(815 ILCS 390/1)(from Ch. 21, par. 201) Sec. 1. Purpose. It is the purpose of this Act to assure adequate protection for those who contract through pre‑need contracts for the purchase of certain cemetery merchandise and cemetery services and undeveloped interment, entombment or inurnment space, when the seller may delay delivery or performance more than 120 days following initial payment on the account. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/2)(from Ch. 21, par. 202) Sec. 2. This Act applies to all persons, except religious, municipal, State and federal cemeteries, that offer for sale or sell cemetery merchandise, cemetery services, or undeveloped interment, entombment or inurnment spaces on a pre‑need basis. Nothing in this Act shall be deemed to apply to pre‑arranged funeral programs covered under the Illinois Funeral or Burial Funds Act. (Source: P.A. 88‑477.)
(815 ILCS 390/3)(from Ch. 21, par. 203) Sec. 3. Short title. This Act may be cited as the Illinois Pre‑Need Cemetery Sales Act. (Source: P.A. 90‑47, eff. 1‑1‑98.)
(815 ILCS 390/4)(from Ch. 21, par. 204) Sec. 4. Definitions. As used in this Act, the following terms shall have the meaning specified: (A) "Pre‑need sales contract" or "Pre‑need sales" means any agreement or contract or series or combination of agreements or contracts which have for a purpose the sale of cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces where the terms of such sale require payment or payments to be made at a currently determinable time and where the merchandise, services or completed spaces are to be provided more than 120 days following the initial payment on the account. An agreement or contract for a memorial, marker, or monument shall not be deemed a "pre‑need sales contract" or a "pre‑need sale" if the memorial, marker, or monument is delivered within 180 days following initial payment on the account and work thereon commences a reasonably short time after initial payment on the account. (B) "Delivery" occurs when: (1) Physical possession of the merchandise is
transferred or the easement for burial rights in a completed space is executed, delivered and transferred to the buyer; or
(2) Following authorization by a purchaser under a
pre‑need sales contract, title to the merchandise has been transferred to the buyer and the merchandise has been paid for and is in the possession of the seller who has placed it, until needed, at the site of its ultimate use; or
(3) Following authorization by a purchaser under a
pre‑need sales contract, the merchandise has been permanently identified with the name of the buyer or the beneficiary and delivered to a licensed and bonded warehouse and both title to the merchandise and a warehouse receipt have been delivered to the purchaser or beneficiary and a copy of the warehouse receipt has been delivered to the licensee for retention in its files; except that in the case of outer burial containers, the use of a licensed and bonded warehouse as set forth in this paragraph shall not constitute delivery for purposes of this Act. Nothing herein shall prevent a seller from perfecting a security interest in accordance with the Uniform Commercial Code on any merchandise covered under this Act.
All warehouse facilities to which sellers deliver
merchandise pursuant to this Act shall:
(i) be either located in the State of Illinois
or qualify as a foreign warehouse facility as defined herein;
(ii) submit to the Comptroller not less than
annually, by March 1 of each year, a report of all cemetery merchandise stored by each licensee under this Act which is in storage on the date of the report;
(iii) permit the Comptroller or his designee at
any time to examine stored merchandise and to examine any documents pertaining thereto;
(iv) submit evidence satisfactory to the
Comptroller that all merchandise stored by said warehouse for licensees under this Act is insured for casualty or other loss normally assumed by a bailee for hire;
(v) demonstrate to the Comptroller that the
warehouse has procured and is maintaining a performance bond in the form, content and amount sufficient to unconditionally guarantee to the purchaser or beneficiary the prompt shipment of the cemetery merchandise.
(C) "Cemetery merchandise" means items of personal property normally sold by a cemetery authority not covered under the Illinois Funeral or Burial Funds Act, including but not limited to: (1) memorials, (2) markers, (3) monuments, (4) foundations, and (5) outer burial containers. (D) "Undeveloped interment, entombment or inurnment spaces" or "undeveloped spaces" means any space to be used for the reception of human remains that is not completely and totally constructed at the time of initial payment therefor in a: (1) lawn crypt, (2) mausoleum, (3) garden crypt, (4) columbarium, or (5) cemetery section. (E) "Cemetery services" means those services customarily performed by cemetery or crematory personnel in connection with the interment, entombment, inurnment or cremation of a dead human body. (F) "Cemetery section" means a grouping of spaces intended to be developed simultaneously for the purpose of interring human remains. (G) "Columbarium" means an arrangement of niches that may be an entire building, a complete room, a series of special indoor alcoves, a bank along a corridor or part of an outdoor garden setting that is constructed of permanent material such as bronze, marble, brick, stone or concrete for the inurnment of human remains. (H) "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. (I) "Mausoleum" or "garden crypt" means a grouping of spaces constructed of reinforced concrete or similar material constructed or assembled above the ground for entombing human remains. (J) "Memorials, markers and monuments" means the object usually comprised of a permanent material such as granite or bronze used to identify and memorialize the deceased. (K) "Foundations" means those items used to affix or support a memorial or monument to the ground in connection with the installation of a memorial, marker or monument. (L) "Person" means an individual, corporation, partnership, joint venture, business trust, voluntary organization or any other form of entity. (M) "Seller" means any person selling or offering for sale cemetery merchandise, cemetery services or undeveloped interment, entombment, or inurnment spaces in accordance with a pre‑need sales contract. (N) "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. (O) "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. "Municipal cemetery" also includes a cemetery placed in receivership pursuant to this Act while such cemetery is in receivership. (O‑1) "Outer burial container" means a container made of concrete, steel, wood, fiberglass, or similar material, used solely at the interment site, and