Provides that certain funeral entities may liquidate the assets of their associated crematory or crematorium

BILL NUMBER:S3105

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

Section 1 amends the Not-for-Profit Corporation Law to allow 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 businesses. The current, strict interpretations of the law prohibit the sale of a crematory or crematorium as part of the sale of a funeral entity. The law instead requires that the assets of the entity 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. Thus, the only economically viable way for these funeral homes and their associated crematory or crematorium to continue to operate or benefit from all parts of their business after they retire, is to pass it on to a family members.

This legislation changes the current interpretation of the law to permit 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. The proceeds of the liquidation may be assigned to the operators of the crematory or crematorium on January 1, 1998 or to their successors or assigns. Permitting all funeral entities to liquidate assets associated with crematories or crematoriums fosters the economic viability of these businesses and as such, this bill should be passed.

Legislative history

2013-2014: S.5378 - referred to corporations, authorities, and commissions

Fiscal implications

Minimal.

Effective date

This act shall take effect immediately.