A BILL TO BE ENTITLED
AN ACT to amend the uniform prudent investor act and to make conforming changes to the laws regulating cemeteries and the practice of funeral service as related to trust funds.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 36C‑9‑901(d)(1) reads as rewritten:
"(d)	This Article does not apply to:
(1)	Unless the trust provides otherwise by specific reference to this Article:
a.	Trusts under any federal employee retirement income security statute or other retirement or pension trusts;
	 
c.	Trusts that are created by or under premarital or postmarital agreements, divorce settlements, settlements of other proceedings or disputes;
d.	Transfers under a Uniform Transfers to Minors Act;
e.	Transfers under a Uniform Custodial Trust Act; or
f.	Honorary trusts, trusts for pets, and trusts for cemetery lots."
SECTION 2.  G.S. 65‑60.1(e) reads as rewritten:
"(e)	Any trustee shall invest and reinvest cemetery trust funds in accordance with G.S. 32‑71."
SECTION 3.  G.S. 90‑210.61(a)(1) reads as rewritten: 
"(a)	Preneed funeral funds are subject to the provisions of this Article and shall be deposited or applied as follows:
(1)	If the preneed funeral contract purchaser chooses to fund the preneed funeral contract by a trust deposit or deposits, the preneed licensee shall deposit all funds in accordance with G.S. 32‑71 within 30 days from the end of the calendar month in which payment is received. The preneed licensee, at the time of making the deposit, shall furnish to the trustee the name of each preneed funeral contract purchaser and the amount of payment on each for which the deposit is being made. The preneed licensee may establish an individual trust fund for each preneed funeral contract or a trust account for all preneed funeral contracts. Accounting records shall be maintained for each individual preneed funeral contract purchaser showing the amounts deposited and invested, and interest, dividends, increases, and accretions earned. Except as provided in this Article, all interest, dividends, increases, decreases, expenses, taxes, or accretions earned by the funds shall remain with the trust account. The trust fund may be charged with applicable taxes and fees. Penalties charged by a financial institution for early withdrawals caused by a transfer pursuant to G.S. 90‑210.63 shall be paid by the preneed licensee. Penalties charged as a result of other early withdrawals as permitted by this Article shall be paid from the trust fund, and the financial institution shall give the preneed funeral contract purchaser prompt notice of these penalties."
SECTION 4.  This act is effective when it becomes law.