designed and used exclusively to surround or enclose a separate casket and to support the earth above such casket, commonly known as a burial vault, grave box, or grave liner, but not including a lawn crypt. (P) "Sales price" means the gross amount paid by a purchaser on a pre‑need sales contract for cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces, excluding sales taxes, credit life insurance premiums, finance charges and Cemetery Care Act contributions. (Q) (Blank). (R) "Provider" means a person who is responsible for performing cemetery services or furnishing cemetery merchandise, interment spaces, entombment spaces, or inurnment spaces under a pre‑need sales contract. (S) "Purchaser" or "buyer" means the person who originally paid the money under or in connection with a pre‑need sales contract. (T) "Parent company" means a corporation owning more than 12 cemeteries or funeral homes in more than one state. (U) "Foreign warehouse facility" means a warehouse facility now or hereafter located in any state or territory of the United States, including the District of Columbia, other than the State of Illinois. A foreign warehouse facility shall be deemed to have appointed the Comptroller to be its true and lawful attorney upon whom may be served all legal process in any action or proceeding against it relating to or growing out of this Act, and the acceptance of the delivery of stored merchandise under this Act shall be signification of its agreement that any such process against it which is so served, shall be of the same legal force and validity as though served upon it personally. Service of such process shall be made by delivering to and leaving with the Comptroller, or any agent having charge of the Comptroller's Department of Cemetery and Burial Trusts, a copy of such process and such service shall be sufficient service upon such foreign warehouse facility if notice of such service and a copy of the process are, within 10 days thereafter, sent by registered mail by the plaintiff to the foreign warehouse facility at its principal office and the plaintiff's affidavit of compliance herewith is appended to the summons. The Comptroller shall keep a record of all process served upon him under this Section and shall record therein the time of such service. (Source: P.A. 96‑879, eff. 2‑2‑10.)
(815 ILCS 390/5)(from Ch. 21, par. 205) Sec. 5. It is unlawful for any seller directly or indirectly doing business within this State to engage in pre‑need sales without a license issued by the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(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 $25 application fee. 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 390/7)(from Ch. 21, par. 207) Sec. 7. The Comptroller may refuse to issue or may suspend or revoke a license on any of the following grounds: (a) The applicant or licensee has made any misrepresentations or false statements or concealed any material fact; (b) The applicant or licensee is insolvent; (c) The applicant or licensee has been engaged in business practices that work a fraud; (d) The applicant or licensee has refused to give pertinent data to the Comptroller; (e) The applicant or licensee has failed to satisfy any enforceable judgment or decree rendered by any court of competent jurisdiction against the applicant; (f) The applicant or licensee has conducted or is about to conduct business in a fraudulent manner; (g) The trust agreement is not in compliance with State or federal law; (h) The pre‑construction performance bond, if applicable, is not satisfactory to the Comptroller; (i) The fidelity bond is not satisfactory to the Comptroller; (j) As to any individual listed in the license application as required pursuant to Section 6, that individual has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner, has been convicted of any felony or misdemeanor an essential element of which is fraud, has had a judgment rendered against him or her based on fraud in any civil litigation, has failed to satisfy any enforceable judgment or decree rendered against him by any court of competent jurisdiction, or has been convicted of any felony or any theft‑related offense; (k) The applicant or licensee has failed to make the annual report required by this Act or to comply with a final order, decision, or finding of the Comptroller made pursuant to this Act; (l) The applicant or licensee, including any member, officer, or director thereof if the applicant or licensee is a firm, partnership, association, or corporation and any shareholder holding more than 10% of the corporate stock, has violated any provision of this Act or any regulation or order made by the Comptroller under this Act; or (m) The Comptroller finds any fact or condition existing which, if it had existed at the time of the original application for such license would have warranted the Comptroller in refusing the issuance of the license. (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 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 390/8a) Sec. 8a. Investigation of unlawful practices. If it appears to the Comptroller that a person has engaged in, is engaging in, or is about to engage in any practice in violation of this Act, the Comptroller may: (1) require that person to file on such terms as the
Comptroller prescribes a statement or report in writing, under oath or otherwise, containing all information the Comptroller may consider necessary to ascertain whether a licensee is in compliance with this Act, or whether an unlicensed person is engaging in activities for which a license is required;
(2) examine under oath any person in connection with
the books and records pertaining to or having an impact upon the trust funds required to be maintained pursuant to this Act;
(3) examine any books and records of the licensee,
trustee, or investment advisor that the Comptroller may consider necessary to ascertain compliance with this Act; and
(4) require the production of a copy of any record,
book, document, account, or paper that is produced in accordance with this Act and retain it in his or her possession until the completion of all proceedings in connection with which it is produced.
(Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/8b) Sec. 8b. Service. Service by the Comptroller of any notice requiring a person to file a statement or report shall be made: (1) personally by delivery of a duly executed copy
thereof to the person to be served or, if that person is not a natural person, in the manner provided in the Civil Practice Law when a complaint is filed; or
(2) by mailing by certified mail a duly executed
copy thereof to the person to be served at his or her last known abode or principal place of business within this State.
(Source: P.A. 89‑615, eff. 8‑9‑96.)
