senate Bill S4324A

Relates to the regulation of cemetery trust funds and finances by the cemetery board

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 21 / Mar / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 06 / May / 2013
    • 1ST REPORT CAL.541
  • 07 / May / 2013
    • 2ND REPORT CAL.
  • 08 / May / 2013
    • ADVANCED TO THIRD READING
  • 20 / May / 2013
    • PASSED SENATE
  • 20 / May / 2013
    • DELIVERED TO ASSEMBLY
  • 20 / May / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 10 / Mar / 2014
    • 1ST REPORT CAL.246
  • 11 / Mar / 2014
    • 2ND REPORT CAL.
  • 12 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 19 / Mar / 2014
    • PASSED SENATE
  • 19 / Mar / 2014
    • DELIVERED TO ASSEMBLY
  • 19 / Mar / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 02 / Jun / 2014
    • RECALLED FROM ASSEMBLY
  • 02 / Jun / 2014
    • RETURNED TO SENATE
  • 02 / Jun / 2014
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 02 / Jun / 2014
    • AMENDED ON THIRD READING 4324A
  • 10 / Jun / 2014
    • REPASSED SENATE
  • 10 / Jun / 2014
    • RETURNED TO ASSEMBLY
  • 10 / Jun / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Relates to the regulation of cemetery trust funds and finances by the cemetery board.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A6383A
Versions:
S4324
S4324A
Legislative Cycle:
2013-2014
Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd ยงยง1506, 1507 & 1513, N-PC L

Sponsor Memo

BILL NUMBER:S4324A

TITLE OF BILL: An act to amend the not-for-profit corporation law, in
relation to regulation of cemetery trust funds and finances by the
cemetery board

PURPOSE:

This bill would modernize and streamline provisions of the
Not-for-Profit Corporation Law to provide clear regulatory guidance to
the New York State Cemetery Board in approvals of cemetery
transactions and financial oversight. The State Cemetery Board is
composed of the Secretary of State, Attorney General and Commissioner
of Health or their designees.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph (a) of Section 1506 of
Not-for-Profit Corporation Law to grant authority for the approval of
the purchase of cemetery land to the State Cemetery Board. It
eliminates the unnecessary and duplicative step of having this
approval signed off on by the local Supreme Court after the State
Cemetery Board has approved the transaction.

Section 2 of the bill amends Section 1507 of Not-for-Profit
Corporation Law to grant the authority of the regulation of access to
cemetery trust funds to the State Cemetery Board through application
and review. This section further amends Section 1507 of Not-for-Profit
Corporation Law to modernize the process of the designation of
fiduciaries for cemeteries and require that notice shall provided to
the State Cemetery Board for review.

Section 3 of the bill relates to the resale of a lot by a lot owner to
reflect the current process in place and utilized by the State
Cemetery Board.

Section 4 of the proposal indicates that this act shall take effect
immediately.

EXISTING LAW:

The Not-for-Profit Corporation Law regulating cemeteries does not
currently reflect a modern and streamlined regulatory approach to
cemetery regulation.

JUSTIFICATION:

Existing statues related to cemetery regulation are duplicative and
create unnecessary delays in the proper oversight of regulated
cemetery entities. New York's regulated cemeteries are among the most
supervised in the nation. The State Cemetery Board is already required
to approve and be involved in the regulations of cemeteries addressed
by this bill.This legislation would grant clear authority to the State
Cemetery Board to regulate these entities.

LEGISLATIVE HISTORY:


New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4324--A
    Cal. No. 246

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 21, 2013
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- recommitted to the Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  -- reported favorably from said committee, ordered to first and second
  report,  ordered to a third reading, passed by Senate and delivered to
  the Assembly, recalled, vote reconsidered, restored to third  reading,
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading

AN ACT to amend the not-for-profit corporation law, in relation to regu-
  lation of cemetery trust funds and finances by the cemetery board

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

  Section  1. Paragraphs (a) and (i) of section 1506 of the not-for-pro-
fit corporation law, paragraph (a) as added by chapter 871 of  the  laws
of 1977 and paragraph (i) as amended by chapter 292 of the laws of 1999,
are amended to read as follows:
  (a)   Purchase of land; notice to CEMETERY board [and court approval].
No cemetery corporation, in purchasing real  property  hereafter,  shall
pay or agree to pay more than the fair and reasonable market value ther-
eof.   The terms of the purchase, including the price to be paid and the
method of payment,  shall  be  subject[,  upon  notice]  to  NOTICE  AND
APPROVAL  OF  the cemetery board[, to approval by the supreme court in a
district where any portion of the land is located].  In determining  the
fair  and  reasonable  market value, the [court] CEMETERY BOARD may take
into consideration the method by which the purchase price is to be paid.
  (i) Sale or disposition of cemetery lands. (1) No cemetery corporation
may sell or dispose of the fee of all or any part of its lands dedicated
to cemetery use, unless it  shall  prove  to  the  satisfaction  of  the
supreme court in the district where any portion of the cemetery lands is
located  OR  THE CEMETERY BOARD, THAT either: (A) [that] all bodies have

