Amended in Senate August 27, 2015

Amended in Senate June 29, 2015

Amended in Assembly April 22, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 180


Introduced by Assembly Member Bonilla

(Principal coauthor: Senator Hill)

January 26, 2015


An act to amend Sectionsbegin delete 205,end delete 7600, 7602, 7607,begin delete 7608,end delete 7609, 7622.2, 7685.3, 7685.5,begin delete 7725.2, and 7727end deletebegin insert and 7725.2end insert of, to amend the heading of Chapter 12 (commencing with Section 7600) of Division 3 of,begin insert to amend, repeal, and add Sections 205, 7608, and 7727 of,end insert to add Sections 7610.1,begin delete 7700.1,end deletebegin insert 7711.1,end insert 7711.2, 7711.3, 7711.4, 7711.5, 7711.6, 7711.7, 7711.8, 7711.9, 7711.10, 7711.11, 7711.12, 7729.1, 7729.2, 7729.3, 7729.4, 7729.5, 7729.6, 7729.7, 7729.8, 7729.9, 7729.10, 7730, 7730.1, 7730.2, 7730.3, 7730.4, 7730.5, 7730.6, 7730.7, 7730.8, 7730.9,begin delete 7730.10,end delete 7731, 7731.1,begin delete 7731.2, 7731.3, and 7731.4end deletebegin insert and 7731.2end insert to, to add Article 1.5 (commencing with Section 7611), Article 2.5 (commencing with Section 7637), Article 3.5 (commencing with Section 7651), Article 4.5 (commencing with Section 7672), and Article 6.5 (commencing with Section 7712) to Chapter 12 of Division 3 of,begin insert to add and repeal Sections 7730.10, 7731.3, and 7731.4 of,end insert to repeal Sections 7619.2, 7620, andbegin delete 7261end deletebegin insert 7621end insert of, to repeal Chapter 19 (commencing with Section 9600) of Division 3 of, and to repeal and add Section 7606 of, the Business and Professions Code, relating to professions and vocations, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 180, as amended, Bonilla. Cemetery and Funeral Bureau.

Existing law provides for the licensure and regulation of funeral directors, funeral establishments, and embalmers, by the Cemetery and Funeral Bureau pursuant to the Funeral Directors and Embalmers Law, and a violation of the law is a crime. Existing law provides for the licensure and regulation of cemetery managers, cemetery brokers, cemetery salespersons, crematories, and crematory managers, pursuant to the Cemetery Act, by the Cemetery and Funeral Bureau. Existing law directs charges imposed under the law and the act to be deposited into the State Funeral Directors and Embalmers Fund or the Cemetery Fund, respectively. Under existing law, these funds are continuously appropriated. Existing law, the Cemetery Act, requires the bureau to survey each of its licensees to obtain information to determine if the endowment care fund levels of the licensee’s cemetery are sufficient to cover the cost of future operation, as specified, and required the bureau to report its findings and recommendations to the Legislature by January 1, 2008.

This bill would consolidate the Funeral Directors and Embalmers Law and the Cemetery Act into the Cemetery and Funeral Bureaubegin delete Act andend deletebegin insert Act. The bill, beginning July 1, 2016, wouldend insert direct charges imposed under the act to be deposited into the renamed Cemetery and Funeral Fund, a continuously appropriated fund. Because additional moneys would be deposited into a continuously appropriated fund, the bill would make an appropriation. The bill would subject the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and require the review to be performed as if the act is scheduled to be repealed on January 1, 2020. The bill would require the bureau to conduct a study to obtain information to determine if the endowment care fund levels of its licensees’ cemeteries are sufficient to cover the cost of future maintenance, as specified, and to report its findings and recommendations to those policy committees bybegin delete November 1, 2018end deletebegin insert January 1, 2018end insert. The bill would no longer require an applicant to include specified information or proof when applying to become a funeral director. The bill would also remove obsolete references and make additional nonsubstantive changes.

By expanding the scope of a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

begin delete
P3    1

SECTION 1.  