(815 ILCS 390/9)(from Ch. 21, par. 209) Sec. 9. The Comptroller may upon his own motion investigate the actions of any person providing, selling, or offering pre‑need sales contracts or of any applicant or any person or persons holding or claiming to hold a license under this Act. The Comptroller shall make such an investigation on receipt of the verified written complaint of any person setting forth facts which, if proved, would constitute grounds for refusal, suspension, or revocation of a license. Before refusing to issue, and before suspension or revocation of a license, the Comptroller shall hold a hearing to determine whether the applicant or licensee, hereafter called the respondent, is entitled to hold such a license. At least 10 days prior to the date set for such hearing, the Comptroller shall notify the respondent in writing that on the date designated a hearing will be held to determine his eligibility for a license and that he may appear in person or by counsel. Such written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in his latest notification to the Comptroller and shall include sufficient information to inform the respondent of the general nature of the charge. At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Comptroller may reasonably continue such hearing from time to time. The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition or by exhibit, in the same manner and with the same fees and mileage as prescribed in judicial proceedings in civil cases. Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing which the Comptroller is authorized to conduct. The Comptroller, at his expense, shall provide a certified shorthand reporter to take down the testimony and preserve a record of all proceedings at the hearing of any case involving the refusal to issue a license, the suspension or revocation of a license, the imposition of a monetary penalty, or the referral of a case for criminal prosecution. The record of any such proceeding shall consist of the notice of hearing, complaint, all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony and the report and orders of the Comptroller. Copies of the transcript of such record may be purchased from the certified shorthand reporter who prepared the record or from the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/10)(from Ch. 21, par. 210) Sec. 10. Any circuit court may, upon application of the Comptroller or of the applicant or licensee against whom proceedings under Section 9 are pending, enter an order requiring witnesses to attend and testify, and requiring the production of documents, papers, files, books and records in connection with any hearing in any proceedings under that Section. Failure to obey such court order may result in contempt proceedings. (Source: P.A. 84‑239.)
(815 ILCS 390/11)(from Ch. 21, par. 211) Sec. 11. Any person affected by a final administrative decision of the Comptroller may have such decision reviewed judicially by the circuit court of the county where such person resides, or in the case of a corporation, where the registered office is located. If the plaintiff in the review proceeding is not a resident of this State, venue shall be in Sangamon County. The provisions of the "Administrative Review Law", approved August 19, 1981, all amendments and modifications thereto, and any rules adopted under it govern all proceedings for the judicial review of final administrative decisions of the Comptroller. The term "administrative decision" is defined as in the "Administrative Review Law". The Comptroller is not required to certify the record of the proceeding unless the plaintiff in the review proceedings has purchased a copy of the transcript from the certified shorthand reporter who prepared the record or from the Comptroller. Exhibits shall be certified without cost. (Source: P.A. 84‑239.)
(815 ILCS 390/12)(from Ch. 21, par. 212) Sec. 12. License revocation or suspension. (a) The Comptroller may, upon determination that grounds exist for the revocation or suspension of a license issued under this Act, revoke or suspend, if appropriate, the license issued to a licensee or to a particular branch office location with respect to which the grounds for revocation or suspension may occur or exist. (b) Upon the revocation or suspension of any license, the licensee shall immediately surrender the license or licenses to the Comptroller. If the licensee fails to do so, the Comptroller has the right to seize the license or licenses. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/1)(from Ch. 21, par. 201) Sec. 1. Purpose. It is the purpose of this Act to assure adequate protection for those who contract through pre‑need contracts for the purchase of certain cemetery merchandise and cemetery services and undeveloped interment, entombment or inurnment space, when the seller may delay delivery or performance more than 120 days following initial payment on the account. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/2)(from Ch. 21, par. 202) Sec. 2. This Act applies to all persons, except religious, municipal, State and federal cemeteries, that offer for sale or sell cemetery merchandise, cemetery services, or undeveloped interment, entombment or inurnment spaces on a pre‑need basis. Nothing in this Act shall be deemed to apply to pre‑arranged funeral programs covered under the Illinois Funeral or Burial Funds Act. (Source: P.A. 88‑477.)
(815 ILCS 390/3)(from Ch. 21, par. 203) Sec. 3. Short title. This Act may be cited as the Illinois Pre‑Need Cemetery Sales Act. (Source: P.A. 90‑47, eff. 1‑1‑98.)
(815 ILCS 390/4)(from Ch. 21, par. 204) Sec. 4. Definitions. As used in this Act, the following terms shall have the meaning specified: (A) "Pre‑need sales contract" or "Pre‑need sales" means any agreement or contract or series or combination of agreements or contracts which have for a purpose the sale of cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces where the terms of such sale require payment or payments to be made at a currently determinable time and where the merchandise, services or completed spaces are to be provided more than 120 days following the initial payment on the account. An agreement or contract for a memorial, marker, or monument shall not be deemed a "pre‑need sales contract" or a "pre‑need sale" if the memorial, marker, or monument is delivered within 180 days following initial payment on the account and work thereon commences a reasonably short time after initial payment on the account. (B) "Delivery" occurs when: (1) Physical possession of the merchandise is
transferred or the easement for burial rights in a completed space is executed, delivered and transferred to the buyer; or
(2) Following authorization by a purchaser under a
pre‑need sales contract, title to the merchandise has been transferred to the buyer and the merchandise has been paid for and is in the possession of the seller who has placed it, until needed, at the site of its ultimate use; or
(3) Following authorization by a purchaser under a
pre‑need sales contract, the merchandise has been permanently identified with the name of the buyer or the beneficiary and delivered to a licensed and bonded warehouse and both title to the merchandise and a warehouse receipt have been delivered to the purchaser or beneficiary and a copy of the warehouse receipt has been delivered to the licensee for retention in its files; except that in the case of outer burial containers, the use of a licensed and bonded warehouse as set forth in this paragraph shall not constitute delivery for purposes of this Act. Nothing herein shall prevent a seller from perfecting a security interest in accordance with the Uniform Commercial Code on any merchandise covered under this Act.
