S T A T E O F N E W Y O R K
________________________________________________________________________
470
2017-2018 Regular Sessions
I N A S S E M B L Y
January 9, 2017
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the estates, powers and trusts law and the not-for-pro-
fit corporation law, in relation to authorizing cemetery corporations
to designate a community foundation as the trustee of a trust for the
perpetual care, maintenance, improvement and embellishment of cemetery
property
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The estates, powers and trusts law is amended by adding a
new section 1-2.1-a to read as follows:
§ 1-2.1-A COMMUNITY FOUNDATION
A COMMUNITY FOUNDATION IS A TAX-EXEMPT PUBLIC CHARITY, IN ACCORDANCE
WITH INTERNAL REVENUE CODE SECTION 501(C)(3); THAT IS ORGANIZED AND
OPERATED FOR THE LONG TERM BENEFIT OF A DEFINED GEOGRAPHIC AREA.
§ 2. Section 8-1.5 of the estates, powers and trusts law, as renum-
bered by chapter 686 of the laws of 1967, is amended to read as follows:
§ 8-1.5 Trusts for cemetery purposes
Dispositions of property in trust for the purpose of the perpetual
care, maintenance, improvement or embellishment of cemeteries or private
burial lots in cemeteries, and the roadways, lawns, hedges, walks, fenc-
es, monuments, structures and tombs in such cemeteries or on such
private burial lots are permitted and shall be deemed to be for charita-
ble and benevolent purposes. Such dispositions are not invalid by reason
of any indefiniteness or uncertainty of the persons designated as bene-
ficiaries, nor shall they be invalid as violating any existing rule
against perpetuities. Nothing herein contained shall affect any existing
authority of the courts to determine the reasonableness of the amount of
such disposition. Any cemetery association OR CEMETERY CORPORATION
SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN OF THE NOT-FOR-PROFIT
CORPORATION LAW may act as trustee, OR DESIGNATE A BANK, BANKING INSTI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02588-01-7
A. 470 2
TUTION OR COMMUNITY FOUNDATION TO ACT AS TRUSTEE, of and execute any
such trust with respect to lots, roadways, lawns, hedges, walks, fences,
monuments, structures and tombs both within its own cemetery limits and
outside of any cemetery under its control but within the county where
such cemetery is located, whether or not such power is included among
its corporate powers.
§ 3. Section 8-1.6 of the estates, powers and trusts law, as amended
by chapter 686 of the laws of 1967, is amended to read as follows:
§ 8-1.6 Deposit of money in trust by owner of lots in private unincorpo-
rated cemetery
The owner of lots in any private unincorporated cemetery may deposit
in trust for the care of such lots a sum not exceeding four hundred
dollars for each lot so owned with any bank [or], banking institution OR
COMMUNITY FOUNDATION located [in a city, town or village] conveniently
near such private unincorporated cemetery, provided such bank [or],
banking institution OR COMMUNITY FOUNDATION is willing to accept such
money in trust and agrees to apply the proceeds of the interest thereon
to the care and upkeep of such lots. Such banks [or], banking insti-
tutions AND COMMUNITY FOUNDATIONS are hereby authorized to accept such
money for the purpose described herein and to apply the proceeds of the
interest thereon to the care and upkeep of any such lots. The provisions
of this section do not apply to savings banks.
§ 4. Section 1502 of the not-for-profit corporation law is amended by
adding a new paragraph (r) to read as follows:
(R) THE TERM "COMMUNITY FOUNDATION" MEANS ANY TAX-EXEMPT PUBLIC CHARI-
TY, IN ACCORDANCE WITH INTERNAL REVENUE CODE SECTION 501(C)(3), THAT IS
ORGANIZED AND OPERATED FOR THE LONG TERM BENEFIT OF A DEFINED GEOGRAPHIC
AREA.
§ 5. Subdivision 7 of paragraph (a) of section 1506-a of the not-for-
profit corporation law, as added by chapter 560 of the laws of 1998, is
amended to read as follows:
(7) have, enter into or perform a management contract with any entity
other than a not-for-profit cemetery corporation; PROVIDED, HOWEVER,
THAT THIS SUBDIVISION SHALL NOT BE DEEMED TO PROHIBIT A CEMETERY CORPO-
RATION FROM DEPOSITING MONEYS IN TRUST WITH A BANK, BANKING INSTITUTION
OR COMMUNITY FOUNDATION FOR THE PURPOSE OF THE PERPETUAL CARE, MAINTE-
NANCE, IMPROVEMENT AND EMBELLISHMENT OF CEMETERY PROPERTY.
§ 6. Paragraph (e) of section 1507 of the not-for-profit corporation
law, as amended by chapter 539 of the laws of 2015, is 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, OR COMMUNITY FOUNDATION 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
paragraph (b)[,] of this section, the permanent maintenance of such
cemetery pursuant to paragraph (a) of this section, and for special
purposes pursuant to paragraph (f) of this section. Such corporate trus-
tee shall be designated by a resolution duly adopted by the board of
directors 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
A. 470 3
or name another trustee to handle the same, but if not so revoked, such
trust shall be perpetual. Any bank [or], trust company, OR COMMUNITY
FOUNDATION 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 trus-
tees of the cemetery corporation by whom it shall be expended and
applied to the purpose for which such trust fund was paid to the ceme-
tery corporations and accounted for in accordance with such paragraphs
(a), (b) and (f) of this section.
§ 7. This act shall take effect immediately.