PRINTER'S NO. 707
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
633
Session of
2017
INTRODUCED BY McGARRIGLE, SCARNATI, KILLION, RAFFERTY AND
BARTOLOTTA, APRIL 17, 2017
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 17, 2017
AN ACT
Amending the act of August 14, 1963 (P.L.1059, No.459), entitled
"An act prohibiting future need sales of cemetery merchandise
and services, funeral merchandise and services, except under
certain conditions; requiring the establishment of and
deposit into a merchandise trust fund of certain amount of
the proceeds of any such sale; providing for the
administration of such trust funds and the payment of money
therefrom; conferring powers and imposing duties on orphans'
courts, and prescribing penalties," further providing for
deposits into merchandise trust funds; providing for price
and description reports; and further providing for funds held
in trust, for payments from merchandise trust funds, for
filing of financial reports and for penalty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of August 14, 1963
(P.L.1059, No.459), referred to as the Cemetery and Funeral
Merchandise Trust Fund Law, is amended to read:
Section 2. (a) Any person entering into any such contract
as the seller shall deposit into a merchandise trust fund,
established for that purpose with a banking institution in the
Commonwealth authorized to perform trust functions, as trustee
of such fund, seventy per cent of the retail sale price of the
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personal property or personal services so sold for future need.
(b) The deposit herein required to be made into such
merchandise trust fund shall be made within thirty days after
[the end of the month in which the final payment of the purchase
price provided for under such contract is received by the seller
from the purchaser or otherwise. Prior to receipt by the seller
of final payment of the purchase price provided for under any
such contract, the seller, at the end of each month, shall
deposit, in a special account in a banking institution properly
identified as being for such purpose, all payments on account
received under any such contract during the month and ensuing
months commencing thereafter, after first deducting the
percentage permitted to be retained by seller. Withdrawals from
such special account shall be made by seller only for the
purpose of transfer to the merchandise trust fund upon final
payment of the purchase price by the purchaser under the
contract.] the last day of the month in which any funds are
received by the seller as provided for under the contract,
including periodic payments after first deducting the percentage
permitted to be retained by the seller.
(c) If, prior to final payment of the purchase price under
the contract, the purchaser shall default in making payments on
account thereof, the seller shall be entitled to retain as
liquidated damages [and withdraw from the special account]
thirty percent of the contract price[, and shall refund to the
purchaser the balance in the special account, if any]. The total
refund shall be paid to the purchaser within sixty days of the
default.
(d) Each deposit into the merchandise trust fund shall be
identified by the seller by furnishing the trustee with the name
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of the purchaser, the amount of the retail sales price and the
percentage thereof herein required to be deposited, together
with a statement of or a copy of the contract and the personal
property and services to be furnished by the seller thereunder.
Nothing herein contained shall prohibit the trustee from
commingling the deposits in any such trust fund for purposes of
the management thereof and the investment of funds therein.
Section 2. The act is amended by adding a section to read:
Section 2.1. A seller shall provide a price list of all
goods and services offered by the seller to the buyer prior to
discussion of any choice by the buyer.
Section 3. Sections 4(a), 5, 6 and 10 of the act are amended
to read:
Section 4. (a) The funds held in trust shall remain intact
until [delivery is made, services are performed or] the death of
the person for whose benefit the said contract was made, and
upon submission of certified copy of death certificate [or
certification] by the seller to the trustees that delivery of
the personal property or performance of the services contracted
for have been fully completed. Upon such [certification]
submission having been made, the amount of money on deposit to
the credit of that particular contract shall be paid to the
person creating the trust fund. Any trustee accepting the
merchandise trust fund under the provisions of this act may rely
upon all such certifications herein required to be made and
shall not be liable to anyone for such reliance.
* * *
Section 5. After final payment, if the purchaser moves out
of the State and upon written notice to the seller and to the
trustee the purchaser may cancel any such contract for the
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furnishing of personal property or services prior to performance
by seller and to the death of the person for whose benefit such
contract was made, in which event, the purchaser shall be
entitled to receive from the trustee the principal amount of
money on deposit to the credit of that particular contract less
the interest [which shall be returned to the seller]. The total
refund shall be paid to the purchaser within sixty days of
receipt of the written notice.
Section 6. (a) Every two years after effective date of this
act, the trustee shall, prior to the first of December, file a
financial report of the merchandise trust fund with the orphans'
court of the county in which the trustee is situate, setting
forth the principal thereof, the investments and payments made
and income earned and disbursed and the recipient of any payment
or disbursement.
(b) The orphans' court having jurisdiction over any such
merchandise trust fund may, at any time, require the person
creating the same or the trustee to file a report and submit its
records in relation to any such fund. If the court determines
that the fund is not being maintained in accordance with the
provisions of this act, it shall make such orders as may be
necessary to compel compliance with the provisions hereof.
Section 10. Any person knowingly violating the provisions of
this act or failing to make the required deposits into a
merchandise trust fund [or into a temporary special account]
shall be guilty of a misdemeanor, and, upon conviction thereof,
shall be sentenced to pay a fine of not less than five hundred
dollars ($500) nor more than one thousand dollars ($1000), or
undergo imprisonment for a term not exceeding one year, or both.
If the person violating the provisions of this act is a
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corporation or association, the officer responsible for the
violation shall undergo any prison term imposed.
Section 4. This act shall take effect in 60 days.
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