurnment  spaces  under  the
11        contract;    and   (iii)   specific   identification   of
12        specifically  identify  such  merchandise,  services   or
13        spaces  to  be provided and the price of the merchandise,
14        services, or space or spaces.
15             (2)  In addition,  such  contracts  must  contain  a
16        provision in distinguishing typeface as follows:
17             "Notwithstanding  anything  in  this contract to the
18        contrary, you are afforded  certain  specific  rights  of
19        cancellation  and  refund under Sections 18 and 19 of the
20        Illinois Pre-Need Cemetery Sales Act, enacted by the 84th
21        General Assembly of the State of Illinois".
22             (3)  All pre-need sales contracts shall be sold on a
23        guaranteed price basis. At the time of performance of the
24        service or delivery of the merchandise, the seller  shall
25        be  prohibited  from assessing the purchaser or his heirs
26        or  assigns  or  duly   authorized   representative   any
27        additional  charges  for  the  specific  merchandise  and
28        services listed on the pre-need sales contract.
29             (4)  Each  contract  shall clearly disclose that the
30        price of the merchandise or services  is  guaranteed  and
31        shall  contain  the  following statement in 12 point bold
32        type:
33             "THIS  CONTRACT  GUARANTEES  THE   BENEFICIARY   THE
34        SPECIFIC   GOODS,   AND   SERVICES,   INTERMENT   SPACES,
 
                            -64-              LRB9201944LDprA
 1        ENTOMBMENT  SPACES,  AND INURNMENT SPACES CONTRACTED FOR.
 2        NO ADDITIONAL CHARGES MAY  BE  REQUIRED.  FOR  DESIGNATED
 3        GOODS,  AND SERVICES, AND SPACES.  ADDITIONAL CHARGES MAY
 4        BE INCURRED FOR UNEXPECTED EXPENSES."
 5             (5)  The pre-need sales contract shall provide  that
 6        if    the    particular   cemetery   services,   cemetery
 7        merchandise, or spaces specified in the pre-need contract
 8        are unavailable at the time of delivery, the seller shall
 9        be required to furnish services, merchandise, and  spaces
10        similar  in  style  and  at  least  equal  in  quality of
11        material and workmanship.
12             (6)  The pre-need contract shall also  disclose  any
13        specific  penalties  to be incurred by the purchaser as a
14        result of failure to make payments; and penalties  to  be
15        incurred  or moneys or refunds to be received as a result
16        of cancellation of the contract.
17             (7)  The pre-need contract shall disclose the nature
18        of the relationship between the provider and the seller.
19             (8)  Each  pre-need  contract  that  authorizes  the
20        delivery of cemetery merchandise to a licensed and bonded
21        warehouse shall provide that prior to or upon delivery of
22        the merchandise to  the  warehouse  (i)  the  merchandise
23        shall  be  permanently  identified  with  the name of the
24        buyer; and (ii)  the  title  to  the  merchandise  and  a
25        warehouse  receipt shall be delivered to the purchaser or
26        beneficiary.  The pre-need  contract  shall  contain  the
27        following statement in 12 point bold type:
28        "THIS  CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO
29        A LICENSED  AND  BONDED  WAREHOUSE  FOR  STORAGE  OF  THE
30        MERCHANDISE  UNTIL  THE  MERCHANDISE  IS  NEEDED  BY  THE
31        BENEFICIARY.  DELIVERY  OF THE MERCHANDISE IN THIS MANNER
32        MAY  PRECLUDE  REFUND   OF   SALE   PROCEEDS   THAT   ARE
33        ATTRIBUTABLE TO THE DELIVERED MERCHANDISE."
34             The  purchaser  shall  initial  the statement at the
 