Section 205 of the Business and Professions Code
2 is amended to read:

3

205.  

(a) There is in the State Treasury the Professions and
4Vocations Fund. The fund shall consist of the following special
5funds:

6(1) Accountancy Fund.

7(2) California Architects Board Fund.

8(3) Athletic Commission Fund.

9(4) Barbering and Cosmetology Contingent Fund.

10(5) Cemetery and Funeral Fund.

11(6) Contractors’ License Fund.

12(7) State Dentistry Fund.

13(8) Guide Dogs for the Blind Fund.

14(9) Home Furnishings and Thermal Insulation Fund.

15(10) California Architects Board-Landscape Architects Fund.

16(11) Contingent Fund of the Medical Board of California.

17(12) Optometry Fund.

18(13) Pharmacy Board Contingent Fund.

19(14) Physical Therapy Fund.

20(15) Private Investigator Fund.

21(16) Professional Engineer’s and Land Surveyor’s Fund.

22(17) Consumer Affairs Fund.

23(18) Behavioral Sciences Fund.

24(19) Licensed Midwifery Fund.

25(20) Court Reporters’ Fund.

26(21) Veterinary Medical Board Contingent Fund.

27(22) Vocational Nurses Account of the Vocational Nursing and
28Psychiatric Technicians Fund.

29(23) Electronic and Appliance Repair Fund.

P4    1(24) Geology and Geophysics Account of the Professional
2Engineer’s and Land Surveyor’s Fund.

3(25) Dispensing Opticians Fund.

4(26) Acupuncture Fund.

5(27) Physician Assistant Fund.

6(28) Board of Podiatric Medicine Fund.

7(29) Psychology Fund.

8(30) Respiratory Care Fund.

9(31) Speech-Language Pathology and Audiology and Hearing
10Aid Dispensers Fund.

11(32) Board of Registered Nursing Fund.

12(33) Psychiatric Technician Examiners Account of the
13Vocational Nursing and Psychiatric Technicians Fund.

14(34) Animal Health Technician Examining Committee Fund.

15(35) State Dental Hygiene Fund.

16(36) State Dental Assistant Fund.

17(37) Structural Pest Control Fund.

18(38) Structural Pest Control Eradication and Enforcement Fund.

19(39) Structural Pest Control Research Fund.

20(b) For accounting and recordkeeping purposes, the Professions
21and Vocations Fund shall be deemed to be a single special fund,
22and each of the several special funds therein shall constitute and
23be deemed to be a separate account in the Professions and
24Vocations Fund. Each account or fund shall be available for
25expenditure only for the purposes as are now or may hereafter be
26provided by law.

end delete
27begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 205 of the end insertbegin insertBusiness and Professions Codeend insert
28begin insert is amended to read:end insert

29

205.  

(a) There is in the State Treasury the Professions and
30Vocations Fund. The fund shall consist of the following special
31funds:

32(1) Accountancy Fund.

33(2) California Architects Board Fund.

34(3) Athletic Commission Fund.

35(4) Barbering and Cosmetology Contingent Fund.

36(5) Cemetery Fund.

37(6) Contractors’ License Fund.

38(7) State Dentistry Fund.

39(8) State Funeral Directors and Embalmers Fund.

40(9) Guide Dogs for the Blind Fund.

P5    1(10) Home Furnishings and Thermal Insulation Fund.

2(11) California Architects Board-Landscape Architects Fund.

3(12) Contingent Fund of the Medical Board of California.

4(13) Optometry Fund.

5(14) Pharmacy Board Contingent Fund.

6(15) Physical Therapy Fund.

7(16) Private Investigator Fund.

8(17) Professional Engineer’s and Land Surveyor’s Fund.

9(18) Consumer Affairs Fund.

10(19) Behavioral Sciences Fund.

11(20) Licensed Midwifery Fund.

12(21) Court Reporters’ Fund.

13(22) Veterinary Medical Board Contingent Fund.

14(23) Vocational Nurses Account of the Vocational Nursing and
15Psychiatric Technicians Fund.

