1 Section 1. Subdivision 6 of section 209 of the social services law, as
2 amended by chapter 692 of the laws of 1984, is amended to read as
3 follows:
4 6. (a) As applicable federal law, rules and regulations so provide, a
5 recipient of supplemental security income benefits OR MEDICAL ASSISTANCE
6 may establish an irrevocable trust fund {by contributing up to one thou-
7 sand five hundred dollars} for the exclusive purpose of their funeral
8 and burial. Such trust fund and any accumulated interest not withdrawn
9 by the recipient shall remain the responsibility of the {local social
10 services officials} FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY
11 OR ANY OTHER PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS MADE to
12 administer for funeral and burial expenses of the recipient. Those
13 persons who establish such a trust fund {with a local social services
14 department,} shall be given the opportunity to select the funeral
15 {director} FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY OR ANY OTHER
16 PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS MADE of their choice
17 to provide for their burial arrangements AND TO CHANGE SUCH SELECTION AT
18 ANY TIME TO ANY FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY OR
19 ANY OTHER PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS MADE,
20 LOCATED EITHER IN THE STATE OF NEW YORK OR ANY OTHER STATE. ANY SUCH
21 CHANGE OF FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY, OR ANY
22 OTHER PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS MADE, MUST BE
23 CARRIED OUT WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF A REQUEST BY
1 THE PURCHASER TO THE FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEME-
2 TERY, OR ANY OTHER PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS
3 MADE WITH WHICH THE CURRENT TRUST FUND WAS ESTABLISHED. Funds in such
4 trust fund shall be placed in an interest bearing account PURSUANT TO
5 SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS LAW. Accumu-
6 lated interest from such account shall not be reported as "countable
7 income" pursuant to section two hundred eight of this chapter. {The cost
8 of administering the trust shall be reimbursable under section two
9 hundred twelve of this chapter.}
10 (b) {No irrevocable trust fund may be established pursuant to para-
11 graph (a) of this subdivision on or after the effective date of this
12 paragraph} AN APPLICANT FOR OR A RECIPIENT OF MEDICAL ASSISTANCE WHO
13 ENTERS INTO AN AGREEMENT PURSUANT TO SECTION FOUR HUNDRED FIFTY-THREE OF
14 THE GENERAL BUSINESS LAW SHALL ESTABLISH A SINGLE IRREVOCABLE TRUST FUND
15 PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
16 (C) A FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY, OR ANY
17 OTHER PERSON, FIRM OR CORPORATION WHICH MAKES AN AGREEMENT FOR AND
18 ACCEPTS PAYMENT FOR SUCH AN IRREVOCABLE TRUST FUND, SHALL COMPLY WITH
19 THE PROVISIONS OF SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSI-
20 NESS LAW, AND SHALL INCLUDE THE FOLLOWING STATEMENT IN ANY SUCH AGREE-
21 MENT IN CONSPICUOUS PRINT OF AT LEAST TWELVE POINT TYPE:
22 DISCLOSURE
23 NEW YORK LAW REQUIRES THIS AGREEMENT TO BE IRREVOCABLE FOR APPLICANTS
24 FOR RECEIPT OF SUPPLEMENTAL SECURITY BENEFITS UNDER SECTION TWO HUNDRED
25 NINE OF THE SOCIAL SERVICES LAW OR OF MEDICAL ASSISTANCE UNDER SECTION
26 THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW, AND FOR THE MONEYS
27 PUT INTO A TRUST UNDER THIS AGREEMENT TO BE USED ONLY FOR FUNERAL AND
28 BURIAL EXPENSES. IF ANY MONEY IS LEFT OVER AFTER YOUR FUNERAL AND BURIAL
29 EXPENSES HAVE BEEN PAID, IT WILL GO TO THE COUNTY. YOU MAY CHANGE YOUR
30 CHOICE OF FUNERAL HOME AT ANY TIME.
31 (D) ANY PROMOTIONAL LITERATURE PREPARED AFTER JANUARY FIRST, NINETEEN
32 HUNDRED NINETY-SEVEN BY A FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER,
33 CEMETERY, OR ANY OTHER PERSON, FIRM OR CORPORATION FOR PREARRANGED
34 FUNERAL AND BURIAL SERVICES MUST CONTAIN LANGUAGE DISCLOSING THE IRREV-
35 OCABLE NATURE OF BURIAL TRUSTS ESTABLISHED FOR AN APPLICANT OR RECIPIENT
36 OF SUPPLEMENTAL SECURITY INCOME BENEFITS OR MEDICAL ASSISTANCE.
37 S 2. Section 141 of the social services law is amended by adding a new
38 subdivision 6 to read as follows:
39 6. IF AN APPLICANT FOR OR A RECIPIENT OF PUBLIC ASSISTANCE OR CARE OR
40 OF MEDICAL ASSISTANCE UNDER SECTION TWO HUNDRED NINE OR THREE HUNDRED
41 SIXTY-SIX OF THIS CHAPTER DIES HAVING ESTABLISHED AN IRREVOCABLE TRUST
42 FOR THE PAYMENT OF HIS OR HER FUNERAL EXPENSES UNDER SECTION FOUR
