Amended in Senate September 4, 2015

Amended in Senate August 27, 2015

Amended in Senate June 29, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 180


Introduced by Assembly Member Bonilla

(Principal coauthor: Senator Hill)

January 26, 2015


An act to amend Sections 7600, 7602, 7607, 7609, 7622.2, 7685.3, 7685.5, and 7725.2 of, to amend the heading of Chapter 12 (commencing with Section 7600) of Division 3 of, to amend, repeal, and add Sections 205, 7608, and 7727 of, to add Sections 7610.1, 7711.1, 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, 7731, 7731.1, and 7731.2 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 add and repeal Sections 7730.10, 7731.3, and 7731.4 of, to repeal Sections 7619.2, 7620, and 7621 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.

LEGISLATIVE COUNSEL’S DIGEST

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

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.

This bill would consolidate the Funeral Directors and Embalmers Law and the Cemetery Act into the Cemetery and Funeral Bureau Act. The bill, beginning July 1, 2016, would 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 January 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.

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

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.

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

begin insert

This bill would incorporate additional changes in Section 205 of the Business and Professions Code, proposed by AB 177 and AB 179 that would become operative only if this bill and either or both of those bills are chaptered and become effective January 1, 2016, and this bill is chaptered last.

end insert

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

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

P3    1

SECTION 1.  

Section 205 of the Business and Professions Code
2 is amended to read:

3

205.  

(a) There is in the State Treasury the Professions and
4Vocations Fund. The fund shall consist of the following special
5funds:

6(1) Accountancy Fund.

7(2) California Architects Board Fund.

8(3) Athletic Commission Fund.

9(4) Barbering and Cosmetology Contingent Fund.

10(5) Cemetery Fund.

11(6) Contractors’ License Fund.

12(7) State Dentistry Fund.

13(8) State Funeral Directors and Embalmers Fund.

14(9) Guide Dogs for the Blind Fund.

15(10) Home Furnishings and Thermal Insulation Fund.

16(11) California Architects Board-Landscape Architects Fund.

17(12) Contingent Fund of the Medical Board of California.

18(13) Optometry Fund.

19(14) Pharmacy Board Contingent Fund.

20(15) Physical Therapy Fund.

21(16) Private Investigator Fund.

22(17) Professional Engineer’s and Land Surveyor’s Fund.

23(18) Consumer Affairs Fund.

24(19) Behavioral Sciences Fund.

25(20) Licensed Midwifery Fund.

P4    1(21) Court Reporters’ Fund.

2(22) Veterinary Medical Board Contingent Fund.

3(23) Vocational Nurses Account of the Vocational Nursing and
4Psychiatric Technicians Fund.

5(24) Electronic and Appliance Repair Fund.

6(25) Geology and Geophysics Account of the Professional
7Engineer’s and Land Surveyor’s Fund.

8(26) Dispensing Opticians Fund.

9(27) Acupuncture Fund.

10(28) Physician Assistant Fund.

11(29) Board of Podiatric Medicine Fund.

12(30) Psychology Fund.

13(31) Respiratory Care Fund.

14(32) Speech-Language Pathology and Audiology and Hearing
15Aid Dispensers Fund.

16(33) Board of Registered Nursing Fund.

17(34) Psychiatric Technician Examiners Account of the
18Vocational Nursing and Psychiatric Technicians Fund.

19(35) Animal Health Technician Examining Committee Fund.

20(36) State Dental Hygiene Fund.

21(37) State Dental Assistant Fund.

22(38) Structural Pest Control Fund.

23(39) Structural Pest Control Eradication and Enforcement Fund.

24(40) Structural Pest Control Research Fund.

25(b) For accounting and recordkeeping purposes, the Professions
26and Vocations Fund shall be deemed to be a single special fund,
27and each of the several special funds therein shall constitute and
28be deemed to be a separate account in the Professions and
29Vocations Fund. Each account or fund shall be available for
30expenditure only for the purposes as are now or may hereafter be
31provided by law.

32(c) This section shall remain in effect only until July 1, 2016,
33and as of that date is repealed, unless a later enacted statute, that
34is enacted before July 1, 2016, deletes or extends that date.

35

SEC. 2.  

Section 205 is added to the Business and Professions
36Code
, to read:

37

205.  

(a) There is in the State Treasury the Professions and
38Vocations Fund. The fund shall consist of the following special
39funds:

40(1) Accountancy Fund.

P5    1(2) California Architects Board Fund.

2(3) Athletic Commission Fund.

3(4) Barbering and Cosmetology Contingent Fund.

4(5) Cemetery and Funeral Fund.

5(6) Contractors’ License Fund.

6(7) State Dentistry Fund.

7(8) Guide Dogs for the Blind Fund.

8(9) Home Furnishings and Thermal Insulation Fund.

9(10) California Architects Board-Landscape Architects Fund.

10(11) Contingent Fund of the Medical Board of California.

11(12) Optometry Fund.

12(13) Pharmacy Board Contingent Fund.

13(14) Physical Therapy Fund.

14(15) Private Investigator Fund.

15(16) Professional Engineer’s and Land Surveyor’s Fund.

16(17) Consumer Affairs Fund.

17(18) Behavioral Sciences Fund.

18(19) Licensed Midwifery Fund.

19(20) Court Reporters’ Fund.

20(21) Veterinary Medical Board Contingent Fund.

21(22) Vocational Nurses Account of the Vocational Nursing and
22Psychiatric Technicians Fund.

23(23) Electronic and Appliance Repair Fund.

24(24) Geology and Geophysics Account of the Professional
25Engineer’s and Land Surveyor’s Fund.

26(25) Dispensing Opticians Fund.

27(26) Acupuncture Fund.

28(27) Physician Assistant Fund.

29(28) Board of Podiatric Medicine Fund.

30(29) Psychology Fund.

31(30) Respiratory Care Fund.

32(31) Speech-Language Pathology and Audiology and Hearing
33Aid Dispensers Fund.

34(32) Board of Registered Nursing Fund.

35(33) Psychiatric Technician Examiners Account of the
36Vocational Nursing and Psychiatric Technicians Fund.

37(34) Animal Health Technician Examining Committee Fund.

38(35) State Dental Hygiene Fund.

39(36) State Dental Assistant Fund.

40(37) Structural Pest Control Fund.

P6    1(38) Structural Pest Control Eradication and Enforcement Fund.

2(39) Structural Pest Control Research Fund.

3(b) For accounting and recordkeeping purposes, the Professions
4and Vocations Fund shall be deemed to be a single special fund,
5and each of the several special funds therein shall constitute and
6be deemed to be a separate account in the Professions and
7Vocations Fund. Each account or fund shall be available for
8expenditure only for the purposes as are now or may hereafter be
9provided by law.

10(c) This section shall become operative on July 1, 2016.

11begin insert

begin insertSEC. 2.1.end insert  

end insert

begin insertSection 205 is added to the end insertbegin insertBusiness and Professions
12Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert205.end insert  

(a) There is in the State Treasury the Professions and
14Vocations Fund. The fund shall consist of the following special
15funds:

16(1) Accountancy Fund.

17(2) California Architects Board Fund.

18(3) Athletic Commission Fund.

19(4) Barbering and Cosmetology Contingent Fund.

20(5) Cemetery and Funeral Fund.

21(6) Contractors’ License Fund.

22(7) State Dentistry Fund.

23(8) Guide Dogs for the Blind Fund.

24(9) Home Furnishings and Thermal Insulation Fund.

25(10) California Architects Board-Landscape Architects Fund.

26(11) Contingent Fund of the Medical Board of California.

27(12) Optometry Fund.

28(13) Pharmacy Board Contingent Fund.

29(14) Physical Therapy Fund.

30(15) Private Investigator Fund.

31(16) Professional Engineer’s, Land Surveyor’s, and Geologist’s
32Fund.

33(17) Consumer Affairs Fund.

34(18) Behavioral Sciences Fund.

35(19) Licensed Midwifery Fund.

36(20) Court Reporters’ Fund.

37(21) Veterinary Medical Board Contingent Fund.

38(22) Vocational Nurses Account of the Vocational Nursing and
39Psychiatric Technicians Fund.

40(23) Electronic and Appliance Repair Fund.

P7    1(24) Dispensing Opticians Fund.

2(25) Acupuncture Fund.

3(26) Physician Assistant Fund.

4(27) Board of Podiatric Medicine Fund.

5(28) Psychology Fund.

6(29) Respiratory Care Fund.

7(30) Speech-Language Pathology and Audiology and Hearing
8Aid Dispensers Fund.

9(31) Board of Registered Nursing Fund.

10(32) Psychiatric Technician Examiners Account of the
11Vocational Nursing and Psychiatric Technicians Fund.

12(33) Animal Health Technician Examining Committee Fund.

13(34) State Dental Hygiene Fund.

14(35) State Dental Assistant Fund.

15(36) Structural Pest Control Fund.

16(37) Structural Pest Control Eradication and Enforcement Fund.

17(38) Structural Pest Control Research Fund.

18(b) For accounting and recordkeeping purposes, the Professions
19and Vocations Fund shall be deemed to be a single special fund,
20and each of the several special funds therein shall constitute and
21be deemed to be a separate account in the Professions and
22Vocations Fund. Each account or fund shall be available for
23expenditure only for the purposes as are now or may hereafter be
24provided by law.

25(c) This section shall become operative on July 1, 2016.

end insert
26begin insert

begin insertSEC. 2.2.end insert  

end insert

begin insertSection 205 is added to the end insertbegin insertBusiness and Professions
27Code
end insert
begin insert, to read:end insert

begin insert
28

begin insert205.end insert  

(a) There is in the State Treasury the Professions and
29Vocations Fund. The fund shall consist of the following special
30funds:

31(1) Accountancy Fund.

32(2) California Architects Board Fund.

33(3) Athletic Commission Fund.

34(4) Barbering and Cosmetology Contingent Fund.

35(5) Cemetery and Funeral Fund.

36(6) Contractors’ License Fund.

37(7) State Dentistry Fund.

38(8) Guide Dogs for the Blind Fund.

39(9) Home Furnishings and Thermal Insulation Fund.

40(10) California Architects Board-Landscape Architects Fund.

P8    1(11) Contingent Fund of the Medical Board of California.

2(12) Optometry Fund.

3(13) Pharmacy Board Contingent Fund.

4(14) Physical Therapy Fund.

5(15) Private Investigator Fund.

6(16) Professional Engineer’s and Land Surveyor’s Fund.

7(17) Consumer Affairs Fund.

8(18) Behavioral Sciences Fund.

9(19) Licensed Midwifery Fund.

10(20) Court Reporters’ Fund.

11(21) Veterinary Medical Board Contingent Fund.

12(22) Vocational Nursing and Psychiatric Technicians Fund.

13(23) Electronic and Appliance Repair Fund.

14(24) Geology and Geophysics Account of the Professional
15Engineer’s and Land Surveyor’s Fund.

16(25) Dispensing Opticians Fund.

17(26) Acupuncture Fund.

18(27) Physician Assistant Fund.

19(28) Board of Podiatric Medicine Fund.

20(29) Psychology Fund.

21(30) Respiratory Care Fund.

22(31) Speech-Language Pathology and Audiology and Hearing
23Aid Dispensers Fund.

24(32) Board of Registered Nursing Fund.

25(33) Animal Health Technician Examining Committee Fund.

26(34) State Dental Hygiene Fund.

27(35) State Dental Assistant Fund.

28(36) Structural Pest Control Fund.

29(37) Structural Pest Control Eradication and Enforcement Fund.

30(38) Structural Pest Control Research Fund.

31(b) For accounting and recordkeeping purposes, the Professions
32and Vocations Fund shall be deemed to be a single special fund,
33and each of the several special funds therein shall constitute and
34be deemed to be a separate account in the Professions and
35Vocations Fund. Each account or fund shall be available for
36expenditure only for the purposes as are now or may hereafter be
37provided by law.

38(c) This section shall become operative on July 1, 2016.

end insert
39begin insert

begin insertSEC. 2.3.end insert  

end insert

begin insertSection 205 is added to the end insertbegin insertBusiness and Professions
40Code
end insert
begin insert, to read:end insert

begin insert
P9    1

begin insert205.end insert  

(a) There is in the State Treasury the Professions and
2Vocations Fund. The fund shall consist of the following special
3funds:

4(1) Accountancy Fund.

5(2) California Architects Board Fund.

6(3) Athletic Commission Fund.

7(4) Barbering and Cosmetology Contingent Fund.

8(5) Cemetery and Funeral Fund.

9(6) Contractors’ License Fund.

10(7) State Dentistry Fund.

11(8) Guide Dogs for the Blind Fund.

12(9) Home Furnishings and Thermal Insulation Fund.

13(10) California Architects Board-Landscape Architects Fund.

14(11) Contingent Fund of the Medical Board of California.

15(12) Optometry Fund.

16(13) Pharmacy Board Contingent Fund.

17(14) Physical Therapy Fund.

18(15) Private Investigator Fund.

19(16) Professional Engineer’s, Land Surveyor’s, and Geologist’s
20Fund.

21(17) Consumer Affairs Fund.

22(18) Behavioral Sciences Fund.

23(19) Licensed Midwifery Fund.

24(20) Court Reporters’ Fund.

25(21) Veterinary Medical Board Contingent Fund.

26(22) Vocational Nursing and Psychiatric Technicians Fund.

27(23) Electronic and Appliance Repair Fund.

28(24) Dispensing Opticians Fund.

29(25) Acupuncture Fund.

30(26) Physician Assistant Fund.

31(27) Board of Podiatric Medicine Fund.

32(28) Psychology Fund.

33(29) Respiratory Care Fund.

34(30) Speech-Language Pathology and Audiology and Hearing
35Aid Dispensers Fund.

36(31) Board of Registered Nursing Fund.

37(32) Animal Health Technician Examining Committee Fund.

38(33) State Dental Hygiene Fund.

39(34) State Dental Assistant Fund.

40(35) Structural Pest Control Fund.

P10   1(36) Structural Pest Control Eradication and Enforcement Fund.

