Amended in Senate June 29, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 180

Introduced by Assembly Member Bonilla

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(Coauthor: Senator Hill)

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(Principal coauthor: Senator Hill)

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January 26, 2015

begin delete An act to amend Section 9625 of, and to amend and repeal Section 9613 of, the Business and Professions Code, relating to cemeteries. end delete begin insert An act to amend Sections 205, 7600, 7602, 7607, 7608, 7609, 7622.2, 7685.3, 7685.5, 7725.2, and 7727 of, to amend the heading of Chapter 12 (commencing with Section 7600) of Division 3 of, to add Sections 7610.1, 7700.1, 7711.2, 7711.3, 7711.4, 7711.5, 7711.6, 7711.7, 7711.8, 7711.9, 7711.10, 7711.11, 7711.12, 7729.1, 7729.2, 7729.3, 7729.4, 7729.5, 7729.6, 7729.7, 7729.8, 7729.9, 7729.10, 7730, 7730.1, 7730.2, 7730.3, 7730.4, 7730.5, 7730.6, 7730.7, 7730.8, 7730.9, 7730.10, 7731, 7731.1, 7731.2, 7731.3, and 7731.4 to, to add Article 1.5 (commencing with Section 7611), Article 2.5 (commencing with Section 7637), Article 3.5 (commencing with Section 7651), Article 4.5 (commencing with Section 7672), and Article 6.5 (commencing with Section 7712) to Chapter 12 of Division 3 of, to repeal Sections 7619.2, 7620, and 7261 of, to repeal Chapter 19 (commencing with Section 9600) of Division 3 of, and to repeal and add Section 7606 of, the Business and Professions Code, relating to professions and vocations, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 180, as amended, Bonilla. Cemetery and Funeral Bureau.

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Existing law provides for the licensure and regulation of funeral directors, funeral establishments, and embalmers, by the Cemetery and Funeral Bureau pursuant to the Funeral Directors and Embalmers Law, and a violation of the law is a crime. Existing law provides for the licensure and regulation of cemetery managers, cemetery brokers, cemetery salespersons, crematories, and crematory managers, pursuant to the Cemetery Act, by the Cemetery and Funeral Bureau. Existing law directs charges imposed under the law and the act to be deposited into the State Funeral Directors and Embalmers Fund or the Cemetery Fund, respectively. Under existing law, these funds are continuously appropriated. Existing law, the Cemetery Act, requires the bureau to survey each of its licensees to obtain information to determine if the endowment care fund levels of the licensee’s cemetery are sufficient to cover the cost of future operation, as specified, and required the bureau to report its findings and recommendations to the Legislature by January 1, 2008.

end insert begin insert

This bill would consolidate the Funeral Directors and Embalmers Law and the Cemetery Act into the Cemetery and Funeral Bureau Act and direct charges imposed under the act to be deposited into the renamed Cemetery and Funeral Fund, a continuously appropriated fund. Because additional moneys would be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would subject the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and require the review to be performed as if the act is scheduled to be repealed on January 1, 2020. The bill would require the bureau to conduct a study to obtain information to determine if the endowment care fund levels of its licensees’ cemeteries are sufficient to cover the cost of future maintenance, as specified, and to report its findings and recommendations to those policy committees by November 1, 2018. The bill would no longer require an applicant to include specified information or proof when applying to become a funeral director. The bill would also remove obsolete references and make additional nonsubstantive changes.

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By expanding the scope of a crime, the bill would impose a state-mandated local program.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

end insert begin delete

The Cemetery Act provides for the licensure and regulation of cemeteries, crematories, and their personnel by the Cemetery and Funeral Bureau, which is within the Department of Consumer Affairs. The act authorizes the Director of Consumer Affairs with the approval of the Director of Finance to appoint a chief of the bureau who is vested with the duty to enforce the act and serves at the pleasure of the director. The act also required the bureau to survey each of its licensees to obtain information to determine if the endowment care fund levels of the licensee’s cemetery are sufficient to cover the cost of future operation, as specified, and report its findings and recommendations to the Legislature by January 1, 2008.

end delete begin delete

This bill would provide that the powers and duties of the bureau under the act are subject to review by the appropriate policy committees of the Legislature and that the review is required to be performed as if the act is scheduled to be repealed on January 1, 2020. The bill would require the bureau to conduct a study to obtain information to determine if the endowment care fund levels of its licensees’ cemeteries are sufficient to cover the cost of future operation, as specified, and report its findings and recommendations to the Senate Committee on Business, Professions and Economic Development and the Assembly Committee on Business and Professions by November 1, 2018. The bill would repeal that reporting requirement on January 1, 2020.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 205 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

205.  

(a) There is in the State Treasury the Professions and
Vocations Fund. The fund shall consist of the following special
funds:

(1) Accountancy Fund.

(2) California Architects Board Fund.

(3) Athletic Commission Fund.

(4) Barbering and Cosmetology Contingent Fund.

(5) Cemetery begin insert and Funeral end insert Fund.

(6) Contractors’ License Fund.

(7) State Dentistry Fund.

begin delete end delete begin delete

(8) State Funeral Directors and Embalmers Fund.

end delete begin delete end delete begin delete

(9)

end delete

begin insert (8) end insert  Guide Dogs for the Blind Fund.

begin delete

(10)

end delete

begin insert (9) end insert  Home Furnishings and Thermal Insulation Fund.

begin delete

(11)

end delete

begin insert (10) end insert  California Architects Board-Landscape Architects Fund.

begin delete

(12)

end delete

begin insert (11) end insert  Contingent Fund of the Medical Board of California.

begin delete

(13)

end delete

begin insert (12) end insert  Optometry Fund.

begin delete

(14)

end delete

begin insert (13) end insert  Pharmacy Board Contingent Fund.

begin delete

(15)

end delete

begin insert (14) end insert  Physical Therapy Fund.

begin delete

(16)

end delete

begin insert (15) end insert  Private Investigator Fund.

begin delete

(17)

end delete

begin insert (16) end insert  Professional Engineer’s and Land Surveyor’s Fund.

begin delete

(18)

end delete

begin insert (17) end insert  Consumer Affairs Fund.

begin delete

(19)

end delete

begin insert (18) end insert  Behavioral Sciences Fund.

begin delete

(20)

end delete

begin insert (19) end insert  Licensed Midwifery Fund.

begin delete

(21)

end delete

begin insert (20) end insert  Court Reporters’ Fund.

begin delete

(22)

end delete

begin insert (21) end insert  Veterinary Medical Board Contingent Fund.

begin delete

(23)

end delete

begin insert (22) end insert  Vocational Nurses Account of the Vocational Nursing and
Psychiatric Technicians Fund.

begin delete

(24)

end delete

begin insert (23) end insert  Electronic and Appliance Repair Fund.

begin delete

(25)

end delete

begin insert (24) end insert  Geology and Geophysics Account of the Professional
Engineer’s and Land Surveyor’s Fund.

begin delete

(26)

end delete

begin insert (25) end insert  Dispensing Opticians Fund.

begin delete

(27)

end delete

begin insert (26) end insert  Acupuncture Fund.

begin delete

(28)

end delete

begin insert (27) end insert  Physician Assistant Fund.

begin delete

(29)

end delete

begin insert (28) end insert  Board of Podiatric Medicine Fund.

begin delete

(30)

end delete

begin insert (29) end insert  Psychology Fund.

begin delete

(31)

end delete

begin insert (30) end insert  Respiratory Care Fund.

begin delete

(32)

end delete

begin insert (31) end insert  Speech-Language Pathology and Audiology and Hearing
Aid Dispensers Fund.

begin delete

(33)

end delete

begin insert (32) end insert  Board of Registered Nursing Fund.

begin delete

(34)

end delete

begin insert (33) end insert  Psychiatric Technician Examiners Account of the
Vocational Nursing and Psychiatric Technicians Fund.

begin delete

(35)

end delete

begin insert (34) end insert  Animal Health Technician Examining Committee Fund.

begin delete

(36)

end delete

begin insert (35) end insert  State Dental Hygiene Fund.

begin delete

(37)

end delete

begin insert (36) end insert  State Dental Assistant Fund.

begin delete

(38)

end delete

begin insert (37) end insert  Structural Pest Control Fund.

begin delete

(39)

end delete

begin insert (38) end insert  Structural Pest Control Eradication and Enforcement Fund.

begin delete

(40)

end delete

begin insert (39) end insert  Structural Pest Control Research Fund.

(b) For accounting and recordkeeping purposes, the Professions
and Vocations Fund shall be deemed to be a single special fund,
and each of the several special funds therein shall constitute and
be deemed to be a separate account in the Professions and
Vocations Fund. Each account or fund shall be available for
expenditure only for the purposes as are now or may hereafter be
provided by law.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The heading of Chapter 12 (commencing with Section
7600) of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

 

Chapter  12. begin insert Cemetery and end insert Funeral begin delete Directors and
Embalmers end delete begin insert Act end insert

 

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 7600 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7600.  

This chapter of the Business and Professions Code
constitutes the chapter on begin delete funeral directors end delete begin insert cemetery end insert and
begin delete embalmers. end delete begin insert funeral law. end insert It may be cited as the begin delete Funeral Directors end delete
begin delete and end delete begin delete Embalmers Law. end delete begin insert Cemetery and Funeral Act. end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 7602 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7602.  

begin insert (a) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert There is in the department the Cemetery and
Funeral Bureau, under the supervision and control of the director.

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The

end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert director may appoint a chief at a salary to be fixed and
determined by the director, with the approval of the Director of
Finance. The duty of enforcing and administering this chapter is
vested in the chief, and he or she is responsible to the director
therefor. The chief shall serve at the pleasure of the director.

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Every

end delete

begin insert (3) end insert begin insert   end insert begin insert Every end insert power granted or duty imposed upon the director
under this chapter may be exercised or performed in the name of
the director by a deputy director or by the chief, subject to such
conditions and limitations as the director may prescribe.

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(b) Notwithstanding any other law, the powers and duties of
the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter is scheduled to repeal on
January 1, 2020.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 7606 of the end insert begin insert Business and Professions Code end insert begin insert is
repealed. end insert

begin delete

7606.  

The bureau may, pursuant to the provisions of the
Administrative Procedure Act, adopt and enforce reasonably
necessary rules and regulations relating to:

(a) The practice of embalming.

(b) The business of a funeral director.

(c) The sanitary conditions of places where such practice or
business is conducted with particular regard to plumbing, sewage,
ventilation and equipment.

(d) Specifying conditions for approval of funeral establishments
for apprentices and for approval of mortuary science programs.

(e) The scope of examinations.

(f) Carrying out generally the various provisions of this chapter
for the protection of the peace, health, safety, welfare and morals
of the public.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 7606 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 7606. end insert   

The bureau may establish necessary rules and
regulations for the administration and enforcement of this act and
the laws subject to its jurisdiction and prescribe the form of
statements and reports provided for in this act. The rules and
regulations shall be adopted, amended, or repealed in accordance
with the provisions of the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code).

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 7607 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7607.  

The bureau may inspect the premises in which the
business of a funeral begin delete director end delete begin insert establishment, cemetery, or crematory end insert
is conducted, where embalming is practiced, or where human
remains are stored.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 7608 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7608.  

The Director of Consumer Affairs may employ and
appoint all employees necessary to properly administer the work
of the bureau, in accordance with civil service regulations.

With the approval of the Director of Finance, and, subject to the
provisions of Section 159.5, the bureau shall employ investigators
and attorneys to assist the bureau in prosecuting violations of this
chapter, whose compensation and expenses shall be payable begin delete only
out of end delete begin delete the end delete begin delete State end delete begin delete Funeral end delete begin delete Directors and Embalmers end delete begin insert from the
Cemetery and Funeral end insert Fund.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 7609 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7609.  

