BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1745
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          Date of Hearing:   March 23, 2010

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                   AB 1745 (Ammiano) - As Amended:  March 18, 2010
           
          SUBJECT  :  VITAL RECORDS: FEES: DISPOSITION OF HUMAN REMAINS

           KEY ISSUE  :  SHOULD THE LOCAL REGISTRAR OF A COUNTY BE AUTHORIZED  
          TO CHARGE AN APPLICANT FOR A PERMIT FOR DISPOSITION OF HUMAN  
          REMAINS AN ADDITIONAL FEE OF UP TO EIGHT DOLLARS ($8) FOR THE  
          PURPOSE OF FUNDING THE DISPOSITION OF THE REMAINS OF INDIGENT  
          RESIDENTS OF THAT COUNTY?

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

                                      SYNOPSIS

          This bill would authorize the local registrar of a county to  
          charge an applicant for a permit for the disposition of human  
          remains an additional fee of up to eight dollars ($8) to fund  
          the disposition of the remains of indigent residents of that  
          county.  The sponsor of the bill, the City and County of San  
          Francisco, contends that this bill is needed to relieve the  
          financial burden currently experienced by counties arising from  
          their under-funded obligation under state law to absorb the  
          costs of disposing of the remains of indigent residents.   
          Although the bill has no formal opposition at this time, it's  
          likely to face general fiscal criticism by taxpayer advocates  
          and others on the basis that the fee authorized by this bill is  
          in fact a tax subject to approval by a two-thirds vote of the  
          Legislature.  After careful analysis, it appears to the  
          Committee that the fee authorized by this bill to fund the  
          disposal of indigent remains in the county likely satisfies both  
          criteria for a "fee" under the  Sinclair Paints  test, as  
          specified by the California Supreme Court. First, the bill only  
          authorizes counties to charge a fee of up to $8 to provide for  
          indigent burial, and in fact does not require any new fee to be  
          charged.  In any case, because of  Sinclair Paints  , a county  
          could only charge a fee in an amount that does not exceed the  
          reasonable cost of providing burial of indigent remains in that  
          particular county.  Secondly, for the reasons stated within, it  
          appears this bill is closely related to the service it provides  
          to all persons in the county who pay a burial permit  








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          fee--namely, to protect public health and safety and ensure  
          proper disposition of all human remains.  This bill is supported  
          by public administrators, guardians and conservators, as well as  
          by associations of correctional supervisors and peace officers.
           
          SUMMARY  :  Authorizes counties to increase fees for every burial  
          permit (i.e. "permit for disposition of human remains") it  
          issues in order to help pay costs incurred by counties in  
          disposing of the remains of indigent residents.  Specifically,  
           this bill:

           1)Repeals and reenacts Health & Safety Code Section 103692 to  
            require that, in addition to various fees prescribed by  
            existing law, an applicant for a permit for disposition of  
            human remains shall continue to pay to the local registrar  the  
            existing fee  of four dollars ($4) that is currently  
            transferred in whole to the State Registrar to be used to  
            implement and maintain the electronic death registration  
            system required by Section 102778.  

          2)Authorizes the local registrar of a county to charge an  
            applicant for a permit for the disposition of human remains  an  
            additional fee  of up to eight dollars ($8) to fund the  
            disposition of the remains of indigent residents of that  
            county.

          3)Exempts these two fees from annual adjustments pursuant to  
            Health & Safety Code Section 100430. 

          EXISTING LAW  :  

          1)Provides that when no provision about disposition was made by  
            the decedent, or where the estate is insufficient to provide  
            for interment and the duty of interment does not devolve upon  
            any other person residing in the state, or if such person can  
            not after reasonable diligence be found within the state, the  
            person who has custody of the remains may require the coroner  
            of the county where the decedent resided at the time of death  
            to take possession of the remains and the coroner shall inter  
            the remains in the manner provided for the interment of  
            indigent dead.  (Health & Safety Code Section 7104(a).  All  
            further references to the Health & Safety Code, unless  
            otherwise noted.)

          2)Requires a county who exercises or assumes jurisdiction over  








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            the death of an individual to be responsible for the  
            disposition of the remains of that decedent.  Further provides  
            that if the decedent is an indigent, the costs associated with  
            disposition of the remains shall be borne by the county  
            exercising jurisdiction.  (Section 7104(b).)

          3)Prohibits any person from disposing of human remains unless  
            the person has obtained a death certificate, filed it with the  
            local registrar, and obtained from the local registrar a  
            permit for disposition.  (Section 103050.) 

          4)Requires an applicant for the permit for disposition of human  
            remains to pay a fee of two dollars ($2) to the local  
            registrar of births and deaths, when the permit is issued  
            during the registrar's regularly scheduled office hours,  
            except for permit applications pursuant to Section 103065.   
            (Section 103675.)

