S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    896
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
   requiring  consent  prior  to the merger of cemetery corporations; and
   repealing certain provisions of such law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of section 1506 of the not-for-profit corpo-
 ration law, as amended by chapter 539 of the laws of 2015, is amended to
 read as follows:
   (a) Purchase of land; notice to cemetery board. (1) No cemetery corpo-
 ration, in purchasing real property hereafter, shall pay or agree to pay
 more than the fair and reasonable market value thereof. The terms of the
 purchase, including the price to be paid  and  the  method  of  payment,
 shall be subject to notice and approval of the cemetery board. In deter-
 mining the fair and reasonable market value, the cemetery board may take
 into consideration the method by which the purchase price is to be paid.
   (2)  NOTWITHSTANDING  THE RESTRICTIONS SET FORTH IN SUBPARAGRAPH THREE
 OF PARAGRAPH (H) OF THIS SECTION, A CEMETERY  CORPORATION  MAY  PURCHASE
 REAL  PROPERTY  FOR  CEMETERY  PURPOSES THAT IS NOT ADJACENT TO EXISTING
 CEMETERY PROPERTY OR THAT  WOULD  RESULT  IN  THE  CEMETERY  CORPORATION
 OWNING MORE THAN TWO HUNDRED ACRES OF LAND IN THE AGGREGATE UPON PROVING
 TO THE SATISFACTION OF THE CEMETERY BOARD:
   I.  THAT  THE  PROPOSED PURCHASE WILL BENEFIT THE CEMETERY CORPORATION
 AND THE OWNERS OF PLOTS AND GRAVES IN THE CEMETERY;
   II. THAT THE CEMETERY HAS SUFFICIENT FUNDS AND SUFFICIENT  ABILITY  TO
 TAKE ON ANY DEBT REQUIRED BY THE PROPOSED TERMS OF PURCHASE;
   III.  THAT  THE CEMETERY CORPORATION FULLY INVESTIGATED AVAILABLE LAND
 IN REASONABLE PROXIMITY TO ITS EXISTING CEMETERY AND THAT  THE  PROPOSED
 PURCHASE IS PRUDENT, TAKING INTO CONSIDERATION THE PROXIMITY OF THE LAND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07190-01-1

 S. 896                              2
 
 TO  THE  EXISTING  CEMETERY, THE QUANTITY OF LAND, THE PROPOSED PURCHASE
 PRICE, AND IF APPLICABLE, THE NUMBER OF LOT SALES AND INCOME THE LAND IS
 REASONABLY EXPECTED TO GENERATE, AND THE FUTURE NEEDS OF  THE  CEMETERY;
 AND
   IV.  THAT THE MUNICIPALITIES THAT WOULD BE REQUIRED TO ASSUME THE CARE
 AND CONTROL OF ANY PART OF THE CEMETERY IF THE CEMETERY CORPORATION WERE
 TO BE ABANDONED HAVE BEEN NOTIFIED OF THE PROPOSED PURCHASE.
   § 2. Paragraph (c) of section 1506 of the  not-for-profit  corporation
 law,  as  amended by a chapter of the laws of 2020 amending the not-for-
 profit corporation law relating to requiring consent prior to the merger
 of cemetery corporations, as proposed in legislative  bills  numbers  S.
 7155 and A.9089, is amended to read as follows:
   (c)  Cemeteries  in  Kings,  Queens,  Rockland,  Westchester,  Nassau,
 Suffolk, Putnam and Erie counties. A cemetery corporation shall not take
 by deed, devise, merger or otherwise any land in the counties of  Kings,
