LRB-1554/1
ARG:wlj:jf
2015 - 2016 LEGISLATURE
March 27, 2015 - Introduced by Representatives Katsma, Kooyenga, Horlacher,
R. Brooks, Ballweg, E. Brooks, Spreitzer, Kulp, Edming and Kahl,
cosponsored by Senators LeMahieu and Lassa. Referred to Committee on
Financial Institutions.
AB115,1,2
1An Act to amend 157.19 (1) of the statutes;
relating to: trust funds related to
2cemetery lots, mausoleum spaces, and cemetery merchandise.
Analysis by the Legislative Reference Bureau
Current law authorizes a person who owns or operates a cemetery (cemetery
authority) to receive any of the following:
1. Funds for the care of a cemetery lot (lot care funds).
2. Funds for the care of a mausoleum space (mausoleum care funds).
3. Funds paid under an agreement (preneed sales contract) for the sale of a
future mausoleum space or for the sale of goods or services, to be delivered in the
future, associated with the burial of human remains, including monuments,
markers, and urns, but excluding caskets (preneed trust funds).
Under current law, with limited exceptions, a cemetery authority may deposit
lot care funds, and must deposit mausoleum care funds and preneed trust funds,
with a state-chartered or federally chartered financial institution located in this
state, including a bank, savings bank, savings and loan association, trust company,
or credit union (financial institution). The financial institution must invest the care
funds and preneed trust funds in compliance with certain prudent investor
standards.
This bill allows a cemetery authority to deposit lot care funds, mausoleum care
funds, and preneed trust funds with a broker-dealer registered, or exempt from
registration, with the Division of Securities in the Department of Financial
Institutions by expanding the definition of "financial institution" for these purposes
to include such a broker-dealer. A "broker-dealer" is defined, with limited
exceptions, as a person engaged in the business of effecting transactions in securities
for the account of others or for the person's own account.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB115,1
1Section
1. 157.19 (1) of the statutes is amended to read:
AB115,2,42
157.19
(1) In this section, "financial institution" has the meaning given in s.
3705.01 (3)
, but also includes a broker-dealer registered under s. 551.401 (1) or
4exempt from registration under s. 551.401 (2).