          5)Provides for a two dollar ($2) increased adjustment to the  
            above fee to be paid quarterly to the State Registrar pursuant  
            to SB 850 (2007).  (Section 100430.)

          6)Requires, as of January 1, 2005, an applicant for the permit  
            for disposition of human remains to pay an additional fee of  
            four dollars ($4) to the local registrar of births and deaths,  
            who in turn shall pay these funds to the State Registrar to be  
            used to implement and maintain the electronic death  
            registration system required by state law.  (Section 103692.)

          7)Requires an applicant for the permit for disposition of human  
            remains to pay an additional fee of three dollars ($3) to the  
            local registrar of births and deaths, with one dollar ($1) of  
            this fee to be paid into the Peace Officers' Training Fund for  
            the training of peace officer members of county coroners'  
            offices, and the remaining two dollars ($2) to be paid into  
            the county treasury to be expended for the burial of indigent  
            residents.  (Section 103680.)

          8)Requires a local registrar, upon presentation of a properly  
            executed death certificate, to issue the permit for  
            disposition and forward the death certificate and a duplicate  
            of the permit to the local registrar of the district in which  
            death occurred or the body was found.  Requires an applicant  
            for this "cross-file permit" for disposition to pay a fee of  
            ten dollars ($10) to the issuing registrar, with $3 of the fee  








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            to be transferred by the issuing registrar to the local  
            registrar of the county where the death occurred, $3 of the  
            fee to be retained by the county registrar issuing the permit,  
            and the remaining $4 of the fee to be transferred to the State  
            Registrar for administration of this section.  (Section  
            103065, amount as adjusted by Section 100430.)

           COMMENTS  :  This bill would increase the fee that a county  
          registrar may assess for a permit to dispose of human remains  
          from $11 to up to $19, a potential increase of eight dollars, to  
          be used for disposal of the remains of indigent residents of the  
          county.

           Need for the bill.   Under existing Health & Safety Code Section  
          7104, a county who exercises or assumes jurisdiction over the  
          death of an individual is charged with responsibility for the  
          disposition of the remains of that decedent.  Furthermore, if  
          the decedent is an indigent, current law provides that the costs  
          associated with disposition of the remains shall be borne by the  
          county exercising jurisdiction.  Because only $2 of collected  
          fees may be paid to counties for this purpose, the counties  
          contend that this law creates a type of under-funded mandate  
          with respect to the disposal of the remains of indigent persons.

          The sponsor of the bill, the City and County of San Francisco,  
          asserts that this bill is needed to relieve the financial burden  
          currently experienced by counties arising from their obligation  
          to absorb the costs of disposing of the remains of indigent  
          residents without provision of sufficient funding.  The sponsor  
          cites figures estimating that an eight-dollar increase over  
          existing fees would be sufficient to cover the shortfall  
          experienced by San Francisco:
           
               Current law designates $2 of the $11 fee collected on  
               each permit for the disposition of indigents.   
               Approximately 7,500 individuals die each year in the  
               City and County of San Francisco for which permits are  
               obtained.  Approximately 250 to 300 indigent residents  
               die in San Francisco each year requiring San Francisco  
               to dispose of their remains.  This translates into a  
               shortfall of approximately $55,000 per year.  This  
               financial burden to counties would be remediated by an  
               $8.00 increase to the current fee.

           Current Fees and Allocations for a Permit for Disposition of  








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          Remains  :  State law governing the issuance of permits for  
          disposition of human remains (often simply referred to as  
          "burial permits") authorizes a variety of individual fees for  
          such permits.  (Chapter 8 of Part 1 of Division 102 of the  
          Health & Safety Code.)  Once collected by the local county  
          registrar, portions of each of these fees are then distributed  
          to different entities for specified purposes.  Typically, the  
          applicant for a regular burial permit is assessed a total of $11  
          in mandatory fees by the local registrar.  The State Registrar  
          is required to receive $2 of the $4 fee collected pursuant to  
          Section 103675, with the other $2 retained by the local  
          registrar issuing the burial permit.  The local registrar must  
          transmit to the State Registrar the entire $4 fee collected  
          pursuant to Section 103692, which must be used by the state to  
          implement and maintain the electronic death registration system  
          created by AB 2550 (Chapter 857, Stats. of 2002).  Of the $3 fee  
          charged under Section 103680, the local registrar must pay one  
          dollar into the Peace Officers' Training Fund, and pay the  
          remaining $2 into the county treasury to be expended for the  
          burial of indigent residents.  Additional fees may apply in  
          small proportion of cases when the death certificate is issued  
          in a county different from where the death occurred, or the  
          permit needs to be obtained after regular business hours of the  
          registrar.

