HB2149

SECTION 1. Chapter 469, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . FUNERAL DIRECTORS AND CEMETERY SALESPERSONS

§469- Definitions. As used in this part:

"Board" means the death care industry board.

"Cemetery salesperson" means a person who sells or offers to sell; buys or offers to buy; lists; leases or offers to lease; or solicits or negotiates the purchase, sale, lease, or exchange of cemetery property or interment services.

"Funeral director" means a person who:

(1) Engages in one or more of the following practices:

(A) Directing or supervising funerals;

(B) Preparing human remains for burial by any means, other than by embalming;

(D) Making of arrangements to provide for funeral services;

(E) Selling funeral services or merchandise; or

(F) Making financial arrangements for the rendering of the services or the sale of funeral merchandise; or

(2) Holds themselves out to the public as either a funeral director or someone engaged in one of the practices described herein.

"Funeral director" includes undertakers.

§469- Death care industry board; established; composition. (a) There is established within the department of commerce and consumer affairs pursuant to section 26-9 the death care industry board.

(b) The board shall consist of eleven members, who shall be appointed by the governor, by and with the advice and consent of the senate, from a list of qualified nominees submitted to the governor by the departments, agencies, education stakeholder groups, and organizations representative of the subject matter of the board.

(1) One member shall be a funeral service practitioner;

(2) Two members shall be representatives of an immediate disposition company or a licensed funeral establishment, at least one of whom shall be a licensed embalmer;

(3) One member shall be a representative of a for-profit cemetery;

(4) One member shall be a representative of a nonprofit cemetery;

(5) One member shall be a representative of a cemetery owned or operated by a government entity;

(6) One member shall be a representative of a crematorium or any other facility, other than a cemetery, for final disposition of human remains; and

(7) Four members shall be representatives of the public, one of whom shall be a member of a recognized senior citizen advocacy organization.

(d) The board shall elect from its membership one member to serve as the chairperson of the board and one member to serve as the secretary and treasurer of the board; provided that the members shall only serve as chairperson or secretary and treasurer for a term of one year.

(e) Each person appointed to the board shall have a four‑year term; provided that the initial appointments shall be for staggered terms, as determined by the governor. The governor shall immediately fill any vacancy by appointing a new member for a four-year term beginning on the date of appointment. No member shall serve more than two consecutive terms, except that a member serving on the board pursuant to subsection (c)(7) may serve more than two consecutive terms if no other member of the public is willing to serve on the board.

(f) A board member shall be immediately removed from the board if, during the member's term, the member:

(1) Fails to maintain residency in the State;

(2) Fails, without a valid excuse, to attend three consecutive meetings;

(3) Fails to retain any licensure necessary for membership on the board under subsection (c)(1) or (2); or

(4) Fails to maintain the member's status as an authorized representative of an entity described in subsections (c)(2) through (6).

(g) The board shall meet at least semiannually and may meet at any other times as the board deems necessary.

(h) The members of the board shall serve without compensation but shall be reimbursed for expenses, including reasonable travel expenses, necessary for the performance of their duties.

§469- Death care industry board; powers and duties. (a) In addition to any other powers and duties authorized by law, the board shall have all the powers necessary to effectuate the purposes of this part, including the power to:

(1) Approve examinations for licensure as funeral directors or cemetery salespersons;

(2) Grant, revoke, suspend, or refuse to renew a license as provided in this part;

(3) Receive and conduct investigations regarding complaints made against licensees or any other persons performing the services of a funeral director or cemetery salesperson in violation of this part;

(4) Hold hearings, subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony; and

(5) Adopt rules pursuant to chapter 91 to effectuate the purposes of this part.

(b) The board:

(1) Shall, at least once every two years, inspect the premises and records of each funeral director and cemetery salesperson licensed pursuant to this part;

(2) May randomly inspect the premises and records described in paragraph (1) at any time; and

(3) May establish a self-inspection program;

provided that the board shall only inspect the records described herein to the extent necessary to ensure compliance with this part or any rules adopted pursuant to this part, or both; provided further that the board shall not inspect any area of the premises described herein that is used as living quarters; and provided further that the board may adopt rules pursuant to chapter 91 to establish criteria to exempt funeral directors and cemetery salespersons from the requirements of paragraph (1).

(1) At least one full-time equivalent (1.0 FTE) employee to perform inspections under subsection (c)(1) and (2) and aid in the enforcement of the provisions of this part and any rules adopted pursuant to this part; and

(2) Any other personnel necessary to assist the board in the performance of its duties;

provided that the board shall not employ any person under this paragraph who is a member of the board or actively engaged in a profession or practice regulated by this part.

(d) After each revision to this part or any rules adopted pursuant to this part, the board shall publish for distribution to funeral directors, cemetery salespersons, and any other interested persons, the provisions of this part and the rules adopted pursuant to this part, except that any non-extensive revisions to this part or any rules adopted under this part may instead be published in supplementary form.

