BILL ANALYSIS Ó SB 159 Page 1 SENATE THIRD READING SB 159 (Fuller) As Introduced February 1, 2013 Majority vote SENATE VOTE :33-0 LOCAL GOVERNMENT 9-0 ----------------------------------------------------------------- |Ayes:|Achadjian, Levine, Alejo, | | | | |Bradford, Gordon, | | | | |Melendez, Mullin, Rendon, | | | | |Waldron | | | ----------------------------------------------------------------- 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 interments each, not to exceed 40 interments per calendar year, for the interment 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. SB 159 Page 2 EXISTING LAW : 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)Allows the Cottonwood Cemetery District, the Anderson Cemetery District, and the Silveyville Cemetery District 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. FISCAL EFFECT : None SB 159 Page 3 COMMENTS : 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 interments, 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." 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 SB 159 Page 4 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). 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). 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. 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 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 : Misa Yokoi-Shelton / L. GOV. / (916) 319-3958 FN: 0001149 SB 159 Page 5