16(24) Electronic and Appliance Repair Fund.

17(25) Geology and Geophysics Account of the Professional
18Engineer’s and Land Surveyor’s Fund.

19(26) Dispensing Opticians Fund.

20(27) Acupuncture Fund.

21(28) Physician Assistant Fund.

22(29) Board of Podiatric Medicine Fund.

23(30) Psychology Fund.

24(31) Respiratory Care Fund.

25(32) Speech-Language Pathology and Audiology and Hearing
26Aid Dispensers Fund.

27(33) Board of Registered Nursing Fund.

28(34) Psychiatric Technician Examiners Account of the
29Vocational Nursing and Psychiatric Technicians Fund.

30(35) Animal Health Technician Examining Committee Fund.

31(36) State Dental Hygiene Fund.

32(37) State Dental Assistant Fund.

33(38) Structural Pest Control Fund.

34(39) Structural Pest Control Eradication and Enforcement Fund.

35(40) Structural Pest Control Research Fund.

36(b) For accounting and recordkeeping purposes, the Professions
37and Vocations Fund shall be deemed to be a single special fund,
38and each of the several special funds therein shall constitute and
39be deemed to be a separate account in the Professions and
40Vocations Fund. Each account or fund shall be available for
P6    1expenditure only for the purposes as are now or may hereafter be
2provided by law.

begin insert

3(c) This section shall remain in effect only until July 1, 2016,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before July 1, 2016, deletes or extends that date.

end insert
6begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 205 is added to the end insertbegin insertBusiness and Professions
7Code
end insert
begin insert, to read:end insert

begin insert
8

begin insert205.end insert  

(a) There is in the State Treasury the Professions and
9Vocations Fund. The fund shall consist of the following special
10funds:

11(1) Accountancy Fund.

12(2) California Architects Board Fund.

13(3) Athletic Commission Fund.

14(4) Barbering and Cosmetology Contingent Fund.

15(5) Cemetery and Funeral Fund.

16(6) Contractors’ License Fund.

17(7) State Dentistry Fund.

18(8) Guide Dogs for the Blind Fund.

19(9) Home Furnishings and Thermal Insulation Fund.

20(10) California Architects Board-Landscape Architects Fund.

21(11) Contingent Fund of the Medical Board of California.

22(12) Optometry Fund.

23(13) Pharmacy Board Contingent Fund.

24(14) Physical Therapy Fund.

25(15) Private Investigator Fund.

26(16) Professional Engineer’s and Land Surveyor’s Fund.

27(17) Consumer Affairs Fund.

28(18) Behavioral Sciences Fund.

29(19) Licensed Midwifery Fund.

30(20) Court Reporters’ Fund.

31(21) Veterinary Medical Board Contingent Fund.

32(22) Vocational Nurses Account of the Vocational Nursing and
33Psychiatric Technicians Fund.

34(23) Electronic and Appliance Repair Fund.

35(24) Geology and Geophysics Account of the Professional
36Engineer’s and Land Surveyor’s Fund.

37(25) Dispensing Opticians Fund.

38(26) Acupuncture Fund.

39(27) Physician Assistant Fund.

40(28) Board of Podiatric Medicine Fund.

P7    1(29) Psychology Fund.

2(30) Respiratory Care Fund.

3(31) Speech-Language Pathology and Audiology and Hearing
4Aid Dispensers Fund.

5(32) Board of Registered Nursing Fund.

6(33) Psychiatric Technician Examiners Account of the
7Vocational Nursing and Psychiatric Technicians Fund.

8(34) Animal Health Technician Examining Committee Fund.

9(35) State Dental Hygiene Fund.

10(36) State Dental Assistant Fund.

11(37) Structural Pest Control Fund.

12(38) Structural Pest Control Eradication and Enforcement Fund.

13(39) Structural Pest Control Research Fund.

