SB 891 Perpetual care trust funds; method of distribution.
A. Benton "Ben" Chafin | all patrons    ...    notes
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Summary as introduced:

Perpetual care trust funds; method of distribution. Allows cemetery companies to request the trustee of a perpetual care trust fund to elect a total return distribution method for distributions from the trust. The bill provides that a total return distribution method allows the distribution of an amount not to exceed five percent of the fair market value of the perpetual care trust fund at the close of its preceding fiscal year. The bill contains notice and reporting requirements for the election and implementation of this method to the trustee, Cemetery Board, and commissioner of accounts. The bill sets forth requirements that a trustee using such method must meet, including adoption of a written investment and distribution policy, responsible investment decision making, and monitoring of the trust's fair market value. The bill prohibits a trustee from making distributions from the trust under the total return distribution method if (i) the fair market value of the trust after the distribution would be less than the aggregate of 80 percent of the fair market value of the trust at the close of the preceding fiscal year plus the total contributions made to the trust principal from such date to the date that the method of distribution is elected or (ii) beginning with the third year of using a total return distribution method, a three-year analysis of investment returns and distribution practices indicates insufficient protection of the trust principal. The bill requires the Cemetery Board to review conversions of perpetual care trust fund distribution methods for compliance with the requirements of the bill and allows the Cemetery Board to limit or prohibit conversions to and distributions under the total return distribution method under certain circumstances, including where the trustee or investment manager is without sufficient knowledge and expertise regarding implementation of this method. Under current law, a trustee of a perpetual care trust fund may make distributions only from the trust's net income and, absent approval by the Cemetery Board or a court, the trust principal may be used only for investment purposes. The bill refers to this method as the "net income distribution method" and establishes this as the default distribution method in the event that a cemetery company does not elect a distribution method. This bill is identical to HB 1505.

Full text:
12/20/16  Senate: Prefiled and ordered printed; offered 01/11/17 17101567D  pdf | impact statement
02/14/17  Senate: Bill text as passed Senate and House (SB891ER)  pdf | impact statement
02/20/17  Governor: Acts of Assembly Chapter text (CHAP0065)  pdf

Status:
12/20/16  Senate: Prefiled and ordered printed; offered 01/11/17 17101567D
12/20/16  Senate: Referred to Committee on General Laws and Technology
01/16/17  Senate: Reported from General Laws and Technology (13-Y 0-N)
01/18/17  Senate: Constitutional reading dispensed (38-Y 0-N)
01/19/17  Senate: Read second time and engrossed
01/20/17  Senate: Read third time and passed Senate (38-Y 0-N)
01/30/17  House: Placed on Calendar
01/30/17  House: Read first time
01/30/17  House: Referred to Committee on Health, Welfare and Institutions
02/09/17  House: Reported from Health, Welfare and Institutions (22-Y 0-N)
02/10/17  House: Read second time
02/13/17  House: Read third time
02/13/17  House: Passed House BLOCK VOTE (97-Y 0-N)
02/13/17  House: VOTE: BLOCK VOTE PASSAGE (97-Y 0-N)
02/14/17  Senate: Enrolled
02/14/17  Senate: Bill text as passed Senate and House (SB891ER)
02/14/17  House: Signed by Speaker
02/15/17  Senate: Signed by President
02/15/17  Senate: Enrolled Bill Communicated to Governor on 2/15/17
02/15/17  Governor: Governor's Action Deadline Midnight, February 22, 2017
02/20/17  Governor: Approved by Governor-Chapter 65 (effective 7/1/17)
02/20/17  Governor: Acts of Assembly Chapter text (CHAP0065)