This chapter does not apply to, or in any way interfere
with, the duties of any officer of any public institution or of any
duly accredited medical college, nor does it apply to any hospital
licensed pursuant to Chapter 2 (commencing with Section 1250)
of Division 2 of the Health and Safety Code, begin insert or end insert anyone engaged
only in the furnishing of burial begin delete receptacles, or anyone engaged in
the operation of a cemetery solely for the interment of human dead. end delete
begin insert receptacles. end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 7610.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7610.1. end insert   

In the enforcement of this act and the laws subject to
its jurisdiction, the bureau has all the powers and is subject to all
the responsibilities vested in and imposed upon the head of a
department under Chapter 2 (commencing with Section 11150) of
Part 1 of Division 3 of Title 2 of the Government Code.

end insert

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Article 1.5 (commencing with Section 7611) is added
to Chapter 12 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 1.5. end insert   Definitions and Regulation of Cemeteries

 

begin insert 7611. end insert   

The definitions in this article govern the meaning of
terms used in the act except as otherwise provided expressly or by
necessary implication.

begin insert 7611.1. end insert   

“Act” means the Cemetery and Funeral Bureau Act.

begin insert 7611.2. end insert   

A “cemetery broker” is a person who, other than in
reference to an occasional sale, sells or offers for sale, buys, or
offers to buy, lists, leases or offers to lease, or solicits, or negotiates
the purchase or sale, lease, or exchange of cemetery property or
interment services, or interest therein, for his or her own account
or for another.

begin insert 7611.3. end insert   

A “cemetery salesperson” is a natural person who,
other than in reference to an occasional sale, is employed by a
cemetery broker to sell, or offer for sale, list or offer to list, or to
buy, or to offer to buy, or to lease, or offer to lease, or to solicit,
or to negotiate the purchase or sale or lease or exchange of
cemetery property or interment services, or any interest therein,
for his or her own account or for another.

begin insert 7611.4. end insert   

(a) A “cemetery manager” is a person engaged in or
conducting, or holding himself or herself out as engaged in those
activities involved in, or incidental to, the maintaining, operating,
or improving a cemetery licensed under this chapter, the interring
of human remains, and the care, preservation, and embellishment
of cemetery property.

(b) For persons licensed pursuant to Section 7637.1, a
“cemetery manager” is a person engaged in or conducting, or
holding himself or herself out as engaged in those activities
involved in, or incidental to, the following:

(1) The maintaining, operating, or improving of a cemetery
licensed under this chapter.

(2) The interment of human remains.

(3) The care, preservation, and embellishment of cemetery
property.

(4) Activities described in Section 7637.2.

begin insert 7611.5. end insert   

A “crematory manager” is a person engaged in or
conducting, or holding himself or herself out as engaged in those
activities involved in, or incidental to, the maintaining or operating
a crematory licensed under this chapter, and the cremation of
human remains.

begin insert 7611.6. end insert   

The definitions in Chapter 1 (commencing with Section
7000) of Part 1 of Division 7 of the Health and Safety Code are
applicable to this act.

begin insert 7611.7. end insert   

“Cemetery licensee” means any cemetery broker,
cemetery salesperson, or cemetery manager.

begin insert 7611.8. end insert   

“Crematory licensee” shall mean a corporation,
partnership, or natural person licensed pursuant to Article 6.5
(commencing with Section 7712) and shall mean a cemetery
licensee for purposes of disciplinary action under Article 6
(commencing with Section 7686).

begin insert 7611.9. end insert   

A “cremated remains disposer” is a person who, for
his or her own account or for another, disposes of, or offers to
dispose of, cremated human remains by scattering over or on land
or sea.

begin insert 7611.10. end insert   

“Endowment care” or “endowed care” shall include
both general and special care funds.

begin insert 7612. end insert   

An “occasional sale” is a sale of cemetery property not
acquired or held for purposes of resale or speculation, provided
such sale is not one of a series of sales sufficient in number, scope,
and character to constitute engaging in the business of selling or
reselling or holding for speculation cemetery property.

begin insert 7612.1. end insert   

“Public cemetery” means a cemetery owned and
operated by a city, county, city and county, or public cemetery
district.

begin insert 7612.2. end insert   

This act does not apply to any of the following:

(a) A religious corporation, church, religious society or
denomination, a corporation sole administering temporalities of
any church or religious society or denomination, or any cemetery
organized, controlled, and operated by any of them.

(b) A public cemetery.

(c) Any private or fraternal burial park not exceeding 10 acres
in area, established prior to September 19, 1939; however, (1)  
those cemeteries shall be subject to the cemetery brokerage
provisions of this act, and (2)   any cemetery shall be subject to all
of the provisions of this act if it collects a care, maintenance, or
embellishment deposit or sets up a trust for burial purposes
pursuant to Section 8775 of the Health and Safety Code, including
funeral services such as mortuary, cremation, or other commodities
or services furnished at the time of and in connection with that
funeral or cremation.

begin insert 7612.3. end insert   

The bureau shall disclose on its Internet Web site,
information about each cemetery subject to the jurisdiction of the
bureau. In addition to the information required by Section 27, the
bureau shall disclose the name of the owner of each cemetery, the
name of the cemetery, the business address of the cemetery owner,
and the physical address of the cemetery.

begin insert 7612.4. end insert   

(a) Notwithstanding Section 8115 of the Health and
Safety Code, in order to protect consumers, the bureau shall adopt
regulations that establish minimum standards of maintenance for
endowment care cemeteries under the jurisdiction of the bureau.
The regulations shall consider differences in cemetery size,
location, topography, and type of interments. The regulations shall
also consider the extent to which funds are available from the
cemetery’s endowment care funds to perform maintenance.

(b) The standards established pursuant to this section shall not
supersede any standards of a higher level of care established
pursuant to Section 8115 of the Health and Safety Code.

begin insert 7612.5. end insert   

(a) (1) Any person who holds or has held, or was
named on, any license or registration under the jurisdiction of the
bureau that has been, within the immediately preceding 10 years,
revoked, suspended, placed on probation, or surrendered under
a stipulated decision, and who is employed by, or who seeks
employment with, a licensed cemetery, a licensed crematory, or a
licensed cemetery broker in any capacity, shall inform the licensed
cemetery manager, the licensed crematory manager, or the licensed
cemetery broker of that revocation, suspension, probation, or
surrender.

(2) A person subject to this subdivision shall inform the licensed
cemetery manager, the licensed crematory manager, or the licensed
cemetery broker upon application for employment by completing
a form that shall be made available by the bureau.

(b) The cemetery manager, crematory manager, or cemetery
broker who is informed pursuant to subdivision (a) shall notify
the bureau by submitting the form within 30 days of being so
informed. Failure of the cemetery manager, crematory manager,
or cemetery broker to notify the bureau shall be a cause for a
warning. A cemetery manager, crematory manager, or cemetery
broker shall not be subject to a warning if his or her failure to
notify the bureau is due to a false statement made by an employee.

(c) Any person required to notify the cemetery manager,
crematory manager, or cemetery broker under subdivision (a) who
fails to do so or who makes a false statement on the required form
shall be subject to disciplinary action if that person is a licensee
of the bureau, or that failure or false statement shall be cause for
denial of a license under Section 480.

(d) For purposes of subdivision (a), the term “named on”
applies to a person who was an owner, partner, or corporate
officer of an entity that was licensed or registered under the act
at the time that entity’s license or registration under the act was
revoked, suspended, placed on probation, or surrendered.

begin insert 7612.6. end insert   

(a) Each cemetery authority shall file with the bureau
annually, on or before June 1, or within five months after close of
their fiscal year provided approval has been granted by the bureau
as provided for in Section 7612.7, a written report in a form
prescribed by the bureau setting forth the following:

(1) The number of square feet of grave space and the number
of crypts and niches sold or disposed of under endowment care by
specific periods as set forth in the form prescribed.

(2) The amount collected and deposited in both the general and
special endowment care funds segregated as to the amounts for
crypts, niches, and grave space by specific periods as set forth
either on the accrual or cash basis at the option of the cemetery
authority.

(3) A statement showing separately the total amount of the
general and special endowment care funds invested in each of the
investments authorized by law and the amount of cash on hand
not invested, which statement shall actually show the financial
condition of the funds.

(4) A statement showing separately the location, description,
and character of the investments in which the special endowment
care funds are invested. The statement shall show the valuations
of any securities held in the endowment care fund as valued
pursuant to Section 7614.7.

(5) A statement showing the transactions entered into between
the corporation or any officer, employee, or stockholder thereof
and the trustees of the endowment care funds with respect to those
endowment care funds. The statement shall show the dates,
amounts of the transactions, and shall contain a statement of the
reasons for those transactions.

(b) The report shall be verified by the president or vice president
and one other officer of the cemetery corporation. The information
submitted pursuant to paragraphs (2), (3), (4), and (5) of
subdivision (a) shall be accompanied by an annual audit report
of the endowment care fund and special care fund signed by a
certified public accountant or public accountant. The scope of the
audit shall include the inspection, review, and audit of the general
purpose financial statements of the endowment care fund and
special care fund, which shall include the balance sheet, the
statement of revenues, expenditures, and changes in fund balance.

(c) If a cemetery authority files a written request prior to the
date the report is due, the bureau may, in its discretion, grant an
additional 30 days within which to file the report.

begin insert 7612.7. end insert   

Each cemetery authority requesting a change of filing
date of the endowment care fund report from a calendar year to
a fiscal year or a change in fiscal year shall file a petition with
the bureau prior to the close of the year of request. The bureau
may approve such petition provided that no report shall be for a
period of more than 12 months.

begin insert 7612.8. end insert   

The report shall state the name of the trustee or trustees
of the endowment care fund. Any change of trustee shall be
reported to the bureau within a period of 30 days after the change
is made.

begin insert 7612.9. end insert   

A copy of each annual audit report shall be transmitted
to the bureau and shall be a public record. It shall also be open
for public inspection at the offices of the cemetery authority during
normal business hours. If the cemetery authority does not maintain
offices in the county in which its cemetery is located, it shall file
a copy of the annual audit report with the county clerk of the
county, which shall be subject to public inspection.

begin insert 7612.10. end insert   

(a) Any cemetery authority that does not file its report
within the time prescribed by Section 7612.6 may be assessed a
fine by the bureau in an amount not to exceed four hundred dollars
($400) per month for a maximum of five months. The amount of
the fine shall be established by regulation in accordance with the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). Failure to pay the fine within 15 days after receipt of written
notification of the assessment or, where a timely request for waiver
or reduction of the fine has been filed, within 15 days after receipt
of written notification of the bureau’s decision in the matter, shall
be cause for disciplinary action.

(b) A cemetery authority may request waiver or reduction of a
fine by making a written request therefor. The request shall be
postmarked within the time specified above for payment of the fine
and shall be accompanied by a statement showing good cause for
the request.

(c) The bureau may waive or reduce the fine where a timely
request is made and where it determines, in its discretion, that the
cemetery authority has made a sufficient showing of good cause
for the waiver or reduction.

begin insert 7612.11. end insert   

(a) The bureau shall conduct a study to obtain
information to determine if the endowment care fund levels of each
licensee’s cemetery are sufficient to cover the cost of future
maintenance. The bureau shall also review the levels of endowment
care funds that have previously been reported pursuant to this
chapter by licensed cemeteries.

(b) The bureau shall report its findings and recommendations
to the Senate Committee on Business, Professions and Economic
Development and the Assembly Committee on Business and
Profession by November 1, 2018.

begin insert 7613. end insert   

The bureau shall examine the reports filed with it as to
their compliance with the requirements of the Health and Safety
Code as to the amount of endowment care funds collected and as
to the manner of investment of those funds.

begin insert 7613.1. end insert   

The bureau shall examine the endowment care funds
of a cemetery authority:

(a) Whenever it deems necessary and at least once every five
years.

