BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1615
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1615 (Miller)
          As Amended  March 29, 2012
          Majority vote

           BUSINESS & PROFESSIONS             9-0              
          APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Bill Berryhill,  |Ayes:|Fuentes, Harkey,          |
          |     |Allen, Butler, Eng,       |     |Blumenfield, Bradford,    |
          |     |Hagman, Hill, Ma, Smyth   |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Ammiano, Hill, Lara,      |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
           ----------------------------------------------------------------- 

           SUMMARY :  Authorizes the Cemetery and Funeral Bureau (Bureau) to 
          license and regulate hydrolysis facilities and hydrolysis 
          facility managers, as specified.  Specifically,  this bill  : 

          1)Authorizes the Bureau to establish a fee schedule for 
            examination and licensure as a hydrolysis facility manager, as 
            specified.

          2)Requires the Bureau to require an applicant to prove 
            compliance with all applicable laws, rules, regulations, 
            ordinances, and orders, and prohibits the Bureau from issuing 
            a hydrolysis facility license until the Bureau is satisfied 
            that the public interest, human health, and environmental 
            quality will be served by the applicant.

          3)Requires an applicant to obtain all relevant permits from 
            local and state agencies to demonstrate compliance with 
            hazardous waste, water quality, and drinking water standards, 
            as specified.

          4)Requires the Bureau to adopt and amend rules and regulations 
            prescribing standards of knowledge, experience, and financial 
            responsibility for applicants for a hydrolysis facility 
            license, as specified.

          5)Authorizes the Bureau, upon receipt of an application for a 








                                                                  AB 1615
                                                                  Page  2


            hydrolysis facility license, to investigate the physical 
            status, plans, specifications, and financing of the proposed 
            hydrolysis facility, the character of the applicant, as 
            specified, and any other qualifications required of the 
            applicant under the requirements of this bill, and for this 
            purpose to subpoena witnesses, administer oaths, and take 
            testimony.

          6)Requires the applicant to pay to the Cemetery Fund a sum fixed 
            by the Bureau not to exceed the reasonable cost of 
            investigation or $400 to defray the expenses of investigation. 
             In the event the sum is insufficient to defray all of the 
            expenses, the applicant shall, within five days after the 
            Bureau makes a request, deposit an additional sum sufficient 
            to defray expenses, provided that the total sum does not 
            exceed $900.

          7)Prohibits a licensed hydrolysis facility from conducting 
            hydrolysis unless specified requirements are met, and requires 
            a hydrolysis facility that prohibits relatives or responsible 
            parties from viewing the hydrolysis process to disclose this 
            fact in writing prior to the signing of any contract for 
            hydrolysis.

          8)Requires a hydrolysis facility licensee operating a licensed 
            hydrolysis facility to pay an annual regulatory charge for 
            each hydrolysis facility, to be fixed by the Bureau at not 
            more than the reasonable cost of regulatory administration or 
            $400 and an additional charge to be fixed by the Bureau at not 
            more $8.50 per hydrolysis that occurred during the preceding 
            quarter, to be deposited in the Cemetery Fund.

          9)Requires each hydrolysis facility for which a license is 
            required to be operated under the supervision of a manager 
            qualified as such in accordance with rules adopted by the 
            Bureau. Each manager shall be required to successfully pass a 
            written examination, as specified. 

          10)Prohibits persons from engaging in the business of, acting in 
            the capacity of, or advertising or assuming to act as, a 
            hydrolysis facility manager without first obtaining a license 
            from the Bureau.

          11)Specifies that it is a misdemeanor for any person, firm, or 








                                                                  AB 1615
                                                                  Page  3


            corporation to hydrolyze human remains, or to engage in the 
            disposition of those remains, without a valid, unexpired 
            hydrolysis facility license, as specified.

          12)Subjects hydrolysis facility licensees to discipline by the 
            Bureau, as specified.

          13)Provides for additional licensing, reporting, operational, 
            recordkeeping, training, tracking, storage, and disclosure 
            requirements; specifies allowable disposition of hydrolyzed 
            remains; defines pertinent terms; and, makes conforming 
            changes.

           FISCAL EFFECT  :  According to Assembly Appropriations Committee:

          1)One-time special fund costs during 2012-13 to the Bureau of an 
            unknown amount, likely in the range of $50,000 to $200,000, to 
            develop and adopt regulations and examinations requirements 
            for hydrolysis facility operations and licensing. 

          2)Annual special fund costs to the Bureau of an unknown, likely 
            minor amount, in the range of tens of thousands of dollars.  

          3)One-time minor revenue in 2013-14 to the Bureau of an unknown 
            amount, likely no more than $10,000, 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. 

          4)One-time minor revenue in 2013-14 to the Bureau of an unknown 
            amount, likely 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. 


          5)Ongoing minor annual revenue, starting in 2014-15, 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. 


          6)The costs of implementing this bill, both in the first year of 
            operation and in subsequent years, are likely to exceed fee 








                                                                  AB 1615
                                                                  Page  4


            revenue by tens of thousands of dollars. It is not clear the 
            Cemetery Fund, from which these expenses would be paid, could 
            support such unfunded costs. 

           COMMENTS  :  According to the author's office, "AB 1615 paves the 
          way for new business opportunity and job creation in the state 
          by introducing regulations for the commercial operation of new, 
          safe and environmentally responsible, end of life alternatives 
          for the people of California.

          "Alkaline Hydrolysis, also referred to as resomation, water 
          resolution and bio-cremation, is a 'green', eco-friendly 
          alternative to traditional cremation by incineration.  It is 
          advanced technology that, through an automated process, 
          accelerates the natural decomposition process of the body 
          utilizing a heated potassium hydroxide (alkaline) and water 
          solution to respectfully reduce human remains to a presentable, 
          contaminant-free ash.

          "Unlike cremation by incineration, alkaline hydrolysis does not 
          pollute the air, nor does it emit any green-house gas, and its 
          CO2 emissions are twenty times less that its traditional 
          alternative. Alkaline hydrolysis also neutralizes embalming 
          fluids and toxins to protect soil and underground water from 
          pollutants."
           

          Analysis Prepared by  :    Angela Mapp / B.,P. & C.P. / (916) 
          319-3301 


                                                                FN: 0003883