Public Act 097-0593
 
SB0675 EnrolledLRB097 04438 RPM 44477 b



    AN ACT concerning regulation.

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

 
    Section 5. The Illinois Funeral or Burial Funds Act is 
amended  by changing Sections  2, 3, and 3a-5 as follows:
 



    (225 ILCS 45/2)  (from Ch. 111 1/2, par. 73.102)



    Sec. 2. 
(a) If a purchaser selects a trust arrangement to 
fund the
pre-need contract, all trust deposits as determined by 
Section 1b shall be made
within 30 days of receipt.

    (b) A trust established under this Act must be maintained 
with a corporate fiduciary as defined in Section 1-5.05 of the 
Corporate Fiduciary Act or with a foreign corporate fiduciary 
recognized by Article IV of the Corporate Fiduciary Act.



    (c) Trust agreements and amendments to the trust agreements 
used to
fund a pre-need contract shall be filed with the 
Comptroller.

    (d) (Blank).

    (e) A seller or provider shall furnish to the trustee and 
depositary the
name of each payor and the amount of payment on 
each such account for which
deposit is being so made.  Nothing 
shall prevent the trustee from commingling the
deposits in any 
such trust fund for purposes of its management and the

investment of its funds as provided in the Common Trust Fund 
Act.  In addition,
multiple trust funds maintained under this 
Act may be commingled or commingled
with other funeral or 
burial related trust funds if all record keeping
requirements 
imposed by law are met.

    (f) (Blank).

    (g) Upon no less than 30 days prior notice to the 
Comptroller, the seller may change
the trustee of
the fund. 
Failure to provide the Comptroller with timely prior notice is 
an intentional violation of this Act.
    (h) A trustee shall at least annually furnish to each 
purchaser a statement containing: (1) the receipts, 
disbursements, and inventory of the trust, including an 
explanation of any fees or expenses charged by the trustee 
under Section 5 of this Act or otherwise, (2) an explanation of 
the purchaser's right to a refund, if any, under this Act, and 
(3) identifying the primary regulator of the trust as a 
corporate fiduciary under state or federal law. 

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

 



    (225 ILCS 45/3)  (from Ch. 111 1/2, par. 73.103)



    Sec. 3. Licensing. 

    (a) No person, firm, partnership, association or 
corporation may act as
seller without first securing from the 
State Comptroller a
license to
so act. Application for such 
license shall be in writing, signed by the
applicant and duly 
verified on forms furnished by the Comptroller. Each

application shall contain at least the following:


        (1) The full name and
address (both residence and place 
    of business) of the applicant, and
every member, officer 
    and director thereof if the applicant is a firm,

    partnership, association, or corporation, and of every 
    shareholder
holding
more than 10% of the corporate stock if 
    the applicant is a corporation;


        (2) A statement of the applicant's
assets and 
    liabilities;


        (3) The name and address of the applicant's principal

    place of business at which the books, accounts, and
records 
    shall be available for examination by the
Comptroller as 
    required by this Act;


        (4) The names and addresses of the applicant's branch

    locations at which pre-need sales shall be conducted and

    which shall operate under the same license number as the

    applicant's principal place of business;


        (5) For each individual listed under item (1) above, a

    detailed statement of the individual's business
experience 
    for the 10 years immediately preceding the
application; any 
    present or prior connection between the
individual and any 
    other person engaged in pre-need
sales; any felony or 
    misdemeanor convictions for which
fraud was an essential 
    element; any charges or
complaints lodged against the 
    individual for which fraud
was an essential element and 
    which resulted in civil or
criminal litigation; any failure 
    of the individual to
satisfy an enforceable judgment 
    entered against him
based upon fraud; and any other 
    information requested by
the Comptroller relating to past 
    business practices of
the individual. Since the 
    information required by this
item (5) may be confidential 
    or contain proprietary
information, this information shall 
    not be available to
other licensees or the general public 
    and shall be used
only for the lawful purposes of the 
    Comptroller in
enforcing this Act;


        (6) The name of the trustee and, if applicable, the

    names of the advisors to the trustee, including a copy
of 
    the proposed trust agreement under which the trust
funds 
    are to be held as required by this Act; and


        (7) Such other information as the Comptroller may

    reasonably require in order to determine the
qualification 
    of the applicant to be licensed under this
Act.