(b) Whenever the cemetery authority in charge of endowment
care funds fails to file the report required by this article.

(c) Whenever the accountant or auditor qualifies his or her
certification of the report that is prepared and signed by a certified
public accountant licensed in the state and prepared in accordance
with Section 7612.6.

(d) The reasonable and necessary cost of the examination
performed under subdivision (b) or (c) shall be paid by the
cemetery authority.

(e) A certified copy of the actual costs, or a good faith estimate
of the costs where actual costs are not available, signed by the
director or his or her designee, shall be prima facie evidence of
the reasonable and necessary costs of the examination.

(f) The actual and necessary expense of the examination under
subdivision (a) shall, in the discretion of the bureau, be paid by
the cemetery authority whenever the examination requires more
than one day and the need for continuing the examination is
directly related to identified omissions and errors in the
management of endowment care funds.

begin insert 7613.2. end insert   

If any cemetery authority refuses to pay such expenses,
the bureau shall refuse it a certificate of authority and shall revoke
any existing certificate of authority. All examination expense
moneys collected by the bureau shall be paid into the State
Treasury to the credit of the Cemetery and Funeral Fund.

begin insert 7613.3. end insert   

(a) In making the examination, the bureau:

(1) Shall have free access to the books and records relating to
the trust funds, their collection and investment, and the number of
graves, crypts, and niches under endowment care.

(2) Shall inspect and examine the trust funds to determine their
condition and the existence of the investments.

(3) Shall ascertain if the cemetery corporation has complied
with all the laws applicable to trust funds.

(b) Upon request by the bureau, a cemetery authority shall
provide records to substantiate the expenditures of the income of
the trust funds. If a cemetery authority fails to reasonably comply
with this request, the bureau may have access to books, records,
and accounts of a cemetery authority for purposes of ascertaining
compliance with applicable laws.

begin insert 7613.4. end insert   

(a) Subject to subdivision (b), a limited liability
company certificated as a cemetery authority pursuant to Section
7018 of the Health and Safety Code may provide services of
licensed cemetery brokers, cemetery salespersons, cemetery
managers, funeral directors, embalmers, crematorium licensees,
and any other person licensed under this code to provide services
relating to cemeteries and funerals by employing one or more of
these licensed persons.

(b) At the time of certification, and at all times during which a
limited liability company transacts intrastate business as a
cemetery authority, the company shall be required to provide
security for claims against it based upon acts, errors, or omissions
of its licensed employees as described in subdivision (a) by
complying with one, or a combination, of the following:

(1) (A) Maintaining a policy or policies of insurance against
liability imposed on or against it by law for damages arising out
of claims. However, the total aggregate limit of liability under the
policy or policies of insurance for a limited liability company that
employs five or fewer licensed persons shall not be less than one
million dollars ($1,000,000), and for a limited liability company
that employs more than five licensees, an additional one hundred
thousand dollars ($100,000) of insurance shall be obtained for
each additional licensee except that the maximum amount of
insurance is not required to exceed five million dollars
($5,000,000) in any one designated period, less amounts paid in
defending, settling, or discharging claims as set forth in this
paragraph. The policy or policies may be issued on a claims-made
or occurrence basis, and shall cover:

(i) In the case of a claims-made policy, claims initially asserted
in the designated period.

(ii) In the case of an occurrence policy, occurrences during the
designated period.

(B) For purposes of this paragraph, “designated period” means
a policy year or any other designated period in the policy that is
not greater than 12 months.

(C) The impairment or exhaustion of the aggregate limit of
liability by amounts paid under the policy in connection with the
settlement, discharge, or defense of claims applicable to a
designated period shall not require the limited liability company
to acquire additional insurance coverage for that designated
period. The policy or policies of insurance may be in a form
reasonably available in the commercial insurance market and may
be subject to those terms, conditions, exclusions, and endorsements
that are typically contained in those policies. A policy or policies
of insurance maintained pursuant to this paragraph may be subject
to a deductible or self-insured retention.

(D) Upon the dissolution and winding up of the limited liability
company, the company shall, with respect to any insurance policy
or policies then maintained pursuant to this paragraph, maintain
or obtain an extended reporting period endorsement or equivalent
provision in the maximum aggregate limit of liability required to
comply with this paragraph for a minimum of three years if
reasonably available from the insurer.

(2) Maintaining in trust or bank escrow, cash, bank certificates
of deposit, United States Treasury obligations, bank letters of
credit, or bonds of insurance or surety companies as security for
payment of liabilities imposed by law for damages arising out of
all claims. However, the maximum amount of security for a limited
liability company that employs five or fewer licensed persons shall
not be less than one million dollars ($1,000,000), and for a limited
liability company that employs more than five licensees rendering
professional services on behalf of the company, an additional one
hundred thousand dollars ($100,000) of security shall be obtained
for each additional licensee except that the maximum amount of
security is not required to exceed five million dollars ($5,000,000).
The limited liability company remains in compliance with this
section during a calendar year notwithstanding amounts paid
during that calendar year from the accounts, funds, Treasury
obligations, letters of credit, or bonds in defending, settling, or
discharging claims of the type described in this paragraph,
provided that the amount of those accounts, funds, Treasury
obligations, letters of credit, or bonds was at least the amount
specified in the preceding sentence as of the first business day of
that calendar year. Notwithstanding the pendency of other claims
against the limited liability company, it shall be deemed to be in
compliance with this paragraph as to a claim if within 30 days
after the time that a claim is initially asserted through service of
a summons, complaint, or comparable pleading in a judicial or
administrative proceeding, the limited liability company has
provided the required amount of security by designating and
segregating funds in compliance with the requirements of this
paragraph.

(3) Unless the limited liability company has satisfied paragraph
(4), each member of a limited liability company certificated as a
cemetery authority that provides professional services rendered
by employees who are licensed professionals described in
subdivision (a), by virtue of that person’s status as a member,
thereby automatically guarantees payment of the difference
between the maximum amount of security required for the limited
liability company by this subdivision and the security otherwise
provided in accordance with paragraphs (1) and (2), provided
that the aggregate amount paid by all members under these
guarantees shall not exceed the difference. Neither withdrawal by
a member nor the dissolution and winding up of the limited liability
company shall affect the rights or obligations of a member arising
prior to withdrawal or dissolution and winding up, and the
guarantee provided for in this paragraph shall apply only to
conduct that occurred prior to the withdrawal or dissolution and
winding up. Nothing contained in this subdivision shall affect or
impair the rights or obligations of the members among themselves,
or the limited liability company, including, but not limited to, rights
of contribution, subrogation, or indemnification.

(4) Confirming, pursuant to the procedure in subdivision (c) of
Section 16956 of the Corporations Code, that, as of the most
recently completed fiscal year of the limited liability company, it
had a net worth equal to or exceeding ten million dollars
($10,000,000). The limited liability company shall transmit
evidence of this paragraph to the bureau in a form similar to the
form submitted by a limited liability partnership providing
alternative security provisions pursuant to subdivision (c) of
Section 16956 of the Corporations Code.

(c) (1) A limited liability company may aggregate the security
required pursuant to paragraphs (1) to (4), inclusive, of subdivision
(b).

(2) For purposes of compliance with this section, the provisions
of subdivision (d) of Section 16956 of the Corporations Code shall
apply to a limited liability company certificated as a cemetery
authority.

begin insert 7613.5. end insert   

(a) A person licensed under this code as a cemetery
broker, cemetery salesperson, cemetery manager, funeral director,
embalmer, crematorium licensee, or other person licensed to
provide services related to cemeteries and funerals shall not have
any ownership interest as a member in a limited liability company
certificated as a cemetery authority pursuant to Section 7018 of
the Health and Safety Code.

(b) If a limited liability company admits, as a member with
ownership interest, a licensed person described in subdivision (a),
the limited liability company, by operation of law, shall be deemed
in violation of subdivision (e) of Section 17701.04 of the
Corporations Code, and the members shall be treated as partners
with joint and several liability for claims made upon acts, errors,
or omissions arising out of services provided by any licensed
person described in subdivision (a).

(c) If the bureau determines that a licensed cemetery broker,
cemetery salesperson, cemetery manager, funeral director,
embalmer, crematorium licensee, or other person licensed to
provide services related to cemeteries and funerals has an
ownership interest as a member in the limited liability company,
the bureau shall suspend the limited liability company’s certificate
of authority. The bureau shall reinstate the certificate of authority
only upon finding that the licensed cemetery broker, cemetery
salesperson, cemetery manager, funeral director, embalmer,
crematorium licensee, or other person licensed to provide services
related to cemeteries and funerals has been divested of his or her
ownership interest in the limited liability company or has
voluntarily surrendered his or her license.

begin insert 7613.6. end insert   

The bureau may administer oaths and examine under
oath any person relative to the endowment care fund. The
examination shall be conducted in the principal office of the person
or body in charge of the endowment care fund and shall be private.

begin insert 7613.7. end insert   

If any examination made by the bureau, or any report
filed with it, shows that there has not been collected and deposited
in the endowment care funds the minimum amounts required by
the Health and Safety Code since September 19, 1939, the bureau
shall require a cemetery corporation to comply with Sections 8743
and 8744 of the Health and Safety Code.

begin insert 7613.8. end insert   

Whenever the bureau finds, after notice and hearing,
that any endowment care funds have been invested in violation of
the Health and Safety Code, it shall by written order mailed to the
person or body in charge of the fund require the reinvestment of
the funds in conformity to that code within a period which shall
be not less than two years if the investment was made prior to
October 1, 1949, not less than six months if the investment was
made on or after October 1, 1949, and before the effective date of
the amendment of this section by the 1969 Regular Session of the
Legislature, and not less than 30 days if the investment is made
on or after the effective date of the amendment. The period may
be extended by the bureau in its discretion.

begin insert 7613.9. end insert   

The superior court of the county in which the principal
office of the cemetery authority in charge of endowment care funds
is located shall, upon the filing by the bureau of a verified
application showing any of the following conditions hereinafter
enumerated to exist, issue its order vesting title to any endowment
care funds of a cemetery authority in the bureau, and directing
the bureau forthwith to take possession of all necessary books,
records, property, real and personal, and assets, and to conduct
as conservator, the management of such endowment care funds,
or so much thereof as to the bureau may seem appropriate:

(a) That the cemetery authority has refused to submit its books,
papers, accounts, or affairs to the reasonable examination of the
bureau.

(b) That the cemetery authority has neglected to observe an
order of the bureau to make good within the time prescribed by
law any deficiency in its investments of endowment care funds.

(c) That the cemetery authority is found, after an examination,
to be in such condition that its further management of its
endowment care funds will be hazardous to its members,
plotholders, or to the public.

(d) That the cemetery authority has violated its articles of
incorporation or any law of the state.

(e) That any officer, director, agent, servant or employee of the
cemetery authority person refuses to be examined under oath
relative to the endowment care funds thereof.

(f) That any person has embezzled or otherwise wrongfully
diverted any of the endowment care funds of the cemetery authority.