2(37) Structural Pest Control Research Fund.

3(b) For accounting and recordkeeping purposes, the Professions
4and Vocations Fund shall be deemed to be a single special fund,
5and each of the several special funds therein shall constitute and
6be deemed to be a separate account in the Professions and
7Vocations Fund. Each account or fund shall be available for
8expenditure only for the purposes as are now or may hereafter be
9provided by law.

10(c) This section shall become operative on July 1, 2016.

end insert
11

SEC. 3.  

The heading of Chapter 12 (commencing with Section
127600) of Division 3 of the Business and Professions Code is
13amended to read:

14 

15Chapter  12. Cemetery and Funeral Act
16

 

17

SEC. 4.  

Section 7600 of the Business and Professions Code is
18amended to read:

19

7600.  

This chapter of the Business and Professions Code
20constitutes the chapter on cemetery and funeral law. It may be
21cited as the Cemetery and Funeral Act.

22

SEC. 5.  

Section 7602 of the Business and Professions Code is
23amended to read:

24

7602.  

(a) (1) There is in the department the Cemetery and
25Funeral Bureau, under the supervision and control of the director.

26(2) The director may appoint a chief at a salary to be fixed and
27determined by the director, with the approval of the Director of
28Finance. The duty of enforcing and administering this chapter is
29vested in the chief, and he or she is responsible to the director
30therefor. The chief shall serve at the pleasure of the director.

31(3) Every power granted or duty imposed upon the director
32under this chapter may be exercised or performed in the name of
33the director by a deputy director or by the chief, subject to such
34conditions and limitations as the director may prescribe.

35(b) Notwithstanding any other law, the powers and duties of the
36bureau, as set forth in this chapter, shall be subject to review by
37the appropriate policy committees of the Legislature. The review
38shall be performed as if this chapter is scheduled to be repealed
39on January 1, 2020.

P11   1

SEC. 6.  

Section 7606 of the Business and Professions Code is
2repealed.

3

SEC. 7.  

Section 7606 is added to the Business and Professions
4Code
, to read:

5

7606.  

The bureau may establish necessary rules and regulations
6for the administration and enforcement of this act and the laws
7subject to its jurisdiction and prescribe the form of statements and
8reports provided for in this act. The rules and regulations shall be
9adopted, amended, or repealed in accordance with the provisions
10of the Administrative Procedure Act (Chapter 3.5 (commencing
11with Section 11340) of Part 1 of Division 3 of Title 2 of the
12Government Code).

13

SEC. 8.  

Section 7607 of the Business and Professions Code is
14amended to read:

15

7607.  

The bureau may inspect the premises in which the
16business of a funeral establishment, cemetery, or crematory is
17conducted, where embalming is practiced, or where human remains
18are stored.

19

SEC. 9.  

Section 7608 of the Business and Professions Code is
20amended to read:

21

7608.  

(a) The Director of Consumer Affairs may employ and
22appoint all employees necessary to properly administer the work
23of the bureau, in accordance with civil service regulations.

24With the approval of the Director of Finance, and, subject to the
25provisions of Section 159.5, the bureau shall employ investigators
26and attorneys to assist the bureau in prosecuting violations of this
27chapter relating to funeral directors and embalmers, whose
28compensation and expenses shall be payable only out of the State
29Funeral Directors and Embalmers Fund.

30(b) This section shall remain in effect only until July 1, 2016,
31and as of that date is repealed, unless a later enacted statute, that
32is enacted before July 1, 2016, deletes or extends that date.

33

SEC. 10.  

Section 7608 is added to the Business and Professions
34Code
, to read:

35

7608.  

(a) The Director of Consumer Affairs may employ and
36appoint all employees necessary to properly administer the work
37of the bureau, in accordance with civil service regulations.

38With the approval of the Director of Finance, and, subject to the
39provisions of Section 159.5, the bureau shall employ investigators
40and attorneys to assist the bureau in prosecuting violations of this
P12   1chapter, whose compensation and expenses shall be payable only
2out of the Cemetery and Funeral Fund.

3(b) This section shall become operative on July 1, 2016.

4

SEC. 11.  

Section 7609 of the Business and Professions Code
5 is amended to read:

6

7609.  

This chapter does not apply to, or in any way interfere
7with, the duties of any officer of any public institution or of any
8duly accredited medical college, nor does it apply to any hospital
9licensed pursuant to Chapter 2 (commencing with Section 1250)
10of Division 2 of the Health and Safety Code, or anyone engaged
11only in the furnishing of burial receptacles.

12

SEC. 12.  

Section 7610.1 is added to the Business and
13Professions Code
, to read:

14

7610.1.  

In the enforcement of this act and the laws subject to
15its jurisdiction, the bureau has all the powers and is subject to all
16the responsibilities vested in and imposed upon the head of a
17department under Chapter 2 (commencing with Section 11150) of
18Part 1 of Division 3 of Title 2 of the Government Code.

19

SEC. 13.  

Article 1.5 (commencing with Section 7611) is added
20to Chapter 12 of Division 3 of the Business and Professions Code,
21to read:

22 

23Article 1.5.  Definitions and Regulation of Cemeteries
24

 

25

7611.  

The definitions in this article govern the meaning of
26terms used in the act except as otherwise provided expressly or by
27necessary implication.

28

7611.1.  

“Act” means the Cemetery and Funeral Bureau Act.

29

7611.2.  

A “cemetery broker” is a person who, other than in
30reference to an occasional sale, sells or offers for sale, buys, or
31offers to buy, lists, leases or offers to lease, or solicits, or negotiates
32the purchase or sale, lease, or exchange of cemetery property or
33interment services, or interest therein, for his or her own account
34or for another.

35

7611.3.  

A “cemetery salesperson” is a natural person who,
36other than in reference to an occasional sale, is employed by a
37cemetery broker to sell, or offer for sale, list or offer to list, or to
38buy, or to offer to buy, or to lease, or offer to lease, or to solicit,
39or to negotiate the purchase or sale or lease or exchange of
P13   1cemetery property or interment services, or any interest therein,
2for his or her own account or for another.

3

7611.4.  

(a) A “cemetery manager” is a person engaged in or
4conducting, or holding himself or herself out as engaged in those
5activities involved in, or incidental to, the maintaining, operating,
6or improving a cemetery licensed under this chapter, the interring
7of human remains, and the care, preservation, and embellishment
8of cemetery property.

9(b) For persons licensed pursuant to Section 7637.1, a “cemetery
10manager” is a person engaged in or conducting, or holding himself
11or herself out as engaged in those activities involved in, or
12incidental to, the following:

13(1) The maintaining, operating, or improving of a cemetery
14 licensed under this chapter.

15(2) The interment of human remains.

16(3) The care, preservation, and embellishment of cemetery
17property.

18(4) Activities described in Section 7637.2.

19

7611.5.  

A “crematory manager” is a person engaged in or
20conducting, or holding himself or herself out as engaged in those
21activities involved in, or incidental to, the maintaining or operating
22of a crematory licensed under this chapter, and the cremation of
23human remains.

24

7611.6.  

The definitions in Chapter 1 (commencing with Section
257000) of Part 1 of Division 7 of the Health and Safety Code are
26applicable to this act.

27

7611.7.  

“Cemetery licensee” means any cemetery broker,
28cemetery salesperson, or cemetery manager.

29

7611.8.  

“Crematory licensee” shall mean a corporation,
30partnership, or natural person licensed pursuant to Article 6.5
31(commencing with Section 7712) and shall mean a cemetery
32licensee for purposes of disciplinary action under Article 6
33(commencing with Section 7686).

34

7611.9.  

A “cremated remains disposer” is a person who, for
35his or her own account or for another, disposes of, or offers to
36dispose of, cremated human remains by scattering over or on land
37or sea.

38

7611.10.  

“Endowment care” or “endowed care” shall include
39both general and special care funds.

P14   1

7612.  

An “occasional sale” is a sale of cemetery property not
2acquired or held for purposes of resale or speculation, provided
3such sale is not one of a series of sales sufficient in number, scope,
4and character to constitute engaging in the business of selling or
5reselling or holding for speculation cemetery property.

6

7612.1.  

“Public cemetery” means a cemetery owned and
7operated by a city, county, city and county, or public cemetery
8district.

9

7612.2.  

This act does not apply to any of the following:

10(a) A religious corporation, church, religious society or
11denomination, a corporation sole administering temporalities of
12any church or religious society or denomination, or any cemetery
13organized, controlled, and operated by any of them.

14(b) A public cemetery.

15(c) Any private or fraternal burial park not exceeding 10 acres
16in area, established prior to September 19, 1939; however, (1)  
17those cemeteries shall be subject to the cemetery brokerage
18provisions of this act, and (2)   any cemetery shall be subject to all
19of the provisions of this act if it collects a care, maintenance, or
20embellishment deposit or sets up a trust for burial purposes
21pursuant to Section 8775 of the Health and Safety Code, including
22funeral services such as mortuary, cremation, or other commodities
23or services furnished at the time of and in connection with that
24funeral or cremation.

25

7612.3.  

The bureau shall disclose on its Internet Web site,
26information about each cemetery subject to the jurisdiction of the
27bureau. In addition to the information required by Section 27, the
28bureau shall disclose the name of the owner of each cemetery, the
29name of the cemetery, the business address of the cemetery owner,
30and the physical address of the cemetery.

31

7612.4.  

(a) Notwithstanding Section 8115 of the Health and
32Safety Code, in order to protect consumers, the bureau shall adopt
33regulations that establish minimum standards of maintenance for
34endowment care cemeteries under the jurisdiction of the bureau.
35The regulations shall consider differences in cemetery size,
36location, topography, and type of interments. The regulations shall
37also consider the extent to which funds are available from the
38cemetery’s endowment care funds to perform maintenance.

P15   1(b) The standards established pursuant to this section shall not
2supersede any standards of a higher level of care established
3pursuant to Section 8115 of the Health and Safety Code.

4

7612.5.  

(a) (1) Any person who holds or has held, or was
5named on, any license or registration under the jurisdiction of the
6bureau that has been, within the immediately preceding 10 years,
7revoked, suspended, placed on probation, or surrendered under a
8stipulated decision, and who is employed by, or who seeks
9employment with, a licensed cemetery, a licensed crematory, or a
10licensed cemetery broker in any capacity, shall inform the licensed
11cemetery manager, the licensed crematory manager, or the licensed
12cemetery broker of that revocation, suspension, probation, or
13surrender.

14(2) A person subject to this subdivision shall inform the licensed
15cemetery manager, the licensed crematory manager, or the licensed
16cemetery broker upon application for employment by completing
17a form that shall be made available by the bureau.

18(b) The cemetery manager, crematory manager, or cemetery
19broker who is informed pursuant to subdivision (a) shall notify the
20bureau by submitting the form within 30 days of being so informed.
21Failure of the cemetery manager, crematory manager, or cemetery
22broker to notify the bureau shall be a cause for a warning. A
23cemetery manager, crematory manager, or cemetery broker shall
24not be subject to a warning if his or her failure to notify the bureau
25is due to a false statement made by an employee.

26(c) Any person required to notify the cemetery manager,
27crematory manager, or cemetery broker under subdivision (a) who
28fails to do so or who makes a false statement on the required form
29shall be subject to disciplinary action if that person is a licensee
30of the bureau, or that failure or false statement shall be cause for
31denial of a license under Section 480.

32(d) For purposes of subdivision (a), the term “named on” applies
33to a person who was an owner, partner, or corporate officer of an
34entity that was licensed or registered under the act at the time that
35entity’s license or registration under the act was revoked,
36suspended, placed on probation, or surrendered.

37

7612.6.  

(a) Each cemetery authority shall file with the bureau
38annually, on or before June 1, or within five months after close of
39their fiscal year provided approval has been granted by the bureau
P16   1as provided for in Section 7612.7, a written report in a form
2prescribed by the bureau setting forth the following:

3(1) The number of square feet of grave space and the number
4of crypts and niches sold or disposed of under endowment care by
5specific periods as set forth in the form prescribed.

6(2) The amount collected and deposited in both the general and
7special endowment care funds segregated as to the amounts for
8crypts, niches, and grave space by specific periods as set forth
9either on the accrual or cash basis at the option of the cemetery
10authority.

11(3) A statement showing separately the total amount of the
12general and special endowment care funds invested in each of the
13investments authorized by law and the amount of cash on hand
14not invested, which statement shall actually show the financial
15condition of the funds.

16(4) A statement showing separately the location, description,
17and character of the investments in which the special endowment
18care funds are invested. The statement shall show the valuations
19of any securities held in the endowment care fund as valued
20pursuant to Section 7614.7.

21(5) A statement showing the transactions entered into between
22the corporation or any officer, employee, or stockholder thereof
23and the trustees of the endowment care funds with respect to those
24endowment care funds. The statement shall show the dates,
25amounts of the transactions, and shall contain a statement of the
26reasons for those transactions.

27(b) The report shall be verified by the president or vice president
28and one other officer of the cemetery corporation. The information
29submitted pursuant to paragraphs (2), (3), (4), and (5) of
30subdivision (a) shall be accompanied by an annual audit report of
31the endowment care fund and special care fund signed by a certified
32public accountant or public accountant. The scope of the audit
33shall include the inspection, review, and audit of the general
34purpose financial statements of the endowment care fund and
35special care fund, which shall include the balance sheet, the
36statement of revenues, expenditures, and changes in fund balance.

37(c) If a cemetery authority files a written request prior to the
38date the report is due, the bureau may, in its discretion, grant an
39additional 30 days within which to file the report.

P17   1

7612.7.  

Each cemetery authority requesting a change of filing
2date of the endowment care fund report from a calendar year to a
3fiscal year or a change in fiscal year shall file a petition with the
4bureau prior to the close of the year of request. The bureau may
5approve such petition provided that no report shall be for a period
6of more than 12 months.

7

7612.8.  

The report shall state the name of the trustee or trustees
8of the endowment care fund. Any change of trustee shall be
9reported to the bureau within a period of 30 days after the change
10is made.