          In summary, only $2 from the $11 fees collected for every  
          regular burial permit are set aside for the purpose of disposing  
          of the remains of indigent residents of the county.  This amount  
          has not been increased for two decades, since first enacted into  
          law by SB 2224 (Chapter 990, Stats. of 1990).  To help alleviate  
          this financial burden to counties, this bill would authorize the  
          local registrar to charge an applicant for a burial permit an  
          additional fee of up to eight dollars ($8) to fund the  
          disposition of the remains of indigent residents of that county.
           
          The Increase Proposed by This Bill Appears to Meet the Criteria  
          for a "Fee" Under Sinclair Paints.   Under California law, while  
          a tax does require a two-thirds vote of the Legislature or of  
          local voters, a bona fide regulatory fee does not.  The  
          California Supreme Court laid out the distinction between a fee  
          and a tax in Sinclair Paints v. Board of Equalization (1997) 15  
          Cal.4th 866.  In that case, the Court found that a fee assessed  
          on paint manufacturers under the Childhood Lead Poisoning  
          Prevention Act of 1991 was properly a bona fide regulatory fee  
          designed to mitigate the effects of lead poisoning and not a  








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          tax.  In order to be classified as a regulatory fee and not a  
          tax, the Court held that the fee must not exceed the reasonable  
          cost of providing the services necessary for which the fee is  
          charged, and must not be levied for an unrelated revenue  
          purpose.   

          This bill provides that any fee increase charged by the local  
          registrar pursuant to this act shall be used to fund the  
          disposition of the remains of indigent residents of that county.  
           Under the first prong of the Sinclair Paints test, the fee  
          cannot exceed the reasonable cost of the services for which the  
          fee is charged.  Here, the bill would authorize an additional  
          fee not to exceed eight dollars-an amount that, according to the  
          author, reflects the fee needed to offset the reasonable cost of  
          the service of burying indigent residents of the City and County  
          of San Francisco.  The author arrived at this figure based on  
          current estimates of the number of burial permits obtained in  
          the county each year, the number of indigent residents of the  
          county who die each year, and the estimated annual cost to the  
          county for disposing of remains of indigent residents.   
          Importantly, this bill does not require or specify the amount of  
          any additional fee to be charged; it simply authorizes local  
          counties to assess an additional fee to applicants for burial  
          permits for the purpose of funding disposal of remains of  
          indigent county residents.  In order to comply with Sinclair  
          Paints, each county would presumably perform a similar  
          calculation to determine the amount of any additional fee to be  
          charged to ensure that amount does not exceed the reasonable  
          cost of providing burial of indigent remains for that particular  
          county.  In this case, there is no suggestion that the bill  
          requires any fee to be charged in excess of the cost of  
          providing indigent burial services.

          Under the second prong of the Sinclair Paints test, the fee must  
          be levied for a related purpose.  Here, the nexus between the  
          fee proposed by this bill and the service it would fund seems  
          sufficiently clear.  All people eventually die, and every person  
          may potentially experience financial misfortune or circumstances  
          that happen to render them indigent at the time of death, even  
          those who may have had wealth earlier in life.  The state  
          regulates disposition of remains and requires a permit to be  
          obtained for each case of death because proper disposition of  
          human remains is necessary to protect public health and safety  
          of county residents.  The county must ensure that all human  
          remains in its jurisdiction are properly disposed of, regardless  








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          of whether the person died indigent or not, to protect the  
          public health in the county.  Therefore, it appears that the  
          additional fee authorized by this bill to fund the disposal of  
          indigent remains in the county is closely related to the service  
          it provides to all persons in the county who pay a burial permit  
          fee--namely, to protect public health and safety and ensure  
          proper disposition of all human remains.

           ARGUMENTS IN SUPPORT  :  The State Association of Public  
          Administrators, Public Guardians, and Public Conservators  
          represents public administrators, the county employees who  
          administer the estates of people who die without a will or  
          without an appropriate person willing to be able to act as an  
          administrator.  In support of the bill, they write: 

               If a person dies with no assets or heirs, the county  
               public administrator arranges for the burial or  
               cremation of the individual.  Currently, there is no  
               direct revenue source to fund burial services.   
               Counties incur great costs to care for the remains of  
               the indigent.  For example, Riverside County spent  
               over $100,000 last year to provide this service.  They  
               expect to spend a similar amount in 2010.  AB 1745  
               would create a potential funding source to help offset  
               a significant county cost.  Without this bill, county  
               taxpayers will continue to subsidize this service.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          City and County of San Francisco (sponsor)
          State Association of Public Administrators, Public Guardians,  
          and Public Conservators
          California Correctional Supervisors Organization
          California Peace Officers' Association

           Opposition 
          
          None on file
           
          Analysis Prepared by  :   Anthony Lew / JUD. / (916) 319-2334