All warehouse facilities to which sellers deliver
merchandise pursuant to this Act shall:
(i) be either located in the State of Illinois
or qualify as a foreign warehouse facility as defined herein;
(ii) submit to the Comptroller not less than
annually, by March 1 of each year, a report of all cemetery merchandise stored by each licensee under this Act which is in storage on the date of the report;
(iii) permit the Comptroller or his designee at
any time to examine stored merchandise and to examine any documents pertaining thereto;
(iv) submit evidence satisfactory to the
Comptroller that all merchandise stored by said warehouse for licensees under this Act is insured for casualty or other loss normally assumed by a bailee for hire;
(v) demonstrate to the Comptroller that the
warehouse has procured and is maintaining a performance bond in the form, content and amount sufficient to unconditionally guarantee to the purchaser or beneficiary the prompt shipment of the cemetery merchandise.
(C) "Cemetery merchandise" means items of personal property normally sold by a cemetery authority not covered under the Illinois Funeral or Burial Funds Act, including but not limited to: (1) memorials, (2) markers, (3) monuments, (4) foundations, and (5) outer burial containers. (D) "Undeveloped interment, entombment or inurnment spaces" or "undeveloped spaces" means any space to be used for the reception of human remains that is not completely and totally constructed at the time of initial payment therefor in a: (1) lawn crypt, (2) mausoleum, (3) garden crypt, (4) columbarium, or (5) cemetery section. (E) "Cemetery services" means those services customarily performed by cemetery or crematory personnel in connection with the interment, entombment, inurnment or cremation of a dead human body. (F) "Cemetery section" means a grouping of spaces intended to be developed simultaneously for the purpose of interring human remains. (G) "Columbarium" means an arrangement of niches that may be an entire building, a complete room, a series of special indoor alcoves, a bank along a corridor or part of an outdoor garden setting that is constructed of permanent material such as bronze, marble, brick, stone or concrete for the inurnment of human remains. (H) "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. (I) "Mausoleum" or "garden crypt" means a grouping of spaces constructed of reinforced concrete or similar material constructed or assembled above the ground for entombing human remains. (J) "Memorials, markers and monuments" means the object usually comprised of a permanent material such as granite or bronze used to identify and memorialize the deceased. (K) "Foundations" means those items used to affix or support a memorial or monument to the ground in connection with the installation of a memorial, marker or monument. (L) "Person" means an individual, corporation, partnership, joint venture, business trust, voluntary organization or any other form of entity. (M) "Seller" means any person selling or offering for sale cemetery merchandise, cemetery services or undeveloped interment, entombment, or inurnment spaces in accordance with a pre‑need sales contract. (N) "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. (O) "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. "Municipal cemetery" also includes a cemetery placed in receivership pursuant to this Act while such cemetery is in receivership. (O‑1) "Outer burial container" means a container made of concrete, steel, wood, fiberglass, or similar material, used solely at the interment site, and designed and used exclusively to surround or enclose a separate casket and to support the earth above such casket, commonly known as a burial vault, grave box, or grave liner, but not including a lawn crypt. (P) "Sales price" means the gross amount paid by a purchaser on a pre‑need sales contract for cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces, excluding sales taxes, credit life insurance premiums, finance charges and Cemetery Care Act contributions. (Q) (Blank). (R) "Provider" means a person who is responsible for performing cemetery services or furnishing cemetery merchandise, interment spaces, entombment spaces, or inurnment spaces under a pre‑need sales contract. (S) "Purchaser" or "buyer" means the person who originally paid the money under or in connection with a pre‑need sales contract. (T) "Parent company" means a corporation owning more than 12 cemeteries or funeral homes in more than one state. (U) "Foreign warehouse facility" means a warehouse facility now or hereafter located in any state or territory of the United States, including the District of Columbia, other than the State of Illinois. A foreign warehouse facility shall be deemed to have appointed the Comptroller to be its true and lawful attorney upon whom may be served all legal process in any action or proceeding against it relating to or growing out of this Act, and the acceptance of the delivery of stored merchandise under this Act shall be signification of its agreement that any such process against it which is so served, shall be of the same legal force and validity as though served upon it personally. Service of such process shall be made by delivering to and leaving with the Comptroller, or any agent having charge of the Comptroller's Department of Cemetery and Burial Trusts, a copy of such process and such service shall be sufficient service upon such foreign warehouse facility if notice of such service and a copy of the process are, within 10 days thereafter, sent by registered mail by the plaintiff to the foreign warehouse facility at its principal office and the plaintiff's affidavit of compliance herewith is appended to the summons. The Comptroller shall keep a record of all process served upon him under this Section and shall record therein the time of such service. (Source: P.A. 96‑879, eff. 2‑2‑10.)