43 HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS LAW, ANY FUNDS REMAINING IN
44 SUCH TRUST AFTER THE PAYMENT OF ALL FUNERAL EXPENSES MUST BE PAID OVER
45 TO THE SOCIAL SERVICES OFFICIAL RESPONSIBLE FOR ARRANGING FOR BURIALS
46 UNDER THIS SECTION IN THE LOCAL GOVERNMENT SUBDIVISION WHERE THE DECE-
47 DENT RESIDED.
48 S 3. Subdivisions 1, 2 and 3 of section 453 of the general business
49 law, subdivisions 1 and 2 as amended and subdivision 3 as added by chap-
50 ter 529 of the laws of 1993, are amended to read as follows:
51 1. {Except for the purposes found in subdivision six of section two
52 hundred nine of the social services law any} (A) ANY and all moneys paid
53 to a funeral firm, funeral director, undertaker, cemetery, or any other
54 person, firm or corporation, under or in connection with an agreement
55 for the sale of merchandise to be used in connection with a funeral or
56 burial, or for the furnishing of personal services of a funeral director
1 or undertaker, wherein the merchandise is not to be delivered or the
2 personal services are not to be rendered until the occurrence of the
3 death of the person for whose funeral or burial such merchandise or
4 services are to be furnished shall continue to be the money of the
5 person making such payment and shall be held in trust for such person by
6 the funeral firm, funeral director, undertaker, cemetery or any other
7 person, firm or corporation to whom such payment is made and shall,
8 within ten business days of receipt, be deposited in an interest bearing
9 account in a bank, national bank, federal savings bank, federal savings
10 and loan association, savings bank or savings and loan association with-
11 in the state and duly authorized to receive deposits in the state of New
12 York and which shall earn interest at a rate which shall be at not less
13 than the prevailing rate of interest earned by other such deposits in
14 such banks, savings banks or savings and loan associations under this
15 section, or shall be placed in a trust company in an investment backed
16 by the government of the United States and shall not be commingled with
17 other moneys of the funeral firm, funeral director, undertaker, ceme-
18 tery, or other person, firm or corporation or become the funds of the
19 funeral firm, funeral director, undertaker, cemetery, or other person,
20 firm or corporation, and shall be so held on deposit, together with any
21 interest thereon, until said merchandise has been delivered and said
22 personal services have been rendered, unless sooner repaid, in whole or
23 in part. Such funeral firm, funeral director, undertaker, cemetery, or
24 other person, firm or corporation which received such moneys shall,
25 within thirty business days after the deposit or any change in the
26 institution in which such funds are deposited, provide written notifica-
27 tion to the person who made such payment of the institution of the
28 deposit and, until such moneys have been repaid or the personal services
29 and merchandise have been provided, shall annually provide the person
30 who made such payment with a statement identifying the location and
31 annual interest earned by the account. Upon request of the person who
32 made such payment, or his or her representative, the funeral firm,
33 funeral director, undertaker, cemetery or other person, firm or corpo-
34 ration which received such moneys shall provide a statement within thir-
35 ty days of such request identifying the location of the account, amount
36 of such account and interest earned on such account. Upon the provision
37 of any merchandise or personal services in connection with any such
38 agreement, the funeral firm, funeral director, undertaker, cemetery or
39 other person, firm or corporation which received such moneys shall
40 provide a statement itemizing the merchandise or personal services
41 provided and the cost of such merchandise or personal services and
42 describing the disposition of all moneys in the account. Copies of such
43 statements and the records on which they are based shall be made avail-
44 able for inspection and shall be made available during ordinary business
45 hours for copying upon written request by any state agency regulating
46 the funeral firm, funeral director, undertaker, cemetery or other
47 person, firm or corporation which received such money or enforcing the
48 requirements of this section, provided a complaint, either oral or writ-
49 ten, has been received, or an inspector has grounds to believe that
50 serious or repeat violations of this section have occurred.
