S T A T E O F N E W Y O R K
________________________________________________________________________
5726
2009-2010 Regular Sessions
I N S E N A T E
June 1, 2009
___________
Introduced by Sen. KLEIN -- 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
reacquisition of a lot, plot, or part thereof owned by a burial socie-
ty or by a cemetery corporation; and in relation to the definition of
a burial society
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1502 of the not-for-profit corporation law is
amended by adding a new paragraph (q) to read as follows:
(Q) THE TERM "BURIAL SOCIETY" MEANS A CORPORATION OR UNINCORPORATED
ASSOCIATION OR SOCIETY HAVING AMONG ITS ACTIVITIES OR ITS FORMER ACTIV-
ITIES THE PROVISION OF BURIAL BENEFITS FOR ITS MEMBERS.
S 2. Paragraphs (d) and (f) of section 1513-a of the not-for-profit
corporation law, as added by chapter 478 of the laws of 2003, are
amended and four new paragraphs (i), (j), (k) and (l) are added to read
as follows:
(d) Upon the sale of a lot, plot or part thereof reacquired by the
corporation under the provisions of paragraph (a), (b), or (c) of this
section, thirty-five percent of the net proceeds shall be placed in the
permanent maintenance fund and sixty-five percent shall be placed in the
current maintenance fund. PROVIDED, HOWEVER, THAT IF THEIR PROPERTY WAS
REACQUIRED UNDER PARAGRAPH (I) OF THIS SECTION, TEN PERCENT OF THE NET
PROCEEDS SHALL BE PLACED IN THE PERMANENT MAINTENANCE FUND, FIFTY-SEVEN
PERCENT SHALL BE PLACED IN THE CURRENT MAINTENANCE FUND AND THIRTY-THREE
PERCENT SHALL BE PLACED IN A PERPETUAL CARE FUND WHICH THE CEMETERY
SHALL ESTABLISH IN THE NAME OF THE DEFUNCT SOCIETY FOR THE EXCLUSIVE
PURPOSE OF MAINTENANCE OF THE GROUNDS ON WHICH THE GRAVES WERE REAC-
QUIRED. IF, HOWEVER THE NUMBER OF GRAVES RECLAIMED BY THE CEMETERY IS
LESS THAN ONE HUNDRED, FROM ANY ONE BURIAL SOCIETY THEN THIRTY-FIVE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10650-04-9
S. 5726 2
PERCENT OF THE NET PROCEEDS SHALL BE PLACED IN THE PERMANENT MAINTENANCE
FUND AND SIXTY-FIVE PERCENT SHALL BE PLACED IN THE CURRENT MAINTENANCE
FUND.
(f) The provisions of this section shall not apply to [a lot, plot or
part thereof whose record owner is a corporation or unincorporated asso-
ciation or society having among its activities or its former activities
the provision of burial benefits for its members] INCORPORATED OR UNIN-
CORPORATED RELIGIOUS ASSOCIATIONS OR SOCIETIES.
(I) A CEMETERY CORPORATION MAY, UPON APPLICATION AND APPROVAL BY THE
CEMETERY BOARD, REACQUIRE, RESUBDIVIDE, AND RESELL A LOT, PLOT OR PART
THEREOF FORMERLY OWNED BY A BURIAL SOCIETY UNDER THE FOLLOWING CIRCUM-
STANCES:
(1) IF THE CEMETERY CORPORATION HAS RECEIVED A REQUEST TO MAKE A BURI-
AL ON THE GROUNDS OF A BURIAL SOCIETY AND THE PROVISIONS OF PARAGRAPH
(H) OF SECTION FIFTEEN HUNDRED TWELVE OF THIS ARTICLE HAD TO BE INVOKED
TO MAKE THE BURIAL THEN THE CEMETERY CORPORATION MAY, AT ITS DISCRETION,
COMMENCE THE PROCESS OF REACQUIRING THE UNUSED GRAVES ON THE GROUNDS OF
THE BURIAL SOCIETY, EXCEPT THAT ANY GRAVES THAT HAVE BEEN RESERVED FOR
INDIVIDUALS WHERE SUCH RESERVATIONS HAVE BEEN RECORDED ON THE BOOKS AND
RECORDS OF THE CEMETERY CORPORATION SHALL BE EXEMPT FROM RECLAMATION; OR
(2) IF ROUTINE MAILINGS OR PROXY MAILINGS ARE SENT TO THE OFFICERS OF
RECORD OF A BURIAL SOCIETY AND SUCH MAILINGS ARE RETURNED BY THE POST
OFFICE, THE CEMETERY CORPORATION MAY, AT ITS DISCRETION, MAKE A SECOND
MAILING BY CERTIFIED MAIL RETURN RECEIPT REQUESTED TO EACH OFFICER OF
RECORD OF THE BURIAL SOCIETY AS RECORDED ON THE CEMETERY'S BOOKS AND
RECORDS AND, IF EACH OF THESE MAILINGS IS RETURNED BY THE POST OFFICE,
THE CEMETERY CORPORATION MAY, AT ITS DISCRETION, COMMENCE THE PROCESS OF
REACQUIRING THE UNUSED GRAVES ON THE GROUNDS OF THE BURIAL SOCIETY,
EXCEPT THAT ANY GRAVES THAT HAVE BEEN RESERVED FOR INDIVIDUALS WHERE
SUCH RESERVATIONS HAVE BEEN RECORDED ON THE BOOKS AND RECORDS OF THE
CEMETERY CORPORATION SHALL BE EXEMPT FROM REACQUISITION.
