Legislation

HR0177, which passed the Illinois House unanimously on April 22, 2009, set up a 10-member task force to investigate the IFDA Preneed Trust Fund and the causes of its deficit. The members will consist of six members of the Illinois House of Representatives, one member appointed by the Illinois Office of the Comptroller (the regulatory body charged with overseeing the Trust), one member appointed by the Director of the Cemetery Care and Burial Trust Division of the State Comptroller's Office, one member appointed by the Director of the Division of Insurance within the Department of Financial and Professional Regulation, and one member appointed by the Secretary of the Department of Financial and Professional Regulation.

To view the full text of the bill, click here.

For an article in the State Journal-Register about this bill, click here.

SB1682, otherwise known as the State Comptroller Act, seeks to reform the laws currently governing the Preneed Trust. If passed, the State Comptroller Act would, among other things, require all preneed trust funds to be governed by a corporate fiduciary, and establish a consumer protection fund build from a $5 fee taken from each preneed funeral contract. It would also require annual statements to preneed costumers showing the value of their investments, and require prudent investments of the Preneed Trust funds.

To view the full text of the bill, click here.

For an article in the State Journal-Register about this bill, click here.

As of May 29, 2009, SB1682 had passed both houses of the Illinois legislature, and was awaiting the signature of Governor Quinn.

This proposed legislation supposedly addresses the various issues relating to the Preneed Trust in Illinois. In our view as well as our clients', the existing laws should have been sufficient to prevent the abuse which took place. We also believe that some of the proposals may do more to hurt rather than help preneed customers. Be that as it may, it goes without saying that we are all in favor of appropriate legislation and regulation that ensures the viability of the Preneed Trust and helps families realize the gift that preneed funeral planning provides.