BILL ANALYSIS                                                                                                                                                                                                    Ó



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        SENATE THIRD READING
        SB 1131 (La Malfa)
        As Amended  May 8, 2012
        Majority vote 

         SENATE VOTE  :37-0  
         
         LOCAL GOVERNMENT    9-0                                         
         
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        |Ayes:|Smyth, Alejo, Bradford,   |     |                          |
        |     |Campos, Davis, Gordon,    |     |                          |
        |     |Hueso, Knight, Norby      |     |                          |
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         SUMMARY  :  Allows the Anderson Cemetery District, Cottonwood Cemetery 
        District, and Silveyville Cemetery District to inter nonresidents 
        under specified conditions.  Specifically,  this bill  :   

        1)Allows the Cottonwood Cemetery District in Shasta County, the 
          Anderson Cemetery District in Shasta County, and the Silveyville 
          Cemetery District in Solano County to use their cemeteries for up 
          to a total of 400 interments each, not to exceed 40 interments 
          each per calendar year, for interment in the ground or a 
          columbarium of any person who is not a resident or a property 
          taxpayer of any cemetery district, and who does not qualify for 
          that interment pursuant to existing law, if all of the following 
          apply:

           a)   The board of trustees determines that the district's 
             cemetery has adequate space for the foreseeable future;

           b)   The district has an endowment care fund that requires a 
             contribution for every interment of at least the minimum amount 
             set pursuant to existing law; and,

           c)   The district requires the payment of a nonresident fee set 
             pursuant to existing law.

        2)Finds and declares that a special law is necessary because of the 
          unique circumstances pertaining to these specific cemetery 
          districts.

         EXISTING LAW  :








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        1)States that a cemetery district shall limit interments to the 
          following:

           a)   Persons who are residents of the district;

           b)   Persons who are former residents of the district and who 
             acquired interment rights while they were residents of the 
             district;

           c)   Persons who pay property taxes on property located in the 
             district;

           d)   Persons who formerly paid property taxes on property located 
             in the district and who acquired interment rights while they 
             paid those property taxes;

           e)   Eligible nonresidents of the district, as provided; or,

           f)   Persons who are family members of any person described in 
             this section.

        2)Authorizes the Oroville Cemetery District to use its cemetery on 
          Feather River Boulevard, north of Oro Dam Boulevard for up to a 
          total of 100 interments, for interment in the ground of any person 
          who is not a resident of the Oroville Cemetery District, if all of 
          the following apply:

           a)   The board of trustees determines that the cemetery has 
             adequate space for the foreseeable future;

           b)   The Oroville Cemetery District has an endowment care fund 
             that requires at least the minimum payment prescribed by law; 
             and,

           c)   The Oroville Cemetery District requires the payment of a 
             nonresident fee prescribed by law.

        3)Authorizes Elsinore Valley Cemetery District (EVCD) to use a 
          portion of its cemetery formerly known as Home of Peace for up to 
          a total of 536 interments for nonresidents of EVCD who meet 
          specified criteria.

        4)Requires that before approving such interments the following must 








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          occur: 

           a)   The board of trustees for EVCD must determine that the 
             cemetery has adequate space for the foreseeable future;

           b)   EVCD has an endowment care fund that requires at least a 
             minimum payment as prescribed by law; and,

           c)   EVCD requires the payment of a nonresident fee as prescribed 
             by law.

         FISCAL EFFECT  :  None

         COMMENTS  :  California's 253 public cemetery districts are separate 
        local governments that operate cemeteries and provide interment 
        services, mostly in rural areas and suburbs that were formerly rural 
        communities.  County boards of supervisors appoint the cemetery 
        districts' boards of trustees, composed of three to five registered 
        voters from within the districts' boundaries.  The districts finance 
        their operations with small shares of local property tax revenues, 
        by selling interment rights and charging for services.  

