Report Title:

Cemeteries

Description:

Prohibits mortuary, cemetery, and pre-need funeral authorities from committing certain acts in connection with the cancellation of pre-need funeral services or pre-need interment services.

HOUSE OF REPRESENTATIVES

H.B. NO.

52

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO CEMETERY AND FUNERAL TRUSTS.

 

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

SECTION 1. The purpose of this Act is to strengthen the State's consumer protection laws governing cemetery and funeral trusts by prohibiting mortuary, cemetery, and pre-need funeral authorities from committing certain acts in connection with the cancellation of pre-need funeral services or pre-need interment services.

SECTION 2. Section 441-23, Hawaii Revised Statutes, is amended to read as follows:

"§441-23 Fine, revocation, suspension, and renewal of authority licenses. In addition to any other actions authorized by law, the director may fine an authority, revoke any authority license, or suspend the right of the licensee to use the license, or refuse to renew any license for any cause authorized by law, including but not limited to the following:

(1) Any dishonest or fraudulent act as a cemetery or pre-need funeral authority that causes substantial damage to another;

(2) Making repeated misrepresentations or false promises through advertising or otherwise;

(3) Violation of this chapter or the rules adopted pursuant thereto;

(4) Commingling the money or other property of others with that of the licensee;

(5) Having been adjudicated insane or incompetent;

(6) Selling or offering to sell any cemetery property, pre-need interment, funeral services, or pre-need funeral services based on speculation or promises of profit from resale;

(7) Failing to file the actuarial study or an audited financial statement or to maintain in effect the bond as required by section 441-22;

(8) Failing to maintain pre-need trusts or perpetual care funds as required by this chapter; [or]

(9) Violating section 441-22.7[.];

(10) Failing to notify a purchaser of pre-need funeral services or pre-need interment services of the cancellation of the contract upon the purchaser's breach of the contract;

(11) Retaining over thirty per cent of the payments made by a purchaser of pre-need funeral services or pre-need interment services upon the purchaser's cancellation of the contract; or

(12) Retaining over        per cent of all payments made by a purchaser of pre-need funeral services or pre-need interment services upon the purchaser's default on payments."

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

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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