Bill Text: IL HB4436 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Amends the Cemetery Care Act. Provides that the net income of a cemetery authority does not include any capital gains from the investment of any gift, grant, contribution, payment, legacy, or sum of money, funds, securities, or property of any kind given to it for the care of its cemetery or any lot, grace, crypt, or niche in its cemetery or the special care of any lot, grave, crypt, or niche or family mausoleum or memorial, marker, or monument in its cemetery. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4436 Detail]

Download: Illinois-2019-HB4436-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4436 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
760 ILCS 100/2 from Ch. 21, par. 64.2
760 ILCS 100/3 from Ch. 21, par. 64.3
Amends the Cemetery Care Act. Provides that the net income of a cemetery authority does not include any capital gains from the investment of any gift, grant, contribution, payment, legacy, or sum of money, funds, securities, or property of any kind given to it for the care of its cemetery or any lot, grace, crypt, or niche in its cemetery or the special care of any lot, grave, crypt, or niche or family mausoleum or memorial, marker, or monument in its cemetery. Effective immediately.
LRB101 15876 LNS 66017 b
A BILL FOR
HB4436 LRB101 15876 LNS 66017 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Cemetery Care Act is amended by changing
Sections 2 and 3 as follows:
(760 ILCS 100/2) (from Ch. 21, par. 64.2)
Sec. 2. Definitions. The following words, terms and phrases
used in this Act, for the purpose of this Act, have the
following meanings:
"Person" means any person, partnership, association,
corporation, or other entity.
"Trustee" means any person authorized to hold funds under
this Act.
"Capital gains" means a profit that results from a
disposition of a capital asset, such as stock, bonds, or real
estate, where the amount realized on the disposition exceeds
the purchase price.
"Comptroller" means the Comptroller of the State of
Illinois.
"Care" means the maintenance of a cemetery and of the lots,
graves, crypts, niches, family mausoleums, memorials, and
markers therein; including: (i) the cutting and trimming of
lawn, shrubs, and trees at reasonable intervals; (ii) keeping

HB4436 - 2 - LRB101 15876 LNS 66017 b
in repair the drains, water lines, roads, buildings, fences,
and other structures, in keeping with a well maintained
cemetery; (iii) maintenance of machinery, tools, and equipment
for such care; (iv) compensation of employees, payment of
insurance premiums, and reasonable payments for employees
pension and other benefits plans; and (v) to the extent surplus
income from the care fund is available, the payment of overhead
expenses necessary for such purposes and for maintaining
necessary records of lot ownership, transfers, and burials.
"Care funds" as distinguished from receipts from annual
charges or gifts for current or annual care, means any realty
or personalty impressed with a trust by the terms of any gift,
grant, contribution, payment, legacy, or pursuant to contract,
accepted by any cemetery authority owning, operating,
controlling or managing a privately operated cemetery, or by
any trustee or licensee, agent or custodian for the same, under
Section 3 of this Act, and the amounts set aside under Section
4 of this Act, and any income accumulated therefrom, where
legally so directed by the terms of the transaction by which
the principal was established.
"Cemetery" means any land or structure in this State
dedicated to and used, or intended to be used, for the
interment of human remains.
"Cemetery authority" means any person, firm, corporation,
trustee, partnership, association or municipality owning,
operating, controlling or managing a cemetery or holding lands

HB4436 - 3 - LRB101 15876 LNS 66017 b
for burial grounds or burial purposes in this State.
"Mausoleum crypt" means a space in a mausoleum used or
intended to be used, above or under ground, to entomb human
remains.
"Family burying ground" means a cemetery in which no lots
are sold to the public and in which interments are restricted
to a group of persons related to each other by blood or
marriage.
"Fraternal cemetery" means a cemetery owned, operated,
controlled, or managed by any fraternal organization or
auxiliary organizations thereof, in which the sale of lots,
graves, crypts or niches is restricted principally to its
members.
"Grave" means a space of ground in a cemetery, used, or
intended to be used, for burial.
"Investment Company Act of 1940" means Title 15, of the
United States Code, Sections 80a-1 to 80a-51, inclusive, as
amended.
"Investment Company" means any issuer (a) whose securities
are purchasable only with care funds or trust funds, or both;
and (b) which is an open and diversified management company as
defined in and registered under the "Investment Company Act of
1940"; and (c) which has entered into an agreement with the
Comptroller containing such provisions as the Comptroller by
regulation reasonably requires for the proper administration
of this Act.