11

7612.9.  

A copy of each annual audit report shall be transmitted
12to the bureau and shall be a public record. It shall also be open for
13public inspection at the offices of the cemetery authority during
14normal business hours. If the cemetery authority does not maintain
15offices in the county in which its cemetery is located, it shall file
16a copy of the annual audit report with the county clerk of the
17county, which shall be subject to public inspection.

18

7612.10.  

(a) Any cemetery authority that does not file its report
19within the time prescribed by Section 7612.6 may be assessed a
20fine by the bureau in an amount not to exceed four hundred dollars
21($400) per month for a maximum of five months. The amount of
22the fine shall be established by regulation in accordance with the
23Administrative Procedure Act (Chapter 3.5 (commencing with
24Section 11340) of Part 1 of Division 3 of Title 2 of the Government
25Code). Failure to pay the fine within 15 days after receipt of written
26notification of the assessment or, where a timely request for waiver
27or reduction of the fine has been filed, within 15 days after receipt
28of written notification of the bureau’s decision in the matter, shall
29be cause for disciplinary action.

30(b) A cemetery authority may request waiver or reduction of a
31fine by making a written request therefor. The request shall be
32postmarked within the time specified above for payment of the
33fine and shall be accompanied by a statement showing good cause
34for the request.

35(c) The bureau may waive or reduce the fine where a timely
36request is made and where it determines, in its discretion, that the
37cemetery authority has made a sufficient showing of good cause
38for the waiver or reduction.

39

7612.11.  

(a) The bureau shall conduct a study to obtain
40information to determine if the endowment care fund levels of
P18   1each licensee’s cemetery are sufficient to cover the cost of future
2maintenance. The bureau shall also review the levels of endowment
3care funds that have previously been reported pursuant to this
4chapter by licensed cemeteries.

5(b) The bureau shall report its findings and recommendations
6to the appropriate policy committees of the Legislature by January
71, 2018.

8

7613.  

The bureau shall examine the reports filed with it as to
9their compliance with the requirements of the Health and Safety
10Code as to the amount of endowment care funds collected and as
11to the manner of investment of those funds.

12

7613.1.  

The bureau shall examine the endowment care funds
13of a cemetery authority:

14(a) Whenever it deems necessary and at least once every five
15years.

16(b) Whenever the cemetery authority in charge of endowment
17care funds fails to file the report required by this article.

18(c) Whenever the accountant or auditor qualifies his or her
19certification of the report that is prepared and signed by a certified
20public accountant licensed in the state and prepared in accordance
21with Section 7612.6.

22(d) The reasonable and necessary cost of the examination
23performed under subdivision (b) or (c) shall be paid by the
24cemetery authority.

25(e) A certified copy of the actual costs, or a good faith estimate
26of the costs where actual costs are not available, signed by the
27director or his or her designee, shall be prima facie evidence of
28the reasonable and necessary costs of the examination.

29(f) The actual and necessary expense of the examination under
30subdivision (a) shall, in the discretion of the bureau, be paid by
31the cemetery authority whenever the examination requires more
32than one day and the need for continuing the examination is directly
33related to identified omissions and errors in the management of
34endowment care funds.

35

7613.2.  

(a) If any cemetery authority refuses to pay such
36expenses, the bureau shall refuse it a certificate of authority and
37shall revoke any existing certificate of authority. All examination
38expense moneys collected by the bureau shall be paid into the State
39Treasury to the credit of the Cemetery Fund.

P19   1(b) This section shall remain in effect only until July 1, 2016,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before July 1, 2016, deletes or extends that date.

4

7613.2.  

(a) If any cemetery authority refuses to pay such
5expenses, the bureau shall refuse it a certificate of authority and
6shall revoke any existing certificate of authority. All examination
7expense moneys collected by the bureau shall be paid into the State
8Treasury to the credit of the Cemetery and Funeral Fund.

9(b) This section shall become operative on July 1, 2016.

10

7613.3.  

(a) In making the examination, the bureau:

11(1) Shall have free access to the books and records relating to
12the trust funds, their collection and investment, and the number of
13graves, crypts, and niches under endowment care.

14(2) Shall inspect and examine the trust funds to determine their
15condition and the existence of the investments.

16(3) Shall ascertain if the cemetery corporation has complied
17with all the laws applicable to trust funds.

18(b) Upon request by the bureau, a cemetery authority shall
19provide records to substantiate the expenditures of the income of
20the trust funds. If a cemetery authority fails to reasonably comply
21with this request, the bureau may have access to books, records,
22and accounts of a cemetery authority for purposes of ascertaining
23compliance with applicable laws.

24

7613.4.  

(a) Subject to subdivision (b), a limited liability
25company certificated as a cemetery authority pursuant to Section
267018 of the Health and Safety Code may provide services of
27licensed cemetery brokers, cemetery salespersons, cemetery
28managers, funeral directors, embalmers, crematorium licensees,
29and any other person licensed under this code to provide services
30relating to cemeteries and funerals by employing one or more of
31these licensed persons.

32(b) At the time of certification, and at all times during which a
33limited liability company transacts intrastate business as a cemetery
34authority, the company shall be required to provide security for
35claims against it based upon acts, errors, or omissions of its
36licensed employees as described in subdivision (a) by complying
37with one, or a combination, of the following:

38(1) (A) Maintaining a policy or policies of insurance against
39liability imposed on or against it by law for damages arising out
40of claims. However, the total aggregate limit of liability under the
P20   1policy or policies of insurance for a limited liability company that
2employs five or fewer licensed persons shall not be less than one
3million dollars ($1,000,000), and for a limited liability company
4that employs more than five licensees, an additional one hundred
5thousand dollars ($100,000) of insurance shall be obtained for
6each additional licensee except that the maximum amount of
7insurance is not required to exceed five million dollars ($5,000,000)
8in any one designated period, less amounts paid in defending,
9settling, or discharging claims as set forth in this paragraph. The
10policy or policies may be issued on a claims-made or occurrence
11basis, and shall cover:

12(i) In the case of a claims-made policy, claims initially asserted
13in the designated period.

14(ii) In the case of an occurrence policy, occurrences during the
15designated period.

16(B) For purposes of this paragraph, “designated period” means
17a policy year or any other designated period in the policy that is
18not greater than 12 months.

19(C) The impairment or exhaustion of the aggregate limit of
20liability by amounts paid under the policy in connection with the
21settlement, discharge, or defense of claims applicable to a
22designated period shall not require the limited liability company
23to acquire additional insurance coverage for that designated period.
24The policy or policies of insurance may be in a form reasonably
25available in the commercial insurance market and may be subject
26to those terms, conditions, exclusions, and endorsements that are
27typically contained in those policies. A policy or policies of
28insurance maintained pursuant to this paragraph may be subject
29to a deductible or self-insured retention.

30(D) Upon the dissolution and winding up of the limited liability
31company, the company shall, with respect to any insurance policy
32or policies then maintained pursuant to this paragraph, maintain
33or obtain an extended reporting period endorsement or equivalent
34provision in the maximum aggregate limit of liability required to
35comply with this paragraph for a minimum of three years if
36reasonably available from the insurer.

37(2) Maintaining in trust or bank escrow, cash, bank certificates
38of deposit, United States Treasury obligations, bank letters of
39credit, or bonds of insurance or surety companies as security for
40payment of liabilities imposed by law for damages arising out of
P21   1all claims. However, the maximum amount of security for a limited
2liability company that employs five or fewer licensed persons shall
3not be less than one million dollars ($1,000,000), and for a limited
4liability company that employs more than five licensees rendering
5professional services on behalf of the company, an additional one
6hundred thousand dollars ($100,000) of security shall be obtained
7for each additional licensee except that the maximum amount of
8 security is not required to exceed five million dollars ($5,000,000).
9The limited liability company remains in compliance with this
10section during a calendar year notwithstanding amounts paid during
11that calendar year from the accounts, funds, Treasury obligations,
12letters of credit, or bonds in defending, settling, or discharging
13claims of the type described in this paragraph, provided that the
14amount of those accounts, funds, Treasury obligations, letters of
15credit, or bonds was at least the amount specified in the preceding
16sentence as of the first business day of that calendar year.
17Notwithstanding the pendency of other claims against the limited
18liability company, it shall be deemed to be in compliance with this
19paragraph as to a claim if within 30 days after the time that a claim
20is initially asserted through service of a summons, complaint, or
21comparable pleading in a judicial or administrative proceeding,
22the limited liability company has provided the required amount of
23security by designating and segregating funds in compliance with
24the requirements of this paragraph.

25(3) Unless the limited liability company has satisfied paragraph
26(4), each member of a limited liability company certificated as a
27cemetery authority that provides professional services rendered
28by employees who are licensed professionals described in
29subdivision (a), by virtue of that person’s status as a member,
30thereby automatically guarantees payment of the difference
31between the maximum amount of security required for the limited
32liability company by this subdivision and the security otherwise
33provided in accordance with paragraphs (1) and (2), provided that
34the aggregate amount paid by all members under these guarantees
35shall not exceed the difference. Neither withdrawal by a member
36nor the dissolution and winding up of the limited liability company
37shall affect the rights or obligations of a member arising prior to
38withdrawal or dissolution and winding up, and the guarantee
39provided for in this paragraph shall apply only to conduct that
40occurred prior to the withdrawal or dissolution and winding up.
P22   1Nothing contained in this subdivision shall affect or impair the
2rights or obligations of the members among themselves, or the
3limited liability company, including, but not limited to, rights of
4contribution, subrogation, or indemnification.

5(4) Confirming, pursuant to the procedure in subdivision (c) of
6Section 16956 of the Corporations Code, that, as of the most
7recently completed fiscal year of the limited liability company, it
8had a net worth equal to or exceeding ten million dollars
9($10,000,000). The limited liability company shall transmit
10evidence of this paragraph to the bureau in a form similar to the
11form submitted by a limited liability partnership providing
12 alternative security provisions pursuant to subdivision (c) of
13Section 16956 of the Corporations Code.

14(c) (1) A limited liability company may aggregate the security
15required pursuant to paragraphs (1) to (4), inclusive, of subdivision
16(b).

17(2) For purposes of compliance with this section, the provisions
18of subdivision (d) of Section 16956 of the Corporations Code shall
19apply to a limited liability company certificated as a cemetery
20authority.

21

7613.5.  

(a) A person licensed under this code as a cemetery
22broker, cemetery salesperson, cemetery manager, funeral director,
23embalmer, crematorium licensee, or other person licensed to
24provide services related to cemeteries and funerals shall not have
25any ownership interest as a member in a limited liability company
26certificated as a cemetery authority pursuant to Section 7018 of
27the Health and Safety Code.

28(b) If a limited liability company admits, as a member with
29ownership interest, a licensed person described in subdivision (a),
30the limited liability company, by operation of law, shall be deemed
31in violation of subdivision (e) of Section 17701.04 of the
32Corporations Code, and the members shall be treated as partners
33with joint and several liability for claims made upon acts, errors,
34or omissions arising out of services provided by any licensed
35person described in subdivision (a).

36(c) If the bureau determines that a licensed cemetery broker,
37cemetery salesperson, cemetery manager, funeral director,
38embalmer, crematorium licensee, or other person licensed to
39provide services related to cemeteries and funerals has an
40ownership interest as a member in the limited liability company,
P23   1the bureau shall suspend the limited liability company’s certificate
2of authority. The bureau shall reinstate the certificate of authority
3only upon finding that the licensed cemetery broker, cemetery
4salesperson, cemetery manager, funeral director, embalmer,
5crematorium licensee, or other person licensed to provide services
6related to cemeteries and funerals has been divested of his or her
7ownership interest in the limited liability company or has
8voluntarily surrendered his or her license.

9

7613.6.  

The bureau may administer oaths and examine under
10oath any person relative to the endowment care fund. The
11examination shall be conducted in the principal office of the person
12or body in charge of the endowment care fund and shall be private.

13

7613.7.  

If any examination made by the bureau, or any report
14filed with it, shows that there has not been collected and deposited
15in the endowment care funds the minimum amounts required by
16the Health and Safety Code since September 19, 1939, the bureau
17shall require a cemetery corporation to comply with Sections 8743
18and 8744 of the Health and Safety Code.

19

7613.8.  

Whenever the bureau finds, after notice and hearing,
20that any endowment care funds have been invested in violation of
21the Health and Safety Code, it shall by written order mailed to the
22person or body in charge of the fund require the reinvestment of
23the funds in conformity to that code within a period which shall
24be not less than two years if the investment was made prior to
25October 1, 1949, not less than six months if the investment was
26made on or after October 1, 1949, and before the effective date of
27the amendment of this section by the 1969 Regular Session of the
28Legislature, and not less than 30 days if the investment is made
29on or after the effective date of the amendment. The period may
30be extended by the bureau in its discretion.

31

7613.9.  

The superior court of the county in which the principal
32office of the cemetery authority in charge of endowment care funds
33is located shall, upon the filing by the bureau of a verified
34application showing any of the following conditions hereinafter
35enumerated to exist, issue its order vesting title to any endowment
36care funds of a cemetery authority in the bureau, and directing the
37bureau forthwith to take possession of all necessary books, records,
38property, real and personal, and assets, and to conduct as
39conservator, the management of such endowment care funds, or
40so much thereof as to the bureau may seem appropriate:

P24   1(a) That the cemetery authority has refused to submit its books,
2papers, accounts, or affairs to the reasonable examination of the
3bureau.

4(b) That the cemetery authority has neglected to observe an
5order of the bureau to make good within the time prescribed by
6law any deficiency in its investments of endowment care funds.

7(c) That the cemetery authority is found, after an examination,
8to be in such condition that its further management of its
9endowment care funds will be hazardous to its members,
10plotholders, or to the public.

11(d) That the cemetery authority has violated its articles of
12incorporation or any law of the state.

13(e) That any officer, director, agent, servant, or employee of the
14cemetery authority person refuses to be examined under oath
15relative to the endowment care funds thereof.

