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S1276.......................................by COMMERCE AND HUMAN RESOURCES
ENDOWMENT CARE CEMETERIES - Amends and adds to existing law relating to
endowment care cemeteries to increase permissible compensation to fund
trustees to one and one-half percent of the principal of the trust fund; to
provide that annual reports shall be prepared by a licensed independent
certified public accountant or by a member of the Canadian Institute of
Chartered Accountants; and to provide that all records of a cemetery
authority are subject to examination.
02/04 Senate intro - 1st rdg - to printing
02/05 Rpt prt - to Com/HuRes
02/11 Rpt out - rec d/p - to 2nd rdg
02/12 2nd rdg - to 3rd rdg
02/17 3rd rdg - PASSED - 32-0-3
AYES -- Bailey, Bunderson, Burkett, Calabretta, Cameron, Compton,
Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy,
Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble,
Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Andreason, Brandt, Burtenshaw
Floor Sponsor - Compton
Title apvd - to House
02/18 House intro - 1st rdg - to Com/HuRes
02/26 Rpt out - Ref'd to Bus
03/10 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 59-0-11
AYES -- Andersen, Barrett, Bauer, Bayer, Black, Block, Boe, Bolz,
Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal, Denney,
Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Gagner, Garrett, Harwood, Henbest, Jones, Kellogg, Kulczyk, Langford,
Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell,
Naccarato, Nielsen, Pasley-Stuart, Ring, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood
NAYS -- None
Absent and excused -- Barraclough, Bedke, Bell, Crow, Jaquet, Lake,
Moyle, Raybould, Ridinger, Stevenson, Mr. Speaker
Floor Sponsor - Cannon
Title apvd - to Senate
03/16 To enrol
03/17 Rpt enrol - Pres signed - Sp signed
03/19 To Governor
03/24 Governor signed
Session Law Chapter 298
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1276
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE ENDOWMENT CARE CEMETERY ACT; AMENDING SECTION 27-408, IDAHO
3 CODE, TO INCREASE THE PERMISSIBLE COMPENSATION TO FUND TRUSTEES TO ONE AND
4 ONE-HALF PERCENT OF THE PRINCIPAL OF THE TRUST FUND AND TO MAKE TECHNICAL
5 CORRECTIONS; AMENDING SECTION 27-411, IDAHO CODE, TO PROVIDE THAT ANNUAL
6 REPORTS SHALL BE PREPARED BY A LICENSED INDEPENDENT CERTIFIED PUBLIC
7 ACCOUNTANT OR BY A MEMBER OF THE CANADIAN INSTITUTE OF CHARTERED ACCOUN-
8 TANTS, TO MAKE TECHNICAL CORRECTIONS AND TO CORRECT A CODIFIER'S ERROR;
9 AND AMENDING CHAPTER 4, TITLE 27, IDAHO CODE, BY THE ADDITION OF A NEW
10 SECTION 27-413, IDAHO CODE, TO PROVIDE THAT ALL RECORDS OF A CEMETERY
11 AUTHORITY ARE SUBJECT TO EXAMINATION.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 27-408, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 27-408. INSTRUMENT IN WRITING. The trust fund so created shall be evi-
16 denced by an instrument in writing, and shall contain in addition to the
17 requirements of section 27-407, Idaho Code, the following provisions:
18 (a) That there shall be designated a trustee under this act, which shall
19 be any federally insured financial institution located within the state of
20 Idaho, duly authorized to transact a trust business, or the board of directors
21 of the cemetery authority. When the trust fund is in the care of such board of
22 directors as a board of trustees, the secretary of the cemetery authority
23 shall act as its secretary and keep a true record of all of its proceedings.
24 (b) Where the trust is vested in such board of directors as a board of
25 trustees, each of said trustees shall file with the administrator a surety
26 bond in the amount of five thousand dollars ($5,000), conditioned upon his
27 full and faithful performance of his trust obligations.
28 (c) As compensation, the trustee, whether it be a financial institution
29 acting in such capacity or the board of directors of a cemetery authority act-
30 ing as the trustee, shall be entitled to compensation in an amount not exceed-
31 ing twenty-five dollars ($25.00) quarterly, or a sum equal to one and one-half
32 of one percent (1 1/2%) per annum of the principal of the trust fund, which-
33 ever is the greater.
34 (d) In connection with its investment of the trust fund, the trustee
35 shall be governed by the terms of the Uuniform Pprudent Iinvestor Aact, chap-
36 ter 5, title 68, Idaho Code, as presently enacted or as may be from time to
37 time amended.