                            -65-              LRB9201944LDprA
 1        time of entry into the pre-need contract.
 2             (9)  Each  pre-need  contract  that  authorizes  the
 3        placement of cemetery merchandise  at  the  site  of  its
 4        ultimate  use  prior  to the time that the merchandise is
 5        needed by the beneficiary  shall  contain  the  following
 6        statement in 12 point bold type:
 7        "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE AT
 8        THE  SITE  OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
 9        MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
10        MERCHANDISE IN THIS MANNER MAY PRECLUDE  REFUND  OF  SALE
11        PROCEEDS   THAT   ARE   ATTRIBUTABLE   TO  THE  DELIVERED
12        MERCHANDISE."
13             The purchaser shall initial  the  statement  at  the
14        time of entry into the pre-need contract.
15        (b)  Every  pre-need  sales contract must be in writing.,
16    and no pre-need sales contract form may be used unless it has
17    previously been filed with the Comptroller.  The  Comptroller
18    shall  review  all  pre-need  sales  contract forms and, upon
19    written notification to the seller, shall prohibit the use of
20    contract forms that do not meet the requirements of this Act.
21    Any use or attempted use of any oral pre-need sales  contract
22    or  any  written  pre-need sales contract in a form not filed
23    with the Comptroller or in a form  that  does  not  meet  the
24    requirements  of this Act shall be deemed a violation of this
25    Act and is voidable by the  purchaser  without  penalty.  The
26    Comptroller  may  by  rule  develop  a  model  pre-need sales
27    contract form that meets the requirements of this Act.
28        (c)  To the extent the Rule is applicable, every pre-need
29    sales contract is subject to  the  Federal  Trade  Commission
30    Rule concerning the Cooling-Off Period for Door-to-Door Sales
31    (16 CFR Part 429).
32        (d)  No  pre-need  sales  contract may be entered into in
33    this State unless  there  is  a  provider  for  the  cemetery
34    merchandise,  cemetery  services,  and undeveloped interment,
 
                            -66-              LRB9201944LDprA
 1    inurnment, and entombment spaces being sold.  If  the  seller
 2    is  not  the  provider,  then  the seller must have a binding
 3    agreement with a provider, and the identity of  the  provider
 4    and  the  nature  of the agreement between the seller and the
 5    provider must be disclosed in the pre-need sales contract  at
 6    the time of sale and before the receipt of any sale proceeds.
 7    The  failure  to  disclose  the identity of the provider, the
 8    nature of the agreement between the seller and the  provider,
 9    or  any  changes thereto to the purchaser and beneficiary, or
10    the failure to make the disclosures required by this  Section
11    constitutes an intentional violation of this Act.
12        (e)  No  pre-need  contract  may  be entered into in this
13    State  unless  it  is  accompanied  by  a  funding  mechanism
14    permitted under this Act and unless the seller is licensed by
15    the Comptroller as provided in this Act. Nothing in this  Act
16    is  intended  to  relieve  providers  or  sellers of pre-need
17    contracts from being licensed under any  other  Act  required
18    for their profession or business or from being subject to the
19    rules  promulgated  to regulate their profession or business,
20    including rules on solicitation and advertisement.
21        (f)  No pre-need contract may be  entered  into  in  this
22    State  unless  the seller explains to the purchaser the terms
23    of the pre-need contract prior to the purchaser's signing.
24        (g)  The State Comptroller shall develop  a  booklet  for
25    consumers in plain English describing the scope, application,
26    and  consumer  protections  of this Act. After the booklet is
27    developed, no pre-need contract may be  sold  in  this  State
28    unless  the  seller distributes to the purchaser prior to the
29    sale a booklet developed or approved for  use  by  the  State
30    Comptroller.
31    (Source: P.A. 91-7, eff. 1-1-2000.)

32        (815 ILCS 390/16) (from Ch. 21, par. 216)
33        Sec. 16.  Trust funds; disbursements.
 
                            -67-              LRB9201944LDprA
 1        (a)  A trustee shall make no disbursements from the trust
 2    fund except as provided in this Act.
 3        (b)  A  trustee  shall, with respect to the investment of
 4    such trust funds, exercise the judgment and  care  under  the
 5    circumstances  then  prevailing  which  persons  of prudence,
 6    discretion and intelligence exercise  in  the  management  of
 7    their  own  affairs,  not  in  regard  to speculation, but in
 8    regard  to  the  permanent  disposition   of   their   funds,
 9    considering  the  probable  income  as  well  as the probable
10    safety of their capital.
11        The seller shall act as trustee of all  amounts  received
12    for  cemetery  merchandise,  services,  or undeveloped spaces
13    until those amounts have been deposited into the trust  fund.
14    The  seller  may continue to be the trustee of up to $500,000
15    that has been deposited into the trust fund, but  the  seller
16    must  retain  an  independent trustee for any amount of trust
17    funds in excess of $500,000.  A seller holding trust funds in
18    excess of $500,000 on the effective date of  this  amendatory
19    Act  of  1996  shall  have 36 months to retain an independent
20    trustee for the amounts over $500,000; any other seller  must
21    retain  an  independent trustee for its trust funds in excess
22    of $500,000 as soon as may be  practical.    The  Comptroller
23    shall  have the right to disqualify the trustee upon the same
24    grounds as for  refusing  to  grant  or  revoking  a  license
25    hereunder.   Upon  notice  to the Comptroller, the seller may
26    change the trustee of the trust fund.
27        (c)  The  trustee  may  rely  upon   certifications   and
28    affidavits  made  to it under the provisions of this Act, and
29    shall not be liable to any person for such reliance.
30        (d)  A trustee shall be  allowed  to  withdraw  from  the
31    trust  funds maintained pursuant to this Act, payable  solely
32    from the income earned on such trust funds, a reasonable  fee
33    for all usual and customary services for the operation of the
34    trust  fund,  including,  but  not  limited  to trustee fees,
 
