Section 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.