State of Illinois
92^nd General Assembly
Legislation

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92_HB2283eng

 
HB2283 Engrossed                              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:
 
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 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
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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 owning more than  12
10    cemeteries or funeral homes in more than one state.
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
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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.
 
HB2283 Engrossed            -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 11 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.  Life insurance
34    policies, tax-deferred annuities,  endorsements,  riders,  or
 
HB2283 Engrossed            -12-              LRB9201944LDprA
 1    applications for life insurance or tax-deferred annuities are
 2    not  subject to filing with the Comptroller.  The Comptroller
 3    may by rule develop a  model  pre-need  contract  form  which
 4    meets the requirements of this Act.
 5        (e)  The  State  Comptroller  shall  by  rule  develop  a
 6    booklet  for consumers in plain English describing the scope,
 7    application, and consumer protections of this Act.  After the
 8    adoption of these rules, no pre-need contract shall  be  sold
 9    in  this  State  unless  (i)  the  seller  distributes to the
10    purchaser prior to the sale a booklet promulgated or approved
11    for use by the State Comptroller; (ii) the seller explains to
12    the purchaser the terms of the pre-need contract prior to the
13    purchaser  signing;  and  (iii)  the  purchaser  initials   a
14    statement  in  the  contract  confirming  that the seller has
15    explained the terms of the contract prior  to  the  purchaser
16    signing.
17        (f)  All  sales  proceeds  received  in connection with a
18    pre-need contract shall be deposited into a trust account  as
19    provided in Section 1b and Section 2 of this Act, or shall be
20    used  to  purchase  a  life  insurance policy or tax-deferred
21    annuity as provided in Section 2a of this Act.
22        (g)  No pre-need contract shall be  sold  in  this  State
23    unless  it  is  accompanied  by a funding mechanism permitted
24    under this Act, and unless the  seller  is  licensed  by  the
25    Comptroller as provided in Section 3 of this Act.  Nothing in
26    this Act is intended to relieve sellers of pre-need contracts
27    from  being  licensed  under any other Act required for their
28    profession or  business,  and  being  subject  to  the  rules
29    promulgated   to   regulate  their  profession  or  business,
30    including rules on solicitation and advertisement.
31    (Source: P.A. 90-47, eff. 1-1-98.)

32        (225 ILCS 45/2) (from Ch. 111 1/2, par. 73.102)
33        Sec. 2.  (a) If a purchaser selects a  trust  arrangement
 
HB2283 Engrossed            -13-              LRB9201944LDprA
 1    to   fund  the  pre-need  contract,  all  trust  deposits  as
 2    determined by Section 1b shall be  made  within  30  days  of
 3    receipt.
 4        (b)  A   trust   established   under  this  Act  must  be
 5    maintained:
 6             (1)  in a  trust  account  established  in  a  bank,
 7        savings  and  loan  association,  savings bank, or credit
 8        union authorized to do  business  in  Illinois  in  which
 9        accounts   are  insured  by  an  agency  of  the  federal
10        government; or
11             (2)  in a trust company authorized to do business in
12        Illinois.
13        (c)  Trust  agreements  and  amendments  to   the   trust
14    agreements  used  to  fund a pre-need contract shall be filed
15    with the Comptroller.
16        (d)  (Blank). Trust agreements shall follow the format of
17    the  standard  Funeral  Trust  Agreements  approved  by   the
18    Comptroller  for  guaranteed  or non-guaranteed price funeral
19    plans.
20        (e)  A seller or provider shall furnish  to  the  trustee
21    and  depositary  the  name  of  each  payor and the amount of
22    payment on each such account for which deposit  is  being  so
23    made.   Nothing  shall  prevent  the  trustee  or a seller or
24    provider acting as a trustee in accordance with this Act from
25    commingling the deposits in any such trust fund for  purposes
26    of its management and the investment of its funds as provided
27    in  the  Common  Trust Fund Act.  In addition, multiple trust
28    funds  maintained  under  this  Act  may  be  commingled   or
29    commingled  with  other funeral or burial related trust funds
30    if all record keeping requirements imposed by law are met.
31        (f)  Trust  funds  may  be  maintained  in  a   financial
32    institution described in subsection (b) which is located in a
33    state   adjoining   this   State  where:  (1)  the  financial
34    institution is located within 50 miles of the border of  this
 
HB2283 Engrossed            -14-              LRB9201944LDprA
 1    State, (2) its accounts are federally insured, and (3) it has
 2    registered  with the Illinois Secretary of State for purposes
 3    of service of process.
 4        (g)  Upon notice  to  the  Comptroller,  the  seller  may
 5    change the trustee of the fund.
 6    (Source: P.A. 88-477.)

 7        (225 ILCS 45/2a)
 8        Sec. 2a.  Purchase of insurance or annuity.
 9        (a)  If  a  purchaser  selects  the  purchase  of  a life
10    insurance policy or tax-deferred annuity contract to fund the
11    pre-need contract,  the  application  and  collected  premium
12    shall  be  mailed  within  30  days  of  signing the pre-need
13    contract.
14        (b)  If life insurance or an annuity is used  to  fund  a
15    pre-need  contract, the seller or provider shall not be named
16    as the owner or beneficiary of the  policy  or  annuity.   No
17    person  whose  only  insurable interest in the insured is the
18    receipt of proceeds from the policy or in  naming  who  shall
19    receive  the  proceeds nor any trust acting on behalf of such
20    person or seller or provider  shall  be  named  as  owner  or
21    beneficiary of the policy or annuity.
22        (c)  Nothing    shall   prohibit   the   purchaser   from
23    irrevocably assigning ownership of the policy or annuity used
24    to fund a guaranteed price pre-need contract to a  person  or
25    trust  for  the  purpose of obtaining favorable consideration
26    for Medicaid, Supplemental Security Income, or another public
27    assistance program, as  permitted  under  federal  law.   The
28    seller  or  contract provider may be named a nominal owner of
29    the life insurance policy only for such time as it  takes  to
30    immediately  transfer  the  policy  into a trust.  Except for
31    this purpose, neither the seller nor  the  contract  provider
32    shall  be named the owner or the beneficiary of the policy or
33    annuity. , except that neither the seller  nor  the  contract
 
HB2283 Engrossed            -15-              LRB9201944LDprA
 1    provider shall be named the owner of the policy or annuity.
 2        (d)  If  a  life  insurance policy or annuity contract is
 3    used to fund a pre-need contract, except for guaranteed price
 4    contracts permitted in Section 4(a) of this Act, the pre-need
 5    contract must be revocable, and any the assignment  provision
 6    in   the   pre-need   contract  must  contain  the  following
 7    disclosure in 12 point bold type:
 8        THIS  ASSIGNMENT  MAY  BE  REVOKED  BY  THE  ASSIGNOR  OR
 9    ASSIGNOR'S SUCCESSOR OR, IF THE ASSIGNOR IS ALSO THE  INSURED
10    AND  DECEASED,  BY THE REPRESENTATIVE OF THE INSURED'S ESTATE
11    BEFORE THE RENDERING TO THE CEMETERY  SERVICES  OR  GOODS  OR
12    FUNERAL SERVICES OR GOODS.  IF THE ASSIGNMENT IS REVOKED, THE
13    DEATH  BENEFIT  UNDER  THE  LIFE  INSURANCE POLICY OR ANNUITY
14    CONTRACT SHALL BE PAID IN  ACCORDANCE  WITH  THE  BENEFICIARY
15    DESIGNATION UNDER THE INSURANCE POLICY OR ANNUITY CONTRACT.
16        (e)  Sales  proceeds  shall  not be used to purchase life
17    insurance  policies  or  tax-deferred  annuities  unless  the
18    company issuing the life insurance policies  or  tax-deferred
19    annuities   is  licensed  with  the  Illinois  Department  of
20    Insurance, and the insurance producer or  annuity  seller  is
21    licensed to do business in the State of Illinois.
22    (Source: P.A. 88-477.)

23        (225 ILCS 45/3) (from Ch. 111 1/2, par. 73.103)
24        Sec. 3.  Licensing.
25        (a)  No   person,   firm,   partnership,  association  or
26    corporation may act as seller without first securing from the
27    State Comptroller a license to so act. Application  for  such
28    license shall be in writing, signed by the applicant and duly
29    verified   on   forms  furnished  by  the  Comptroller.  Each
30    application shall contain at least the following:
31             (1)  The full name and address (both  residence  and
32        place  of  business)  of the applicant, and every member,
33        officer and director thereof if the applicant is a  firm,
 
HB2283 Engrossed            -16-              LRB9201944LDprA
 1        partnership,  association,  or  corporation, and of every
 2        shareholder holding more than 10% of the corporate  stock
 3        if  the  applicant  is  a corporation. Any license issued
 4        pursuant to the application shall be valid  only  at  the
 5        address  stated  in the application for such applicant or
 6        at  such  new  address  as  may  be   approved   by   the
 7        Comptroller;
 8             (2)  A  statement  of  the  applicant's  assets  and
 9        liabilities approximate net worth;
10             (3)   The   name  and  address  of  the  applicant's
11        principal place of business at which the books, accounts,
12        and records shall be available  for  examination  by  the
13        Comptroller as required by this Act;
14             (4)  The  names  and  addresses  of  the applicant's
15        branch  locations  at  which  pre-need  sales  shall   be
16        conducted  and which shall operate under the same license
17        number as the applicant's principal place of business;
18             (5) For each individual listed under item (1) above,
19        a  detailed  statement  of  the   individual's   business
20        experience  for  the  10  years immediately preceding the
21        application; any present or prior connection between  the
22        individual  and  any  other  person  engaged  in pre-need
23        sales; any felony or misdemeanor  convictions  for  which
24        fraud was an essential element; any charges or complaints
25        lodged  against  the  individual  for  which fraud was an
26        essential element and which resulted in civil or criminal
27        litigation; any failure of the individual to  satisfy  an
28        enforceable  judgment  entered  against  him  based  upon
29        fraud;   and  any  other  information  requested  by  the
30        Comptroller relating to past business  practices  of  the
31        individual.  Since  the information required by this item
32        (5)  may   be   confidential   or   contain   proprietary
33        information,  this  information shall not be available to
34        other licensees or the general public and shall  be  used
 
HB2283 Engrossed            -17-              LRB9201944LDprA
 1        only  for  the  lawful  purposes  of  the  Comptroller in
 2        enforcing this Act;
 3             (6) The name of the trustee and, if applicable,  the
 4        names of the advisors to the trustee, including a copy of
 5        the  proposed trust agreement under which the trust funds
 6        are to be held as required by this Act; and
 7             (7) Such other information as  the  Comptroller  may
 8        reasonably    require   in   order   to   determine   the
 9        qualification of the applicant to be licensed under  this
10        Act. and (3)
11        (b)  Applications  for  license shall be accompanied by a
12    fidelity bond executed by the applicant and a surety  company
13    authorized  to  do  business in this State or an irrevocable,
14    unconditional letter of  credit  issued  by  a  bank,  credit
15    union,  or  trust  company  authorized  to do business in the
16    State of Illinois, as approved by the State  Comptroller,  in
17    such  amount  not  exceeding  $10,000  as the Comptroller may
18    require.  Individual  salespersons  employed  by  a  licensee
19    shall  not be required to obtain licenses in their individual
20    capacities.  Upon receipt of such  application  and  bond  or
21    letter of credit the Comptroller shall issue a license unless
22    he  or  she shall determine that the applicant has made false
23    statements or representations  in  such  application,  or  is
24    insolvent,  or  has  conducted  or  is  about  to conduct his
25    business in a fraudulent manner, or is not duly authorized to
26    transact business in this State. Such license shall  be  kept
27    conspicuously   posted  in  the  place  of  business  of  the
28    licensee. If, after notice and an opportunity to be heard, it
29    has been determined that a licensee  has  violated  this  Act
30    within  the  past 5 calendar years, or if a licensee does not
31    retain a corporate fiduciary, as  defined  in  the  Corporate
32    Fiduciary  Act, to manage the funds in trust pursuant to this
33    Act, the Comptroller may require an additional bond or letter
34    of credit from the licensee from  time  to  time  in  amounts
 
HB2283 Engrossed            -18-              LRB9201944LDprA
 1    equal  to one-tenth of such trust funds, which bond or letter
 2    of credit shall run  to  the  Comptroller  for  the  use  and
 3    benefit of the beneficiaries of such trust funds.
 4        The  licensee  shall  keep  accurate  accounts, books and
 5    records in this State, at the  principal  place  of  business
 6    identified  in  the  licensee's  license  application  or  as
 7    otherwise  approved  by  the  Comptroller  in writing, of all
 8    transactions,  copies  of  all  pre-need   contracts,   trust
 9    agreements,  and  other  agreements,  dates  and  amounts  of
10    payments  made  and accepted thereon, the names and addresses
11    of the contracting parties, the  persons  for  whose  benefit
12    such funds are accepted, and the names of the depositaries of
13    such  funds.  Each  licensee shall maintain the documentation
14    for a period of 3 years after the licensee has fulfilled  his
15    obligations under the pre-need contract.  Additionally, for a
16    period  not  to  exceed 6 months after the performance of all
17    terms in  a  pre-need  sales  contract,  the  licensee  shall
18    maintain  copies  of  the  contract  at  the  licensee branch
19    location where the contract was  entered  or  at  some  other
20    location  agreed  to  by  the  Comptroller in writing.  If an
21    insurance policy or tax-deferred annuity is used to fund  the
22    pre-need contract, the licensee under this Act shall keep and
23    maintain accurate accounts, books, and records in this State,
24    at   the  principal  place  of  business  identified  in  the
25    licensee's  application  or  as  otherwise  approved  by  the
26    Comptroller  in  writing,  of  all  insurance  policies   and
27    tax-deferred  annuities  used  to fund the pre-need contract,
28    the name and  address  of  insured,  annuitant,  and  initial
29    beneficiary,  and  the  name  and  address  of  the insurance
30    company issuing the policy or annuity.  If a  life  insurance
31    policy  or  tax-deferred  annuity  is used to fund a pre-need
32    contract, the licensee shall notify the insurance company  of
33    the  name  of each pre-need contract purchaser and the amount
34    of each payment when the pre-need contract, insurance  policy
 
HB2283 Engrossed            -19-              LRB9201944LDprA
 1    or annuity is purchased.
 2        The  licensee  shall  make  reports  to  the  Comptroller
 3    annually  or  at  such  other  time  as  the  Comptroller may
 4    require, on forms furnished by the Comptroller. The  licensee
 5    shall  file  the annual report with the Comptroller within 75
 6    days after  the  end  of  the  licensee's  fiscal  year.  The
 7    Comptroller shall for good cause shown grant an extension for
 8    the  filing  of the annual report upon the written request of
 9    the licensee. Such extension shall not exceed 60 days.  If  a
10    licensee  fails to submit an annual report to the Comptroller
11    within the time specified in this  Section,  the  Comptroller
12    shall  impose  upon the licensee a penalty of $5 for each and
13    every day the licensee remains delinquent in  submitting  the
14    annual  report.  The Comptroller may abate all or part of the
15    $5 daily penalty for good  cause  shown.   Every  application
16    shall  be accompanied by a check or money order in the amount
17    of $25 and every report shall be accompanied by  a  check  or
18    money  order  in  the amount of $10 payable to:  Comptroller,
19    State of Illinois.
20        The licensee shall make all required  books  and  records
21    pertaining   to   trust   funds,   insurance   policies,   or
22    tax-deferred  annuities  available  to  the  Comptroller  for
23    examination.  The  Comptroller, or a person designated by the
24    Comptroller who is trained to perform such examinations,  may
25    at  any  time  investigate the books, records and accounts of
26    the licensee with respect to trust funds, insurance policies,
27    or tax-deferred annuities and for that  purpose  may  require
28    the  attendance  of  and examine under oath all persons whose
29    testimony he may require. The licensee shall pay  a  fee  for
30    such examination in accordance with a schedule established by
31    the  Comptroller.   The fee shall not exceed the cost of such
32    examination.  For  pre-need   contracts   funded   by   trust
33    arrangements,  the  cost  of  an initial examination shall be
34    borne by the licensee if it has  $10,000  or  more  in  trust
 
