Bill Text: AZ HB2203 | 2017 | Fifty-third Legislature 1st Regular | Engrossed
Bill Title: Endowed-care cemeteries; unitrusts
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-03-21 - Chapter 32 [HB2203 Detail]
Download: Arizona-2017-HB2203-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HOUSE BILL 2203 |
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AN ACT
amending sections 32‑2194.27 and 32‑2194.30, Arizona Revised Statutes; relating to endowed‑care cemeteries.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-2194.27, Arizona Revised Statutes, is amended to read:
32-2194.27. Restrictive use of income from endowed‑care fund; obligation
The irrevocable trust fund created under the provisions of established pursuant to section 32‑2194.26 shall be evidenced by an instrument in writing and shall contain the following provisions:
1. There shall be designated a trustee for the endowed‑care fund which shall be that is a financial institution authorized to do business in this state and authorized to act as trustee by the laws of this state for such investments. The trustee must be one in which no officer, director or owner in of the cemetery is financially interested in any way.
2. The principal of the trust fund shall remain permanently intact, and only the income therefrom or the unitrust amount specified in section 14‑11014 or 14‑11015 shall be expended. It is the intent of this section that the income or unitrust amount of the fund shall be used solely for the care of plots or other burial spaces sold to third persons with a provision for perpetual or endowed care and the care of such other portions of the cemetery immediately surrounding such plots as may be necessary to preserve the beauty and dignity of the plots sold. The fund or its income shall never be used for the development, improvement or embellishment of unsold portions of the cemetery so as to relieve the owner of the cemetery of the ordinary cost incurred in preparing such property for sale.
3. A financial institution acting as a trustee does not have a legal obligation to operate a cemetery other than providing trust fund income to the receiver or successor of a cemetery unable to meet its perpetual care obligations. A trustee, in its sole discretion and without the approval of the court, may convert the trust to a total return unitrust and administer the endowed‑care fund as provided in section 14‑11014.
Sec. 2. Section 32-2194.30, Arizona Revised Statutes, is amended to read:
32-2194.30. Restriction on use of endowed‑care funds
Endowment care Endowed‑care funds shall not be used for any purpose other than to provide income for the care of burial spaces as stated above prescribed in section 32‑2194.27. In investing these funds, the trustee shall exercise the judgment and care of a prudent investor under the circumstances then prevailing, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income or unitrust amount as well as the probable safety of their capital. Within the limitations of the foregoing standard, and subject to any express provisions or limitations contained in any particular trust instrument, a trustee is authorized to acquire every kind of property, real, personal or mixed, and every kind of investment, specifically including, but not by way of limitation, corporate obligations of every kind, and stocks, preferred or common, that prudent investors acquire for their own account.
