S T A T E   O F   N E W   Y O R K
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                                  5726

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              June 1, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to amend the not-for-profit corporation law, in relation to the
  reacquisition of a lot, plot, or part thereof owned by a burial socie-
  ty or by a cemetery corporation; and in relation to the definition  of
  a burial society

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1502  of  the  not-for-profit  corporation  law  is
amended by adding a new paragraph (q) to read as follows:
  (Q)  THE  TERM  "BURIAL SOCIETY" MEANS A CORPORATION OR UNINCORPORATED
ASSOCIATION OR SOCIETY HAVING AMONG ITS ACTIVITIES OR ITS FORMER  ACTIV-
ITIES THE PROVISION OF BURIAL BENEFITS FOR ITS MEMBERS.
  S  2.  Paragraphs  (d) and (f) of section 1513-a of the not-for-profit
corporation law, as added by chapter  478  of  the  laws  of  2003,  are
amended  and four new paragraphs (i), (j), (k) and (l) are added to read
as follows:
  (d) Upon the sale of a lot, plot or part  thereof  reacquired  by  the
corporation  under  the provisions of paragraph (a), (b), or (c) of this
section, thirty-five percent of the net proceeds shall be placed in  the
permanent maintenance fund and sixty-five percent shall be placed in the
current maintenance fund.  PROVIDED, HOWEVER, THAT IF THEIR PROPERTY WAS
REACQUIRED  UNDER  PARAGRAPH (I) OF THIS SECTION, TEN PERCENT OF THE NET
PROCEEDS SHALL BE PLACED IN THE PERMANENT MAINTENANCE FUND,  FIFTY-SEVEN
PERCENT SHALL BE PLACED IN THE CURRENT MAINTENANCE FUND AND THIRTY-THREE
PERCENT  SHALL  BE  PLACED  IN  A PERPETUAL CARE FUND WHICH THE CEMETERY
SHALL ESTABLISH IN THE NAME OF THE DEFUNCT  SOCIETY  FOR  THE  EXCLUSIVE
PURPOSE  OF  MAINTENANCE  OF  THE GROUNDS ON WHICH THE GRAVES WERE REAC-
QUIRED.  IF, HOWEVER THE NUMBER OF GRAVES RECLAIMED BY THE  CEMETERY  IS
LESS  THAN  ONE  HUNDRED,  FROM  ANY ONE BURIAL SOCIETY THEN THIRTY-FIVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10650-04-9
              