§469- Death care industry board special fund; established. (a) There is established in the state treasury the death care industry board special fund.

(b) The revenues of the special fund shall consist of appropriations made by the legislature, fees charged by the board, grants, gifts, any other moneys deposited into the special fund in accordance with this part, and interest on moneys deposited into the special fund.

§469- Funeral directors and cemetery salespersons; licensure. (a) No person shall practice as a funeral director or cemetery salesperson in the State without having a valid license in good standing issued by the board.

(b) The board shall adopt rules pursuant to chapter 91 establishing requirements for granting, revoking, suspending, or refusing to renew the licenses of funeral directors and cemetery salespersons, including qualifications, application requirements, renewal requirements, and fees.

§469- Penalty. Any person who practices as a funeral director or cemetery salesperson in violation of this part or the rules adopted under this part shall be fined not less than $ nor more than $ or imprisoned not less than nor more than , or both."

SECTION 2. Section 26-9, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The board of acupuncture, board of public accountancy, board of barbering and cosmetology, boxing commission, Hawaii board of chiropractic, contractors license board, death care industry board, board of dentistry, board of electricians and plumbers, elevator mechanics licensing board, board of professional engineers, architects, surveyors, and landscape architects, board of massage therapy, Hawaii medical board, motor vehicle industry licensing board, motor vehicle repair industry board, board of naturopathic medicine, board of nursing, Hawaii board of optometry, pest control board, board of pharmacy, board of physical therapy, board of psychology, board of private detectives and guards, real estate commission, Hawaii board of veterinary medicine, board of speech pathology and audiology, and any board, commission, program, or entity created pursuant to or specified by statute in furtherance of the purpose of this section including but not limited to section 26H-4, or chapters 484, 514B, and 514E shall be placed within the department of commerce and consumer affairs for administrative purposes.

The public utilities commission shall be placed, for administrative purposes only, within the department of commerce and consumer affairs. Notwithstanding section 26-9(e), (f), (g), (h), (j), (k), (l), (m), (n), (p), (q), (r), and (s), and except as permitted by sections 269-2 and 269-3, the department of commerce and consumer affairs shall not direct or exert authority over the day-to-day operations or functions of the commission."

SECTION 3. Section 441-25, Hawaii Revised Statutes, is amended to read as follows:

"§441-25 [~~License~~] Real estate license not required to act as cemetery or pre-need funeral salesperson. Chapter 467, relating to real estate brokers and salespersons, shall not be applicable to cemetery salespersons[.]; provided that cemetery salespersons shall be licensed pursuant to chapter 469."

SECTION 4. Section 469-2, Hawaii Revised Statutes, is amended to read as follows:

"§469-2 Rules. The department of health may prescribe [~~such~~] any rules as it deems reasonable and proper relating to the practice of embalming[~~, to the business of an undertaker,~~] or to the sanitary condition of places where [~~such~~] the business or practice of embalming is conducted. [~~The rules of the department may prescribe an original registration fee for the engaging by any person in the business of an undertaker and an annual renewal fee.~~]"

SECTION 5. Section 469-3, Hawaii Revised Statutes, is amended to read as follows:

"§469-3 Renewal of license. Each licensed embalmer [~~or licensed undertaker or funeral director~~] shall, between July 1 and 10 of each year, renew the embalmer's [~~or undertaker's or funeral director's~~] license by registering with the department of health and by paying a renewal fee. Every license that is not so renewed shall expire on August 1 and shall not be renewed except upon the payment of a delinquent fee."

SECTION 6. Section 469-5, Hawaii Revised Statutes, is amended to read as follows:

"§469-5 Disposition of fees. All fees collected [~~by the board~~] pursuant to this part shall be deposited by the department of health with the director of finance to the credit of the general fund."

SECTION 7. Section 469-6, Hawaii Revised Statutes, is amended to read as follows:

"§469-6 Revocation of license. A license issued pursuant to this part may be revoked by the department of health upon proof to its satisfaction of violation of any rule or regulation of the department in any respect in regard thereto. Every person so charged shall be given notice and opportunity for hearing in conformity with chapter 91."

SECTION 8. Section 469-8, Hawaii Revised Statutes, is amended to read as follows:

"§469-8 Penalty. Any person who practices as an embalmer [~~or undertaker~~] without being registered with the department of health as herein provided shall be fined not less than $50 nor more than $250 or imprisoned not less than thirty days nor more than ninety days, or both."

SECTION 9. Chapter 469, Hawaii Revised Statutes, is amended by changing its title to read as follows:

"[~~UNDERTAKERS,~~] EMBALMERS, FUNERAL DIRECTORS, CEMETERY SALESPERSONS"

SECTION 10. Chapter 469, Hawaii Revised Statutes, is amended by designating sections 469-1 to 469-8 as part I and inserting a title before section 469-1 to read as follows:

"PART I. EMBALMERS"

SECTION 11. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 12. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 13. This Act shall take effect on January 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2149
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII