Introduced Version






HOUSE BILL No. 1026

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 30-2.

Synopsis: Funeral trust funds. Provides that a person who knowingly or intentionally disburses funds in a funeral trust for purposes other than the intended purposes of the trust commits a Class C felony. Provides that a trustee that disburses funds in a funeral trust without verifying the death of the person for whose funeral or burial the funds were paid commits a Class A infraction. Provides that the seller of a funeral trust established after June 30, 2008, may not be an affiliate, a parent, or a subsidiary organization of the trustee of the funeral trust.

Effective: July 1, 2008.





Cheatham




    January 8, 2008, read first time and referred to Committee on Courts and Criminal Code.







Introduced

Second Regular Session 115th General Assembly (2008)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2007 Regular Session of the General Assembly.

HOUSE BILL No. 1026



    A BILL FOR AN ACT to amend the Indiana Code concerning trusts and fiduciaries.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 30-2-9-7; (08)IN1026.1.1. -->     SECTION 1. IC 30-2-9-7, AS AMENDED BY P.L.113-2007, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 7. (a) Except as provided in subsection (b) or (c), a person who violates this chapter or makes any false and fraudulent report required under this chapter commits a Class B misdemeanor.
    (b) A person who knowingly or intentionally uses or disburses funds in a funeral trust established under this chapter for purposes other than the purposes required under this chapter commits a Class C felony.
    (c) Except as authorized in an agreement described in section 4 of this chapter permitting the early withdrawal of funds, a trustee that disburses funds in a funeral trust established under this chapter without verifying the death of the person for whose funeral or burial the funds were paid commits a Class A infraction.
SOURCE: IC 30-2-10-9; (08)IN1026.1.2. -->     SECTION 2. IC 30-2-10-9, AS AMENDED BY P.L.113-2007, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) Except as provided in subsection (b), a

person who knowingly violates this chapter commits a Class A misdemeanor.
    (b) A person who knowingly or intentionally uses or disburses funds in a funeral trust established under this chapter for purposes other than the purposes required under this chapter commits a Class C felony.
     (c) A trustee that disburses funds in a funeral trust established under this chapter in the absence of satisfactory evidence that the contract under which the funds were deposited has been performed commits a Class A infraction.

SOURCE: IC 30-2-13-38; (08)IN1026.1.3. -->     SECTION 3. IC 30-2-13-38 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 38. (a) A seller who violates a provision of this chapter commits an uncured deceptive act (as defined in IC 24-5-0.5-2).
    (b) A person doing business as a sole proprietor, a firm, a limited liability company, a corporation, an association, or a partnership, but not acting as a seller that:
        (1) sells or advertises prepaid services or merchandise or services or merchandise (as defined in section 8 of this chapter) and fails to obtain the certificate of authority required by section 33 of this chapter; or
        (2) sells or advertises prepaid services or merchandise or services or merchandise (as defined in section 8 of this chapter) after the entity's certificate of authority has:
            (A) expired; or
            (B) been rescinded, revoked, or suspended by the board;
commits a Class A misdemeanor. Each act committed in violation of this subsection constitutes a separate offense.
    (c) The following may maintain an action to enjoin an individual or entity from continuing to violate this section:
        (1) The board.
        (2) The attorney general.
        (3) The prosecuting attorney of a county in which a violation occurs.
    (d) A purchaser has a private right of action against a seller who commits an uncured deceptive act.
     (e) A trustee or escrow agent, acting as a fiduciary, that disburses funds in a trust or escrow account established under this chapter without verifying that the seller has delivered the services or merchandise for which the funds were deposited commits a Class A infraction.
SOURCE: IC 30-2-13-39; (08)IN1026.1.4. -->     SECTION 4. IC 30-2-13-39 IS ADDED TO THE INDIANA CODE

AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 39. (a) This section does not apply to a trust funded by the method described in section 11(c) of this chapter.
    (b) A seller may not be an affiliate, a parent, or a subsidiary organization of the trustee or escrow agent, acting as a fiduciary, of a trust or escrow account established after June 30, 2008, to hold consideration paid for services or merchandise subject to a contract entered into under this chapter by the seller and a purchaser.