BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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  
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          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  

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          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. 

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            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 


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                           SUPPORT/OPPOSITION:  SEE ABOVE

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