BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1131
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          Date of Hearing:  June 13, 2012

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                                Cameron Smyth, Chair
                    SB 1131 (La Malfa) - As Amended:  May 8, 2012

           SENATE VOTE  :  37-0
           
          SUBJECT  :  Public cemetery districts:  interment.

           SUMMARY  :  Allows the Anderson Cemetery District, Cottonwood 
          Cemetery District, and Silveyville Cemetery District to inter 
          nonresidents under specified conditions.  Specifically,  this 
          bill  :   

          1)Allows the Cottonwood Cemetery District in Shasta County, the 
            Anderson Cemetery District in Shasta County, and the 
            Silveyville Cemetery District in Solano County to use their 
            cemeteries for up to a total of 400 internments each, not to 
            exceed 40 interments each per calendar year, for interment in 
            the ground or a columbarium of any person who is not a 
            resident or a property taxpayer of any cemetery district, and 
            who does not qualify for that interment pursuant to existing 
            law, if all of the following apply:

             a)   The board of trustees determines that the district's 
               cemetery has adequate space for the foreseeable future;

             b)   The district has an endowment care fund that requires a 
               contribution for every interment of at least the minimum 
               amount set pursuant to existing law; and,

             c)   The district requires the payment of a nonresident fee 
               set pursuant to existing law.

          2)Finds and declares that a special law is necessary because of 
            the unique circumstances pertaining to these specific cemetery 
            districts.

           EXISTING LAW  :

          1)States that a cemetery district shall limit interments to the 
            following:

             a)   Persons who are residents of the district;








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             b)   Persons who are former residents of the district and who 
               acquired interment rights while they were residents of the 
               district;

             c)   Persons who pay property taxes on property located in 
               the district;

             d)   Persons who formerly paid property taxes on property 
               located in the district and who acquired interment rights 
               while they paid those property taxes;

             e)   Eligible nonresidents of the district, as provided; or,

             f)   Persons who are family members of any person described 
               in this section.

          2)Authorizes the Oroville Cemetery District to use its cemetery 
            on Feather River Boulevard, north of Oro Dam Boulevard for up 
            to a total of 100 interments, for interment in the ground of 
            any person who is not a resident of the Oroville Cemetery 
            District, if all of the following apply:

             a)   The board of trustees determines that the cemetery has 
               adequate space for the foreseeable future;

             b)   The Oroville Cemetery District has an endowment care 
               fund that requires at least the minimum payment prescribed 
               by law; and,

             c)   The Oroville Cemetery District requires the payment of a 
               nonresident fee prescribed by law.

          3)Authorizes Elsinore Valley Cemetery District (EVCD) to use a 
            portion of its cemetery formerly known as Home of Peace for up 
            to a total of 536 interments for non-residents of EVCD who 
            meet specified criteria.

          4)Requires that before approving such interments the following 
            must occur: 

             a)   The board of trustees for EVCD must determine that the 
               cemetery has adequate space for the foreseeable future;

             b)   EVCD has an endowment care fund that requires at least a 








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               minimum payment as prescribed by law; and,

             c)   EVCD requires the payment of a non-resident fee as 
               prescribed by law.

           FISCAL EFFECT  :  None

           COMMENTS  :   

          1)California's 253 public cemetery districts are separate local 
            governments that operate cemeteries and provide interment 
            services, mostly in rural areas and suburbs that were formerly 
            rural communities.  County boards of supervisors appoint the 
            cemetery districts' boards of trustees, composed of three to 
            five registered voters from within the districts' boundaries.  
            The districts finance their operations with small shares of 
            local property tax revenues, by selling interment rights and 
            charging for services.  

            State law limits who may be buried in a district cemetery.  
            Generally, cemetery districts can bury only residents, former 
            residents, property taxpayers, former taxpayers, certain 
            eligible nonresidents, and their family members.

