Since being elected Illinois State Comptroller in 1998, Dan Hynes has worked to create new laws that further protect Illinois consumers in their dealings with the death care industry. Below are some examples of what Comptroller Hynes has accomplished on the legislative front.
2009
The Legislature approved an initiative of Comptroller Hynes that provides greater protections to consumers in how funeral and cemetery pre-need funds are regulated. These changes were supported by the AARP, Citizen Action, the Secretary of State's Office and the Department of Financial and Professional Regulation.
Key provisions include:
- Independent Trustee --- The most important change requires that every dollar of consumer pre-need trust funds be placed with an independent trustee that is a corporate fiduciary. This ends the practice of allowing anyone in the death care industry to act as their own trustee. By requiring that such funds are held by an independent trustee that is a corporate fiduciary, the funds will be regulated by the appropriate state or federal level regulator. The independent trustees must abide by the Prudent Investor Rule – the national standard used to evaluate trustees.
- Notice to Consumers --- The independent trustee must provide an annual notice to all consumers of the status of their funds, including an explanation of any fees charged by the trustee, an explanation of the purchaser's right to a refund, and identification of the primary regulator of the trust as a corporate fiduciary under state or federal law.
- Funeral Consumer Fund --- The new law establishes a consumer protection fund for pre-need funeral contracts. This state fund will help provide restitution to consumers when a funeral home does not provide the goods or services for which the consumer contracted. A similar provision already applies to pre-need cemetery contracts.
- Audit --- Allows the Comptroller to immediately perform an intensive audit of a funeral home when necessary to ensure the safety of trust funds. Previously, there was a 30-day waiting period before such an audit could be conducted.
These changes in the law are effective January 31, 2010.
2003
In 2003, Comptroller Hynes introduced legislation designed to tighten governmental oversight of the cremation industry in Illinois. The need for improvements became apparent after a disturbing discovery in the state of Georgia where a crematory operator allegedly mishandled hundreds of bodies over several years, failing to complete cremations that he was legally obligated to perform. This horrific turn of events prompted Comptroller Hynes to closely examine crematory regulations in Illinois, revealing the fact that no single state agency had any meaningful degree of control over the industry.
Thus, Comptroller Hynes created a plan to replace bureaucratic vagueness with direct accountability. The goal of this law is to reassure grieving families that their deceased loved ones will always be treated with respect while in a crematory. All crematories in Illinois must now:
- Obtain an operating license from the Comptroller's office, allowing for background checks and ensuring that any unlawful practices can be halted by the revocation of that license.
- Undergo an annual onsite inspection, ensuring that the crematory has the proper EPA permits, and is in compliance with local health and zoning laws.
2001
Comptroller Hynes began his quest to reform the cemetery and funeral home industry by holding five statewide hearings in which he urged the public to come forward and voice their concerns regarding cemetery conditions, as well as fraud and abuse within the death care industry. These hearings spawned two major initiatives: the Comptroller's Cemetery Care Hotline and a legislative package for cemetery and funeral home reform.
Highlights of this reform legislation include:
- A mandate that consumer rights information, pamphlets created and distributed by the Comptroller's office, be given to consumers before a pre-need contract is signed.
- Standard use of a pre-need contract written in at least 11-point font (no fine print) with clear disclosures as to the consumer's rights and obligations under the contract.
- A list of cemetery rules and regulations to be clearly posted at the cemetery's place of business, as well as an up-to-date price list that is easily accessible to all consumers.
- A provision strengthening the Comptroller's ability to reject a licensing application or revoke an existing license based on a licensee's record of fraud or theft.
Below are links to the Illinois statutes governing cemeteries and funeral homes...
For more information on pending legislation, current laws and other important matters before the state legislature, visit the Illinois General Assembly.
If you are unsure who your elected representatives are in Springfield, visit the State Board of Elections.