§ 1506-D — Additional requirements for merger or consolidation of cemetery corporations in certain circumstances

§ 1506-d. Additional requirements for merger or consolidation of\ncemetery corporations in certain circumstances. (a) A merger or\nconsolidation of cemetery corporations may be approved notwithstanding\nthat the surviving corporation or consolidated corporation will own land\nthat does not form one continuous tract or that exceeds two hundred\nacres in the aggregate, but only with the recommendation of the cemetery\nboard. The cemeteries proposing such a merger or consolidation shall\nfirst prove to the satisfaction of the cemetery board that:\n (1) the plan of merger or consolidation is economically feasible and\nfinancially responsible;\n (2) the merger or consolidation does not harm the interests of each\ncemetery corporation, their lot owners, the communities in which the\nconstituent cemeteries are located, or the state;\n (3) the surviving or consolidated corporation will have the resources,\nability and commitment of directors and officers to ensure that all the\nconstituent cemeteries are properly operated and maintained, that they\nwill not fall into disrepair and dilapidation and become a burden upon\nthe community, that they will be operated for the mutual benefit of lot\nowners, and that they will continue to serve the local communities in\nwhich they are located;\n (4) the municipalities which would be required to assume the care and\ncontrol of any part of the cemetery if the surviving or consolidated\ncemetery corporation were to be abandoned have been notified of the\nproposed merger or consolidation; and\n (5) the plan of merger or consolidation submitted to the cemetery\nboard shall include the following:\n (i) a description of the financial assets of each constituent cemetery\ncorporation demonstrating that the surviving or consolidated cemetery\nwill have sufficient financial resources to operate all locations\nsubsequent to merger or consolidation;\n (ii) a proposal for management of financial assets of the surviving or\nconsolidated cemetery, including management of trust funds of the\nconstituent cemeteries;\n (iii) a proposal for maintenance, storage and availability of all\ncorporate and cemetery records of the surviving or consolidated cemetery\nincluding procedures for physical or remote access to such records by\npersons entitled to access;\n (iv) a proposal for maintenance, storage and availability of all\ncorporate and cemetery records relating to the constituent cemeteries,\nincluding procedures for physical or remote access to such records by\npersons entitled to access;\n (v) a plan for maintenance and operation of all locations in an\nequitable manner;\n (vi) an agreement that contact information for the surviving or\nconsolidated cemetery will be posted at the entrance to each location of\nthe surviving or consolidated cemetery and on any website maintained by\nit;\n (vii) a proposal for the conduct of annual and special lot owner\nmeetings that permits lot owners who were lot owners of a constituent\ncemetery to attend, actively participate in, and vote at such meetings\nremotely; and\n (viii) a proposal for providing notice to lot owners who were lot\nowners of a constituent cemetery of the place, date and hour of the\nannual and any special lot owner meetings in compliance with section six\nhundred five of this chapter, and that also provides for: notice to be\npublished in a newspaper located in each county in which any constituent\ncemetery was located, and notice to be prominently posted on the\nhomepage of any website maintained by the surviving or consolidated\ncemetery.\n (b) In addition to the requirements of section nine hundred three of\nthis chapter, lot owner approval of the plan of merger or consolidation\nmust meet these requirements:\n (1) Notice of the meeting to lot owners by a constituent cemetery\ncorporation that will not be a surviving cemetery corporation may not be\nserved by publication, unless the constituent cemetery demonstrates that\nnotice by means other than publication would cause undue hardship;\n (2) Additional notice of the meeting shall be conspicuously posted at\nthe cemetery at least sixty days prior to the meeting and shall provide\nthe name, telephone number and address of a person from whom a copy of\nthe plan of merger or consolidation may be obtained; and\n (3) Additional notice of the meeting, along with the plan of merger or\nconsolidation or an outline of the material features of the plan, shall\nbe conspicuously posted, by each constituent corporation, on any website\nit maintains or through which it conducts business.\n (c) The cemetery board may adopt rules and regulations as are\nnecessary to carry out the purposes and provisions of this section.\n