(g) The order shall continue in force and effect until, on the
application either of the bureau or of the cemetery authority, it
shall, after a full hearing, appear to the court that the ground for
the order does not exist or has been removed and that the cemetery
authority can properly resume title and possession of its property
and the management of its endowment care funds.

begin insert 7613.10. end insert   

When it has been alleged by verified petition pursuant
to Section 7613.1 or when the bureau on its own investigation
determines that there is probable cause to believe that any of the
conditions set forth in Section 7613.9 exist or that irreparable loss
and injury to the endowment care funds of a cemetery authority
has occurred or may occur unless the bureau so acts immediately,
the bureau, without notice and before applying to the court for
any order, may take possession of the endowment care funds and
the books, records, and accounts relating thereto of the cemetery
authority, and retain possession subject to the order of the court.
Any person having possession of and refusing to deliver any assets,
books or records of a cemetery authority against which a seizure
order has been issued by the bureau shall be guilty of a
misdemeanor and punishable by a fine not exceeding one thousand
dollars ($1,000) or imprisonment not exceeding one year, or by
both that fine and imprisonment.

begin insert 7614. end insert   

If any city, county, or city and county exercises its
authority to address public health, safety, or welfare issues in
connection with a cemetery within its jurisdiction and if the
certificate of authority of the cemetery has been revoked or
suspended or has not been renewed, and the bureau holds the
endowment care fund of the certificate of authority under
applicable provisions of this code, the costs of any action that
constitutes care, maintenance, or embellishment of the cemetery
within the meaning of Section 8726 of the Health and Safety Code
shall be eligible for reimbursement from available income from
any endowment care fund in existence for the cemetery. For
purposes of this section, local jurisdiction action may be based on
charter, ordinance, or inherent police powers. Any claim for money
or damages for an act or omission by the local jurisdiction acting
in accord with this section shall be subject to all otherwise
applicable immunities contained in Division 3.6 (commencing with
Section 810) of Title 1 of the Government Code.

begin insert 7614.1. end insert   

Whenever the bureau makes any seizure as provided
in Section 7613.10, it shall, on demand of the bureau, be the duty
of the sheriff of any county of this state, and of the police
department of any municipal corporation therein, to furnish the
bureau with deputies, patrolmen or officers as may be necessary
to assist the bureau in making and enforcing that seizure.

begin insert 7614.2. end insert   

Immediately after effecting a seizure pursuant to
Section 7613.10, the bureau shall institute a proceeding as
provided for in Section 7613.9.

begin insert 7614.3. end insert   

Notwithstanding any other law, the bureau shall be
the custodian of all moneys collected or surrendered pursuant to
Sections 7613.9 and 7613.10. As custodian, the bureau may deposit
those moneys, or any part thereof, without court approval, in any
of the following: a bank or trust company legally authorized and
empowered by the state to act as a trustee in the handling of trust
funds; in a centralized State Treasury system bank account; or in
funds administered by the State Treasurer.

begin insert 7614.4. end insert   

The bureau shall maintain, regulate, operate, and
control the property situated in the County of Amador, referred
to as the Elkin Property in Judicial Council Coordination
Proceedings Nos. 1814 and 1817, Order Re Proposed Neptune
Memorial, Disposition of the Elkin Property, and Order Re Final
Disposition of Ashes of the Sacramento Superior Court, and legally
described as “Parcel 16-B as shown on the certain Record or
Survey for Eugene S. Lowrance, et ux, filed for record May 17,
1971, in Book 17 of Maps and Plats at page 87, Amador County
Records”. The bureau shall administer and supervise endowment
funds established by the court for the property. The bureau shall
exercise the authority granted by this section for the sole purpose
of protecting the human remains resting on the property and
preserving the property in its natural state.

begin insert 7614.5. end insert   

The bureau is authorized to bring action to enforce
the provisions of the law subject to its jurisdiction, in which actions
it shall be represented by the Attorney General.

begin insert 7614.6. end insert   

The bureau shall enforce and administer Part 1
(commencing with Section 8100), Part 3 (commencing with Section
8250), and Part 5 (commencing with Section 9501) of Division 8
of the Health and Safety Code.

begin insert 7614.7. end insert   

In any report to the bureau, all bonds, debentures, or
other evidences of debt held by a cemetery corporation if amply
secured and if not in default as to principal or interest may be
valued as follows:

(a) If purchased at par at the par value.

(b) If purchased above or below par on the basis of the purchase
price adjusted so as to bring the value to par at maturity and so
as to yield the effective rate of interest on the basis at which the
purchase was made.

(c) In such valuation, the purchase price shall in no case be
taken at a higher figure than the actual market value at the time
of purchase.

begin insert 7614.8. end insert   

Any security or other evidence of debt if in default as
to principal or interest or if not amply secured shall not be valued
as an asset of the endowment care fund above its market value.

begin insert 7614.9. end insert   

Notwithstanding any other law, every cemetery
authority shall present to the survivor of the deceased who is
handling the burial or cremation arrangements or the responsible
party a copy of any preneed agreement that has been signed and
paid in full, or in part, by or on behalf of the deceased and is in
the possession of the cemetery authority. The copy may be
presented in person, by certified mail, or by facsimile transmission,
as agreed upon by the survivor of the deceased or the responsible
party. A cemetery authority who knowingly fails to present the
preneed agreement to the survivor of the deceased or the
responsible party shall be liable for a civil fine equal to three times
the cost of the preneed agreement, or one thousand dollars
($1,000), whichever is greater.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 7619.2 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

7619.2.  

The bureau shall grant a funeral director’s license to
any applicant who complies with this article, notwithstanding
Section 7619, if the applicant can demonstrate that he or she has
complied with Section 7622 on or before July 1, 1999.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 7620 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

7620.  

The application shall specify the address at which the
applicant proposes to engage in or conduct a place of business as
a funeral director.

end delete

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 7621 of the end insert begin insert Business and Professions Code end insert
begin insert is repealed. end insert

begin delete

7621.  

The applicant shall also furnish the bureau with
satisfactory proof that the facility in which he or she intends to
conduct business as a funeral director is or will be constructed,
equipped and maintained in all respects as a licensed funeral
establishment as defined in this chapter.

end delete

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 7622.2 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7622.2.  

begin delete No person, partnership, association, corporation, or
other organization end delete begin insert A person end insert begin insert end insert shall begin insert not end insert open or maintain a place or
establishment at which to engage in or conduct, or hold himself,
herself, or itself out as engaging in or conducting, the activities of
a funeral director without a license.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Article 2.5 (commencing with Section 7637) is added
to Chapter 12 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 2.5. end insert   Cemetery Brokerage Regulations

 

begin insert 7637. end insert   

This article does not apply to the following cases or to
the following persons:

(a) A person acting with reference to an occasional sale of his
or her own property.

(b) The regular officers of a cemetery corporation holding a
certificate of authority acting with reference to the corporation’s
property when they receive no special compensation therefor.

(c) Persons making an occasional sale under a duly executed
power of attorney from others.

(d) The services rendered by an attorney at law in performing
his or her duties in that capacity.

(e) A receiver, trustee in bankruptcy, any person acting under
orders of any court, or a trustee selling under a deed of trust.

(f) A real estate broker or real estate salesperson, acting in that
capacity in connection with the sale, lease, or exchange of real
property, or interest therein, when the transfer of cemetery property
is purely incidental to the sale, lease, or exchange of real property.

begin insert 7637.1. end insert   

A person shall not engage in the business of, act in the
capacity of, advertise or assume to act as, a cemetery broker or
cemetery salesperson in this state without first obtaining a license
from the bureau.

begin insert 7637.2. end insert   

Any act other than an occasional sale of buying or
selling, leasing, or exchanging cemetery property or interment
services of or for another or on his or her own account, or offering
for another or for his or her own account to buy or sell, lease, or
exchange cemetery property or interment services, or negotiating
the purchase or sale, lease, or exchange of cemetery property or
interment services, or negotiating the purchase or sale, lease, or
exchange, or listing or soliciting, or negotiating a loan on or
leasing of cemetery property or interment services constitutes the
person making such offer, sale or purchase, lease, or exchange,
or negotiating the loan, or listing or soliciting, a cemetery broker
or cemetery salesperson.

begin insert 7637.3. end insert   

A person engaged in the business or acting in the
capacity of a broker or a salesperson within this state shall not
bring or maintain any action in the courts of this state for the
collection of compensation for the performance of any of the acts
mentioned in this article without alleging and proving that he or
she was a duly licensed cemetery broker or cemetery salesperson
at the time the alleged cause of action arose.

begin insert 7637.4. end insert   

(a) A cemetery broker shall not employ or compensate,
directly or indirectly, any person for performing any of the acts
within the scope of this article who is not a licensed cemetery
broker, or a cemetery salesperson licensed under the cemetery
broker employing or compensating him or her. A cemetery
salesperson shall not be employed by or accept compensation from
any person other than the cemetery broker under whom he or she
is at the time licensed.

(b) A salesperson shall not pay any compensation for performing
any of the acts within the scope of this article to any licensee except
through the cemetery broker under whom he or she is at the time
licensed.

(c) For a violation of any of the provisions of this section, the
bureau may temporarily suspend or permanently revoke the license
of the cemetery licensee in accordance with the provisions of this
act relating to disciplinary proceedings.

begin insert 7637.5. end insert   

(a) It is a misdemeanor, punishable by a fine not
exceeding one hundred dollars ($100) for each offense, for any
person, whether obligor, escrowholder, or otherwise, to pay or
deliver to anyone a compensation for performing any of the acts
within the scope of this article who is not known to be or who does
not present evidence to such payer that he or she is a licensed
cemetery broker at the time compensation is earned.

(b) For violation of any of the provisions of this section, the
bureau may temporarily suspend or permanently revoke the license
of the cemetery licensee in accordance with the provisions of this
act relating to disciplinary proceedings.

begin insert 7637.6. end insert   

Any person acting as a cemetery broker or cemetery
salesperson without a license, or who advertises so as to indicate
he or she is a cemetery broker without being so licensed, is guilty
of a misdemeanor. If that person is a corporation, it shall be
punished by a fine of not to exceed five thousand dollars ($5,000).

begin insert 7637.7. end insert   

(a) Any cemetery salesperson or cemetery broker who
sells, causes to be sold, or offers for sale any cemetery property
upon the promise, guarantee, or representation to the purchaser
that the same may be resold or repurchased at a financial profit
is guilty of a misdemeanor.

(b) For violation of any of the provisions of this section, the
bureau may temporarily suspend or permanently revoke the license
of the cemetery salesperson or cemetery broker in accordance
with the provisions of this act relating to disciplinary proceedings.

(c) No violation of any of the provisions of this section by any
cemetery salesperson or employee of any licensed cemetery broker
shall cause the suspension or revocation of the license of the
employer of the salesperson or employee unless it appears upon
a hearing by the bureau that the employer had guilty knowledge
of the violation.

begin insert 7637.8. end insert   

Every officer, agent, or employee of any company, and
every other person who knowingly authorizes, directs, or aids in
the publication, advertisement, distribution, or circularization of
any false statement or representation concerning any cemetery or
cemetery brokerage business and every person who, with
knowledge that any advertisement, pamphlet, prospectus, or letter
concerning any cemetery brokerage business or any written
statement that is false or fraudulent, issues, circulates, publishes,
or distributes the same, or causes it to be issued, circulated,
published, or distributed, or who in any other respect willfully
violates or fails, omits, or neglects to obey, observe, or comply
with any order, permit, decision, demand, or requirement of the
bureau under the provisions of this act relating to cemetery
brokerage, is guilty of a misdemeanor, and, if a cemetery licensee,
he or she shall be held to trial by the bureau for a suspension or
revocation of this cemetery license, as provided in the provisions
of this act relating to disciplinary proceedings.

begin insert 7637.9. end insert   

Each cemetery broker, other than a cemetery
corporation holding a certificate of authority, and each cemetery
salesperson shall include in any advertising a statement that he
or she is acting as a cemetery broker or cemetery salesperson.

begin insert 7637.10. end insert   

For violation of any of the provisions of Section
7637.9, the bureau may temporarily suspend or permanently revoke
the license of the cemetery licensee in accordance with the
provisions of this act relating to disciplinary proceedings.

begin insert 7638. end insert   

Any person, other than a person making an occasional
sale, who advertises cemetery property for sale or exchange,
without being duly licensed as a cemetery broker or a cemetery
salesperson, or without possessing a certificate of authority as a
cemetery corporation, is guilty of a misdemeanor. If such person
is a corporation, it shall be punished by a fine of not to exceed five
thousand dollars ($5,000).

end insert

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Article 3.5 (commencing with Section 7651) is added
to Chapter 12 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 3.5. end insert   Licenses and Certificates of Authority

 

begin insert 7651. end insert   

Application for license as a cemetery broker shall be
made in writing on the form prescribed by the bureau and filed at
the principal office of the bureau. The application shall be
accompanied by the original cemetery broker’s license fee.

begin insert 7651.1. end insert   

The bureau shall not grant an original cemetery
broker’s license to any person who is not a resident of this state.
Change of residence to another state shall terminate the license.

begin insert 7651.2. end insert   

The bureau shall not grant an original cemetery
broker’s license to any person who has not held a cemetery
salesperson’s license for at least two years prior to the date of his
or her application for the broker’s license, and during that time
was not actively engaged in the business of a cemetery salesperson
except that if an applicant for a cemetery broker’s license having
at least the equivalent of two years’ general cemetery experience
files a written petition with the bureau setting forth his or her
qualifications and experience and the bureau approves, he or she
may be issued a cemetery broker’s license immediately upon
passing the appropriate examinations and satisfying the other
requirements of this article.

begin insert 7651.3. end insert   

Application for license as a cemetery salesperson shall
be made in writing on the form prescribed by the bureau and filed
at the principal office of the bureau. The application shall be signed
by the applicant, and shall be accompanied by the cemetery
salesperson’s license fee.

begin insert 7651.4. end insert   

Notwithstanding any other provision of this chapter,
Section 7651.7 does not apply to an applicant for a cemetery
salesperson’s license.

begin insert 7651.5. end insert   

The bureau shall investigate the qualifications of the
applicants. Except as otherwise prescribed in this article, it may
issue the license applied for to an applicant on a showing
satisfactory to it that the following facts exist:

(a) The applicant is properly qualified to perform the duties of
a cemetery broker or salesperson.