14(b) For accounting and recordkeeping purposes, the Professions
15and Vocations Fund shall be deemed to be a single special fund,
16and each of the several special funds therein shall constitute and
17be deemed to be a separate account in the Professions and
18Vocations Fund. Each account or fund shall be available for
19expenditure only for the purposes as are now or may hereafter be
20provided by law.

21(c) This section shall become operative on July 1, 2016.

end insert
22

begin deleteSEC. 2.end delete
23begin insertSEC. 3.end insert  

The heading of Chapter 12 (commencing with Section
247600) of Division 3 of the Business and Professions Code is
25amended to read:

26 

27Chapter  12. Cemetery and Funeral Act
28

 

29

begin deleteSEC. 3.end delete
30begin insertSEC. 4.end insert  

Section 7600 of the Business and Professions Code is
31amended to read:

32

7600.  

This chapter of the Business and Professions Code
33constitutes the chapter on cemetery and funeral law. It may be
34cited as the Cemetery and Funeral Act.

35

begin deleteSEC. 4.end delete
36begin insertSEC. 5.end insert  

Section 7602 of the Business and Professions Code is
37amended to read:

38

7602.  

(a) (1) There is in the department the Cemetery and
39Funeral Bureau, under the supervision and control of the director.

P8    1(2) The director may appoint a chief at a salary to be fixed and
2determined by the director, with the approval of the Director of
3Finance. The duty of enforcing and administering this chapter is
4vested in the chief, and he or she is responsible to the director
5therefor. The chief shall serve at the pleasure of the director.

6(3) Every power granted or duty imposed upon the director
7under this chapter may be exercised or performed in the name of
8the director by a deputy director or by the chief, subject to such
9conditions and limitations as the director may prescribe.

10(b) Notwithstanding any other law, the powers and duties of the
11bureau, as set forth in this chapter, shall be subject to review by
12the appropriate policy committees of the Legislature. The review
13shall be performed as if this chapter is scheduled tobegin delete repealend deletebegin insert be
14repealedend insert
on January 1, 2020.

15

begin deleteSEC. 5.end delete
16begin insertSEC. 6.end insert  

Section 7606 of the Business and Professions Code is
17repealed.

18

begin deleteSEC. 6.end delete
19begin insertSEC. 7.end insert  

Section 7606 is added to the Business and Professions
20Code
, to read:

21

7606.  

The bureau may establish necessary rules and regulations
22for the administration and enforcement of this act and the laws
23subject to its jurisdiction and prescribe the form of statements and
24reports provided for in this act. The rules and regulations shall be
25adopted, amended, or repealed in accordance with the provisions
26of the Administrative Procedure Act (Chapter 3.5 (commencing
27with Section 11340) of Part 1 of Division 3 of Title 2 of the
28Government Code).

29

begin deleteSEC. 7.end delete
30begin insertSEC. 8.end insert  

Section 7607 of the Business and Professions Code is
31amended to read:

32

7607.  

The bureau may inspect the premises in which the
33business of a funeral establishment, cemetery, or crematory is
34conducted, where embalming is practiced, or where human remains
35are stored.

begin delete36

SEC. 8.  

Section 7608 of the Business and Professions Code is
37amended to read:

38

7608.  

The Director of Consumer Affairs may employ and
39appoint all employees necessary to properly administer the work
40of the bureau, in accordance with civil service regulations.

P9    1With the approval of the Director of Finance, and, subject to the
2provisions of Section 159.5, the bureau shall employ investigators
3and attorneys to assist the bureau in prosecuting violations of this
4chapter, whose compensation and expenses shall be payable from
5the Cemetery and Funeral Fund.

end delete
6begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 7608 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
7amended to read:end insert

8

7608.  

begin insert(a)end insertbegin insertend insert The Director of Consumer Affairs may employ and
9appoint all employees necessary to properly administer the work
10of the bureau, in accordance with civil service regulations.