    (b) Applications for
license shall be accompanied
by a 
fidelity bond executed by the applicant and a surety company

authorized to do business in this State or an irrevocable, 
unconditional
letter of credit issued by a bank, credit union, 
or trust company authorized to
do business in the State of 
Illinois, as approved by the State Comptroller, in
such amount 
not exceeding $10,000 as the Comptroller may require.  If, after

notice and an opportunity to be heard, it
has been determined 
that a licensee has violated this Act within the past 5

calendar years, the Comptroller may require an additional bond 
or letter of credit
from the licensee from time to time in 
amounts equal to one-tenth of such trust
funds, which bond or 
letter of credit shall run to the Comptroller for the use
and 
benefit of the beneficiaries of such trust funds.

    The licensee shall keep accurate accounts, books and 
records in this State,
at the principal place of business 
identified in the
licensee's license application or as 
otherwise approved by
the Comptroller in writing,
of
all 
transactions, copies of all pre-need contracts, trust 
agreements, and other
agreements, dates and amounts of payments 
made and accepted thereon, the names
and addresses of the 
contracting parties, the persons for whose benefit such
funds 
are accepted, and the names of the depositaries of such funds.

Each licensee shall maintain the documentation for a period
of 
3 years after the licensee has fulfilled his obligations
under 
the pre-need contract.  Additionally, for a period
not to exceed 
6 months after the performance of all terms
in a pre-need sales 
contract, the licensee shall maintain
copies of the contract at 
the licensee branch location
where the contract was entered or 
at some other location agreed to by the
Comptroller in writing.
 
If an
insurance policy or tax-deferred annuity is used to fund 
the pre-need contract,
the licensee under this Act shall keep 
and maintain accurate accounts, books,
and records in this 
State, at the principal place of business identified in
the

licensee's application or as otherwise approved by the

Comptroller in writing,
of all insurance policies and 
tax-deferred annuities
used to fund the pre-need contract, the 
name and address of insured, annuitant,
and initial 
beneficiary, and the name and address of the insurance company

issuing the policy or annuity.  If a life insurance policy or 
tax-deferred
annuity is used to fund a pre-need contract, the 
licensee shall notify the
insurance company of the name of each 
pre-need contract purchaser and the
amount of each payment when 
the pre-need contract, insurance policy or annuity
is 
purchased.

    The licensee shall make reports to the Comptroller annually 
or at such other
time as the Comptroller may require, on forms 
furnished by the Comptroller. The
licensee shall file the 
annual report with the Comptroller within 75 days after
the end 
of the licensee's fiscal year. The Comptroller shall for good 
cause
shown grant an extension for the filing of the annual 
report upon the written
request of the licensee. Such extension 
shall not exceed 60 days.  If a
licensee fails to submit an 
annual report to the Comptroller within the time
specified in 
this Section, the Comptroller shall impose upon the licensee a

penalty of $5 per day for the first 15 days past due, $10 per 
day for 16 through 30 days past due, $15 per day for 31 through 
45 days past due, and $20 per day for the 46th day and every day 
thereafter for each and every day the licensee remains 
delinquent in
submitting the annual report.  The Comptroller may 
abate all or part of the
$5 daily penalty for good cause shown.  
Every application shall be
accompanied by a check
or money 
order in the amount of $25 and every report shall be 
accompanied by a
check or money order in the amount of $10 
payable to:  Comptroller, State of
Illinois.

    The licensee shall make all required books and records 
pertaining to trust
funds, insurance policies, or tax-deferred 
annuities available to the
Comptroller for examination. The 
Comptroller, or a person designated by the
Comptroller who is 
trained to perform such examinations, may at any time

investigate the books, records and accounts of the licensee 
with respect to
trust funds, insurance policies, or 
tax-deferred annuities and for that purpose
may require the 
attendance of and examine under oath all persons whose

testimony he may require. The licensee shall pay a fee for such 
examination in
accordance with a schedule established by the 
Comptroller.  The fee shall not
exceed the cost of such 
examination. For pre-need contracts funded by trust

arrangements, the cost of an initial examination shall be borne 
by the
licensee if it
has $10,000 or more in trust funds, 
otherwise, by the Comptroller.  The charge
made by the 
Comptroller for an examination shall be based upon the total 
amount
of trust funds held by the licensee at the end of the 
calendar or fiscal year
for which the report is required by 
this Act and shall be in accordance with
the following 
schedule:

Less than $10,000.................................no charge;

$10,000 or more but less than $50,000...................$10;

$50,000 or more but less than $100,000..................$40;

$100,000 or more but less than $250,000.................$80;

$250,000 or more........................................$100.