                            -68-              LRB9201944LDprA
 1    investment advisor fees, allocation fees, annual  audit  fees
 2    and  other  similar  fees.  The  maximum amount allowed to be
 3    withdrawn for these fees each year shall be the lesser of  3%
 4    of  the balance of the trust calculated on an annual basis or
 5    the amount of annual income generated therefrom.
 6        (e)  The trust shall be a single-purpose trust fund.   In
 7    the   event   of   the  seller's  bankruptcy,  insolvency  or
 8    assignment for  the  benefit  of  creditors,  or  an  adverse
 9    judgment,  the  trust  funds  shall  not  be available to any
10    creditor as assets of the seller or to pay  any  expenses  of
11    any   bankruptcy   or   similar   proceeding,  but  shall  be
12    distributed to the purchasers or managed for their benefit by
13    the trustee holding the funds. Except in  an  action  by  the
14    Comptroller  to  revoke a license issued pursuant to this Act
15    and for creation of a receivership as provided in  this  Act,
16    the  trust  shall  not  be  subject  to  judgment, execution,
17    garnishment, attachment,  or  other  seizure  by  process  in
18    bankruptcy  or  otherwise,  nor to sale, pledge, mortgage, or
19    other alienation, and  shall  not  be  assignable  except  as
20    approved  by  the  Comptroller.  The  changes  made  by  this
21    amendatory  Act  of the 91st General Assembly are intended to
22    clarify existing law regarding the inability of licensees  to
23    pledge the trust.
24        (f)  Because it is not known at the time of deposit or at
25    the  time  that income is earned on the trust account to whom
26    the  principal  and  the   accumulated   earnings   will   be
27    distributed,  for purposes of determining the Illinois Income
28    Tax due on these trust funds, the principal and  any  accrued
29    earnings  or losses relating to each individual account shall
30    be held in suspense until the final determination is made  as
31    to whom the account shall be paid.
32    (Source: P.A. 91-7, eff. 6-1-99.)

33        (815 ILCS 390/19) (from Ch. 21, par. 219)
 
                            -69-              LRB9201944LDprA
 1        Sec. 19.  Construction or development of spaces.
 2        (a)  The   construction  or  development  of  undeveloped
 3    interment, entombment or inurnment spaces shall be  commenced
 4    on  that  phase, section or sections of undeveloped ground or
 5    section  of   lawn   crypts,   mausoleums,   garden   crypts,
 6    columbariums  or  cemetery  spaces  in  which  sales are made
 7    within 3 years of the date of  the  first  such  sale.    The
 8    seller  shall give written notice to the Comptroller no later
 9    than 30 days after the first sale.  Such notice shall include
10    a description of the project.  Once  commenced,  construction
11    or  development  shall  be  pursued diligently to completion.
12    The construction must be completed  within  6  years  of  the
13    first  sale.  If construction or development is not commenced
14    or completed within the times specified herein, any purchaser
15    may surrender and cancel the contract and  upon  cancellation
16    shall  be  entitled  to  a  refund of the actual amounts paid
17    toward the purchase price plus interest attributable to  such
18    amount earned while in trust; provided however that any delay
19    caused  by  strike,  shortage  of  materials, civil disorder,
20    natural disaster or any like occurrence beyond the control of
21    the seller shall extend the time  of  such  commencement  and
22    completion by the length of such delay.
23        (b)  At  any  time  within  12  months  of  a purchaser's
24    entering into a pre-need contract for undeveloped  interment,
25    entombment or inurnment spaces, a purchaser may surrender and
26    cancel  his  or  her  contract and upon cancellation shall be
27    entitled to a refund of the actual amounts  paid  toward  the
28    purchase  price  plus  interest  attributable  to such amount
29    earned while in trust.  Notwithstanding  the  foregoing,  the
30    cancellation  and  refund  rights specified in this paragraph
31    shall  terminate  as  of  the  date  the   seller   commences
32    construction or development of the phase, section or sections
33    of  undeveloped  spaces  in  which sales are made.  After the
34    rights of  cancellation  and  refund  specified  herein  have
 
