Senate File 2056 - Introduced SENATE FILE 2056 BY FEENSTRA A BILL FOR An Act relating to distributions from a cemetery care fund. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5491XS (2) 86 av/sc
S.F. 2056 Section 1. Section 523I.810, subsection 9, Code 2016, is 1 amended to read as follows: 2 9. A Not more than once every five years, a cemetery may, 3 by resolution adopted by a vote of at least two-thirds of 4 the members of its board at any authorized meeting of the 5 board, authorize the withdrawal and use of not more than 6 twenty percent of the principal of the care fund to acquire 7 additional land for cemetery purposes, to repair a mausoleum 8 or other building or structure intended for cemetery purposes, 9 to build, improve, or repair boundaries, roads and walkways 10 in the cemetery, to construct a columbarium, mausoleum, or 11 similar structure to create additional interment spaces, to 12 purchase equipment for tree, shrub, and lawn care, to purchase 13 backhoes or similar equipment used to open and close interment 14 spaces, or to purchase recordkeeping software used to maintain 15 ownership records or interment records. The resolution shall 16 establish a reasonable repayment schedule, not to exceed five 17 years. The cemetery is not required to repay funds withdrawn 18 and used pursuant to the resolution. However, the care fund 19 shall not be diminished below an amount equal to the greater 20 of twenty-five thousand dollars or five thousand dollars per 21 acre of land in the cemetery. The resolution , and if the 22 deposit of care fund income over five years is unlikely to fund 23 replenishment of the principal of the care fund, either a bond 24 or proof of insurance to guarantee replenishment of the care 25 fund, shall be filed with the commissioner thirty days prior to 26 the withdrawal of funds. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill provides that not more than once every five 31 years, a cemetery board may adopt a resolution authorizing the 32 withdrawal and use of not more than 20 percent of the principal 33 of the cemetery’s care fund for the purposes specified and the 34 amount withdrawn is not required to be repaid to the care fund. 35 -1- LSB 5491XS (2) 86 av/sc 1/ 2
S.F. 2056 Currently, a cemetery board may adopt a resolution to 1 authorize such a withdrawal of funds at any time but the 2 resolution must include a reasonable repayment schedule that 3 does not exceed five years and if the fund is not likely to be 4 replenished within five years, the resolution must include a 5 bond or proof of insurance to guarantee replenishment. 6 -2- LSB 5491XS (2) 86 av/sc 2/ 2