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09952-03-4

S. 4324--A                          2

been removed from each and every part of the cemetery, that all the lots
in the entire cemetery have been reconveyed to the corporation  and  are
not  used for burial purposes, and that it has no debts and liabilities,
or  (B)  [that] the land to be sold or disposed of is not used or is not
physically adaptable for burial purposes and that the sale  or  disposi-
tion  will  benefit the cemetery corporation and the owners of plots and
graves in the cemetery, and (C) [that] the sale or disposition is not to
a funeral entity as defined in paragraph (c) of section fifteen  hundred
six-a  of  this article. (2) If the sale or disposition is made pursuant
to subparagraph (A) of subdivision one of this paragraph,  the  cemetery
shall  satisfy  the court OR THE CEMETERY BOARD that it is in the public
interest to dispose of such cemetery land in the manner  proposed;  that
the  subject  land is not suitable for cemetery purposes or is no longer
needed by the community for such cemetery uses or purposes; and that the
subject land is being sold for its current market value. (3) If the sale
or disposition of the land is  made  pursuant  to  subparagraph  (B)  of
subdivision  one  of  this  paragraph, the court OR CEMETERY BOARD shall
order that the consideration received by the cemetery corporation,  less
the  necessary  expenses incurred, shall be deposited into the permanent
maintenance fund established by the  cemetery  corporation  pursuant  to
paragraph  (a)  of  section  fifteen  hundred seven of this article. (4)
Notice of any application hereunder shall be given IN  ADDITION  to  the
cemetery  board, to the holders of certificates of indebtedness and land
shares of the cemetery corporation, [and]  to  any  person  [interested]
HAVING  INFORMED THE CEMETERY BOARD BY PETITION OR NOTICE OF INTEREST in
the proceeding AND TO ANY PERSON INTERESTED IN THE  PROCEEDING  pursuant
to  section  five  hundred eleven of this chapter (Petition for leave of
court).
  S 2. Paragraph (e) and subparagraph 2 of paragraph  (e-1)  of  section
1507  of  the  not-for-profit corporation law, paragraph (e) as added by
chapter 871 of the laws of 1977 and subparagraph 2 of paragraph (e-1) as
amended by chapter 111 of the laws of  2000,  are  amended  to  read  as
follows:
  (e)  Designation  of fiduciary corporation by directors or trustees of
cemetery corporation to act as custodians of funds. Notwithstanding  the
provisions  of  any  other  law,  the  directors or trustees of cemetery
corporations are hereby authorized to designate a bank or trust  company
to act as custodian and trustee of any or all of the respective funds of
such  cemetery corporation received by it for the perpetual care of lots
in the cemetery thereof pursuant to [subdivision] PARAGRAPH (b), of this
section, the permanent maintenance of such cemetery pursuant to  [subdi-
vision] PARAGRAPH (a) of this section, and for special purposes pursuant
to  [subdivision]  PARAGRAPH (f) of this section. Such corporate trustee
shall be designated by a resolution duly adopted by the board of  direc-
tors  or  trustees and approved by a justice of the supreme court of the
judicial district in which the cemetery of said corporation  is  located
OR  THE  CEMETERY  BOARD; and the directors or trustees of such cemetery
corporation may, with the approval of the justice of the supreme  court,
revoke  such trust, and either take over such trust fund or name another
trustee to handle the same, but if not so revoked, such trust  shall  be
perpetual.    Any bank or trust company accepting any such cemetery fund
shall keep the same separate from all other funds, except that  it  may,
irrespective  of any provision contained in this article invest the same
in a legal common trust fund or in shares of a mutual  trust  investment
company  organized  under  the  banking  law, and shall pay over the net
income to the directors or trustees of the cemetery corporation by  whom

S. 4324--A                          3

it  shall  be  expended  and applied to the purpose for which such trust
fund was paid to the cemetery corporations and accounted for in  accord-
ance  with  such  [subdivisions]  PARAGRAPHS  (a),  (b)  and (f) of this
section.
  (2)  The principal of the fund shall be invested in securities permit-
ted for the investment of trust funds by sections 11-2.2 and  11-2.3  of
the  estates,  powers  and  trusts law. The principal of such fund shall
remain inviolate, except that upon application to the [supreme court  in
a  district  where  a  portion  of  the cemetery grounds is located, the
court] CEMETERY BOARD, WHICH may make an order permitting the  principal
or  a  part  thereof  to  be used for the purpose of restoring monuments
damaged or defaced by an act of vandalism. The income arising from  such
investment  shall  be  used  solely for the costs and expenses resulting
from an act of vandalism against monuments in such cemetery.
  S 3. Paragraph (c) of section 1513 of the  not-for-profit  corporation
law,  as added by chapter 871 of the laws of 1977, is amended to read as
follows:
  (c) Resale by lot owner. Before any burial shall have been made in any
such lot, plot or part thereof, or, if all the bodies therein have  been
lawfully  removed,  the  lot  owner may sell or convey such lot, plot or
part thereof [subject to the prior approval of the cemetery board.  Such
approval  shall not be granted unless] UPON NOTICE TO THE CEMETERY. SUCH
SALE SHALL ONLY OCCUR IN THOSE INSTANCES WHERE the owner  of  such  lot,
plot  or  part thereof shall have offered it to the cemetery corporation
within [two years] ONE YEAR prior to the [application for such approval]
SALE, in writing by registered or certified  mail,  at  the  price  paid
therefor by said lot owner, together with simple interest at the rate of
four  per  centum  per  annum,  and  the cemetery corporation shall have
failed to accept such offer within thirty days after the making thereof.
[In the event the lot owner shall have acquired the lot,  plot  or  part
thereof  other  than  by purchase, and provided the cemetery corporation
and the lot owner cannot agree upon a price, the  cemetery  board  shall
fix  a price therefor. In arriving at the price the cemetery board shall
take into consideration the original price for which the cemetery corpo-
ration sold the lot, plot or part thereof, and any  other  circumstances
or  factor  which equitably relates to the price. The] SUBSEQUENT TO THE
RECEIPT OF NOTICE OF SALE OF SUCH LOT, PLOT OR PART THEREOF, THE  secre-
tary  of the cemetery corporation shall file and record in its books all
instruments of transfer. An owner may convey or  devise  to  the  corpo-
ration his right and title in and to any such lot, plot or part thereof.
  S 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.