STAND. COM. REP. NO. 172-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2327

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Intrastate Commerce, to which was referred H.B. No. 2327 entitled:

"A BILL FOR AN ACT RELATING TO CEMETERY AUTHORITY EXEMPTION,"

begs leave to report as follows:

The purpose of this measure is to exempt from the state laws regulating cemeteries:

(1) Any cemetery authority (Authority); provided that the Authority may be ordered by the Director of Commerce and Consumer Affairs to comply with the state cemetery laws; and

(2) Churches, with a federal tax law exemption, that were previously exempted from the state cemetery laws.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs (DCCA) and Hawaii Funeral & Cemetery Association, Inc.

Act 14, Session Laws of Hawaii 1968, authorized the then Cemetery Board to exempt any Authority from the bonding and fee requirements for licensure, renewal, and reinstatement, if it did not actively engage in pre-need sales, have a licensed cemetery salesperson, or sell for financial profit. Since 1968, exempt Authorities have not been regulated and have been treated as exempt from the state cemetery laws. Exempt Authorities provide burial to their communities based upon goodwill, rather than operate the cemetery as a business and would therefore have difficulty in complying with the state cemetery laws. Your Committee believes that codifying the past practices of DCCA's Cemetery and Funeral Trusts Program (Program) through this measure will help the Program become more efficient in overseeing cemeteries and provide clarification on the exemption provision of the state cemetery laws. Your Committee also believes that churches and other non-profit exempt Authorities will continue to be responsible for maintaining and caring for their cemeteries.

Your Committee has amended this measure by changing its effective date to July 1, 2050, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Intrastate Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2327, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2327, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Intrastate Commerce,

____________________________

TAKASHI OHNO, Chair