    The Comptroller may order additional audits or 
examinations as he or she
may deem necessary or advisable to 
ensure the safety and stability of the trust
funds and to 
ensure compliance with this Act.  These additional audits or

examinations shall only be made after good cause is established 
by the
Comptroller in the written order.  The grounds for 
ordering these additional
audits or examinations may include, 
but shall not be limited to:


        (1) material and unverified changes or fluctuations in 
    trust balances or
insurance or annuity policy amounts;


        (2) the licensee changing trustees more than twice in 
    any 12-month
period;


        (3) any withdrawals or attempted withdrawals from the 
    trusts, insurance
policies, or annuity contracts in 
    violation of this Act; or


        (4) failure to maintain or produce documentation 
    required by this Act for
deposits into trust accounts, 
    trust investment activities, or life insurance or
annuity 
    policies.

    The
licensee shall bear the full cost of that examination 
or audit, up to a maximum
of $20,000.  The
Comptroller may elect 
to pay for the examination or audit and receive
reimbursement 
from the licensee.  Payment of the costs of the examination or

audit by a licensee shall be a condition of receiving, 
maintaining, or renewing
a license
under this Act.  All moneys 
received by the Comptroller for examination or
audit fees shall 
be maintained in a separate account to be known as the

Comptroller's Administrative
Fund.  This
Fund, subject to 
appropriation by the General Assembly, may
be utilized by the 
Comptroller for
enforcing this Act and other purposes that may 
be authorized by law.

    For pre-need contracts funded by life insurance or a 
tax-deferred annuity,
the cost of an examination shall be borne 
by the licensee. The fee
schedule for such examination shall be 
established in rules promulgated by the
Comptroller. In the 
event such investigation or other information received by
the 
Comptroller discloses a substantial violation of the 
requirements of this
Act, the Comptroller shall revoke the 
license of such person upon a hearing as
provided in this Act. 
Such licensee may terminate all further responsibility
for 
compliance with the requirements of this Act by voluntarily 
surrendering
the license to the Comptroller, or in the event of 
its loss, furnishing the
Comptroller with a sworn statement to 
that effect, which states the licensee's
intention to 
discontinue acceptance of funds received under pre-need 
contracts.
Such license or statement must be accompanied by an 
affidavit that said
licensee has lawfully expended or refunded 
all funds received under pre-need
contracts, and that the 
licensee will accept no additional sales proceeds. The

Comptroller shall immediately cancel or revoke said license.

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

 



    (225 ILCS 45/3a-5)



    Sec. 3a-5. License requirements. 

    (a) Every license issued by the Comptroller shall state
the 
number of the license, the business name and address of
the 
licensee's principal place of business, each branch
location 
also operating under the license, and the
licensee's parent 
company, if any.  The license shall be
conspicuously posted in 
each place of business operating
under the license.  The 
Comptroller may issue such
additional licenses as may be 
necessary for licensee branch
locations upon compliance with 
the provisions of this Act
governing an original issuance of a 
license for each new
license.

    (b) Individual salespersons representing a licensee
shall 
not be required to obtain licenses in their
individual 
capacities, but must acknowledge, by affidavit,
that they have 
been provided with a copy of and have read
this Act.  The 
licensee shall retain copies of the affidavits
of its sellers 
for its records and shall make the affidavits
available to the 
Comptroller for examination upon request.

    (c) The licensee shall be responsible for the activities
of 
any person representing the licensee in selling or
offering a 
pre-need contract for sale.

    (d) Any person not selling on behalf of a licensee shall

obtain its own license.

    (e) No license shall be transferable or assignable
without 
the express written consent of the Comptroller.  A
transfer of 
more than 50% of the ownership of any business
licensed 
hereunder shall be deemed to be an attempted
assignment of the 
license originally issued to the licensee
for which consent of 
the Comptroller shall be required.

    (f) Every license issued hereunder shall be renewed every 5 
years for a renewal fee of $100. The renewal fee shall be 
deposited into the Comptroller's Administrative Fund remain in 
force
until it has been suspended, surrendered, or revoked in

accordance with this Act.  The Comptroller, upon the request
of 
an interested person or on his own motion, may issue new

licenses to a licensee whose license or licenses have been

revoked, if no factor or condition then exists which would
have 
warranted the Comptroller to originally refuse the
issuance of 
such license.

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

 
    Section 10. The Cemetery Oversight Act is amended  by 
changing Sections 15-15, 15-40, and 75-55 as follows:
 
    (225 ILCS 411/15-15)
    (Section scheduled to be repealed on January 1, 2021)