38 (e) The principal of the trust fund shall remain permanently intact and
39 only the income therefrom shall be expended. The income shall be used exclu-
40 sively for the care of those portions of the cemetery in which lots have been
41 sold with the provision for perpetual or endowed care. It is the intent of
42 this section that the income of said fund shall be used solely for the care of
43 lots or other burial spaces sold to third persons with the provision for per-
2
1 petual or endowed care, and the care and embellishment of such other portions
2 of the cemetery as may be desirable to preserve the beauty and dignity of the
3 lots sold.
4 (f) The initial endowment care fund established for any cemetery shall
5 remain in an irrevocable trust fund until such time as this fund has reached
6 the sum of one hundred thousand dollars ($100,000), when it may be withdrawn
7 at the rate of two thousand dollars ($2,000) from the original fifty thousand
8 dollars ($50,000) for each additional six thousand dollars ($6,000) added to
9 the fund, this to continue until the entire original fifty thousand dollars
10 ($50,000) has been withdrawn by the cemetery authority.
11 SECTION 2. That Section 27-411, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 27-411. ANNUAL REGISTRATION STATEMENT WITH ADMINISTRATOR. Every cemetery
14 authority owning, operating, controlling or managing an endowed care cemetery
15 shall register with the administrator, by filing an annual registration state-
16 ment on forms furnished by said administrator, which shall show, as of the end
17 of the preceding calendar year or fiscal year, whichever is more convenient to
18 the cemetery authority, the following:
19 (a) The amount of the principal of the care funds held by the trustee of
20 said funds of such cemetery authority, at the beginning of such year, and in
21 addition thereto all moneys or property received during such year, from the
22 following sources:
23 (1) Under and by virtue of the sale of a lot, grave, crypt or niche.
24 (2) Under and by virtue of any gift, grant, devise, bequest, payment or
25 other contribution made subsequent to the effective date of the Eendowed
26 Ccare Ccemetery Aact of 1963.
27 (b) The income received from such care funds during the preceding calen-
28 dar or fiscal year as the case may be. Where any of the care funds of a ceme-
29 tery authority are held by a trustee, other than the board of directors of the
30 cemetery authority, the annual registration statement filed by any cemetery
31 authority shall also contain a certificate signed by the trustee of the care
32 funds of such cemetery authority certifying to the truthfulness of the state-
33 ments in the report as to:
34 (1) The total amount of principal of the care funds held by the trustee.
35 (2) The securities in which such care funds are invested and the cash on
36 hand as of the day of the report; and
37 (3) The income received from such care funds during the preceding calen-
38 dar year or fiscal year as the case may be.
39 Such statement shall be filed by the cemetery authority on or before
40 December 31 of each calendar year with the director administrator. If the fis-
41 cal year of such cemetery authority is other than on a calendar year basis,
42 then such statement shall be filed within thirty (30) days of the end of its
43 fiscal year. A filing fee in an amount to be fixed by the administrator but
44 not to exceed the sum of one hundred fifty dollars ($150) shall be payable at
45 the time of the filing of the annual statement. All reports shall be prepared
46 by an independent certified public accountant licensed in the state of Idaho
47 or by a member of the Canadian institute of chartered accountants.
48 SECTION 3. That Chapter 4, Title 27, Idaho Code, be, and the same is
49 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
50 ignated as Section 27-413, Idaho Code, and to read as follows:
51 27-413. RECORDS SUBJECT TO EXAMINATION. All records of a cemetery author-
3
1 ity are subject at any time or from time to time to such reasonable periodic,
2 special or other examinations, within or without this state, by representa-
3 tives of the administrator, as the administrator deems necessary or appropri-
4 ate in the public interest.
STATEMENT OF PURPOSE
RS 13512
This bill amends the Endowment Care Cemetery Act in the following
ways:
(1)The bill increases the amount of compensation to which a fund
trustee is entitled from .5% to 1.5% of the principal of the trust
fund to better reflect current market compensation rates;
(2)Permits out of state certified public accountants and the
Canadian equivalent of a CPA to prepare and submit cemetery annual
registration statements; and
(3)Provides explicit authority for Department of Finance
examination of cemetery records.
FISCAL IMPACT
No fiscal impact.
CONTACT
Name: Marilyn Chastain
Agency: Department of Finance
Phone: 332-8070
Statement of Purpose/Fiscal Impact S 1276