HB4436 - 4 - LRB101 15876 LNS 66017 b
"Municipal cemetery" means a cemetery owned, operated,
controlled or managed by any city, village, incorporated town,
township, county, or other municipal corporation, political
subdivision, or instrumentality thereof authorized by law to
own, operate, or manage a cemetery.
"Niche" means a space in a columbarium used or intended to
be used, for inurnment of cremated human remains.
"Principal" means an original sum invested and any capital
gains.
"Privately operated cemetery" means any entity that offers
interment rights, entombment rights, or inurnment rights,
other than a fraternal, municipal, State, federal or religious
cemetery or a family burying ground.
"Religious cemetery" means a cemetery owned, operated,
controlled, or managed by any recognized church, religious
society, association or denomination, or by any cemetery
authority or any corporation administering, or through which is
administered, the temporalities of any recognized church,
religious society, association or denomination.
"State or federal cemetery" means a cemetery owned,
operated, controlled, or managed by any State or the federal
government or any political subdivision or instrumentality
thereof.
"Entombment right" means the right to place individual
human remains or individual cremated human remains in a
specific mausoleum crypt or lawn crypt selected by the consumer

HB4436 - 5 - LRB101 15876 LNS 66017 b
for use as a final resting place.
"Interment right" means the right to place individual human
remains or cremated human remains in a specific underground
location selected by the consumer for use as a final resting
place.
"Inurnment right" means the right to place individual
cremated human remains in a specific niche selected by the
consumer for use as a final resting place.
"Lawn crypt" means a permanent underground crypt usually
constructed of reinforced concrete or similar material
installed in multiple units for the entombment of human
remains.
"Imputed value" means the retail price of comparable rights
within the same or similar area of the cemetery.
(Source: P.A. 92-651, eff. 7-11-02.)
(760 ILCS 100/3) (from Ch. 21, par. 64.3)
Sec. 3. Gifts and contributions - Trust funds. Any cemetery
authority is hereby authorized and empowered to accept any
gift, grant, contribution, payment, legacy, or pursuant to
contract, any sum of money, funds, securities or property of
any kind, or the income or avails thereof, and to establish a
trust fund to hold the same in perpetuity for the care of its
cemetery, or for the care of any lot, grave, crypt or niche in
its cemetery; or for the special care of any lot, grave, crypt
or niche or of any family mausoleum or memorial, marker, or

HB4436 - 6 - LRB101 15876 LNS 66017 b
monument in its cemetery.
The cemetery authority shall act as trustee of all amounts
received for care until they have been deposited into the trust
fund established under this Section. The cemetery authority may
continue to be the trustee of up to $500,000 of care funds that
have been deposited into the trust fund, but the cemetery
authority must retain an independent trustee for any amount of
care funds held in trust in excess of that $500,000. A cemetery
authority holding care funds in excess of $500,000 on the
effective date of this amendatory Act of 1996 shall have 36
months to retain an independent trustee for the excess amounts
held in trust; any other cemetery authority must retain an
independent trustee for its care funds in excess of $500,000 as
soon as may be practical.
No gift, grant, legacy, payment or other contribution shall
be invalid by reason of any indefiniteness or uncertainty as to
the beneficiary designated in the instrument creating the gift,
grant, legacy, payment or other contribution. If any gift,
grant, legacy, payment or other contribution consists of
non-income producing property, the cemetery authority
accepting it is authorized and empowered to sell such property
and to invest the funds obtained in accordance with the
provisions of the next succeeding paragraph.
The care funds authorized by this Section and provided for
in Section 4 of this Act shall be held intact and, unless
otherwise restricted by the terms of the gift, grant, legacy,

HB4436 - 7 - LRB101 15876 LNS 66017 b
contribution, payment, contract or other payment, as to
investments made after June 11, 1951 the trustee of the care
funds of the cemetery authority, in acquiring, investing,
reinvesting, exchanging, retaining, selling and managing
property for any such trust, shall exercise the judgment and
care under the circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to speculation
but in regard to the permanent disposition of their funds,
considering the probable income as well as the probable safety
of their capital. Within the limitations of the foregoing
standard, the trustee of the care funds of the cemetery
authority is authorized to acquire and retain every kind of
property, real, personal or mixed, and every kind of
investment, including specifically but without limiting the
generality of the foregoing, bonds, debentures and other
corporate obligations, preferred or common stocks and real
estate mortgages, which persons of prudence, discretion and
intelligence acquire or retain for their own account. Within
the limitations of the foregoing standard, the trustee is
authorized to retain property properly acquired, without
limitation as to time and without regard to its suitability for
original purchase. The care funds authorized by this Section
may be commingled with other trust funds received by such
cemetery authority for the care of its cemetery or for the care
or special care of any lot, grave, crypt, niche, private

HB4436 - 8 - LRB101 15876 LNS 66017 b
mausoleum, memorial, marker, or monument in its cemetery,
whether received by gift, grant, legacy, contribution,
payment, contract or other conveyance heretofore or hereafter
made to such cemetery authority. Such care funds may be
invested with common trust funds as provided in The Common
Trust Fund Act. The net income only from the investment of such
care funds shall be allocated and used for the purposes
specified in the transaction by which the principal was
established in the proportion that each contribution bears to
the entire sum invested. Net income does not include any
capital gains from the investment of such care funds.
(Source: P.A. 89-615, eff. 8-9-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.