    Sec. 15-15. Care funds; deposits; investments. 
    (a) Whenever a cemetery authority accepts care funds, 
either in connection with the sale or giving away at an imputed 
value of an interment right, entombment right, or inurnment 
right, or in pursuance of a contract, or whenever, as a 
condition precedent to the purchase or acceptance of an 
interment right, entombment right, or inurnment right, such 
cemetery authority shall establish a care fund or deposit the 
funds in an already existing care fund.
    (b) The cemetery authority shall execute and deliver to the 
person from whom it received the care funds an instrument in 
writing that shall specifically state: (i) the nature and 
extent of the care to be furnished and (ii) that such care 
shall be furnished only in so far as net income derived from 
the amount deposited in trust will permit (the income from the 
amount so deposited, less necessary expenditures of 
administering the trust, shall be deemed the net income). 
    (c) The setting-aside and deposit of care funds shall be 
made by such cemetery authority no later than 30 days after the 
close of the month in which the cemetery authority gave away 
for an imputed value or received the final payment on the 
purchase price of interment rights, entombment rights, or 
inurnment rights, or received the final payment for the general 
or special care of a lot, grave, crypt, or niche or of a family 
mausoleum, memorial, marker, or monument, and such amounts 
shall be held by the trustee of the care funds of such cemetery 
authority in trust and in perpetuity for the specific purposes 
stated in the written instrument described in subsection (b). 
For all care funds received by a cemetery authority, except for 
care funds received by a cemetery  authority pursuant to a 
specific gift, grant, contribution, payment, legacy, or 
contract that are subject to investment restrictions more 
restrictive than the investment provisions set forth in this 
Act, and except for care funds otherwise subject to a trust 
agreement executed by a person or persons responsible for 
transferring the specific gift, grant, contribution, payment, 
or legacy to the cemetery authority that contains investment 
restrictions more restrictive than the investment provisions 
set forth in this Act, the cemetery authority may, without the 
necessity of having to obtain prior approval from any court in 
this State, designate a new trustee in accordance with this Act 
and invest the care funds in accordance with this Section, 
notwithstanding any contrary limitation contained in the trust 
agreement.
    (d) Any cemetery authority engaged in selling or giving 
away at an imputed value interment rights, entombment rights, 
or inurnment rights, in conjunction with the selling or giving 
away at an imputed value any other merchandise or services not 
covered by this Act, shall be prohibited from increasing the 
sales price or imputed value of those items not requiring a 
care fund deposit under this Act with the purpose of allocating 
a lesser sales price or imputed value to items that require a 
care fund deposit.
    (e) If any sale that requires a deposit to a cemetery 
authority's care fund is made by a cemetery authority on an 
installment basis, and the installment contract is factored, 
discounted, or sold to a third party, then the cemetery 
authority shall deposit the amount due to the care fund within 
30 days after the close of the month in which the installment 
contract was factored, discounted, or sold. If, subsequent to 
such deposit, the purchaser defaults on the contract such that 
no care fund deposit on that contract would have been required, 
then the cemetery authority may apply the amount deposited as a 
credit against future required deposits.
    (f) The trust authorized by this Section shall be a single 
purpose trust fund. In the event of the cemetery authority's 
bankruptcy, insolvency, or assignment for the benefit of 
creditors, or an adverse judgment, the trust funds shall not be 
available to any creditor as assets of the cemetery authority 
or to pay any expenses of any bankruptcy or similar proceeding, 
but shall be retained intact to provide for the future 
maintenance of the cemetery. Except in an action by the 
Department to revoke a license issued pursuant to this Act and 
for creation of a receivership as provided in this Act, the 
trust shall not be subject to judgment, execution, garnishment, 
attachment, or other seizure by process in bankruptcy or 
otherwise, nor to sale, pledge, mortgage, or other alienation, 
and shall not be assignable except as approved by the 
Comptroller Department.


(Source: P.A. 96-863, eff. 3-1-10.)
 
    (225 ILCS 411/15-40)
    (Section scheduled to be repealed on January 1, 2021)

    Sec. 15-40. Trust examinations and audits. 
    (a) The Comptroller Department shall examine at least 
annually every licensee who holds $250,000 or more in its care 
funds. For that purpose, the Comptroller Department shall have 
free access to the office and places of business and to such 
records of all licensees and of all trustees of the care funds 
of all licensees as shall relate to the acceptance, use, and 
investment of care funds. The Comptroller Department may 
require the attendance of and examine under oath all persons 
whose testimony may be required relative to such business. In 
such cases the Comptroller Department, or any qualified 
representative of the Comptroller Department whom the 
Comptroller Department may designate, may administer oaths to 
all such persons called as witnesses, and the Comptroller 
Department, or any such qualified representative of the 
Comptroller Department, may conduct such examinations. The 
cost of an initial examination shall be determined by rule.
    (b) The Comptroller Department may order additional audits 
or examinations as it may deem necessary or advisable to ensure 
the safety and stability of the trust funds and to ensure 
compliance with this Act. These additional audits or 
examinations shall only be made after good cause is established 
by the Comptroller Department in the written order. The grounds 
for ordering these additional audits or examinations may 
include, but shall not be limited to:

        (1) material and unverified changes or fluctuations in 
    trust balances;
        (2) the licensee changing trustees more than twice in 
    any 12-month period;
        (3) any withdrawals or attempted withdrawals from the 
    trusts in violation of this Act; or
        (4) failure to maintain or produce documentation 
    required by this Act.

