NY State Senate Bill 2025-S9468

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 16, 2026	referred to corporations, authorities and commissions

2025-S9468 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §1507-b, N-PC L

2025-S9468 (ACTIVE) - Summary

Relates to the administration of dormant lot-specific cemetery trusts; provides for custodianship, accounting, and related administrative provisions for such trusts.

2025-S9468 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9468

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the not-for-profit corporation law, in relation to the
administration of dormant lot-specific cemetery trusts

 
PURPOSE:

To allow cemetery corporations in New York State to assume custodianship
of dormant lot-specific cemetery trusts when no trustee, heir, or
responsible party has been identified for an extended period of time.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new section 1507-b to the not-for-profit corporation
law establishing procedures for the administration of dormant lot-spe-
cific cemetery trusts.

Section 2 provides the effective date.

 
JUSTIFICATION:

Many cemetery lots in New York State have been historically established
with lot-specific trusts intended to fund the maintenance, care, and
preservation of a particular burial plot. Over time, however, some of
these trusts have become dormant because the original trustee has passed
away, no successor trustee was designated, and no heirs or other inter-
ested parties have come forward to provide direction regarding the
trust. Under current law, there is no clear administrative mechanism for
cemeteries to manage these dormant trusts. As a result, funds intended
for the care and preservation of cemetery lots have remained unused or
difficult to administer to ensure the ongoing maintenance of the lot.

This legislation addresses this gap by allowing cemetery corporations to
voluntarily assume custodianship of dormant lot-specific trusts when no
trustee, successor, or identifiable interested party has exercised
authority over the trust for a period of thirty years. The legislation
requires funds to remain restricted assets and may not be diverted to
general cemetery operations. The cemetery must maintain separate
accounting for each trust and administer the funds according to the
original intent of the trust instrument. Additionally, the bill protects
the rights of heirs, descendants, or other interested persons, who may
come forward at any time to assert their interest and provide direction
for the trust.

By allowing cemetery corporations to administer these dormant trusts,
this bill ensures that funds originally set aside for the maintenance
and preservation of burial lots can continue to be used for their
intended purpose.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S9468 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9468
 
                             I N  S E N A T E
 
                              March 16, 2026
                                ___________
 
 Introduced  by  Sen.  FAHY  --  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
   administration of dormant lot-specific cemetery trusts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The not-for-profit corporation law is amended by adding a
 new section 1507-b to read as follows:
 § 1507-B. ADMINISTRATION OF DORMANT LOT-SPECIFIC TRUSTS.
   (A) DEFINITIONS. FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (1)   "LOT-SPECIFIC  TRUST"  MEANS  ANY  TRUST,  FUND,  ENDOWMENT,  OR
 RESTRICTED ACCOUNT ESTABLISHED FOR THE MAINTENANCE, CARE,  PRESERVATION,
 ORNAMENTATION, OR IMPROVEMENT OF A PARTICULAR CEMETERY LOT, PLOT, GRAVE,
 OR BURIAL SPACE.
   (2)  "DORMANT  LOT-SPECIFIC TRUST" SHALL MEAN A LOT-SPECIFIC TRUST FOR
 WHICH:
   (I) NO LIVING TRUSTEE IS KNOWN TO EXIST;
   (II) NO SUCCESSOR TRUSTEE IS DESIGNATED IN THE  GOVERNING  INSTRUMENT;
 AND
   (III) NO WRITTEN DIRECTION, CLAIM, OR DOCUMENTED EXERCISE OF AUTHORITY
 BY  A  PERSON  ENTITLED TO ENFORCE OR ADMINISTER SUCH TRUST HAS OCCURRED
 FOR A PERIOD OF THIRTY YEARS.
   (B) DETERMINATION OF DORMANCY.  DETERMINATION  OF  DORMANCY  SHALL  BE
 BASED  SOLELY  UPON  THE  BOOKS  AND  RECORDS MAINTAINED BY THE CEMETERY
 CORPORATION IN THE ORDINARY COURSE OF BUSINESS. NOTHING IN THIS  SECTION
 SHALL  REQUIRE  A CEMETERY CORPORATION TO CONDUCT GENEALOGICAL RESEARCH,
 INDEPENDENT INVESTIGATION, OR EXTRAORDINARY EFFORTS TO  LOCATE  TRUSTEES
 OR DESCENDANTS.
   (C)  STATUTORY SUCCESSOR CUSTODIAN. UPON DETERMINATION THAT A LOT-SPE-
 CIFIC TRUST IS DORMANT, THE CEMETERY CORPORATION  MAY  ELECT  TO  ASSUME
 STATUTORY CUSTODIANSHIP OF SUCH TRUST FOR ADMINISTRATIVE PURPOSES, WITH-
 OUT  THE NECESSITY OF COURT APPOINTMENT, AND SHALL ADMINISTER SUCH TRUST
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15191-01-6
 S. 9468                             2
 
 IN ACCORDANCE WITH THE FIDUCIARY STANDARDS APPLICABLE UNDER  THIS  ARTI-
 CLE.
   (D)  PRESERVATION  OF  RESTRICTED  STATUS;  NO  COMMINGLING. (1) FUNDS
 SUBJECT TO  CUSTODIANSHIP  UNDER  THIS  SECTION  SHALL  REMAIN  SEPARATE
 RESTRICTED  TRUST  ASSETS  AND SHALL NOT BE DEEMED PART OF THE PERMANENT
 MAINTENANCE FUND ESTABLISHED PURSUANT TO SECTION FIFTEEN  HUNDRED  SEVEN
 OF THIS ARTICLE UNLESS ORIGINALLY CONSTITUTED AS PART OF SUCH FUND.
   (2)  SUCH  FUNDS  SHALL  NOT  REVERT  TO OR BECOME PART OF THE GENERAL
 ASSETS OF THE CEMETERY CORPORATION.
   (3) CUSTODIANSHIP PURSUANT TO THIS SECTION SHALL NOT EXPAND, DIMINISH,
 OR OTHERWISE ALTER  THE  PERMISSIBLE  USE  OF  PRINCIPAL  OR  INCOME  AS
 PROVIDED IN THE ORIGINAL GOVERNING INSTRUMENT OF THE TRUST.
   (4)  FUNDS  ADMINISTERED  PURSUANT TO THIS SECTION SHALL NOT BE DEEMED
 ABANDONED PROPERTY UNDER THE ABANDONED PROPERTY LAW.
   (5) SEPARATE ACCOUNTING PURSUANT TO THIS SECTION SHALL NOT REQUIRE THE
 ESTABLISHMENT OF SEPARATE BANK OR  INVESTMENT  ACCOUNTS,  PROVIDED  THAT
 FUNDS  ARE  IDENTIFIABLE  THROUGH  APPROPRIATE  BOOKKEEPING AND INTERNAL
 RECORDS.
   (E) ACCOUNTING AND OVERSIGHT. THE CEMETERY CORPORATION SHALL  MAINTAIN
 SEPARATE  ACCOUNTING  RECORDS  FOR  EACH  DORMANT LOT-SPECIFIC TRUST AND
 SHALL ADMINISTER SUCH TRUST SUBJECT TO THE SAME INVESTMENT STANDARDS AND
 REPORTING OBLIGATIONS APPLICABLE TO  TRUST  FUNDS  UNDER  THIS  ARTICLE.
 NOTHING  IN  THIS SECTION SHALL CREATE ADDITIONAL ANNUAL REPORTING OBLI-
 GATIONS BEYOND THOSE OTHERWISE REQUIRED UNDER THIS ARTICLE.
   (F) RIGHT OF CLAIM BY DESCENDANTS OR INTERESTED PERSONS. ANY  DESCEND-
 ANT,  HEIR,  OR  PERSON  DEMONSTRATING  A FAMILIAL, OWNERSHIP, OR LAWFUL
 INTEREST IN THE BURIAL LOT ASSOCIATED WITH A DORMANT LOT-SPECIFIC  TRUST
 MAY,  AT  ANY  TIME, SUBMIT REASONABLE PROOF OF SUCH RELATIONSHIP TO THE
 CEMETERY CORPORATION AND SHALL THEREAFTER BE RECOGNIZED AS  ENTITLED  TO
 PROVIDE DIRECTION CONSISTENT WITH THE PURPOSES OF THE TRUST.
   (G)  JUDICIAL  REVIEW.  ANY  DISPUTE ARISING UNDER THIS SECTION MAY BE
 BROUGHT BEFORE THE SUPREME COURT IN THE JUDICIAL DISTRICT IN  WHICH  THE
 CEMETERY IS LOCATED.
   (H) CONSTRUCTION. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXTIN-
 GUISH THE PURPOSE OF ANY LOT-SPECIFIC TRUST OR TO AUTHORIZE DIVERSION OF
 TRUST  PRINCIPAL OR INCOME FOR PURPOSES UNRELATED TO THE CARE, PRESERVA-
 TION, OR IMPROVEMENT OF THE ASSOCIATED LOT.
   § 2. This act shall take effect immediately.

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Senate Bill S9468

Sponsored By

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2025-S9468 (ACTIVE) - Details

2025-S9468 (ACTIVE) - Summary

2025-S9468 (ACTIVE) - Sponsor Memo

2025-S9468 (ACTIVE) - Bill Text download pdf

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Sponsored By

Patricia Fahy

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

2025-S9468 (ACTIVE) - Details

2025-S9468 (ACTIVE) - Summary

2025-S9468 (ACTIVE) - Sponsor Memo

2025-S9468 (ACTIVE) - Bill Text download pdf

Comments