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 payments from merchandise trust funds, for
11filing of financial reports and for penalty.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Sections 2, 5, 6 and 10 of the act of August 14,
151963 (P.L.1059, No.459), referred to as the Cemetery and Funeral
16Merchandise Trust Fund Law, are amended to read:

17Section 2. (a) Any person entering into any such contract as
18the seller shall deposit into a merchandise trust fund,
19established for that purpose with a banking institution in the
20Commonwealth authorized to perform trust functions, as trustee
21of such fund, [seventy] one hundred per cent of the retail sale
22price of the personal property or personal services so sold for

1future need.

2(b) The deposit herein required to be made into such
3merchandise trust fund shall be made within [thirty days after
4the end of the month in which the final payment of the purchase
5price provided for under such contract is received by the seller
6from the purchaser or otherwise. Prior to receipt by the seller
7of final payment of the purchase price provided for under any
8such contract, the seller, at the end of each month, shall
9deposit, in a special account in a banking institution properly
10identified as being for such purpose, all payments on account
11received under any such contract during the month and ensuing
12months commencing thereafter, after first deducting the
13percentage permitted to be retained by seller. Withdrawals from
14such special account shall be made by seller only for the
15purpose of transfer to the merchandise trust fund upon final
16payment of the purchase price by the purchaser under the
17contract.] five business days after any funds are received by 
18the seller as provided for under the contract, including 
19periodic payments.

20(c) If, prior to final payment of the purchase price under
21the contract, the purchaser shall default in making payments on
22account thereof, the seller shall not be entitled to retain [as
23liquidated damages and withdraw from the special account thirty
24percent of the contract price] any amount, and shall refund to
25the purchaser the entire balance [in the special account, if
26any.] paid into the merchandise trust fund pursuant to the 
27contract. The total refund shall be paid to the purchaser within 
28sixty days.

29(d) Each deposit into the merchandise trust fund shall be
30identified by the seller by furnishing the trustee with the name

1of the purchaser[,] and the amount of the retail sales price
2[and the percentage thereof herein required to be deposited],
3together with a statement of or a copy of the contract and the
4personal property and services to be furnished by the seller
5thereunder. Nothing herein contained shall prohibit the trustee
6from commingling the deposits in any such trust fund for
7purposes of the management thereof and the investment of funds

9Section 5. (a) After final payment, if the purchaser moves
10out of the State and upon written notice to the seller and to
11the trustee the purchaser may cancel any such contract for the
12furnishing of personal property or services prior to performance
13by seller and to the death of the person for whose benefit such
14contract was made, in which event, the purchaser shall be
15entitled to receive from the trustee the principal amount of
16money on deposit to the credit of that particular contract
17[less], including the interest.[which shall be returned to the
18seller.] The total refund shall be paid to the purchaser within 
19sixty days.

20(b) Delivery of merchandise or products prior to need is
21prohibited. The term "delivery" shall not be construed to
22include constructive delivery.

23Section 6. (a) Every two years after effective date of this
24act, the trustee shall, prior to the first of December, file a
25financial report of the merchandise trust fund with the orphans'
26court of the county in which the trustee is situate, setting
27forth the principal thereof, the investments and payments made
28and income earned and disbursed and the recipient of any payment 
29or disbursement.

30(b) The orphans' court having jurisdiction over any such

1merchandise trust fund may, at any time, require the person
2creating the same or the trustee to file a report and submit its
3records in relation to any such fund. If the court determines
4that the fund is not being maintained in accordance with the
5provisions of this act, it shall make such orders as may be
6necessary to compel compliance with the provisions hereof.

7Section 10. Any person knowingly violating the provisions of
8this act or failing to make the required deposits into a
9merchandise trust fund [or into a temporary special account]
10shall be guilty of a misdemeanor, and, upon conviction thereof,
11shall be sentenced to pay a fine of not less than five hundred
12dollars ($500) nor more than one thousand dollars ($1000), or
13undergo imprisonment for a term not exceeding one year, or both.
14If the person violating the provisions of this act is a
15corporation or association, the officer responsible for the
16violation shall undergo any prison term imposed.

17Section 2. This act shall take effect in 60 days.