 Queens, Rockland, Westchester, Nassau, Suffolk, Putnam or Erie for ceme-
 tery purposes, or set apart any ground therefor in any of such counties,
 unless the consent of the board of supervisors or legislative body ther-
 eof, or of the city council of the city of New York, in respect to Kings
 or  Queens  county,  be first obtained. Such consent may be granted upon
 such conditions and under  such  regulations  and  restrictions  as  the
 public  health  and  welfare may require. Notice of application for such
 consent shall be published, once a week for six weeks, in the newspapers
 designated to publish the session laws  and  in  such  other  newspapers
 published  in  the  county as such board or body may direct, stating the
 time when the application will be made, a brief description of the lands
 proposed to be acquired, their location and the area thereof. Any person
 interested therein may be heard on such presentation. If such consent is
 granted the corporation may take and hold the lands designated  therein.
 The consent shall not authorize any one corporation to take or hold more
 than two hundred [and] fifty acres of land[, except that such limitation
 shall  not  apply  in  the  event  of a merger of cemetery corporations]
 UNLESS THE ACQUISITION IS BY AN ABANDONMENT PURSUANT TO SECTION  FIFTEEN
 HUNDRED  SIX-C  OF THIS ARTICLE OR A MERGER OR CONSOLIDATION OF CEMETERY
 CORPORATIONS PURSUANT TO ARTICLE NINE OF THIS CHAPTER THAT COMPLIES WITH
 THE ADDITIONAL REQUIREMENT OF SECTION  FIFTEEN  HUNDRED  SIX-D  OF  THIS
 ARTICLE, EXCEPT THAT SUCH LIMITATION SHALL NOT APPLY TO PARAGRAPH (N) OF
 THIS  SECTION AND THE PROVISIONS OF SUBPARAGRAPH TWO OF PARAGRAPH (A) OF
 THIS SECTION. Nothing contained in this subdivision  shall  prevent  any
 religious  corporation in existence on April fifteenth, eighteen hundred
 fifty-four, in any of said counties from using as heretofore any  burial
 ground then belonging to it within such county. Such board or body, from
 time  to time, may make such regulation as to burials in any cemetery in
 the county as the public health may require.
   § 3. Paragraph (d) of section 1506 of the  not-for-profit  corporation
 law,  as added by chapter 871 of the laws of 1977, is amended to read as
 follows:
   (d)  Limitation on the acquisition of land by  rural  cemetery  corpo-
 rations.    It  shall  not  be lawful for any rural cemetery corporation
 hereafter to acquire or take by deed, devise or otherwise, any  land  in
 any  county within the state of New York, having a population of between
 one hundred  [and]  seventy-five  thousand  and  two  hundred  thousand,
 according  to  the  federal census of nineteen hundred, or set apart any
 ground for cemetery purposes therein, where there has already  been  set
 apart  in any such county, five hundred acres of land for rural cemetery
 purposes, and the consent of the board of supervisors of any such county