HB2283 Engrossed            -20-              LRB9201944LDprA
 1    funds, otherwise, by the Comptroller.  The charge made by the
 2    Comptroller  for an examination shall be based upon the total
 3    amount of trust funds held by the licensee at the end of  the
 4    calendar  or  fiscal year for which the report is required by
 5    this Act and  shall  be  in  accordance  with  the  following
 6    schedule:
 7    Less than $10,000..................................no charge;
 8    $10,000 or more but less than $50,000....................$10;
 9    $50,000 or more but less than $100,000...................$40;
10    $100,000 or more but less than $250,000..................$80;
11    $250,000 or more........................................$100.
12        The   Comptroller   may   order   additional   audits  or
13    examinations as he or she may deem necessary or advisable  to
14    ensure  the  safety  and  stability of the trust funds and to
15    ensure compliance with this Act.  These additional audits  or
16    examinations   shall   only  be  made  after  good  cause  is
17    established by the Comptroller in  the  written  order.   The
18    grounds  for ordering these additional audits or examinations
19    may include, but shall not be limited to:
20             (1)  material and unverified changes or fluctuations
21        in trust balances or insurance or annuity policy amounts;
22             (2)  the licensee changing trustees more than  twice
23        in any 12-month period;
24             (3)  any  withdrawals  or attempted withdrawals from
25        the trusts, insurance policies, or annuity  contracts  in
26        violation of this Act; or
27             (4)  failure  to  maintain  or produce documentation
28        required by this Act for deposits  into  trust  accounts,
29        trust investment activities, or life insurance or annuity
30        policies.
31        Prior to ordering an additional audit or examination, the
32    Comptroller shall request the licensee to respond and comment
33    upon  the factors identified by the Comptroller as warranting
34    the subsequent examination or audit.  The licensee shall have
 
HB2283 Engrossed            -21-              LRB9201944LDprA
 1    30 days to provide a response to  the  Comptroller.   If  the
 2    Comptroller   decides   to   proceed   with   the  additional
 3    examination or audit, the licensee shall bear the  full  cost
 4    of that examination or audit, up to a maximum of $7,500.  The
 5    Comptroller may elect to pay for the examination or audit and
 6    receive  reimbursement  from  the  licensee.   Payment of the
 7    costs of the examination or audit by a licensee  shall  be  a
 8    condition  of  receiving,  maintaining, or renewing a license
 9    under this Act.  All moneys received by the  Comptroller  for
10    examination  or  audit fees shall be maintained in a separate
11    account to be known as the Comptroller's Administrative Fund.
12    This Fund, subject to appropriation by the General  Assembly,
13    may be utilized by the Comptroller for enforcing this Act and
14    other purposes that may be authorized by law.
15        For  pre-need  contracts  funded  by  life insurance or a
16    tax-deferred annuity, the cost of  an  examination  shall  be
17    borne  by  the licensee if it has received $10,000 or more in
18    premiums during the preceding calendar year. The fee schedule
19    for  such  examination  shall   be   established   in   rules
20    promulgated   by   the   Comptroller.   In   the  event  such
21    investigation  or   other   information   received   by   the
22    Comptroller   discloses   a   substantial  violation  of  the
23    requirements of this Act, the Comptroller  shall  revoke  the
24    license  of  such  person  upon a hearing as provided in this
25    Act. Such licensee may terminate all  further  responsibility
26    for   compliance   with  the  requirements  of  this  Act  by
27    voluntarily surrendering the license to the  Comptroller,  or
28    in  the  event of its loss, furnishing the Comptroller with a
29    sworn statement to that effect, which states  the  licensee's
30    intention  to  discontinue acceptance of funds received under
31    pre-need  contracts.  Such  license  or  statement  must   be
32    accompanied  by  an affidavit that said licensee has lawfully
33    expended  or  refunded  all  funds  received  under  pre-need
34    contracts, and that the licensee will  accept  no  additional
 
HB2283 Engrossed            -22-              LRB9201944LDprA
 1    sales  proceeds.  The Comptroller shall immediately cancel or
 2    revoke said license.
 3    (Source: P.A. 88-477; 89-615, eff. 8-9-96.)

 4        (225 ILCS 45/3a) (from Ch. 111 1/2, par. 73.103a)
 5        Sec. 3a.  Denial, suspension, or revocation of license.
 6        (a)  The Comptroller may refuse to issue or  may  suspend
 7    or revoke a license on any of the following grounds:
 8             (1)  The   applicant   or   licensee  has  made  any
 9        misrepresentations or false statements or  concealed  any
10        material fact.
11             (2)  The applicant or licensee is insolvent.
12             (3)  The  applicant  or licensee has been engaged in
13        business practices that work a fraud.
14             (4)  The applicant or licensee has refused  to  give
15        pertinent data to the Comptroller.
16             (5)  The applicant or licensee has failed to satisfy
17        any  enforceable judgment or decree rendered by any court
18        of competent jurisdiction against the applicant.
19             (6)  The applicant or licensee has conducted  or  is
20        about to conduct business in a fraudulent manner.
21             (7)  The  trust  agreement is not in compliance with
22        State or federal law.
23             (8)  The fidelity bond is not  satisfactory  to  the
24        Comptroller.
25             (9)  As  to  any individual required to be listed in
26        the license application, the individual has conducted  or
27        is  about  to  conduct  any  business  on  behalf  of the
28        applicant in a fraudulent manner; has been  convicted  of
29        any  felony or misdemeanor, an essential element of which
30        is fraud; has had a judgment rendered against him or  her
31        based  on  fraud  in  any civil litigation; has failed to
32        satisfy  any  enforceable  judgment  or  decree  rendered
33        against  him  or  her   by   any   court   of   competent
 
HB2283 Engrossed            -23-              LRB9201944LDprA
 1        jurisdiction;  or has been convicted of any felony or any
 2        theft-related offense.
 3             (10)  The  applicant  or  licensee,  including   any
 4        member,  officer, or director thereof if the applicant or
 5        licensee  is  a   firm,   partnership,   association   or
 6        corporation  and any shareholder holding more than 10% of
 7        the corporate stock, has violated any provision  of  this
 8        Act  or  any regulation, decision, order, or finding made
 9        by the Comptroller under this Act.
10             (11)  The Comptroller finds any  fact  or  condition
11        existing  which,  if  it  had  existed at the time of the
12        original  application  for  such  license,   would   have
13        warranted the Comptroller in refusing the issuance of the
14        license.
15        (b)  Before   refusal   to  issue  or  renew  and  before
16    suspension or revocation of a license, the Comptroller  shall
17    hold   a  hearing  to  determine  whether  the  applicant  or
18    licensee, hereinafter  referred  to  as  the  respondent,  is
19    entitled  to hold such a license.  At  least 10 days prior to
20    the date set for such hearing, the Comptroller  shall  notify
21    the  respondent  in  writing  that  on  the date designated a
22    hearing will be held  to  determine  his  eligibility  for  a
23    license and that he may appear in person or by counsel.  Such
24    written notice may be served on the respondent personally, or
25    by  registered  or  certified  mail  sent to the respondent's
26    business address as shown in his latest notification  to  the
27    Comptroller.   At  the  hearing,  both the respondent and the
28    complainant shall be accorded ample opportunity to present in
29    person or by counsel such statements, testimony, evidence and
30    argument as may be pertinent to the charges or to any defense
31    thereto.   The  Comptroller  may  reasonably  continue   such
32    hearing from time to time.
33        The  Comptroller  may  subpoena  any person or persons in
34    this State and take testimony orally,  by  deposition  or  by
 
HB2283 Engrossed            -24-              LRB9201944LDprA
 1    exhibit,  in  the  same  manner  and  with  the same fees and
 2    mileage allowances as prescribed in judicial  proceedings  in
 3    civil cases.
 4        Any  authorized  agent  of the Comptroller may administer
 5    oaths to witnesses at any hearing which  the  Comptroller  is
 6    authorized to conduct.
 7    (Source: P.A. 84-839.)

 8        (225 ILCS 45/3a-5 new)
 9        Section 3a-5.  License requirements.
10        (a)  Every  license issued by the Comptroller shall state
11    the number of the license, the business name and  address  of
12    the  licensee's  principal  place  of  business,  each branch
13    location also operating under the license, and the licensee's
14    parent company, if any.  The license shall  be  conspicuously
15    posted in each place of business operating under the license.
16    The  Comptroller may issue such additional licenses as may be
17    necessary for licensee branch locations upon compliance  with
18    the  provisions of this Act governing an original issuance of
19    a license for each new license.
20        (b)  Individual  salespersons  representing  a   licensee
21    shall  not be required to obtain licenses in their individual
22    capacities, but must acknowledge,  by  affidavit,  that  they
23    have been provided with a copy of and have read this Act. The
24    licensee shall retain copies of the affidavits of its sellers
25    for  its  records  and shall make the affidavits available to
26    the Comptroller for examination upon request.
27        (c) The licensee shall be responsible for the  activities
28    of  any  person  representing  the  licensee  in  selling  or
29    offering a pre-need contract for sale.
30        (d)  Any person not selling on behalf of a licensee shall
31    obtain its own license.
32        (e)  No  license  shall  be  transferable  or  assignable
33    without the express written consent of  the  Comptroller.   A
 
HB2283 Engrossed            -25-              LRB9201944LDprA
 1    transfer  of  more  than 50% of the ownership of any business
 2    licensed  hereunder  shall  be  deemed  to  be  an  attempted
 3    assignment of the license originally issued to  the  licensee
 4    for which consent of the Comptroller shall be required.
 5        (f)  Every license issued hereunder shall remain in force
 6    until it has  been  suspended,  surrendered,  or  revoked  in
 7    accordance  with  this Act. The Comptroller, upon the request
 8    of an interested person or on his own motion, may  issue  new
 9    licenses  to  a  licensee whose license or licenses have been
10    revoked, if no factor or condition then  exists  which  would
11    have  warranted  the  Comptroller  to  originally  refuse the
12    issuance of such license.

13        (225 ILCS 45/3e) (from Ch. 111 1/2, par. 73.103e)
14        Sec. 3e.  Upon  the  revocation  of,  suspension  of,  or
15    refusal  to renew any license, the licensee shall immediately
16    surrender the license  or  licenses  and  any  branch  office
17    licenses to the Comptroller.  If the licensee fails to do so,
18    the Comptroller shall have the right to seize the same.
19    (Source: P.A. 84-839.)

20        (225 ILCS 45/3f)
21        Sec. 3f.  Revocation of license.
22        (a)  The  Comptroller,  upon  determination  that grounds
23    exist for the revocation or suspension of  a  license  issued
24    under  this  Act,  may revoke or suspend, if appropriate, the
25    license issued to a licensee or to a particular branch office
26    location with respect to which the grounds for revocation  or
27    suspension may occur or exist.
28        (b)  Whenever a license is revoked by the Comptroller, he
29    or she shall apply to the Circuit Court of the county wherein
30    the  licensee  is  located  for  a receiver to administer the
31    trust funds of the licensee or to maintain the life insurance
32    policies and tax-deferred  annuities  held  by  the  licensee
 
HB2283 Engrossed            -26-              LRB9201944LDprA
 1    under a pre-need contract.
 2    (Source: P.A. 88-477.)

 3        (225 ILCS 45/4) (from Ch. 111 1/2, par. 73.104)
 4        Sec. 4. Withdrawal of funds; revocability of contract.
 5        (a)  The  amount or amounts so deposited into trust, with
 6    interest thereon, if any, shall not be  withdrawn  until  the
 7    death  of  the  person or persons for whose funeral or burial
 8    such funds were paid, unless sooner withdrawn and  repaid  to
 9    the  person  who  originally  paid  the  money  under  or  in
10    connection  with the pre-need contract or to his or her legal
11    representative.  The life insurance policies or  tax-deferred
12    annuities  shall  not  be  surrendered until the death of the
13    person or persons for whose funeral or burial the policies or
14    annuities  were  purchased,  unless  sooner  surrendered  and
15    repaid to the owner of  the  policy  purchased  under  or  in
16    connection  with the pre-need contract or to his or her legal
17    representative.  If, however,  the  agreement  or  series  of
18    agreements  provides  for  forfeiture and retention of any or
19    all payments as and for liquidated  damages  as  provided  in
20    Section  6,  then  the  trustee may withdraw the deposits. In
21    addition, nothing in this Section (i) prohibits the change of
22    depositary by the trustee and the  transfer  of  trust  funds
23    from  one  depositary to another or (ii) prohibits a contract
24    purchaser who is or may become eligible for public assistance
25    under any applicable federal or State law or local  ordinance
26    including,  but  not limited to, eligibility under 24 C.F.R.,
27    Part 913 relating to family insurance under  federal  Housing
28    and  Urban  Development  Policy  from irrevocably waiving, in
29    writing, and  renouncing  the  right  to  cancel  a  pre-need
30    contract for funeral services in an amount prescribed by rule
31    of the Illinois Department of Public Aid. No guaranteed price
32    pre-need  funeral  contract  may  prohibit  a  purchaser from
33    making a contract irrevocable to the extent that federal  law
 
HB2283 Engrossed            -27-              LRB9201944LDprA
 1    or  regulations  require  that such a contract be irrevocable
 2    for purposes of the purchaser's eligibility for  Supplemental
 3    Security   Income   benefits,  Medicaid,  or  another  public
 4    assistance program, as permitted under federal law.
 5        (b)  If for any reason  a  seller  or  provider  who  has
 6    engaged  in  pre-need  sales has refused, cannot, or does not
 7    comply with the terms  of  the  pre-need  contract  within  a
 8    reasonable  time  after  he  or she is required to do so, the
 9    purchaser or his or her heirs or assigns or  duly  authorized
10    representative  shall have the right to a refund of an amount
11    equal to the sales price paid for undelivered merchandise  or
12    services plus otherwise earned undistributed interest amounts
13    held in trust attributable to the contract, within 30 days of
14    the  filing  of  a  sworn  affidavit with the trustee setting
15    forth the existence of the contract and the fact  of  breach.
16    A  copy of this affidavit shall be filed with the Comptroller
17    and the seller.  In the event  a  seller  is  prevented  from
18    performing  by strike, shortage of materials, civil disorder,
19    natural disaster, or any like occurrence beyond  the  control
20    of  the seller or provider, the seller or provider's time for
21    performance shall be extended by the  length  of  the  delay.
22    Nothing  in this Section shall relieve the seller or provider
23    from  any  liability  for  non-performance  of  his  or   her
24    obligations under the pre-need contract.
25        (c)  After  final  payment  on  a  pre-need contract, any
26    purchaser may, upon written demand to a seller,  demand  that
27    the  pre-need  contract  with  the seller be terminated.  The
28    seller shall, within  30  days,  initiate  a  refund  to  the
29    purchaser  of the entire amount held in trust attributable to
30    undelivered merchandise and unperformed  services,  including
31    otherwise earned undistributed interest earned thereon or the
32    cash   surrender   value   of  a  life  insurance  policy  or
33    tax-deferred annuity.
34        (c-5)  If no funeral merchandise or services are provided
 
HB2283 Engrossed            -28-              LRB9201944LDprA
 1    or if the funeral is conducted by another person, the  seller
 2    may  keep  no  more  than  10% of the payments made under the
 3    pre-need contract  or  $300,  whichever  sum  is  less.   The
 4    remainder of the trust funds or insurance or annuity proceeds
 5    shall  be  forwarded to the legal heirs of the deceased or as
 6    determined by probate action.
 7        (d)  The placement and retention of all or a portion of a
 8    casket,  combination  casket-vault,  urn,  or  outer   burial
 9    container  comprised  of  materials  which  are  designed  to
10    withstand  prolonged  storage in the manner set forth in this
11    paragraph  without   adversely   affecting   the   structural
12    integrity or aesthetic characteristics of such merchandise in
13    a  specific  burial  space in which the person or persons for
14    whose funeral or burial the merchandise was  intended  has  a
15    right  of interment, or the placement of the merchandise in a
16    specific mausoleum crypt or lawn crypt in which  such  person
17    has   a   right  of  entombment,  or  the  placement  of  the
18    merchandise in a specific niche in which such  person  has  a
19    right  of inurnment, or delivery to such person and retention
20    by such person until the time of need shall constitute actual
21    delivery to the person who originally paid the money under or
22    in connection with said agreement or  series  of  agreements.
23    Actual  delivery  shall eliminate, from and after the date of
24    actual delivery, any requirement under this Act to  place  or
25    retain  in  trust  any  funds  received  for the sale of such
26    merchandise.  The delivery, prior to the time of need, of any
27    funeral or  burial  merchandise  in  any  manner  other  than
28    authorized  by  this  Section  shall  not  constitute  actual
29    delivery  and  shall not eliminate any requirement under this
30    Act to place or retain in trust any funds  received  for  the
31    sale of such merchandise.
32    (Source: P.A. 87-1091; 88-477.)