(Source: P.A. 96-863, eff. 3-1-10.)
 
    (225 ILCS 411/75-55)
    (Section scheduled to be repealed on January 1, 2021)

    Sec. 75-55. Transition.
 
    (a) Within 60 days after the effective date of this Act, 
the Comptroller shall provide the Department copies of records 
in the Comptroller's possession pertaining to the Cemetery Care 
Act and the Crematory Regulation Act that are necessary for the 
Department's immediate responsibilities under this Act. All 
other records pertaining to the Cemetery Care Act with the 
exception of records pertaining to care funds and the Crematory 
Regulation Act shall be transferred to the Department by March 
1, 2012. In the case of records that pertain both to the 
administration of the Cemetery Care Act or the Crematory 
Regulation Act and to a function retained by the Comptroller, 
the Comptroller, in consultation with the Department, shall 
determine, within 60 days after the repeal of the Cemetery Care 
Act, whether the records shall be transferred, copied, or left 
with the Comptroller; until this determination has been made 
the transfer shall not occur.
    (b) (Blank). A person licensed under one of the Acts listed 
in subsection (a) of this Section or regulated under the 
Cemetery Association Act shall continue to comply with the 
provisions of those Acts until such time as the person is 
licensed under this Act or those Acts are repealed or the 
amendatory changes made by this amendatory Act of the 96th 
General Assembly take effect, as the case may be, whichever is 
earlier.
    (c) To support the costs that may be associated with 
implementing and maintaining a licensure and regulatory 
process for the licensure and regulation of cemetery 
authorities, cemetery managers, customer service employees, 
and cemetery workers, all cemetery authorities  not maintaining 
a full exemption or partial exemption shall pay a one-time fee 
of $20 to the Department plus an additional charge of $1 per 
burial unit per year within the cemetery. The Department may 
establish forms for the collection of the fee established under 
this subsection and shall deposit such fee into the Cemetery 
Oversight Licensing and Disciplinary Fund. The Department may 
begin to collect the aforementioned fee after the effective 
date of this Act. In addition, the Department may establish 
rules for the collection process, which may include, but shall 
not be limited to, dates, forms, enforcement, or other 
procedures necessary for the effective collection, deposit, 
and
overall process regarding this Section.
    (d) Any cemetery authority that fails to pay to the 
Department the required fee or submits the incorrect amount 
shall be subject to the penalties provided for in Section 
25-110 of this Act.
    (e) Except as otherwise specifically provided, all fees, 
fines, penalties, or other moneys received or collected 
pursuant to this Act shall be deposited in the Cemetery 
Oversight Licensing and Disciplinary Fund.
    (f) (Blank). All proportionate funds held in the 
Comptroller's Administrative Fund related to unexpended moneys 
collected under the Cemetery Care Act and the Crematory 
Regulation Act shall be transferred to the Cemetery Oversight 
Licensing and Disciplinary Fund within 60 days after the 
effective date of the repeal of the Cemetery Care Act.
    (g) (Blank). Personnel employed by the Comptroller on 
February 29, 2012, to perform the duties pertaining to the 
administration of the Cemetery Care Act and the Crematory 
Regulation Act, are transferred to the Department on March 1, 
2012.
    The rights of State employees, the State, and its agencies 
under the Comptroller Merit Employment Code and applicable 
collective bargaining agreements and retirement plans are not 
affected under this Act, except that all positions transferred 
to the Department shall be subject to the Personnel Code 
effective March 1, 2012. 
    All transferred employees who are members of collective 
bargaining units shall retain their seniority, continuous 
service, salary, and accrued benefits.  During the pendency of 
the existing collective bargaining agreement, the rights 
provided for under that agreement shall not be abridged.
    The Department shall continue to honor during their 
pendency all bargaining agreements in effect at the time of the 
transfer and to recognize all collective bargaining 
representatives for the employees who perform or will perform 
functions transferred by this Act. For all purposes with 
respect to the management of the existing agreement and the 
negotiation and management of any successor agreements, the 
Department shall be deemed the employer of employees who 
perform or will perform functions transferred to the Department 
by this Act.

(Source: P.A. 96-863, eff. 3-1-10.)
 
    Section 15. The Illinois Pre-Need Cemetery Sales Act is 
amended  by changing Sections 6, 8, 15,  and 20 as follows:
 



    (815 ILCS 390/6)  (from Ch. 21, par. 206)



    Sec. 6. License application. 

