BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 180 (Bonilla) - Cemetery and Funeral Bureau ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 29, 2015 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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 ? 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. AB 180 (Bonilla) Page 2 of ? 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. -- END --