33        (225 ILCS 45/7.2)
 
HB2283 Engrossed            -29-              LRB9201944LDprA
 1        Sec.  7.2.   Investigation  of unlawful practices.  If it
 2    appears to the Comptroller that a person has engaged  in,  is
 3    engaging  in,  or  is  about  to  engage  in  any practice in
 4    violation of  declared  to  be  unlawful  by  this  Act,  the
 5    Comptroller may:
 6             (1)  require  that  person  to file on such terms as
 7        the Comptroller  prescribes  a  statement  or  report  in
 8        writing,   under   oath   or  otherwise,  containing  all
 9        information the Comptroller  may  consider  necessary  to
10        ascertain  whether  a licensee is in compliance with this
11        Act, or whether  an  unlicensed  person  is  engaging  in
12        activities for which a license is required;
13             (2)  examine  under  oath  any  person in connection
14        with the books and records pertaining  to  or  having  an
15        impact  upon  trust  funds,  insurance  policies,  or tax
16        deferred annuities required or allowed to  be  maintained
17        pursuant to this Act;
18             (3)  examine  any books and records of the licensee,
19        trustee, or investment advisor that the  Comptroller  may
20        consider necessary to ascertain compliance with this Act;
21        and
22             (4)  require the production of a copy of any record,
23        book,  document,  account,  or  paper that is produced in
24        accordance with this Act and retain  it  in  his  or  her
25        possession  until  the  completion  of all proceedings in
26        connection with which it is produced.
27    (Source: P.A. 89-615, eff. 8-9-96.)

28        (225 ILCS 45/8) (from Ch. 111 1/2, par. 73.108)
29        Sec. 8. Any person who intentionally fails to deposit the
30    required sales proceeds into a trust required under this Act,
31    intentionally and improperly withdraws or  uses  trust  funds
32    for  his  or  her  own  benefit,  or  otherwise intentionally
33    violates any provision of this Act is guilty  of  a  Class  4
 
HB2283 Engrossed            -30-              LRB9201944LDprA
 1    felony.
 2        If any person intentionally violates this Act or fails or
 3    refuses  to  comply  with any order of the Comptroller or any
 4    part of an order that has become final to the person  and  is
 5    still  in  effect,  the  Comptroller  may,  after  notice and
 6    hearing at which it is determined that a  violation  of  this
 7    Act  or  the order has been committed, further order that the
 8    person shall forfeit and pay to the State of Illinois  a  sum
 9    not  to  exceed  $5,000  for  each violation.  This liability
10    shall be enforced in  an  action  brought  in  any  court  of
11    competent  jurisdiction by the Comptroller in the name of the
12    People of the State of Illinois.
13        Any violation of  this  Act  for  which  a  fine  may  be
14    assessed  shall  be  established  by rules promulgated by the
15    Comptroller.
16        In addition to the other penalties and remedies  provided
17    in  this Act, the Comptroller may bring a civil action in the
18    county of residence of the licensee or any  person  accepting
19    trust  funds  to enjoin any violation or threatened violation
20    of this Act.
21        The powers vested in the Comptroller by this Section  are
22    in  addition  to any and all other powers and remedies vested
23    in the Comptroller by law.
24    (Source: P.A. 88-477.)

25        (225 ILCS 45/8.1 new)
26        Sec. 8.1.  Sales; liability of purchaser for shortage. In
27    the event of a sale or transfer of all or  substantially  all
28    of  the  assets  of the licensee, the sale or transfer of the
29    controlling interest of the corporate stock of  the  licensee
30    if the licensee is a corporation, the sale or transfer of the
31    controlling  interest of the partnership if the licensee is a
32    partnership,  or  the  sale  of  the  licensee  pursuant   to
33    foreclosure  proceedings,  the  purchaser  is  liable for any
 
HB2283 Engrossed            -31-              LRB9201944LDprA
 1    shortages existing before or after  the  sale  in  the  trust
 2    funds  required  to be maintained in a trust pursuant to this
 3    Act and shall honor all pre-need contracts and trusts entered
 4    into by the licensee. Any shortages  existing  in  the  trust
 5    funds  constitute  a prior lien in favor of the trust for the
 6    total value of the shortages, and notice of that  lien  shall
 7    be provided in all sales instruments.
 8        In   the   event   of  a  sale  or  transfer  of  all  or
 9    substantially all of the assets of the licensee, the sale  or
10    transfer  of  the controlling interest of the corporate stock
11    of the licensee if the licensee is a corporation, or the sale
12    or transfer of the controlling interest of the partnership if
13    the licensee is a partnership, the licensee shall,  at  least
14    21   days   prior   to  the  sale  or  transfer,  notify  the
15    Comptroller, in writing, of  the  pending  date  of  sale  or
16    transfer  so  as to permit the Comptroller to audit the books
17    and records of the licensee.  The  audit  must  be  commenced
18    within  10  business  days of the receipt of the notification
19    and completed within the 21-day  notification  period  unless
20    the Comptroller notifies the licensee during that period that
21    there  is  a  basis  for  determining a deficiency which will
22    require additional time to finalize.  The  sale  or  transfer
23    may not be completed by the licensee unless and until:
24             (i)  the  Comptroller has completed the audit of the
25        licensee's books and records;
26             (ii) any delinquency existing in the trust funds has
27        been paid by the licensee, or  arrangements  satisfactory
28        to  the Comptroller have been made by the licensee on the
29        sale or transfer for the payment of any delinquency; and
30             (iii)  the  Comptroller  issues   a   license   upon
31        application  of  the  new  owner,  which  license must be
32        applied for within 30 days of the anticipated date of the
33        sale  or  transfer,  subject  to  the  payment   of   any
34        delinquencies, if any, as stated in item (ii).
 
HB2283 Engrossed            -32-              LRB9201944LDprA
 1        For   purposes   of   this   Section,   a  person,  firm,
 2    corporation, partnership, or institution  that  acquires  the
 3    licensee  through  a real estate foreclosure shall be subject
 4    to the provisions of this Section.

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

 7        (305 ILCS 5/12-4.11) (from Ch. 23, par. 12-4.11)
 8        Sec.  12-4.11.  Grant amounts.   The Department, with due
 9    regard  for  and  subject  to  budgetary  limitations,  shall
10    establish  grant  amounts  for  each  of  the  programs,   by
11    regulation.   The  grant amounts may vary by program, size of
12    assistance unit and geographic area.
13        Aid payments shall not be reduced except: (1) for changes
14    in the cost of items included in the grant  amounts,  or  (2)
15    for  changes  in  the  expenses  of the recipient, or (3) for
16    changes  in  the  income  or  resources  available   to   the
17    recipient,  or  (4)  for  changes  in  grants  resulting from
18    adoption of a consolidated grant amount.
19        In fixing standards to govern payments or  reimbursements
20    for   funeral  and  burial  expenses,  the  Department  shall
21    establish a minimum allowable amount of not less than  $1,000
22    for  Department payment of funeral services and not less than
23    $500 for Department payment of burial or cremation  services.
24    In  establishing the minimum allowable amount, the Department
25    shall  take  into  account  the  services  essential   to   a
26    dignified, low-cost (i) funeral and (ii) burial or cremation,
27    including reasonable amounts that may be necessary for burial
28    space and cemetery charges, and any applicable taxes or other
29    required  governmental  fees  or  charges.  If  no person has
30    agreed to pay the total cost of  the  (i)  funeral  and  (ii)
31    burial  or  cremation  charges,  the Department shall pay the
32    vendor the actual costs of the (i) funeral and (ii) burial or
 
HB2283 Engrossed            -33-              LRB9201944LDprA
 1    cremation, or the minimum allowable amount for  each  service
 2    as established by the Department, whichever is less, provided
 3    that  the  Department  reduces  its  payments  by  the amount
 4    available from the following sources: the  decedent's  assets
 5    and  available  resources  and the anticipated amounts of any
 6    death  benefits  available  to  the  decedent's  estate,  and
 7    amounts paid and  arranged  to  be  paid  by  the  decedent's
 8    legally responsible relatives. A legally responsible relative
 9    is  expected  to pay (i) funeral and (ii) burial or cremation
10    expenses unless financially unable to do so.
11        Nothing contained in this Section or in any other Section
12    of this Code shall be  construed  to  prohibit  the  Illinois
13    Department  (1)  from consolidating existing standards on the
14    basis of any standards which are or were  in  effect  on,  or
15    subsequent  to  July  1,  1969,  or  (2)  from  employing any
16    consolidated standards in determining need for public aid and
17    the  amount  of  money  payment  or  grant   for   individual
18    recipients or recipient families.
19    (Source:  P.A.  90-17,  eff.  7-1-97;  90-326,  eff.  8-8-97;
20    90-372,  eff.  7-1-98;  90-655,  eff.  7-30-98;  91-24,  eff.
21    7-1-99.)

22        Section  27.  The  Crematory Regulation Act is amended by
23    changing Section 10 as follows:

24        (410 ILCS 18/10)
25        Sec. 10. Establishment of crematory and  registration  of
26    crematory authority.
27        (a)  Any  person  doing  business  in  this State, or any
28    cemetery, funeral  establishment,  corporation,  partnership,
29    joint  venture,  voluntary  organization or any other entity,
30    may erect, maintain, and operate a crematory  in  this  State
31    and  provide the necessary appliances and  facilities for the
32    cremation of human remains in accordance with this Act.
 
HB2283 Engrossed            -34-              LRB9201944LDprA
 1        (b)  A crematory shall be subject to  all  local,  State,
 2    and  federal health and environmental protection requirements
 3    and shall obtain all necessary licenses and permits from  the
 4    Department,  the  federal  Department  of  Health  and  Human
 5    Services,   and   the   Illinois  and  federal  Environmental
 6    Protection Agencies, or such other appropriate local,  State,
 7    or federal agencies.
 8        (c)  A crematory may be constructed on or adjacent to any
 9    cemetery,  on or adjacent to any funeral establishment, or at
10    any other location consistent with local zoning regulations.
11        (d)  An  application  for  registration  as  a  crematory
12    authority shall be in  writing  on  forms  furnished  by  the
13    Comptroller.  Applications  shall  be accompanied by a fee of
14    $50 and shall contain all of the following:
15             (1)  The full name and address, both  residence  and
16        business,  of  the  applicant  if  the  applicant  is  an
17        individual;  the full name and address of every member if
18        the applicant is a partnership; the full name and address
19        of  every  member  of  the  board  of  directors  if  the
20        applicant is an association; and the name and address  of
21        every  officer,  director,  and  shareholder holding more
22        than 25% of the corporate stock if  the  applicant  is  a
23        corporation.
24             (2)  The address and location of the crematory.
25             (3)  A  description  of  the  type  of structure and
26        equipment to be used in the operation of the crematory.
27             (4)  Any further information  that  the  Comptroller
28        reasonably may require.
29        (e)  Each crematory authority shall file an annual report
30    with  the  Comptroller, accompanied with a $25 fee, providing
31    any  changes  required  in  the  information  provided  under
32    subsection (d) or indicating that no changes  have  occurred.
33    The  annual report shall be filed by a crematory authority on
34    or before March 15 of each calendar year, in  the  Office  of
 
HB2283 Engrossed            -35-              LRB9201944LDprA
 1    the  Comptroller. If the fiscal year of a crematory authority
 2    is other than on a calendar year basis,  then  the  crematory
 3    authority  shall  file  the  report  required by this Section
 4    within 75  days  after  the  end  of  its  fiscal  year.  The
 5    Comptroller  shall,  for good cause shown, grant an extension
 6    for the filing of the annual report upon the written  request
 7    of  the crematory authority. An extension shall not exceed 60
 8    days. If a crematory authority  fails  to  submit  an  annual
 9    report  to  the Comptroller within the time specified in this
10    Section, the Comptroller  shall  impose  upon  the  crematory
11    authority  a  penalty  of  $5  for  each  and  every  day the
12    crematory authority  remains  delinquent  in  submitting  the
13    annual  report.  The Comptroller may abate all or part of the
14    $5 daily penalty for good cause shown.
15        (f)  All records relating to the registration and  annual
16    report  of the crematory authority required to be filed under
17    this  Section  shall  be  subject  to   inspection   by   the
18    Comptroller upon reasonable notice.
19    (Source: P.A. 87-1187.)

