BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 159
                                                                  Page  1

          Date of Hearing:  June 12, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                  SB 159 (Fuller) - As Introduced:  February 1, 2013

           SENATE VOTE  :  33-0
           
          SUBJECT  :  Public cemetery districts: Kern River Valley Cemetery  
          District.

           SUMMARY  :  Allows the Kern River Valley Cemetery District to  
          inter nonresidents under specified conditions.  Specifically,  
           this bill  :   

          1)Extends to the Kern River Valley Cemetery District (District)  
            in Kern County, the authority already granted to the  
            Cottonwood Cemetery District (Shasta County), the Anderson  
            Cemetery District (Shasta County), and the Silveyville  
            Cemetery District (Solano County), to use its cemetery for up  
            to a total of 400 internments each, not to exceed 40  
            interments per calendar year, for the internment in the ground  
            or columbarium of any person who is not a resident or a  
            property taxpayer of the cemetery district, if the following  
            conditions are met:  

             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 the District.

           EXISTING LAW  :

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

             a)   Persons who are residents of the district;








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             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)Allows the Cottonwood Cemetery District, the Anderson Cemetery  
            District County, and the Silveyville Cemetery District to use  
            their cemeteries for up to a total of 400 internments 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.  

          3)Authorizes the Oroville Cemetery District to use its cemetery  
            on Feather River Boulevard, for up to a total of 100  
            interments, for interment in the ground of any non-residents,  
            the Elsinore Valley Cemetery District to use a portion of its  
            cemetery for up to a total of 536 interments for nonresidents,  
            and the Davis Cemetery District to use its cemetery for up to  
            a total of 500 internments, for internment in the ground of  
            any nonresident, if all of the following apply:









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             a)   The board of trustees determines that the 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  
               prescribed by law.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)This bill extends, to the District, the authority currently  
            granted to the Anderson, Cottonwood, and Silveyville cemetery  
            districts.  This bill allows the District to use its cemetery  
            to inter nonresidents for a total of 400 internments, up to 40  
            per calendar year, pursuant to the conditions established for  
            the authorization for the other three cemetery districts.   
            This bill is sponsored by the District.  

            The District was established in 1950 to provide cemetery  
            services to residents within its boundaries.  In 2009, the  
            federal government opened the Bakersfield National Cemetery  
            approximately 40 miles from the District's cemetery that will  
            accommodate burials for roughly 200,000 veterans and their  
            families.  

            According to the author, "The struggle to maintain a constant  
            flow of business for many of these smaller cemeteries is  
            greatly impacted by nearby state and federal veterans  
            cemeteries, where any US veteran is allowed to be buried at no  
            cost and the veteran's spouse can also be buried at no, or  
            very minimal cost."  
          2)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.  









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            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.

          3)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, 1982).  When it  
            revised the Public Cemetery District Law, the Legislature  
            retained Oroville's special provision (SB 341, Senate Local  
            Government Committee, 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, 2010).  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, 2011).

            Most recently the Legislature allowed the Anderson,  
            Cottonwood, and Silveyville cemetery districts to inter  
            nonresidents due to financial hardship caused by the openings  
            of nearby state and federal veterans' cemeteries.  SB 1131 (La  
            Malfa), Chapter 65, Statutes of 2012, allows those 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.  

          4)The Cemetery and Mortuary Association of California, in  
            opposition, argues that this bill "creates an opportunity and  
            incentive for municipalities to engage in business practices  
            that compete with the private sector."  

           5)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 lower burial rates will be able to serve their  
            communities for current and future generations.  
                
              Opposition arguments  :  Opposition argues that there is a sound  








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            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.

           



          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Kern River Valley Public Cemetery District 
           
            Opposition 
           
          Cemetery and Mortuary Association of California 

           Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958