16(f) That any person has embezzled or otherwise wrongfully
17diverted any of the endowment care funds of the cemetery
18authority.

19(g) The order shall continue in force and effect until, on the
20application either of the bureau or of the cemetery authority, it
21shall, after a full hearing, appear to the court that the ground for
22the order does not exist or has been removed and that the cemetery
23authority can properly resume title and possession of its property
24and the management of its endowment care funds.

25

7613.10.  

When it has been alleged by verified petition pursuant
26to Section 7613.1 or when the bureau on its own investigation
27determines that there is probable cause to believe that any of the
28conditions set forth in Section 7613.9 exist or that irreparable loss
29and injury to the endowment care funds of a cemetery authority
30has occurred or may occur unless the bureau so acts immediately,
31the bureau, without notice and before applying to the court for any
32order, may take possession of the endowment care funds and the
33books, records, and accounts relating thereto of the cemetery
34authority, and retain possession subject to the order of the court.
35Any person having possession of and refusing to deliver any assets,
36 books, or records of a cemetery authority against which a seizure
37order has been issued by the bureau shall be guilty of a
38 misdemeanor and punishable by a fine not exceeding one thousand
39dollars ($1,000) or imprisonment not exceeding one year, or by
40both that fine and imprisonment.

P25   1

7614.  

If any city, county, or city and county exercises its
2authority to address public health, safety, or welfare issues in
3connection with a cemetery within its jurisdiction and if the
4certificate of authority of the cemetery has been revoked or
5suspended or has not been renewed, and the bureau holds the
6endowment care fund of the certificate of authority under applicable
7provisions of this code, the costs of any action that constitutes
8care, maintenance, or embellishment of the cemetery within the
9meaning of Section 8726 of the Health and Safety Code shall be
10eligible for reimbursement from available income from any
11endowment care fund in existence for the cemetery. For purposes
12of this section, local jurisdiction action may be based on charter,
13 ordinance, or inherent police powers. Any claim for money or
14damages for an act or omission by the local jurisdiction acting in
15accord with this section shall be subject to all otherwise applicable
16immunities contained in Division 3.6 (commencing with Section
17810) of Title 1 of the Government Code.

18

7614.1.  

Whenever the bureau makes any seizure as provided
19in Section 7613.10, it shall, on demand of the bureau, be the duty
20of the sheriff of any county of this state, and of the police
21department of any municipal corporation therein, to furnish the
22bureau with deputies, patrolmen, or officers as may be necessary
23to assist the bureau in making and enforcing that seizure.

24

7614.2.  

Immediately after effecting a seizure pursuant to
25Section 7613.10, the bureau shall institute a proceeding as provided
26for in Section 7613.9.

27

7614.3.  

Notwithstanding any other law, the bureau shall be the
28custodian of all moneys collected or surrendered pursuant to
29Sections 7613.9 and 7613.10. As custodian, the bureau may deposit
30those moneys, or any part thereof, without court approval, in any
31of the following: a bank or trust company legally authorized and
32empowered by the state to act as a trustee in the handling of trust
33funds; in a centralized State Treasury system bank account; or in
34funds administered by the State Treasurer.

35

7614.4.  

The bureau shall maintain, regulate, operate, and
36control the property situated in the County of Amador, referred to
37as the Elkin Property in Judicial Council Coordination Proceedings
38Nos. 1814 and 1817, Order Re Proposed Neptune Memorial,
39Disposition of the Elkin Property, and Order Re Final Disposition
40of Ashes of the Sacramento Superior Court, and legally described
P26   1as “Parcel 16-B as shown on the certain Record or Survey for
2Eugene S. Lowrance, et ux, filed for record May 17, 1971, in Book
317 of Maps and Plats at page 87, Amador County Records.” The
4bureau shall administer and supervise endowment funds established
5by the court for the property. The bureau shall exercise the
6authority granted by this section for the sole purpose of protecting
7the human remains resting on the property and preserving the
8property in its natural state.

9

7614.5.  

The bureau is authorized to bring action to enforce the
10provisions of the law subject to its jurisdiction, in which actions
11it shall be represented by the Attorney General.

12

7614.6.  

The bureau shall enforce and administer Part 1
13(commencing with Section 8100), Part 3 (commencing with Section
148250), and Part 5 (commencing with Section 9501) of Division 8
15of the Health and Safety Code.

16

7614.7.  

In any report to the bureau, all bonds, debentures, or
17other evidences of debt held by a cemetery corporation if amply
18secured and if not in default as to principal or interest may be
19valued as follows:

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

21(b) If purchased above or below par on the basis of the purchase
22price adjusted so as to bring the value to par at maturity and so as
23to yield the effective rate of interest on the basis at which the
24purchase was made.

25(c) In such valuation, the purchase price shall in no case be
26taken at a higher figure than the actual market value at the time of
27purchase.

28

7614.8.  

Any security or other evidence of debt if in default as
29to principal or interest or if not amply secured shall not be valued
30as an asset of the endowment care fund above its market value.

31

7614.9.  

Notwithstanding any other law, every cemetery
32authority shall present to the survivor of the deceased who is
33handling the burial or cremation arrangements or the responsible
34party a copy of any preneed agreement that has been signed and
35paid in full, or in part, by or on behalf of the deceased and is in
36the possession of the cemetery authority. The copy may be
37presented in person, by certified mail, or by facsimile transmission,
38as agreed upon by the survivor of the deceased or the responsible
39party. A cemetery authority who knowingly fails to present the
40preneed agreement to the survivor of the deceased or the
P27   1responsible party shall be liable for a civil fine equal to three times
2the cost of the preneed agreement, or one thousand dollars ($1,000),
3 whichever is greater.

4

SEC. 14.  

Section 7619.2 of the Business and Professions Code
5 is repealed.

6

SEC. 15.  

Section 7620 of the Business and Professions Code
7 is repealed.

8

SEC. 16.  

Section 7621 of the Business and Professions Code
9 is repealed.

10

SEC. 17.  

Section 7622.2 of the Business and Professions Code
11 is amended to read:

12

7622.2.  

A person shall not open or maintain a place or
13establishment at which to engage in or conduct, or hold himself,
14herself, or itself out as engaging in or conducting, the activities of
15a funeral director without a license.

16

SEC. 18.  

Article 2.5 (commencing with Section 7637) is added
17to Chapter 12 of Division 3 of the Business and Professions Code,
18to read:

19 

20Article 2.5.  Cemetery Brokerage Regulations
21

 

22

7637.  

This article does not apply to the following cases or to
23the following persons:

24(a) A person acting with reference to an occasional sale of his
25or her own property.

26(b) The regular officers of a cemetery corporation holding a
27certificate of authority acting with reference to the corporation’s
28property when they receive no special compensation therefor.

29(c) Persons making an occasional sale under a duly executed
30power of attorney from others.

31(d) The services rendered by an attorney at law in performing
32his or her duties in that capacity.

33(e) A receiver, trustee in bankruptcy, any person acting under
34orders of any court, or a trustee selling under a deed of trust.

35(f) A real estate broker or real estate salesperson, acting in that
36capacity in connection with the sale, lease, or exchange of real
37property, or interest therein, when the transfer of cemetery property
38is purely incidental to the sale, lease, or exchange of real property.

39

7637.1.  

A person shall not engage in the business of, act in the
40capacity of, or advertise or assume to act as, a cemetery broker or
P28   1cemetery salesperson in this state without first obtaining a license
2from the bureau.

3

7637.2.  

Any act other than an occasional sale of buying or
4selling, leasing, or exchanging cemetery property or interment
5services of or for another or on his or her own account, or offering
6for another or for his or her own account to buy or sell, lease, or
7exchange cemetery property or interment services, or negotiating
8the purchase or sale, lease, or exchange of cemetery property or
9interment services, or negotiating the purchase or sale, lease, or
10exchange, or listing or soliciting, or negotiating a loan on or leasing
11of cemetery property or interment services constitutes the person
12making such offer, sale or purchase, lease, or exchange, or
13negotiating the loan, or listing or soliciting, a cemetery broker or
14cemetery salesperson.

15

7637.3.  

A person engaged in the business or acting in the
16capacity of a cemetery broker or a cemetery salesperson within
17this state shall not bring or maintain any action in the courts of
18this state for the collection of compensation for the performance
19of any of the acts mentioned in this article without alleging and
20proving that he or she was a duly licensed cemetery broker or
21cemetery salesperson at the time the alleged cause of action arose.

22

7637.4.  

(a) A cemetery broker shall not employ or compensate,
23directly or indirectly, any person for performing any of the acts
24within the scope of this article who is not a licensed cemetery
25broker, or a cemetery salesperson licensed under the cemetery
26broker employing or compensating him or her. A cemetery
27salesperson shall not be employed by or accept compensation from
28any person other than the cemetery broker under whom he or she
29is at the time licensed.

30(b) A salesperson shall not pay any compensation for performing
31any of the acts within the scope of this article to any licensee except
32through the cemetery broker under whom he or she is at the time
33licensed.

34(c) For a violation of any of the provisions of this section, the
35bureau may temporarily suspend or permanently revoke the license
36of the cemetery licensee in accordance with the provisions of this
37act relating to disciplinary proceedings.

38

7637.5.  

(a) It is a misdemeanor, punishable by a fine not
39exceeding one hundred dollars ($100) for each offense, for any
40person, whether obligor, escrowholder, or otherwise, to pay or
P29   1deliver to anyone a compensation for performing any of the acts
2within the scope of this article who is not known to be or who does
3not present evidence to such payer that he or she is a licensed
4cemetery broker at the time compensation is earned.

5(b) For violation of any of the provisions of this section, the
6bureau may temporarily suspend or permanently revoke the license
7of the cemetery licensee in accordance with the provisions of this
8 act relating to disciplinary proceedings.

9

7637.6.  

Any person acting as a cemetery broker or cemetery
10salesperson without a license, or who advertises so as to indicate
11he or she is a cemetery broker without being so licensed, is guilty
12of a misdemeanor. If that person is a corporation, it shall be
13punished by a fine not to exceed five thousand dollars ($5,000).

14

7637.7.  

(a) Any cemetery salesperson or cemetery broker who
15sells, causes to be sold, or offers for sale any cemetery property
16upon the promise, guarantee, or representation to the purchaser
17that the same may be resold or repurchased at a financial profit is
18guilty of a misdemeanor.

19(b) For violation of any of the provisions of this section, the
20bureau may temporarily suspend or permanently revoke the license
21of the cemetery salesperson or cemetery broker in accordance with
22the provisions of this act relating to disciplinary proceedings.

23(c) No violation of any of the provisions of this section by any
24cemetery salesperson or employee of any licensed cemetery broker
25shall cause the suspension or revocation of the license of the
26employer of the salesperson or employee unless it appears upon a
27hearing by the bureau that the employer had guilty knowledge of
28the violation.

29

7637.8.  

Every officer, agent, or employee of any company,
30and every other person who knowingly authorizes, directs, or aids
31in the publication, advertisement, distribution, or circulation of
32any false statement or representation concerning any cemetery or
33cemetery brokerage business and every person who, with
34knowledge that any advertisement, pamphlet, prospectus, or letter
35concerning any cemetery brokerage business or any written
36statement that is false or fraudulent, issues, circulates, publishes,
37or distributes the same, or causes it to be issued, circulated,
38published, or distributed, or who in any other respect willfully
39violates or fails, omits, or neglects to obey, observe, or comply
40with any order, permit, decision, demand, or requirement of the
P30   1bureau under the provisions of this act relating to cemetery
2brokerage, is guilty of a misdemeanor, and, if a cemetery licensee,
3he or she shall be held to trial by the bureau for a suspension or
4revocation of his or her cemetery license, as provided in the
5provisions of this act relating to disciplinary proceedings.

6

7637.9.  

Each cemetery broker, other than a cemetery
7corporation holding a certificate of authority, and each cemetery
8salesperson shall include in any advertising a statement that he or
9she is acting as a cemetery broker or cemetery salesperson.

10

7637.10.  

For violation of any of the provisions of Section
117637.9, the bureau may temporarily suspend or permanently revoke
12the license of the cemetery licensee in accordance with the
13provisions of this act relating to disciplinary proceedings.

14

7638.  

Any person, other than a person making an occasional
15sale, who advertises cemetery property for sale or exchange,
16without being duly licensed as a cemetery broker or a cemetery
17salesperson, or without possessing a certificate of authority as a
18cemetery corporation, is guilty of a misdemeanor. If such person
19is a corporation, it shall be punished by a fine of not to exceed five
20thousand dollars ($5,000).

21

SEC. 19.  

Article 3.5 (commencing with Section 7651) is added
22to Chapter 12 of Division 3 of the Business and Professions Code,
23to read:

24 

25Article 3.5.  Licenses and Certificates of Authority
26

 

27

7651.  

Application for license as a cemetery broker shall be
28made in writing on the form prescribed by the bureau and filed at
29the principal office of the bureau. The application shall be
30accompanied by the original cemetery broker’s license fee.

31

7651.1.  

The bureau shall not grant an original cemetery
32broker’s license to any person who is not a resident of this state.
33Change of residence to another state shall terminate the license.

34

7651.2.  

The bureau shall not grant an original cemetery
35broker’s license to any person who has not held a cemetery
36salesperson’s license for at least two years prior to the date of his
37or her application for the broker’s license, and during that time
38was not actively engaged in the business of a cemetery salesperson
39except that if an applicant for a cemetery broker’s license having
40at least the equivalent of two years’ general cemetery experience
P31   1files a written petition with the bureau setting forth his or her
2qualifications and experience and the bureau approves, he or she
3may be issued a cemetery broker’s license immediately upon
4passing the appropriate examinations and satisfying the other
5requirements of this article.

6

7651.3.  

Application for license as a cemetery salesperson shall
7be made in writing on the form prescribed by the bureau and filed
8at the principal office of the bureau. The application shall be signed
9by the applicant, and shall be accompanied by the cemetery
10salesperson’s license fee.

11

7651.4.  

