Report Title:
Cemetery and Funeral Trusts; Pre-Need Contract Disclosures
Description:
Establishes additional disclosures for pre-need funeral contracts, including those relating to itemization of goods and services purchased, total purchase price and credit terms, and trust information.
|
THE SENATE |
S.B. NO. |
1797 |
|
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. Section 441-22.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) Every cemetery or pre-need funeral authority shall be required to provide to the purchaser of cemetery property, pre-need interment, or pre-need funeral services and related commodities a written contract, written in plain and clear language, which shall contain the following disclosure requirements:
(1) The names and addresses of the authority [and], purchaser[;], and contract beneficiary, if other than the purchaser;
(2) A clear, itemized, and concise statement of the property, services, and related commodities to be supplied or not supplied and by whom, particularly if the authority is not to be the provider under the terms of the contract;
(3) The purchase price of each item of property, services, and related commodities to be supplied, the total purchase price, and how the total purchase price is payable[;], including any credit terms, if applicable; provided that, pursuant to section 441-22.7, disclosure shall also be made that further additional charges or fees for perpetual care subsequent to the execution of the contract are prohibited for any purpose and on any occasion, except for reasonable fees related to the administrative costs of transferring ownership rights, including the cost of research, document and file preparation, photocopying, notary fees, records transfer and storage, and any other costs directly related to the transfer of ownership rights;
(4) Related costs covered under the contract;
(5) The basis on which funds are to be deposited in trust[;], including:
(A) The name and address of the trustee;
(B) The amount of money to be placed in trust; and
(C) The percentage and total amount paid on the contract that the authority will retain and not deposit into the trust;
(6) Refund and cancellation provisions of the contract[;], printed in twelve point bold type, including:
(A) An explanation of the disposition of the interest earned after performance of the contract; and
(B) A statement of the purchaser's responsibility for taxes owed on the interest;
(7) The date and place of execution of the contract;
(8) The authority's or its duly authorized agent's signature on the contract and the identification of this person by name and title; [and]
(9) A statement that the written contract, when signed, shall constitute the entire agreement between the parties relative to its subject matter and that all obligations of both parties shall be fixed and enforceable by the other parties of the contract[.]; and
(10) A statement that the contract may not waive any rights and duties of the parties under the law."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2005.
|
INTRODUCED BY: |
_____________________________ |