BILL NUMBER: AB 374	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2012
	AMENDED IN SENATE  AUGUST 6, 2012
	AMENDED IN SENATE  JUNE 20, 2012
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MAY 11, 2011
	AMENDED IN ASSEMBLY  MAY 2, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011

INTRODUCED BY   Assembly Member Hill

                        FEBRUARY 14, 2011

   An act to amend Section 7630 of the Business and Professions Code,
relating to funeral directors and embalmers.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 374, as amended, Hill. Funeral directors and embalmers.
   Existing law, the Funeral Directors and Embalmers Law, creates the
Cemetery and Funeral Bureau within the Department of Consumer
Affairs. Existing law requires a funeral director to obtain a
separate license for each funeral establishment the director
operates. Existing law allows the assignment of a funeral
establishment's license upon payment of a fee and submission of an
audit report performed by an independent certified public accountant
or public accountant licensed in this state that verifies the
accuracy of the establishment's trust fund balances and reports the
establishment's compliance with certain provisions of the Funeral
Directors and Embalmers Law. Existing law requires any shortages in
the trust funds to be funded in order for a funeral establishment's
license to be assigned.
   This bill would require a completed application to be filed in
addition to payment of the fee and submission of the audit report in
order to assign a funeral establishment's license. If an applicant
for assignment of a funeral establishment's license is not able to
submit the audit report due to specified circumstances, the bill
would authorize the applicant to submit a signed request, for
approval from the bureau to secure a bond guaranteeing the payment of
any shortages in the establishment's trust funds, as specified. The
bill would subject an applicant who knowingly provides false  or
misleading  information pursuant to the bill's provisions to
 a civil fine   an administrative citation,
which may include an order of abatement and a fine  not to
exceed $5,000  per violation  . The bill would require an
assignee to maintain the bond after assignment of the funeral
establishment's license by the bureau.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7630 of the Business and Professions Code is
amended to read:
   7630.  (a) A funeral establishment's license may be assigned upon
payment of the fee fixed by this chapter, the filing of a completed
application, and upon submission of an audit report prepared and
signed by an independent certified public accountant or public
accountant currently licensed in this state. The audit report shall
include an unqualified opinion on the accuracy of the trust fund
balances and a report of compliance with the provisions of this
article and Article 9 (commencing with Section 7735). Any shortages
in the trust funds shall be funded.
   (b) (1) If the applicant cannot submit the audit report required
in subdivision (a) due to estate matters or litigation for which the
director or his or her designee is a party, the applicant may request
approval from the bureau to secure a bond by an admitted surety
insurer guaranteeing the payment to each account of any shortages in
the trust funds. Along with the fee and the application to assign the
license and transfer ownership, any applicant requesting an
exception to subdivision (a) shall submit to the bureau a report,
signed by an authorized representative, setting forth the reasons
requested for the exception to the audit requirement and a list of
all trust accounts for the funeral establishment showing the corpus
of the trust, accumulated income, and current account balances for
each account. If the bureau approves the request to secure a bond,
the bureau shall notify the applicant of the approval and of the
requirements of this section.
   (2) Any applicant who knowingly provides false  or misleading
 information pursuant to the requirements of this subdivision
shall be subject to  a civil penalty   an
administrative citation, which may include an order of abatement and
a fine  in an amount not to exceed five thousand dollars
($5,000)  per violation  , in addition to any other remedies
that may be available to the bureau  . An action for a civil
penalty under this paragraph may be brought by any public prosecutor
in the name of the people of the State of California  
for violations of this chapter  .
   (3) Within 30 days from the date of the approval by the bureau,
the applicant shall file satisfactory proof of the posting of a bond
meeting the requirements of this section with the bureau. Once
satisfactory proof of the bond is filed with the bureau and any other
requirements for assignment have been met, the funeral establishment'
s license may be assigned.
   (c) Any applicant that obtains approval from the bureau to post a
bond shall obtain a bond that is in an amount equal to 50 percent
greater than the corpus of the trust and otherwise meet the
requirements of this chapter. Within one year from the date of
acceptance of the surety bond by the bureau and prior to the
expiration of the current bond, the funeral establishment shall file
a new request with the bureau to post another bond and receive
approval by the bureau consistent with the requirements set forth in
subdivision (b). This requirement shall be met for each year in which
the assignee fails to submit an audit report and fund any shortages
as required in subdivision (a).
   (d) The assignee shall comply with all provisions previously
placed on the assignor. The assignee shall maintain the bond referred
to in this section after assignment of the funeral establishment's
license by the bureau.