69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session


                            Enrolled

                         House Bill 2639

Sponsored by Representative JENSON; Representatives MONTGOMERY,
  SCHRADER, WHELAN, Senator NELSON


                     CHAPTER ................


                             AN ACT


Relating to cemeteries; creating new provisions; and amending ORS
  97.020 and 97.820.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 97.020 is amended to read:
  97.020.  { + (1) + } The provisions of ORS 97.030, 97.120,
97.310 to 97.350, 97.360 (1), 97.510  { - , - }  { +  and + }
97.550   { - and 97.810 to 97.860 - } relating to private
cemeteries do not apply to:
    { - (1) - }  { +  (a) + } Any religious or eleemosynary
corporation, church, religious society or denomination,
corporation sole administering temporalities of any church or
religious society or denomination or any cemetery
 { - organized, controlled and operated by any of them - }  { +
that such entity organizes, controls or operates + }.
    { - (2) - }  { +  (b) + } Any county  { - , town - }  or city
cemetery.
   { +  (2) The provisions of ORS 97.810 to 97.860 relating to
private cemeteries do not apply to:
  (a) Any religious or eleemosynary corporation, church,
religious society or denomination, corporation sole administering
temporalities of any church or religious society or denomination
or any cemetery that such entity organizes, controls or operates,
unless the cemetery authority for an entity described in this
paragraph elects to subject itself to ORS 97.810 to 97.860.
  (b) Any county or city cemetery, unless the county or city
elects to subject itself to ORS 97.810 to 97.860. + }
  SECTION 2. ORS 97.820 is amended to read:
  97.820. (1) Every cemetery authority   { - which - }
 { + that + } operates a cemetery may place its cemetery under
endowed care and establish, maintain and operate an endowment
care fund. All endowed care funds shall be deposited with and
held solely by the trustee or custodian appointed by the cemetery
authority. The provisions of this subsection shall not apply to a
city or county-owned cemetery { + , unless the city or county has
elected to subject itself to ORS 97.810 to 97.860 + }.
  (2) Endowment care and special care funds may be commingled for
investment and the income therefrom shall be divided between the
endowment care and special care funds in the proportion that each
fund contributed to the principal sum invested. The income of the
endowment care fund may be used only to finance the care of the
cemetery.


Enrolled House Bill 2639 (HB 2639-INTRO)                   Page 1



  (3) The cemetery authority shall appoint as sole trustee of the
endowment care fund a trust company qualified to engage in the
trust business or as sole custodian of the endowment care fund, a
bank or a savings association. Such trust company, bank or
savings association shall receive and accept the fund, including
any accumulated endowment care fund in existence at the time of
its appointment and perform such duties as are agreed upon in the
agreement between it and the cemetery authority. A bank or
savings association not qualified to engage in the trust business
may act as custodian of such endowment care fund provided:
  (a) The duties of the bank or savings association are
essentially custodial or ministerial in nature; and
  (b) The bank or savings association invests the funds from such
plan only in its own time or savings deposits.
  (4) The trustee or custodian may resign upon written notice to
the cemetery authority or the cemetery authority may remove the
trustee or custodian by written notice to it. In case of the
resignation or removal of the trustee or custodian, the cemetery
authority forthwith shall appoint a successor trustee or
custodian and provide for the direct transfer of all endowed care
funds and earnings thereon from the former trustee or custodian
to the successor trustee or custodian.
   { +  (5) ORS 294.035 does not apply to funds held by a county
or city under ORS 97.810 to 97.860. + }
    { - (5) - }   { + (6) + } As used in this section:
  (a) 'Bank' means a banking institution, as defined in ORS
706.005, or a national bank, as defined in ORS 706.005.
  (b) 'Savings association' means a savings association as
defined in ORS 722.004 or a federal association, as defined in
ORS 722.004.
  SECTION 3.  { + Section 4 of this Act is added to and made a
part of ORS 97.810 to 97.860. + }
  SECTION 4.  { + (1) The cemetery authority that operates a
cemetery for any religious or eleemosynary corporation, church,
religious society or denomination, corporation sole administering
temporalities of any church or religious society or denomination
and any county or city may make an irrevocable election to have
ORS 97.810 to 97.860 apply to any cemetery controlled or operated
by the cemetery authority, county or city by filing a written
statement indicating such action with the Secretary of State. The
statement shall be in the form prescribed by the Secretary of
State and shall contain the information specified by the
Secretary of State.
  (2) When a cemetery authority, county or city files a statement
described in this section with the Secretary of State, ORS 97.810
to 97.860 will apply to a cemetery controlled or operated by the
cemetery authority, county or city beginning on the first day of
the fiscal year next following the filing of the statement. + }
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Enrolled House Bill 2639 (HB 2639-INTRO)                   Page 2





Passed by House April 9, 1997


      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate May 9, 1997


      ...........................................................
                                              President of Senate














































Enrolled House Bill 2639 (HB 2639-INTRO)                   Page 3





Received by Governor:

......M.,............., 1997

Approved:

......M.,............., 1997


      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 1997


      ...........................................................
                                               Secretary of State









































Enrolled House Bill 2639 (HB 2639-INTRO)                   Page 4