SENATE, No. 1505

STATE OF NEW JERSEY

INTRODUCED SEPTEMBER 19, 1996

By Senator ADLER

An Act concerning the incorporation of certain parks and public places and amending various parts of the statutory law.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. N.J.S.15A:2-1 is amended to read as follows:

    a. A corporation may be organized under this act for any lawful purpose other than for pecuniary profit including, without being limited to, any one or more of the following purposes: charitable; benevolent; eleemosynary; educational; cemetery; civic; patriotic; political; religious; social; fraternal; literary; cultural; athletic; scientific; agricultural; horticultural; animal husbandry; volunteer fire company; ambulance, first aid or rescue; professional, commercial, industrial or trade association; [and] labor union and cooperative purposes; and park or public place pursuant to R.S.40:61-13.

    b. A corporation for which organization is permitted under any other statute of this State may not be organized under this act unless that statute permits organization under this act.

    c. A corporation may be organized under this act for any purpose or purposes for which corporations may be incorporated under Title 16 of the Revised Statutes.

    d. No corporation organized under this act shall have or issue capital stock or shares. No dividend shall be paid and no part of the income or profit of a corporation organized under this act shall be distributed to its members, trustees or officers, but a corporation may pay compensation in a reasonable amount to its members, trustees and officers, for services rendered, may pay interest on loans or other credit advances by members, trustees and officers, may confer benefits on its members in conformity with its purposes, and, upon dissolution, may make distributions to its members as permitted by this act; except the payment, benefit, or distribution shall not be deemed to be a dividend or distribution of income or profit.

(cf: N.J.S.15A:2-1)

    2. R.S.40:61-13 is amended to read as follows:

40:61-13. When a park or public place, the title of which is in trustees or in a corporation, all of whose shareholders are trustees, is within the corporate limits of a municipality, the governing body of such municipality may enter into an agreement with such trustees or corporation, as a consideration in whole or in part for a conveyance of the park to the municipality, providing for the expenditure of not less than a designated sum annually for the maintenance, upkeep and improvement thereof, to be specified in such agreement, as arranged upon between the parties, and thereupon accept a conveyance of such park subject to the conditions under which such trustees or corporation hold the same, provided such trustees or corporation have power to make such conveyance.

    After the making of such conveyance the agreement shall continue to be binding upon the municipality and may be enforced by appropriate civil action or proceeding in lieu of prerogative writ instituted by any of the grantors in the deed, or their heirs or legal representatives or of any taxpayer resident in the municipality.

(cf: P.L.1953, c.37, s.209)

    3. R.S.40:61-14 is amended to read as follows:

    40:61-14. Any such municipality, without taking title to such park may appropriate such sum or sums of money as the governing body shall think proper for the maintenance of roads, paths, lakes, bridges, planting of trees, flowers and shrubbery, the erection of shelters, stands, rest houses, seats, and provisions for the comfort and convenience of the persons using the park, but money so appropriated shall be used and expended by the proper officer of the municipality under the direction of the appropriate committee of the governing body thereof, subject to the approval of the trustees of the park or of the corporation, all of whose shareholders are trustees, holding title to the park.

(cf: R.S.40:61-14)

    4. This act shall take effect immediately.

STATEMENT

    This bill would permit a municipality to appropriate monies for the support of a park or public place, the title of which is in trustees, or in a corporation all of whose shareholders are trustees of the park or public place. Current law does not permit the appropriation of municipal funds for the support of parks or public places titled in a corporate name. This bill would enable trustees of parks and public places to adopt a corporation form, thereby limiting their personal liability exposure for park or public place related incidents, while still permitting a municipality to contribute to the support of the park or public place.

Permits appropriation of municipal funds to support park or public place owned by corporation whose stockholders are trustees.