SENATE BILL No. 535

June 12, 2001, Introduced by Senator STILLE and referred to the Committee on Economic Development, International Trade and Regulatory Affairs.

A bill to amend 1927 PA 10, entitled

"An act to authorize cemetery corporations to sell or convey

property rights, franchises and liabilities to a municipal

corporation,"

by amending the title and sections 1, 2, 3, and 4 (MCL 456.181,

456.182, 456.183, and 456.184).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 TITLE

2 An act to authorize cemetery corporations, PARTNERSHIPS,

3 LIMITED LIABILITY COMPANIES, AND OTHER LEGAL ENTITIES to sell,

4 ASSIGN, or convey property rights, franchises, and liabilities to

5 a municipal corporation.

6 Sec. 1. (1) Any corporation A LEGAL ENTITY organized

7 under any law of this state for the purpose of establishing or

8 maintaining a cemetery or burying ground is hereby authorized

9 to MAY sell, assign, transfer, or convey to any municipal

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1 corporation , in which such THE cemetery or burying ground

2 is located or to any municipal corporation being within 10

3 miles of the municipal corporation in which such THAT cemetery

4 is located , all or any part of its assets, rights, franchises,

5 and liabilities. upon such THE SALE, ASSIGNMENT, TRANSFER, OR

6 CONVEYANCE MAY ALSO BE AS A RESULT OF THE DISPOSITION OF THE CEM-

7 ETERY AND ITS ASSETS AND LIABILITIES UNDER A RECEIVERSHIP OR CON-

8 SERVATORSHIP ACTION UNDER SECTION 9 OF THE CEMETERY REGULATION

9 ACT, 1968 PA 251, MCL 456.529.

10 (2) THE SALE, ASSIGNMENT, TRANSFER, OR CONVEYANCE UNDER SUB-

11 SECTION (1) MAY BE ACCORDING TO terms as may be ARE ORDERED OR

12 mutually agreed upon, whenever UNDER EITHER OF THE FOLLOWING

13 CIRCUMSTANCES:

14 (A) THE OWNER, PARTNER, OR a majority of the owners, STOCK-

15 HOLDERS, PARTNERS, OR MEMBERS of the stock or scrip OTHER EVI-

16 DENCE OF OWNERSHIP OR CONTROL issued by said cemetery

17 corporation THE LEGAL ENTITY present and voting shall, at a

18 special meeting called for that purpose. , decide to do so.

19 (B) PURSUANT TO AN ORDER OF A COURT OF COMPETENT JURISDIC-

20 TION AS DESCRIBED IN SUBSECTION (1).

21 (3) The term "municipal AS USED IN THIS ACT:

22 (A) "LEGAL ENTITY" MEANS A SOLE PROPRIETORSHIP, PARTNERSHIP,

23 CORPORATION, LIMITED LIABILITY COMPANY, OR ANY OTHER ENTITY.

24 (B) "MUNICIPAL corporation" as used in this act shall be

25 construed to mean any MEANS A county, township, city, or

26 village.

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1 Sec. 2. (1) The EXCEPT AS OTHERWISE PROVIDED IN

2 SUBSECTION (2), THE GOVERNING board of directors or trustees of

3 said cemetery corporation THE LEGAL ENTITY, AS APPLICABLE, may

4 , at a regular meeting thereof, pass a resolution containing

5 the substance of the contract of conveyance proposed to be

6 entered into between said corporation THE LEGAL ENTITY and

7 any A municipal corporation , and calling a special meeting

8 of the OWNERS, PARTNERS, MEMBERS, OR stockholders or scrip

9 holders for the purpose of authorizing such THAT transfer.

10 (2) A CEMETERY MAY BE TRANSFERRED TO A MUNICIPAL CORPORATION

11 IN WHICH THE CEMETERY IS LOCATED PURSUANT TO A COURT ORDER ISSUED

12 AS A RESULT OF A RECEIVERSHIP OR CONSERVATORSHIP ACTION CONDUCTED

13 UNDER SECTION 9 OF THE CEMETERY REGULATION ACT, 1968 PA 251, MCL

14 456.529, WITHOUT A RESOLUTION EXECUTED BY THE GOVERNING BOARD OF

15 THE LEGAL ENTITY UNDER SUBSECTION (1).

16 Sec. 3. (1) Notice EXCEPT AS OTHERWISE PROVIDED FOR IN

17 SUBSECTION (2), NOTICE of such A meeting PURSUANT TO SECTION 2

18 shall be given by publication of a notice for 6 consecutive weeks

19 previous to the time of holding such THE meeting in a newspaper

20 published and circulated in the county wherein said corporation

21 IN WHICH THE LEGAL ENTITY has its principal office or place of

22 business. ; such THE notice shall state the time and place of

23 such THE meeting, and the ITS purpose, thereof, and the

24 substance of the PROPOSED contract of conveyance. proposed to be

25 entered into. Proof of such publication shall be filed with

26 the secretary of said corporation at THE LEGAL ENTITY, AS

27 APPLICABLE, ON or before such THE DATE OF meeting.

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1 (2) THIS SECTION DOES NOT APPLY IF THE SALE, ASSIGNMENT,

2 TRANSFER, OR CONVEYANCE IS THE RESULT OF THE DISPOSITION OF THE

3 CEMETERY AND ITS ASSETS AND LIABILITIES UNDER A RECEIVERSHIP OR

4 CONSERVATORSHIP UNDER SECTION 9 OF THE CEMETERY REGULATION ACT,

5 1968 PA 251, MCL 456.529.

6 Sec. 4. (1) None of the THE legal rights and privileges,

7 statutory or otherwise, of THE OWNERS, stockholders, scrip hold-

8 ers and lot holders of said corporation, shall be PARTNERS, OR

9 MEMBERS ARE NOT affected by the contract or conveyance by which

10 said THE cemetery property is transferred to a municipal

11 corporation. , but said THE municipal corporation shall assume

12 and perform all liabilities, charges, and duties, statutory or

13 otherwise, imposed upon or assumed by said THE MUNICIPAL

14 corporation, and fully perform all existing contracts or agree-

15 ments of said THE cemetery, corporation and shall carry out

16 and perform all provisions as to maintenance whether imposed upon

17 said corporation THE LEGAL ENTITY by statute or assumed by its

18 by-laws and any BYLAWS OR OTHER ORIGINATING DOCUMENTATION.

19 (2) ANY fund for maintenance as provided by statute or by

20 the by-laws BYLAWS OR OTHER ORIGINATING DOCUMENTATION of said

21 corporation THE LEGAL ENTITY shall be by it turned over to

22 said THE municipal corporation and shall be by said municipal

23 corporation preserved, applied, and used as shall have been by

24 REQUIRED UNDER statute or by said by-laws provided UNDER BYLAWS

25 OR OTHER ORIGINATING DOCUMENTS.

26 Enacting section 1. This amendatory act does not take

27 effect unless Senate Bill No. 534

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1 of the 91st Legislature is enacted into

2 law.

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