20        Section  30. The Cemetery Care Act is amended by changing
21    Sections 2a, 9, 10, 11,  12,  13,  15b,  and  24  and  adding
22    Section 26 as follows:

23        (760 ILCS 100/2a) (from Ch. 21, par. 64.2a)
24        Sec.  2a.   Powers  and  duties  of cemetery authorities;
25    cemetery property maintained by cemetery care funds.
26        (a)  With respect  to  cemetery  property  maintained  by
27    cemetery   care   funds,   a   cemetery  authority  shall  be
28    responsible for the performance of:
29             (1) (a)  the care and maintenance  of  the  cemetery
30        property it owns; and
31             (2)  (b)  the  opening  and  closing  of all graves,
32        crypts, or niches  for  human  remains  in  any  cemetery
 
HB2283 Engrossed            -36-              LRB9201944LDprA
 1        property it owns.
 2        (b)  A  cemetery authority owning, operating, controlling
 3    or  managing  a  privately  operated  cemetery   shall   make
 4    available for inspection, and upon reasonable request provide
 5    a  copy  of, its rules and regulations and its current prices
 6    of interment, inurnment, or entombment rights.
 7        (c)  A cemetery authority owning, operating,  controlling
 8    or  managing  a privately operated cemetery may, from time to
 9    time as land in its  cemetery  may  be  required  for  burial
10    purposes,  survey and subdivide those lands and make and file
11    in its office a map thereof delineating the  lots  or  plots,
12    avenues,  paths,  alleys,  and  walks  and  their  respective
13    designations.   The  cemetery authority shall open the map to
14    public inspection. The cemetery authority may make  available
15    a copy of the overall map upon written request and payment of
16    reasonable  photocopy  fees.  Any unsold lots, plots or parts
17    thereof, in  which  there  are  not  human  remains,  may  be
18    resurveyed  and  altered  in  shape  or  size,  and  properly
19    designated   on   such   map.    Nothing  contained  in  this
20    subsection, however, shall  prevent  the  cemetery  authority
21    from  enlarging  an  interment  right by selling to the owner
22    thereof the excess space next to  such  interment  right  and
23    permitting  interments therein, provided reasonable access to
24    such interment right and to adjoining interment rights is not
25    thereby eliminated. The Comptroller may waive any or  all  of
26    the requirements of this subsection (c) for good cause shown.
27        (d)  A cemetery authority owning, operating, controlling,
28    or managing a privately operated cemetery shall keep a record
29    of   every   interment,  entombment,  and  inurnment  in  the
30    cemetery.  The record shall include the deceased's name, age,
31    and  date  of  burial,  when   these   particulars   can   be
32    conveniently  obtained,  and  the lot, plot, or section where
33    the human remains are interred,  entombed,  or  inurned.  The
34    record  shall  be  open  to public inspection consistent with
 
HB2283 Engrossed            -37-              LRB9201944LDprA
 1    State and federal law.  The  cemetery  authority  shall  make
 2    available, consistent with State and federal law, a true copy
 3    of  the record upon written request and payment of reasonable
 4    copy costs.
 5        (e)  A cemetery authority owning, operating, controlling,
 6    or managing  a  privately  operated  cemetery  shall  provide
 7    access   to  the  cemetery  under  the  cemetery  authority's
 8    reasonable rules and regulations.
 9    (Source: P.A. 87-747.)

10        (760 ILCS 100/9) (from Ch. 21, par. 64.9)
11        Sec. 9. Application for license.
12        (a)  Prior to the acceptance of care funds authorized  by
13    Section  3  of  this  Act  or  the  sale  or  transfer of the
14    controlling interest of  a  licensed  cemetery  authority,  a
15    cemetery   authority   owning,   operating,  controlling,  or
16    managing a privately operated cemetery shall make application
17    to the Comptroller for a license to hold the funds.  Whenever
18    a   cemetery  authority  owning,  operating,  controlling  or
19    managing a privately operated cemetery is newly organized and
20    such cemetery authority desires to be licensed to accept  the
21    care  funds  authorized by Section 3 of this Act, or whenever
22    there is a sale or transfer of the controlling interest of  a
23    licensed  cemetery  authority,  it shall make application for
24    such license.
25        In the case of a sale  or  transfer  of  the  controlling
26    interest  of  the cemetery authority, the prior license shall
27    remain in effect until the Comptroller issues a  new  license
28    to  the  newly-controlled  cemetery  authority as provided in
29    Section 15b.  Upon issuance of the  new  license,  the  prior
30    license  shall  be  deemed  surrendered  if  the licensee has
31    agreed to the sale and transfer  and  has  consented  to  the
32    surrender  of  the  license.   A  sale  or  transfer  of  the
33    controlling  interest of a cemetery authority to an immediate
 
HB2283 Engrossed            -38-              LRB9201944LDprA
 1    family member is not considered a transfer of the controlling
 2    interest for purposes of this Section.
 3        (b)  Applications for license shall  be  filed  with  the
 4    Comptroller.  Applications  shall  be  in writing under oath,
 5    signed by the applicant, and in the  form  furnished  by  the
 6    Comptroller.    The  form  furnished by the Comptroller shall
 7    enable a cemetery authority to apply for license of  multiple
 8    cemetery  locations  within a single license application.   A
 9    check or money order in the amount of $25 per license seeking
10    to be issued under the application, payable to:  Comptroller,
11    State of Illinois, shall be included.  Each application shall
12    contain the following:
13             (1)  the  full  name  and address (both of residence
14        and of  place  of  business)  of  the  applicant,  if  an
15        individual;  of  every  member,  if  the  applicant  is a
16        partnership  or  association;  of   every   officer,   or
17        director,  if the applicant is a corporation;, and of any
18        party owning 10% or more of the cemetery  authority,  and
19        the full name and address of the parent company, if any;
20             (2)  a  detailed statement of the applicant's assets
21        and liabilities;
22             (2.1)  the name, address, and  legal  boundaries  of
23        each cemetery for which the care funds shall be entrusted
24        and  at  which  books,  accounts,  and  records  shall be
25        available for examination by the Comptroller as  required
26        by Section 13 of this Act;
27             (3)  as to the name of each individual person listed
28        under  (1)  above,  a detailed statement of each person's
29        business  experience  for  the   10   years   immediately
30        preceding  the  application;  the  present  and  previous
31        connection,  if  any,  of  each  person  with  any  other
32        cemetery  or  cemetery authority; whether each person has
33        ever been convicted of any a  felony  or  has  ever  been
34        convicted  of  any  misdemeanor  of  which  an  essential
 
HB2283 Engrossed            -39-              LRB9201944LDprA
 1        element  is  fraud  or  has  been  involved  in any civil
 2        litigation in which a judgment has been  entered  against
 3        him  or  her  based  on  fraud;  whether  each  person is
 4        currently  a  defendant  in  any  lawsuit  in  which  the
 5        complaint against the person is based upon fraud; whether
 6        such  person  has  failed  to  satisfy  any   enforceable
 7        judgment  entered by a court of competent jurisdiction in
 8        any civil proceedings against such individual; and
 9             (4)  the total amount in  trust  and  now  available
10        from  sales  of lots, graves, crypts or niches where part
11        of the sale price has been placed in trust; the amount of
12        money placed in the care funds  of  each  applicant;  the
13        amount  set  aside  in  care funds from the sale of lots,
14        graves, crypts and niches for the  general  care  of  the
15        cemetery  and  the amount available for that purpose; the
16        amount received in trust by special agreement for special
17        care and the  amount  available  for  that  purpose;  the
18        amount of principal applicable to trust funds received by
19        the applicant; and.
20             (5)  any  other information that the Comptroller may
21        reasonably   require   in   order   to   determine    the
22        qualifications of the applicant to be licensed under this
23        Act.
24        Such  information  shall  be  furnished  whether the care
25    funds  are  held  by  the  applicant  as  trustee  or  by  an
26    independent trustee.  If  the  funds  are  not  held  by  the
27    applicant,  the  name of the independent trustee holding them
28    is also to be furnished by the applicant.
29        (c)  Applications for license shall also  be  accompanied
30    by  a  fidelity bond issued by a bonding company or insurance
31    company authorized to do business in  this  State  or  by  an
32    irrevocable,  unconditional letter of credit issued by a bank
33    or trust company authorized to do business in  the  State  of
34    Illinois,  as  approved  by the State Comptroller, where such
 
HB2283 Engrossed            -40-              LRB9201944LDprA
 1    care funds exceed the sum of $15,000.  Such bond or letter of
 2    credit shall run to the Comptroller and his or her  successor
 3    for  the  benefit  of  the  care  funds held by such cemetery
 4    authority or by  the  trustee  of  the  care  funds  of  such
 5    cemetery authority.  Such bonds or letters of credit shall be
 6    in an amount equal to 1/10 of such care funds.  However, such
 7    bond  or letter of credit shall not be in an amount less than
 8    $1,000; the first $15,000 of such care  funds  shall  not  be
 9    considered  in computing the amount of such bond or letter of
10    credit.  No application shall be accepted by the  Comptroller
11    unless accompanied by such bond or letter of credit.
12        Applications  for  license  by  newly  organized cemetery
13    authorities after January 1, 1960 shall also  be  accompanied
14    by evidence of a minimum care fund deposit in an amount to be
15    determined  as  follows: if the number of inhabitants, either
16    in the county in which the cemetery is to be  located  or  in
17    the  area  included within a 10 mile radius from the cemetery
18    if the number of inhabitants therein is greater, is 25,000 or
19    less  the  deposit  shall  be  $7,500;  if  the   number   of
20    inhabitants  is  25,001  to  50,000,  the  deposit  shall  be
21    $10,000;  if  the number of inhabitants is 50,001 to 125,000,
22    the deposit shall be $15,000; if the number of inhabitants is
23    over 125,000, the deposit shall be $25,000.
24        After an amount equal to and in addition to the  required
25    minimum  care  fund  deposit has been deposited in trust, the
26    cemetery authority may withhold 50% of all future care  funds
27    until  it  has  recovered the amount of the minimum care fund
28    deposit.
29        (d)  (Blank).  The  applicant  shall  have  a   permanent
30    address and any license issued pursuant to the application is
31    valid  only  at the address or at any new address approved by
32    the Comptroller.
33        (e)  All bonds and bonding deposits made by any  cemetery
34    authority  may  be  returned  to  the  cemetery  authority or
 
HB2283 Engrossed            -41-              LRB9201944LDprA
 1    cancelled as  to  care  funds  invested  with  an  investment
 2    company.
 3    (Source: P.A. 89-615, eff. 8-9-96; 90-655, eff. 7-30-98.)

 4        (760 ILCS 100/10) (from Ch. 21, par. 64.10)
 5        Sec.  10.   Upon receipt of such application for license,
 6    the Comptroller shall issue a license to the applicant unless
 7    the Comptroller determines that:
 8        (a)  The applicant has  made  any  misrepresentations  or
 9    false  statements  or has concealed any essential or material
10    fact, or
11        (b)  The applicant is insolvent; or
12        (c)  The applicant is or has been using practices in  the
13    conducting of the cemetery business that work or tend to work
14    a fraud; or
15        (d)  The   applicant  has  refused  to  furnish  or  give
16    pertinent data to the Comptroller; or
17        (e)  The applicant has failed to notify  the  Comptroller
18    with   respect   to   any  material  facts  required  in  the
19    application for license under the provisions of this Act; or
20        (f)  The applicant has failed to satisfy any  enforceable
21    judgment   entered   by   the  circuit  court  in  any  civil
22    proceedings against such applicant; or
23        (g)  The applicant has conducted or is about  to  conduct
24    its business in a fraudulent manner; or
25        (h)  The   applicant  or  any  As  to  the  name  of  any
26    individual listed in the license application, such individual
27    has conducted or is about to conduct any business  on  behalf
28    of  the  applicant  in  a  fraudulent  manner;  or  has  been
29    convicted  of  a  felony  or  any  misdemeanor  of  which  an
30    essential element is fraud; or has been involved in any civil
31    litigation  in  which a judgment has been entered against him
32    or  her  based  on  fraud;  or  has  failed  to  satisfy  any
33    enforceable judgment entered by  the  circuit  court  in  any
 
HB2283 Engrossed            -42-              LRB9201944LDprA
 1    civil  proceedings  against  such  individual;  or  has  been
 2    convicted  of  any  felony  of  which  fraud  is an essential
 3    element; or has been convicted of any theft-related  offense;
 4    or has failed to comply with the requirements of this Act; or
 5    has  demonstrated  a pattern of improperly failing to honor a
 6    contract with a consumer; or
 7        (i)  The applicant  has  ever  had  a  license  involving
 8    cemeteries or funeral homes revoked, suspended, or refused to
 9    be issued in Illinois or elsewhere.
10        If  the  Comptroller  so determines, then he or she shall
11    conduct  a  hearing  to  determine  whether   to   deny   the
12    application.  However,  no application shall be denied unless
13    the applicant has had at least 10 days' notice of  a  hearing
14    on the application and an opportunity to be heard thereon. If
15    the  application  is  denied, the Comptroller shall within 20
16    days thereafter prepare and keep on file in his or her office
17    the transcript of the evidence taken and a written  order  of
18    denial  thereof, which shall contain his or her findings with
19    respect thereto and the reasons supporting  the  denial,  and
20    shall  send by United States mail a copy of the written order
21    of denial to the applicant at the address set  forth  in  the
22    application,  within 5 days after the filing of such order. A
23    review of such decision may be had as provided in Section  20
24    of this Act.
25        The  license  issued  by  the Comptroller shall remain in
26    full force and effect until it is surrendered by the licensee
27    or revoked by the Comptroller as hereinafter provided.
28    (Source: P.A. 88-477.)

29        (760 ILCS 100/11) (from Ch. 21, par. 64.11)
30        Sec. 11.  Issuance and display of  license.    A  license
31    issued  under  this  Act authorizes the cemetery authority to
32    accept care funds for the cemetery identified in the license.
33    If a license application seeks licensure to accept care funds
 
HB2283 Engrossed            -43-              LRB9201944LDprA
 1    on  behalf  of  more  than   one   cemetery   location,   the
 2    Comptroller,  upon approval of the license application, shall
 3    issue to the cemetery authority a separate license  for  each
 4    cemetery  location indicated on the application. Each license
 5    issued by the Comptroller under this Act  is  independent  of
 6    any  other license that may be issued to a cemetery authority
 7    under a single license application.
 8        Every license issued by the Comptroller shall  state  the
 9    number  of  the license and the address at which the business
10    is to be conducted. Such license shall be kept  conspicuously
11    posted in the place of business of the licensee and shall not
12    be transferable or assignable.
13        No  more  than  one place of business shall be maintained
14    under the same license, but the Comptroller  may  issue  more
15    than  one  license  to the same licensee upon compliance with
16    the provisions of this Act governing an original issuance  of
17    a license, for each new license.
18        Whenever  a  licensee  shall  wish  to change the name as
19    originally set forth in his license, he  shall  give  written
20    notice  thereof  to the Comptroller together with the reasons
21    for  the  change  and  if  the  change  is  approved  by  the
22    Comptroller he shall issue a new license.
23        A license issued by the Comptroller shall remain in  full
24    force  and  effect until it is surrendered by the licensee or
25    suspended or revoked by the Comptroller as provided  in  this
26    Act.
27    (Source: P.A. 78-592.)

