BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 180 (Bonilla) - Cemetery and Funeral Bureau
          
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          |Version: June 29, 2015          |Policy Vote: B., P. & E.D. 9 -  |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 17, 2015   |Consultant: Brendan McCarthy    |
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          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill  
          Summary:  AB 180 would merge the Funeral Directors and Embalmers  
          Law and the Cemetery Act into one body of law. The bill would  
          merge the State Funeral Directors and Embalmers Fund and the  
          Cemetery Fund into one special fund. The bill would make the  
          Cemetery and Funeral Bureau subject to sunset review by the  
          Legislature.


          Fiscal  
          Impact:  
           No significant ongoing operational costs are anticipated under  
            the bill. Under current law, the Cemetery and Funeral Bureau  
            enforces both the Funeral Directors and Embalmers Law and the  
            Cemetery Act. Neither body of law has a statutory sunset and  
            this bill does not impose a new sunset on the combined body of  
            law.

           No significant costs are anticipated by the Bureau to conduct  







          AB 180 (Bonilla)                                       Page 1 of  
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            the required study of endowment care funds. According to the  
            Bureau, it already intends to conduct the required study and  
            will be able to do so within existing resources.


          Background:  Under current law, the Funeral Directors and Embalmers Law and  
          the Cemetery Act are two separate bodies of law, although both  
          are overseen and enforced by the Cemetery and Funeral Bureau  
          within the Department of Consumer Affairs.
          While the Cemetery and Funeral Bureau effectively runs one  
          unified licensing and enforcement program, the Bureau uses two  
          separate special funds to deposit licensing fees and finance its  
          operations.


          Neither the Funeral Directors and Embalmers Law nor the Cemetery  
          Act have statutory sunsets on their provisions.


          Current law requires cemetery operators to file an annual report  
          with the Bureau on the endowment care funds they hold (funds  
          held by cemeteries for merchandise and services purchased by an  
          individual before he or she dies).




          Proposed Law:  
            AB 180 would merge the Funeral Directors and Embalmers Law and  
          the Cemetery Act into one body of law. 
          The bill would merge the State Funeral Directors and Embalmers  
          Fund and the Cemetery Fund into one special fund. 


          The bill would make the Cemetery and Funeral Bureau subject to  
          sunset review by the Legislature.


          The bill would require the Bureau to conduct a study of  
          endowment care funds.












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          Staff  
          Comments:  Under current law, the Cemetery and Funeral Bureau  
          oversees and enforces both the Funeral Directors and Embalmers  
          Law and the Cemetery Act. Licensing fees paid by licensees of  
          those two bodies of law are deposited in separate special funds,  
          which are proposed to be combined under this bill. Currently,  
          the Cemetery fund is generally in balance and has a projected  
          reserve of $2.3 million. In recent years the State Funeral  
          Directors and Embalmers Fund has operated with a deficit of  
          about $500,000 per year and is projected to have a fund balance  
          of only $22,000 at the end of the current year. However, this is  
          due primarily to the legal costs associated with a long-running  
          court case. Under a recent settlement agreement, much of those  
          legal fees are expected to be repaid to the board. This is  
          expected to restore fiscal solvency to the fund.





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