    (a) An application for a license shall be made in writing 
to
the Comptroller on forms prescribed by him or her, signed by 
the applicant
under oath verified by a notary public,
and 
accompanied
by a non-returnable $125 $25 application fee, $100 
of which shall be deposited into the Comptroller's 
Administrative Fund.  The Comptroller may prescribe
abbreviated 
application forms for persons holding a license under the 
Cemetery
Care Act.  Applications (except abbreviated 
applications) must include at least
the following information:


        (1) The full name and address, both residence and 
    business, of the
applicant if the applicant is an 
    individual; of every member if applicant is
a partnership; 
    of every member of the Board of Directors if applicant is 
    an
association; and of every officer, director and 
    shareholder
holding more
than 10% of the corporate stock if 
    applicant is a corporation;


        (2) A detailed statement of applicant's assets and 
    liabilities;


        (2.1) The name and address of the applicant's
principal 
    place of business at which the books,
accounts, and records 
    are available for examination
by the Comptroller as 
    required by this Act;


        (2.2) The name and address of the applicant's branch

    locations at which pre-need sales will be conducted and

    which will operate under the same license number as the

    applicant's principal place of business;


        (3) For each individual listed under (1) above, a 
    detailed statement of
the individual's business experience 
    for the 10 years immediately preceding
the application; any 
    present or prior connection between the individual and
any 
    other person engaged in pre-need sales; any felony or 
    misdemeanor
convictions for which fraud was an essential 
    element; any charges or
complaints lodged against the 
    individual for which fraud was an essential
element and 
    which resulted in civil or criminal litigation; any failure 
    of
the individual to satisfy an enforceable judgment 
    entered against him or
her based
upon fraud;
and any other 
    information requested by the Comptroller relating
to the 
    past business practices of the individual.  Since the 
    information
required by this paragraph may be confidential 
    or contain proprietary
information, this information shall 
    not be available to other licensees or
the general public 
    and shall be used only for the lawful purposes of the

    Comptroller in enforcing this Act;


        (4) The name of the trustee and, if applicable, the 
    names of the
advisors to the trustee, including a copy of 
    the proposed trust agreement
under which the trust funds 
    are to be held as required by this Act;


        (5) Where applicable, the name of the corporate surety 
    company
providing the performance bond for the 
    construction of undeveloped spaces
and a copy of the bond; 
    and


        (6) Such other information as the Comptroller may 
    reasonably require in
order to determine the qualification 
    of the applicant to be licensed under this
Act.

    (b) Applications for license shall be accompanied by a 
fidelity bond
executed by the applicant and a security company 
authorized to do business
in this State in such amount, not 
exceeding $10,000, as the Comptroller may
require.  The 
Comptroller may require additional bond from time to time in

amounts equal to one-tenth of such trust funds but not to 
exceed $100,000,
which bond shall run to the Comptroller for 
the use and benefit of the
beneficiaries of such trust funds.  
Such licensee may by written permit of
the Comptroller be 
authorized to operate without additional bond, except
such 
fidelity bond as may be required by the Comptroller for the 
protection
of the licensee against loss by default by any of 
its employees engaged in
the handling of trust funds.

    (c) Any application not acted upon within 90 days may be 
deemed denied.

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

 



    (815 ILCS 390/8)  (from Ch. 21, par. 208)



    Sec. 8. 
(a) Every license issued by the Comptroller shall 
state the
number of the license, the business name and address 
of the licensee's
principal place of business, each branch 
location also operating under the
license, and the licensee's 
parent company, if any.  The license shall be
conspicuously 
posted in
each place of business operating under the license.   
The Comptroller may issue
additional licenses as may be 
necessary for license branch locations upon compliance with the 
provisions of this Act
governing an original issuance of a 
license for each new license.

    (b) Individual salespersons representing a licensee
shall 
not be required
to obtain licenses in their individual 
capacities
but must acknowledge, by affidavit, that they have

been provided a copy of and have read this Act.  The licensee 
must
retain copies of the affidavits of its salespersons for 
its
records and must make the affidavits available to the

Comptroller for examination upon request.

    (c) The licensee shall be responsible for the activities of 
any person
representing the licensee in selling or offering a 
pre-need contract for sale.

    (d) Any person not selling on behalf of a
licensee
shall be 
required to obtain his or her own license.

    (e) Any person engaged in pre-need sales, as defined 
herein, prior to
the effective date of this Act may continue 
operations until the application
for license under this Act is 
denied; provided that such person shall make
application for a 
license within 60 days of the date that application forms
are 
made available by the Comptroller.