28        (760 ILCS 100/12) (from Ch. 21, par. 64.12)
29        Sec. 12. Annual reports.   Every licensee shall prepare a
30    written  report  as of the end of the preceding calendar year
31    or fiscal year, as the case may be, showing:
32        (a)  The amount of the principal of the care  funds  held
33    in trust by the trustee of the care funds at the beginning of
 
HB2283 Engrossed            -44-              LRB9201944LDprA
 1    such  year  and  in  addition  thereto all moneys or property
 2    received during such year (1) under and by virtue of the sale
 3    of a lot, grave, crypt or niche; (2) under or  by  virtue  of
 4    the  terms  of  the  contract authorized by the provisions of
 5    Section 3 of this Act; (3) under or by virtue  of  any  gift,
 6    grant,  legacy,  payment  or  other  contribution made either
 7    prior to or subsequent to the effective date of this Act, and
 8    (4) under or by virtue of any  contract  or  conveyance  made
 9    either  prior  to or subsequent to the effective date of this
10    Act;
11        (b)  The securities in which such care funds are invested
12    and the cash on hand as of the date of the report;
13        (c)  The income received from such care funds during  the
14    preceding calendar year, or fiscal year, as the case may be;
15        (d)  The  expenditures  made  from said income during the
16    preceding calendar year, or fiscal year, as the case may  be;
17    and
18        (e)  The  number  of interments made during the preceding
19    calendar year, or fiscal year, as the case may be.
20        Where any of the care funds of a licensee are held by  an
21    independent  trustee,  the report filed by the licensee shall
22    contain a certificate signed by the trustee of the care funds
23    of such  licensee  certifying  to  the  truthfulness  of  the
24    statements  in  the  report  as  to  (1)  the total amount of
25    principal of the care funds held  by  the  trustee,  (2)  the
26    securities in which such care funds are invested and the cash
27    on  hand  as  of  the  date  of the report and (3) the income
28    received from such care funds during the  preceding  calendar
29    year, or fiscal year, as the case may be.
30        Such  report shall be filed by such licensee on or before
31    March 15  of  each  calendar  year,  in  the  office  of  the
32    Comptroller.  If  the  fiscal  year of such licensee is other
33    than on a calendar year basis, then such licensee shall  file
34    the  report  required  by this Section within 2 1/2 months of
 
HB2283 Engrossed            -45-              LRB9201944LDprA
 1    the end of its fiscal year. The Comptroller  shall  for  good
 2    cause  shown  grant an extension for the filing of the annual
 3    report upon  the  written  request  of  the  licensee.   Such
 4    extension  shall  not exceed 60 days.  If a licensee fails to
 5    submit an annual report to the Comptroller  within  the  time
 6    specified  in this Section, the Comptroller shall impose upon
 7    the licensee a penalty of $5  for  each  and  every  day  the
 8    licensee  remains delinquent in submitting the annual report.
 9    The Comptroller may abate all or part of the $5 daily penalty
10    for good cause shown.
11        Such report shall be made under oath and shall be in  the
12    form  furnished  by  the  Comptroller.   Each report shall be
13    accompanied by a check or money order in the amount  of  $10,
14    payable to: Comptroller, State of Illinois.
15        If  any  annual  report shows that the amount of the care
16    funds held in trust at the end of the preceding calendar year
17    or fiscal year, as the case may be, has increased  in  amount
18    over  that  shown  by  the  next  preceding  report, then the
19    fidelity bond theretofore filed shall  be  increased  to  the
20    amount  required  by  Section  9  of this Act. Such increased
21    fidelity bond shall accompany the report and no report  shall
22    be  accepted  by  the  Comptroller unless accompanied by such
23    bond, except where the filing of a bond is excused by Section
24    18 of this Act.
25    (Source: P.A. 88-477; 89-615, eff. 8-9-96.)

26        (760 ILCS 100/13) (from Ch. 21, par. 64.13)
27        Sec. 13. Books, accounts, and records.    Every  licensee
28    and  the trustee of the care funds of every licensee shall be
29    a resident of this State and shall keep in this State and use
30    in its business such books,  accounts  and  records  as  will
31    enable  the Comptroller to determine whether such licensee or
32    trustee is complying with the provisions of this Act and with
33    the rules, regulations and directions made by the Comptroller
 
HB2283 Engrossed            -46-              LRB9201944LDprA
 1    hereunder.  The licensee shall keep the books, accounts,  and
 2    records  at  the location identified in the license issued by
 3    the Comptroller or as otherwise agreed by the Comptroller  in
 4    writing.    The   books,   accounts,  and  records  shall  be
 5    accessible for review upon demand of the Comptroller.
 6    (Source: P.A. 78-592.)

 7        (760 ILCS 100/15b)
 8        Sec. 15b.  Sales; liability of purchaser for shortage.
 9        In the case of a sale of any privately operated  cemetery
10    or  any part thereof or of any related personal property by a
11    cemetery authority to a purchaser or pursuant to  foreclosure
12    proceedings,  except  the sale of burial rights, services, or
13    merchandise to a person for his or  her  personal  or  family
14    burial   or  interment,  the  purchaser  is  liable  for  any
15    shortages existing before or after the sale in the care funds
16    required to be maintained in a trust pursuant to this Act and
17    shall honor all instruments issued under Section 4  for  that
18    cemetery. Any shortages existing in the care funds constitute
19    a prior lien in favor of the trust for the total value of the
20    shortages,  and  notice of such lien shall be provided in all
21    sales instruments.
22        In  the  event  of  a  sale  or  transfer   of   all   or
23    substantially  all  of  the assets of the cemetery authority,
24    the sale or transfer  of  the  controlling  interest  of  the
25    corporate  stock  of  the  cemetery authority if the cemetery
26    authority is a corporation, or the sale or  transfer  of  the
27    controlling of the partnership if the cemetery authority is a
28    partnership,  the  cemetery authority shall, at least 21 days
29    prior to the sale or transfer,  notify  the  Comptroller,  in
30    writing,  of  the  pending  date of sale or transfer so as to
31    permit the Comptroller to audit the books and records of  the
32    cemetery  authority.  The audit must be commenced within 10 5
33    business  days  of  the  receipt  of  the  notification   and
 
HB2283 Engrossed            -47-              LRB9201944LDprA
 1    completed  within  the  21 day notification period unless the
 2    Comptroller  notifies  the  cemetery  authority  during  that
 3    period that there is a basis  for  determining  a  deficiency
 4    which  will require additional time to finalize.  The sale or
 5    transfer may not  be  completed  by  the  cemetery  authority
 6    unless and until:
 7             (a)  The  Comptroller has completed the audit of the
 8        cemetery authority's books and records;
 9             (b)  Any delinquency existing in the care funds  has
10        been  paid  by  the  cemetery  authority, or arrangements
11        satisfactory to the Comptroller have  been  made  by  the
12        cemetery  authority  on  the  sale  or  transfer  for the
13        payment of any delinquency;
14             (c)  The Comptroller  issues  a  new  cemetery  care
15        license   upon   application   of  the  newly  controlled
16        corporation or partnership, which license must be applied
17        for within 30 days of the anticipated date of the sale or
18        transfer, subject to the payment of any delinquencies, if
19        any, as stated in item (b) above.
20        For  purposes  of   this   Section,   a   person,   firm,
21    corporation,  partnership,  or  institution that acquires the
22    cemetery through a real estate foreclosure shall  be  subject
23    to  the  provisions of this Section.  The sale or transfer of
24    the controlling  interest  of  a  cemetery  authority  to  an
25    immediate  family  member  is  not  subject  to  the  license
26    application process required in item (c) of this Section.
27        In  the event of a sale or transfer of any cemetery land,
28    including any portion of cemetery  land  in  which  no  human
29    remains  have  been  interred,  a licensee shall, at least 21
30    days prior to the sale or transfer, notify  the  Comptroller,
31    in writing, of the pending sale or transfer.
32    (Source: P.A. 90-623, eff. 7-10-98.)

33        (760 ILCS 100/24) (from Ch. 21, par. 64.24)
 
HB2283 Engrossed            -48-              LRB9201944LDprA
 1        Sec.  24.   Whoever  intentionally  fails  to deposit the
 2    required amounts into a  trust  provided  for  in  this  Act,
 3    intentionally  and  improperly  withdraws or uses trust funds
 4    for his  or  her  own  benefit,  or  otherwise  intentionally
 5    violates  any  provision  of  this Act (other than except the
 6    provisions of Section 23 and subsections (b), (c),  (d),  and
 7    (e)  of  Section 2a) shall be guilty of a Class 4 felony, and
 8    each day such provisions  are  violated  shall  constitute  a
 9    separate offense.
10        If any person intentionally violates this Act or fails or
11    refuses  to  comply  with any order of the Comptroller or any
12    part of an order that has become final to such person and  is
13    still  in  effect,  the  Comptroller  may,  after  notice and
14    hearing at which it is determined that a  violation  of  this
15    Act or such order has been committed, further order that such
16    person  shall  forfeit and pay to the State of Illinois a sum
17    not to exceed $5,000  for  each  violation.   Such  liability
18    shall  be  enforced  in  an  action  brought  in any court of
19    competent jurisdiction by the Comptroller in the name of  the
20    People of the State of Illinois.
21        In  addition to the other penalties and remedies provided
22    in this Act, the Comptroller may bring a civil action in  the
23    county  of  residence of the licensee or any person accepting
24    care funds to enjoin any violation or threatened violation of
25    this Act.
26        The powers vested in the Comptroller by this Section  are
27    additional to any and all other powers and remedies vested in
28    the Comptroller by law.
29    (Source: P. A. 86-1359.)

30        (760 ILCS 100/26 new)
31        Sec.  26.  Abandoned  or  neglected cemeteries; clean-up.
32    The Comptroller may administer a program for the  purpose  of
33    cleaning  up  abandoned  or  neglected  cemeteries located in
 
HB2283 Engrossed            -49-              LRB9201944LDprA
 1    Illinois.  Administration of this  program  may  include  the
 2    Comptroller's issuance of grants for that purpose to units of
 3    local   government,   school  districts,  and  not-for-profit
 4    associations.

 5        Section 40. The Cemetery Protection  Act  is  amended  by
 6    changing Section 1 as follows:

 7        (765 ILCS 835/1) (from Ch. 21, par. 15)
 8        Sec.  1.  (a)  Any  person  who acts without proper legal
 9    authority and who willfully and knowingly destroys or damages
10    the remains of a deceased human being or who desecrates human
11    remains is guilty of a Class 3 felony.
12        (a-5)  Any person who acts without proper legal authority
13    and who willfully and knowingly removes any  portion  of  the
14    remains  of a deceased human being from a burial ground where
15    skeletal remains are buried or from a  grave,  crypt,  vault,
16    mausoleum,  or other repository of human remains is guilty of
17    a Class 4 felony.
18        (b)  Any person who acts without proper  legal  authority
19    and who willfully and knowingly:
20             (1)  obliterates, vandalizes, or desecrates a burial
21        ground  where  skeletal  remains  are  buried or a grave,
22        crypt, vault, mausoleum, or  other  repository  of  human
23        remains;
24             (2)  obliterates,  vandalizes,  or desecrates a park
25        or  other  area  clearly  designated  to   preserve   and
26        perpetuate  the  memory  of a deceased person or group of
27        persons;
28             (3)  obliterates, vandalizes, or desecrates  plants,
29        trees,  shrubs,  or  flowers  located  upon  or  around a
30        repository for human remains or within a human  graveyard
31        or cemetery; or
32             (4)  obliterates, vandalizes, or desecrates a fence,
 
HB2283 Engrossed            -50-              LRB9201944LDprA
 1        rail,  curb,  or  other  structure  of  a  similar nature
 2        intended for the protection or for the  ornamentation  of
 3        any  tomb,  monument,  gravestone,  or other structure of
 4        like character;
 5    is guilty of a Class A  misdemeanor  if  the  amount  of  the
 6    damage  is  less than $500, a Class 4 felony if the amount of
 7    the damage is at least $500 and less than $10,000, a Class  3
 8    felony  if  the  amount of the damage is at least $10,000 and
 9    less than $100,000, or a Class 2  felony  if  the  damage  is
10    $100,000  or  more  and  shall  provide  restitution  to  the
11    cemetery  authority  or  property owner for the amount of any
12    damage caused.
13        (b-5)  Any person who acts without proper legal authority
14    and who willfully and knowingly defaces, vandalizes, injures,
15    or removes a  gravestone  or  other  memorial,  monument,  or
16    marker  commemorating  a deceased person or group of persons,
17    whether located within or outside of a  recognized  cemetery,
18    memorial  park,  or battlefield is guilty of a Class 4 felony
19    for damaging at least one but no more than 4  gravestones,  a
20    Class  3  felony  for damaging at least 5 but no more than 10
21    gravestones, or a Class 2 felony for damaging  more  than  10
22    gravestones  and  shall  provide  restitution to the cemetery
23    authority or property owner for  the  amount  of  any  damage
24    caused.
25        (b-7)  Any person who acts without proper legal authority
26    and  who  willfully  and knowingly removes with the intent to
27    resell a gravestone or other memorial,  monument,  or  marker
28    commemorating  a deceased person or group of persons, whether
29    located within or outside  a  recognized  cemetery,  memorial
30    park, or battlefield, is guilty of a Class 2 felony.
31        (c)  The  provisions  of  this Section shall not apply to
32    the removal or unavoidable breakage or injury by  a  cemetery
33    authority  of  anything  placed in or upon any portion of its
34    cemetery in violation of any of the rules and regulations  of
 
HB2283 Engrossed            -51-              LRB9201944LDprA
 1    the cemetery authority, nor to the removal of anything placed
 2    in  the  cemetery  by  or  with  the  consent of the cemetery
 3    authority that in the judgment of the cemetery authority  has
 4    become wrecked, unsightly, or dilapidated.
 5        (d)  If   an  unemancipated  minor  is  found  guilty  of
 6    violating any of the provisions of  subsection  (b)  of  this
 7    Section  and is unable to provide restitution to the cemetery
 8    authority or property owner, the parents or  legal  guardians
 9    of  that  minor  shall  provide  restitution  to the cemetery
10    authority or property owner for  the  amount  of  any  damage
11    caused,  up  to  the  total amount allowed under the Parental
12    Responsibility Law.
13        (e)  Any person who shall hunt, shoot  or  discharge  any
14    gun,  pistol  or  other  missile,  within  the  limits of any
15    cemetery, or shall cause any shot or missile to be discharged
16    into or over any portion thereof, or shall violate any of the
17    rules made and established by the board of directors of  such
18    cemetery, for the protection or government thereof, is guilty
19    of a Class C misdemeanor.
20        (f)  Any person who knowingly enters or knowingly remains
21    upon  the  premises  of  a public or private cemetery without
22    authorization during hours that the  cemetery  is  posted  as
23    closed to the public is guilty of a Class A misdemeanor.
24        (g)  All  fines when recovered, shall be paid over by the
25    court  or  officer  receiving  the  same  to   the   cemetery
26    association  and  be applied, as far as possible in repairing
27    the injury,  if  any,  caused  by  such  offense.   Provided,
28    nothing  contained  in  this  Act shall deprive such cemetery
29    association, or  the  owner  of  any  lot  or  monument  from
30    maintaining  an  action for the recovery of damages caused by
31    any injury caused by a violation of the  provisions  of  this
32    Act, or of the rules established by the board of directors of
33    such  cemetery  association. Nothing in this Section shall be
34    construed to prohibit the discharge of firearms  loaded  with
 
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 1    blank  ammunition  as  part  of  any  funeral,  any  memorial
 2    observance or any other patriotic or military ceremony.
 3    (Source: P.A. 89-36, eff. 1-1-96.)

 4        Section  45.  The Illinois Pre-Need Cemetery Sales Act is
 5    amended by changing Sections 1, 4, 5, 6, 7, 8, 8a, 9, 12, 14,
 6    16, 19, 20, 22, and 23 and adding Section 27.1 as follows:

 7        (815 ILCS 390/1) (from Ch. 21, par. 201)
 8        Sec. 1.  Purpose.  It is  the  purpose  of  this  Act  to
 9    assure  adequate  protection  for  those who contract through
10    pre-need contracts  for  the  purchase  of  certain  cemetery
11    merchandise  and cemetery services and undeveloped interment,
12    entombment or inurnment space,  when  the  seller  may  delay
13    delivery  or performance more than 120 days following initial
14    payment on the account.
15    (Source: P.A. 85-805.)

