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 merchandise trust funds; providing for price 
11and description reports; and further providing for payments
12from merchandise trust funds, for filing of financial reports
13and for penalty.

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

16Section 1. Section 2 of the act of August 14, 1963 
17(P.L.1059, No.459), referred to as the Cemetery and Funeral 
18Merchandise Trust Fund Law, is amended to read:

19Section 2. (a) Any person entering into any such contract as
20the seller shall deposit into a merchandise trust fund,
21established for that purpose with a banking institution in the
22Commonwealth authorized to perform trust functions, as trustee
23of such fund, seventy per cent of the retail sale price of the

1personal property or personal services so sold for future need.
<-2The person shall post a surety bond in an amount equal to the 
3amount of the retail sale price not deposited into a merchandise 
4trust fund under this subsection.

5(b) The deposit herein required to be made into such
6merchandise trust fund shall be made within [thirty days after
7the end of the month in which the final payment of the purchase
8price provided for under such contract is received by the seller
9from the purchaser or otherwise. Prior to receipt by the seller
10of final payment of the purchase price provided for under any
11such contract, the seller, at the end of each month, shall
12deposit, in a special account in a banking institution properly
13identified as being for such purpose, all payments on account
14received under any such contract during the month and ensuing
15months commencing thereafter, after first deducting the
16percentage permitted to be retained by seller. Withdrawals from
17such special account shall be made by seller only for the
18purpose of transfer to the merchandise trust fund upon final
19payment of the purchase price by the purchaser under the
20contract.] <-five <-thirty business days after any funds are 
21received by the seller as provided for under the contract, 
22including periodic payments.

23(c) If, prior to final payment of the purchase price under
24the contract, the purchaser shall default in making payments on
25account thereof, the seller shall not be entitled to retain [as
26liquidated damages and withdraw from the special account thirty
27percent of the contract price] any amount, and shall refund to
28the purchaser the entire balance [in the special account, if
29any.] paid into the merchandise trust fund pursuant to the 
30contract. The total refund shall be paid to the purchaser within
 

1sixty days.

2(d) Each deposit into the merchandise trust fund shall be
3identified by the seller by furnishing the trustee with the name
4of the purchaser, the amount of the retail sales price and the
5percentage thereof herein required to be deposited, together
6with a statement of or a copy of the contract and the personal
7property and services to be furnished by the seller thereunder.
8Nothing herein contained shall prohibit the trustee from
9commingling the deposits in any such trust fund for purposes of
10the management thereof and the investment of funds therein.

11Section 1.1. The act is amended by adding a section to read:

12Section 2.1. A seller must provide a detailed price list and
13detailed description of the vault and casket and must adhere to
14Federal Trade Commission rules regarding the sale of the
15merchandise.

16Section 1.2. Sections 5, 6 and 10 of the act are amended to
17read:

18Section 5. (a) After final payment, if the purchaser moves
19out of the State and upon written notice to the seller and to
20the trustee the purchaser may cancel any such contract for the
21furnishing of personal property or services prior to performance
22by seller and to the death of the person for whose benefit such
23contract was made, in which event, the purchaser shall be
24entitled to receive from the trustee the principal amount of
25money on deposit to the credit of that particular contract
26[less], including the interest.[which shall be returned to the
27seller.] The total refund shall be paid to the purchaser within 
28sixty days.

29(b) <-Delivery of merchandise or products, except markers or
30mausoleums prior to need is prohibited. The term "delivery"

1shall not be construed to include constructive delivery. <-There
2shall be no delivery of merchandise or products prior to need
3except for mausoleums and markers.

4Section 6. (a) Every two years after effective date of this
5act, the trustee shall, prior to the first of December, file a
6financial report of the merchandise trust fund with the real 
7estate commission and the orphans' court of the county in which
8the trustee is situate, setting forth the principal thereof, the
9investments and payments made and income earned and disbursed
10and the recipient of any payment or disbursement. The accounts 
11may be audited by a forensic accountant on probable cause of 
<-12deficiency <-a financial discrepancy.

13(b) The orphans' court or real estate commission having
14jurisdiction over any such merchandise trust fund may, at any
15time, require the person creating the same or the trustee to
16file a report and submit its records in relation to any such
17fund. If the court determines that the fund is not being
18maintained in accordance with the provisions of this act, it
19shall make such orders as may be necessary to compel compliance
20with the provisions hereof.

21Section 10. Any person knowingly violating the provisions of
22this act or failing to make the required deposits into a
23merchandise trust fund [or into a temporary special account]
24shall be guilty of a misdemeanor, and, upon conviction thereof,
25shall be sentenced to pay a fine of not less than five hundred
26dollars ($500) nor more than one thousand dollars ($1000), or
27undergo imprisonment for a term not exceeding one year, or both.
28If the person violating the provisions of this act is a
29corporation or association, the officer responsible for the
30violation shall undergo any prison term imposed.

1Section 2. This act shall take effect in 60 days.