The implications of enacting SB 157 are significant for both religious institutions and their congregants who rely on affordable burial options. By repealing Act 22, which had been established to facilitate more cost-effective cemetery management by religious organizations, the legislation recognizes that the financial burden has continued to escalate. The bill's supporters argue that reverting to previously established bonding and licensing requirements will help maintain lower costs for local parishioners seeking burial services at their churches or associated cemeteries.
Senate Bill 157 seeks to amend existing cemetery regulations in Hawaii by repealing Act 22, Session Laws of Hawaii 2020. The original intent of Act 22 was to provide certain exemptions to churches and nonprofit cemetery authorities from licensing and bonding requirements under the state's cemetery and funeral trusts laws. However, reports indicated that instead of reducing costs as intended, the exemption led to increased expenses for these entities, especially when managed by private enterprises that contracted with mainland firms. Consequently, the bill aims to revert to prior regulations that ensure exemptions are granted only if a cemetery authority does not engage in financial profit from sales.
The departure from Act 22 raises important issues regarding local governance and the ability of non-profit entities to provide affordable funeral services. Supporters of the repeal argue that the original exemptions have not achieved their goals, while opponents may point to the potential challenges and bureaucratic hurdles that could arise from reinstating stricter regulations. The consequences of this bill could influence not only how cemeteries are regulated but also how these institutions manage their financial responsibilities and the costs they pass on to families.
Noteworthy is the emphasis on ensuring cemeteries remain non-profit, which is intended to prevent churches and cemetery authorities from being exploited by profit-driven entities. The legislative findings reflect a direct response to feedback from religious communities that indicated their needs for reasonable funeral service costs have not been adequately met by previous legislation.