(b) Granting the license will not be against public interest.

(c) The applicant intends actively and in good faith to carry on
the business of a cemetery broker or a cemetery salesperson.

(d) In the case of a corporate applicant, the articles of
incorporation permit it to act as a cemetery broker.

(e) In the case of an association or copartnership applying for
such a license, its articles of association or agreement of
partnership authorize it to act as a cemetery broker.

(f) The license is not being secured for the purpose of permitting
the applicant to advertise as a cemetery broker or salesperson
without actually engaging in such business.

(g) The applicant has not committed acts or crimes constituting
grounds for denial of licensure under Section 480.

begin insert 7651.6. end insert   

All cemetery brokers who do not possess a certificate
of authority shall, in addition to the requirements of this chapter,
file with the bureau a satisfactory bond to the people of the State
of California, duly executed by a sufficient surety or sureties to be
approved by the bureau, in the amount of ten thousand dollars
($10,000). That bond shall be conditioned for the honest and
faithful performance by such broker and his or her salespersons
and employees of any undertaking as a licensed cemetery broker
or salesperson or employee of said broker at any time when
licensed under this chapter, and the strict compliance with the
provisions of this chapter and of Division 8 (commencing with
Section 8100) of the Health and Safety Code, relating to cemeteries,
and the honest and faithful application of all funds received. That
bond shall be further conditioned upon the payment of all damages
suffered by any person damaged or defrauded by reason of the
violation of any of the provisions of this chapter or of Division 8
(commencing with Section 8100) of the Health and Safety Code
relating to cemeteries, or by reason of the violation of the
obligation of such broker as an agent, as such obligations are laid
down by the Civil Code, or by reason of any fraud connected with
or growing out of any transactions contemplated by this chapter
or Division 8 (commencing with Section 8100) of the Health and
Safety Code.

begin insert 7651.7. end insert   

The bureau shall ascertain by written examination that
the applicant, and, in case of a copartnership or corporation
applicant for a cemetery broker’s license, that each officer, agent
or member thereof through whom it proposes to act as a cemetery
licensee has:

(a) Appropriate knowledge of the English language, including
reading, writing and spelling, and of elementary arithmetic.

(b) A fair understanding of:

(1) Cemetery associations, cemetery corporations, and duties
of directors.

(2) Plot ownership, deeds, certificates of ownership, contracts
of sale, liens, and leases.

(3) Establishing, dedicating, maintaining, managing, operating,
improving, and conducting a cemetery.

(4) The care, preservation, and embellishment of cemetery
property.

(5) The care and preservation of endowment care funds, trust
funds, and the investment thereof.

(c) A general and fair understanding of the obligations between
principal and agent, of the principles of cemetery brokerage
practice and the business ethics pertaining thereto, as well as of
the provisions of this act relating to cemetery brokerage.

begin insert 7651.8. end insert   

The bureau may, in its discretion, waive the
examination of any applicant for a cemetery broker’s license who
held an unrevoked or unsuspended cemetery license on June 30
of the preceding fiscal year as an individual broker, an officer of
a corporation, or member of a copartnership.

begin insert 7651.9. end insert   

An application on the form prescribed by the bureau
for the renewal of any unrevoked and unsuspended license filed
before midnight of June 30 of the year for which such unrevoked
and unsuspended license was issued, accompanied by the
applicable renewal fee, entitles the applicant to continue operating
under his or her existing license after its usual expiration date, if
not previously suspended or revoked, and until such date as he or
she is notified in writing that the application has been granted or
denied.

begin insert 7651.10. end insert   

A cemetery license does not give authority to do any
act specified in this act to any person other than the person to
whom the license is issued.

begin insert 7652. end insert   

When a cemetery brokerage license is issued to a
cemetery brokerage corporation, if it desires any of its officers
other than the officer through whom it is already licensed to act
under its license as a cemetery broker, it shall procure an
additional license for each such officer. When a cemetery
brokerage license is granted to cemetery brokerage copartnership,
if it desires any of its members other than the one through whom
it is already licensed to act as a cemetery broker, it shall procure
an additional license for each such member.

begin insert 7652.1. end insert   

Each officer of a corporation through whom it is
licensed to act as a cemetery broker, and each member of a
copartnership through whom it is licensed to act as a cemetery
broker, is, while so employed under such license, a licensed
cemetery broker, but licensed only to act as such for and on behalf
of the corporation or the copartnership, as officer or member,
respectively.

begin insert 7652.2. end insert   

The cemetery licenses of both broker and salesperson
shall be prominently displayed in the office of the broker.

The cemetery salesperson’s license shall remain in the possession
of the licensed cemetery broker employer until canceled or until
the salesperson leaves the employ of the broker.

begin insert 7652.3. end insert   

Immediately upon the salesperson’s withdrawal from
the employ of the broker, the broker shall return the salesperson’s
license to the bureau for cancellation. A license canceled but not
suspended or revoked may be reinstated within the fiscal year upon
receipt of application therefor and the fee for the reinstatement of
the license.

begin insert 7652.4. end insert   

(a) Every licensed cemetery broker shall have and
maintain a definite place of business in this state which shall serve
as his or her office for the transaction of business.

(b) No cemetery license authorizes the licensee to do business
except from the location for which the cemetery license was issued.

(c) Notice in writing shall be given the bureau of change of
business location of a cemetery broker, whereupon the bureau
shall issue a new cemetery license for the unexpired period. The
change or abandonment of business location without notification
to the bureau shall automatically cancel the license theretofore
issued.

begin insert 7652.5. end insert   

(a) If the applicant for a cemetery broker’s license
maintains more than one place of business within the state, he or
she shall apply for and procure an additional license for each
branch office so maintained. Every such application shall state
the name of the person and the location of the place of business
for which such license is desired.

(b) The bureau may determine whether or not a broker is doing
a cemetery brokerage business at or from any particular location
which requires him or her to have a branch office license.

begin insert 7652.6. end insert   

Each cemetery broker shall erect and maintain a sign
in a conspicuous place on the premises to indicate that he or she
is a licensed cemetery broker and his or her name shall be clearly
shown thereon. The size and place of the sign shall conform to
regulations that may be adopted by the bureau.

begin insert 7652.7. end insert   

For a violation of any of the provisions of Sections
7652.2, 7652.3, 7652.4, and 7652.6, the bureau may temporarily
suspend or permanently revoke the license of the cemetery licensee
in accordance with the provisions of this act relating to disciplinary
proceedings.

begin insert 7652.8. end insert   

Application for a certificate of authority shall be made
in writing on the form prescribed by the bureau and filed at the
principal office of the bureau. The application shall be
accompanied by the fee provided for in this act and shall show
that the cemetery authority owns or is actively operating a cemetery
in this state which is subject to the provisions of the act or that the
applicant is in a position to commence operating a cemetery.

begin insert 7652.9. end insert   

Each cemetery for which a certificate of authority is
required shall be operated under the supervision of a manager
who is qualified in accordance with the regulations adopted by
the bureau. Each cemetery manager shall be required to
successfully pass a written examination evidencing an
understanding of the applicable provisions of this code and of the
Health and Safety Code. A person shall not engage in the business
of, act in the capacity of, or advertise or assume to act as, a
cemetery manager without first obtaining a license from the
bureau.

begin insert 7652.10. end insert   

The bureau may require such proof as it deems
advisable concerning the compliance by such applicant to all the
laws, rules, regulations, ordinances and orders applicable.

begin insert 7653. end insert   

(a) The bureau shall adopt, and may from time to time
amend, rules and regulations prescribing standards of knowledge
and experience and financial responsibility for applicants for
certificates of authority. In reviewing an application for a
certificate of authority, the bureau may consider acts of
incorporators, officers, directors, and stockholders of the applicant,
which shall constitute grounds for the denial of a certificate of
authority under Division 1.5 (commencing with Section 475).

(b) Upon receipt of an application for a certificate of authority,
the bureau may cause an investigation to be made of the physical
status, plans, specifications and financing of the proposed
cemetery, and any other qualifications required of the applicant
under this act, and for this purpose may subpoena witnesses,
administer oaths, and take testimony.

(c) At the time of the filing of the application required by this
section, the applicant shall pay to the Cemetery and Funeral Fund
the sum fixed by the bureau at not in excess of four hundred dollars
($400) to defray the expenses of investigation. In the event the sum
shall be insufficient to defray all of the expenses, the applicant
shall, within five days after request, deposit an additional sum
sufficient to defray those expenses, provided that the total sum
shall not exceed the sum of nine hundred dollars ($900).

begin insert 7653.1. end insert   

(a) The bureau may, in accordance with its rules and
regulations, authorize interments in cemeteries for which there is
no currently valid certificate of authority outstanding if the bureau
finds that rights to interment therein will otherwise be impaired.
However, nothing in this section authorizes sales of lots, vaults,
or niches by cemeteries for which there is no currently valid
certificate of authority. Interments permitted under this section
shall be conducted by persons authorized by the bureau in
accordance with its regulations, and Section 7731.2 shall not be
applicable to such interments.

