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[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 111
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ENDOWMENT CARE CEMETERY AMENDMENTS
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: Lorin V. Jones
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AN ACT RELATING TO CEMETERIES; MODIFYING PROVISIONS FOR ESTABLISHING
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ENDOWMENT CARE CEMETERIES; AMENDING REQUIREMENTS FOR INITIAL
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DEPOSITS INTO AND WITHDRAWALS FROM ENDOWMENT CARE CEMETERY TRUST
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FUNDS; REPEALING CERTAIN PROHIBITIONS ON OWNING AND OPERATING AN
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ENDOWMENT CARE CEMETERY; AND MAKING TECHNICAL CORRECTIONS.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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8-4-2, as last amended by Chapter 3, Laws of Utah 1996
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8-4-3, as last amended by Chapter 3, Laws of Utah 1996
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REPEALS:
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8-4-12, as enacted by Chapter 3, Laws of Utah 1996
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
8-4-2
is amended to read:
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8-4-2. Endowment care cemetery trust funds -- Deposits in endowment fund --
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Reports -- Penalties for failure to file -- Investment of trust fund monies -- Attestation.
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(1) An endowment care cemetery shall establish an endowment care trust fund pursuant
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to Title 75, Chapter 7, Trust Administration.
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(a) [Any] After May 1, 2000, any newly established endowment care cemetery or existing
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cemetery converting to an endowment care cemetery shall deposit a minimum of [$50,000]
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$100,000 in the endowment care trust fund.
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(b) Each endowment care cemetery shall deposit in the endowment care trust fund for each
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plot space sold or disposed of a minimum of:
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(i) $1.50 a square foot for each grave;
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(ii) $15 for each niche; and
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(iii) $60 for each crypt.
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(2) (a) An endowment care cemetery shall collect endowment care funds only pursuant to
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a written contract of sale signed by the endowment care cemetery and the purchaser.
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(b) The contract of sale shall specify the terms of the endowment care trust consistent with
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this section and the terms of payment.
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[(b)] (c) If requested by the purchaser, a copy of the endowment care trust shall be
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provided to the purchaser.
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(3) (a) Each endowment care cemetery shall prepare an annual written report for the
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benefit of its trustor lot holders.
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(b) The report shall contain:
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(i) information determined to be reasonable and necessary to show compliance with the
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provisions of this chapter;
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(ii) the number and square feet of grave space;
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(iii) the number of crypts and niches sold or disposed of under endowment care during a
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specific period; and
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(iv) the dollar amount of sales, amounts paid, amounts receivable, and amounts deposited
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in endowment care funds for crypts, niches, and grave space during a specific period, set forth on
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the accrual basis as determined by the cemetery authority.
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(c) An officer of the endowment care cemetery authority shall verify the report.
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(d) The report shall be on file in the principal office of the endowment care cemetery and
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shall be made available upon request.
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(e) The report shall be completed by the 15th day of the third month following the end of
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the endowment care cemetery's fiscal year.
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(4) An officer, director, partner, proprietor, or other person having control of the records
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of an endowment care cemetery shall provide the reports and records necessary to comply with the
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provisions of this chapter.
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(5) A person is guilty of a class A misdemeanor who willfully and intentionally fails to:
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(a) deposit funds collected as endowment care funds into the endowment care trust within
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30 days of receipt of the funds; or
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(b) prepare the report required by Subsection (3).
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(6) Endowment care funds may be invested separately or together. The investment income
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shall be divided between the funds in the proportion that each contributed to the invested amount.
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(7) Endowment care funds shall be invested in accordance with Section
31A-18-105
and
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Title 75, Chapter 7, Trust Administration.
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(8) (a) An endowment care cemetery shall place endowment care funds with an
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independent trustee appointed by the endowment care cemetery.
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(b) A trustee may be independent even if it has common ownership with the cemetery.
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(c) The independent trustee shall be a depository institution, as defined by Section
7-1-103
,
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or an insurer, as defined in Section
31A-1-301
.
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(9) (a) The trustee shall submit to the endowment care cemetery an annual independent
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attestation of the endowment care trust funds.
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(b) The attestation shall state:
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(i) the total amount of the general and special endowment care funds invested by law;
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(ii) the amount of cash on hand not invested;
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(iii) the location, description, and character of the investments in which the special
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endowment care funds are invested;
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(iv) the value of any securities held in the endowment care fund; and
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(v) the actual financial condition of the funds.
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(10) (a) A trustee may not receive compensation for services and expenses, including
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audits, in excess of 5% of the income derived from an endowment care fund in any year.
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(b) If there are insufficient funds from the income derived from the endowment care trust
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fund to pay for the attestation of the endowment care funds, the endowment care cemetery shall
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pay amounts due from funds other than the endowment care trust fund or income derived from that
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fund.
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(11) The income from an endowment care fund shall be used for the care, maintenance,
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and embellishment of the cemetery as determined by the endowment care cemetery, and to pay for
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administering the fund.
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Section 2.
Section
8-4-3
is amended to read:
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8-4-3. Withdrawals from endowment fund.
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[(1) The endowment care fund established for any cemetery shall remain irrevocable until
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the fund balance is $100,000. When the fund balance is $100,000, the initial deposit required in
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Subsection
8-4-2
(1)(a) may be withdrawn at the rate of $1,000 for each additional $3,000 added
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to the fund.]
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[(2) If] (1) For an endowment care fund [has been] that was established before July 1,
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1983[,] with an initial deposit of $25,000, [this deposit may be withdrawn by the cemetery
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authority after] when the fund balance [has reached] reaches $50,000, the cemetery authority may
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withdraw the deposit at the rate of $1,000 for each additional $3,000 added to the fund.
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(2) For an endowment care fund that was established on or after July 1, 1983 S [
,but before
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May 2, 2000,
] s with an initial deposit of $50,000, when the fund balance reaches $100,000, the
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cemetery authority may withdraw the deposit at the rate of $1,000 for each additional $3,000 added
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to the fund.
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S [
(3) For an endowment care fund that is established after May 1, 2000 with an initial
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deposit of $100,000, when the fund balance reaches $200,000, the cemetery authority may
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withdraw the deposit at the rate of $1,000 for each additional $3,000 added to the fund
.] s
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Section 3. Repealer.
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This act repeals:
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Section 8-4-12, Endowment care cemetery prohibited.
Legislative Review Note
as of 1-10-00 10:52 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.