Notwithstanding any other provision of this chapter,
12Section 7651.7 does not apply to an applicant for a cemetery
13salesperson’s license.

14

7651.5.  

The bureau shall investigate the qualifications of the
15applicants. Except as otherwise prescribed in this article, it may
16issue the license applied for to an applicant on a showing
17satisfactory to it that the following facts exist:

18(a) The applicant is properly qualified to perform the duties of
19a cemetery broker or salesperson.

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

21(c) The applicant intends actively and in good faith to carry on
22the business of a cemetery broker or a cemetery salesperson.

23(d) In the case of a corporate applicant, the articles of
24incorporation permit it to act as a cemetery broker.

25(e) In the case of an association or copartnership applying for
26such a license, its articles of association or agreement of partnership
27authorize it to act as a cemetery broker.

28(f) The license is not being secured for the purpose of permitting
29the applicant to advertise as a cemetery broker or salesperson
30without actually engaging in such business.

31(g) The applicant has not committed acts or crimes constituting
32grounds for denial of licensure under Section 480.

33

7651.6.  

All cemetery brokers who do not possess a certificate
34of authority shall, in addition to the requirements of this chapter,
35file with the bureau a satisfactory bond to the people of the State
36of California, duly executed by a sufficient surety or sureties to
37be approved by the bureau, in the amount of ten thousand dollars
38($10,000). That bond shall be conditioned for the honest and
39faithful performance by such broker and his or her salespersons
40and employees of any undertaking as a licensed cemetery broker
P32   1or salesperson or employee of said broker at any time when
2licensed under this chapter, and the strict compliance with the
3provisions of this chapter and of Division 8 (commencing with
4Section 8100) of the Health and Safety Code, relating to cemeteries,
5and the honest and faithful application of all funds received. That
6 bond shall be further conditioned upon the payment of all damages
7suffered by any person damaged or defrauded by reason of the
8violation of any of the provisions of this chapter or of Division 8
9(commencing with Section 8100) of the Health and Safety Code
10relating to cemeteries, or by reason of the violation of the obligation
11of such broker as an agent, as such obligations are laid down by
12the Civil Code, or by reason of any fraud connected with or
13growing out of any transactions contemplated by this chapter or
14Division 8 (commencing with Section 8100) of the Health and
15Safety Code.

16

7651.7.  

The bureau shall ascertain by written examination that
17the applicant, and, in case of a copartnership or corporation
18applicant for a cemetery broker’s license, that each officer, agent,
19or member thereof through whom it proposes to act as a cemetery
20licensee has:

21(a) Appropriate knowledge of the English language, including
22reading, writing, and spelling, and of elementary arithmetic.

23(b) A fair understanding of:

24(1) Cemetery associations, cemetery corporations, and duties
25of directors.

26(2) Plot ownership, deeds, certificates of ownership, contracts
27of sale, liens, and leases.

28(3) Establishing, dedicating, maintaining, managing, operating,
29improving, and conducting a cemetery.

30(4) The care, preservation, and embellishment of cemetery
31property.

32(5) The care and preservation of endowment care funds, trust
33funds, and the investment thereof.

34(c) A general and fair understanding of the obligations between
35principal and agent, of the principles of cemetery brokerage
36practice and the business ethics pertaining thereto, as well as of
37the provisions of this act relating to cemetery brokerage.

38

7651.8.  

The bureau may, in its discretion, waive the
39examination of any applicant for a cemetery broker’s license who
40held an unrevoked or unsuspended cemetery license on June 30
P33   1of the preceding fiscal year as an individual broker, an officer of
2a corporation, or member of a copartnership.

3

7651.9.  

An application on the form prescribed by the bureau
4for the renewal of any unrevoked and unsuspended license filed
5before midnight of June 30 of the year for which such unrevoked
6and unsuspended license was issued, accompanied by the
7applicable renewal fee, entitles the applicant to continue operating
8under his or her existing license after its usual expiration date, if
9not previously suspended or revoked, and until such date as he or
10she is notified in writing that the application has been granted or
11denied.

12

7651.10.  

A cemetery license does not give authority to do any
13act specified in this act to any person other than the person to whom
14the license is issued.

15

7652.  

When a cemetery brokerage license is issued to a
16cemetery brokerage corporation, if it desires any of its officers
17other than the officer through whom it is already licensed to act
18under its license as a cemetery broker, it shall procure an additional
19license for each such officer. When a cemetery brokerage license
20is granted to cemetery brokerage copartnership, if it desires any
21of its members other than the one through whom it is already
22licensed to act as a cemetery broker, it shall procure an additional
23license for each such member.

24

7652.1.  

Each officer of a corporation through whom it is
25licensed to act as a cemetery broker, and each member of a
26copartnership through whom it is licensed to act as a cemetery
27broker, is, while so employed under such license, a licensed
28cemetery broker, but licensed only to act as such for and on behalf
29of the corporation or the copartnership, as officer or member,
30respectively.

31

7652.2.  

The cemetery licenses of both broker and salesperson
32shall be prominently displayed in the office of the broker.

33The cemetery salesperson’s license shall remain in the possession
34of the licensed cemetery broker employer until canceled or until
35the salesperson leaves the employ of the broker.

36

7652.3.  

Immediately upon the salesperson’s withdrawal from
37the employ of the broker, the broker shall return the salesperson’s
38license to the bureau for cancellation. A license canceled but not
39suspended or revoked may be reinstated within the fiscal year upon
P34   1receipt of application therefor and the fee for the reinstatement of
2the license.

3

7652.4.  

(a) Every licensed cemetery broker shall have and
4maintain a definite place of business in this state which shall serve
5as his or her office for the transaction of business.

6(b) No cemetery license authorizes the licensee to do business
7except from the location for which the cemetery license was issued.

8(c) Notice in writing shall be given the bureau of change of
9business location of a cemetery broker, whereupon the bureau shall
10issue a new cemetery license for the unexpired period. The change
11or abandonment of business location without notification to the
12bureau shall automatically cancel the license theretofore issued.

13

7652.5.  

(a) If the applicant for a cemetery broker’s license
14maintains more than one place of business within the state, he or
15she shall apply for and procure an additional license for each branch
16office so maintained. Every such application shall state the name
17of the person and the location of the place of business for which
18such license is desired.

19(b) The bureau may determine whether or not a broker is doing
20a cemetery brokerage business at or from any particular location
21which requires him or her to have a branch office license.

22

7652.6.  

Each cemetery broker shall erect and maintain a sign
23in a conspicuous place on the premises to indicate that he or she
24is a licensed cemetery broker and his or her name shall be clearly
25shown thereon. The size and place of the sign shall conform to
26regulations that may be adopted by the bureau.

27

7652.7.  

For a violation of any of the provisions of Sections
287652.2, 7652.3, 7652.4, and 7652.6, the bureau may temporarily
29suspend or permanently revoke the license of the cemetery licensee
30in accordance with the provisions of this act relating to disciplinary
31proceedings.

32

7652.8.  

Application for a certificate of authority shall be made
33in writing on the form prescribed by the bureau and filed at the
34principal office of the bureau. The application shall be accompanied
35by the fee provided for in this act and shall show that the cemetery
36authority owns or is actively operating a cemetery in this state
37which is subject to the provisions of the act or that the applicant
38is in a position to commence operating a cemetery.

39

7652.9.  

Each cemetery for which a certificate of authority is
40required shall be operated under the supervision of a manager who
P35   1is qualified in accordance with the regulations adopted by the
2bureau. Each cemetery manager shall be required to successfully
3pass a written examination evidencing an understanding of the
4applicable provisions of this code and of the Health and Safety
5Code. A person shall not engage in the business of, act in the
6capacity of, or advertise or assume to act as, a cemetery manager
7without first obtaining a license from the bureau.

8

7652.10.  

The bureau may require such proof as it deems
9advisable concerning the compliance by such applicant to all the
10laws, rules, regulations, ordinances and orders applicable.

11

7653.  

(a) The bureau shall adopt, and may from time to time
12amend, rules and regulations prescribing standards of knowledge
13and experience and financial responsibility for applicants for
14certificates of authority. In reviewing an application for a certificate
15of authority, the bureau may consider acts of incorporators, officers,
16directors, and stockholders of the applicant, which shall constitute
17grounds for the denial of a certificate of authority under Division
181.5 (commencing with Section 475).

19(b) Upon receipt of an application for a certificate of authority,
20the bureau may cause an investigation to be made of the physical
21status, plans, specifications, and financing of the proposed
22cemetery, and any other qualifications required of the applicant
23under this act, and for this purpose may subpoena witnesses,
24administer oaths, and take testimony.

25(c) At the time of the filing of the application required by this
26section, the applicant shall pay to the Cemetery Fund the sum fixed
27by the bureau at not in excess of four hundred dollars ($400) to
28defray the expenses of investigation. In the event the sum shall be
29insufficient to defray all of the expenses, the applicant shall within
30five days after request therefor deposit an additional sum sufficient
31to defray such expenses, provided that the total sum shall not
32exceed nine hundred dollars ($900).

33(d) This section shall remain in effect only until July 1, 2016,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before July 1, 2016, deletes or extends that date.

36

7653.  

(a) The bureau shall adopt, and may from time to time
37amend, rules and regulations prescribing standards of knowledge
38and experience and financial responsibility for applicants for
39certificates of authority. In reviewing an application for a certificate
40of authority, the bureau may consider acts of incorporators, officers,
P36   1directors, and stockholders of the applicant, which shall constitute
2grounds for the denial of a certificate of authority under Division
31.5 (commencing with Section 475).

4(b) Upon receipt of an application for a certificate of authority,
5the bureau may cause an investigation to be made of the physical
6status, plans, specifications, and financing of the proposed
7cemetery, and any other qualifications required of the applicant
8under this act, and for this purpose may subpoena witnesses,
9administer oaths, and take testimony.

10(c) At the time of the filing of the application required by this
11section, the applicant shall pay to the Cemetery and Funeral Fund
12the sum fixed by the bureau at not in excess of four hundred dollars
13($400) to defray the expenses of investigation. In the event the
14sum shall be insufficient to defray all of the expenses, the applicant
15shall, within five days after request, deposit an additional sum
16sufficient to defray those expenses, provided that the total sum
17shall not exceed nine hundred dollars ($900).

18(d) This section shall become operative on July 1, 2016.

19

7653.1.  

(a) The bureau may, in accordance with its rules and
20regulations, authorize interments in cemeteries for which there is
21no currently valid certificate of authority outstanding if the bureau
22finds that rights to interment therein will otherwise be impaired.
23However, nothing in this section authorizes sales of lots, vaults,
24or niches by cemeteries for which there is no currently valid
25certificate of authority. Interments permitted under this section
26shall be conducted by persons authorized by the bureau in
27accordance with its regulations, and Section 7731.2 shall not be
28applicable to such interments.

29(b) The bureau or its representative shall be entitled to inspect
30and copy any cemetery records necessary to the performance of
31interments under this section, and any person having custody of
32those records shall permit inspection and copying thereof for that
33purpose. The bureau may apply to the superior court for the county
34in which the cemetery is located for an order temporarily
35transferring custody of cemetery records to it for purposes of this
36section.

37

7653.2.  

The bureau shall inspect the books, records, and
38premises of any crematory licensed under this chapter. In making
39those inspections, the bureau shall have access to all books and
40records, the crematory building, the cremation chambers or
P37   1furnaces, and the storage areas for human remains before and after
2cremation, during regular office hours or the hours the crematory
3is in operation. No prior notification of the inspection is required
4to be given to the crematory licensee. If any crematory licensee
5fails to allow that inspection or any part thereof, it shall be grounds
6for the suspension or revocation of a license or other disciplinary
7action against the licensee. All proceedings under this section shall
8be conducted in accordance with the provisions of this chapter
9relating to disciplinary proceedings.

10

7653.3.  

The bureau shall annually conduct a minimum of one
11unannounced inspection of each licensed crematory.

12

7653.4.  

The bureau shall inspect the books, records, and
13premises of any cemetery where a certificate of authority is
14required under this chapter. In making the inspections, the bureau
15shall have access to all books and records, buildings, mausoleums,
16columbariums, storage areas, including storage areas for human
17remains, during regular office hours or the hours the cemetery is
18in operation. No prior notification of the inspection is required to
19be given to the holder of the certificate of authority. If any
20certificate holder fails to allow the inspection or any part thereof,
21disciplinary action, including, but not limited to, revocation or
22suspension may be taken against the certificate of authority. All
23disciplinary proceedings shall be conducted in accordance with
24this chapter.

25

7653.5.  

The bureau shall annually conduct a minimum of one
26unannounced inspection of each cemetery for which a certificate
27of authority is required.

28

7653.6.  

A cemetery licensed under this chapter shall at all times
29employ a licensed cemetery manager to manage, supervise, and
30direct its operations. Notwithstanding any other provision of this
31chapter, licensed cemeteries within close geographical proximity
32of each other may request the bureau to allow a licensed cemetery
33manager to manage, supervise, and direct the business or profession
34of more than one facility.

35(a) Every cemetery shall designate a licensed cemetery manager
36to manage the cemetery, and shall report the designation to the
37bureau within 10 days of the effective date. Any change in the
38designated manager shall be reported to the bureau within 10 days.

39(b) The designated cemetery manager shall be responsible for
40exercising direct supervision and control over the operations,
P38   1employees, and agents of the cemetery as is necessary to ensure
2full compliance with the applicable provisions of this code, the
3Health and Safety Code, and any regulations adopted thereto.
4Failure of the designated cemetery manager or the licensed
5cemetery to exercise that supervision or control shall constitute a
6ground for disciplinary action.

7(c) A cemetery may employ, in addition to the designated
8cemetery manager, additional licensed cemetery managers.
9However, only one licensed cemetery manager may be appointed
10as the designated cemetery manager of the cemetery.

11

7653.7.  

(a) Application for a cemetery manager license shall
12be made in writing on the form provided by the bureau, verified
13by the applicant, and filed at the principal office of the bureau.
14The application shall be accompanied by the fee fixed by this
15chapter.

