BILL NUMBER: AB 374 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 20, 2012
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY MAY 11, 2011
AMENDED IN ASSEMBLY MAY 2, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
INTRODUCED BY Assembly Member Hill
FEBRUARY 14, 2011
An act to amend Section 7630 of the Business and Professions Code,
relating to funeral directors and embalmers.
LEGISLATIVE COUNSEL'S DIGEST
AB 374, as amended, Hill. Funeral directors and embalmers.
Existing law, the Funeral Directors and Embalmers Law, creates the
Cemetery and Funeral Bureau within the Department of Consumer
Affairs. Existing law requires a funeral director to obtain a
separate license for each funeral establishment the director
operates. Existing law allows the assignment of a funeral
establishment's license upon payment of a fee and submission of an
audit report performed by an independent certified public accountant
or public accountant licensed in this state that verifies the
accuracy of the establishment's trust fund balances and reports the
establishment's compliance with certain provisions of the Funeral
Directors and Embalmers Law. Existing law requires any shortages in
the trust funds to be funded in order for a funeral establishment's
license to be assigned.
This bill would require a completed application to be filed in
addition to payment of the fee and submission of the
audit report in order to assign a funeral establishment's
license. If an applicant for assignment of a funeral establishment's
license is not able to submit the audit report due to specified
circumstances, the bill would authorize the applicant to submit a
signed request, signed under penalty of perjury,
for approval from the bureau to secure a bond guaranteeing
the payment of any shortages in the establishment's trust funds, as
specified. The bill would subject an applicant who
knowingly provides false information pursuant to the bill's
provisions to a civil fine not to exceed $5,000. The bill would
require an assignee to maintain the bond after assignment of the
funeral establishment's license by the bureau.
By expanding the scope of the crime of perjury, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7630 of the Business and Professions Code is
amended to read:
7630. (a) A funeral establishment's license may be assigned upon
payment of the fee fixed by this chapter, the filing of a completed
application, and upon submission of an audit report prepared and
signed by an independent certified public accountant or public
accountant currently licensed in this state. The audit report shall
include an unqualified opinion on the accuracy of the trust fund
balances and a report of compliance with the provisions of this
article and Article 9 (commencing with Section 7735). Any shortages
in the trust funds shall be funded.
(b) (1) If the applicant cannot submit the
audit report required in subdivision (a) due to estate matters or
litigation for which the director or his or her designee is a party,
the applicant may request approval from the bureau to secure a bond
by an admitted surety insurer guaranteeing the payment to each
account of any shortages in the trust funds. Along with the fee and
the application to assign the license and transfer ownership, any
applicant requesting an exception to subdivision (a) shall submit to
the bureau a report, signed under penalty of perjury
by an authorized representative, setting forth :
(1) the reasons requested for the exception to the audit
requirement ; and , (2) a list
of all trust accounts for the funeral establishment showing the
corpus of the trust, accumulated income , and current
account balances for each account. If the bureau approves the request
to secure a bond, the bureau shall notify the applicant of the
approval and of the requirements of this section. Within
(2) Any applicant who knowingly
provides false information pursuant to the requirements of this
subdivision shall be subject to a civil penalty in an amount not to
exceed five thousand dollars ($5,000), in addition to any other
remedies that may be available to the bureau. An action for a
civil penalty under this paragraph may be brought by any public
prosecutor in the name of the people of the State of California.
(3) Within 30 days
from the date of the approval by the bureau, the applicant shall file
satisfactory proof of the posting of a bond meeting the requirements
of this section with the bureau. Once satisfactory proof of the bond
is filed with the bureau and any other requirements for assignment
have been met, the funeral establishment's license may be assigned.
(c) Any applicant that obtains approval from the bureau to post a
bond shall obtain a bond that is in an amount equal to 50 percent
greater than the corpus of the trust and otherwise meet the
requirements of this chapter. Within one year from the date of
acceptance of the surety bond by the bureau and prior to the
expiration of the current bond, the funeral establishment shall file
a new request with the bureau to post another bond and receive
approval by the bureau consistent with the requirements set forth in
subdivision (b). This requirement shall be met for each year in which
the assignee fails to submit an audit report and fund any shortages
as required in subdivision (a).
(d) The assignee shall comply with all provisions previously
placed on the assignor. The assignee shall maintain the bond referred
to in this section after assignment of the funeral establishment's
license by the bureau.
SEC. 2. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.