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