BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1745
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1745 (Ammiano)
          As Amended March 18, 2010
          Majority vote 

           JUDICIARY           7-3                                         
           
           -------------------------------------- 
          |Ayes:|Feuer, Brownley, Hill,    |     |
          |     |Huffman, Skinner,         |     |
          |     |Monning, Nava             |     |
          |     |                          |     |
          |-----+--------------------------+-----|
          |Nays:|Tran, Hagman, Knight      |     |
          |     |                          |     |
           -------------------------------------- 
           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 $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 Health &  
            Safety Code 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 $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)Requires a county who exercises or assumes jurisdiction over  
            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  








                                                                  AB 1745
                                                                  Page  2


            disposition of the remains shall be borne by the county  
            exercising jurisdiction.  

          2)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.  

          3)Requires an applicant for the permit for disposition of human  
            remains to pay a fee of $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 Health & Safety Code Section 103065.   


          4)Provides for a $2 increased adjustment to the above fee to be  
            paid quarterly to the State Registrar pursuant to SB 850  
            (Maldonado), Chapter 661, Statutes of 2007.  

          5)Requires, as of January 1, 2005, an applicant for the permit  
            for disposition of human remains to pay an additional fee of  
            $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.  

          6)Requires an applicant for the permit for disposition of human  
            remains to pay an additional fee of $3 to the local registrar  
            of births and deaths, with $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  
            $2 to be paid into the county treasury to be expended for the  
            burial of indigent residents.  

           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 $8, to be used  
          for disposal of the remains of indigent residents of the county.

          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.  They  








                                                                  AB 1745
                                                                  Page  3


          correctly note that 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,  
          and that this amount has not been increased for two decades,  
          since first enacted into law by SB 2244 (Davis), Chapter 990,  
          Statutes 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 $8 to fund the disposition of the remains of indigent  
          residents of that county.
           
           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 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,  
          an increase that appears to meet the criteria for a "fee" under  
          the Sinclair Paints test.  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  








                                                                  AB 1745
                                                                  Page  4


          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  
          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.


           Analysis Prepared by :    Anthony Lew / JUD. / (916) 319-2334 

                                                               FN:  0003890