BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1615 (Miller) - Human remains.
          
          Amended: August 6, 2012         Policy Vote: EQ 7-0  B,P&ED 8-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 6, 2012                      Consultant: 
          Bob Franzoia  
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 1615 would require the Cemetery and Funeral 
          Bureau to license and regulate hydrolysis facilities and 
          hydrolysis facility managers and would enact requirements 
          substantially similar to crematoria.  

          Fiscal Impact: $50,000 to $100,000 in 2012-13 and 2013-14 from 
          the General Fund to adopt rules and regulations for hydrolysis 
          facilities and managers.
              Minor, if any, fee revenue to the Cemetery Fund initially 
              or annually.
              Minor costs to certified unified program agencies, offset 
              by exiting fee authority.

          Background:  As noted in the Environmental Quality Committee 
          analysis, alkaline hydrolysis is a process by which human or 
          animal tissue can be dissolved into their chemical components.  
          The process involves subjecting the body to a basic, or 
          alkaline, solution and is typically accomplished by immersing 
          the body in a solution with a high concentration of potassium 
          hydroxide.  Hydroxide is able to react with and break down (or 
          hydrolyze) the organic material, including fats, carbohydrates, 
          proteins, and nucleic acids, that make up our body into their 
          simpler components, namely amino acids and peptides, sugars, 
          fatty acids and nucleotides.  Although alkaline conditions will 
          break down organic material without applied heat, increasing the 
          temperature significantly increases the rate of decomposition.  
          Some hydrolysis vessels use applied pressure to increase the 
          temperature to nearly double that of the normal boiling point of 
          water and can therefore accomplish complete dissolution of 
          tissue within two to three hours.  After the effluent from the 
          hydrolysis procedure is drained, nonhydrolyzable bone fragments 
          are recovered, rinsed and subsequently pulverized into a powder 








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          that can be disposed of in a manner analogous to cremated 
          remains.  

          Business and Professions Code 9764.1 provides that the fee for a 
          crematory manager examination and reexamination may not exceed 
          $500 and the license and renewal fee may not $100.  Business and 
          Professions Code 9786 provides every crematory licensee 
          operating a crematory shall pay an annual regulatory charge for 
          each crematory, to be fixed by the bureau at not more than $400. 
           This bill provides that the fee to take an exam to become a 
          licensed hydrolysis facility manager or to obtain or renew a 
          license shall not exceed the reasonable cost of the exam or the 
          licensure administration.

          Further, this bill adds Business and Professions Code 9789.5 (d) 
          which provides an applicant shall pay the Cemetery Fund the sum 
          fixed by the bureau at not in excess of the reasonable cost of 
          investigation or $400 to defray the expenses of the 
          investigation and in the event the sum shall be insufficient, 
          provide the authority to increase that fee to not more than 
          $900.  A hydrolysis facility licensee shall pay an annual 
          regulatory fee not to exceed $400.

          These fee levels are insufficient to fund the bureau's costs 
          associated with adopting rules and regulations or reimbursing 
          state agencies for their costs in assisting with the adoption of 
          rules and regulations regarding minimum system requirements.

          Proposed Law: This bill would require that fees paid to finance 
          hydrolysis facility regulation be deposited in the Cemetery 
          Fund.  By depositing moneys in a continuously appropriated fund, 
          this bill makes an appropriation.

          By expanding the definition of crimes related to the disposal of 
          human remains and creating new crimes, this bill would impose a 
          state mandated local program.  This is a non reimbursable 
          mandate.

          Staff Comments: This bill is proposing to use moneys from fees 
          for purposes beyond the reasonable cost of regulation.  The 
          bureau, primarily a licensing entity, does not have the 
          technical expertise in the area of water quality regulation and 
          toxic or hazardous material regulation.  The bureau will likely 
          need to contract for that expertise in order to (1) develop 








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          documentation necessary for a hydrolysis facility applicant to 
          prove compliant with all applicable environmental rules and 
          regulations and (2) adopt rules and regulations regarding 
          minimum system requirements for allowable hydrolysis chambers 
          including, but not limited to, the pH range that the chamber 
          must be fully compatible with, the minimum temperature that the 
          chamber must be able reach, and the duration of time that the 
          chamber must be able to sustain that temperature for the 
          complete destruction of pathogens.

          If there is opposition to or at least concern about the process 
          from fee payers, special fund state agencies may experience 
          protest over the use of regulatory funds for the workload 
          associated with adopting rules and regulations regarding minimum 
          system requirement for allowable hydrolysis chambers.
          
          Recommended Amendments: To resolve the conflict between the 
          statutorily restricted fees, which generally apply to and 
          reflect bureau regulatory workload, and the unique permitting 
          requirements of hydrolysis facilities, staff recommends this 
          bill be amended to authorize the bureau to charge fees on a one 
          time basis sufficient to recover its costs.