BILL NUMBER: S9233
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the general business law, in relation to authorizing the
bureau of funeral directing to investigate any claims of moneys paid in
connection with agreements for funeral merchandise or services
 
SUMMARY OF PROVISIONS:
Section 453 of the general business law is amended by adding a new
subdivision 6-a to read. Prior to any special proceeding commenced by
the attorney general pursuant to subdivision seven of this section, the
bureau of funeral directing established under the direction of the
commissioner of health pursuant to section thirty-four hundred one of
the public health law, in consultation with the local district attorney,
shall investigate any claims brought against any person, firm or opera-
tion pursuant to this section. After ninety days of such investigation,
all records, and true copies of any agreements of the alleged violations
of this section shall be transferred to the attorney general.
The bureau of funeral directing has the legal authority to investigate
and, after due process, levy fines and sanctions on any unlicensed indi-
viduals and/or unregistered entities that are falsely acting as or
representing themselves to be license and/or registered funeral direc-
tors and/or funeral firms in violation of the public health law.
Section 2 provides that this act shall take effect immediately.
 
JUSTIFICATION:
Prepaid funeral agreements are meant to give grieving families financial
security and peace of mind during one of life's most difficult moments.
Yet recent cases in New York have exposed troubling abuses in which
funds entrusted for funeral services were allegedly misused for personal
expenses, including gambling and luxury spending.
Such actions represent a devastating betrayal of trust. Families,
already vulnerable due to the loss of a loved one, may find themselves
financially defrauded and left without the services they believed had
been secured. These abuse not only harm individual families but also
erode public confidence in the funeral industry.. Currently, enforce-
ment in these cases is left primarily to the Attorney General after
violations occur, often resulting in delayed relief for families. By
empowering the Bureau of Funeral Directing to investigate complaints in
coordination with local district attorneys, this bill establishes an
earlier safeguard. Families will have a dedicated investigative channel,
and cases of potential fraud can be documented and escalated more effec-
tively.
This legislation reinforces accountability, protects consumers at their
most vulnerability, and strengthens oversight of an industry that
requires the highest ethical standards.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9233: 453 general business law