NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5022
SPONSOR: Dinowitz
 
TITLE OF BILL: An act to amend chapter 557 of the laws of 2001 amend-
ing the general business law, the public health law and the insurance
law relating to clarifying provisions pertaining to pre-need funeral
services, in relation to the effectiveness thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
To make permanent Chapter 557 of the Laws of 2001 which increased
consumer protection for monies used towards funeral goods and services.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 Amends Section 6 of the Laws of 2001 amending the General
Business Law, to remove the sunset provision and make permanent Chapter
557.
 
JUSTIFICATION:
Chapter 557 of the Laws of 2001, increased consumer protection for
monies used towards funeral goods and services. Specifically, it
requires all money used to purchase funeral merchandise to be held in
trust in an interest bearing account, prohibits funeral directors from
accepting any consideration from an insurance company for the promotion
of an insurance policy that is payable at the death of the insured for
burial or funeral expenses, and prohibits any company from giving any
consideration to a funeral firm for the purpose of inducing the sale of
any contract or policy.
New York's funeral law is one of the strongest in the nation with regard
to the protection of consumer rights. Chapter 557 of the Laws of 2001,
increased the strength of New York's law. This provision has been in
full force and effect since December 12, 2001, and should be made perma-
nent.
 
PRIOR LEGISLATIVE HISTORY:
2011-12: A.8434 - Third Reading Cal. No. 457/S.6108 - Referred to
Consumer Protection
2009-10: A.6319 - Referred to Consumer Affairs and Protection
2007-08: A.215 - Referred to Consumer Affairs and Protection/S.3887 -
Referred to Consumer Protection
2005-06: A.469 - Referred to Consumer Affairs and Protection
2003-04: A.2003 - Passed Assembly/S.2003 - Referred to Consumer
Protection
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5022
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend chapter 557 of the laws of 2001 amending the general
business law, the public health law and the insurance law relating to
clarifying provisions pertaining to pre-need funeral services, in
relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 6 of chapter 557 of the laws of 2001 amending the
2 general business law, the public health law and the insurance law relat-
3 ing to clarifying provisions pertaining to pre-need funeral services, as
4 amended by chapter 88 of the laws of 2012, is amended to read as
5 follows:
6 § 6. This act shall take effect 30 days after it shall have become a
7 law [provided, however sections 3 and 4 of this act shall expire, be
8 deemed repealed and shall cease to be of any force or effect after June
9 1, 2017, and provided that the department of financial services shall
10 conduct a study of funding pre-arranged funeral services and goods,
11 examining practices in a minimum of ten other states, by use of life
12 insurance, trust depositing or any other funding mechanism in use or
13 that would be appropriate. The results of such study shall be delivered
14 to the governor and legislature on or before April 15, 2015].
15 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07924-01-7