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 1, 2011) |SENATE: |36-0 |(August 21, 2012) |
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(vote not relevant)
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|COMMITTEE VOTE: |8-0 |(August 29, 2012) |RECOMMENDATION: |concur |
|B.P. & C.P. | | | | |
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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
AB 374
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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 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.
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4)Authorizes the Bureau to enforce preneed funeral arrangement 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:
0005782