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S.B. 111

             1     

ENDOWMENT CARE CEMETERY AMENDMENTS

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Lorin V. Jones

             5      AN ACT RELATING TO CEMETERIES; MODIFYING PROVISIONS FOR ESTABLISHING
             6      ENDOWMENT CARE CEMETERIES; AMENDING REQUIREMENTS FOR INITIAL
             7      DEPOSITS INTO AND WITHDRAWALS FROM ENDOWMENT CARE CEMETERY TRUST
             8      FUNDS; REPEALING CERTAIN PROHIBITIONS ON OWNING AND OPERATING AN
             9      ENDOWMENT CARE CEMETERY; AND MAKING TECHNICAL CORRECTIONS.
             10      This act affects sections of Utah Code Annotated 1953 as follows:
             11      AMENDS:
             12          8-4-2, as last amended by Chapter 3, Laws of Utah 1996
             13          8-4-3, as last amended by Chapter 3, Laws of Utah 1996
             14      REPEALS:
             15          8-4-12, as enacted by Chapter 3, Laws of Utah 1996
             16      Be it enacted by the Legislature of the state of Utah:
             17          Section 1. Section 8-4-2 is amended to read:
             18           8-4-2. Endowment care cemetery trust funds -- Deposits in endowment fund --
             19      Reports -- Penalties for failure to file -- Investment of trust fund monies -- Attestation.
             20          (1) An endowment care cemetery shall establish an endowment care trust fund pursuant
             21      to Title 75, Chapter 7, Trust Administration.
             22          (a) [Any] After May 1, 2000, any newly established endowment care cemetery or existing
             23      cemetery converting to an endowment care cemetery shall deposit a minimum of [$50,000]
             24      $100,000 in the endowment care trust fund.
             25          (b) Each endowment care cemetery shall deposit in the endowment care trust fund for each
             26      plot space sold or disposed of a minimum of:
             27          (i) $1.50 a square foot for each grave;


             28          (ii) $15 for each niche; and
             29          (iii) $60 for each crypt.
             30          (2) (a) An endowment care cemetery shall collect endowment care funds only pursuant to
             31      a written contract of sale signed by the endowment care cemetery and the purchaser.
             32          (b) The contract of sale shall specify the terms of the endowment care trust consistent with
             33      this section and the terms of payment.
             34          [(b)] (c) If requested by the purchaser, a copy of the endowment care trust shall be
             35      provided to the purchaser.
             36          (3) (a) Each endowment care cemetery shall prepare an annual written report for the
             37      benefit of its trustor lot holders.
             38          (b) The report shall contain:
             39          (i) information determined to be reasonable and necessary to show compliance with the
             40      provisions of this chapter;
             41          (ii) the number and square feet of grave space;
             42          (iii) the number of crypts and niches sold or disposed of under endowment care during a
             43      specific period; and
             44          (iv) the dollar amount of sales, amounts paid, amounts receivable, and amounts deposited
             45      in endowment care funds for crypts, niches, and grave space during a specific period, set forth on
             46      the accrual basis as determined by the cemetery authority.
             47          (c) An officer of the endowment care cemetery authority shall verify the report.
             48          (d) The report shall be on file in the principal office of the endowment care cemetery and
             49      shall be made available upon request.
             50          (e) The report shall be completed by the 15th day of the third month following the end of
             51      the endowment care cemetery's fiscal year.
             52          (4) An officer, director, partner, proprietor, or other person having control of the records
             53      of an endowment care cemetery shall provide the reports and records necessary to comply with the
             54      provisions of this chapter.
             55          (5) A person is guilty of a class A misdemeanor who willfully and intentionally fails to:
             56          (a) deposit funds collected as endowment care funds into the endowment care trust within
             57      30 days of receipt of the funds; or
             58          (b) prepare the report required by Subsection (3).


             59          (6) Endowment care funds may be invested separately or together. The investment income
             60      shall be divided between the funds in the proportion that each contributed to the invested amount.
             61          (7) Endowment care funds shall be invested in accordance with Section 31A-18-105 and
             62      Title 75, Chapter 7, Trust Administration.
             63          (8) (a) An endowment care cemetery shall place endowment care funds with an
             64      independent trustee appointed by the endowment care cemetery.
             65          (b) A trustee may be independent even if it has common ownership with the cemetery.
             66          (c) The independent trustee shall be a depository institution, as defined by Section 7-1-103 ,
             67      or an insurer, as defined in Section 31A-1-301 .
             68          (9) (a) The trustee shall submit to the endowment care cemetery an annual independent
             69      attestation of the endowment care trust funds.
             70          (b) The attestation shall state:
             71          (i) the total amount of the general and special endowment care funds invested by law;
             72          (ii) the amount of cash on hand not invested;
             73          (iii) the location, description, and character of the investments in which the special
             74      endowment care funds are invested;
             75          (iv) the value of any securities held in the endowment care fund; and
             76          (v) the actual financial condition of the funds.
             77          (10) (a) A trustee may not receive compensation for services and expenses, including
             78      audits, in excess of 5% of the income derived from an endowment care fund in any year.
             79          (b) If there are insufficient funds from the income derived from the endowment care trust
             80      fund to pay for the attestation of the endowment care funds, the endowment care cemetery shall
             81      pay amounts due from funds other than the endowment care trust fund or income derived from that
             82      fund.
             83          (11) The income from an endowment care fund shall be used for the care, maintenance,
             84      and embellishment of the cemetery as determined by the endowment care cemetery, and to pay for
             85      administering the fund.
             86          Section 2. Section 8-4-3 is amended to read:
             87           8-4-3. Withdrawals from endowment fund.
             88          [(1) The endowment care fund established for any cemetery shall remain irrevocable until
             89      the fund balance is $100,000. When the fund balance is $100,000, the initial deposit required in


             90      Subsection 8-4-2 (1)(a) may be withdrawn at the rate of $1,000 for each additional $3,000 added
             91      to the fund.]
             92          [(2) If] (1) For an endowment care fund [has been] that was established before July 1,
             93      1983[,] with an initial deposit of $25,000, [this deposit may be withdrawn by the cemetery
             94      authority after] when the fund balance [has reached] reaches $50,000, the cemetery authority may
             95      withdraw the deposit at the rate of $1,000 for each additional $3,000 added to the fund.
             96          (2) For an endowment care fund that was established on or after July 1, 1983 S [ ,but before
             97      May 2, 2000,
] s
with an initial deposit of $50,000, when the fund balance reaches $100,000, the
             98      cemetery authority may withdraw the deposit at the rate of $1,000 for each additional $3,000 added
             99      to the fund.
             100           S [ (3) For an endowment care fund that is established after May 1, 2000 with an initial
             101      deposit of $100,000, when the fund balance reaches $200,000, the cemetery authority may
             102      withdraw the deposit at the rate of $1,000 for each additional $3,000 added to the fund
.] s

             103          Section 3. Repealer.
             104          This act repeals:
             105          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.

Office of Legislative Research and General Counsel


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