N.Y. Public Health Law § 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.