§ 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.