(815 ILCS 390/5)(from Ch. 21, par. 205) Sec. 5. It is unlawful for any seller directly or indirectly doing business within this State to engage in pre‑need sales without a license issued by the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(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 $25 application fee. 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 390/7)(from Ch. 21, par. 207) Sec. 7. The Comptroller may refuse to issue or may suspend or revoke a license on any of the following grounds: (a) The applicant or licensee has made any misrepresentations or false statements or concealed any material fact; (b) The applicant or licensee is insolvent; (c) The applicant or licensee has been engaged in business practices that work a fraud; (d) The applicant or licensee has refused to give pertinent data to the Comptroller; (e) The applicant or licensee has failed to satisfy any enforceable judgment or decree rendered by any court of competent jurisdiction against the applicant; (f) The applicant or licensee has conducted or is about to conduct business in a fraudulent manner; (g) The trust agreement is not in compliance with State or federal law; (h) The pre‑construction performance bond, if applicable, is not satisfactory to the Comptroller; (i) The fidelity bond is not satisfactory to the Comptroller; (j) As to any individual listed in the license application as required pursuant to Section 6, that individual has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner, has been convicted of any felony or misdemeanor an essential element of which is fraud, has had a judgment rendered against him or her based on fraud in any civil litigation, has failed to satisfy any enforceable judgment or decree rendered against him by any court of competent jurisdiction, or has been convicted of any felony or any theft‑related offense; (k) The applicant or licensee has failed to make the annual report required by this Act or to comply with a final order, decision, or finding of the Comptroller made pursuant to this Act; (l) The applicant or licensee, including any member, officer, or director thereof if the applicant or licensee is a firm, partnership, association, or corporation and any shareholder holding more than 10% of the corporate stock, has violated any provision of this Act or any regulation or order made by the Comptroller under this Act; or (m) The Comptroller finds any fact or condition existing which, if it had existed at the time of the original application for such license would have warranted the Comptroller in refusing the issuance of the license. (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 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 390/8a) Sec. 8a. Investigation of unlawful practices. If it appears to the Comptroller that a person has engaged in, is engaging in, or is about to engage in any practice in violation of this Act, the Comptroller may: (1) require that person to file on such terms as the
Comptroller prescribes a statement or report in writing, under oath or otherwise, containing all information the Comptroller may consider necessary to ascertain whether a licensee is in compliance with this Act, or whether an unlicensed person is engaging in activities for which a license is required;
(2) examine under oath any person in connection with
the books and records pertaining to or having an impact upon the trust funds required to be maintained pursuant to this Act;
(3) examine any books and records of the licensee,
trustee, or investment advisor that the Comptroller may consider necessary to ascertain compliance with this Act; and
(4) require the production of a copy of any record,
book, document, account, or paper that is produced in accordance with this Act and retain it in his or her possession until the completion of all proceedings in connection with which it is produced.
(Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/8b) Sec. 8b. Service. Service by the Comptroller of any notice requiring a person to file a statement or report shall be made: (1) personally by delivery of a duly executed copy
thereof to the person to be served or, if that person is not a natural person, in the manner provided in the Civil Practice Law when a complaint is filed; or
(2) by mailing by certified mail a duly executed
copy thereof to the person to be served at his or her last known abode or principal place of business within this State.
(Source: P.A. 89‑615, eff. 8‑9‑96.)
(815 ILCS 390/9)(from Ch. 21, par. 209) Sec. 9. The Comptroller may upon his own motion investigate the actions of any person providing, selling, or offering pre‑need sales contracts or of any applicant or any person or persons holding or claiming to hold a license under this Act. The Comptroller shall make such an investigation on receipt of the verified written complaint of any person setting forth facts which, if proved, would constitute grounds for refusal, suspension, or revocation of a license. Before refusing to issue, and before suspension or revocation of a license, the Comptroller shall hold a hearing to determine whether the applicant or licensee, hereafter called the respondent, is entitled to hold such a license. At least 10 days prior to the date set for such hearing, the Comptroller shall notify the respondent in writing that on the date designated a hearing will be held to determine his eligibility for a license and that he may appear in person or by counsel. Such written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in his latest notification to the Comptroller and shall include sufficient information to inform the respondent of the general nature of the charge. At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Comptroller may reasonably continue such hearing from time to time. The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition or by exhibit, in the same manner and with the same fees and mileage as prescribed in judicial proceedings in civil cases. Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing which the Comptroller is authorized to conduct. The Comptroller, at his expense, shall provide a certified shorthand reporter to take down the testimony and preserve a record of all proceedings at the hearing of any case involving the refusal to issue a license, the suspension or revocation of a license, the imposition of a monetary penalty, or the referral of a case for criminal prosecution. The record of any such proceeding shall consist of the notice of hearing, complaint, all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony and the report and orders of the Comptroller. Copies of the transcript of such record may be purchased from the certified shorthand reporter who prepared the record or from the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/10)(from Ch. 21, par. 210) Sec. 10. Any circuit court may, upon application of the Comptroller or of the applicant or licensee against whom proceedings under Section 9 are pending, enter an order requiring witnesses to attend and testify, and requiring the production of documents, papers, files, books and records in connection with any hearing in any proceedings under that Section. Failure to obey such court order may result in contempt proceedings. (Source: P.A. 84‑239.)
