Bill Text: NY A00470 | 2017-2018 | General Assembly | Introduced
Bill Title: Authorizes cemetery corporations to designate a community foundation as the trustee of a trust for the perpetual care, maintenance, improvement and embellishment of cemetery property.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2018-01-03 - referred to corporations, authorities and commissions [A00470 Detail]
Download: New_York-2017-A00470-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 470 2017-2018 Regular Sessions IN ASSEMBLY 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: 1 Section 1. The estates, powers and trusts law is amended by adding a 2 new section 1-2.1-a to read as follows: 3 § 1-2.1-a Community foundation 4 A community foundation is a tax-exempt public charity, in accordance 5 with internal revenue code section 501(c)(3); that is organized and 6 operated for the long term benefit of a defined geographic area. 7 § 2. Section 8-1.5 of the estates, powers and trusts law, as renum- 8 bered by chapter 686 of the laws of 1967, is amended to read as follows: 9 § 8-1.5 Trusts for cemetery purposes 10 Dispositions of property in trust for the purpose of the perpetual 11 care, maintenance, improvement or embellishment of cemeteries or private 12 burial lots in cemeteries, and the roadways, lawns, hedges, walks, fenc- 13 es, monuments, structures and tombs in such cemeteries or on such 14 private burial lots are permitted and shall be deemed to be for charita- 15 ble and benevolent purposes. Such dispositions are not invalid by reason 16 of any indefiniteness or uncertainty of the persons designated as bene- 17 ficiaries, nor shall they be invalid as violating any existing rule 18 against perpetuities. Nothing herein contained shall affect any existing 19 authority of the courts to determine the reasonableness of the amount of 20 such disposition. Any cemetery association or cemetery corporation 21 subject to the provisions of article fifteen of the not-for-profit 22 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. LBD02588-01-7A. 470 2 1 tution or community foundation to act as trustee, of and execute any 2 such trust with respect to lots, roadways, lawns, hedges, walks, fences, 3 monuments, structures and tombs both within its own cemetery limits and 4 outside of any cemetery under its control but within the county where 5 such cemetery is located, whether or not such power is included among 6 its corporate powers. 7 § 3. Section 8-1.6 of the estates, powers and trusts law, as amended 8 by chapter 686 of the laws of 1967, is amended to read as follows: 9 § 8-1.6 Deposit of money in trust by owner of lots in private unincorpo- 10 rated cemetery 11 The owner of lots in any private unincorporated cemetery may deposit 12 in trust for the care of such lots a sum not exceeding four hundred 13 dollars for each lot so owned with any bank [or], banking institution or 14 community foundation located [in a city, town or village] conveniently 15 near such private unincorporated cemetery, provided such bank [or], 16 banking institution or community foundation is willing to accept such 17 money in trust and agrees to apply the proceeds of the interest thereon 18 to the care and upkeep of such lots. Such banks [or], banking insti- 19 tutions and community foundations are hereby authorized to accept such 20 money for the purpose described herein and to apply the proceeds of the 21 interest thereon to the care and upkeep of any such lots. The provisions 22 of this section do not apply to savings banks. 23 § 4. Section 1502 of the not-for-profit corporation law is amended by 24 adding a new paragraph (r) to read as follows: 25 (r) The term "community foundation" means any tax-exempt public chari- 26 ty, in accordance with internal revenue code section 501(c)(3), that is 27 organized and operated for the long term benefit of a defined geographic 28 area. 29 § 5. Subdivision 7 of paragraph (a) of section 1506-a of the not-for- 30 profit corporation law, as added by chapter 560 of the laws of 1998, is 31 amended to read as follows: 32 (7) have, enter into or perform a management contract with any entity 33 other than a not-for-profit cemetery corporation; provided, however, 34 that this subdivision shall not be deemed to prohibit a cemetery corpo- 35 ration from depositing moneys in trust with a bank, banking institution 36 or community foundation for the purpose of the perpetual care, mainte- 37 nance, improvement and embellishment of cemetery property. 38 § 6. Paragraph (e) of section 1507 of the not-for-profit corporation 39 law, as amended by chapter 539 of the laws of 2015, is amended to read 40 as follows: 41 (e) Designation of fiduciary corporation by directors or trustees of 42 cemetery corporation to act as custodians of funds. Notwithstanding the 43 provisions of any other law, the directors or trustees of cemetery 44 corporations are hereby authorized to designate a bank [or], trust 45 company, or community foundation to act as custodian and trustee of any 46 or all of the respective funds of such cemetery corporation received by 47 it for the perpetual care of lots in the cemetery thereof pursuant to 48 paragraph (b)[,] of this section, the permanent maintenance of such 49 cemetery pursuant to paragraph (a) of this section, and for special 50 purposes pursuant to paragraph (f) of this section. Such corporate trus- 51 tee shall be designated by a resolution duly adopted by the board of 52 directors or trustees and approved by a justice of the supreme court of 53 the judicial district in which the cemetery of said corporation is 54 located or the cemetery board; and the directors or trustees of such 55 cemetery corporation may, with the approval of the justice of the 56 supreme court, revoke such trust, and either take over such trust fundA. 470 3 1 or name another trustee to handle the same, but if not so revoked, such 2 trust shall be perpetual. Any bank [or], trust company, or community 3 foundation accepting any such cemetery fund shall keep the same separate 4 from all other funds, except that it may, irrespective of any provision 5 contained in this article invest the same in a legal common trust fund 6 or in shares of a mutual trust investment company organized under the 7 banking law, and shall pay over the net income to the directors or trus- 8 tees of the cemetery corporation by whom it shall be expended and 9 applied to the purpose for which such trust fund was paid to the ceme- 10 tery corporations and accounted for in accordance with such paragraphs 11 (a), (b) and (f) of this section. 12 § 7. This act shall take effect immediately.
