PRINTER'S NO. 1314
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1069
Session of
2017
INTRODUCED BY SANTORA, MILLARD AND READSHAW, APRIL 10, 2017
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, APRIL 10, 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
merchandise trust fund and for financial report.
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 by adding subsections to read:
Section 2. * * *
(a.1) The seller may retain, and apply to operating
expenses, all or a portion of the remaining thirty percent of
the retail sale price of the personal property or personal
services sold under the following conditions:
(1) the seller's merchandise trust fund is funded in an
amount equal to seventy percent of the retail sales price of all
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preneed contracts pursuant to which deposits into the fund are
required; and
(2) the seller has made all initial and periodic deposits
required under 9 Pa.C.S. Ch. 3 (relating to regulation of
cemetery companies).
(a.2) If the seller's merchandise trust fund and permanent
lot care fund are not funded as required under subsection (a.1),
the remaining thirty percent of the retail sale price of the
personal property or personal services sold shall be directed to
the appropriate fund as necessary to comply with subsection
(a.1).
(a.3) The seller shall file an affidavit with the State Real
Estate Commission when the funding levels required under
subsection (a.1) are achieved and every six months thereafter.
The State Real Estate Commission shall review the affidavit and
upon verification that it contains all required information,
provide a certificate of compliance to the seller and forward a
copy of the affidavit to the orphans' court of the county in
which the trustee of the merchandise trust fund is situate. The
affidavit shall be filed in a form and manner established by the
State Real Estate Commission.
(a.4) Upon receipt of a certificate of compliance, the
seller may retain any remaining percentage of the retail price
of property or personal services sold.
* * *
Section 2. Section 6 of the act is amended to read:
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
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forth the principal thereof, the investments and payments made
and income earned and disbursed[.] and forward a copy of the
report filed with the orphans' court to the State Real Estate
Commission.
(b) The orphans' court having jurisdiction over any such
merchandise trust fund or the State Real Estate Commission 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 3. This act shall take effect in 60 days.
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