2023 New York Laws › PBH - Public Health › Article 34 - Funeral Directing › Title 3 - Practice of Funeral Directing; Funeral Establishments › 3442 - Funeral Directing; Reports Relating to Moneys Paid in Connection With Agreements for Funeral Merchandise or Services in Advance of Need.

§  3442.  Funeral  directing;  reports  relating  to  moneys  paid  in
connection with  agreements  for  funeral  merchandise  or  services  in
advance  of  need.    1. Every person licensed pursuant to this article,
including funeral directors  and  funeral  firms,  receiving  moneys  in
connection  with  agreements  to  furnish  merchandise  or  services  in
connection with a funeral or burial, wherein the merchandise is  not  to
be  delivered  or the personal services rendered until the occurrence of
the death of the person for whose funeral or burial such merchandise  or
services  are  to  be  furnished,  shall  comply  with the provisions of
section four hundred fifty-three of the general business law, furnish  a
preneed  statement  to  the  person  making such payment describing such
services  and  merchandise  offered  on  a  form   prescribed   by   the
commissioner  and  shall  maintain current records of the persons making
such payments or receiving such merchandise or services or  having  been
repaid  moneys  and  shall maintain true copies of such agreements. Such
records and true copies  of  agreements  shall  be  made  available  for
inspection  and  shall  be made available during ordinary business hours
for copying upon written request by  the  commissioner  or  his  or  her
representative  in  connection  with  any investigation pursuant to this
article. Copies  shall  only  be  requested  where  the  department  has
received  a  complaint,  either oral or written, or where the department
inspector has grounds to believe that serious or  repeat  violations  of
this section have occurred.
2.  Only a funeral firm having a valid registration issued pursuant to
paragraph  (c)  of  subdivision  two  of  section  thirty-four   hundred
twenty-eight of this article or their duly authorized agent, may receive
and  hold  moneys  in  trust  which have been paid in connection with an
agreement as described in subdivision one of this section.
3. (a) Upon the sale or other transfer of any  funeral  firm,  or  the
transfer  of  control  over  such  moneys, both the new owner and former
owner or the estate of the former owner, or both the  persons  currently
and  formerly  having control over such moneys, shall within thirty days
of such sale or transfer, notify, in writing, each such person  who  has
paid  moneys  of the sale or transfer, including the name and address of
the new and former owner.  Compliance  with  the  requirements  of  this
subdivision  shall  constitute  compliance  with  the  same notification
requirements  found  in  subdivision  five  of  section   four   hundred
fifty-three  of  the  general business law. Copies of such notifications
shall be available for inspection and shall  be  made  available  during
ordinary  business  hours  for  copying  upon  written  request  by  the
commissioner or  his  or  her  representative  in  connection  with  any
investigation pursuant to this article.
(b)  Upon  the  sale  or  other  transfer  of  any funeral firm having
received  moneys  in  connection  with  any   agreement   described   in
subdivision  one  of  this  section or upon any transfer of control over
such moneys, the transferee shall be  liable  for  compliance  with  all
provisions  of  this section and section four hundred fifty-three of the
general  business  law,  including  the  repayment  of  any  moneys  and
provision  of  funeral  merchandise and services, if the transferor or a
transferor's predecessor in interest was liable for compliance with  the
requirements of this section and section four hundred fifty-three of the
general  business  law.   Such liability shall attach whether or not the
successor in  interest  has,  upon  conveyance  of  such  funeral  firm,
received such moneys or has knowledge of the existence of any agreements
described  herein. Such liability shall attach where there is proof of a
valid agreement for providing funeral merchandise and services, and  the
funeral firm, funeral director or undertaker has not refunded the moneys
received from the customer.
(c)  Upon  the  sale  or  other  transfer  of  any funeral firm having
received such moneys, or upon a transfer of control of such moneys,  the
transferor   shall   disclose   a  complete  accounting  of  all  moneys
transferred pursuant to such agreement to the transferee, including  the
names  and  addresses  of  all  persons  who  deposited moneys with such
funeral firm, the amount and location of  such  moneys,  the  names  and
addresses  of  persons  who have received refunds and the amount of such
refund.
(d) Upon the termination, cessation of operation or discontinuation of
any funeral firm, or a successor in interest which has  received  moneys
in  connection  with  any agreement described in subdivision one of this
section or is otherwise liable for compliance with the  requirements  of
this section or section four hundred fifty-three of the general business
law,  such  funeral  firm or successor shall, within thirty days of such
termination, cessation of operation or discontinuation, repay  all  such
moneys and accrued interest as if a demand had been made therefor.
4.  Records  required by this section to be maintained and true copies
of agreements shall be retained for four years following the  provisions
of funeral merchandise and services. In the event the funds are returned
to  the  person  who  deposited  the money or their representative, such
records, including the record of return of funds shall be retained for a
period of four years after the sale, transfer, termination, cessation of
operation or discontinuance of the funeral firm.