(815 ILCS 390/11)(from Ch. 21, par. 211) Sec. 11. Any person affected by a final administrative decision of the Comptroller may have such decision reviewed judicially by the circuit court of the county where such person resides, or in the case of a corporation, where the registered office is located. If the plaintiff in the review proceeding is not a resident of this State, venue shall be in Sangamon County. The provisions of the "Administrative Review Law", approved August 19, 1981, all amendments and modifications thereto, and any rules adopted under it govern all proceedings for the judicial review of final administrative decisions of the Comptroller. The term "administrative decision" is defined as in the "Administrative Review Law". The Comptroller is not required to certify the record of the proceeding unless the plaintiff in the review proceedings has purchased a copy of the transcript from the certified shorthand reporter who prepared the record or from the Comptroller. Exhibits shall be certified without cost. (Source: P.A. 84‑239.)
(815 ILCS 390/12)(from Ch. 21, par. 212) Sec. 12. License revocation or suspension. (a) The Comptroller may, upon determination that grounds exist for the revocation or suspension of a license issued under this Act, revoke or suspend, if appropriate, the license issued to a licensee or to a particular branch office location with respect to which the grounds for revocation or suspension may occur or exist. (b) Upon the revocation or suspension of any license, the licensee shall immediately surrender the license or licenses to the Comptroller. If the licensee fails to do so, the Comptroller has the right to seize the license or licenses. (Source: P.A. 92‑419, eff. 1‑1‑02.)
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(815 ILCS 390/1)(from Ch. 21, par. 201) Sec. 1. Purpose. It is the purpose of this Act to assure adequate protection for those who contract through pre‑need contracts for the purchase of certain cemetery merchandise and cemetery services and undeveloped interment, entombment or inurnment space, when the seller may delay delivery or performance more than 120 days following initial payment on the account. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/2)(from Ch. 21, par. 202) Sec. 2. This Act applies to all persons, except religious, municipal, State and federal cemeteries, that offer for sale or sell cemetery merchandise, cemetery services, or undeveloped interment, entombment or inurnment spaces on a pre‑need basis. Nothing in this Act shall be deemed to apply to pre‑arranged funeral programs covered under the Illinois Funeral or Burial Funds Act. (Source: P.A. 88‑477.)
(815 ILCS 390/3)(from Ch. 21, par. 203) Sec. 3. Short title. This Act may be cited as the Illinois Pre‑Need Cemetery Sales Act. (Source: P.A. 90‑47, eff. 1‑1‑98.)
(815 ILCS 390/4)(from Ch. 21, par. 204) Sec. 4. Definitions. As used in this Act, the following terms shall have the meaning specified: (A) "Pre‑need sales contract" or "Pre‑need sales" means any agreement or contract or series or combination of agreements or contracts which have for a purpose the sale of cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces where the terms of such sale require payment or payments to be made at a currently determinable time and where the merchandise, services or completed spaces are to be provided more than 120 days following the initial payment on the account. An agreement or contract for a memorial, marker, or monument shall not be deemed a "pre‑need sales contract" or a "pre‑need sale" if the memorial, marker, or monument is delivered within 180 days following initial payment on the account and work thereon commences a reasonably short time after initial payment on the account. (B) "Delivery" occurs when: (1) Physical possession of the merchandise is
transferred or the easement for burial rights in a completed space is executed, delivered and transferred to the buyer; or
(2) Following authorization by a purchaser under a
pre‑need sales contract, title to the merchandise has been transferred to the buyer and the merchandise has been paid for and is in the possession of the seller who has placed it, until needed, at the site of its ultimate use; or
(3) Following authorization by a purchaser under a
pre‑need sales contract, the merchandise has been permanently identified with the name of the buyer or the beneficiary and delivered to a licensed and bonded warehouse and both title to the merchandise and a warehouse receipt have been delivered to the purchaser or beneficiary and a copy of the warehouse receipt has been delivered to the licensee for retention in its files; except that in the case of outer burial containers, the use of a licensed and bonded warehouse as set forth in this paragraph shall not constitute delivery for purposes of this Act. Nothing herein shall prevent a seller from perfecting a security interest in accordance with the Uniform Commercial Code on any merchandise covered under this Act.
All warehouse facilities to which sellers deliver
merchandise pursuant to this Act shall:
(i) be either located in the State of Illinois
or qualify as a foreign warehouse facility as defined herein;
(ii) submit to the Comptroller not less than
annually, by March 1 of each year, a report of all cemetery merchandise stored by each licensee under this Act which is in storage on the date of the report;
(iii) permit the Comptroller or his designee at
any time to examine stored merchandise and to examine any documents pertaining thereto;
(iv) submit evidence satisfactory to the
Comptroller that all merchandise stored by said warehouse for licensees under this Act is insured for casualty or other loss normally assumed by a bailee for hire;
(v) demonstrate to the Comptroller that the
warehouse has procured and is maintaining a performance bond in the form, content and amount sufficient to unconditionally guarantee to the purchaser or beneficiary the prompt shipment of the cemetery merchandise.
