Section 1506-A. Cemetery corporations; restrictions  


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  • (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.
        (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.