Regular Session 2015-2016 House Bill 1364 P.N. 1990

PRINTER'S NO. 1990

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1364

Session of

2015

INTRODUCED BY SANTORA, THOMAS, READSHAW, KILLION, PICKETT,

WATSON, DIAMOND, TAYLOR, ADOLPH, COHEN, DAVIS, TOOHIL,

DRISCOLL, YOUNGBLOOD, PASHINSKI, HANNA AND BARBIN,

JUNE 29, 2015

REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 29, 2015

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 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

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.] thirty business days after any funds are received by

the seller as provided for under the contract, including

periodic payments.

the contract, the purchaser shall default in making payments on

account thereof, the seller shall not be entitled to retain [as

liquidated damages and withdraw from the special account thirty

percent of the contract price] any amount, and shall refund to

the purchaser the entire balance [in the special account, if

any] paid into the merchandise trust fund pursuant to the

contract. The total refund shall be paid to the purchaser within

sixty days.

(d) Each deposit into the merchandise trust fund shall be

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identified by the seller by furnishing the trustee with the name

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 must provide a detailed price list and

detailed description of the vault and casket and must adhere to

Federal Trade Commission rules regarding the sale of the

merchandise.

Section 3. Sections 5, 6 and 10 of the act are amended to

read:

Section 5. (a) 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

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], including the interest [which shall be returned to the

seller]. The total refund shall be paid to the purchaser within

sixty days.

(b) There shall be no delivery of merchandise or products

prior to need except for mausoleums and markers.

Section 6. (a) Every two years after effective date of this

act, the trustee shall, prior to the first of December, file a

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financial report of the merchandise trust fund with the real

estate commission and 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. The accounts

may be audited by a forensic accountant on probable cause of a

financial discrepancy .

(b) The orphans' court or real estate commission 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

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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