THE SENATE	S.C.R. NO.	145
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

SENATE CONCURRENT

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 Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the House of Representatives concurring, 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 Concurrent Resolution be transmitted to the Acting Director of the Legislative Reference Bureau and the Director of Commerce and Consumer Affairs.

OFFERED BY:

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Report Title: 

Legislative Reference Bureau; Study; Pre-paid or Pre-need Funeral or Burial Plans