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F I S C A L I M P A C T R E P O R T





SPONSOR: Larranaga DATE TYPED: 02/19/01 HB 585
SHORT TITLE: Update Endowed Cemetery Care Act SB
ANALYST: Valdes


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Financial Institutions Division, Regulation and Licensing Department



SUMMARY



Synopsis of Bill



House Bill 585 will amend the Endowed Care Cemetery Act to accomplish the following objectives:



Significant Issues



This bill allows cemetery trust funds to be commingled, upon approval of the Financial Institutions Division Director. This is significant for smaller cemeteries to allow greater efficiencies through economies of scale and lower maintenance costs of the trust funds. This will increase funding availability for endowed care.



The bill clarifies the exemption for municipal, fraternal, religious and family cemeteries that provide burial only for family members.



The bill establishes new provisions concerning establishment of a cemetery authority, transfer of ownership, denial or revocation of registration and judicial review.



PERFORMANCE IMPLICATIONS



This bill may affect the Financial Institution Division's performance output measure which states that 80 percent of the applications will be processed within a standard number of days.



FISCAL IMPLICATIONS



There is no additional cost to the department anticipated with the passage of this bill.



The clarification of exemptions may result in minimal additional new revenue according to the department.



ADMINISTRATIVE IMPLICATIONS



No impact.



MV/ar/njw