16(b) The applicant for a cemetery manager license shall be at
17least 18 years of age, possess a high school diploma or its
18equivalent, shall not have committed acts or crimes constituting
19grounds for denial of licensure under Section 480, shall
20demonstrate compliance with the training and experience
21requirements established by the bureau, and shall be a resident of
22this state.

23(c) The bureau shall grant a cemetery manager license to any
24applicant who meets the requirements of this chapter and who has
25successfully passed the cemetery manager examination
26administered by the bureau.

27

7653.8.  

(a) A person shall not engage in or conduct, or hold
28himself or herself out as engaging in or conducting, the activities
29of a cemetery manager without holding a valid, unexpired cemetery
30manager license issued by the bureau.

31(b) A licensed cemetery manager shall not engage in or conduct,
32or hold himself or herself out as engaging in or conducting, the
33activities of a cemetery manager without being employed by, or
34without being a corporate officer of a licensed cemetery.

35

7653.9.  

(a) Notwithstanding any other law, based upon a
36finding by a court of competent jurisdiction that a cemetery
37manager of a private cemetery has ceased to perform his or her
38duties, as described in subdivision (a) of Section 7611.4, due to a
39lapse, suspension, surrender, abandonment, or revocation of his
40or her license, the court may appoint a temporary manager to
P39   1manage the cemetery property and to service the prepaid interments
2of the private cemetery. The court shall appoint a licensed cemetery
3manager as the temporary manager.

4(b) The appointed temporary manager shall have the same
5powers over the care and maintenance of the private cemetery as
6a licensed cemetery manager, as described in subdivision (a) of
7Section 7611.4. The temporary manager shall serve for a limited
8term not to exceed six months, or until a new licensed manager
9has been hired, at which time the court shall terminate the
10appointment of the temporary manager.

11(c) The court may authorize the payment of reasonable
12compensation for the temporary manager’s services, which shall
13be paid by the trustees from available income from the cemetery.
14In exercising its discretion pursuant to this subdivision, the court
15shall give due consideration to the ability of the cemetery income
16to otherwise pay for care and maintenance of the cemetery.

17

SEC. 20.  

Article 4.5 (commencing with Section 7672) is added
18to Chapter 12 of Division 3 of the Business and Professions Code,
19to read:

20 

21Article 4.5.  Cremated Remains Disposer
22

 

23

7672.  

A person shall not dispose of or offer to dispose of any
24cremated human remains unless registered as a cremated remains
25disposer by the bureau. This article shall not apply to any person,
26partnership, or corporation holding a certificate of authority as a
27cemetery, crematory license, cemetery broker’s license, cemetery
28salesperson’s license, or funeral director’s license, nor shall this
29article apply to any person having the right to control the
30disposition of the cremated remains of any person or that person’s
31designee if the person does not dispose of or offer to dispose of
32more than 10 cremated human remains within any calendar year.

33

7672.1.  

(a) Registration shall be on the form prescribed by the
34bureau and shall include, but not be limited to, the full name of
35the registrant, business and residence addresses, description and
36identification of aircraft or boats which may be used in dispensing
37cremated human remains, and the area to be served. Each
38registration application shall be accompanied by the cremated
39remains disposer fee.

P40   1(b) Every registered cremated remains disposer who dispenses
2human remains by air shall post a copy of his or her current pilot’s
3license, and the address of the cremated remains storage area at
4his or her place of business. Every registered cremated remains
5disposer who dispenses human remains by boat shall post a copy
6of his or her current boating license and the address of the cremated
7remains storage area at his or her place of business.

8

7672.2.  

The bureau shall prepare and deliver to each registered
9cremated remains disposer a booklet that includes, but is not limited
10 to, the following information: details about the registration and
11renewal requirements for cremated remains disposers; requirements
12for obtaining state permits to dispose of cremated human remains;
13state storage requirements, if any; statutory duties pursuant to this
14article, and other applicable state laws.

15

7672.3.  

All aircraft used for the scattering of cremated human
16remains shall be validly certified by the Federal Aviation
17Administration. All boats or vessels used for the scattering of
18cremated human remains shall be registered with the Department
19of Motor Vehicles or documented by a federal agency, as
20appropriate. The certification or registration shall be available for
21inspection by the bureau.

22

7672.4.  

A cremated remains disposer who scatters any cremated
23human remains without specific written instructions from the
24person having the right to control the disposition of the remains
25or who scatters any remains in a manner not in accordance with
26those instructions shall be subject to disciplinary action.

27

7672.5.  

Each cremated remains disposer shall provide the
28person with the right to control the disposition of the remains under
29Section 7100 of the Health and Safety Code with a copy of the
30completed permit for disposition of human remains pursuant to
31Chapter 8 (commencing with Section 103050) of Part 1 of Division
32102 of the Health and Safety Code within 30 days of the date of
33the scattering.

34

7672.6.  

(a) Every cremated remains disposer shall do both of
35the following:

36(1) Dispose of cremated remains within 60 days of the receipt
37of those remains, unless a written signed reason for a delay is
38presented to the person with the right to control the disposition of
39the remains under Section 7100 of the Health and Safety Code.

P41   1(2) Provide the bureau with the address and telephone number
2of any storage facility being used by the registrant to store cremated
3remains. Cremated remains shall be stored in a place free from
4exposure to the elements, and shall be responsibly maintained until
5disposal. The bureau and its representatives shall conduct, on an
6annual basis, random inspections of the operations of 5 to 10
7percent of the registered cremated remains disposers, and is
8authorized to inspect any place used by a cremated remains
9disposer for the storage of cremated remains without notice to the
10cremated remains disposer.

11(b) A violation of the requirements of this section is grounds
12for disciplinary action.

13

7672.7.  

(a) Each cremated remains disposer shall file, and
14thereafter maintain an updated copy of, an annual report on a form
15prescribed by the bureau. The report shall include, but not be
16limited to, the names of the deceased persons whose cremated
17remains were disposed of, the dates of receipt of the cremated
18remains, the names and addresses of the persons who authorized
19disposal of those remains, the dates and locations of disposal of
20those remains, and the means and manner of disposition. The report
21shall cover the fiscal year ending on June 30 and shall be filed
22with the bureau no later than September 30 of each year.

23(b) Any cremated remains disposer that makes a willful and
24 material false statement regarding the disposal of cremated remains
25in the annual report filed or updated pursuant to subdivision (a)
26shall be subject to disciplinary action.

27(c) Any cremated remains disposer that makes a willful and
28material false statement in the annual report filed or updated
29pursuant to subdivision (a) shall be guilty of a misdemeanor.

30

7672.8.  

All cremated remains disposer registrations shall expire
31at midnight on September 30 of each year. A person desiring to
32renew his or her registration shall file an application for renewal
33on a form prescribed by the bureau accompanied by the required
34fee. A registration that has expired may be renewed within five
35years of its expiration upon payment of all accrued and unpaid
36renewal fees. The bureau shall not renew the registration of any
37person who has not filed the required annual report until he or she
38has filed a complete annual report with the department.

39

7672.9.  

If a person fails to apply for renewal of his or her
40cremated remains disposer registration prior to midnight of
P42   1September 30 of the year for which the registration was issued, no
2renewal shall be issued except upon payment of the delinquent
3renewal fee required under Section 7729.2.

4

7672.10.  

Any person who scatters cremated human remains
5without a valid registration and who is not otherwise exempt from
6this article shall be guilty of a misdemeanor. The remains of each
7person scattered shall constitute a separate violation.

8

7673.  

Any person who scatters any cremated human remains
9without specific written instructions from the person having the
10right to control the disposition of the remains or who scatters any
11remains in a manner not in accordance with those instructions shall
12be guilty of a misdemeanor.

13

7673.1.  

Any cremated remains disposer who stores cremated
14remains in a reckless manner that results in either of the following
15is guilty of a public offense punishable by imprisonment in a
16county jail not exceeding one year or by a fine not to exceed five
17thousand dollars ($5,000), or by both that fine and imprisonment:

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

19(b) Inability to individually identify the cremated remains.

20

7673.2.  

A cremated remains disposer shall be subject to and
21shall be disciplined by the bureau in accordance with Article 6
22(commencing with Section 7686). Any violation of this article
23shall also be grounds for disciplinary action.

24

SEC. 21.  

Section 7685.3 of the Business and Professions Code
25 is amended to read:

26

7685.3.  

The current address, telephone number, and name of
27the Department of Consumer Affairs, Cemetery and Funeral Bureau
28shall appear on the first page of any contract for goods and services
29offered by a licensee. At a minimum, the information shall be in
308-point boldface type and make this statement:
31


32“FOR MORE INFORMATION ON FUNERAL, CEMETERY,
33AND CREMATION MATTERS, CONTACT: DEPARTMENT
34OF CONSUMER AFFAIRS, CEMETERY AND FUNERAL
35BUREAU (ADDRESS), (TELEPHONE NUMBER).”
36


37

SEC. 22.  

Section 7685.5 of the Business and Professions Code
38 is amended to read:

39

7685.5.  

(a) The bureau shall make available to funeral
40establishments and cemetery authorities a copy of a consumer
P43   1guide for funeral and cemetery purchases for purposes of
2reproduction and distribution. The funeral and cemetery guide that
3is approved by the bureau, in consultation with the funeral and
4cemetery industries and any other interested parties, shall be made
5available in printed form and electronically through the Internet.

6(b) A licensee shall prominently display and make available to
7any individual who, in person, inquires about funeral or cemetery
8purchases, a copy of the consumer guide for funeral and cemetery
9purchases, reproduced as specified in subdivision (a).

10(c) Prior to the drafting of a contract for services, the licensee
11shall provide, for retention, the consumer with a copy of the
12consumer guide for funeral and cemetery purchases described in
13subdivisions (a) and (b).

14

SEC. 23.  

Section 7711.1 is added to the Business and
15Professions Code
, to read:

16

7711.1.  

Unprofessional conduct by any licensee or registrant
17or by any agent or employee of a licensee or registrant constitutes
18grounds for disciplinary action. Unprofessional conduct includes,
19but is not limited to, the following:

20(a) Violating or attempting to violate, directly or indirectly, or
21assisting in or abetting the violation of this chapter and any
22regulation adopted thereunder, or of any federal or state law or
23regulation governing the disposition of human remains, operation
24of cemeteries or crematories, the sale of cemetery property, or the
25sale of crematory services or commodities.

26(b) Negligence in performing any act related to the operation
27of a cemetery or crematory.

28

SEC. 24.  

Section 7711.2 is added to the Business and
29Professions Code
, to read:

30

7711.2.  

The bureau may, upon its own motion, and shall, upon
31the verified complaint in writing of any person, investigate the
32actions of any person engaged in the business or acting in the
33capacity of a cemetery licensee, and may temporarily suspend or
34permanently revoke a license at any time where the licensee, within
35the immediately preceding three years, while a cemetery licensee
36in performing or attempting to perform any of the acts specified
37in this act, has been guilty of any of the following:

38(a) Making any substantial misrepresentation.

39(b) Making any false statement of a character likely to influence
40or persuade.

P44   1(c) A continued and flagrant course of misrepresentation or
2making of false promises through cemetery agents or salespersons.

3(d) Acting for more than one party in a transaction without the
4knowledge or consent of all parties thereto.

5(e) Commingling the money or other property of his or her
6principal with his or her own.

7(f) The practice of claiming or demanding a fee, compensation,
8or commission under any exclusive agreement authorizing or
9employing a licensee to sell, buy, or exchange cemetery property
10for compensation or commission where such agreement does not
11contain a definite, specified date of final and complete termination.

12(g) The claiming or taking by a licensee of any secret or
13undisclosed amount of compensation, commission, or profit or the
14failure of a licensee to reveal to the employer of such licensee the
15full amount of such licensee’s compensation, commission, or profit
16under any agreement authorizing or employing such licensee to
17sell, buy, or exchange cemetery property for compensation or
18commission prior to or coincident with the signing of such
19agreement evidencing the meeting of the minds of the contracting
20parties, regardless of the form of such agreement, whether
21evidenced by documents in an escrow or by any other or different
22procedure.

23(h) The use by a licensee of any provision allowing the licensee
24an option to purchase in an agreement authorizing or employing
25such licensee to sell, buy, or exchange cemetery property for
26compensation or commission, except when such licensee prior to
27or coincident with election to exercise such option to purchase
28reveals in writing to the employer the full amount of the licensee’s
29profit and obtains the written consent of the employer approving
30the amount of such profit.

31(i) Any other conduct, whether of the same or a different
32character than specified in this section, which constitutes fraud or
33dishonest dealing.

34(j) The misrepresentations and false statements mentioned in
35this section also include misrepresentation and false statements as
36to other property than that which the cemetery licensee may be
37selling or attempting to sell.

38

SEC. 25.  

Section 7711.3 is added to the Business and
39Professions Code
, to read:

P45   1

7711.3.  

The bureau may suspend or revoke the license of any
2cemetery licensee who, within the immediately preceding three
3years, has done any of the following:

4(a) Been convicted of a crime substantially related to the
5qualifications, functions, and duties of such licensee. The record
6of conviction, or a certified copy thereof, shall be conclusive
7evidence of such conviction.

8(b) Knowingly authorized, directed, connived at, or aided in the
9publication, advertisement, distribution, or circulation of any
10material false statement or representation concerning his or her
11business or any cemetery property offered for sale.

12(c) Willfully disregarded or violated any of the provisions of
13this act relating to cemetery brokerage.

14(d) Acted or conducted himself or herself in a manner which
15would have warranted the denial of his or her application for a
16cemetery license, or for a renewal thereof.

17

SEC. 26.  

Section 7711.4 is added to the Business and
18Professions Code
, to read:

19

7711.4.  

When any salesperson is discharged by his or her
20employer for a violation of any of the provisions of this article
21prescribing a ground for disciplinary action, a verified written
22statement of the facts with reference thereto shall be filed forthwith
23with the bureau by the employer and, if the employer fails to notify
24the bureau as required by this section, the bureau may temporarily
25suspend or permanently revoke the cemetery license of the
26employer in accordance with the provisions of this act.

