1Amending the act of August 14, 1963 (P.L.1059, No.459), entitled
2"An act prohibiting future need sales of cemetery merchandise
3and services, funeral merchandise and services, except under
4certain conditions; requiring the establishment of and
5deposit into a merchandise trust fund of certain amount of
6the proceeds of any such sale; providing for the
7administration of such trust funds and the payment of money
8therefrom; conferring powers and imposing duties on orphans'
9courts, and prescribing penalties," further providing for
10deposits into <-and merchandise trust funds; providing for 
11price and description reports; and further providing for 
12payments from merchandise trust funds, for filing of
13financial reports and for penalty.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

<-16Section 1. Sections 2, 5, 6 and 10 of the act of August 14,
171963 (P.L.1059, No.459), referred to as the Cemetery and Funeral
18Merchandise Trust Fund Law, are amended to read:

<-19Section 1. Section 2 of the act of August 14, 1963 
20(P.L.1059, No.459), referred to as the Cemetery and Funeral 
21Merchandise Trust Fund Law, is amended to read:

22Section 2. (a) Any person entering into any such contract as
23the seller shall deposit into a merchandise trust fund,

1established for that purpose with a banking institution in the
2Commonwealth authorized to perform trust functions, as trustee
3of such fund, [seventy<-] one hundred per cent of the retail sale
4price of the personal property or personal services so sold for
5future need. <-The person shall post a surety bond in an amount 
6equal to the amount of the retail sale price not deposited into 
7a merchandise trust fund under this subsection.

8(b) The deposit herein required to be made into such
9merchandise trust fund shall be made within [thirty days after
10the end of the month in which the final payment of the purchase
11price provided for under such contract is received by the seller
12from the purchaser or otherwise. Prior to receipt by the seller
13of final payment of the purchase price provided for under any
14such contract, the seller, at the end of each month, shall
15deposit, in a special account in a banking institution properly
16identified as being for such purpose, all payments on account
17received under any such contract during the month and ensuing
18months commencing thereafter, after first deducting the
19percentage permitted to be retained by seller. Withdrawals from
20such special account shall be made by seller only for the
21purpose of transfer to the merchandise trust fund upon final
22payment of the purchase price by the purchaser under the
23contract.] five business days after any funds are received by 
24the seller as provided for under the contract, including 
25periodic payments.

26(c) If, prior to final payment of the purchase price under
27the contract, the purchaser shall default in making payments on
28account thereof, the seller shall not be entitled to retain [as
29liquidated damages and withdraw from the special account thirty
30percent of the contract price] any amount, and shall refund to

1the purchaser the entire balance [in the special account, if
2any.] paid into the merchandise trust fund pursuant to the 
3contract. The total refund shall be paid to the purchaser within 
4sixty days.

5(d) Each deposit into the merchandise trust fund shall be
6identified by the seller by furnishing the trustee with the name
7of the purchaser[,<-] and the amount of the retail sales price
8[and the percentage thereof herein required to be deposited<-],
9together with a statement of or a copy of the contract and the
10personal property and services to be furnished by the seller
11thereunder. Nothing herein contained shall prohibit the trustee
12from commingling the deposits in any such trust fund for
13purposes of the management thereof and the investment of funds
14therein.

<-15Section 1.1. The act is amended by adding a section to read:

16Section 2.1. A seller must provide a detailed price list and
17detailed description of the vault and casket and must adhere to
18Federal Trade Commission rules regarding the sale of the
19merchandise.

20Section 1.2. Sections 5, 6 and 10 of the act are amended to
21read:

22Section 5. (a) After final payment, if the purchaser moves
23out of the State and upon written notice to the seller and to
24the trustee the purchaser may cancel any such contract for the
25furnishing of personal property or services prior to performance
26by seller and to the death of the person for whose benefit such
27contract was made, in which event, the purchaser shall be
28entitled to receive from the trustee the principal amount of
29money on deposit to the credit of that particular contract
30[less], including the interest.[which shall be returned to the

1seller.] The total refund shall be paid to the purchaser within 
2sixty days.

3(b) Delivery of merchandise or products<-, except markers or 
4mausoleums prior to need is prohibited. The term "delivery"
5shall not be construed to include constructive delivery.

6Section 6. (a) Every two years after effective date of this
7act, the trustee shall, prior to the first of December, file a
8financial report of the merchandise trust fund with the <-real 
9estate commission and the orphans' court of the county in which
10the trustee is situate, setting forth the principal thereof, the
11investments and payments made and income earned and disbursed
12and the recipient of any payment or disbursement. <-The accounts 
13may be audited by a forensic accountant on probable cause of 
14deficiency.

15(b) The orphans' court <-or real estate commission having
16jurisdiction over any such merchandise trust fund may, at any
17time, require the person creating the same or the trustee to
18file a report and submit its records in relation to any such
19fund. If the court determines that the fund is not being
20maintained in accordance with the provisions of this act, it
21shall make such orders as may be necessary to compel compliance
22with the provisions hereof.

23Section 10. Any person knowingly violating the provisions of
24this act or failing to make the required deposits into a
25merchandise trust fund [or into a temporary special account]
26shall be guilty of a misdemeanor, and, upon conviction thereof,
27shall be sentenced to pay a fine of not less than five hundred
28dollars ($500) nor more than one thousand dollars ($1000), or
29undergo imprisonment for a term not exceeding one year, or both.
30If the person violating the provisions of this act is a

1corporation or association, the officer responsible for the
2violation shall undergo any prison term imposed.

3Section 2. This act shall take effect in 60 days.