        State law limits who may be buried in a district cemetery.  
        Generally, cemetery districts can bury only residents, former 
        residents, property taxpayers, former taxpayers, certain eligible 
        nonresidents, and their family members.

        Responding to an Attorney General's opinion, the Legislature allowed 
        the Oroville Cemetery District (Butte County) to inter up to 100 
        nonresidents in a former Jewish cemetery which the District had 
        acquired (SB 1906 (Johnson), Chapter 1039, Statutes of 1982).  When 
        it revised the Public Cemetery District Law, the Legislature 
        retained Oroville's special provision (SB 341 (Senate Local 
        Government Committee), Chapter 57, Statutes of 2003).  The 
        Legislature allowed the Elsinore Valley Cemetery District (Riverside 
        County) to inter up to 536 nonresidents in a former Jewish cemetery, 
        under specified conditions (AB 1969 (Jeffries), Chapter 40, Statutes 
        of 2010).  Last year, to facilitate a group purchase of cemetery 
        plots by members of the Congregation Bet Haverim Synagogue, the 
        Legislature allowed the Davis Cemetery District to inter up to 500 
        nonresidents under specified conditions (AB 966 (Yamada), Chapter 
        111, Statutes of 2011).

        The Anderson Cemetery District (Shasta County) and Cottonwood 








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        Cemetery District (Shasta County) were both established in 1943 to 
        provide cemetery services to residents in the cities of Anderson and 
        Cottonwood and in some unincorporated parts of Shasta County.  In 
        2005, the state dedicated the Northern California Veterans Cemetery, 
        which is located less than 20 miles away from both the Anderson and 
        Cottonwood districts' cemeteries.  During the most recent complete 
        fiscal year, the Northern California Veterans Cemetery performed 505 
        burials.  After the veterans' cemetery opened nearby, annual 
        interments in the Anderson and Cottonwood districts' cemeteries 
        decreased, creating significant fiscal challenges for both 
        districts.  

        The Silveyville Cemetery District (Solano County) was established in 
        1927.  It owns and operates three cemeteries:  Dixon Cemetery, 
        Binghampton Cemetery, and Tremont Cemetery.  In 2006, the federal 
        government opened the Sacramento Valley National Cemetery, which is 
        located less than 15 miles from each of the Silveyville District's 
        three cemeteries.  Annual interments in the Silveyville District's 
        cemeteries decreased after the veterans' cemetery opened.

        This bill allows three cemetery districts to inter up to 40 
        nonresidents in each cemetery's district - up to a maximum of 400 - 
        provided that a nonresident fee is paid, the district's board of 
        trustees affirms that there is adequate space for the foreseeable 
        future, and the cemetery has an endowment care fund.  

        According to the author, the Anderson, Cottonwood, and Silveyville 
        cemetery districts have each experienced a significant struggle due 
        to the steadily rising cremation rate and the decline of casket 
        burials.  With the openings of nearby state and federal veterans' 
        cemeteries, the districts' interment rates have dropped drastically. 
         This bill is sponsored by the Cottonwood Cemetery District.

        The Cemetery and Mortuary Association of California and the 
        California Funeral Directors Association are opposed to this bill 
        because they believe that it "encourages municipalities to compete 
        with private companies for business in a manner that is both 
        unnecessary and unfair."

        Support arguments:  In light of the numerous fiscal challenges 
        facing public cemeteries, revenues from nonresident burials could 
        offer significant financial benefits to districts that are 
        struggling to continue providing cemetery services.  Supporters 
        argue that this bill increases the likelihood that cemeteries with 








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        lower burial rates will be able to serve their communities for 
        current and future generations.

        Opposition arguments:  Opposition argues that there is a sound 
        public policy rationale for existing law and the statutory 
        restrictions because cemetery districts are intended to serve their 
        residents, and this bill creates an opportunity for municipalities 
        to engage in business practices that compete with the private 
        sector.


         Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 319-3958 


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