27

SEC. 27.  

Section 7711.5 is added to the Business and
28Professions Code
, to read:

29

7711.5.  

The bureau may deny, suspend, or revoke the cemetery
30license of a corporation as to any officer or agent acting under its
31cemetery license, and the cemetery license of a copartnership as
32to any member acting under its cemetery license, without revoking
33the cemetery license of the corporation or of the copartnership.

34

SEC. 28.  

Section 7711.6 is added to the Business and
35Professions Code
, to read:

36

7711.6.  

The fees for cemetery licenses at all periods of the
37fiscal year is the same as provided in this article. All cemetery
38license fees are payable in advance of issuing the licenses and at
39the time of filing the application. All licenses shall be issued for
P46   1the fiscal year and shall expire on June 30 of each fiscal year at
2midnight.

3

SEC. 29.  

Section 7711.7 is added to the Business and
4Professions Code
, to read:

5

7711.7.  

(a) If a person fails to apply for a license renewal, no
6renewal license shall be issued except upon payment of the
7delinquent renewal fee required under Section 7729.2.

8(b) A person who fails to renew his or her license within one
9year of the expiration date shall not engage in any of the activities
10authorized by a license unless he or she first files the application
11required for an original license, pays the original license fee, and
12otherwise complies with all of the provisions of this act pertaining
13to the issuance of an original license.

14

SEC. 30.  

Section 7711.8 is added to the Business and
15Professions Code
, to read:

16

7711.8.  

The definitions contained in this article are solely for
17the purposes of this article.

18

SEC. 31.  

Section 7711.9 is added to the Business and
19Professions Code
, to read:

20

7711.9.  

An original cemetery broker’s license is a cemetery
21license issued to a person who did not have a cemetery broker’s
22license on June 30 of the fiscal year previous to the fiscal year for
23which the license is issued.

24

SEC. 32.  

Section 7711.10 is added to the Business and
25Professions Code
, to read:

26

7711.10.  

A renewal cemetery broker’s license is a cemetery
27license issued to a person who had a cemetery broker’s license
28unrevoked and unsuspended on June 30 of the fiscal year previous
29to the fiscal year for which the renewal cemetery license is issued.

30

SEC. 33.  

Section 7711.11 is added to the Business and
31Professions Code
, to read:

32

7711.11.  

An original cemetery salesperson’s license is a
33cemetery license issued to a person who did not have a cemetery
34salesperson’s or a broker’s license either individually or as an
35officer of a corporation, or as a member of a copartnership, on
36June 30 of the fiscal year previous to the fiscal year for which the
37salesperson’s license is issued.

38

SEC. 34.  

Section 7711.12 is added to the Business and
39Professions Code
, to read:

P47   1

7711.12.  

A renewal cemetery salesperson’s license is a
2cemetery license issued to a person who had a cemetery
3salesperson’s or a broker’s license either individually or as an
4officer of a corporation, or as a member of a copartnership, on
5June 30 of the fiscal year previous to the fiscal year for which the
6salesperson’s license is issued.

7

SEC. 35.  

Article 6.5 (commencing with Section 7712) is added
8to Chapter 12 of Division 3 of the Business and Professions Code,
9to read:

10 

11Article 6.5.  Crematories
12

 

13

7712.  

A crematory established, operated, or maintained, may
14be operated by a corporation, partnership, or natural person,
15provided that a valid crematory license shall have been issued by
16the bureau.

17

7712.1.  

Any change in the ownership of a crematory shall be
18reported to the bureau. Any transfer in a single transaction or a
19related series of transactions of more than 50 percent of the
20equitable interest in a licensed crematory shall constitute a change
21of ownership. When a change of ownership in a crematory occurs,
22the existing crematory license shall lapse and the new owner shall
23obtain a new license from the bureau as otherwise provided in this
24act. The bureau shall not require an applicant under this section to
25obtain any new permit or license from any other governmental
26agency when the existing permit or license is valid.

27

7712.2.  

Application for a crematory license shall be made in
28writing on the form prescribed by the bureau and filed at the
29principal office of the bureau. The application shall be accompanied
30by the fee provided for in this article and shall show that the
31applicant owns or is actively operating a crematory in this state or
32that the applicant is in a position to commence operating such a
33crematory.

34

7712.3.  

The provisions of Article 5 (commencing with Section
358341) of Chapter 2 of Part 3 of Division 8 of the Health and Safety
36Code shall apply to crematories licensed under this chapter.

37

7712.4.  

The bureau may require such proof as it deems
38advisable concerning the compliance by such applicant with all
39the laws, rules, regulations, ordinances, and orders applicable to
40the applicant and shall not issue such crematory license until it has
P48   1satisfied itself that the public interest will be served by such
2applicant.

3

7712.5.  

(a) The bureau shall adopt, and may from time to time
4amend, rules and regulations prescribing standards of knowledge
5and experience and financial responsibility for applicants for a
6crematory license. In reviewing an application for a crematory
7license, the bureau may consider acts of the applicant, including
8acts of incorporators, officers, directors, and stockholders of the
9applicant, which shall constitute grounds for the denial of a
10crematory license under Division 1.5 (commencing with Section
11475).

12(b) Upon receipt of an application for a crematory license, the
13bureau may cause an investigation to be made of the physical
14status, plans, specifications, and financing of the proposed
15crematory, the character of the applicant, including, if applicable,
16its officers, directors, shareholders, or members, and any other
17qualifications required of the applicant under this article, and for
18this purpose may subpoena witnesses, administer oaths, and take
19testimony.

20(c) At the time of the filing of the application required by this
21article, the applicant shall pay to the Cemetery Fund the sum fixed
22by the bureau at not in excess of four hundred dollars ($400) to
23defray the expenses of investigation. In the event the sum shall be
24insufficient to defray all of the expenses, the applicant shall within
25five days after request therefor deposit an additional sum sufficient
26to defray such expenses, provided that the total sum shall not
27exceed nine hundred dollars ($900).

28(d) This section shall remain in effect only until July 1, 2016,
29and as of that date is repealed, unless a later enacted statute, that
30 is enacted before July 1, 2016, deletes or extends that date.

31

7712.5.  

(a) The bureau shall adopt, and may from time to time
32amend, rules and regulations prescribing standards of knowledge
33and experience and financial responsibility for applicants for a
34crematory license. In reviewing an application for a crematory
35license, the bureau may consider acts of the applicant, including
36acts of incorporators, officers, directors, and stockholders of the
37applicant, which shall constitute grounds for the denial of a
38crematory license under Division 1.5 (commencing with Section
39475).

P49   1(b) Upon receipt of an application for a crematory license, the
2bureau may cause an investigation to be made of the physical
3status, plans, specifications, and financing of the proposed
4crematory, the character of the applicant, including, if applicable,
5its officers, directors, shareholders, or members, and any other
6qualifications required of the applicant under this article, and for
7this purpose may subpoena witnesses, administer oaths, and take
8testimony.

9(c)  At the time of the filing of the application required by this
10article, the applicant shall pay to the Cemetery and Funeral Fund
11the sum fixed by the bureau at not in excess of four hundred dollars
12($400) to defray the expenses of investigation. In the event the
13sum shall be insufficient to defray all of the expenses, the applicant
14shall, within five days after request therefor, deposit an additional
15sum sufficient to defray such expenses, provided that the total sum
16shall not exceed nine hundred dollars ($900).

17(d) This section shall become operative on July 1, 2016.

18

7712.6.  

A crematory licensee under this article shall not
19conduct any cremations:

20(a) Unless the licensee has a written contract with the person
21or persons entitled to custody of the remains clearly stating the
22location, manner, and time of disposition to be made of the remains,
23agreeing to pay the regular fees of the licensee for cremation,
24disposition, and other services rendered, and any other contractual
25provisions as may be required by the bureau.

26(b) Of any remains more than 24 hours after delivery of the
27remains, unless the remains have been preserved in the interim by
28refrigeration or embalming.

29(c) Unless the licensee has a contractual relationship with a
30licensed cemetery authority for final disposition of cremated human
31remains by burial, entombment, or inurnment of any and all
32remains which are not lawfully disposed of or which are not called
33for or accepted by the person or persons entitled to the custody
34and control of the disposition thereof within 90 days of the date
35of death.

36

7712.7.  

Every crematory licensee, who prohibits relatives or
37the responsible party from viewing the cremation process, shall
38disclose this fact in writing to the person or persons entitled to
39custody of the remains prior to the signing of any contract.

P50   1

7712.8.  

Each crematory licensee shall keep such records as
2may be required by the bureau to ensure compliance with all laws
3relating to the disposition of cremated human remains and shall
4file annually with the bureau, a report in the form prescribed by
5the bureau, describing the operations of the licensee, including the
6number of cremations made, the disposition thereof, and any other
7information as the bureau may, from time to time, require.

8

7712.9.  

(a) Every crematory licensee operating a crematory
9pursuant to a license issued in compliance with this article shall
10pay an annual regulatory charge for each crematory, to be fixed
11by the bureau at not more than four hundred dollars ($400). In
12addition to an annual regulatory charge for each crematory, every
13licensee operating a crematory pursuant to a license issued pursuant
14to this article shall pay an additional charge to be fixed by the
15bureau at not more than eight dollars and fifty cents ($8.50) per
16cremation made during the preceding quarter, which charges shall
17be deposited in the Cemetery Fund.

18(b) This section shall remain in effect only until July 1, 2016,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before July 1, 2016, deletes or extends that date.

21

7712.9.  

(a) Every crematory licensee operating a crematory
22pursuant to a license issued in compliance with this article shall
23pay an annual regulatory charge for each crematory, to be fixed
24by the bureau at not more than four hundred dollars ($400). In
25addition to an annual regulatory charge for each crematory, every
26licensee operating a crematory pursuant to a license issued pursuant
27to this article shall pay an additional charge to be fixed by the
28bureau at not more than eight dollars and fifty cents ($8.50) per
29cremation made during the preceding quarter, which charges shall
30be deposited in the Cemetery and Funeral Fund.

31(b) This section shall become operative on July 1, 2016.

32

7712.10.  

(a) Each crematory for which a crematory license is
33required shall be operated under the supervision of a manager
34qualified in accordance with rules adopted by the bureau. Each
35manager shall be required to successfully pass a written
36examination evidencing an understanding of the applicable
37provisions of this code and of the Health and Safety Code.

38(b) A person shall not engage in the business of, act in the
39capacity of, or advertise or assume to act as, a crematory manager
40without first obtaining a license from the bureau.

P51   1

7713.  

A crematory shall at all times employ a licensed
2crematory manager to manage, supervise, and direct its operations.

3(a) Every crematory shall designate a licensed crematory
4manager to manage the crematory, and shall report the designation
5to the bureau within 10 days of the effective date. Any change in
6the designated manager shall be reported to the bureau within 10
7days.

8(b) The designated crematory manager shall be responsible for
9exercising direct supervision and control over the operations,
10employees, and agents of the crematory as is necessary to ensure
11full compliance with the applicable provisions of this code, the
12Health and Safety Code, and any regulations adopted thereto.
13Failure of the designated crematory manager or the licensed
14crematory to exercise that supervision or control shall constitute
15a ground for disciplinary action.

16(c) A crematory may employ, in addition to the designated
17crematory manager, additional licensed crematory managers.
18However, only one licensed crematory manager may be appointed
19as the designated crematory manager of the crematory.

20

7713.1.  

(a) Application for a crematory manager license shall
21be made in writing on the form provided by the bureau, verified
22by the applicant and filed at the principal office of the bureau. The
23application shall be accompanied by the fee fixed by this chapter.

24(b) The applicant for a crematory manager license shall be at
25least 18 years of age, possess a high school diploma or its
26equivalent, shall not have committed acts or crimes constituting
27grounds for denial of licensure under Section 480, shall
28demonstrate compliance with the training and experience
29requirements established by the bureau, and shall be a resident of
30 this state.

31(c) The bureau shall grant a crematory manager license to any
32applicant who meets the requirements of this chapter and who has
33successfully passed the crematory manager examination
34administered by the bureau.

35

7713.2.  

(a) A person shall not engage in or conduct, or hold
36himself or herself out as engaging in or conducting, the activities
37of a crematory manager without holding a valid, unexpired
38crematory manager license issued by the bureau.

39(b) A licensed crematory manager shall not engage in or
40conduct, or hold himself or herself out as engaging in or
P52   1conducting, the activities of a crematory manager without being
2employed by, or without being a sole proprietor, partner, or
3corporate officer of, a licensed crematory.

4

7713.3.  

It is a misdemeanor for any person, firm, or corporation
5to cremate human remains or to engage in the disposition thereof
6without a valid, unexpired crematory license. Each cremation shall
7be a separate violation.

8

7713.4.  

A crematory licensee shall be subject to and shall be
9disciplined by the bureau in accordance with Article 6
10(commencing with Section 7686).

11

SEC. 36.  

Section 7725.2 of the Business and Professions Code
12 is amended to read:

13

7725.2.  

Except as otherwise provided in this chapter, a license
14that has expired may be renewed at any time within five years after
15its expiration on filing of an application for renewal on a form
16prescribed by the bureau and payment of all accrued and unpaid
17renewal fees. If the license is not renewed within 30 days after its
18expiration the licensee, as a condition precedent to renewal, shall
19also pay the delinquency fee prescribed by this chapter. Renewal
20under this section shall be effective on the date on which the
21application is filed, on the date on which all renewal fees are paid,
22or on the date on which the delinquency fee, if any, is paid,
23whichever last occurs. If so renewed, the license shall continue in
24effect through the date provided in Section 7725 that next occurs
25after the effective date of the renewal, when it shall expire if it is
26not again renewed.

27If a license is not renewed within one year following its
28expiration, the bureau may require as a condition of renewal that
29the holder of the license pass an examination on the appropriate
30subjects provided by this chapter.

31

SEC. 37.  

Section 7727 of the Business and Professions Code
32 is amended to read:

33

7727.  

