HB2468 HSCR305-02

 

STAND. COM. REP. NO.305-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2468

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2468 entitled:

"A BILL FOR AN ACT RELATING TO CEMETERY AND FUNERAL TRUSTS,"

begs leave to report as follows:

The purpose of this bill is to authorize the Director of Commerce and Consumer Affairs to contract with private consultants to assist in the review of cemetery and pre-need funeral authority license applications and regulatory issues both before and after licensure.

Testimony in support of this measure was received from the Department of Commerce and Consumer Affairs (DCCA).

Your Committee finds that the cemetery and pre-need funeral industry has expanded from simple, family-owned operations to multi-million dollar corporate enterprises. National funeral companies are acquiring cemetery and pre-need funeral operations throughout the State, making their licensing more complex. In addition, trust fund amounts have drastically increased, resulting in the need for additional regulation and supervision to protect consumers.

DCCA explained that it is authorized to contract with consultants to audit trust fund records of any cemetery or pre-need funeral authority only after the entity is licensed, and that consultants are limited to the auditing of trust funds, while DCCA really needs the authority to contract with consultants who possess expertise to ensure compliance both pre- and post-licensure. This bill would provide DCCA with that authority.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2468 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

 

		____________________________ KENNETH T. HIRAKI, Chair