BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 4
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 4 (Miller) - As Amended:  April 14, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the Cemetery and Funeral Bureau to license 
          and regulate hydrolysis facilities.

           FISCAL EFFECT  

          1)One-time costs in 2011-12 to the bureau of an unknown amount, 
            but potentially in the range of $50,000 to $150,000, to 
            develop and adopt regulations and examinations requirements 
            for hydrolysis facility operations and licensing.  (Special 
            fund.)

          2)Ongoing annual costs, starting in 2012-13, to the bureau of an 
            unknown amount, but likely approximately $150,000 (equivalent 
            to one person with scientific training) to update regulations, 
            administer exams, investigate facility operations, and enforce 
            requirements.  (Special fund.)

          3)Onetime revenue in 2012-13 to the bureau of an unknown amount, 
            but ranging from $800 to $9,000, from applications for a 
            hydrolysis facility operation, assuming two to 10 applicants 
            and fees ranging from $400 to $900, per applicant, in the 
            program's first year of operation. (Special fund.)

          4)Onetime revenue in 2012-13 to the bureau of an unknown amount, 
            but ranging from $1,000 and $5,000, from hydrolysis facility 
            manager exam fees, assuming the bureau receives between two 
            and 10 applicants for examination and fees of $500, per 
            applicant, in the program's first year of operation.  (Special 
            fund.)









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          5)Ongoing annual revenue starting in, 2013-14, to the bureau of 
            an unknown amount, but no more than several thousands of 
            dollars, from annual manager license renewal fees, annual 
            regulatory charges and quarterly hydrolysis fees.  (Special 
            fund.)

          6)The costs of implementing this bill, both in the first year of 
            operation and in subsequent years, are likely to exceed 
            revenue generated by the fees included in this bill by tens of 
            thousands of dollars.  It is does not appear the Cemetery 
            Fund, which has a 2011-12 balance of just over $400,000 and 
            from which these expenses would be paid, could support such 
            unfunded costs.

           

          SUMMARY (continued)

           Specifically, this bill:

          1)Authorizes the operation of a hydrolysis facility if the 
            facility is licensed by the bureau and operated under the 
            supervision of a designated hydrolysis facility manager, also 
            licensed by the bureau.

          2)Requires the bureau to adopt, maintain and enforce regulations 
            governing hydrolysis facility licenses and hydrolysis facility 
            managers.

          3)Authorizes the bureau to create an exam to license hydrolysis 
            facility managers and sets the exam fee at no more than $500 
            and the license renewal fee at no more than $100.

          4)Sets the hydrolysis facility license application fee at no 
            more $900 to cover the bureau's reasonable costs of 
            investigation of the facility for which the application is 
            made.

          5)Requires each licensed hydrolysis facility to pay an annual 
            regulatory charge no greater than the reasonable cost of 
            regulatory administration or $400, as well as a maximum fee of 
            $8.50 per hydrolysis performed at the facility in the 
            preceding quarter. 

          6)Creates new crimes concerning the unlawful operation of a 








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            hydrolysis facility and improper handling, processing, 
            treatment, and disclosure concerning cremation and cremated 
            human remains.

           COMMENTS  

           1)Rationale.   The author describes hydrolysis as a "green" 
            alterative to cremation which, if allowed in California, could 
            create new business opportunities for entrepreneurs and 
            consumers considering what to do with their bodily remains 
            once they are deceased.  
             
           2)Background.
                
              a)   Alkaline Hydrolysis, aka Resomation, aka Bio-cremation.   
               Alkaline hydrolysis is a process in which bodily remains 
               are treated with lye, hot water and high pressure.  The 
               result is a slurry of liquid remains, which are drained, 
               and mineral ash.  The process was developed to dispose of 
               animal carcasses, for which the process is used in several 
               states and countries.  The process is allowed for use on 
               human remains in Florida, Maine and Oregon.  New Hampshire 
               briefly allowed hydrolysis of human remains but, after two 
               years, banned the practice largely because of concerns 
               among some religious groups.  

             b)   Similar bill failed in the Senate last year.   AB 2283 
               (Miller, 2010) was similar to this bill in that it, too, 
               would have required the bureau to license and regulate 
               hydrolysis.  As detailed in a Los Angeles Times article 
               (Funeral Homes Seek to Legalize 'Bio-cremation' as a Green 
               Alternative, May 4, 2010), AB 2283 passed the Assembly but 
               failed in the Senate over concerns with the water quality 
               and worker safety effects of the slurry created by 
               hydrolysis.  When handled, properly, the slurry has a 
               somewhat high pH value.  It also may contain traces of 
               heavy metals, such as mercury, that have accumulated in 
               body tissue. 
                
               This bill represents an attempt by the author to address 
               those concerns by allowing more stringent regulatory and 
               notification requirements.
                
              c)   Cemetery and Funeral Bureau.  Operating within the 
               Department of Consumer Affairs, the bureau ensures that 








                                                                  AB 4
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               only qualified applicants receive licenses to operate 
               cemeteries, crematories or funeral establishments, or act 
               as funeral directors, embalmers, apprentice embalmers, 
               cremated remains disposers, cemetery managers, crematory 
               managers, cemetery brokers, or salespeople. The bureau also 
               ensures that licensees comply with applicable rules and 
               regulations concerning the management of trust funds, 
               permanence of mausoleums and columbariums, and the proper 
               handling of human remains.

           3)Support.   This bill is supported by several industry groups, 
            who contend hydrolysis is a safe, environmentally friendly 
            ways to handle human remains.  

          4)Opposition.   This bill is opposed by the California Catholic 
            Conference-the staff office of the California Catholic 
            Conference of Bishops and the official voice of the Catholic 
            community in California's public policy arena.  The conference 
            contends that while it does not consider hydrolysis evil, it 
            does believe it too casual, and perhaps disrespectful, a way 
            to dispose of human remains. 
           
           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081