16        (815 ILCS 390/4) (from Ch. 21, par. 204)
17        Sec. 4.  Definitions.  As used in this Act, the following
18    terms shall have the meaning specified:
19        (A) A.  "Pre-need sales  contract"  or  "Pre-need  sales"
20    means  any  agreement or contract or series or combination of
21    agreements or contracts which have for a purpose the sale  of
22    cemetery   merchandise,   cemetery  services  or  undeveloped
23    interment, entombment or inurnment spaces where the terms  of
24    such  sale  require  payment  or  payments  to  be  made at a
25    currently  determinable  time  and  where  the   merchandise,
26    services or completed spaces are to be provided more than 120
27    days  following  the  initial  payment  on  the  account.  An
28    agreement  or  contract  for  a memorial, marker, or monument
29    shall  not  be  deemed  a  "pre-need  sales  contract"  or  a
30    "pre-need sale" if  the  memorial,  marker,  or  monument  is
31    delivered  within  180  days following initial payment on the
 
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 1    account and work thereon commences a  reasonably  short  time
 2    after initial payment on the account.
 3        (B) B.  "Delivery" occurs when:
 4             (1)  Physical   possession  of  the  merchandise  is
 5        transferred or  the  easement  for  burial  rights  in  a
 6        completed space is executed, delivered and transferred to
 7        the buyer; or
 8             (2)  Following  authorization by a purchaser under a
 9        pre-need sales contract, title  to  the  merchandise  has
10        been  transferred  to  the  buyer and the merchandise has
11        been paid for and is in the possession of the seller  who
12        has  placed it, until needed, at the site of its ultimate
13        use; or
14             (3)  (A)  Following  authorization  by  a  purchaser
15        under a pre-need sales contract, the merchandise has been
16        permanently identified with the name of the buyer or  the
17        beneficiary  and  delivered  to  a  licensed  and  bonded
18        warehouse  and  both  title  to  the  merchandise  and  a
19        warehouse receipt have been delivered to the purchaser or
20        beneficiary  and a copy of the warehouse receipt has been
21        delivered to the licensee for  retention  in  its  files;
22        except  that  in the case of outer burial containers, the
23        use of a licensed and bonded warehouse as  set  forth  in
24        this paragraph shall not constitute delivery for purposes
25        of  this Act.  Nothing herein shall prevent a seller from
26        perfecting a security interest  in  accordance  with  the
27        Uniform  Commercial Code on any merchandise covered under
28        this Act.
29             (B)  All  warehouse  facilities  to  which   sellers
30        deliver merchandise pursuant to this Act shall:
31                  (i)  be either located in the State of Illinois
32             or  qualify  as  a  foreign  warehouse  facility  as
33             defined herein;
34                  (ii)  submit  to  the Comptroller not less than
 
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 1             annually, by March 1 of each year, a report  of  all
 2             cemetery  merchandise  stored by each licensee under
 3             this Act which is in storage  on  the  date  of  the
 4             report;
 5                  (iii)  permit  the  Comptroller or his designee
 6             at any time to examine  stored  merchandise  and  to
 7             examine any documents pertaining thereto;
 8                  (iv)  submit   evidence   satisfactory  to  the
 9             Comptroller that  all  merchandise  stored  by  said
10             warehouse  for  licensees  under this Act is insured
11             for casualty or other loss  normally  assumed  by  a
12             bailee for hire;
13                  (v)  demonstrate  to  the  Comptroller that the
14             warehouse  has  procured  and   is   maintaining   a
15             performance  bond  in  the  form, content and amount
16             sufficient  to  unconditionally  guarantee  to   the
17             purchaser  or beneficiary the prompt shipment of the
18             cemetery merchandise.
19        (C)  "Cemetery  merchandise"  means  items  of   personal
20    property  normally  sold  by a cemetery authority not covered
21    under the Illinois Funeral or Burial Funds Act, including but
22    not limited to:
23             (1)  memorials,
24             (2)  markers,
25             (3)  monuments,
26             (4)  foundations, and
27             (5)  outer burial containers.
28        (D)  "Undeveloped  interment,  entombment  or   inurnment
29    spaces"  or  "undeveloped  spaces" means any space to be used
30    for the reception of human remains that is not completely and
31    totally constructed at the time of initial  payment  therefor
32    in a:
33             (1)  lawn crypt,
34             (2)  mausoleum,
 
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 1             (3)  garden crypt,
 2             (4)  columbarium, or
 3             (5)  cemetery section.
 4        (E)  "Cemetery services" means those services customarily
 5    performed  by  cemetery  or crematory personnel in connection
 6    with the interment, entombment, inurnment or cremation  of  a
 7    dead human body.
 8        (F)  "Cemetery   section"  means  a  grouping  of  spaces
 9    intended to be developed simultaneously for  the  purpose  of
10    interring human remains.
11        (G)  "Columbarium"  means  an  arrangement of niches that
12    may be an entire building,  a  complete  room,  a  series  of
13    special indoor alcoves, a bank along a corridor or part of an
14    outdoor  garden  setting  that  is  constructed  of permanent
15    material such as bronze, marble, brick, stone or concrete for
16    the inurnment of human remains.
17        (H)  "Lawn crypt" means  a  permanent  underground  crypt
18    usually   constructed   of  reinforced  concrete  or  similar
19    material installed  in  multiple  units  for  the  entombment
20    interment of human remains.
21        (I)  "Mausoleum"  or  "garden  crypt" means a grouping of
22    spaces constructed of reinforced concrete or similar material
23    constructed or assembled above the ground for entombing human
24    remains.
25        (J)  "Memorials, markers and monuments" means the  object
26    usually  comprised of a permanent material such as granite or
27    bronze used to identify and memorialize the deceased.
28        (K)  "Foundations" means those items  used  to  affix  or
29    support  a  memorial  or monument to the ground in connection
30    with the installation of a memorial, marker or monument.
31        (L)  "Person"   means   an    individual,    corporation,
32    partnership,   joint   venture,   business  trust,  voluntary
33    organization or any other form of entity.
34        (M)  "Seller" means any person selling  or  offering  for
 
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 1    sale  cemetery  merchandise, cemetery services or undeveloped
 2    interment, entombment, or inurnment spaces in accordance with
 3    a pre-need sales contract on a pre-need basis.
 4        (N)  "Religious  cemetery"  means   a   cemetery   owned,
 5    operated,  controlled  or  managed  by any recognized church,
 6    religious society, association  or  denomination  or  by  any
 7    cemetery  authority  or  any  corporation  administering,  or
 8    through  which  is  administered,  the  temporalities  of any
 9    recognized  church,   religious   society,   association   or
10    denomination.
11        (O)  "Municipal   cemetery"   means   a  cemetery  owned,
12    operated,  controlled  or  managed  by  any  city,   village,
13    incorporated   town,  township,  county  or  other  municipal
14    corporation,  political   subdivision,   or   instrumentality
15    thereof  authorized  by  law  to  own,  operate  or  manage a
16    cemetery.
17        (O-1)  "Outer burial container" means a container made of
18    concrete, steel, wood, fiberglass, or similar material,  used
19    solely   at   the  interment  site,  and  designed  and  used
20    exclusively to surround or enclose a separate casket  and  to
21    support  the  earth  above  such  casket, commonly known as a
22    burial vault, grave box, or grave liner, but not including  a
23    lawn crypt.
24        (P)  "Sales  price"  means  the  gross  amount  paid by a
25    purchaser  on  a  pre-need  sales   contract   for   cemetery
26    merchandise,  cemetery  services  or  undeveloped  interment,
27    entombment or inurnment spaces, excluding sales taxes, credit
28    life  insurance  premiums,  finance charges and Cemetery Care
29    Act contributions.
30        (Q)  (Blank).
31        (R) "Provider" means a  person  who  is  responsible  for
32    performing   cemetery   services   or   furnishing   cemetery
33    merchandise,   interment   spaces,   entombment   spaces,  or
34    inurnment spaces under a pre-need sales contract.
 
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 1        (S)  "Purchaser"  or  "buyer"  means   the   person   who
 2    originally  paid  the  money  under  or  in connection with a
 3    pre-need sales contract.
 4        (T) "Parent company" means a corporation owning more than
 5    12 cemeteries or funeral homes in more than one state.
 6        (U)  "Foreign  warehouse  facility"  means  a   warehouse
 7    facility  now  or hereafter located in any state or territory
 8    of the United States, including  the  District  of  Columbia,
 9    other than the State of Illinois.
10        A  foreign  warehouse  facility  shall  be deemed to have
11    appointed the Comptroller to be its true and lawful  attorney
12    upon  whom  may  be served all legal process in any action or
13    proceeding against it relating to or growing out of this Act,
14    and the acceptance of  the  delivery  of  stored  merchandise
15    under  this  Act shall be signification of its agreement that
16    any such process against it which is so served, shall  be  of
17    the  same  legal  force and validity as though served upon it
18    personally.
19        Service of such process shall be made  by  delivering  to
20    and  leaving with the Comptroller, or any agent having charge
21    of  the  Comptroller's  Department  of  Cemetery  and  Burial
22    Trusts, a copy of such process  and  such  service  shall  be
23    sufficient  service  upon  such foreign warehouse facility if
24    notice of such service and a copy of the process are,  within
25    10  days thereafter, sent by registered mail by the plaintiff
26    to the foreign warehouse facility at its principal office and
27    the plaintiff's affidavit of compliance herewith is  appended
28    to  the  summons.  The Comptroller shall keep a record of all
29    process served upon him under this Section and  shall  record
30    therein the time of such service.
31    (Source:  P.A.  91-7,  eff.  1-1-2000;  91-357, eff. 7-29-99;
32    revised 8-30-99.)

33        (815 ILCS 390/5) (from Ch. 21, par. 205)
 
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 1        Sec. 5.  It is unlawful for any seller person directly or
 2    indirectly doing business within this State, through an agent
 3    or otherwise to engage in pre-need sales  without  a  license
 4    issued by the Comptroller.
 5    (Source: P.A. 84-239.)

 6        (815 ILCS 390/6) (from Ch. 21, par. 206)
 7        Sec. 6.  License application.
 8        (a)  An  application  for  a  license  shall  be  made in
 9    writing to the Comptroller on forms prescribed by him or her,
10    signed by the applicant  under  oath  verified  by  a  notary
11    public,  and  shall  be  accompanied  by a non-returnable $25
12    application fee.  The Comptroller may  prescribe  abbreviated
13    application  forms  for  persons  holding a license under the
14    Cemetery  Care   Act.    Applications   (except   abbreviated
15    applications)   must   include   at   least   the   following
16    information:
17             (1)  The  full  name and address, both residence and
18        business,  of  the  applicant  if  the  applicant  is  an
19        individual;  of  every   member   if   applicant   is   a
20        partnership; of every member of the Board of Directors if
21        applicant  is  an  association;  and  of  every  officer,
22        director  and shareholder holding more than 10% 5% of the
23        corporate stock if applicant is a corporation;
24             (2)  A detailed statement of applicant's assets  and
25        liabilities;
26             (2.1)  The  name  and  address  of  the  applicant's
27        principal place of business at which the books, accounts,
28        and   records   are  available  for  examination  by  the
29        Comptroller as required by this Act;
30             (2.2)  The  name  and  address  of  the  applicant's
31        branch  locations  at  which  pre-need  sales   will   be
32        conducted  and  which will operate under the same license
33        number as the applicant's principal place of business;
 
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 1             (3)  For each individual listed under (1)  above,  a
 2        detailed   statement   of   the   individual's   business
 3        experience  for  the  10  years immediately preceding the
 4        application; any present or prior connection between  the
 5        individual  and  any  other  person  engaged  in pre-need
 6        sales; any felony or misdemeanor  convictions  for  which
 7        fraud was an essential element; any charges or complaints
 8        lodged  against  the  individual  for  which fraud was an
 9        essential element and which resulted in civil or criminal
10        litigation; any failure of the individual to  satisfy  an
11        enforceable  judgment  entered  against  him or her based
12        upon fraud; and any other information  requested  by  the
13        Comptroller  relating  to  the past business practices of
14        the individual.  Since the information required  by  this
15        paragraph  may  be  confidential  or  contain proprietary
16        information, this information shall not be  available  to
17        other  licensees  or the general public and shall be used
18        only for  the  lawful  purposes  of  the  Comptroller  in
19        enforcing this Act;
20             (4)  The name of the trustee and, if applicable, the
21        names of the advisors to the trustee, including a copy of
22        the  proposed trust agreement under which the trust funds
23        are to be held as required by this Act;
24             (5)  Where applicable, the  name  of  the  corporate
25        surety  company  providing  the  performance bond for the
26        construction of undeveloped spaces  and  a  copy  of  the
27        bond; and
28             (6)  Such  other  information as the Comptroller may
29        reasonably   require   in   order   to   determine    the
30        qualification  of the applicant to be licensed under this
31        Act.
32        (b)  Applications for license shall be accompanied  by  a
33    fidelity  bond  executed  by  the  applicant  and  a security
34    company authorized to do  business  in  this  State  in  such
 
HB2283 Engrossed            -60-              LRB9201944LDprA
 1    amount,   not  exceeding  $10,000,  as  the  Comptroller  may
 2    require.  The Comptroller may require  additional  bond  from
 3    time  to  time  in  amounts  equal to one-tenth of such trust
 4    funds but not to exceed $100,000, which bond shall run to the
 5    Comptroller for the use and benefit of the  beneficiaries  of
 6    such trust funds.  Such licensee may by written permit of the
 7    Comptroller be authorized to operate without additional bond,
 8    except   such  fidelity  bond  as  may  be  required  by  the
 9    Comptroller for the protection of the licensee  against  loss
10    by default by any of its employees engaged in the handling of
11    trust funds.
12        (c)  Any application not acted upon within 90 days may be
13    deemed denied.
14    (Source: P.A. 88-477.)

15        (815 ILCS 390/7) (from Ch. 21, par. 207)
16        Sec.  7.   The  Comptroller  may  refuse  to issue or may
17    suspend or revoke a license on any of the following grounds:
18        (a)  The   applicant   or   licensee   has    made    any
19    misrepresentations  or  false  statements  or  concealed  any
20    material fact;
21        (b)  The applicant or licensee is insolvent;
22        (c)  The  applicant  or  licensee  has  been  engaged  in
23    business practices that work a fraud;
24        (d)  The  applicant  or  licensee  has  refused  to  give
25    pertinent data to the Comptroller;
26        (e)  The  applicant or licensee has failed to satisfy any
27    enforceable judgment or  decree  rendered  by  any  court  of
28    competent jurisdiction against the applicant;
29        (f)  The  applicant or licensee has conducted or is about
30    to conduct business in a fraudulent manner;
31        (g)  The trustee advisors or the trust agreement  is  not
32    in  compliance  with State or federal law satisfactory to the
33    Comptroller;
 
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 1        (h)  The   pre-construction    performance    bond,    if
 2    applicable, is not satisfactory to the Comptroller;
 3        (i)  The   fidelity  bond  is  not  satisfactory  to  the
 4    Comptroller;
 5        (j)  As  to  any  individual  listed   in   the   license
 6    application  as  required  pursuant  to  Section 6, that such
 7    individual has conducted or is about to conduct any  business
 8    on  behalf of the applicant in a fraudulent manner,; has been
 9    convicted of any felony or misdemeanor an  essential  element
10    of which is fraud, has had a judgment rendered against him or
11    her  based on fraud in any civil litigation, or has failed to
12    satisfy any enforceable judgment or decree  rendered  against
13    him  by  any  court  of  competent  jurisdiction, or has been
14    convicted of any felony or any theft-related offense;
15        (k)  The applicant or licensee has  failed  to  make  the
16    annual  report required by this Act or to comply with a final
17    order, decision, or finding of the Comptroller made  pursuant
18    to this Act;
19        (l)  The  applicant  or  licensee,  including any member,
20    officer, or director thereof if the applicant or licensee  is
21    a  firm,  partnership,  association,  or  corporation and any
22    shareholder holding more than 10% of the corporate stock, has
23    violated any provision of this Act or any regulation or order
24    made by the Comptroller under this Act; or
25        (m)  The Comptroller finds any fact or condition existing
26    which, if  it  had  existed  at  the  time  of  the  original
27    application   for  such  license  would  have  warranted  the
28    Comptroller in refusing the issuance of the license.
29    (Source: P.A. 85-842.)

