Senate Bill S5539

                                BILL NUMBER:S5539

TITLE OF BILL:
An act
to repeal section 1516 of the not-for-profit corporations 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- Establishes an 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:
This is a new bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


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