11With the approval of the Director of Finance, and, subject to the
12provisions of Section 159.5, the bureau shall employ investigators
13and attorneys to assist the bureau in prosecuting violations of this
14chapterbegin insert relating to funeral directors and embalmersend insert, whose
15compensation and expenses shall be payable only out of the State
16Funeral Directors and Embalmers Fund.

begin insert

17(b) This section shall remain in effect only until July 1, 2016,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before July 1, 2016, deletes or extends that date.

end insert
20begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 7608 is added to the end insertbegin insertBusiness and Professions
21Code
end insert
begin insert, to read:end insert

begin insert
22

begin insert7608.end insert  

(a) The Director of Consumer Affairs may employ and
23appoint all employees necessary to properly administer the work
24of the bureau, in accordance with civil service regulations.

25With the approval of the Director of Finance, and, subject to
26the provisions of Section 159.5, the bureau shall employ
27investigators and attorneys to assist the bureau in prosecuting
28violations of this chapter, whose compensation and expenses shall
29be payable only out of the Cemetery and Funeral Fund.

30(b) This section shall become operative on July 1, 2016.

end insert
31

begin deleteSEC. 9.end delete
32begin insertSEC. 11.end insert  

Section 7609 of the Business and Professions Code
33 is amended to read:

34

7609.  

This chapter does not apply to, or in any way interfere
35with, the duties of any officer of any public institution or of any
36duly accredited medical college, nor does it apply to any hospital
37licensed pursuant to Chapter 2 (commencing with Section 1250)
38of Division 2 of the Health and Safety Code, or anyone engaged
39only in the furnishing of burial receptacles.

P10   1

begin deleteSEC. 10.end delete
2begin insertSEC. 12.end insert  

Section 7610.1 is added to the Business and
3Professions Code
, to read:

4

7610.1.  

In the enforcement of this act and the laws subject to
5its jurisdiction, the bureau has all the powers and is subject to all
6the responsibilities vested in and imposed upon the head of a
7department under Chapter 2 (commencing with Section 11150) of
8Part 1 of Division 3 of Title 2 of the Government Code.

9

begin deleteSEC. 11.end delete
10begin insertSEC. 13.end insert  

Article 1.5 (commencing with Section 7611) is added
11to Chapter 12 of Division 3 of the Business and Professions Code,
12to read:

13 

14Article 1.5.  Definitions and Regulation of Cemeteries
15

 

16

7611.  

The definitions in this article govern the meaning of
17 terms used in the act except as otherwise provided expressly or by
18necessary implication.

19

7611.1.  

“Act” means the Cemetery and Funeral Bureau Act.

20

7611.2.  

A “cemetery broker” is a person who, other than in
21reference to an occasional sale, sells or offers for sale, buys, or
22offers to buy, lists, leases or offers to lease, or solicits, or negotiates
23the purchase or sale, lease, or exchange of cemetery property or
24interment services, or interest therein, for his or her own account
25or for another.

26

7611.3.  

A “cemetery salesperson” is a natural person who,
27other than in reference to an occasional sale, is employed by a
28cemetery broker to sell, or offer for sale, list or offer to list, or to
29buy, or to offer to buy, or to lease, or offer to lease, or to solicit,
30or to negotiate the purchase or sale or lease or exchange of
31cemetery property or interment services, or any interest therein,
32for his or her own account or for another.

33

7611.4.  

(a) A “cemetery manager” is a person engaged in or
34conducting, or holding himself or herself out as engaged in those
35activities involved in, or incidental to, the maintaining, operating,
36or improving a cemetery licensed under this chapter, the interring
37of human remains, and the care, preservation, and embellishment
38of cemetery property.

39(b) For persons licensed pursuant to Section 7637.1, a “cemetery
40manager” is a person engaged in or conducting, or holding himself
P11   1or herself out as engaged in those activities involved in, or
2incidental to, the following:

3(1) The maintaining, operating, or improving of a cemetery
4 licensed under this chapter.

5(2) The interment of human remains.

6(3) The care, preservation, and embellishment of cemetery
7property.

8(4) Activities described in Section 7637.2.

9

7611.5.  

