BILL ANALYSIS Ó SB 1131 Page 1 SENATE THIRD READING SB 1131 (La Malfa) As Amended May 8, 2012 Majority vote SENATE VOTE :37-0 LOCAL GOVERNMENT 9-0 ----------------------------------------------------------------- |Ayes:|Smyth, Alejo, Bradford, | | | | |Campos, Davis, Gordon, | | | | |Hueso, Knight, Norby | | | ----------------------------------------------------------------- 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 : SB 1131 Page 2 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 SB 1131 Page 3 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 SB 1131 Page 4 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 SB 1131 Page 5 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 FN: 0004066