(J) IF A CEMETERY CORPORATION HAS DECIDED TO COMMENCE THE PROCESS OF
REACQUIRING GRAVES OWNED BY A BURIAL SOCIETY IT SHALL:
(1) SEND BY CERTIFIED MAIL RETURN RECEIPT REQUESTED TO EACH INDIVIDUAL
WHO HAS ENGAGED IN PROPRIETARY ACTIVITIES IN CONNECTION WITH GRAVES ON
THE GROUNDS OF A BURIAL SOCIETY, SEEKING THE NAMES AND ADDRESSES OF ANY
CURRENT OFFICERS OF THE BURIAL SOCIETY AND INFORMING THOSE INDIVIDUALS
OF THE CEMETERY CORPORATION'S INTENTIONS OF REACQUIRING THE UNUSED
GRAVES ON THE GROUNDS OF THE BURIAL SOCIETY;
(2) SEND BY CERTIFIED MAIL RETURN RECEIPT REQUESTED TO EACH INDIVIDUAL
WHO HAS A GRAVE RESERVED OR DEEDED TO THEM A LETTER SEEKING THE NAMES
AND ADDRESSES OF ANY CURRENT OFFICERS OF THE BURIAL SOCIETY AND INFORM-
ING SUCH INDIVIDUALS OF THE CEMETERY CORPORATION'S INTENTIONS OR REAC-
QUIRING THE UNUSED GRAVES ON THE GROUNDS OF THE BURIAL SOCIETY;
(3) POST A NOTICE AS PROVIDED IN CLAUSE THREE OF PARAGRAPH (A) OF THIS
SECTION;
(4) PUBLISH A NOTICE AS PROVIDED IN CLAUSE FIVE OF PARAGRAPH (A) OF
THIS SECTION;
(5) PREPARE AND SUBMIT AN AFFIDAVIT AS PROVIDED IN CLAUSE SIX OF PARA-
GRAPH (A) OF THIS SECTION; AND
(6) UPON THE SALE OF ANY GRAVE OR GRAVES ON THE GROUNDS OF THE BURIAL
SOCIETY WHICH HAVE BEEN REACQUIRED BY THE CEMETERY CORPORATION, THE
CEMETERY CORPORATION SHALL DISTRIBUTE THE NET PROCEEDS OF THE SALE AS
PROVIDED IN PARAGRAPH (D) OF THIS SECTION.
(K) THE CEMETERY CORPORATION SHALL HOLD OFF THE SALE OF TEN PERCENT OF
THE GRAVES IT REACQUIRES FROM THE BURIAL SOCIETY FOR TWENTY-FIVE YEARS
S. 5726 3
AS A RESERVE IN THE EVENT AN INDIVIDUAL OR INDIVIDUALS ARE IDENTIFIED
WHO HAVE A VALID CLAIM FOR BURIAL ON THE GROUNDS OF THE BURIAL SOCIETY.
(L) AT THE TIME THE GRAVES THAT HAVE BEEN REACQUIRED BY A CEMETERY
CORPORATION FROM A BURIAL SOCIETY ARE SOLD, THE CONTRACT OF SALE SHALL
CONTAIN A CLAUSE IN BOLD TYPE WHICH SPECIFIES THE SIZE, STYLE, AND TYPE
OF MONUMENTS PERMITTED IN THE SECTION IN WHICH SUCH GRAVES ARE LOCATED.
S 3. This act shall take effect immediately.