          2)Responding to an Attorney General's opinion, the Legislature 
            allowed the Oroville Cemetery District (Butte County) to inter 
            up to 100 nonresidents in a former Jewish cemetery which the 
            District had acquired (SB 1906, Johnson, 1982).  When it 
            revised the Public Cemetery District Law, the Legislature 
            retained Oroville's special provision (SB 341, Senate Local 
            Government Committee, 2003).  The Legislature allowed the 
            Elsinore Valley Cemetery District (Riverside County) to inter 
            up to 536 nonresidents in a former Jewish cemetery, under 
            specified conditions (AB 1969, Jeffries, 2010).  Last year, to 
            facilitate a group purchase of cemetery plots by members of 
            the Congregation Bet Haverim Synagogue, the Legislature 
            allowed the Davis cemetery district to inter up to 500 
            nonresidents under specified conditions (AB 966, Yamada, 
            2011).

          3)The Anderson Cemetery District (Shasta County) and Cottonwood 
            Cemetery District (Shasta County) were both established in 
            1943 to provide cemetery services to residents in the cities 
            of Anderson and Cottonwood and in some unincorporated parts of 
            Shasta County.  In 2005, the state dedicated the Northern 








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            California Veterans Cemetery, which is located less than 20 
            miles away from both the Anderson and Cottonwood districts' 
            cemeteries.  During the most recent complete fiscal year, the 
            Northern California Veterans Cemetery performed 505 burials.  
            After the veterans' cemetery opened nearby, annual interments 
            in the Anderson and Cottonwood districts' cemeteries 
            decreased, creating significant fiscal challenges for both 
            districts.  

            The Silveyville Cemetery District (Solano County) was 
            established in 1927.  It owns and operates three cemeteries:  
            Dixon Cemetery, Binghampton Cemetery, and Tremont Cemetery.  
            In 2006, the federal government opened the Sacramento Valley 
            National Cemetery, which is located less than 15 miles from 
            each of the Silveyville District's three cemeteries.  Annual 
            interments in the Silveyville District's cemeteries decreased 
            after the veterans' cemetery opened.

          4)This bill allows three cemetery districts to inter up to 40 
            nonresidents in each cemetery's district - up to a maximum of 
            400 - provided that a nonresident fee is paid, the district's 
            board of trustees affirms that there is adequate space for the 
            foreseeable future, and the cemetery has an endowment care 
            fund.  

            According to the author, the Anderson, Cottonwood, and 
            Silveyville cemetery districts have each experienced a 
            significant struggle due to the steadily rising cremation rate 
            and the decline of casket burials.  With the openings of 
            nearby state and federal veterans' cemeteries, the districts' 
            interment rates have dropped drastically.  This bill is 
            sponsored by the Cottonwood Cemetery District.

          5)The Cemetery and Mortuary Association of California and the 
            California Funeral Directors Association are opposed to this 
            bill because they believe that it "encourages municipalities 
            to compete with private companies for business in a manner 
            that is both unnecessary and unfair."

           6)Support arguments  :  In light of the numerous fiscal challenges 
            facing public cemeteries, revenues from nonresident burials 
            could offer significant financial benefits to districts that 
            are struggling to continue providing cemetery services.  
            Supporters argue that this bill increases the likelihood that 
            cemeteries with lower burial rates will be able to serve their 








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            communities for current and future generations.



             Opposition arguments  :  Opposition argues that there is a sound 
            public policy rationale for existing law and the statutory 
            restrictions because cemetery districts are intended to serve 
            their residents, and this bill creates an opportunity for 
            municipalities to engage in business practices that compete 
            with the private sector.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Cottonwood Cemetery District �SPONSOR]
          Allen and Dahl Funeral Chapel
          Anderson Cemetery District
          Burney Cemetery District
          Castroville Public Cemetery District
          Corning Cemetery District
          Cottonwood Chamber of Commerce
          Fair Oaks Cemetery District
          Galt-Arno Cemetery District
          Gridley-Biggs Cemetery District
          Hills Ferry Cemetery District
          Los Banos Cemetery District
          Madera Cemetery District
          Orland Cemetery District
          Oroville Cemetery District
          Selma Cemetery District
          Shasta County Board of Supervisors
          Vacaville-Elmira Cemetery District

           Opposition 
           
          California Funeral Directors Association
          Cemetery and Mortuary Association of California

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 
          319-3958 












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