30        (815 ILCS 390/8) (from Ch. 21, par. 208)
31        Sec. 8.  (a) Every  license  issued  by  the  Comptroller
32    shall  state the number of the license, the business name and
33    address of the licensee's principal place of  business,  each
 
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 1    branch  location  also  operating  under the license, and the
 2    licensee's parent company, if  any.  licensee  at  which  the
 3    business  is  to  be  conducted,  and   The  license shall be
 4    conspicuously posted in each the place of business  operating
 5    under  the license.  No more than one place of business shall
 6    be maintained under the same license,  but   The  Comptroller
 7    may issue additional licenses as may be necessary for license
 8    branch  locations  more  than  one license to a licensee upon
 9    compliance with the  provisions  of  this  Act  governing  an
10    original issuance of a license for each new license.
11        (b)  Individual  salespersons  representing employed by a
12    licensee shall not be required to obtain  licenses  in  their
13    individual  capacities  but  must  acknowledge, by affidavit,
14    that they have been provided a copy of  and  have  read  this
15    Act.   The  licensee  must retain copies of the affidavits of
16    its salespersons for its records and must make the affidavits
17    available to the Comptroller for examination upon request.
18        (c)  The licensee shall be responsible for the activities
19    of  any  person  representing  the  licensee  in  selling  or
20    offering a pre-need contract  for  sale  all  individuals  or
21    sales organizations selling under contract with, as agents or
22    on behalf of the licensee.
23        (d)  Any  sales  company  or  other person not selling on
24    behalf of a licensee shall be required to obtain his  or  her
25    its own license.
26        (e)  Any  person  engaged  in  pre-need sales, as defined
27    herein, prior to the effective date of this Act may  continue
28    operations  until  the application for license under this Act
29    is denied; provided that such person shall  make  application
30    for  a  license  within  60 days of the date that application
31    forms are made available by the Comptroller.
32        (f)  No  license  shall  be  transferable  or  assignable
33    without the express written consent of  the  Comptroller.   A
34    transfer  of  more  than 50% of the ownership of any business
 
HB2283 Engrossed            -63-              LRB9201944LDprA
 1    licensed  hereunder  shall  be  deemed  to  be  an  attempted
 2    assignment of the license originally issued to  the  licensee
 3    for which consent of the Comptroller shall be required.
 4        (g)  Every license issued hereunder shall remain in force
 5    until  the same has been suspended, surrendered or revoked in
 6    accordance with this  Act,  but  the  Comptroller,  upon  the
 7    request  of  an  interested  person or on his own motion, may
 8    issue new licenses to a licensee whose  license  or  licenses
 9    have  been  revoked,  if  no  factor or condition then exists
10    which  would  have  warranted  the  Comptroller  in  refusing
11    originally the issuance of such license.
12    (Source: P.A. 84-239.)

13        (815 ILCS 390/8a)
14        Sec. 8a.  Investigation of  unlawful  practices.   If  it
15    appears  to  the Comptroller that a person has engaged in, is
16    engaging in, or  is  about  to  engage  in  any  practice  in
17    violation  of  declared  to  be  unlawful  by  this  Act, the
18    Comptroller may:
19             (1)  require that person to file on  such  terms  as
20        the  Comptroller  prescribes  a  statement  or  report in
21        writing,  under  oath  or   otherwise,   containing   all
22        information  the  Comptroller  may  consider necessary to
23        ascertain whether a licensee is in compliance  with  this
24        Act,  or  whether  an  unlicensed  person  is engaging in
25        activities for which a license is required;
26             (2)  examine under oath  any  person  in  connection
27        with  the  books  and  records pertaining to or having an
28        impact upon the trust funds  required  to  be  maintained
29        pursuant to this Act;
30             (3)  examine  any books and records of the licensee,
31        trustee, or investment advisor that the  Comptroller  may
32        consider necessary to ascertain compliance with this Act;
33        and
 
HB2283 Engrossed            -64-              LRB9201944LDprA
 1             (4)  require the production of a copy of any record,
 2        book,  document,  account,  or  paper that is produced in
 3        accordance with this Act and retain  it  in  his  or  her
 4        possession  until  the  completion  of all proceedings in
 5        connection with which it is produced.
 6    (Source: P.A. 89-615, eff. 8-9-96.)

 7        (815 ILCS 390/9) (from Ch. 21, par. 209)
 8        Sec.  9.   The  Comptroller  may,  upon  his  own  motion
 9    investigate the actions of any person providing, selling,  or
10    offering  pre-need sales contracts or of any applicant or any
11    person or persons holding or claiming to hold a license under
12    this Act.  The Comptroller shall make such  an  investigation
13    on  receipt  of  the verified written complaint of any person
14    setting  forth  facts  which,  if  proved,  would  constitute
15    grounds for refusal, suspension, or revocation of  a  license
16    with  respect  to  which  grounds for revocation may occur or
17    exist, or if he shall find that such grounds  for  revocation
18    are of general application to all offices or to more than one
19    office  operated  by  such licensee, he may revoke all of the
20    licenses issued to such licensee or such number of  licensees
21    to  which grounds apply, as the case may be.  Before refusing
22    to issue, and before suspension or revocation of  a  license,
23    the Comptroller shall hold a hearing to determine whether the
24    applicant  or  licensee,  hereafter called the respondent, is
25    entitled to hold such a license.  At least 10 days  prior  to
26    the  date  set for such hearing, the Comptroller shall notify
27    the respondent in writing  that  on  the  date  designated  a
28    hearing  will  be  held  to  determine  his eligibility for a
29    license and that he may  appear  in  person  or  by  counsel.
30    Such   written   notice  may  be  served  on  the  respondent
31    personally, or by registered or certified mail  sent  to  the
32    respondent's   business   address  as  shown  in  his  latest
33    notification to the Comptroller and shall include  sufficient
 
HB2283 Engrossed            -65-              LRB9201944LDprA
 1    information to inform the respondent of the general nature of
 2    the  charge.   At  the  hearing,  both the respondent and the
 3    complainant shall be accorded ample opportunity to present in
 4    person or by counsel such statements, testimony, evidence and
 5    argument as may be pertinent to the charges or to any defense
 6    thereto.   The  Comptroller  may  reasonably  continue   such
 7    hearing from time to time.
 8        The  Comptroller  may  subpoena  any person or persons in
 9    this State and take testimony orally,  by  deposition  or  by
10    exhibit,  in  the  same  manner  and  with  the same fees and
11    mileage as prescribed in judicial proceedings in civil cases.
12        Any authorized agent of the  Comptroller  may  administer
13    oaths  to  witnesses  at any hearing which the Comptroller is
14    authorized to conduct.
15        The  Comptroller,  at  his  expense,  shall   provide   a
16    certified  shorthand  reporter to take down the testimony and
17    preserve a record of all proceedings at the  hearing  of  any
18    case involving the refusal to issue a license, the suspension
19    or  revocation  of  a  license,  the imposition of a monetary
20    penalty, or the referral of a case for criminal  prosecution.
21    The record of any such proceeding shall consist of the notice
22    of  hearing,  complaint, all other documents in the nature of
23    pleadings and written motions filed in the  proceedings,  the
24    transcript  of  testimony  and  the  report and orders of the
25    Comptroller.  Copies of the transcript of such record may  be
26    purchased  from the certified shorthand reporter who prepared
27    the record or from the Comptroller.
28    (Source: P.A. 84-239.)

29        (815 ILCS 390/12) (from Ch. 21, par. 212)
30        Sec. 12.  License revocation or suspension.
31        (a)  The Comptroller may, upon determination that grounds
32    exist for the revocation or suspension of  a  license  issued
33    under  this  Act,  revoke  or  suspend,  if  appropriate, the
 
HB2283 Engrossed            -66-              LRB9201944LDprA
 1    license issued to a licensee or to a particular branch office
 2    location with respect to which the grounds for revocation  or
 3    suspension may occur or exist.
 4        (b)  Upon  the  revocation  or suspension of any license,
 5    the licensee  shall  immediately  surrender  the  license  or
 6    licenses  and  any branch office licenses to the Comptroller.
 7    If the licensee fails to do so, the Comptroller has the right
 8    to seize the license or licenses same.
 9    (Source: P.A. 84-239.)

10        (815 ILCS 390/14) (from Ch. 21, par. 214)
11        Sec. 14.  Contract required.
12        (a)  It is unlawful for any person seller doing  business
13    within  this  State to accept sales proceeds, either directly
14    or indirectly, by any means, unless the seller enters into  a
15    pre-need  sales  contract  with the purchaser which meets the
16    following requirements:
17             (1)  A written sales contract shall be  executed  in
18        at  least  11  point  type in duplicate for each pre-need
19        sale made by a licensee, and a signed copy given  to  the
20        purchaser.  Each completed contract shall be numbered and
21        shall contain: (i) the name and address of the purchaser,
22        the principal office of  the  licensee,  and  the  parent
23        company  of  the licensee;  (ii) and the seller, the name
24        of the person, if known, who is to receive  the  cemetery
25        merchandise,   cemetery   services   or   the   completed
26        interment,  entombment  or  inurnment  spaces  under  the
27        contract;    and   (iii)   specific   identification   of
28        specifically  identify  such  merchandise,  services   or
29        spaces  to be provided, if a specific space or spaces are
30        contracted  for,  and  the  price  of  the   merchandise,
31        services, or space or spaces.
32             (2)  In  addition,  such  contracts  must  contain a
33        provision in distinguishing typeface as follows:
 
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 1             "Notwithstanding anything in this  contract  to  the
 2        contrary,  you  are  afforded  certain specific rights of
 3        cancellation and refund under Sections 18 and 19  of  the
 4        Illinois Pre-Need Cemetery Sales Act, enacted by the 84th
 5        General Assembly of the State of Illinois".
 6             (3)  All pre-need sales contracts shall be sold on a
 7        guaranteed price basis. At the time of performance of the
 8        service  or delivery of the merchandise, the seller shall
 9        be prohibited from assessing the purchaser or  his  heirs
10        or   assigns   or   duly  authorized  representative  any
11        additional  charges  for  the  specific  merchandise  and
12        services listed on the pre-need sales contract.
13             (4)  Each contract shall clearly disclose  that  the
14        price  of  the  merchandise or services is guaranteed and
15        shall contain the following statement in  12  point  bold
16        type:
17             "THIS   CONTRACT   GUARANTEES  THE  BENEFICIARY  THE
18        SPECIFIC   GOODS,   AND   SERVICES,   INTERMENT   SPACES,
19        ENTOMBMENT SPACES, AND INURNMENT SPACES  CONTRACTED  FOR.
20        NO  ADDITIONAL  CHARGES  MAY  BE REQUIRED. FOR DESIGNATED
21        GOODS, AND SERVICES, AND SPACES.  ADDITIONAL CHARGES  MAY
22        BE INCURRED FOR UNEXPECTED EXPENSES."
23             (5)  The  pre-need sales contract shall provide that
24        if   the   particular   cemetery    services,    cemetery
25        merchandise, or spaces specified in the pre-need contract
26        are unavailable at the time of delivery, the seller shall
27        be  required to furnish services, merchandise, and spaces
28        similar in  style  and  at  least  equal  in  quality  of
29        material and workmanship.
30             (6)  The  pre-need  contract shall also disclose any
31        specific penalties to be incurred by the purchaser  as  a
32        result  of  failure to make payments; and penalties to be
33        incurred or moneys or refunds to be received as a  result
34        of cancellation of the contract.
 
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 1             (7)  The pre-need contract shall disclose the nature
 2        of the relationship between the provider and the seller.
 3             (8)  Each  pre-need  contract  that  authorizes  the
 4        delivery of cemetery merchandise to a licensed and bonded
 5        warehouse shall provide that prior to or upon delivery of
 6        the  merchandise  to  the  warehouse  the  title  to  the
 7        merchandise and a warehouse receipt shall be delivered to
 8        the  purchaser  or  beneficiary.   The  pre-need contract
 9        shall contain the following statement in  12  point  bold
10        type:
11        "THIS  CONTRACT AUTHORIZES THE DELIVERY OF MERCHANDISE TO
12        A LICENSED  AND  BONDED  WAREHOUSE  FOR  STORAGE  OF  THE
13        MERCHANDISE  UNTIL  THE  MERCHANDISE  IS  NEEDED  BY  THE
14        BENEFICIARY.  DELIVERY  OF THE MERCHANDISE IN THIS MANNER
15        MAY  PRECLUDE  REFUND   OF   SALE   PROCEEDS   THAT   ARE
16        ATTRIBUTABLE TO THE DELIVERED MERCHANDISE."
17             The  purchaser  shall  initial  the statement at the
18        time of entry into the pre-need contract.
19             (9)  Each  pre-need  contract  that  authorizes  the
20        placement of cemetery merchandise  at  the  site  of  its
21        ultimate  use  prior  to the time that the merchandise is
22        needed by the beneficiary  shall  contain  the  following
23        statement in 12 point bold type:
24        "THIS CONTRACT AUTHORIZES THE PLACEMENT OF MERCHANDISE AT
25        THE  SITE  OF ITS ULTIMATE USE PRIOR TO THE TIME THAT THE
26        MERCHANDISE IS NEEDED BY THE BENEFICIARY. DELIVERY OF THE
27        MERCHANDISE IN THIS MANNER MAY PRECLUDE  REFUND  OF  SALE
28        PROCEEDS   THAT   ARE   ATTRIBUTABLE   TO  THE  DELIVERED
29        MERCHANDISE."
30             The purchaser shall initial  the  statement  at  the
31        time of entry into the pre-need contract.
32        (b)  Every  pre-need  sales contract must be in writing.,
33    and no pre-need sales contract form may be used unless it has
34    previously been filed with the Comptroller.  The  Comptroller
 
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 1    shall  review  all  pre-need  sales  contract forms and, upon
 2    written notification to the seller, shall prohibit the use of
 3    contract forms that do not meet the requirements of this Act.
 4    Any use or attempted use of any oral pre-need sales  contract
 5    or  any  written  pre-need sales contract in a form not filed
 6    with the Comptroller or in a form  that  does  not  meet  the
 7    requirements  of this Act shall be deemed a violation of this
 8    Act. The Comptroller may by rule  develop  a  model  pre-need
 9    sales contract form that meets the requirements of this Act.
10        (c)  To the extent the Rule is applicable, every pre-need
11    sales  contract  is  subject  to the Federal Trade Commission
12    Rule concerning the Cooling-Off Period for Door-to-Door Sales
13    (16 CFR Part 429).
14        (d)  No pre-need sales contract may be  entered  into  in
15    this  State  unless  there  is  a  provider  for the cemetery
16    merchandise, cemetery services,  and  undeveloped  interment,
17    inurnment,  and  entombment spaces being sold.  If the seller
18    is not the provider, then the  seller  must  have  a  binding
19    agreement  with  a provider, and the identity of the provider
20    and the nature of the agreement between the  seller  and  the
21    provider  must be disclosed in the pre-need sales contract at
22    the time of sale and before the receipt of any sale proceeds.
23    The failure to disclose the identity  of  the  provider,  the
24    nature  of the agreement between the seller and the provider,
25    or any changes thereto to the purchaser and  beneficiary,  or
26    the  failure to make the disclosures required by this Section
27    constitutes an intentional violation of this Act.
28        (e)  No pre-need contract may be  entered  into  in  this
29    State  unless  it  is  accompanied  by  a  funding  mechanism
30    permitted under this Act and unless the seller is licensed by
31    the  Comptroller as provided in this Act. Nothing in this Act
32    is intended to  relieve  providers  or  sellers  of  pre-need
33    contracts  from  being  licensed under any other Act required
34    for their profession or business or from being subject to the
 
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 1    rules promulgated to regulate their profession  or  business,
 2    including rules on solicitation and advertisement.
 3        (f)  No  pre-need  contract  may  be entered into in this
 4    State unless the seller explains to the purchaser  the  terms
 5    of  the  pre-need contract prior to the purchaser signing and
 6    the purchaser initials a statement in the contract confirming
 7    that the seller has explained the terms of the contract prior
 8    to the purchaser signing.
 9        (g)  The State Comptroller shall develop  a  booklet  for
10    consumers in plain English describing the scope, application,
11    and  consumer  protections  of this Act. After the booklet is
12    developed, no pre-need contract may be  sold  in  this  State
13    unless  the  seller distributes to the purchaser prior to the
14    sale a booklet developed or approved for  use  by  the  State
15    Comptroller.
16    (Source: P.A. 91-7, eff. 1-1-2000.)