S. 5726                             2

PERCENT OF THE NET PROCEEDS SHALL BE PLACED IN THE PERMANENT MAINTENANCE
FUND AND SIXTY-FIVE PERCENT SHALL BE PLACED IN THE  CURRENT  MAINTENANCE
FUND.
  (f)  The provisions of this section shall not apply to [a lot, plot or
part thereof whose record owner is a corporation or unincorporated asso-
ciation or society having among its activities or its former  activities
the  provision of burial benefits for its members] INCORPORATED OR UNIN-
CORPORATED RELIGIOUS ASSOCIATIONS OR SOCIETIES.
  (I) A CEMETERY CORPORATION MAY, UPON APPLICATION AND APPROVAL  BY  THE
CEMETERY  BOARD,  REACQUIRE, RESUBDIVIDE, AND RESELL A LOT, PLOT OR PART
THEREOF FORMERLY OWNED BY A BURIAL SOCIETY UNDER THE  FOLLOWING  CIRCUM-
STANCES:
  (1) IF THE CEMETERY CORPORATION HAS RECEIVED A REQUEST TO MAKE A BURI-
AL  ON  THE  GROUNDS OF A BURIAL SOCIETY AND THE PROVISIONS OF PARAGRAPH
(H) OF SECTION FIFTEEN HUNDRED TWELVE OF THIS ARTICLE HAD TO BE  INVOKED
TO MAKE THE BURIAL THEN THE CEMETERY CORPORATION MAY, AT ITS DISCRETION,
COMMENCE  THE PROCESS OF REACQUIRING THE UNUSED GRAVES ON THE GROUNDS OF
THE BURIAL SOCIETY, EXCEPT THAT ANY GRAVES THAT HAVE BEEN  RESERVED  FOR
INDIVIDUALS  WHERE SUCH RESERVATIONS HAVE BEEN RECORDED ON THE BOOKS AND
RECORDS OF THE CEMETERY CORPORATION SHALL BE EXEMPT FROM RECLAMATION; OR
  (2) IF ROUTINE MAILINGS OR PROXY MAILINGS ARE SENT TO THE OFFICERS  OF
RECORD  OF  A  BURIAL SOCIETY AND SUCH MAILINGS ARE RETURNED BY THE POST
OFFICE, THE CEMETERY CORPORATION MAY, AT ITS DISCRETION, MAKE  A  SECOND
MAILING  BY  CERTIFIED  MAIL RETURN RECEIPT REQUESTED TO EACH OFFICER OF
RECORD OF THE BURIAL SOCIETY AS RECORDED ON  THE  CEMETERY'S  BOOKS  AND
RECORDS  AND,  IF EACH OF THESE MAILINGS IS RETURNED BY THE POST OFFICE,
THE CEMETERY CORPORATION MAY, AT ITS DISCRETION, COMMENCE THE PROCESS OF
REACQUIRING THE UNUSED GRAVES ON THE  GROUNDS  OF  THE  BURIAL  SOCIETY,
EXCEPT  THAT  ANY  GRAVES  THAT HAVE BEEN RESERVED FOR INDIVIDUALS WHERE
SUCH RESERVATIONS HAVE BEEN RECORDED ON THE BOOKS  AND  RECORDS  OF  THE
CEMETERY CORPORATION SHALL BE EXEMPT FROM REACQUISITION.
  (J)  IF  A CEMETERY CORPORATION HAS DECIDED TO COMMENCE THE PROCESS OF
REACQUIRING GRAVES OWNED BY A BURIAL SOCIETY IT SHALL:
  (1) SEND BY CERTIFIED MAIL RETURN RECEIPT REQUESTED TO EACH INDIVIDUAL
WHO HAS ENGAGED IN PROPRIETARY ACTIVITIES IN CONNECTION WITH  GRAVES  ON
THE  GROUNDS OF A BURIAL SOCIETY, SEEKING THE NAMES AND ADDRESSES OF ANY
CURRENT OFFICERS OF THE BURIAL SOCIETY AND INFORMING  THOSE  INDIVIDUALS
OF  THE  CEMETERY  CORPORATION'S  INTENTIONS  OF  REACQUIRING THE UNUSED
GRAVES ON THE GROUNDS OF THE BURIAL SOCIETY;
  (2) SEND BY CERTIFIED MAIL RETURN RECEIPT REQUESTED TO EACH INDIVIDUAL
WHO HAS A GRAVE RESERVED OR DEEDED TO THEM A LETTER  SEEKING  THE  NAMES
AND  ADDRESSES OF ANY CURRENT OFFICERS OF THE BURIAL SOCIETY AND INFORM-
ING SUCH INDIVIDUALS OF THE CEMETERY CORPORATION'S INTENTIONS  OR  REAC-
QUIRING THE UNUSED GRAVES ON THE GROUNDS OF THE BURIAL SOCIETY;
  (3) POST A NOTICE AS PROVIDED IN CLAUSE THREE OF PARAGRAPH (A) OF THIS
SECTION;
  (4)  PUBLISH  A  NOTICE AS PROVIDED IN CLAUSE FIVE OF PARAGRAPH (A) OF
THIS SECTION;
  (5) PREPARE AND SUBMIT AN AFFIDAVIT AS PROVIDED IN CLAUSE SIX OF PARA-
GRAPH (A) OF THIS SECTION; AND
  (6) UPON THE SALE OF ANY GRAVE OR GRAVES ON THE GROUNDS OF THE  BURIAL
SOCIETY  WHICH  HAVE  BEEN  REACQUIRED  BY THE CEMETERY CORPORATION, THE
CEMETERY CORPORATION SHALL DISTRIBUTE THE NET PROCEEDS OF  THE  SALE  AS
PROVIDED IN PARAGRAPH (D) OF THIS SECTION.
  (K) THE CEMETERY CORPORATION SHALL HOLD OFF THE SALE OF TEN PERCENT OF
THE  GRAVES  IT REACQUIRES FROM THE BURIAL SOCIETY FOR TWENTY-FIVE YEARS

S. 5726                             3

AS A RESERVE IN THE EVENT AN INDIVIDUAL OR  INDIVIDUALS  ARE  IDENTIFIED
WHO HAVE A VALID CLAIM FOR BURIAL ON THE GROUNDS OF THE BURIAL SOCIETY.
  (L)  AT  THE  TIME  THE GRAVES THAT HAVE BEEN REACQUIRED BY A CEMETERY
CORPORATION FROM A BURIAL SOCIETY ARE SOLD, THE CONTRACT OF  SALE  SHALL
CONTAIN  A CLAUSE IN BOLD TYPE WHICH SPECIFIES THE SIZE, STYLE, AND TYPE
OF MONUMENTS PERMITTED IN THE SECTION IN WHICH SUCH GRAVES ARE LOCATED.
  S 3. This act shall take effect immediately.