HOUSE OF REPRESENTATIVES |
H.R. NO. |
142 |
TWENTY-FOURTH LEGISLATURE, 2007 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
requesting the legislative reference bureau to study pre-paid or pre-need funeral or burial plans.
WHEREAS, Hawaii's population is aging and it is important to address the needs of elderly consumers; and
WHEREAS, pre-paid or pre-need plans for funeral or burial contracts are becoming increasingly popular; and
WHEREAS, generally, under these pre-paid or pre-need funeral or burial plans, consumers pay a funeral service company in installments with the expectation that the money paid will be held in trust, for consumer's benefit, to pay for services upon their death; and
WHEREAS, consumer advocates have expressed concern about Hawaii's laws governing pre-paid or pre-need funeral or burial plans; and
WHEREAS, as compared to other states, Hawaii requires a lower percentage of payments made as part of pre-paid or pre-need funeral or burial plans to be held in trust, and allows companies to keep a higher percentage of payments before allowing refunds to consumers; and
WHEREAS, anecdotal evidence suggests that consumers have a difficult time obtaining refunds or changing their pre-paid or pre-need funeral or burial plans; and
WHEREAS, stronger consumer protection in the area of pre-paid or pre-need funeral or burial plans is necessary to safeguard Hawaii's elderly consumers and protect their families; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, that the Legislative Reference Bureau is requested to study pre‑paid or pre-need funeral or burial plans in Hawaii; and
BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to include in its study:
(1) A review of other jurisdictions' laws on pre-paid or pre-need funeral or burial plans in Hawaii; provided that this review shall include a compilation of an indicative sampling of laws and regulations regarding refunds and trusting of consumers' payments;
(2) A history of Hawaii's laws and regulations regarding pre-paid or pre-need funeral or burial plans;
(3) Statistics on pre-paid or pre-need funeral or burial plans in Hawaii; specifically the number of plans that are outstanding, the value of outstanding plans, and any information regarding refunds for outstanding plans; and
(4) An analysis of consumer complaints made to the Department of Commerce and Consumer Affairs or any other entities that receive consumer complaints; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Acting Director of the Legislative Reference Bureau and the Director of Commerce and Consumer Affairs.
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OFFERED BY: |
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Legislative Reference Bureau; Study; Pre-paid or Pre-need Funeral or Burial Plans