(C) "Cemetery merchandise" means items of personal property normally sold by a cemetery authority not covered under the Illinois Funeral or Burial Funds Act, including but not limited to: (1) memorials, (2) markers, (3) monuments, (4) foundations, and (5) outer burial containers. (D) "Undeveloped interment, entombment or inurnment spaces" or "undeveloped spaces" means any space to be used for the reception of human remains that is not completely and totally constructed at the time of initial payment therefor in a: (1) lawn crypt, (2) mausoleum, (3) garden crypt, (4) columbarium, or (5) cemetery section. (E) "Cemetery services" means those services customarily performed by cemetery or crematory personnel in connection with the interment, entombment, inurnment or cremation of a dead human body. (F) "Cemetery section" means a grouping of spaces intended to be developed simultaneously for the purpose of interring human remains. (G) "Columbarium" means an arrangement of niches that may be an entire building, a complete room, a series of special indoor alcoves, a bank along a corridor or part of an outdoor garden setting that is constructed of permanent material such as bronze, marble, brick, stone or concrete for the inurnment of human remains. (H) "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. (I) "Mausoleum" or "garden crypt" means a grouping of spaces constructed of reinforced concrete or similar material constructed or assembled above the ground for entombing human remains. (J) "Memorials, markers and monuments" means the object usually comprised of a permanent material such as granite or bronze used to identify and memorialize the deceased. (K) "Foundations" means those items used to affix or support a memorial or monument to the ground in connection with the installation of a memorial, marker or monument. (L) "Person" means an individual, corporation, partnership, joint venture, business trust, voluntary organization or any other form of entity. (M) "Seller" means any person selling or offering for sale cemetery merchandise, cemetery services or undeveloped interment, entombment, or inurnment spaces in accordance with a pre‑need sales contract. (N) "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. (O) "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. "Municipal cemetery" also includes a cemetery placed in receivership pursuant to this Act while such cemetery is in receivership. (O‑1) "Outer burial container" means a container made of concrete, steel, wood, fiberglass, or similar material, used solely at the interment site, and designed and used exclusively to surround or enclose a separate casket and to support the earth above such casket, commonly known as a burial vault, grave box, or grave liner, but not including a lawn crypt. (P) "Sales price" means the gross amount paid by a purchaser on a pre‑need sales contract for cemetery merchandise, cemetery services or undeveloped interment, entombment or inurnment spaces, excluding sales taxes, credit life insurance premiums, finance charges and Cemetery Care Act contributions. (Q) (Blank). (R) "Provider" means a person who is responsible for performing cemetery services or furnishing cemetery merchandise, interment spaces, entombment spaces, or inurnment spaces under a pre‑need sales contract. (S) "Purchaser" or "buyer" means the person who originally paid the money under or in connection with a pre‑need sales contract. (T) "Parent company" means a corporation owning more than 12 cemeteries or funeral homes in more than one state. (U) "Foreign warehouse facility" means a warehouse facility now or hereafter located in any state or territory of the United States, including the District of Columbia, other than the State of Illinois. A foreign warehouse facility shall be deemed to have appointed the Comptroller to be its true and lawful attorney upon whom may be served all legal process in any action or proceeding against it relating to or growing out of this Act, and the acceptance of the delivery of stored merchandise under this Act shall be signification of its agreement that any such process against it which is so served, shall be of the same legal force and validity as though served upon it personally. Service of such process shall be made by delivering to and leaving with the Comptroller, or any agent having charge of the Comptroller's Department of Cemetery and Burial Trusts, a copy of such process and such service shall be sufficient service upon such foreign warehouse facility if notice of such service and a copy of the process are, within 10 days thereafter, sent by registered mail by the plaintiff to the foreign warehouse facility at its principal office and the plaintiff's affidavit of compliance herewith is appended to the summons. The Comptroller shall keep a record of all process served upon him under this Section and shall record therein the time of such service. (Source: P.A. 96‑879, eff. 2‑2‑10.)
(815 ILCS 390/5)(from Ch. 21, par. 205) Sec. 5. It is unlawful for any seller directly or indirectly doing business within this State to engage in pre‑need sales without a license issued by the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(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 $25 application fee. 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 390/7)(from Ch. 21, par. 207) Sec. 7. The Comptroller may refuse to issue or may suspend or revoke a license on any of the following grounds: (a) The applicant or licensee has made any misrepresentations or false statements or concealed any material fact; (b) The applicant or licensee is insolvent; (c) The applicant or licensee has been engaged in business practices that work a fraud; (d) The applicant or licensee has refused to give pertinent data to the Comptroller; (e) The applicant or licensee has failed to satisfy any enforceable judgment or decree rendered by any court of competent jurisdiction against the applicant; (f) The applicant or licensee has conducted or is about to conduct business in a fraudulent manner; (g) The trust agreement is not in compliance with State or federal law; (h) The pre‑construction performance bond, if applicable, is not satisfactory to the Comptroller; (i) The fidelity bond is not satisfactory to the Comptroller; (j) As to any individual listed in the license application as required pursuant to Section 6, that individual has conducted or is about to conduct any business on behalf of the applicant in a fraudulent manner, has been convicted of any felony or misdemeanor an essential element of which is fraud, has had a judgment rendered against him or her based on fraud in any civil litigation, has failed to satisfy any enforceable judgment or decree rendered against him by any court of competent jurisdiction, or has been convicted of any felony or any theft‑related offense; (k) The applicant or licensee has failed to make the annual report required by this Act or to comply with a final order, decision, or finding of the Comptroller made pursuant to this Act; (l) The applicant or licensee, including any member, officer, or director thereof if the applicant or licensee is a firm, partnership, association, or corporation and any shareholder holding more than 10% of the corporate stock, has violated any provision of this Act or any regulation or order made by the Comptroller under this Act; or (m) The Comptroller finds any fact or condition existing which, if it had existed at the time of the original application for such license would have warranted the Comptroller in refusing the issuance of the license. (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 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 390/8a) Sec. 8a. Investigation of unlawful practices. If it appears to the Comptroller that a person has engaged in, is engaging in, or is about to engage in any practice in violation of this Act, the Comptroller may: (1) require that person to file on such terms as the
Comptroller prescribes a statement or report in writing, under oath or otherwise, containing all information the Comptroller may consider necessary to ascertain whether a licensee is in compliance with this Act, or whether an unlicensed person is engaging in activities for which a license is required;
(2) examine under oath any person in connection with
the books and records pertaining to or having an impact upon the trust funds required to be maintained pursuant to this Act;
(3) examine any books and records of the licensee,
trustee, or investment advisor that the Comptroller may consider necessary to ascertain compliance with this Act; and
(4) require the production of a copy of any record,
book, document, account, or paper that is produced in accordance with this Act and retain it in his or her possession until the completion of all proceedings in connection with which it is produced.
(Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/8b) Sec. 8b. Service. Service by the Comptroller of any notice requiring a person to file a statement or report shall be made: (1) personally by delivery of a duly executed copy
thereof to the person to be served or, if that person is not a natural person, in the manner provided in the Civil Practice Law when a complaint is filed; or
(2) by mailing by certified mail a duly executed
copy thereof to the person to be served at his or her last known abode or principal place of business within this State.
(Source: P.A. 89‑615, eff. 8‑9‑96.)
(815 ILCS 390/9)(from Ch. 21, par. 209) Sec. 9. The Comptroller may upon his own motion investigate the actions of any person providing, selling, or offering pre‑need sales contracts or of any applicant or any person or persons holding or claiming to hold a license under this Act. The Comptroller shall make such an investigation on receipt of the verified written complaint of any person setting forth facts which, if proved, would constitute grounds for refusal, suspension, or revocation of a license. Before refusing to issue, and before suspension or revocation of a license, the Comptroller shall hold a hearing to determine whether the applicant or licensee, hereafter called the respondent, is entitled to hold such a license. At least 10 days prior to the date set for such hearing, the Comptroller shall notify the respondent in writing that on the date designated a hearing will be held to determine his eligibility for a license and that he may appear in person or by counsel. Such written notice may be served on the respondent personally, or by registered or certified mail sent to the respondent's business address as shown in his latest notification to the Comptroller and shall include sufficient information to inform the respondent of the general nature of the charge. At the hearing, both the respondent and the complainant shall be accorded ample opportunity to present in person or by counsel such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Comptroller may reasonably continue such hearing from time to time. The Comptroller may subpoena any person or persons in this State and take testimony orally, by deposition or by exhibit, in the same manner and with the same fees and mileage as prescribed in judicial proceedings in civil cases. Any authorized agent of the Comptroller may administer oaths to witnesses at any hearing which the Comptroller is authorized to conduct. The Comptroller, at his expense, shall provide a certified shorthand reporter to take down the testimony and preserve a record of all proceedings at the hearing of any case involving the refusal to issue a license, the suspension or revocation of a license, the imposition of a monetary penalty, or the referral of a case for criminal prosecution. The record of any such proceeding shall consist of the notice of hearing, complaint, all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony and the report and orders of the Comptroller. Copies of the transcript of such record may be purchased from the certified shorthand reporter who prepared the record or from the Comptroller. (Source: P.A. 92‑419, eff. 1‑1‑02.)
(815 ILCS 390/10)(from Ch. 21, par. 210) Sec. 10. Any circuit court may, upon application of the Comptroller or of the applicant or licensee against whom proceedings under Section 9 are pending, enter an order requiring witnesses to attend and testify, and requiring the production of documents, papers, files, books and records in connection with any hearing in any proceedings under that Section. Failure to obey such court order may result in contempt proceedings. (Source: P.A. 84‑239.)
(815 ILCS 390/11)(from Ch. 21, par. 211) Sec. 11. Any person affected by a final administrative decision of the Comptroller may have such decision reviewed judicially by the circuit court of the county where such person resides, or in the case of a corporation, where the registered office is located. If the plaintiff in the review proceeding is not a resident of this State, venue shall be in Sangamon County. The provisions of the "Administrative Review Law", approved August 19, 1981, all amendments and modifications thereto, and any rules adopted under it govern all proceedings for the judicial review of final administrative decisions of the Comptroller. The term "administrative decision" is defined as in the "Administrative Review Law". The Comptroller is not required to certify the record of the proceeding unless the plaintiff in the review proceedings has purchased a copy of the transcript from the certified shorthand reporter who prepared the record or from the Comptroller. Exhibits shall be certified without cost. (Source: P.A. 84‑239.)
(815 ILCS 390/12)(from Ch. 21, par. 212) Sec. 12. License revocation or suspension. (a) The Comptroller may, upon determination that grounds exist for the revocation or suspension of a license issued under this Act, revoke or suspend, if appropriate, the license issued to a licensee or to a particular branch office location with respect to which the grounds for revocation or suspension may occur or exist. (b) Upon the revocation or suspension of any license, the licensee shall immediately surrender the license or licenses to the Comptroller. If the licensee fails to do so, the Comptroller has the right to seize the license or licenses. (Source: P.A. 92‑419, eff. 1‑1‑02.)
