Provides relative to perpetual cemetery care trust funds created and administered in accordance with the Louisiana Cemetery Act
Impact
If enacted, HB 785 will make significant amendments to existing state laws governing cemetery care funds by clarifying the roles and responsibilities of trust fund trustees. This structure is intended to improve compliance and financial health of cemetery care funds, thereby enhancing the reliability of cemetery maintenance. Additionally, the bill restricts the use of fund income strictly to cemetery preservation and prohibits expenditures on unsold property, tightening financial controls over how public trust funds are managed.
Summary
House Bill 785 addresses the management and distribution of perpetual cemetery care trust funds under the Louisiana Cemetery Act. The bill aims to revise existing provisions concerning the establishment, administration, and distribution processes of these trust funds, ensuring they are used solely for the care of cemeteries where interment rights have been sold. The proposed legislation introduces specific requirements and methods for income distribution, which may include both net income and total return methods, and enforces stringent conditions on trust fund management by designating a trustee who must comply with the Louisiana Cemetery Board's regulatory framework.
Sentiment
The sentiment around HB 785 appears to be generally supportive, particularly among stakeholders invested in cemetery management and regulation. Proponents feel that clearer guidelines and restrictions will enhance the integrity and sustainability of cemetery care funds, ensuring they serve their intended purpose. However, there may be concerns regarding the administrative burden placed on trustees and potential impacts on how funds can be invested and utilized, which could elicit resistance from some sectors within the cemetery or financial community.
Contention
Notable points of contention may arise around the income distribution methods outlined in the bill, particularly the restrictions placed on trust fund investing and distribution. Some may argue that the limits could hinder growth potential for these funds or impose burdensome oversight requirements. Furthermore, the requirement for written consent from all participants in a master trust fund might prove challenging for smaller cemetery authorities, potentially resulting in operational difficulties as they adapt to the new regulations.