BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 374
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 374 (Hill)
          As Amended  August 15, 2012
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(June 01, 2011) |SENATE: |36-0 |(August 21,    |
          |           |     |                |        |     |2012)          |
           ----------------------------------------------------------------- 
               (vote not relevant) 
           
           Original Committee Reference:    B., P. & C. P.  

           SUMMARY  :  Specifies that if an applicant for assignment of a 
          funeral establishment's license is not able to submit an audit 
          report due to specified circumstances, the applicant may request 
          approval from the Cemetery and Funeral Bureau (Bureau) to secure a 
          bond guaranteeing the payment of any shortages in the 
          establishment's trust funds and provides an administrative penalty 
          if an applicant provides misleading information, as specified. 

           The Senate amendments  delete the Assembly version of this bill, 
          and instead:

          1)Allow a funeral establishment's license to be assigned upon 
            payment of a fixed fee, as specified, and the filing of a 
            completed application.

          2)Provide that if an applicant for assignment of a funeral 
            establishment cannot submit the required audit report 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 shortages in the 
            trust funds.

          3)Require any applicant requesting to obtain a surety bond, as 
            specified, to 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 
            principal of the trust, accumulated income, and current account 
            balances for each account.

          4)Specify that if the bureau approves the request to secure a 
            bond, the bureau shall notify the applicant of the approval and 







                                                                  AB 374
                                                                  Page  2

            of the specified requirements.

          5)Provide that if any applicant who knowingly provides false or 
            misleading information shall be subject to an administrative 
            citation, which may include an order of abatement and a fine in 
            an amount not to exceed $5,000 per violation, in addition to any 
            other remedies that may be available to the Bureau.

          6)Provide that if the Bureau approves the request to secure a 
            bond, within 30 days from the approval date, the applicant must 
            file proof with the Bureau of obtaining a bond meeting the 
            requirements of this section.

          7)Provide that once satisfactory proof of the bond is filed with 
            the Bureau, and any other assignments have been met, the funeral 
            establishment's license may be assigned to the applicant.

          8)Require any applicant that obtains approval from the Bureau to 
            post a bond shall obtain a bond that is in an amount equal to 
            50% greater than the principal of the trust.

          9)Require that after the license is assigned, the funeral 
            establishment must annually request approval and obtain a bond 
            covering the trust fund accounts. 

           EXISITING LAW  :

          1)Licenses and regulates funeral establishments, funeral 
            directors, embalmers, crematories, crematory managers, 
            cemeteries, cemetery managers, cemetery brokers, cemetery 
            salespersons, and cremated remains disposers by the Cemetery and 
            Funeral Bureau (Bureau) within the Department of Consumer 
            Affairs (DCA).  

          2)Authorizes the assignment of a funeral establishment 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.

          3)Requires any shortages in the preneed trust funds to be funded 
            in order for a funeral establishment license to be assigned.  

          4)Authorizes the Bureau to enforce preneed funeral arrangement 







                                                                  AB 374
                                                                  Page  3

            laws and to adopt implementing rules and regulations. 

          5) Defines "preneed arrangement," "preneed agreement" or "preneed" 
            to mean written instruction regarding goods or services or both 
            goods and services for final disposition of human remains when 
            the goods or services are not provided until the time of death, 
            and may be either unfunded or paid for in advance of need.  

          6)Provides that protection of the public shall be the highest 
            priority for the Bureau in exercising its licensing, regulatory, 
            and disciplinary functions.  Whenever the protection of the 
            public is inconsistent with other interests sought to be 
            promoted, the protection of the public shall be paramount.

           AS PASSED BY THE ASSEMBLY  , this bill established a title act for 
          athletic trainers (AT) by prohibiting an individual from holding 
          himself or herself out as an AT unless he or she met specified 
          requirements, including graduating from a college or university 
          after completing an accredited athletic training education 
          program, or having completed requirements for certification by the 
          Board of Certification, Inc., prior to January 1, 2004.  It 
          declared an unfair business practice for any person to use the 
          title of "AT" or "certified athletic trainer" or any other term, 
          such as "licensed," "registered," or "ATC," that implied or 
          suggested that the person was certified as an AT, if the person 
          did not meet the specified requirements. 

           FISCAL EFFECT  :  According to the Senate Appropriations Committee, 
          pursuant to Senate rule 28.8, negligible state costs. 

           COMMENTS  :  This bill was substantially amended in the Senate and 
          the Assembly-approved provisions of this bill were deleted.  This 
          bill, as amended is inconsistent with Assembly actions. 


           Analysis Prepared by  :    Elissa Silva / B.,P. & C.P. / (916) 
          319-3301                                               FN: 0005208