Bill Text: HI SB157 | 2023 | Regular Session | Introduced


Bill Title: Relating To Cemeteries.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2023-01-31 - The committee on CPN deferred the measure. [SB157 Detail]

Download: Hawaii-2023-SB157-Introduced.html

THE SENATE

S.B. NO.

157

THIRTY-SECOND LEGISLATURE, 2023

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to cemeteries.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that legislation first enacted to regulate cemeteries placed a harsh financial burden on certain churches and nonprofit cemeteries that did not actively engage in the business of selling cemetery property.  Therefore, in 1968, the legislature required the department of commerce and consumer affairs to exempt any church or cemetery authority from the bonding and fee requirements of the State's cemetery and funeral trusts law if the church or cemetery authority did not actively engage in pre-need sales, have a licensed cemetery salesperson, or sell for financial profit.

     Recognizing the strong desire for persons to find economical options for their afterlife arrangements and growing support for religious institutions providing these options for their members within their property or place of worship, the legislature passed Act 22, Session Laws of Hawaii 2020 (Act 22), which codified the department of commerce and consumer affairs' practice of exempting certain entities from the State's cemetery and funeral trusts law to help the department's cemetery and funeral trusts program run more efficiently and provide clarity for exempt entities.

     Testimony in support of Act 22 from various churches indicated that these changes would provide opportunities for affordable access to columbariums at their churches or temples.  However, the legislature has recently received reports stating that, contrary to the intent of Act 22, the cost for certain religious institutions to construct, manage, and provide niches to its members is no longer affordable and costs are increasing due to private enterprise or management contract with mainland firms that greatly increase costs for local parishioners.

     Accordingly, the purpose of this Act is to repeal Act 22, Session Laws of Hawaii 2020, as it has not lowered funeral costs to parishioners and members of nonprofits, as intended, and to revert to previous requirements that the director of commerce and consumer affairs exempt any cemetery authority from licensing and bonding requirements only upon proving the cemetery authority does not sell for financial profit.

     SECTION 2.  Section 441-22.1, Hawaii Revised Statutes, is amended to read as follows:

     "§441-22.1  Exemption.  [(a)]  The director shall exempt any cemetery authority from the [provisions of this chapter] bonding requirement and the fee requirements for license, renewal, and reinstatement upon proof satisfactory to the director that the cemetery authority does not sell for financial profit[; provided that a cemetery authority exempted under this section shall be required to comply with any provision of this chapter upon order by the director.

     (b)  Any church granted an exemption under this section shall be exempt from all requirements of this chapter.  Any entity that is exempt as a church under federal tax law shall be considered a church for purposes of this section]."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall take effect retroactive to September 15, 2020.

 

INTRODUCED BY:

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Report Title:

Cemeteries; Cemetery Authority; Exemption; Churches; Repeal

 

Description:

Repeals the exemption granted to churches by Act 22, Session Laws of Hawaii 2020, relating to bonding requirements and fee requirements for licenses, renewals, and reinstatements of licenses applicable to cemeteries and funeral trusts.  Clarifies that the Director of Commerce and Consumer Affairs shall exempt any cemetery authority from the bonding requirement and the fee requirements for license, renewal, and reinstatement upon proof satisfactory to the Director that the cemetery authority does not sell for financial profit.  Effective retroactively to 09/15/2020.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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