Fiscal Note & Local Impact Statement

123 rd General Assembly of Ohio

Ohio Legislative Budget Office: a nonpartisan agency providing fiscal research for the Ohio General Assembly

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E-mail: BudgetOffice@LBO.STATE.OH.US ² Internet Web Site:http://www.lbo.state.oh.us/

BILL:

Sub. H.B. 531

DATE:

April 12, 2000

STATUS:

As Passed by the House

SPONSOR:

Rep. Hollister

LOCAL IMPACT STATEMENT REQUIRED:

No —

No local cost

 


CONTENTS:

Exempts certain political subdivisions from paying cemetery registration fees and raises the burial permit fee; changes regulations concerning cemetery endowment care trusts; and alters current law governing the sale of preneed cemetery merchandise

 

State Fiscal Highlights

 

STATE FUND

FY 2001

FY 2002

FUTURE YEARS

Fund 4H9—Cemetery Registration

     Revenues

$10,000 - $15,000 net gain

$10,000 - $15,000 net gain

$10,000 - $15,000 net gain

     Expenditures

- 0 -

- 0 -

- 0 -

Note: The state fiscal year is July 1 through June 30. For example, FY 2001 is July 1, 2000 - June 30, 2001.

 

·        The Division of Real Estate and Professional Licensing funds its Cemetery Dispute Resolution Commission via registration and burial permit fees collected from cemetery and funeral home operators statewide.

·        The bill exempts political subdivisions from paying registration fees for cemeteries, resulting in a potential $33,000-$38,000 annual loss.  In FY 1999, the Real Estate and professional Licensing Division of the Department of Commerce (COM), which regulates cemeteries, collected a total of $236,000.

·        To offset the loss in registration revenue, the bill increases burial permit fees from $2.50 to $3.00, generating about $48,000 in additional burial permit revenue for state use.  Registrars, public or private authorities that the Department of Health authorizes to issue death certificates, retain fifty cents of this fee.

·        The bill requires registrars to submit the state’s portion of burial fees on at least a quarterly basis so that the Division collects revenue on a regular basis.


Local Fiscal Highlights

 

LOCAL GOVERNMENT

FY 2000

FY 2001

FUTURE YEARS

Municipalities, Townships and Other Political Subdivisions

     Revenues

- 0 -

- 0 -

- 0 -

     Expenditures

- 0 -

Decrease between  $33,000-38,000 in cemetery registration fees

Decrease between  $33,000-38,000 in cemetery registration fees

Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.

 

·        The bill exempts political subdivisions from paying cemetery registration fees.  The decrease may amount to a savings of  $33,000 to $38,000 per year.  There are about 1,100 cemeteries statewide owned by political subdivisions. 

 

Detailed Fiscal Analysis

The Cemetery Dispute Resolution Commission is a unit of the Department of Commerce’s (COM) Division of Real Estate and Professional Licensing.  The Division funds its cemetery oversight through two sources, both affected by this bill.  First, the lion’s share of revenue comes from a portion of burial permit fees collected by the Division.  The bill increases the total burial permit fee to $3.00, $2.50 of which is collected by the Division.  The second, smaller source of revenue is cemetery registration fees; about 1,100 political subdivisions pay these fees annually.  The bill exempts political subdivisions from these fees altogether.  

 

The changes in fee structure contained in the bill will most likely result in a net gain in revenue, which is deposited in the Division’s Cemetery Registration, Fund 4H9.  This revenue—which has ranged from $221,504 to $273,930 over the past five fiscal years—pays for the operating costs of the Cemetery Dispute Resolution Committee.  These expenses have been in the $143,000-200,000 range over the same period, but have increased recently because of an additional staff person assigned to the Cemetery Dispute Resolution Committee.  The increased net revenue, projected to be $48,000 in FY 2001, would pay for this new staff person and make up for the revenue lost from cemetery registrations.

 

The table below shows how the revenue projections were calculated.  These are data supplied by the Division of Real Estate and Professional Licensing:

 

Projected State Revenue Gain, Fund 4H9 FY 2000

Loss in cemetery registration income from political subdivisions (about 1,100 cemeteries)

($33,000 to $38,000)

Gain in burial permit revenue (state share increases from $2 to $2.50 (96,000 permits)

$48,000

Net Total

$10,000 to $15,000 gain

 

Another provision in the bill requires registrars, who typically include funeral directors, police departments, and health departments, to send the state’s share of burial permits on a quarterly basis.  This would more evenly modulate the Division’s flow of revenue.

 

The bill specifies that dividend and interest income earned by cemetery endowment trusts may only be used to administer the trust and maintain the cemetery grounds.  Another provision in the bill also revises current standards for the sale of preneed funeral merchandise.  These provisions have no fiscal effect on state or political subdivisions.

 

 

q LBO staff:  Nelson D. Fox, Budget/Policy Analyst

 

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