                            -70-              LRB9201944LDprA
 1    terminated,  if a purchaser defaults in making payments under
 2    the pre-need contract, the seller shall  have  the  right  to
 3    cancel  the  contract  and  withdraw  from the trust fund the
 4    entire balance to the credit of  the  defaulting  purchaser's
 5    account  as  liquidated  damages.  In such event, the trustee
 6    shall  deliver  said  balance  to   the   seller   upon   its
 7    certification,  and  upon  receiving  said  certification the
 8    trustee may rely thereon and shall not be  liable  to  anyone
 9    for such reliance.
10        (c)  During the construction or development of interment,
11    entombment  or inurnment spaces, upon the sworn certification
12    by the seller and the contractor to the trustee, the  trustee
13    shall  disburse  from the trust fund the amount equivalent to
14    the  cost  of  performed  labor  or  delivered  materials  as
15    certified.  Said certification shall be substantially in  the
16    following form:
17        We,  the  undersigned,  being respectively the Seller and
18    Contractor,  do  hereby  certify  that  the  Contractor   has
19    performed labor or delivered materials or both to (address of
20    property)  ..........,  in  connection  with  a  contract  to
21    ..........,  and  that as of this date the value of the labor
22    performed and materials delivered is $.......
23        We do  further  certify  that  in  connection  with  such
24    contract  there  remains labor to be performed, and materials
25    to be delivered, of the value of $........
26        This Certificate is signed (insert date).
27    ............              ............
28       Seller                  Contractor

29        A  person  who  executes  and   delivers   a   completion
30    certificate  with  actual  knowledge  of  a falsity contained
31    therein shall be considered in  violation  of  this  Act  and
32    subject to the penalties contained herein.
33        (d)  Except  as  otherwise  authorized  by  this Section,
34    every seller of undeveloped spaces shall  provide  facilities
 
                            -71-              LRB9201944LDprA
 1    for   temporary   interment,   entombment  or  inurnment  for
 2    purchasers or beneficiaries of contracts  who  die  prior  to
 3    completion  of the space.  Such temporary facilities shall be
 4    constructed  of  permanent   materials,   and,   insofar   as
 5    practical,  be landscaped and groomed to the extent customary
 6    in the  cemetery  industry  in  that  community.  The  heirs,
 7    assigns,   or  personal  representative  of  a  purchaser  or
 8    beneficiary  shall  not  be  required  to  accept   temporary
 9    underground  interment  spaces  where  the  undeveloped space
10    contracted for was an above ground  entombment  or  inurnment
11    space.   In  the event that temporary facilities as described
12    in this paragraph are not made available, upon the death of a
13    purchaser or beneficiary, the  heirs,  assigns,  or  personal
14    representative  is  entitled  to a refund of the entire sales
15    price paid plus undistributed interest attributable  to  such
16    amount while in trust.
17        (e)  If  the seller delivers a completed space acceptable
18    to  the  heirs,  assigns  or  personal  representative  of  a
19    purchaser or beneficiary, other than the temporary facilities
20    specified herein, in lieu of the undeveloped space purchased,
21    the  seller  shall  provide  the  trustee  with  a   delivery
22    certificate  and  all sums deposited under the pre-need sales
23    contract, including the undistributed income, shall  be  paid
24    to the seller.
25        (f)  Upon completion of the phase, section or sections of
26    the project as certified to the trustee by the seller and the
27    contractor  and  delivery  of  the  deed  or  certificate  of
28    ownership   to   the   completed  interment,  entombment,  or
29    inurnment space to all of the purchasers entitled to  receive
30    those  ownership  documents,  the trust fund requirements set
31    forth herein shall  terminate  and  all  funds  held  in  the
32    preconstruction  trust  fund  attributable  to  the completed
33    phase,  section  or  sections,  including  interest   accrued
34    thereon, shall be returned to the seller.
 
