BILL ANALYSIS �
AB 374
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 374 (Hill)
As Amended August 15, 2012
Majority vote
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|ASSEMBLY: | |(June 01, 2011) |SENATE: |36-0 |(August 21, |
| | | | | |2012) |
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(vote not relevant)
Original Committee Reference: B., P. & C. P.
SUMMARY : Specifies that if an applicant for assignment of a
funeral establishment's license is not able to submit an audit
report due to specified circumstances, the applicant may request
approval from the Cemetery and Funeral Bureau (Bureau) to secure a
bond guaranteeing the payment of any shortages in the
establishment's trust funds and provides an administrative penalty
if an applicant provides misleading information, as specified.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Allow a funeral establishment's license to be assigned upon
payment of a fixed fee, as specified, and the filing of a
completed application.
2)Provide that if an applicant for assignment of a funeral
establishment cannot submit the required audit report 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 shortages in the
trust funds.
3)Require any applicant requesting to obtain a surety bond, as
specified, to submit to the bureau a report signed by an
authorized representative, setting forth the reasons requested
for the exception to the audit requirement and a list of all
trust accounts for the funeral establishment showing the
principal of the trust, accumulated income, and current account
balances for each account.
4)Specify that if the bureau approves the request to secure a
bond, the bureau shall notify the applicant of the approval and
AB 374
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of the specified requirements.
5)Provide that if any applicant who knowingly provides false or
misleading information shall be subject to an administrative
citation, which may include an order of abatement and a fine in
an amount not to exceed $5,000 per violation, in addition to any
other remedies that may be available to the Bureau.
6)Provide that if the Bureau approves the request to secure a
bond, within 30 days from the approval date, the applicant must
file proof with the Bureau of obtaining a bond meeting the
requirements of this section.
7)Provide that once satisfactory proof of the bond is filed with
the Bureau, and any other assignments have been met, the funeral
establishment's license may be assigned to the applicant.
8)Require any applicant that obtains approval from the Bureau to
post a bond shall obtain a bond that is in an amount equal to
50% greater than the principal of the trust.
9)Require that after the license is assigned, the funeral
establishment must annually request approval and obtain a bond
covering the trust fund accounts.
EXISITING LAW :
1)Licenses and regulates funeral establishments, funeral
directors, embalmers, crematories, crematory managers,
cemeteries, cemetery managers, cemetery brokers, cemetery
salespersons, and cremated remains disposers by the Cemetery and
Funeral Bureau (Bureau) within the Department of Consumer
Affairs (DCA).
2)Authorizes the assignment of a funeral establishment 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.
3)Requires any shortages in the preneed trust funds to be funded
in order for a funeral establishment license to be assigned.
4)Authorizes the Bureau to enforce preneed funeral arrangement
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laws and to adopt implementing rules and regulations.
5) Defines "preneed arrangement," "preneed agreement" or "preneed"
to mean written instruction regarding goods or services or both
goods and services for final disposition of human remains when
the goods or services are not provided until the time of death,
and may be either unfunded or paid for in advance of need.
6)Provides that protection of the public shall be the highest
priority for the Bureau in exercising its licensing, regulatory,
and disciplinary functions. Whenever the protection of the
public is inconsistent with other interests sought to be
promoted, the protection of the public shall be paramount.
AS PASSED BY THE ASSEMBLY , this bill established a title act for
athletic trainers (AT) by prohibiting an individual from holding
himself or herself out as an AT unless he or she met specified
requirements, including graduating from a college or university
after completing an accredited athletic training education
program, or having completed requirements for certification by the
Board of Certification, Inc., prior to January 1, 2004. It
declared an unfair business practice for any person to use the
title of "AT" or "certified athletic trainer" or any other term,
such as "licensed," "registered," or "ATC," that implied or
suggested that the person was certified as an AT, if the person
did not meet the specified requirements.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly-approved provisions of this bill were deleted. This
bill, as amended is inconsistent with Assembly actions.
Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916)
319-3301 FN: 0005208