 S. 896                              3
 
 shall not be granted where there has already been granted  five  hundred
 acres  of land, or upwards, within such county, to rural cemetery corpo-
 rations UNLESS THE ACQUISITION IS BY AN ABANDONMENT PURSUANT TO  SECTION
 FIFTEEN  HUNDRED  SIX-C  OF THIS ARTICLE OR A MERGER OR CONSOLIDATION OF
 CEMETERY CORPORATIONS PURSUANT TO ARTICLE  NINE  OF  THIS  CHAPTER  THAT
 COMPLIES  WITH  THE  ADDITIONAL  REQUIREMENTS OF SECTION FIFTEEN HUNDRED
 SIX-D OF THIS ARTICLE. [But  nothing]  NOTHING  herein  contained  shall
 affect  any lawful consent or grant hitherto made by the board of super-
 visors of any such county.
   § 4. Subparagraph 1 of paragraph (e) of section 1506 of  the  not-for-
 profit  corporation law, as added by chapter 871 of the laws of 1977, is
 amended to read as follows:
   (1)  It shall not be lawful for any corporation, association or person
 hereafter to set aside or use for cemetery purposes  any  lands  in  any
 county  within  the  state  erected on and after January first, eighteen
 hundred ninety, adjoining a city of the first class and having  a  popu-
 lation  of between eighty thousand and eighty-five thousand according to
 the federal census of nineteen hundred ten; but nothing herein contained
 shall prevent cemetery corporations formed prior to January first, nine-
 teen hundred seventeen, which own in such county  a  cemetery  in  which
 burials  have been made prior to such date, from setting apart and using
 for burial purposes lands lying contiguous or adjacent to such  cemetery
 which  lands have been heretofore acquired by a recorded deed of convey-
 ance made to such a cemetery corporation either for burial purposes,  or
 for  the purposes of the convenient transaction of its general business,
 which lands shall have been acquired with the consent of  the  board  of
 supervisors;  nor  to prohibit the dedication or use of land within such
 county for a family cemetery as provided in [subdivision] PARAGRAPH  (c)
 of  section  fourteen  hundred  one  of  this  chapter.  NOTHING  HEREIN
 CONTAINED SHALL PROHIBIT A CEMETERY CORPORATION FROM ASSUMING MANAGEMENT
 AND MAINTENANCE OF AN ABANDONED CEMETERY  PURSUANT  TO  SECTION  FIFTEEN
 HUNDRED  SIX-C  OF THIS ARTICLE OR A MERGER OR CONSOLIDATION OF CEMETERY
 CORPORATIONS PURSUANT TO ARTICLE NINE OF THIS CHAPTER THAT COMPLIES WITH
 THE ADDITIONAL REQUIREMENTS OF SECTION FIFTEEN  HUNDRED  SIX-D  OF  THIS
 ARTICLE.
   §  5.  Subparagraph 3 of paragraph (e) of section 1506 of the not-for-
 profit corporation law, as added by a chapter of the laws of 2020 amend-
 ing the not-for-profit corporation law  relating  to  requiring  consent
 prior to the merger of cemetery corporations, as proposed in legislative
 bills numbers S.7155 and A. 9089, is REPEALED.
   §  6.  Paragraph (h) of section 1506 of the not-for-profit corporation
 law, as amended by a chapter of the laws of 2020 amending  the  not-for-
 profit corporation law relating to requiring consent prior to the merger
 of  cemetery  corporations,  as proposed in legislative bills numbers S.
 7155 and A. 9089, is amended to read as follows:
   (h) Acquisition of property by condemnation OR OTHERWISE.  (1) If  the
 certificate of incorporation or by-laws of a cemetery corporation do not
 exclude  any  person, on equal terms with other persons, from the privi-
 lege of purchasing a lot or of burial in its cemetery, such  corporation
 may,  from  time  to  time, acquire by condemnation, exclusively for the
 purposes of a cemetery, not more than two hundred acres of land  in  the
 aggregate,  forming  one  continuous  tract, wholly or partly within the
 county in which its certificate of incorporation is filed  or  recorded,
 except as in this section otherwise provided as to the counties of Erie,
 Nassau, Suffolk, Putnam, Kings, Queens, Rockland and Westchester.