                            -72-              LRB9201944LDprA
 1        (g)  This   Section  shall  not  apply  to  the  sale  of
 2    undeveloped spaces if there has been any  such  sale  in  the
 3    same  phase,  section or sections of the project prior to the
 4    effective date of this Act.
 5    (Source: P.A. 91-357, eff. 7-29-99.)

 6        (815 ILCS 390/20) (from Ch. 21, par. 220)
 7        Sec. 20.  Records.
 8        (a)  Each licensee must keep accurate accounts, books and
 9    records in this State at  the  principal  place  of  business
10    identified  in  the  licensee's  license  application  or  as
11    otherwise  approved  by  the  Comptroller  in  writing of all
12    transactions, copies of  agreements,  dates  and  amounts  of
13    payments  made  or  received,  the names and addresses of the
14    contracting parties, the names and addresses of  persons  for
15    whose  benefit funds are received, if known, and the names of
16    the trust depositories. Additionally, for  a  period  not  to
17    exceed  6  months  after  the  performance  of all terms in a
18    pre-need sales contract, the licensee shall  maintain  copies
19    of  each  pre-need  contract  at the licensee branch location
20    where the contract was entered.
21        (b)  Each licensee  must  maintain  such  records  for  a
22    period of 3 years after the licensee shall have fulfilled his
23    or  her  obligation  under  the  pre-need contract or 3 years
24    after any stored merchandise shall have been provided to  the
25    purchaser or beneficiary, whichever is later.
26        (c)  Each   licensee   shall   submit   reports   to  the
27    Comptroller annually, under oath, on forms furnished  by  the
28    Comptroller.   The annual report shall contain, but shall not
29    be limited to, the following:
30             (1)  An accounting  of  the  principal  deposit  and
31        additions of principal during the fiscal year.
32             (2)  An accounting of any withdrawal of principal or
33        earnings.
 
                            -73-              LRB9201944LDprA
 1             (3)  An  accounting  at the end of each fiscal year,
 2        of the total amount of principal and earnings held.
 3        (d)  The annual report shall be  filed  by  the  licensee
 4    with  the  Comptroller  within  75  days after the end of the
 5    licensee's fiscal year.  An extension of up to 60 days may be
 6    granted by the Comptroller, upon a showing  of  need  by  the
 7    licensee.   Any  other reports shall be in the form furnished
 8    or specified by the Comptroller.   If  a  licensee  fails  to
 9    submit  an  annual  report to the Comptroller within the time
10    specified in this Section, the Comptroller shall impose  upon
11    the  licensee  a  penalty  of  $5  for each and every day the
12    licensee remains delinquent in submitting the annual  report.
13    Each report shall be accompanied by a check or money order in
14    the   amount  of  $10  payable  to:   Comptroller,  State  of
15    Illinois.
16        (e)  On and after the effective date of  this  amendatory
17    Act  of  the 91st General Assembly, a licensee may report all
18    required information concerning  the  sale  of  outer  burial
19    containers  on  the  licensee's  annual report required to be
20    filed under this Act and shall not be required to report that
21    information under the Illinois Funeral or Burial  Funds  Act,
22    as long as the information is reported under this Act.
23    (Source: P.A. 91-7, eff. 1-1-2000.)

24        (815 ILCS 390/22) (from Ch. 21, par. 222)
25        Sec. 22.  Cemetery Consumer Protection Fund.
26        (a)  Every seller engaging in pre-need sales shall pay to
27    the Comptroller $5 for each said contract entered into, to be
28    paid into a special income earning fund hereby created in the
29    State Treasury, known as  the  Cemetery  Consumer  Protection
30    Fund.    The  above  said  fees  shall  be  remitted  to  the
31    Comptroller semi-annually within 30 days  after  the  end  of
32    June and December for all contracts that have been entered in
33    such 6 month period.
 