(b) The bureau or its representative shall be entitled to inspect
and copy any cemetery records necessary to the performance of
interments under this section, and any person having custody of
those records shall permit inspection and copying thereof for that
purpose. The bureau may apply to the superior court for the county
in which the cemetery is located for an order temporarily
transferring custody of cemetery records to it for purposes of this
section.

begin insert 7653.2. end insert   

The bureau shall inspect the books, records, and
premises of any crematory licensed under this chapter. In making
those inspections, the bureau shall have access to all books and
records, the crematory building, the cremation chambers or
furnaces, and the storage areas for human remains before and
after cremation, during regular office hours or the hours the
crematory is in operation. No prior notification of the inspection
is required to be given to the crematory licensee. If any crematory
licensee fails to allow that inspection or any part thereof, it shall
be grounds for the suspension or revocation of a license or other
disciplinary action against the licensee. All proceedings under
this section shall be conducted in accordance with the provisions
of this chapter relating to disciplinary proceedings.

begin insert 7653.3. end insert   

The bureau shall annually conduct a minimum of one
unannounced inspection of each licensed crematory.

begin insert 7653.4. end insert   

The bureau shall inspect the books, records, and
premises of any cemetery where a certificate of authority is
required under this chapter. In making the inspections, the bureau
shall have access to all books and records, buildings, mausoleums,
columbariums, storage areas, including storage areas for human
remains, during regular office hours or the hours the cemetery is
in operation. No prior notification of the inspection is required to
be given to the holder of the certificate of authority. If any
certificate holder fails to allow the inspection or any part thereof,
disciplinary action including, but not limited to, revocation or
suspension may be taken against the certificate of authority. All
disciplinary proceedings shall be conducted in accordance with
this chapter.

begin insert 7653.5. end insert   

The bureau shall annually conduct a minimum of one
unannounced inspection of each cemetery for which a certificate
of authority is required.

begin insert 7653.6. end insert   

A cemetery licensed under this chapter shall at all
times employ a licensed cemetery manager to manage, supervise,
and direct its operations. Notwithstanding any other provision of
this chapter, licensed cemeteries within close geographical
proximity of each other may request the bureau to allow a licensed
cemetery manager to manage, supervise, and direct the business
or profession of more than one facility.

(a) Every cemetery shall designate a licensed cemetery manager
to manage the cemetery, and shall report the designation to the
bureau within 10 days of the effective date. Any change in the
designated manager shall be reported to the bureau within 10
days.

(b) The designated cemetery manager shall be responsible for
exercising direct supervision and control over the operations,
employees, and agents of the cemetery as is necessary to ensure
full compliance with the applicable provisions of this code, the
Health and Safety Code, and any regulations adopted thereto.
Failure of the designated cemetery manager or the licensed
cemetery to exercise that supervision or control shall constitute a
ground for disciplinary action.

(c) A cemetery may employ, in addition to the designated
cemetery manager, additional licensed cemetery managers.
However, only one licensed cemetery manager may be appointed
as the designated cemetery manager of the cemetery.

begin insert 7653.7. end insert   

(a) Application for a cemetery manager license shall
be made in writing on the form provided by the bureau, verified
by the applicant, and filed at the principal office of the bureau.
The application shall be accompanied by the fee fixed by this
chapter.

(b) The applicant for a cemetery manager license shall be at
least 18 years of age, possess a high school diploma or its
equivalent, shall not have committed acts or crimes constituting
grounds for denial of licensure under Section 480, shall
demonstrate compliance with the training and experience
requirements established by the bureau, and shall be a resident
of this state.

(c) The bureau shall grant a cemetery manager license to any
applicant who meets the requirements of this chapter and who has
successfully passed the cemetery manager examination
administered by the bureau.

begin insert 7653.8. end insert   

(a) A person shall not engage in or conduct, or hold
himself or herself out as engaging in or conducting, the activities
of a cemetery manager without holding a valid, unexpired cemetery
manager license issued by the bureau.

(b) A licensed cemetery manager shall not engage in or conduct,
or hold himself or herself out as engaging in or conducting, the
activities of a cemetery manager without being employed by, or
without being a corporate officer of a licensed cemetery.

begin insert 7653.9. end insert   

(a) Notwithstanding any other law, based upon a
finding by a court of competent jurisdiction that a cemetery
manager of a private cemetery has ceased to perform his or her
duties, as described in subdivision (a) of Section 7611.4, due to a
lapse, suspension, surrender, abandonment, or revocation of his
or her license, the court may appoint a temporary manager to
manage the cemetery property and to service the prepaid
interments of the private cemetery. The court shall appoint a
licensed cemetery manager as the temporary manager.

(b) The appointed temporary manager shall have the same
powers over the care and maintenance of the private cemetery as
a licensed cemetery manager, as described in subdivision (a) of
Section 7611.4. The temporary manager shall serve for a limited
term not to exceed six months, or until a new licensed manager
has been hired, at which time the court shall terminate the
appointment of the temporary manager.

(c) The court may authorize the payment of reasonable
compensation for the temporary manager’s services, which shall
be paid by the trustees from available income from the cemetery.
In exercising its discretion pursuant to this subdivision, the court
shall give due consideration to the ability of the cemetery income
to otherwise pay for care and maintenance of the cemetery.

end insert

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Article 4.5 (commencing with Section 7672) is added
to Chapter 12 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 4.5. end insert   Cremated Remains Disposer

 

begin insert 7672. end insert   

A person shall not dispose of or offer to dispose of any
cremated human remains unless registered as a cremated remains
disposer by the bureau. This article shall not apply to any person,
partnership, or corporation holding a certificate of authority as
a cemetery, crematory license, cemetery broker’s license, cemetery
salesperson’s license, or funeral director’s license, nor shall this
article apply to any person having the right to control the
disposition of the cremated remains of any person or that person’s
designee if the person does not dispose of or offer to dispose of
more than 10 cremated human remains within any calendar year.

begin insert 7672.1. end insert   

(a) Registration shall be on the form prescribed by
the bureau and shall include, but not be limited to, the full name
of the registrant, business and residence addresses, description
and identification of aircraft or boats which may be used in
dispensing cremated human remains, and the area to be served.
Each registration application shall be accompanied by the
cremated remains disposer fee.

(b) Every registered cremated remains disposer who dispenses
human remains by air shall post a copy of his or her current pilot’s
license, and the address of the cremated remains storage area at
his or her place of business. Every registered cremated remains
disposer who dispenses human remains by boat shall post a copy
of his or her current boating license and the address of the
cremated remains storage area at his or her place of business.

begin insert 7672.2. end insert   

The bureau shall prepare and deliver to each registered
cremated remains disposer a booklet that includes, but is not
limited to, the following information: details about the registration
and renewal requirements for cremated remains disposers;
requirements for obtaining state permits to dispose of cremated
human remains; state storage requirements, if any; statutory duties
pursuant to this article, and other applicable state laws.

begin insert 7672.3. end insert   

All aircraft used for the scattering of cremated human
remains shall be validly certified by the Federal Aviation
Administration. All boats or vessels used for the scattering of
cremated human remains shall be registered with the Department
of Motor Vehicles or documented by a federal agency, as
appropriate. The certification or registration shall be available
for inspection by the bureau.

begin insert 7672.4. end insert   

A cremated remains disposer who scatters any
cremated human remains without specific written instructions from
the person having the right to control the disposition of the remains
or who scatters any remains in a manner not in accordance with
those instructions shall be subject to disciplinary action.

begin insert 7672.5. end insert   

Each cremated remains disposer shall provide the
person with the right to control the disposition of the remains
under Section 7100 of the Health and Safety Code with a copy of
the completed permit for disposition of human remains pursuant
to Chapter 8 (commencing with Section 103050) of Part 1 of
Division 102 of the Health and Safety Code within 30 days of the
date of the scattering.

begin insert 7672.6. end insert   

(a) Every cremated remains disposer shall do both of
the following:

(1) Dispose of cremated remains within 60 days of the receipt
of those remains, unless a written signed reason for a delay is
presented to the person with the right to control the disposition of
the remains under Section 7100 of the Health and Safety Code.

(2) Provide the bureau with the address and telephone number
of any storage facility being used by the registrant to store
cremated remains. Cremated remains shall be stored in a place
free from exposure to the elements, and shall be responsibly
maintained until disposal. The bureau and its representatives shall
conduct, on an annual basis, random inspections of the operations
of 5 to 10 percent of the registered cremated remains disposers,
and is authorized to inspect any place used by a cremated remains
disposer for the storage of cremated remains without notice to the
cremated remains disposer.

(b) A violation of the requirements of this section is grounds
for disciplinary action.

begin insert 7672.7. end insert   

(a) Each cremated remains disposer shall file, and
thereafter maintain an updated copy of, an annual report on a
form prescribed by the bureau. The report shall include, but not
be limited to, the names of the deceased persons whose cremated
remains were disposed of, the dates of receipt of the cremated
remains, the names and addresses of the persons who authorized
disposal of those remains, the dates and locations of disposal of
those remains, and the means and manner of disposition. The
report shall cover the fiscal year ending on June 30 and shall be
filed with the bureau no later than September 30 of each year.

(b) Any cremated remains disposer that makes a willful and
material false statement regarding the disposal of cremated
remains in the annual report filed or updated pursuant to
subdivision (a) shall be subject to disciplinary action.

(c) Any cremated remains disposer that makes a willful and
material false statement in the annual report filed or updated
pursuant to subdivision (a) shall be guilty of a misdemeanor.

begin insert 7672.8. end insert   

All cremated remains disposer registrations shall
expire at 12 midnight on September 30 of each year. A person
desiring to renew his or her registration shall file an application
for renewal on a form prescribed by the bureau accompanied by
the required fee. A registration that has expired may be renewed
within five years of its expiration upon payment of all accrued and
unpaid renewal fees. The bureau shall not renew the registration
of any person who has not filed the required annual report until
he or she has filed a complete annual report with the department.

begin insert 7672.9. end insert   

If a person fails to apply for renewal of his or her
cremated remains disposer registration prior to midnight of
September 30 of the year for which the registration was issued,
no renewal shall be issued except upon payment of the delinquent
renewal fee required under Section 7729.2.

begin insert 7672.10. end insert   

Any person who scatters cremated human remains
without a valid registration and who is not otherwise exempt from
this article shall be guilty of a misdemeanor. The remains of each
person scattered shall constitute a separate violation.

begin insert 7673. end insert   

Any person who scatters any cremated human remains
without specific written instructions from the person having the
right to control the disposition of the remains or who scatters any
remains in a manner not in accordance with those instructions
shall be guilty of a misdemeanor.

begin insert 7673.1. end insert   

Any cremated remains disposer who stores cremated
remains in a reckless manner that results in either of the following
is guilty of a public offense punishable by imprisonment in a county
jail not exceeding one year or by a fine not to exceed five thousand
dollars ($5,000), or by both that fine and imprisonment:

(a) Loss of all or part of the cremated remains.

(b) Inability to individually identify the cremated remains.

begin insert 7673.2. end insert   

A cremated remains disposer shall be subject to and
shall be disciplined by the bureau in accordance with Article 6
(commencing with Section 7686). Any violation of this article shall
also be grounds for disciplinary action.

end insert

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 7685.3 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7685.3.  

The current address, telephone number, and name of
the Department of Consumer Affairs, Cemetery and Funeral Bureau
shall appear on the first page of any contract for goods and services
offered by a begin delete funeral director. end delete begin insert licensee. end insert At a minimum, the
information shall be in 8-point boldface type and make this
statement:

begin insert end insert

“FOR MORE INFORMATION ON FUNERAL, CEMETERY,
AND CREMATION MATTERS, CONTACT: DEPARTMENT
OF CONSUMER AFFAIRS, CEMETERY AND FUNERAL
BUREAU (ADDRESS), (TELEPHONE NUMBER).”

begin insert end insert

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 7685.5 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7685.5.  

(a) The bureau shall make available to funeral
establishments and cemetery authorities a copy of a consumer
guide for funeral and cemetery purchases for purposes of
reproduction and distribution. The funeral and cemetery guide that
is approved by the bureau, in consultation with the funeral and
cemetery industries and any other interested parties, shall be made
available in printed form and electronically through the Internet.

(b) A begin delete funeral establishment end delete begin insert licensee end insert shall prominently display
and make available to any individual who, in person, inquires about
funeral or cemetery purchases, a copy of the consumer guide for
funeral and cemetery purchases, reproduced as specified in
subdivision (a).

(c) Prior to the drafting of a contract for begin delete funeral end delete services, the
begin delete funeral establishment end delete begin insert licensee end insert shall provide, for retention, the
consumer with a copy of the consumer guide for funeral and
cemetery purchases described in subdivisions (a) and (b).