51 (B) MONEYS PAID FOR SUCH AN AGREEMENT FOR AN APPLICANT OR RECIPIENT OF
52 SUPPLEMENTAL SECURITY INCOME BENEFITS UNDER SECTION TWO HUNDRED NINE OF
53 THE SOCIAL SERVICES LAW OR OF MEDICAL ASSISTANCE UNDER SECTION THREE
54 HUNDRED SIXTY-SIX OF SUCH LAW SHALL BE PLACED INTO A TRUST WHICH SHALL
55 BE IRREVOCABLE BUT UNDER WHICH SUCH APPLICANT/RECIPIENT RESERVES THE
56 RIGHT TO SELECT ANY FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER, CEMETERY
1 OR ANY OTHER PERSON, FIRM OR CORPORATION TO WHOM SUCH PAYMENT IS MADE
2 AND TO CHANGE SUCH SELECTION ANY TIME TO ANY TYPE OF FUNERAL OR ANY
3 FUNERAL FIRM, FUNERAL DIRECTOR, CEMETERY OR ANY OTHER PERSON, FIRM OR
4 CORPORATION TO WHOM SUCH PAYMENT IS MADE, LOCATED IN THE STATE OF NEW
5 YORK OR ANY OTHER STATE. ANY SUCH CHANGE MUST BE CARRIED OUT WITHIN TEN
6 BUSINESS DAYS FOLLOWING RECEIPT OF A REQUEST BY THE PURCHASER TO THE
7 FUNERAL FIRM, FUNERAL DIRECTOR, CEMETERY OR ANY OTHER PERSON, FIRM OR
8 CORPORATION TO WHOM SUCH PAYMENT IS MADE, WITH WHICH SUCH TRUST WAS
9 ESTABLISHED. THIS REQUIREMENT IS SUBJECT TO ANY LIMITS SET FORTH IN
10 FEDERAL LAW OR REGULATION PERTAINING TO DISREGARDED RESOURCES OR INCOME.
11 2. The amount of any and all moneys paid under or in connection with
12 such an agreement, together with interest, if any, accrued thereon while
13 on deposit as so required shall be repaid on demand at any time prior to
14 the delivery of the merchandise {or} AND/OR the rendering of the
15 personal services. No administrative, consultation or other fee may be
16 assessed against the person making such payment in connection with or
17 planning for such agreement. PROVIDED, HOWEVER, NEITHER THE APPLICANT,
18 RECIPIENT OR OTHER PURCHASER OF PRENEED FUNERAL GOODS OR SERVICES
19 THROUGH AN IRREVOCABLE TRUST, THEIR LEGAL REPRESENTATIVE NOR THE HEIRS
20 OF SUCH PERSON, SHALL BE ENTITLED TO ANY REPAYMENT OF THE MONEYS WHICH
21 CREATED SUCH TRUST.
22 3. Any such agreement must be in writing and must:
23 (a) Identify all moneys paid or to be paid; and
24 (b) Identify any fees paid to the person administering such trust fund
25 by a third party, provided, however, any such fees shall not exceed
26 seventy-five hundredths of one percent of the amount of such trust fund;
27 and
28 (c) {Notify} EXCEPT FOR AN IRREVOCABLE TRUST ESTABLISHED PURSUANT TO
29 SECTION TWO HUNDRED NINE OF THE SOCIAL SERVICES LAW OR PARAGRAPH (B) OF
30 SUBDIVISION ONE OF THIS SECTION, NOTIFY the person making such payment
31 of his or her right to be repaid moneys paid, together with accrued
32 interest, as described in this section and of his or her right to
33 receive an annual statement; and
34 (d) Identify the provider of each service or item of merchandise to
35 the extent agreed upon, and fully describe the service or merchandise to
36 the extent agreed upon; and
37 (e) Describe the obligations of each party:
38 (i) in the event the service or merchandise described in the agreement
