Virginia 2017 Regular Session Status: Enacted

SB 891 — Perpetual care trust funds; method of distribution.

Last action — Approved by Governor-Chapter 65 (effective 7/1/17)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House of Delegates
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced December 20, 2016. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 5 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

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. This bill is identical to

Bill Text

Action History

  1. Approved by Governor-Chapter 65 (effective 7/1/17)

  2. Governor's Action Deadline Midnight, February 22, 2017

  3. Enrolled Bill Communicated to Governor on 2/15/17

  4. Signed by President

  5. Signed by Speaker

  6. Enrolled

  7. Passed House BLOCK VOTE (97-Y 0-N)

  8. Read third time

  9. Read second time

  10. Referred to Committee on Health, Welfare and Institutions

  11. Read first time

  12. Placed on Calendar

  13. Read second time and engrossed

  14. Referred to Committee on General Laws and Technology

  15. Prefiled and ordered printed; offered 01/11/17 17101567D

Sponsors

  • A. Benton "Ben" Chafin · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 147 not signed on

Sponsors (1)

  • A. Benton "Ben" Chafin

Co-sponsors (0)

None.

Not signed on (147)

147 members have not signed on to this bill.

Show all 147 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed House BLOCK VOTE

Passed 97 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 97000
Total 97000
% of votes cast 100%0%0%0%
How each member voted (97)
Member Party Vote
Albo — Yea
Habeeb — Yea
Hester — Yea
James — Yea
Landes — Yea
LeMunyon — Yea
Villanueva — Yea
Yancey — Yea
Miller — Yea
Mr. Speaker — Yea
Lindsey — Yea
Lingamfelter — Yea
Loupassi — Yea
Massie — Yea
Minchew — Yea
O'Bannon — Yea
Peace — Yea
Pogge — Yea
Stolle — Yea
Toscano — Yea
Yost — Yea
Adams — Yea
Bell, Richard P. — Yea
Jones — Yea
Cline — Yea
Collins — Yea
Dudenhefer — Yea
Farrell — Yea
Greason — Yea
Helsel — Yea
Holcomb — Yea
Hugo — Yea
Ingram — Yea
Aird, Lashrecse D. — Yea
Alfonso H. Lopez — Yea
Bell, John J. — Yea
Bell, Robert B. — Yea
Betsy B. Carr — Yea
Bourne, Jeffrey M. — Yea
Bulova, David L. — Yea
Byron, Kathy J. — Yea
C.E. Cliff Hayes, Jr. — Yea
Charniele L. Herring — Yea
Christopher T. Head — Yea
Cole, Mark L. — Yea
Cox, M. Kirkland — Yea
Davis, Glenn R. — Yea
Delores L. McQuinn — Yea
Edmunds, James E., II — Yea
Fariss, C. Matthew — Yea
Filler-Corn, Eileen — Yea
Fowler, Hyland F."Buddy," Jr. — Yea
Freitas, Nicholas J. — Yea
Gilbert, C. Todd — Yea
Heretick, Steve E. — Yea
Israel D. O'Quinn — Yea
James A. "Jay" Leftwich — Yea
James W. Morefield — Yea
Jeion A. Ward — Yea
Jennifer B. Boysko — Yea
Jessica L. Anderson — Yea
Keam, Mark L. — Yea
Knight, Barry D. — Yea
Kory, Kaye — Yea
LaRock, Dave A. — Yea
Lamont Bagby — Yea
Levine, Mark H. — Yea
Luke E. Torian — Yea
M. Keith Hodges — Yea
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Marshall, Daniel W., III — Yea
Marshall, Daniel W., III — Yea
Michael J. Webert — Yea
Miyares, Jason S. — Yea
Mullin, Michael P. — Yea
Murphy, Kathleen — Yea
Orrock, Robert D., Sr. — Yea
Patrick A. Hope — Yea
Paul E. Krizek — Yea
Plum, Kenneth R. — Yea
R. Lee Ware — Yea
Ransone, Margaret B. — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Yea
Robinson, Roxann L. — Yea
Rush, Nick — Yea
Sam Rasoul — Yea
Sickles, Mark D. — Yea
Terry G. Kilgore — Yea
Terry L. Austin — Yea
Thomas A. Garrett, Jr. — Yea
Thomas C. Wright, Jr. — Yea
Todd E. Pillion — Yea
Tony O. Wilt — Yea
Tyler, Roslyn C. — Yea
Vivian E. Watts — Yea

Official roll call →

Subjects

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Frequently asked questions

What does SB 891 do?
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. This bill is identical to
Who sponsors SB 891?
SB 891 is sponsored by A. Benton "Ben" Chafin.
What is the current status of SB 891?
This bill has been enacted into law. Introduced December 20, 2016. Enacted.
Where can I track SB 891?
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