    (f) No license shall be transferable or assignable without 
the express
written consent of the Comptroller.  A transfer of 
more than 50% of the
ownership of any business licensed 
hereunder shall be deemed to be an attempted
assignment of the 
license originally issued to the licensee for which consent
of 
the Comptroller shall be required.

    (g) Every license issued hereunder shall be renewed every 5 
years for a fee of $100. The renewal fee shall be deposited 
into the Comptroller's Administrative Fund. The remain in force 
until the same
has been suspended, surrendered or revoked in 
accordance with this Act,
but the Comptroller, upon the request 
of an interested person or on his
own motion, may issue new 
licenses to a licensee whose license or licenses
have been 
revoked, if no factor or condition then exists which would have

warranted the Comptroller in refusing originally the issuance 
of such license.

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

 



    (815 ILCS 390/15)  (from Ch. 21, par. 215)



    Sec. 15. 
(a) Whenever a seller receives anything of value 
under a
pre-need sales contract, the person receiving such 
value shall deposit 50%
of all proceeds received into one or 
more trust funds maintained pursuant
to this Section, except 
that, in the case of proceeds received for the
purchase of 
outer burial containers, 85% of the proceeds shall be deposited

into one or more trust funds. Such deposits shall be made until 
the amount
deposited in
trust equals 50% of the sales price of 
the cemetery merchandise, cemetery
services and undeveloped 
spaces included in such contract, except that, in
the case of 
deposits for outer burial containers, deposits shall be made 
until
the amount deposited in trust equals 85% of the sales 
price. In the event
an
installment contract is factored, 
discounted or sold to a third party, the
seller shall deposit 
an amount equal to 50% of the sales price of the
installment 
contract, except that, for the portion of the contract

attributable to the sale of outer burial containers, the seller 
shall deposit
an amount equal to 85% of the sales price. 
Proceeds required to be deposited
in trust which
are

attributable to cemetery merchandise and cemetery services 
shall be held
in a "Cemetery Merchandise Trust Fund". Proceeds 
required to be deposited
in trust which are attributable to the 
sale of undeveloped interment,
entombment or inurnment spaces 
shall be held in a "Pre-construction Trust
Fund". If 
merchandise is delivered for storage in a bonded warehouse, as

authorized herein, and payment of transportation or other 
charges totaling
more than $20 will be required in order to 
secure delivery to the site of
ultimate use, upon such delivery 
to the warehouse the seller shall deposit
to the trust fund the 
full amount of the actual or estimated transportation
charge. 
Transportation charges which have been prepaid by the seller

shall not be deposited to trust funds maintained pursuant to 
this Section.
As used in this Section, "all proceeds" means the 
entire amount paid by a
purchaser in connection with a pre-need 
sales contract, including finance
charges and Cemetery Care Act  
contributions, but excluding sales taxes
and credit life 
insurance premiums.

    (b) The seller shall act as trustee of all amounts received 
for cemetery merchandise, services, or undeveloped spaces 
until those amounts have been deposited into the trust fund. 
All trust deposits required by this Act shall be made within 30 
days
following the end of the month of receipt. The seller must 
retain a corporate fiduciary as an independent trustee for any 
amount of trust funds.  Upon 30 days' prior written notice from 
the seller to the Comptroller, the seller may change the 
trustee of the trust fund. Failure to provide the Comptroller 
with timely prior notice is an intentional violation of this 
Act. 

    (c) A trust established under this Act must be maintained 
with a corporate fiduciary as defined in Section 1-5.05 of the 
Corporate Fiduciary Act or with a foreign corporate fiduciary 
recognized by Article IV of the Corporate Fiduciary Act.




    (d) Funds deposited in the trust account shall be 
identified in the records
of the seller by the name of the 
purchaser. Nothing shall prevent the trustee
from commingling 
the deposits in  any such trust fund for purposes of the

management thereof and the investment of funds therein as 
provided in the
"Common Trust Fund Act", approved June 24, 
1949, as amended. In addition,
multiple trust funds maintained 
pursuant to this Act may be commingled or
commingled with other 
funeral or burial related trust funds, provided that
all record 
keeping requirements imposed by or pursuant to law are met.

    (e) In lieu of a pre-construction trust fund, a seller of 
undeveloped
interment, entombment or inurnment spaces may 
obtain and file with the
Comptroller a performance bond in an 
amount at least equal to 50% of the
sales price of the 
undeveloped spaces or the estimated cost of completing

construction, whichever is greater.  The bond shall be 
conditioned on the
satisfactory construction and completion of 
the undeveloped spaces as
required in Section 19 of this Act.