                            -74-              LRB9201944LDprA
 1        (b)  All  monies  paid  into  the  fund together with all
 2    accumulated undistributed income thereon shall be held  as  a
 3    special  fund  in the State Treasury.  The fund shall be used
 4    solely for the purpose of providing restitution to  consumers
 5    who  have  suffered  pecuniary  loss  arising out of pre-need
 6    sales.
 7        (c)  The fund shall be applied  only  to  restitution  or
 8    completion  of  the project or delivery of the merchandise or
 9    services, where such has been ordered by the Circuit Court in
10    a lawsuit brought under this Act by the Attorney  General  of
11    the  State  of  Illinois  on behalf of the Comptroller and in
12    which it has been determined by the Court that the obligation
13    is non-collectible from  the  judgment  debtor.   Restitution
14    shall  not  exceed  the  amount  of the sales price paid plus
15    interest at the statutory rate.  The fund shall not  be  used
16    for the payment of any attorney or other fees.
17        (d)  Whenever  restitution  is paid by the fund, the fund
18    shall be subrogated to the amount of  such  restitution,  and
19    the  Comptroller shall request the Attorney General to engage
20    in all reasonable post judgment collection steps  to  collect
21    said  restitution  from the judgment debtor and reimburse the
22    fund.
23        (e)  The fund shall not be applied toward any restitution
24    for losses in any lawsuit initiated by the  Attorney  General
25    or  Comptroller or with respect to any claim made on pre-need
26    sales which occurred prior to the effective date of this Act.
27        (f)  The fund may not be allocated for any purpose  other
28    than that specified in this Act.
29        (g)  Notwithstanding any other provision of this Section,
30    the payment of restitution from the fund shall be a matter of
31    grace and not of right and no purchaser shall have any vested
32    rights  in  the fund as a beneficiary or otherwise.  Prior to
33    seeking restitution from the fund, a purchaser or beneficiary
34    seeking payment of restitution shall apply for restitution on
 
                            -75-              LRB9201944LDprA
 1    a form provided by the Comptroller. The  form  shall  include
 2    any  information  the  Comptroller  may reasonably require in
 3    order  for  the  Court  to  determine  that  restitution   or
 4    completion  of  the  project  or  delivery  of merchandise or
 5    service is appropriate.
 6        (h)  Annually, the status of the fund shall  be  reviewed
 7    by  the  Comptroller,  and  if  he  determines  that the fund
 8    together with all accumulated income earned  thereon,  equals
 9    or   exceeds   $10,000,000  and  that  the  total  number  of
10    outstanding claims filed against the fund is less than 10% of
11    the fund's current balance, then payments to the  fund  shall
12    be  suspended  until  such  time  as the fund's balance drops
13    below $10,000,000 or the total number of  outstanding  claims
14    filed against the fund is more than 10% of the fund's current
15    balance,  but  on  such  suspension,  the  fund  shall not be
16    considered inactive.
17    (Source: P.A. 84-239.)

18        (815 ILCS 390/27.1 new)
19        Sec. 27.1.  Sales; liability of purchaser  for  shortage.
20    In  the  event  of a sale or transfer of all or substantially
21    all of the assets of the licensee, the sale  or  transfer  of
22    the  controlling  interest  of  the  corporate  stock  of the
23    licensee if the  licensee  is  a  corporation,  the  sale  or
24    transfer  of  the  controlling interest of the partnership if
25    the  licensee  is  a  partnership,  or   sale   pursuant   to
26    foreclosure  proceedings,  the  purchaser  is  liable for any
27    shortages existing before or after  the  sale  in  the  trust
28    funds required to be maintained in a trust under this Act and
29    shall honor all pre-need contracts and trusts entered into by
30    the  licensee.  Any  shortages  existing  in  the trust funds
31    constitute a prior lien in favor of the trust for  the  total
32    value  of  the  shortages,  and  notice  of that lien must be
33    provided in all sales instruments.
 
