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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
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Sponsor's memo
BILL NUMBER:S5378
Title of bill
An act authorizing certain not-for-profit entities to liquidate their assets
Purpose
This bill allows funeral entities which were exempted from Chapter 560 of the Laws of 1998 to liquidate the assets of their associated crematory or crematorium.
Summary of provisions
Section1 amends the Not-for-Profit Corporation Law by allowing any funeral entity that operated a crematory or crematorium prior to January 1, 1998 and was exempt from the provisions of Chapter 560 of the Laws of 1998 to liquidate the assets of such crematory or crematorium. The proceeds of the liquidation can go to the operators of the crematory or crematorium on January 1, 1998 or to their successors or assigns.
Section 2 provides that this act shall take effect immediately.
Justification
Funeral entities that operated a crematory or crematorium prior to January 1, 1998 were exempt from Chapter 560 of the Laws of 1998. Yet, these funeral entities and their associated crematory or crematorium are faced with incredible restrictions when they seek to sell, merge or transfer their business. Because of the strict way in which the exemption to Chapter 560 of the Laws of 1998 has been interpreted, the only viable way for these funeral homes and their associated crematory or crematorium to continue their business or benefit from all parts of their business after they retire is to pass it on to a family member or members. Should they seek to sell the funeral entity and associated crematory or crematorium the crematory or crematorium could not be part of the sale. Its assets would have to be liquidated and the proceeds turned over to the State. This is because the interpretation of the exemption granted in Chapter 560 of the Laws of 1998 is so strict that it only applies to the owners of the funeral entity and associated crematory or crematorium at the time the exemption was granted, or their descendents thereafter.
This legislation allows any funeral entity that operated a crematory or crematorium prior to January 1, 1998 and was exempt from the provisions of Chapter 560 of the Laws of 1998 to liquidate the assets of their crematory or crematorium and have the proceeds of the liquidation go to the people who were the operators of the crematory or crematorium on January 1, 1998 or to their successors or assigns.
Legislative history
New Bill.
Fiscal implications
Minimal.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.