    Each bond obtained under this Section shall have as surety 
thereon a
corporate surety company incorporated under the laws 
of the United States,
or a State, the District of Columbia or a 
territory or possession of the
United States.  Each such 
corporate surety company must be authorized to
provide 
performance bonds as required by this Section, have paid-up

capital of at least $250,000 in cash or its equivalent and be 
able to carry
out its contracts.  Each pre-need seller must 
provide to the Comptroller,
for each corporate surety company 
such
seller utilizes, a statement of assets and liabilities of 
the corporate
surety company sworn to by the president and 
secretary
of the corporation by January 1 of each year.

    The Comptroller shall prohibit pre-need sellers from doing 
new business
with a corporate surety company if the company is 
insolvent or is in
violation of this Section.  In addition the 
Comptroller may direct a
pre-need seller to reinstate a 
pre-construction trust fund upon the
Comptroller's 
determination that the corporate surety company no longer is

sufficient security.

    All performance bonds issued pursuant to this Section must 
be irrevocable
during the statutory term for completing 
construction specified in Section
19 of this Act, unless 
terminated sooner by the completion of construction.

    (f) Whenever any pre-need contract shall be entered into 
and include  1)
items of cemetery merchandise and cemetery 
services, and 2) rights to
interment, inurnment or entombment 
in completed spaces without allocation
of the gross sale price 
among the items sold, the application of payments
received 
under the contract shall be allocated, first to the right to

interment, inurnment or entombment, second to items of cemetery 
merchandise
and cemetery services, unless some other 
allocation is clearly provided
in the contract.

    (g) Any person engaging in pre-need sales who enters into a 
combination
sale which involves the sale of items covered by a 
trust or performance
bond requirement and any item not covered 
by any entrustment or bond
requirement, shall be prohibited 
from increasing the gross sales price of
those items not 
requiring entrustment with the purpose of allocating a
lesser 
gross sales price to items which require a trust deposit or a

performance bond.

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

 



    (815 ILCS 390/20)  (from Ch. 21, par. 220)



    Sec. 20. Records. 

    (a) Each licensee must keep accurate accounts, books and

records in this State
at the principal place of business 
identified in the
licensee's license application or as 
otherwise approved by
the Comptroller in writing
of all 
transactions, copies of agreements, dates and
amounts of 
payments made or received, the names and addresses of the

contracting parties, the names and addresses of persons for 
whose benefit
funds are received, if known, and the names of 
the trust depositories.
Additionally, for a period not to 
exceed 6 months after
the performance of all terms in a 
pre-need sales contract,
the licensee shall maintain copies of 
each pre-need
contract at the licensee branch location where 
the contract
was entered or at some other location agreed to by 
the Comptroller in
writing.

    (b) Each licensee must maintain such records for a period 
of 3
years
after the licensee shall have fulfilled his or her 
obligation
under the pre-need
contract or 3 years after any 
stored merchandise shall have been provided
to the purchaser or 
beneficiary, whichever is later.

    (c) Each licensee shall submit reports to the Comptroller

annually,
under oath, on forms furnished by the Comptroller.  
The annual report
shall
contain, but shall not be limited to, 
the following:


        (1) An accounting of the principal deposit and 
    additions of principal
during the fiscal year.


        (2) An accounting of any withdrawal of principal or 
    earnings.


        (3) An accounting at the end of each fiscal year, of 
    the total amount of
principal and earnings held.

    (d) The annual report shall be filed by the licensee with 
the
Comptroller within 75 days after the end of the licensee's 
fiscal year.  An
extension of up to 60 days may be granted by 
the Comptroller, upon a
showing of need by the licensee.  Any 
other reports shall be in
the form
furnished or specified by 
the Comptroller.  If a licensee fails to submit an
annual report 
to the Comptroller within the time specified in this Section, 
the
Comptroller shall impose upon the licensee a penalty of $5 
per day for the first 15 days past due, $10 per day for 16 
through 30 days past due, $15 per day for 31 through 45 days 
past due, and $20 per day for the 46th day and every day 
thereafter for
each and every
day the licensee remains 
delinquent in submitting the annual report.  The
Comptroller may 
abate all or part of the $5 daily penalty for good cause
shown.  
Each
report shall be accompanied by a check or money order in 
the
amount of $10
payable to:  Comptroller, State of Illinois.

    (e) On and after the effective date of this amendatory Act 
of the 91st
General Assembly, a licensee may
report all 
required information concerning the sale of outer burial 
containers
on the licensee's annual report required to be filed 
under this Act and
shall
not be required to report that 
information under the Illinois Funeral or
Burial
Funds Act, as 
long as the information is reported under this Act.

(Source: P.A. 91-7, eff. 1-1-00; 92-419, eff. 1-1-02.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.