 S. 896                              4
 
   (2)  A  cemetery  corporation may acquire by condemnation, exclusively
 for the purposes of a cemetery, any real property or any interest there-
 in necessary to supply water for the uses  of  such  cemetery,  and  the
 right  to  lay, relay, repair and maintain conduits and water pipes with
 connections  and  fixtures,  in, through or over the lands of others and
 the right to intercept and divert the flow of waters from the  lands  of
 riparian  owners,  and  from persons owning or interested in any waters.
 But no such cemetery corporation shall have power to take or  use  water
 from  any  of the canals of this state, or any canal reservoirs as feed-
 ers, or any streams which have been taken by the state for  the  purpose
 of supplying the canals with water.
   (3)  A  cemetery  corporation may acquire, otherwise than by condemna-
 tion, real property [as outlined in this article  for  burial  purposes]
 EXCLUSIVELY  FOR THE PURPOSES OF A CEMETERY AS AFORESAID IN SUBPARAGRAPH
 1 OF THIS PARAGRAPH and additional real property for the purposes of the
 convenient transactions of its business, NO PORTION OF  WHICH  SHALL  BE
 USED  FOR  THE  PURPOSES OF A CEMETERY. NOTWITHSTANDING THE FOREGOING OR
 ANY OTHER PROVISION OF LAW TO THE CONTRARY, A CEMETERY CORPORATION  THAT
 HOLDS REAL PROPERTY FOR CEMETERY PURPOSES THAT EXCEEDS TWO HUNDRED ACRES
 IN  THE AGGREGATE OR THAT DOES NOT FORM ONE CONTINUOUS TRACT AS A RESULT
 OF ACQUISITIONS OF REAL PROPERTY THAT OCCURRED PRIOR  TO  THE  EFFECTIVE
 DATE  OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND TWENTY WHICH AMENDED
 THIS PARAGRAPH AND FOR WHICH ALL APPROVALS AND CONSENTS REQUIRED AT  THE
 TIME  TO  ACQUIRE  SUCH REAL PROPERTY WERE OBTAINED, MAY CONTINUE TO USE
 SUCH REAL PROPERTY FOR CEMETERY PURPOSES.
   § 7. Section 1506-d of the not-for-profit corporation law, as added by
 a chapter of the laws of 2020 amending  the  not-for-profit  corporation
 law relating to requiring consent prior to the merger of cemetery corpo-
 rations,  as  proposed in legislative bills numbers S. 7155 and A. 9089,
 is REPEALED.
   § 8. The not-for-profit corporation law is amended  by  adding  a  new
 section 1506-d to read as follows:
   § 1506-D. ADDITIONAL REQUIREMENTS FOR MERGER OR CONSOLIDATION OF CEME-
 TERY  CORPORATIONS  IN  CERTAIN  CIRCUMSTANCES.  (A) A MERGER OR CONSOL-
 IDATION OF CEMETERY CORPORATIONS MAY BE  APPROVED  NOTWITHSTANDING  THAT
 THE SURVIVING CORPORATION OR CONSOLIDATED CORPORATION WILL OWN LAND THAT
 DOES  NOT FORM ONE CONTINUOUS TRACT OR THAT EXCEEDS TWO HUNDRED ACRES IN
 THE AGGREGATE, BUT ONLY WITH THE RECOMMENDATION OF THE  CEMETERY  BOARD.
 THE  CEMETERIES  PROPOSING  SUCH  A  MERGER OR CONSOLIDATION SHALL FIRST
 PROVE TO THE SATISFACTION OF THE CEMETERY BOARD THAT:
   (1) THE PLAN OF MERGER OR CONSOLIDATION IS ECONOMICALLY  FEASIBLE  AND
 FINANCIALLY RESPONSIBLE;
   (2)  THE  MERGER  OR CONSOLIDATION DOES NOT HARM THE INTERESTS OF EACH
 CEMETERY CORPORATION, THEIR LOT OWNERS, THE  COMMUNITIES  IN  WHICH  THE
 CONSTITUENT CEMETERIES ARE LOCATED, OR THE STATE;
   (3) THE SURVIVING OR CONSOLIDATED CORPORATION WILL HAVE THE RESOURCES,
 ABILITY  AND COMMITMENT OF DIRECTORS AND OFFICERS TO ENSURE THAT ALL THE
 CONSTITUENT CEMETERIES ARE PROPERLY OPERATED AND MAINTAINED,  THAT  THEY
 WILL  NOT  FALL INTO DISREPAIR AND DILAPIDATION AND BECOME A BURDEN UPON
 THE COMMUNITY, THAT THEY WILL BE OPERATED FOR THE MUTUAL BENEFIT OF  LOT
 OWNERS,  AND  THAT  THEY WILL CONTINUE TO SERVE THE LOCAL COMMUNITIES IN
 WHICH THEY ARE LOCATED;
   (4) THE MUNICIPALITIES WHICH WOULD BE REQUIRED TO ASSUME THE CARE  AND
 CONTROL  OF  ANY  PART  OF THE CEMETERY IF THE SURVIVING OR CONSOLIDATED
 CEMETERY CORPORATION WERE TO BE ABANDONED  HAVE  BEEN  NOTIFIED  OF  THE
 PROPOSED MERGER OR CONSOLIDATION; AND

