Perpetual care trust funds; method of distribution. (HB1505)

Introduced By

Del. Scott Garrett (R-Lynchburg)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

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. Amends § 54.1-2322, § 54.1-2324, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
12/19/2016Committee
12/19/2016Prefiled and ordered printed; offered 01/11/17 17101195D
12/19/2016Referred to Committee on Health, Welfare and Institutions
01/10/2017Impact statement from DPB (HB1505)
01/17/2017Reported from Health, Welfare and Institutions (22-Y 0-N) (see vote tally)
01/18/2017Read first time
01/19/2017Read second time and engrossed
01/20/2017Read third time and passed House BLOCK VOTE (92-Y 0-N)
01/20/2017VOTE: BLOCK VOTE PASSAGE (92-Y 0-N) (see vote tally)
01/23/2017Constitutional reading dispensed
01/23/2017Referred to Committee on Education and Health
01/26/2017Rereferred from Education and Health (15-Y 0-N) (see vote tally)
01/26/2017Rereferred to Rehabilitation and Social Services
01/27/2017Rereferred from Rehabilitation and Social Services (14-Y 0-N) (see vote tally)
01/27/2017Rereferred to General Laws and Technology
02/06/2017Reported from General Laws and Technology (13-Y 0-N) (see vote tally)
02/08/2017Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/09/2017Read third time
02/09/2017Passed Senate (40-Y 0-N) (see vote tally)
02/13/2017Enrolled
02/13/2017Bill text as passed House and Senate (HB1505ER)
02/13/2017Impact statement from DPB (HB1505ER)
02/13/2017Signed by Speaker
02/13/2017Signed by President
02/14/2017Enrolled Bill communicated to Governor on 2/14/17
02/14/2017G Governor's Action Deadline Midnight, February 21, 2017
02/17/2017G Approved by Governor-Chapter 12 (effective 7/1/17)
02/17/2017G Acts of Assembly Chapter text (CHAP0012)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 41 seconds.

Transcript

This is a transcript of the video clips in which this bill is discussed.



Del. Peter Farrell (R-Henrico): SPEAKER, HOUSE BILL 1451 CALLS FOR THE COMMISSION ON YOUTH TO COORDINATE A WORKABLE SURVEY TO GET FEED BACK FROM THOSE AGING OUT OF FOSTER CARE, THIS CAME ABOUT, LISTENING TO A PANEL OF FOLK WHO'S HAD BEEN THROUGH THE FOSTER CARE SYSTEM. THE QUESTION IS WE'RE SURPRISED BY THINGS WE'RE SAYING AND WE'RE ASKED IS THERE A WAY WE'RE GETTING FEED BACK ABOUT HOW THE SYSTEM IS WORKING? THEY SAID NO. WE WOULD HAVE LOVED TO HAVE HAD INPUT. SO WE THEY IT'S A GOOD IDEA TO SEE IF THERE IS A MECHANISM TO