N.Y. Not-for-Profit Corporation Law § 1506-a: Cemetery corporations; restrictions

§ 1506-a. Cemetery corporations; restrictions.

(a) No cemetery corporation shall, directly or indirectly:

(1) sell, or have, enter into or perform a lease of any of its real

property to a funeral entity, or use any of its property for location of

a funeral entity;

(2) commingle its funds with a funeral entity;

(3) direct or carry on its business or affairs with a funeral entity;

(4) authorize control of its business or affairs by a funeral entity;

(5) engage in any sale or cross-marketing of goods or services with a

funeral entity;

(6) have or enter into or perform a management or service contract for

cemetery operations with a funeral entity; or

(7) have, enter into or perform a management contract with any entity

other than a not-for-profit cemetery corporation; provided, however,

that a not-for-profit cemetery corporation may enter into or perform a

management contract with a private cemetery corporation for the

operational management of a mausoleum or columbarium by such private

cemetery corporation provided such contract shall have first been

authorized by the board of the not-for-profit cemetery corporation.

(b) Only the provisions of subdivisions one and two of paragraph (a)

of this section shall apply to cemetery corporations with thirty acres

or less of real property dedicated to cemetery purposes, and only to the

extent the sale or lease is of real property dedicated to cemetery

purposes, and such cemeteries shall not engage in the sale of funeral

home goods or services, except if such goods and services are otherwise

permitted to be sold by cemeteries, nor shall a majority of the members

of the board of directors or trustees of such cemeteries be made up of

the representatives of a funeral entity.

(c) For the purposes of this section, "funeral entity" means a person,

partnership, corporation, limited liability company or other form of

business organization providing funeral home services, or owning,

controlling, conducting or affiliated with a funeral home, any

subsidiary thereof or an officer, director or stockholder having a ten

per centum or greater proprietary, beneficial, equitable or credit

interest in a funeral home.