                            -76-              LRB9201944LDprA
 1        In  the  event  of  a  sale  or  transfer   of   all   or
 2    substantially  all of the assets of the licensee, the sale or
 3    transfer of the controlling interest of the  corporate  stock
 4    of the licensee if the licensee is a corporation, or the sale
 5    or transfer of the controlling interest of the partnership if
 6    the  licensee  is a partnership, the licensee shall, at least
 7    21  days  prior  to  the  sale  or   transfer,   notify   the
 8    Comptroller,  in  writing,  of  the  pending  date of sale or
 9    transfer so as to permit the Comptroller to audit  the  books
10    and  records  of  the  licensee.  The audit must be commenced
11    within 10 business days after the receipt of the notification
12    and completed within the 21-day  notification  period  unless
13    the Comptroller notifies the licensee during that period that
14    there  is  a  basis  for  determining a deficiency which will
15    require additional time to finalize.  The  sale  or  transfer
16    may not be completed by the licensee unless and until:
17             (i)  the  Comptroller has completed the audit of the
18        licensee's books and records;
19             (ii) any delinquency existing in the trust funds has
20        been paid by the licensee, or  arrangements  satisfactory
21        to  the Comptroller have been made by the licensee on the
22        sale or transfer for the payment of any delinquency;
23             (iii)  the  Comptroller  issues   a   license   upon
24        application  of  the  new  owner,  which  license must be
25        applied for within 30 days after the anticipated date  of
26        the  sale  or  transfer,  subject  to  the payment of any
27        delinquencies, if any, as stated in item (ii).
28        For  purposes  of   this   Section,   a   person,   firm,
29    corporation,  partnership,  or  institution that acquires the
30    licensee through a real estate foreclosure is subject to  the
31    provisions of this Section.

32        Section 50. Severability. If any provision of this Act or
33    its  application  to  any  person  or  circumstance  is  held
 
                            -77-              LRB9201944LDprA
 1    invalid, the invalidity of that provision or application does
 2    not  affect other provisions or applications of this Act that
 3    can  be  given  effect  without  the  invalid  provision   or
 4    application.

 5        Section   99.  Effective  date.  This  Act  takes  effect
 6    January 1, 2002.
 
                            -78-              LRB9201944LDprA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    55 ILCS 70/1              from Ch. 21, par. 61
 4    60 ILCS 1/130-5
 5    65 ILCS 5/11-49-1         from Ch. 24, par. 11-49-1
 6    225 ILCS 45/1a            from Ch. 111 1/2, par. 73.101a
 7    225 ILCS 45/1a-1
 8    225 ILCS 45/2             from Ch. 111 1/2, par. 73.102
 9    225 ILCS 45/2a
10    225 ILCS 45/3             from Ch. 111 1/2, par. 73.103
11    225 ILCS 45/3a            from Ch. 111 1/2, par. 73.103a
12    225 ILCS 45/3a-5 new
13    225 ILCS 45/3e            from Ch. 111 1/2, par. 73.103e
14    225 ILCS 45/3f
15    225 ILCS 45/4             from Ch. 111 1/2, par. 73.104
16    225 ILCS 45/7.2
17    225 ILCS 45/8             from Ch. 111 1/2, par. 73.108
18    225 ILCS 45/8.1 new
19    305 ILCS 5/12-4.11        from Ch. 23, par. 12-4.11
20    760 ILCS 100/2a           from Ch. 21, par. 64.2a
21    760 ILCS 100/9            from Ch. 21, par. 64.9
22    760 ILCS 100/10           from Ch. 21, par. 64.10
23    760 ILCS 100/11           from Ch. 21, par. 64.11
24    760 ILCS 100/11.1
25    760 ILCS 100/13           from Ch. 21, par. 64.13
26    760 ILCS 100/15b
27    760 ILCS 100/26 new
28    765 ILCS 835/1            from Ch. 21, par. 15
29    815 ILCS 390/1            from Ch. 21, par. 201
30    815 ILCS 390/4            from Ch. 21, par. 204
31    815 ILCS 390/5            from Ch. 21, par. 205
32    815 ILCS 390/6            from Ch. 21, par. 206
33    815 ILCS 390/7            from Ch. 21, par. 207
34    815 ILCS 390/8            from Ch. 21, par. 208
 
                            -79-              LRB9201944LDprA
 1    815 ILCS 390/8a
 2    815 ILCS 390/9            from Ch. 21, par. 209
 3    815 ILCS 390/12           from Ch. 21, par. 212
 4    815 ILCS 390/14           from Ch. 21, par. 214
 5    815 ILCS 390/16           from Ch. 21, par. 216
 6    815 ILCS 390/19           from Ch. 21, par. 219
 7    815 ILCS 390/20           from Ch. 21, par. 220
 8    815 ILCS 390/22           from Ch. 21, par. 222
 9    815 ILCS 390/27.1 new

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