BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 180|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 180
Author: Bonilla (D), et al.
Amended: 9/4/15 in Senate
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 7/6/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/17/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 80-0, 6/1/15 - See last page for vote
SUBJECT: Cemetery and Funeral Bureau
SOURCE: Author
DIGEST: This bill extends the operations of the Cemetery and
Funeral Bureau (Bureau) until January 1, 2020, and makes other
changes to the Bureau's operations.
Senate Floor Amendments of 9/4/15 remove chaptering conflicts.
Senate Floor Amendments of 8/27/15 address the date of the
merger of the State Funeral Directors and Embalmers Fund and the
Cemetery Fund, change the endowment care reporting deadline, and
make other various technical and clarifying changes.
ANALYSIS:
Existing law:
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1)Establishes the Funeral and Directors and Embalmers Law
(Funeral Law) which provides for the licensure and regulation
of funeral directors and embalmers, within the Department of
Consumer Affairs (DCA), and requires the director of the DCA
to administer and enforce the Funeral Law. (Business and
Professions Code (BPC) § 7600 et seq.)
2)Authorizes the Bureau to adopt and enforce reasonably
necessary rules and regulations relating to: the practice of
embalming; the business of a funeral director; the sanitary
conditions of places where such practice or business is
conducted; specifying conditions for approval of funeral
establishments for apprentices and mortuary science programs;
the scope of examination; and, carrying out the provisions for
the protection of the peace, health, safety, welfare and
morals of the public.
(BPC § 7606)
3)Establishes the Cemetery Act which provides for the licensure
and regulation of cemetery salespersons, cemetery managers,
crematory managers, cemetery brokers, and cremated remains
disposers. (BPC § 9600 et seq.)
4)Authorizes the Bureau to establish necessary rules and
regulations for the administration and enforcement of the
Cemetery Act. (BPC § 9630)
This bill:
1)Requires the powers and duties of the Bureau be reviewed by
the appropriate policy committees of the Legislature before
January 1, 2020.
2)Requires the Bureau to conduct a study of endowment care funds
as specified, by January 1, 2018.
3)Combines the Cemetery Fund and the Funeral Directors and
Embalmers Fund to create the Cemetery and Funeral Fund.
4)Delays the date of merging the Cemetery Fund and the Funeral
Directors and Embalmers Fund to July 1, 2016, as specified.
5)Merges the Funeral and Directors and Embalmers Law with the
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Cemetery Act to create the Cemetery and Funeral Act.
6)Makes other technical and conforming changes.
Background
In 2015, the Senate Business, Professions and Economic
Development Committee and the Assembly Business and Professions
Committee (Committees) conducted joint oversight hearings to
review 12 regulatory entities including the Bureau. This bill
is intended to implement legislative changes as recommended by
staff of the Committees reflected in a Background Paper on the
Bureau, as well as the discussion stemming from an oversight
hearing on the Bureau.
The Bureau licenses and regulates more than 11,000 licensees in
13 different licensing categories. The Bureau does not license
or regulate cemeteries operated by religious organizations,
cities, counties, cemetery districts, the military, Native
American tribal organizations, or other groups. The Bureau has
the oversight responsibility for both fiduciary and operational
activities of its licensing population and has the statutory
authority to enforce the licensing and practice acts in the BPC
along with jurisdiction over specified provisions of the Health
and Safety Code dealing specifically with human remains,
cemetery, and crematory provisions.
Endowment care funds. The Background Paper discussed the annual
requirement for cemeteries to file a report regarding the amount
collected for endowment care funds and special care funds
(preneed cemetery merchandise and services), the manner of
investment of the funds, as well as other financial information
and related documents. The annual report must be submitted with
an audit report signed by a certified public accountant. The
Bureau's audit unit reviews each of those annual reports and
assesses any potential risk to the funds. In 2008, the Bureau
reported to the Legislature the results from its Endowment Care
Fund Survey, which addressed the need to increase endowment care
fund requirements.
While an increase in funding for endowment care was enacted in
2008, staff recommended in the background paper that the Bureau
conduct an updated study on endowment care fund requirements and
needs. This bill will require the Bureau to conduct a study of
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endowment care funds and report back to the Legislature by
January 1, 2018.
Continuation of the Bureau. This bill will authorize the
continued operation of the Bureau as it is currently functioning
under the DCA and request the Bureau to be reviewed by the
Legislature again in four years. By continuing the functions of
the Bureau, this bill will allow the Bureau to continue in its
regulatory capacity for the protection of consumers and the
regulation of all aspects of the funeral and cemetery
industries.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee, this bill will
not result in any significant ongoing operational costs.
SUPPORT: (Verified9/4/15)
None received
OPPOSITION: (Verified9/4/15)
None received
ASSEMBLY FLOOR: 80-0, 6/1/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
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Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
9/8/15 15:27:20
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