 S. 896                              5
 
   (5)  THE  PLAN  OF  MERGER  OR CONSOLIDATION SUBMITTED TO THE CEMETERY
 BOARD SHALL INCLUDE THE FOLLOWING:
   (I) A DESCRIPTION OF THE FINANCIAL ASSETS OF EACH CONSTITUENT CEMETERY
 CORPORATION  DEMONSTRATING  THAT  THE SURVIVING OR CONSOLIDATED CEMETERY
 WILL HAVE SUFFICIENT FINANCIAL RESOURCES TO OPERATE ALL LOCATIONS SUBSE-
 QUENT TO MERGER OR CONSOLIDATION;
   (II) A PROPOSAL FOR MANAGEMENT OF FINANCIAL ASSETS OF THE SURVIVING OR
 CONSOLIDATED CEMETERY,  INCLUDING  MANAGEMENT  OF  TRUST  FUNDS  OF  THE
 CONSTITUENT CEMETERIES;
   (III)  A  PROPOSAL  FOR  MAINTENANCE,  STORAGE AND AVAILABILITY OF ALL
 CORPORATE AND CEMETERY RECORDS OF THE SURVIVING OR CONSOLIDATED CEMETERY
 INCLUDING PROCEDURES FOR PHYSICAL OR REMOTE ACCESS TO  SUCH  RECORDS  BY
 PERSONS ENTITLED TO ACCESS;
   (IV)  A  PROPOSAL  FOR  MAINTENANCE,  STORAGE  AND AVAILABILITY OF ALL
 CORPORATE AND CEMETERY RECORDS RELATING TO THE  CONSTITUENT  CEMETERIES,
 INCLUDING  PROCEDURES  FOR  PHYSICAL OR REMOTE ACCESS TO SUCH RECORDS BY
 PERSONS ENTITLED TO ACCESS;
   (V) A PLAN FOR MAINTENANCE AND OPERATION OF ALL LOCATIONS IN AN  EQUI-
 TABLE MANNER;
   (VI)  AN  AGREEMENT  THAT  CONTACT  INFORMATION  FOR  THE SURVIVING OR
 CONSOLIDATED CEMETERY WILL BE POSTED AT THE ENTRANCE TO EACH LOCATION OF
 THE SURVIVING OR CONSOLIDATED CEMETERY AND ON ANY WEBSITE MAINTAINED  BY
 IT;
   (VII) A PROPOSAL FOR THE CONDUCT OF ANNUAL AND SPECIAL LOT OWNER MEET-
 INGS  THAT PERMITS LOT OWNERS WHO WERE LOT OWNERS OF A CONSTITUENT CEME-
 TERY TO ATTEND, ACTIVELY PARTICIPATE  IN,  AND  VOTE  AT  SUCH  MEETINGS
 REMOTELY; AND
   (VIII)  A  PROPOSAL  FOR  PROVIDING  NOTICE TO LOT OWNERS WHO WERE LOT
 OWNERS OF A CONSTITUENT CEMETERY OF THE PLACE,  DATE  AND  HOUR  OF  THE
 ANNUAL AND ANY SPECIAL LOT OWNER MEETINGS IN COMPLIANCE WITH SECTION SIX
 HUNDRED  FIVE  OF THIS CHAPTER, AND THAT ALSO PROVIDES FOR: NOTICE TO BE
 PUBLISHED IN A NEWSPAPER LOCATED IN EACH COUNTY IN WHICH ANY CONSTITUENT
 CEMETERY WAS LOCATED, AND NOTICE TO BE PROMINENTLY POSTED ON  THE  HOME-
 PAGE  OF  ANY  WEBSITE MAINTAINED BY THE SURVIVING OR CONSOLIDATED CEME-
 TERY.
   (B) IN ADDITION TO THE REQUIREMENTS OF SECTION NINE HUNDRED  THREE  OF
 THIS  CHAPTER, LOT OWNER APPROVAL OF THE PLAN OF MERGER OR CONSOLIDATION
 MUST MEET THESE REQUIREMENTS:
   (1) NOTICE OF THE MEETING TO LOT  OWNERS  BY  A  CONSTITUENT  CEMETERY
 CORPORATION THAT WILL NOT BE A SURVIVING CEMETERY CORPORATION MAY NOT BE
 SERVED BY PUBLICATION, UNLESS THE CONSTITUENT CEMETERY DEMONSTRATES THAT
 NOTICE BY MEANS OTHER THAN PUBLICATION WOULD CAUSE UNDUE HARDSHIP;
   (2)  ADDITIONAL NOTICE OF THE MEETING SHALL BE CONSPICUOUSLY POSTED AT
 THE CEMETERY AT LEAST SIXTY DAYS PRIOR TO THE MEETING AND SHALL  PROVIDE
 THE  NAME,  TELEPHONE NUMBER AND ADDRESS OF A PERSON FROM WHOM A COPY OF
 THE PLAN OF MERGER OR CONSOLIDATION MAY BE OBTAINED; AND
   (3) ADDITIONAL NOTICE OF THE MEETING, ALONG WITH THE PLAN OF MERGER OR
 CONSOLIDATION OR AN OUTLINE OF THE MATERIAL FEATURES OF THE PLAN,  SHALL
 BE CONSPICUOUSLY POSTED, BY EACH CONSTITUENT CORPORATION, ON ANY WEBSITE
 IT MAINTAINS OR THROUGH WHICH IT CONDUCTS BUSINESS.
   (C)  THE  CEMETERY BOARD MAY ADOPT RULES AND REGULATIONS AS ARE NECES-
 SARY TO CARRY OUT THE PURPOSES AND PROVISIONS OF THIS SECTION.
   § 9. The provisions of sections one through eight of  this  act  shall
 apply  to  plans  of  merger  or consolidation submitted to the cemetery
 board on or after the effective date of this act.

 S. 896                              6
 
   § 10. This act shall take effect on the same  date  and  in  the  same
 manner  as  a  chapter  of  the laws of 2020 amending the not-for-profit
 corporation law relating to requiring consent prior  to  the  merger  of
 cemetery  corporations, as proposed in legislative bills numbers S. 7155
 and A. 9089, takes effect.