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 7700.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7700.1. end insert   

Unprofessional conduct by any licensee or registrant
or by any agent or employee of a licensee or registrant constitutes
grounds for disciplinary action. Unprofessional conduct includes,
but is not limited to, the following:

(a) Violating or attempting to violate, directly or indirectly, or
assisting in or abetting the violation of this chapter and any
regulation adopted thereunder, or of any federal or state law or
regulation governing the disposition of human remains, operation
of cemeteries or crematories, the sale of cemetery property, or the
sale of crematory services or commodities.

(b) Negligence in performing any act related to the operation
of a cemetery or crematory.

end insert

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 7711.2 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.2. end insert   

The bureau may, upon its own motion, and shall, upon
the verified complaint in writing of any person, investigate the
actions of any person engaged in the business or acting in the
capacity of a cemetery licensee, and may temporarily suspend or
permanently revoke a license at any time where the licensee, within
the immediately preceding three years, while a cemetery licensee
in performing or attempting to perform any of the acts specified
in this act, has been guilty of any of the following:

(a) Making any substantial misrepresentation.

(b) Making any false statement of a character likely to influence
or persuade.

(c) A continued and flagrant course of misrepresentation or
making of false promises through cemetery agents or salespersons.

(d) Acting for more than one party in a transaction without the
knowledge or consent of all parties thereto.

(e) Commingling the money or other property of his or her
principal with his or her own.

(f) The practice of claiming or demanding a fee, compensation
or commission under any exclusive agreement authorizing or
employing a licensee to sell, buy, or exchange cemetery property
for compensation or commission where such agreement does not
contain a definite, specified date of final and complete termination.

(g) The claiming or taking by a licensee of any secret or
undisclosed amount of compensation, commission, or profit or the
failure of a licensee to reveal to the employer of such licensee the
full amount of such licensee’s compensation, commission, or profit
under any agreement authorizing or employing such licensee to
sell, buy, or exchange cemetery property for compensation or
commission prior to or coincident with the signing of such
agreement evidencing the meeting of the minds of the contracting
parties, regardless of the form of such agreement, whether
evidenced by documents in an escrow or by any other or different
procedure.

(h) The use by a licensee of any provision allowing the licensee
an option to purchase in an agreement authorizing or employing
such licensee to sell, buy, or exchange cemetery property for
compensation or commission, except when such licensee prior to
or coincident with election to exercise such option to purchase
reveals in writing to the employer the full amount of licensee’s
profit and obtains the written consent of the employer approving
the amount of such profit.

(i) Any other conduct, whether of the same or a different
character than specified in this section, which constitutes fraud
or dishonest dealing.

(j) The misrepresentations and false statements mentioned in
this section include also misrepresentation and false statements
as to other property than that which the cemetery licensee may be
selling or attempting to sell.

end insert

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 7711.3 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.3. end insert   

The bureau may suspend or revoke the license of any
cemetery licensee who, within the immediately preceding three
years, has done any of the following:

(a) Been convicted of a crime substantially related to the
qualifications, functions, and duties of such licensee. The record
of conviction, or a certified copy thereof, shall be conclusive
evidence of such conviction.

(b) Knowingly authorized, directed, connived at or aided in the
publication, advertisement, distribution, or circulation of any
material false statement or representation concerning his or her
business or any cemetery property offered for sale.

(c) Willfully disregarded or violated any of the provisions of
this act relating to cemetery brokerage.

(d) Acted or conducted himself or herself in a manner which
would have warranted the denial of his or her application for a
cemetery license, or for a renewal thereof.

end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 7711.4 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.4. end insert   

When any salesperson is discharged by his or her
employer for a violation of any of the provisions of this article
prescribing a ground for disciplinary action, a verified written
statement of the facts with reference thereto shall be filed forthwith
with the bureau by the employer and, if the employer fails to notify
the bureau as required by this section, the bureau may temporarily
suspend or permanently revoke the cemetery license of the
employer in accordance with the provisions of this act.

end insert

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 7711.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.5. end insert   

The bureau may deny, suspend, or revoke the cemetery
license of a corporation as to any officer or agent acting under its
cemetery license, and the cemetery license of a copartnership as
to any member acting under its cemetery license, without revoking
the cemetery license of the corporation or of the copartnership.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 7711.6 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.6. end insert   

The fees for cemetery licenses at all periods of the
fiscal year is the same as provided in this article. All cemetery
license fees are payable in advance of issuing the licenses and at
the time of filing the application. All licenses shall be issued for
the fiscal year and shall expire on June 30 of each fiscal year at
midnight.

end insert

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 7711.7 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.7. end insert   

(a) If a person fails to apply for a license renewal, no
renewal license shall be issued except upon payment of the
delinquent renewal fee required under Section 7729.2.

(b) A person who fails to renew his or her license within one
year of the expiration date shall not engage in any of the activities
authorized by a license unless he or she first files the application
required for an original license, pays the original license fee, and
otherwise complies with all of the provisions of this act pertaining
to the issuance of an original license.

end insert

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 7711.8 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.8. end insert   

The definitions contained in this article are solely for
the purposes of this article.

end insert

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 7711.9 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.9. end insert   

An original cemetery broker’s license is a cemetery
license issued to a person who did not have a cemetery broker’s
license on June 30 of the fiscal year previous to the fiscal year for
which the license is issued.

end insert

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 7711.10 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.10. end insert   

A renewal cemetery broker’s license is a cemetery
license issued to a person who had a cemetery broker’s license
unrevoked and unsuspended on June 30 of the fiscal year previous
to the fiscal year for which the renewal cemetery license is issued.

end insert

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 7711.11 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.11. end insert   

An original cemetery salesperson’s license is a
cemetery license issued to a person who did not have a cemetery
salesperson’s or a broker’s license either individually or as an
officer of a corporation, or as a member of a copartnership, on
June 30 of the fiscal year previous to the fiscal year for which the
salesperson’s license is issued.

end insert

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 7711.12 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7711.12. end insert   

A renewal cemetery salesperson’s license is a
cemetery license issued to a person who had a cemetery
salesperson’s or a broker’s license either individually or as an
officer of a corporation, or as a member of a copartnership, on
June 30 of the fiscal year previous to the fiscal year for which the
salesperson’s license is issued.

end insert

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Article 6.5 (commencing with Section 7712) is added
to Chapter 12 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 6.5. end insert   Crematories

 

begin insert 7712. end insert   

A crematory established, operated, or maintained, may
be operated by a corporation, partnership, or natural person,
provided that a valid crematory license shall have been issued by
the bureau.

begin insert 7712.1. end insert   

Any change in the ownership of a crematory shall be
reported to the bureau. Any transfer in a single transaction or a
related series of transactions of more than 50 percent of the
equitable interest in a licensed crematory shall constitute a change
of ownership. When a change of ownership in a crematory occurs,
the existing crematory license shall lapse and the new owner shall
obtain a new license from the bureau as otherwise provided in this
act. The bureau shall not require an applicant under this section
to obtain any new permit or license from any other governmental
agency when the existing permit or license is valid.

begin insert 7712.2. end insert   

Application for a crematory license shall be made in
writing on the form prescribed by the bureau and filed at the
principal office of the bureau. The application shall be
accompanied by the fee provided for in this article and shall show
that the applicant owns or is actively operating a crematory in
this state or that the applicant is in a position to commence
operating such a crematory.

begin insert 7712.3. end insert   

The provisions of Article 5 (commencing with Section
8341) of Chapter 2 of Part 3 of Division 8 of the Health and Safety
Code shall apply to crematories licensed under this chapter.

begin insert 7712.4. end insert   

The bureau may require such proof as it deems
advisable concerning the compliance by such applicant with all
the laws, rules, regulations, ordinances, and orders applicable to
the applicant and shall not issue such crematory license until it
has satisfied itself that the public interest will be served by such
applicant.

begin insert 7712.5. end insert   

(a) The bureau shall adopt, and may from time to time
amend, rules and regulations prescribing standards of knowledge
and experience and financial responsibility for applicants for a
crematory license. In reviewing an application for a crematory
license, the bureau may consider acts of the applicant, including
acts of incorporators, officers, directors, and stockholders of the
applicant, which shall constitute grounds for the denial of a
crematory license under Division 1.5 (commencing with Section
475).

(b) Upon receipt of an application for a crematory license, the
bureau may cause an investigation to be made of the physical
status, plans, specifications, and financing of the proposed
crematory, the character of the applicant, including, if applicable,
its officers, directors, shareholders, or members, and any other
qualifications required of the applicant under this article, and for
this purpose may subpoena witnesses, administer oaths, and take
testimony.

(c)  At the time of the filing of the application required by this
article, the applicant shall pay to the Cemetery and Funeral Fund
the sum fixed by the bureau at not in excess of four hundred dollars
($400) to defray the expenses of investigation. In the event the sum
shall be insufficient to defray all of the expenses, the applicant
shall, within five days after request therefor, deposit an additional
sum sufficient to defray such expenses, provided that the total sum
shall not exceed the sum of nine hundred dollars ($900).

begin insert 7712.6. end insert   

A crematory licensee under this article shall not
conduct any cremations:

(a) Unless the licensee has a written contract with the person
or persons entitled to custody of the remains clearly stating the
location, manner, and time of disposition to be made of the
remains, agreeing to pay the regular fees of the licensee for
cremation, disposition, and other services rendered, and any other
contractual provisions as may be required by the bureau.

(b) Of any remains more than 24 hours after delivery of the
remains, unless the remains have been preserved in the interim by
refrigeration or embalming.

(c) Unless the licensee has a contractual relationship with a
licensed cemetery authority for final disposition of cremated human
remains by burial, entombment, or inurnment of any and all
remains which are not lawfully disposed of or which are not called
for or accepted by the person or persons entitled to the custody
and control of the disposition thereof within 90 days of the date
of death.

begin insert 7712.7. end insert   

Every crematory licensee, who prohibits relatives or
the responsible party from viewing the cremation process, shall
disclose this fact in writing to the person or persons entitled to
custody of the remains prior to the signing of any contract.

begin insert 7712.8. end insert   

Each crematory licensee shall keep such records as
may be required by the bureau to assure compliance with all laws
relating to the disposition of cremated human remains and shall
file annually with the bureau, a report in the form prescribed by
the bureau, describing the operations of the licensee, including
the number of cremations made, the disposition thereof, and any
other information as the bureau may, from time to time, require.

begin insert 7712.9. end insert   

Every crematory licensee operating a crematory
pursuant to a license issued in compliance with this article shall
pay an annual regulatory charge for each crematory, to be fixed
by the bureau at not more than four hundred dollars ($400). In
addition to an annual regulatory charge for each crematory, every
licensee operating a crematory pursuant to a license issued
pursuant to this article shall pay an additional charge to be fixed
by the bureau at not more than eight dollars and fifty cents ($8.50)
per cremation made during the preceding quarter, which charges
shall be deposited in the Cemetery and Funeral Fund.

begin insert 7712.10. end insert   

(a) Each crematory for which a crematory license
is required shall be operated under the supervision of a manager
qualified in accordance with rules adopted by the bureau. Each
manager shall be required to successfully pass a written
examination evidencing an understanding of the applicable
provisions of this code and of the Health and Safety Code.

(b) A person shall not engage in the business of, act in the
capacity of, or advertise or assume to act as, a crematory manager
without first obtaining a license from the bureau.

begin insert 7713. end insert   

A crematory shall at all times employ a licensed
crematory manager to manage, supervise, and direct its operations.

(a) Every crematory shall designate a licensed crematory
manager to manage the crematory, and shall report the designation
to the bureau within 10 days of the effective date. Any change in
the designated manager shall be reported to the bureau within 10
days.

(b) The designated crematory manager shall be responsible for
exercising direct supervision and control over the operations,
employees, and agents of the crematory as is necessary to ensure
full compliance with the applicable provisions of this code, the
Health and Safety Code, and any regulations adopted thereto.
Failure of the designated crematory manager or the licensed
crematory to exercise that supervision or control shall constitute
a ground for disciplinary action.

