Bill S4324A-2013

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

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

Details

Actions

  • Jun 10, 2014: referred to corporations, authorities and commissions
  • Jun 10, 2014: RETURNED TO ASSEMBLY
  • Jun 10, 2014: REPASSED SENATE
  • Jun 2, 2014: AMENDED ON THIRD READING 4324A
  • Jun 2, 2014: VOTE RECONSIDERED - RESTORED TO THIRD READING
  • Jun 2, 2014: returned to senate
  • Jun 2, 2014: RECALLED FROM ASSEMBLY
  • Mar 19, 2014: referred to corporations, authorities and commissions
  • Mar 19, 2014: DELIVERED TO ASSEMBLY
  • Mar 19, 2014: PASSED SENATE
  • Mar 12, 2014: ADVANCED TO THIRD READING
  • Mar 11, 2014: 2ND REPORT CAL.
  • Mar 10, 2014: 1ST REPORT CAL.246
  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • May 20, 2013: referred to corporations, authorities and commissions
  • May 20, 2013: DELIVERED TO ASSEMBLY
  • May 20, 2013: PASSED SENATE
  • May 8, 2013: ADVANCED TO THIRD READING
  • May 7, 2013: 2ND REPORT CAL.
  • May 6, 2013: 1ST REPORT CAL.541
  • Mar 21, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Calendars

Votes

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 4324--A Cal. No. 246 2013-2014 Regular Sessions IN SENATE 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
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
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.

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