17        (815 ILCS 390/16) (from Ch. 21, par. 216)
18        Sec. 16.  Trust funds; disbursements.
19        (a)  A trustee shall make no disbursements from the trust
20    fund except as provided in this Act.
21        (b)  A  trustee  shall, with respect to the investment of
22    such trust funds, exercise the judgment and  care  under  the
23    circumstances  then  prevailing  which  persons  of prudence,
24    discretion and intelligence exercise  in  the  management  of
25    their  own  affairs,  not  in  regard  to speculation, but in
26    regard  to  the  permanent  disposition   of   their   funds,
27    considering  the  probable  income  as  well  as the probable
28    safety of their capital.
29        The seller shall act as trustee of all  amounts  received
30    for  cemetery  merchandise,  services,  or undeveloped spaces
31    until those amounts have been deposited into the trust  fund.
32    The  seller  may continue to be the trustee of up to $500,000
33    that has been deposited into the trust fund, but  the  seller
 
HB2283 Engrossed            -71-              LRB9201944LDprA
 1    must  retain  an  independent trustee for any amount of trust
 2    funds in excess of $500,000.  A seller holding trust funds in
 3    excess of $500,000 on the effective date of  this  amendatory
 4    Act  of  1996  shall  have 36 months to retain an independent
 5    trustee for the amounts over $500,000; any other seller  must
 6    retain  an  independent trustee for its trust funds in excess
 7    of $500,000 as soon as may be  practical.    The  Comptroller
 8    shall  have the right to disqualify the trustee upon the same
 9    grounds as for  refusing  to  grant  or  revoking  a  license
10    hereunder.   Upon  notice  to the Comptroller, the seller may
11    change the trustee of the trust fund.
12        (c)  The  trustee  may  rely  upon   certifications   and
13    affidavits  made  to it under the provisions of this Act, and
14    shall not be liable to any person for such reliance.
15        (d)  A trustee shall be  allowed  to  withdraw  from  the
16    trust  funds maintained pursuant to this Act, payable  solely
17    from the income earned on such trust funds, a reasonable  fee
18    for all usual and customary services for the operation of the
19    trust  fund,  including,  but  not  limited  to trustee fees,
20    investment advisor fees, allocation fees, annual  audit  fees
21    and  other  similar  fees.  The  maximum amount allowed to be
22    withdrawn for these fees each year shall be the lesser of  3%
23    of  the balance of the trust calculated on an annual basis or
24    the amount of annual income generated therefrom.
25        (e)  The trust shall be a single-purpose trust fund.   In
26    the   event   of   the  seller's  bankruptcy,  insolvency  or
27    assignment for  the  benefit  of  creditors,  or  an  adverse
28    judgment,  the  trust  funds  shall  not  be available to any
29    creditor as assets of the seller or to pay  any  expenses  of
30    any   bankruptcy   or   similar   proceeding,  but  shall  be
31    distributed to the purchasers or managed for their benefit by
32    the trustee holding the funds. Except in  an  action  by  the
33    Comptroller  to  revoke a license issued pursuant to this Act
34    and for creation of a receivership as provided in  this  Act,
 
HB2283 Engrossed            -72-              LRB9201944LDprA
 1    the  trust  shall  not  be  subject  to  judgment, execution,
 2    garnishment, attachment,  or  other  seizure  by  process  in
 3    bankruptcy  or  otherwise,  nor to sale, pledge, mortgage, or
 4    other alienation, and  shall  not  be  assignable  except  as
 5    approved  by  the  Comptroller.  The  changes  made  by  this
 6    amendatory  Act  of the 91st General Assembly are intended to
 7    clarify existing law regarding the inability of licensees  to
 8    pledge the trust.
 9        (f)  Because it is not known at the time of deposit or at
10    the  time  that income is earned on the trust account to whom
11    the  principal  and  the   accumulated   earnings   will   be
12    distributed,  for purposes of determining the Illinois Income
13    Tax due on these trust funds, the principal and  any  accrued
14    earnings  or losses relating to each individual account shall
15    be held in suspense until the final determination is made  as
16    to whom the account shall be paid.
17    (Source: P.A. 91-7, eff. 6-1-99.)

18        (815 ILCS 390/19) (from Ch. 21, par. 219)
19        Sec. 19.  Construction or development of spaces.
20        (a)  The   construction  or  development  of  undeveloped
21    interment, entombment or inurnment spaces shall be  commenced
22    on  that  phase, section or sections of undeveloped ground or
23    section  of   lawn   crypts,   mausoleums,   garden   crypts,
24    columbariums  or  cemetery  spaces  in  which  sales are made
25    within 3 years of the date of  the  first  such  sale.    The
26    seller  shall give written notice to the Comptroller no later
27    than 30 days after the first sale.  Such notice shall include
28    a description of the project.  Once  commenced,  construction
29    or  development  shall  be  pursued diligently to completion.
30    The construction must be completed  within  6  years  of  the
31    first  sale.  If construction or development is not commenced
32    or completed within the times specified herein, any purchaser
33    may surrender and cancel the contract and  upon  cancellation
 
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 1    shall  be  entitled  to  a  refund of the actual amounts paid
 2    toward the purchase price plus interest attributable to  such
 3    amount earned while in trust; provided however that any delay
 4    caused  by  strike,  shortage  of  materials, civil disorder,
 5    natural disaster or any like occurrence beyond the control of
 6    the seller shall extend the time  of  such  commencement  and
 7    completion by the length of such delay.
 8        (b)  At  any  time  within  12  months  of  a purchaser's
 9    entering into a pre-need contract for undeveloped  interment,
10    entombment or inurnment spaces, a purchaser may surrender and
11    cancel  his  or  her  contract and upon cancellation shall be
12    entitled to a refund of the actual amounts  paid  toward  the
13    purchase  price  plus  interest  attributable  to such amount
14    earned while in trust.  Notwithstanding  the  foregoing,  the
15    cancellation  and  refund  rights specified in this paragraph
16    shall  terminate  as  of  the  date  the   seller   commences
17    construction or development of the phase, section or sections
18    of  undeveloped  spaces  in  which sales are made.  After the
19    rights of  cancellation  and  refund  specified  herein  have
20    terminated,  if a purchaser defaults in making payments under
21    the pre-need contract, the seller shall  have  the  right  to
22    cancel  the  contract  and  withdraw  from the trust fund the
23    entire balance to the credit of  the  defaulting  purchaser's
24    account  as  liquidated  damages.  In such event, the trustee
25    shall  deliver  said  balance  to   the   seller   upon   its
26    certification,  and  upon  receiving  said  certification the
27    trustee may rely thereon and shall not be  liable  to  anyone
28    for such reliance.
29        (c)  During the construction or development of interment,
30    entombment  or inurnment spaces, upon the sworn certification
31    by the seller and the contractor to the trustee, the  trustee
32    shall  disburse  from the trust fund the amount equivalent to
33    the  cost  of  performed  labor  or  delivered  materials  as
34    certified.  Said certification shall be substantially in  the
 
HB2283 Engrossed            -74-              LRB9201944LDprA
 1    following form:
 2        We,  the  undersigned,  being respectively the Seller and
 3    Contractor,  do  hereby  certify  that  the  Contractor   has
 4    performed labor or delivered materials or both to (address of
 5    property)  ..........,  in  connection  with  a  contract  to
 6    ..........,  and  that as of this date the value of the labor
 7    performed and materials delivered is $.......
 8        We do  further  certify  that  in  connection  with  such
 9    contract  there  remains labor to be performed, and materials
10    to be delivered, of the value of $........
11        This Certificate is signed (insert date).
12    ............              ............
13       Seller                  Contractor

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

25        (815 ILCS 390/20) (from Ch. 21, par. 220)
26        Sec. 20.  Records.
27        (a)  Each licensee must keep accurate accounts, books and
28    records in this State at  the  principal  place  of  business
29    identified  in  the  licensee's  license  application  or  as
30    otherwise  approved  by  the  Comptroller  in  writing of all
31    transactions, copies of  agreements,  dates  and  amounts  of
32    payments  made  or  received,  the names and addresses of the
33    contracting parties, the names and addresses of  persons  for
 
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 1    whose  benefit funds are received, if known, and the names of
 2    the trust depositories. Additionally, for  a  period  not  to
 3    exceed  6  months  after  the  performance  of all terms in a
 4    pre-need sales contract, the licensee shall  maintain  copies
 5    of  each  pre-need  contract  at the licensee branch location
 6    where the contract was entered  or  at  some  other  location
 7    agreed to by the Comptroller in writing.
 8        (b)  Each  licensee  must  maintain  such  records  for a
 9    period of 3 years after the licensee shall have fulfilled his
10    or her obligation under the  pre-need  contract  or  3  years
11    after  any stored merchandise shall have been provided to the
12    purchaser or beneficiary, whichever is later.
13        (c)  Each  licensee   shall   submit   reports   to   the
14    Comptroller  annually,  under oath, on forms furnished by the
15    Comptroller.  The annual report shall contain, but shall  not
16    be limited to, the following:
17             (1)  An  accounting  of  the  principal  deposit and
18        additions of principal during the fiscal year.
19             (2)  An accounting of any withdrawal of principal or
20        earnings.
21             (3)  An accounting at the end of each  fiscal  year,
22        of the total amount of principal and earnings held.
23        (d)  The  annual  report  shall  be filed by the licensee
24    with the Comptroller within 75 days  after  the  end  of  the
25    licensee's fiscal year.  An extension of up to 60 days may be
26    granted  by  the  Comptroller,  upon a showing of need by the
27    licensee.  Any other reports shall be in the  form  furnished
28    or  specified  by  the  Comptroller.   If a licensee fails to
29    submit an annual report to the Comptroller  within  the  time
30    specified  in this Section, the Comptroller shall impose upon
31    the licensee a penalty of $5  for  each  and  every  day  the
32    licensee  remains delinquent in submitting the annual report.
33    The Comptroller may abate all or part of the $5 daily penalty
34    for good cause shown.  Each report shall be accompanied by  a
 
HB2283 Engrossed            -77-              LRB9201944LDprA
 1    check  or  money  order  in  the  amount  of  $10 payable to:
 2    Comptroller, State of Illinois.
 3        (e)  On and after the effective date of  this  amendatory
 4    Act  of  the 91st General Assembly, a licensee may report all
 5    required information concerning  the  sale  of  outer  burial
 6    containers  on  the  licensee's  annual report required to be
 7    filed under this Act and shall not be required to report that
 8    information under the Illinois Funeral or Burial  Funds  Act,
 9    as long as the information is reported under this Act.
10    (Source: P.A. 91-7, eff. 1-1-2000.)

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

 5        (815 ILCS 390/23) (from Ch. 21, par. 223)
 6        Sec. 23. (a) Any person who fails to deposit the required
 7    amount into a trust provided  for  in  this  Act,  improperly
 8    withdraws  or uses trust funds for his or her own benefit, or
 9    otherwise violates violating any provision  of  this  Act  is
10    guilty of a Class 4 felony.
11        (b)  If  any person violates this Act or fails or refuses
12    to comply with any order  of  the  Comptroller  or  any  part
13    thereof which to such person has become final and is still in
14    effect,  the  Comptroller  may,  after  notice and hearing at
15    which it is determined that a violation of this Act  or  such
16    order  has  been  committed,  further  order that such person
17    shall forfeit and pay to the State of Illinois a sum  not  to
18    exceed  $5,000  for  each violation.  Such liability shall be
19    enforced in an action  brought  in  any  court  of  competent
20    jurisdiction  by the Comptroller in the name of the people of
21    the State of Illinois.
22        (c)  Whenever a license is revoked by the Comptroller, or
23    the Comptroller determines that  any  person  is  engaged  in
24    pre-need  sales  without  a  license,  he  shall apply to the
25    circuit court of the county where such person is located  for
26    a receiver to administer the business of such person.
27        (d)  Whenever  a  licensee  fails  or  refuses  to make a
28    required report or whenever it  appears  to  the  Comptroller
29    from  any  report  or  examination  that  such  licensee  has
30    committed a violation of law or that the trust funds have not
31    been   administered   properly   or  that  it  is  unsafe  or
32    inexpedient for such licensee or the  trustee  of  the  trust
33    funds  of  such licensee to continue to administer such funds
 
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 1    or that any officer of such licensee or of the trustee of the
 2    trust funds of such licensee has abused his trust or has been
 3    guilty of misconduct or  breach  of  trust  in  his  official
 4    position injurious to such licensee or that such licensee has
 5    suffered  as  to  its  trust funds a serious loss by larceny,
 6    embezzlement,  burglary,  repudiation   or   otherwise,   the
 7    Comptroller  shall,  by  order,  direct the discontinuance of
 8    such illegal, unsafe  or  unauthorized  practices  and  shall
 9    direct strict conformity with the requirements of the law and
10    safety  and security in its transactions and may apply to the
11    circuit court of the county where such licensee is located to
12    prevent any disbursements or expenditures  by  such  licensee
13    until the trust funds are in such condition that it would not
14    be  jeopardized thereby and the Comptroller shall communicate
15    the facts to the Attorney General of the  State  of  Illinois
16    who  shall  thereupon  institute such proceedings against the
17    licensee or its trustee or the officers of either or both  as
18    the nature of the case may require.
19        (e)  In  addition  to  the  other  penalties and remedies
20    provided in this Act,  the  Comptroller  may  bring  a  civil
21    action  in  the  county  of  residence of the licensee or any
22    person engaging in pre-need sales, to enjoin any violation or
23    threatened violation of this Act.
24        (f)  The powers vested in the Comptroller by this Section
25    are additional to any  and  all  other  powers  and  remedies
26    vested   in  the  Comptroller  by  law,  and  nothing  herein
27    contained  shall  be  construed   as   requiring   that   the
28    Comptroller  shall employ the powers conferred herein instead
29    of or as a condition precedent to the exercise of  any  other
30    power or remedy vested in the Comptroller.
31    (Source: P.A. 88-477.)

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

12        Section 50. Severability. If any provision of this Act or
13    its  application  to  any  person  or  circumstance  is  held
14    invalid, the invalidity of that provision or application does
15    not affect other provisions or applications of this Act  that
16    can   be  given  effect  without  the  invalid  provision  or
17    application.

18        Section  99.  Effective  date.  This  Act  takes   effect
19    January 1, 2002.

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