(c) A crematory may employ, in addition to the designated
crematory manager, additional licensed crematory managers.
However, only one licensed crematory manager may be appointed
as the designated crematory manager of the crematory.

begin insert 7713.1. end insert   

(a) Application for a crematory manager license shall
be made in writing on the form provided by the bureau, verified
by the applicant and filed at the principal office of the bureau. The
application shall be accompanied by the fee fixed by this chapter.

(b) The applicant for a crematory manager license shall be at
least 18 years of age, possess a high school diploma or its
equivalent, shall not have committed acts or crimes constituting
grounds for denial of licensure under Section 480, shall
demonstrate compliance with the training and experience
requirements established by the bureau, and shall be a resident
of this state.

(c) The bureau shall grant a crematory manager license to any
applicant who meets the requirements of this chapter and who has
successfully passed the crematory manager examination
administered by the bureau.

begin insert 7713.2. end insert   

(a) A person shall not engage in or conduct, or hold
himself or herself out as engaging in or conducting, the activities
of a crematory manager without holding a valid, unexpired
crematory manager license issued by the bureau.

(b) A licensed crematory manager shall not engage in or
conduct, or hold himself or herself out as engaging in or
conducting, the activities of a crematory manager without being
employed by, or without being a sole proprietor, partner, or
corporate officer of, a licensed crematory.

begin insert 7713.3. end insert   

It is a misdemeanor for any person, firm, or
corporation to cremate human remains or to engage in the
disposition thereof without a valid, unexpired crematory license.
Each cremation shall be a separate violation.

begin insert 7713.4. end insert   

A crematory licensee shall be subject to and shall be
disciplined by the bureau in accordance with Article 6
(commencing with Section 7686).

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 7725.2 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7725.2.  

Except as otherwise provided in this begin delete article, end delete begin insert chapter, end insert
a license that has expired may be renewed at any time within five
years after its expiration on filing of an application for renewal on
a form prescribed by the bureau and payment of all accrued and
unpaid renewal fees. If the license is not renewed within 30 days
after its expiration the licensee, as a condition precedent to renewal,
shall also pay the delinquency fee prescribed by this chapter.
Renewal under this section shall be effective on the date on which
the application is filed, on the date on which all renewal fees are
paid, or on the date on which the delinquency fee, if any, is paid,
whichever last occurs. If so renewed, the license shall continue in
effect through the date provided in Section 7725 that next occurs
after the effective date of the renewal, when it shall expire if it is
not again renewed.

If a license is not renewed within one year following its
expiration, the bureau may require as a condition of renewal that
the holder of the license pass an examination on the appropriate
subjects provided by this chapter.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 7727 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7727.  

On or before the 10th day of each month, the department
shall pay into the State Treasury and report to the State Controller
all the fees received for the bureau. The fees shall be received by
the State Treasurer and placed in the begin delete State end delete begin delete Funeral end delete begin delete Directors and
Embalmers end delete begin insert Cemetery and Funeral end insert Fund, which fund is available
for expenditures necessary for the proper administration of this
chapter.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 7729.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.1. end insert   

The amount of fees prescribed for a license or
certificate of authority under this act is that fixed by the following
provisions of this article. Any license or certificate of authority
provided under this act that has expired may be renewed within
five years of its expiration upon payment of all accrued and unpaid
renewal and regulatory fees.

end insert

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 7729.2 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.2. end insert   

The delinquent renewal fee for a license, registration,
or certificate of authority under this chapter shall be 150 percent
of the timely fee, but not less than the renewal fee plus twenty-five
dollars ($25).

end insert

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Section 7729.3 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.3. end insert   

The original cemetery broker’s license fee shall be
fixed by the bureau at not more than four hundred dollars ($400).

end insert

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 7729.4 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.4. end insert   

(a) The original cemetery broker’s license fee is
payable at the time of the filing of an application for an original
cemetery broker’s license.

(b) If the applicant fails the required written examination, he
or she may be permitted to take another examination upon the
filing of an application for reexamination and the payment of a
reexamination fee. This reexamination fee shall be fixed by the
bureau at not more than one hundred dollars ($100).

(c) No part of any original cemetery broker’s license fee or
reexamination fee is refundable. It is deemed earned upon receipt
by the bureau, whether the accompanying application for a license
is complete or incomplete.

end insert

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 7729.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.5. end insert   

The annual renewal fee for a cemetery broker’s license
shall be fixed by the bureau at not more than three hundred dollars
($300).

end insert

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 7729.6 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.6. end insert   

If the licensee is a cemetery brokerage corporation,
the license issued to it entitles one officer only, on behalf of the
corporation, to engage in the business of a cemetery broker without
the payment of a further fee, that officer to be designated in the
application of the corporation for a license. For each other officer
of a licensed cemetery brokerage corporation, through whom it
engages in the business of a cemetery broker, the annual renewal
fee, in addition to the fee paid by the corporation, shall be fixed
by the bureau at not more than one hundred dollars ($100).

end insert

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 7729.7 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.7. end insert   

If the licensee is a cemetery brokerage copartnership,
the license issued to it entitles one member only of the
copartnership to engage on behalf of the copartnership in the
business of a cemetery broker, which member shall be designated
in the application of the copartnership for a license. For each
other member of the copartnership who on behalf of the
copartnership engages in the business of a cemetery broker, the
annual renewal fee, in addition to the fee paid by the copartnership,
shall be fixed by the bureau at not more than one hundred dollars
($100).

end insert

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 7729.8 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.8. end insert   

The cemetery salesperson’s license fee shall be fixed
by the bureau at not more than thirty dollars ($30).

end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 7729.9 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.9. end insert   

A cemetery salesperson’s license fee is payable on
each filing of an application for a cemetery salesperson’s license.

end insert

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 7729.10 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7729.10. end insert   

The annual renewal fee for a cemetery salesperson’s
license shall be fixed by the bureau at not more than twenty-five
dollars ($25).

end insert

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 7730 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 7730. end insert   

For a branch office broker’s license, the fee shall be
fixed by the bureau at not more than one hundred dollars ($100).

end insert

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 7730.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.1. end insert   

The cremated remains disposer registration fee shall
be one hundred dollars ($100).

end insert

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 7730.2 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.2. end insert   

The renewal fee for a cremated remains disposer
registration shall be fifty dollars ($50).

end insert

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 7730.3 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.3. end insert   

For change of name or of address of licensee on the
records of the bureau, the fee shall be fixed by the bureau at not
more than twenty-five dollars ($25).

end insert

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 7730.4 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.4. end insert   

For transfer of a salesperson’s license on change of
employer, the fee shall be fixed by the bureau at not more than
twenty-five dollars ($25).

end insert

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 7730.5 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.5. end insert   

For a duplicate license the fee shall be fixed by the
bureau at not more than twenty-five dollars ($25).

end insert

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 7730.6 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.6. end insert   

(a) For reinstatement of a license within the fiscal
year, the fee shall be fixed by the bureau at not more than
twenty-five dollars ($25).

(b) As used in this section, “reinstatement of a license” means
the reissuance of a canceled cemetery broker’s license, or a
cemetery salesperson’s license which was canceled during the
year for which it was issued upon the salesperson’s withdrawal
from the employ of a cemetery broker.

end insert

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 7730.7 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.7. end insert   

(a) The fee for a crematory manager examination and
reexamination may not exceed five hundred dollars ($500).

(b) The license fee to obtain a crematory manager license may
not exceed one hundred dollars ($100).

(c) The renewal fee for a crematory manager license may not
exceed one hundred dollars ($100).

end insert

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 7730.8 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.8. end insert   

(a) The fee for a cemetery manager examination and
reexamination may not exceed nine hundred dollars ($900).

(b) The license fee to obtain a cemetery manager license may
not exceed one hundred dollars ($100).

(c) The renewal fee for a cemetery manager license may not
exceed one hundred dollars ($100).

end insert

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 7730.9 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.9. end insert   

The fee for filing a report of a change of designated
manager or a request for approval to share a designated cemetery
manager shall not exceed fifty dollars ($50).

end insert

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 7730.10 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7730.10. end insert   

Every cemetery authority operating a cemetery shall
pay an annual regulatory charge for each cemetery to be fixed by
the bureau at not more than four hundred dollars ($400). In
addition to an annual regulatory charge for each cemetery, an
additional quarterly charge to be fixed by the bureau at not more
than eight dollars and fifty cents ($8.50) for each burial,
entombment, or inurnment made during the preceding quarter
shall be paid to the bureau and these charges shall be deposited
in the Cemetery and Funeral Fund. If the cemetery authority
performs a burial, entombment, or inurnment, and the cremation
was performed at a crematory located on the grounds of the
cemetery and under common ownership with the cemetery
authority, the total of all additional charges shall be not more than
eight dollars and fifty cents ($8.50).

end insert

begin insert

begin insert SEC. 57. end insert   

end insert

begin insert Section 7731 is added to the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

begin insert 7731. end insert   

Upon payment of the charges set forth, the bureau shall
issue a renewal of the certificate of authority to the cemetery
authority.

end insert

begin insert

begin insert SEC. 58. end insert   

end insert

begin insert Section 7731.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7731.1. end insert   

Failure to pay the charges set forth by Section 7730.10
prior to February 1 for each year shall be cause for suspension
of the certificate of authority. The certificate may be restored upon
payment to the bureau of the prescribed charges.

end insert

begin insert

begin insert SEC. 59. end insert   

end insert

begin insert Section 7731.2 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7731.2. end insert   

It is a misdemeanor for any cemetery corporation to
make any interments without a valid certificate of authority. Each
interment shall be a separate violation.

end insert

begin insert

begin insert SEC. 60. end insert   

end insert

begin insert Section 7731.3 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7731.3. end insert   

All moneys received by the bureau under the provisions
of this chapter shall be accounted for and reported by detailed
statements furnished by the bureau to the Controller at least once
a month, and at the same time these moneys shall be remitted to
the Treasurer, and, upon order of the Controller, shall be deposited
in the Cemetery and Funeral Fund in the State Treasury, which
fund is hereby created.

end insert

begin insert

begin insert SEC. 61. end insert   

end insert

begin insert Section 7731.4 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7731.4. end insert   

All money paid into the State Treasury and credited
to the Cemetery and Funeral Fund shall be expended in accordance
with law for the payment of all actual and necessary expenses
incurred in carrying out the provisions of this act.

end insert

begin insert

begin insert SEC. 62. end insert   

end insert

begin insert Chapter 19 (commencing with Section 9600) of
Division 3 of the end insert begin insert Business and Professions Code end insert begin insert is repealed. end insert

begin insert

begin insert SEC. 63. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert

begin delete

SECTION 1.  

Section 9613 of the Business and Professions
Code is amended to read:

9613.  

(a)  The bureau shall conduct a study to obtain
information to determine if the endowment care fund levels of
each licensee’s cemetery are sufficient to cover the cost of future
operation. The bureau shall also review the levels of endowment
care funds that have previously been reported pursuant to this
chapter by licensed cemeteries.

(b) The bureau shall report its findings and recommendations
to the Senate Committee on Business, Professions and Economic
Development and the Assembly Committee on Business and
Professions by November 1, 2018.

(c) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed.

SEC. 2.  

Section 9625 of the Business and Professions Code is
amended to read:

9625.  

(a) There is in the department, the Cemetery and Funeral
Bureau, under the supervision and control of the director.

(b) The director may appoint a chief at a salary to be fixed and
determined by the director, with the approval of the Director of
Finance. The duty of enforcing and administering this chapter is
vested in the chief, and he or she is responsible to the director
therefor. The chief shall serve at the pleasure of the director.

(c) Notwithstanding any other law, the powers and duties of the
bureau, as set forth in this chapter, shall be subject to review by
the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
on January 1, 2020.

end delete