39 cannot, for reasons beyond the control of the parties, be provided when
40 needed;
41 (ii) in the event the cost of such services or merchandise, when such
42 services or merchandise is to be provided, exceeds the amount of the
43 moneys paid and accrued interest; and
44 (iii) in the event the amount of the moneys paid and accrued interest
45 exceeds the cost of such services or merchandise when they are to be
46 provided. If the agreement does not provide to the contrary, the
47 services or merchandise described in the agreement must be provided for
48 no more than the price stated therein. {Any} EXCEPT FOR AN IRREVOCABLE
49 TRUST ESTABLISHED PURSUANT TO SECTION TWO HUNDRED NINE OF THE SOCIAL
50 SERVICES LAW OR PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, ANY
51 moneys in excess of the amount set forth in the agreement must be repaid
52 to the person who made the payment or to the estate of such person. The
53 agreement must also specify the name and address of a person not living
54 at the address of the person who made payments under or in connection
55 with the agreement, to whom required notices may be sent if the person
56 who made payments under or in connection with the agreement cannot be
1 contacted. The person making such payments may decline in writing to
2 specify the name and address of a person not living at the address of
3 the person making such payments to whom such notice may be sent; AND
4 (F) WITH RESPECT TO AN AGREEMENT FOR AN IRREVOCABLE TRUST FUND PURSU-
5 ANT TO SECTION TWO HUNDRED NINE OF THE SOCIAL SERVICES LAW, INCLUDE THE
6 FOLLOWING STATEMENT IN THE AGREEMENT IN CONSPICUOUS PRINT OF AT LEAST
7 TWELVE POINT TYPE:
8 DISCLOSURE
9 NEW YORK LAW REQUIRES THIS AGREEMENT TO BE IRREVOCABLE FOR APPLICANTS
10 FOR RECEIPT OF SUPPLEMENTAL SECURITY BENEFITS UNDER SECTION TWO HUNDRED
11 NINE OF THE SOCIAL SERVICES LAW OR OF MEDICAL ASSISTANCE UNDER SECTION
12 THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW, AND FOR THE MONEYS
13 PUT INTO A TRUST UNDER THIS AGREEMENT TO BE USED ONLY FOR FUNERAL AND
14 BURIAL EXPENSES. IF ANY MONEY IS LEFT OVER AFTER YOUR FUNERAL AND BURIAL
15 EXPENSES HAVE BEEN PAID, IT WILL GO TO THE COUNTY. YOU MAY CHANGE YOUR
16 CHOICE OF FUNERAL HOME AT ANY TIME.
17 (G) ANY PROMOTIONAL LITERATURE PREPARED AFTER JANUARY FIRST, NINETEEN
18 HUNDRED NINETY-SEVEN BY A FUNERAL FIRM, FUNERAL DIRECTOR, UNDERTAKER,
19 CEMETERY, OR ANY OTHER PERSON, FIRM OR CORPORATION FOR PREARRANGED
20 FUNERAL AND BURIAL SERVICES MUST CONTAIN LANGUAGE DISCLOSING THE IRREV-
21 OCABLE NATURE OF BURIAL TRUSTS ESTABLISHED FOR AN APPLICANT OR RECIPIENT
22 OF SUPPLEMENTAL SECURITY INCOME BENEFITS OR MEDICAL ASSISTANCE.
23 S 4. This act shall take effect January 1, 1997 and shall apply only
24 to contracts or agreements entered into on or after such date.
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