(a) On or before the 10th day of each month, the
34department shall pay into the State Treasury and report to the State
35Controller all the fees received for the bureau relating to funeral
36directors and embalmers. The fees shall be received by the State
37Treasurer and placed in the State Funeral Directors and Embalmers
38Fund, which fund is available for expenditures necessary for the
39proper administration of those provisions of this chapter governing
40funeral directors and embalmers.

P53   1(b) This section shall remain in effect only until July 1, 2016,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before July 1, 2016, deletes or extends that date.

4

SEC. 38.  

Section 7727 is added to the Business and Professions
5Code
, to read:

6

7727.  

(a) On or before the 10th day of each month, the
7department shall pay into the State Treasury and report to the State
8Controller all the fees received for the bureau. The fees shall be
9received by the State Treasurer and placed in the Cemetery and
10Funeral Fund, which fund is available for expenditures necessary
11for the proper administration of this chapter.

12(b) This section shall become operative on July 1, 2016.

13

SEC. 39.  

Section 7729.1 is added to the Business and
14Professions Code
, to read:

15

7729.1.  

The amount of fees prescribed for a license or
16certificate of authority under this act is that fixed by the following
17provisions of this article. Any license or certificate of authority
18provided under this act that has expired may be renewed within
19five years of its expiration upon payment of all accrued and unpaid
20renewal and regulatory fees.

21

SEC. 40.  

Section 7729.2 is added to the Business and
22Professions Code
, to read:

23

7729.2.  

The delinquent renewal fee for a license, registration,
24or certificate of authority under this chapter shall be 150 percent
25of the timely fee, but not less than the renewal fee plus twenty-five
26dollars ($25).

27

SEC. 41.  

Section 7729.3 is added to the Business and
28Professions Code
, to read:

29

7729.3.  

The original cemetery broker’s license fee shall be
30fixed by the bureau at not more than four hundred dollars ($400).

31

SEC. 42.  

Section 7729.4 is added to the Business and
32Professions Code
, to read:

33

7729.4.  

(a) The original cemetery broker’s license fee is
34payable at the time of the filing of an application for an original
35cemetery broker’s license.

36(b) If the applicant fails the required written examination, he or
37she may be permitted to take another examination upon the filing
38of an application for reexamination and the payment of a
39reexamination fee. This reexamination fee shall be fixed by the
40bureau at not more than one hundred dollars ($100).

P54   1(c) No part of any original cemetery broker’s license fee or
2reexamination fee is refundable. It is deemed earned upon receipt
3by the bureau, whether the accompanying application for a license
4is complete or incomplete.

5

SEC. 43.  

Section 7729.5 is added to the Business and
6Professions Code
, to read:

7

7729.5.  

The annual renewal fee for a cemetery broker’s license
8shall be fixed by the bureau at not more than three hundred dollars
9($300).

10

SEC. 44.  

Section 7729.6 is added to the Business and
11Professions Code
, to read:

12

7729.6.  

If the licensee is a cemetery brokerage corporation,
13the license issued to it entitles one officer only, on behalf of the
14corporation, to engage in the business of a cemetery broker without
15the payment of a further fee, that officer to be designated in the
16application of the corporation for a license. For each other officer
17of a licensed cemetery brokerage corporation, through whom it
18engages in the business of a cemetery broker, the annual renewal
19fee, in addition to the fee paid by the corporation, shall be fixed
20by the bureau at not more than one hundred dollars ($100).

21

SEC. 45.  

Section 7729.7 is added to the Business and
22Professions Code
, to read:

23

7729.7.  

If the licensee is a cemetery brokerage copartnership,
24the license issued to it entitles one member only of the
25copartnership to engage on behalf of the copartnership in the
26business of a cemetery broker, which member shall be designated
27in the application of the copartnership for a license. For each other
28member of the copartnership who on behalf of the copartnership
29engages in the business of a cemetery broker, the annual renewal
30fee, in addition to the fee paid by the copartnership, shall be fixed
31by the bureau at not more than one hundred dollars ($100).

32

SEC. 46.  

Section 7729.8 is added to the Business and
33Professions Code
, to read:

34

7729.8.  

The cemetery salesperson’s license fee shall be fixed
35by the bureau at not more than thirty dollars ($30).

36

SEC. 47.  

Section 7729.9 is added to the Business and
37Professions Code
, to read:

38

7729.9.  

A cemetery salesperson’s license fee is payable on
39each filing of an application for a cemetery salesperson’s license.

P55   1

SEC. 48.  

Section 7729.10 is added to the Business and
2Professions Code
, to read:

3

7729.10.  

The annual renewal fee for a cemetery salesperson’s
4license shall be fixed by the bureau at not more than twenty-five
5dollars ($25).

6

SEC. 49.  

Section 7730 is added to the Business and Professions
7Code
, to read:

8

7730.  

For a branch office broker’s license, the fee shall be fixed
9by the bureau at not more than one hundred dollars ($100).

10

SEC. 50.  

Section 7730.1 is added to the Business and
11Professions Code
, to read:

12

7730.1.  

The cremated remains disposer registration fee shall
13be one hundred dollars ($100).

14

SEC. 51.  

Section 7730.2 is added to the Business and
15Professions Code
, to read:

16

7730.2.  

The renewal fee for a cremated remains disposer
17registration shall be fifty dollars ($50).

18

SEC. 52.  

Section 7730.3 is added to the Business and
19Professions Code
, to read:

20

7730.3.  

For change of name or of address of licensee on the
21records of the bureau, the fee shall be fixed by the bureau at not
22more than twenty-five dollars ($25).

23

SEC. 53.  

Section 7730.4 is added to the Business and
24Professions Code
, to read:

25

7730.4.  

For transfer of a salesperson’s license on change of
26employer, the fee shall be fixed by the bureau at not more than
27twenty-five dollars ($25).

28

SEC. 54.  

Section 7730.5 is added to the Business and
29Professions Code
, to read:

30

7730.5.  

For a duplicate license the fee shall be fixed by the
31bureau at not more than twenty-five dollars ($25).

32

SEC. 55.  

Section 7730.6 is added to the Business and
33Professions Code
, to read:

34

7730.6.  

(a) For reinstatement of a license within the fiscal
35year, the fee shall be fixed by the bureau at not more than
36twenty-five dollars ($25).

37(b) As used in this section, “reinstatement of a license” means
38the reissuance of a canceled cemetery broker’s license, or a
39cemetery salesperson’s license which was canceled during the year
P56   1for which it was issued upon the salesperson’s withdrawal from
2the employ of a cemetery broker.

3

SEC. 56.  

Section 7730.7 is added to the Business and
4Professions Code
, to read:

5

7730.7.  

(a) The fee for a crematory manager examination and
6reexamination may not exceed five hundred dollars ($500).

7(b) The license fee to obtain a crematory manager license may
8not exceed one hundred dollars ($100).

9(c) The renewal fee for a crematory manager license may not
10exceed one hundred dollars ($100).

11

SEC. 57.  

Section 7730.8 is added to the Business and
12Professions Code
, to read:

13

7730.8.  

(a) The fee for a cemetery manager examination and
14reexamination may not exceed nine hundred dollars ($900).

15(b) The license fee to obtain a cemetery manager license may
16not exceed one hundred dollars ($100).

17(c) The renewal fee for a cemetery manager license may not
18exceed one hundred dollars ($100).

19

SEC. 58.  

Section 7730.9 is added to the Business and
20Professions Code
, to read:

21

7730.9.  

The fee for filing a report of a change of designated
22manager or a request for approval to share a designated cemetery
23manager shall not exceed fifty dollars ($50).

24

SEC. 59.  

Section 7730.10 is added to the Business and
25Professions Code
, to read:

26

7730.10.  

(a) Every cemetery authority operating a cemetery
27shall pay an annual regulatory charge for each cemetery to be fixed
28by the bureau at not more than four hundred dollars ($400). In
29addition to an annual regulatory charge for each cemetery, an
30additional quarterly charge to be fixed by the bureau at not more
31than eight dollars and fifty cents ($8.50) for each burial,
32entombment, or inurnment made during the preceding quarter shall
33be paid to the bureau and these charges shall be deposited in the
34Cemetery Fund. If the cemetery authority performs a burial,
35entombment, or inurnment, and the cremation was performed at
36a crematory located on the grounds of the cemetery and under
37common ownership with the cemetery authority, the total of all
38additional charges shall be not more than eight dollars and fifty
39 cents ($8.50).

P57   1(b) This section shall remain in effect only until July 1, 2016,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before July 1, 2016, deletes or extends that date.

4

SEC. 60.  

Section 7730.10 is added to the Business and
5Professions Code
, to read:

6

7730.10.  

(a) Every cemetery authority operating a cemetery
7shall pay an annual regulatory charge for each cemetery to be fixed
8by the bureau at not more than four hundred dollars ($400). In
9addition to an annual regulatory charge for each cemetery, an
10additional quarterly charge to be fixed by the bureau at not more
11than eight dollars and fifty cents ($8.50) for each burial,
12entombment, or inurnment made during the preceding quarter shall
13be paid to the bureau and these charges shall be deposited in the
14Cemetery and Funeral Fund. If the cemetery authority performs a
15burial, entombment, or inurnment, and the cremation was
16performed at a crematory located on the grounds of the cemetery
17and under common ownership with the cemetery authority, the
18total of all additional charges shall be not more than eight dollars
19and fifty cents ($8.50).

20(b) This section shall become operative on July 1, 2016.

21

SEC. 61.  

Section 7731 is added to the Business and Professions
22Code
, to read:

23

7731.  

Upon payment of the charges set forth, the bureau shall
24issue a renewal of the certificate of authority to the cemetery
25authority.

26

SEC. 62.  

Section 7731.1 is added to the Business and
27Professions Code
, to read:

28

7731.1.  

Failure to pay the charges set forth by Section 7730.10
29prior to February 1 for each year shall be cause for suspension of
30the certificate of authority. The certificate may be restored upon
31payment to the bureau of the prescribed charges.

32

SEC. 63.  

Section 7731.2 is added to the Business and
33Professions Code
, to read:

34

7731.2.  

It is a misdemeanor for any cemetery corporation to
35make any interments without a valid certificate of authority. Each
36interment shall be a separate violation.

37

SEC. 64.  

Section 7731.3 is added to the Business and
38Professions Code
, to read:

39

7731.3.  

(a) All moneys received by the bureau under the
40provisions of this chapter relating to cemetery regulation shall be
P58   1accounted for and reported by detailed statements furnished by
2the bureau to the Controller at least once a month, and at the same
3time these moneys shall be remitted to the Treasurer, and, upon
4order of the Controller, shall be deposited in the Cemetery Fund
5in the State Treasury, which fund is hereby created.

6(b) This section shall remain in effect only until July 1, 2016,
7and as of that date is repealed, unless a later enacted statute, that
8is enacted before July 1, 2016, deletes or extends that date.

9

SEC. 65.  

Section 7731.3 is added to the Business and
10Professions Code
, to read:

11

7731.3.  

(a) All moneys received by the bureau under the
12provisions of this chapter shall be accounted for and reported by
13detailed statements furnished by the bureau to the Controller at
14least once a month, and at the same time these moneys shall be
15remitted to the Treasurer, and, upon order of the Controller, shall
16be deposited in the Cemetery and Funeral Fund in the State
17Treasury, which fund is hereby created.

18(b) This section shall become operative on July 1, 2016.

19

SEC. 66.  

Section 7731.4 is added to the Business and
20Professions Code
, to read:

21

7731.4.  

(a) All moneys paid into the State Treasury and
22credited to the Cemetery Fund shall be expended in accordance
23with law for the payment of all actual and necessary expenses
24incurred in carrying out the provisions of this act.

25(b) This section shall remain in effect only until July 1, 2016,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before July 1, 2016, deletes or extends that date.

28

SEC. 67.  

Section 7731.4 is added to the Business and
29Professions Code
, to read:

30

7731.4.  

(a) All moneys paid into the State Treasury and
31credited to the Cemetery and Funeral Fund shall be expended in
32accordance with law for the payment of all actual and necessary
33expenses incurred in carrying out the provisions of this act.

34(b) This section shall become operative on July 1, 2016.

35

SEC. 68.  

Chapter 19 (commencing with Section 9600) of
36Division 3 of the Business and Professions Code is repealed.

37begin insert

begin insertSEC. 69.end insert  

end insert
begin insert

(a) Section 2.1 of this bill incorporates changes to
38Section 205 of the Business and Professions Code proposed by
39both this bill and Assembly Bill 177. It shall only become operative
40if (1) both bills are enacted and become effective on or before
P59   1January 1, 2016, (2) each bill amends Section 205 of the Business
2and Professions Code, and (3) Assembly Bill 179 is not enacted
3or as enacted does not amend that section, and (4) this bill is
4enacted after Assembly Bill 177, in which case Sections 2, 2.2, and
52.3 of this bill shall not become operative.

end insert
begin insert

6(b) Section 2.2 of this bill incorporates changes to Section 205
7of the Business Code proposed by both this bill and Assembly Bill
8179. It shall only become operative if (1) both bills are enacted
9and become effective on or before January 1, 2016, (2) each bill
10amends Section 205 of the Business and Professions Code, (3)
11Assembly Bill 177 is not enacted or as enacted does not amend
12that section, and (4) this bill is enacted after Assembly Bill 179 in
13which case Sections 2, 2.1, and 2.3 of this bill shall not become
14operative.

end insert
begin insert

15(c) Section 2.3 of this bill incorporates changes to Section 205
16of the Business and Professions Code proposed by this bill,
17Assembly Bill 177, and Assembly Bill 179. It shall only become
18operative if (1) all three bills are enacted and become effective on
19or before January 1, 2016, (2) all three bills amend Section 205
20of the Business and Professions Code, and (3) this bill is enacted
21after Assembly Bill 177 and Assembly Bill 179, in which case
22Sections 2, 2.1, and 2.2 of this bill shall not become operative.

end insert
23

begin deleteSEC. 69.end delete
24begin insertSEC. 70.end insert  

No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.



O

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