BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1291| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1291 Author: Nielsen (R) Amended: As introduced Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/2/14 AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Vidak SUBJECT : Public cemetery districts: Halcumb Cemetery District SOURCE : Halcumb Cemetery District DIGEST : This bill allows the Halcumb Cemetery District to inter in the ground or a columbarium up to 40 people per calendar year who are neither residents nor property taxpayers in any cemetery district and who do not otherwise qualify for interment under the state law governing public cemetery districts' interment of eligible nonresidents, if specified conditions are met. ANALYSIS : Existing 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. 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 CONTINUED SB 1291 Page 2 rural communities. County boards of supervisors appoint the cemetery district's board of trustees, composed of three to five registered voters from within the districts' boundaries. Cemetery districts finance their operations with small shares of local property tax revenues, by selling interment rights, and by charging for services. This bill allows the Halcumb Cemetery District to inter in the ground or a columbarium up to 40 people per calendar year who are neither residents nor property taxpayers in any cemetery district and who do not otherwise qualify for interment under the state law governing public cemetery districts' interment of eligible nonresidents, if: The board of trustees determines that the District's cemetery has adequate space for the foreseeable future; The District has an endowment care fund that requires a contribution for every interment of at least a minimum payment as prescribed by law; and The District requires the payment of a non-resident fee, as set by law. Background 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. 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). In 2011, 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). In 2012, to help the Anderson, Cottonwood, and Silveyville cemetery districts overcome the ongoing loss of business to nearby veteran's cemeteries, the Legislature allowed them an exemption from the state law CONTINUED SB 1291 Page 3 restricting non-resident burials (SB 1131, La Malfa, Chapter 65, Statutes of 2012). Last year, the Legislature granted the Kern River Valley cemetery an exemption from the state law restricting non-resident burials (SB 159, Fuller, Chapter 55, Statutes of 2013). The Halcumb Cemetery District serves residents in a 214,761 acre area in Central Shasta County, including the Round Mountain, Montgomery Creek, and Big Bend communities. Formed in 1935, the District provides perpetual care and maintenance to two sites. Cove Cemetery is a one acre site that has been closed to new burials for decades. Halcumb Cemetery has 13 developed acres out of 26 total acres. The District performs 15-20 interments per year and has no estimate of when the Halcumb Cemetery site will reach capacity. The District has one employee. Its Fiscal Year 2012-13 budget was $60,730. In 2005, the state dedicated the Northern California Veterans Cemetery, which is located less than 50 miles southwest of the Halcumb Cemetery. During the most recent complete fiscal year, the Northern California Veterans Cemetery performed 557 burials. After the veterans' cemetery opened nearby, annual interments in the Halcumb Cemetery District decreased, creating significant fiscal challenges for the District. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 4/2/14) Halcumb Cemetery District (source) OPPOSITION : (Verified 4/2/14) Cemetery and Mortuary Association of California Public CemeteryAlliance ARGUMENTS IN SUPPORT : According to the author: California's public cemetery districts are independent special districts, each governed by a board of trustees. They are divided by geographical boundaries, often varying greatly in the geographic size of the district, the number of cemeteries that are within a district, as well as the size of the population that lives within the district. CONTINUED SB 1291 Page 4 Because only residents and property owners within a district, and family members of those people, may be buried within that district's cemetery/ies, some smaller cemetery districts have a very low rate of burials that occur each year. 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. The Halcumb Cemetery District is located within 20 miles of a recently opened state and federal veterans cemetery and each have lost significant interment opportunities to the new site. ARGUMENTS IN OPPOSITION : The Cemetery and Mortuary Association of California states: Cemetery districts, as entities of municipal government are intended to serve their residents. The law therefore sets forth specific connections where interments are appropriate. The expansion of the law to include non-residents, as proposed by SB 1291, creates an opportunity and incentive for municipalities to engage in business practices that compete with the private sector. A private cemetery industry exists in California, with businesses located throughout the state presenting cemetery and funeral-related services. The industry is competitive, and it is regulated by the state Department of Consumer Affairs. As an alternative to significantly revising the sound public policy in support of cemetery districts interring nonresidents, counties experiencing financial difficulty due to the increasing cremation rates and declines in casket burials are encouraged to address those issues by adjusting their services to appropriately serve the needs of their residents. AB:k 4/3/14 Senate Floor Analyses CONTINUED SB 1291 Page 5 SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED