Repeals provisions of law prohibiting the sale of cemetery monuments by cemetery corporations

BILL NUMBER:S4695

Title of bill

An act to repeal section 1516 of the not-for-profit corporation law relating to the sale of monuments by cemetery corporations

Purpose

To repeal section 1516 of the not-for-profit corporations law relating to the sale of monuments by cemetery corporations.

Summary of provisions

Section One - Outlines reasons for repeal.

Section Two - Repeals section 1516 of the not-for-profit corporation law.

Section Three - Effective date

Justification

In 1998, in an effort to prevent problems which had arisen in other states involving the corporate combination of funeral entities and cemeteries, the New York Legislature passed a prohibition against them. (Laws 1998, Chapter 560). In passing that law, the Legislature declared "that the state has a vital interest in the oversight of its cemeteries and in their viability as not-for-profit entities, as well as the protection of its citizens against anti-competitive practices when making important and difficult decisions regarding the burial of loved ones" (L.1998, ch. 560, § 1).

Included in that 1998 law, however was a provision designed to prevent regulated cemeteries from selling monuments (grave stones) (L.1998, Ch. 560, § 5). While intended to further the declared state interest, that provision of law has, in practice, resulted in anti-competitive practices by denying the consumers the benefits of cost comparisons when faced with the need to purchase a monument.

Cemeteries are now struggling economically, threatening the stability and future sustainability of our state's cemeteries. The 1998 prohibition on cemetery monument sales applies to those cemeteries incorporated under the not-for-profit corporation law, but does not apply to certain other cemeteries (religious, municipal, or private). Therefore, the 1998 law does not treat all cemeteries or consumers equally. Because it is in the interest of New York State to encourage competitiveness, thereby promoting the economic viability of all cemeteries, and because it is in the interests of consumers to have greater choice of product and price when purchasing monuments, this bill would repeal the 1998 law section regarding monument sales.

Legislative history

2011-12 - S.5539

Fiscal implications

Nominal

Effective date

This act shall take effect on the thirtieth day after is shall become law.