A “crematory manager” is a person engaged in or
10conducting, or holding himself or herself out as engaged in those
11activities involved in, or incidental to, the maintaining or operating
12begin insert ofend insert a crematory licensed under this chapter, and the cremation of
13human remains.

14

7611.6.  

The definitions in Chapter 1 (commencing with Section
157000) of Part 1 of Division 7 of the Health and Safety Code are
16applicable to this act.

17

7611.7.  

“Cemetery licensee” means any cemetery broker,
18cemetery salesperson, or cemetery manager.

19

7611.8.  

“Crematory licensee” shall mean a corporation,
20partnership, or natural person licensed pursuant to Article 6.5
21(commencing with Section 7712) and shall mean a cemetery
22licensee for purposes of disciplinary action under Article 6
23(commencing with Section 7686).

24

7611.9.  

A “cremated remains disposer” is a person who, for
25his or her own account or for another, disposes of, or offers to
26dispose of, cremated human remains by scattering over or on land
27or sea.

28

7611.10.  

“Endowment care” or “endowed care” shall include
29both general and special care funds.

30

7612.  

An “occasional sale” is a sale of cemetery property not
31acquired or held for purposes of resale or speculation, provided
32such sale is not one of a series of sales sufficient in number, scope,
33and character to constitute engaging in the business of selling or
34reselling or holding for speculation cemetery property.

35

7612.1.  

“Public cemetery” means a cemetery owned and
36operated by a city, county, city and county, or public cemetery
37district.

38

7612.2.  

This act does not apply to any of the following:

39(a) A religious corporation, church, religious society or
40denomination, a corporation sole administering temporalities of
P12   1any church or religious society or denomination, or any cemetery
2organized, controlled, and operated by any of them.

3(b) A public cemetery.

4(c) Any private or fraternal burial park not exceeding 10 acres
5in area, established prior to September 19, 1939; however, (1)  
6those cemeteries shall be subject to the cemetery brokerage
7provisions of this act, and (2)   any cemetery shall be subject to all
8of the provisions of this act if it collects a care, maintenance, or
9embellishment deposit or sets up a trust for burial purposes
10pursuant to Section 8775 of the Health and Safety Code, including
11funeral services such as mortuary, cremation, or other commodities
12or services furnished at the time of and in connection with that
13funeral or cremation.

14

7612.3.  

The bureau shall disclose on its Internet Web site,
15information about each cemetery subject to the jurisdiction of the
16bureau. In addition to the information required by Section 27, the
17bureau shall disclose the name of the owner of each cemetery, the
18name of the cemetery, the business address of the cemetery owner,
19and the physical address of the cemetery.

20

7612.4.  

(a) Notwithstanding Section 8115 of the Health and
21Safety Code, in order to protect consumers, the bureau shall adopt
22regulations that establish minimum standards of maintenance for
23endowment care cemeteries under the jurisdiction of the bureau.
24The regulations shall consider differences in cemetery size,
25location, topography, and type of interments. The regulations shall
26also consider the extent to which funds are available from the
27cemetery’s endowment care funds to perform maintenance.

28(b) The standards established pursuant to this section shall not
29supersede any standards of a higher level of care established
30pursuant to Section 8115 of the Health and Safety Code.

31

7612.5.  

(a) (1) Any person who holds or has held, or was
32named on, any license or registration under the jurisdiction of the
33bureau that has been, within the immediately preceding 10 years,
34revoked, suspended, placed on probation, or surrendered under a
35stipulated decision, and who is employed by, or who seeks
36employment with, a licensed cemetery, a licensed crematory, or a
37licensed cemetery broker in any capacity, shall inform the licensed
38cemetery manager, the licensed crematory manager, or the licensed
39cemetery broker of that revocation, suspension, probation, or
40surrender.

P13   1(2) A person subject to this subdivision shall inform the licensed
2cemetery manager, the licensed crematory manager, or the licensed
3cemetery broker upon application for employment by completing
4a form that shall be made available by the bureau.

5(b) The cemetery manager, crematory manager, or cemetery
6broker who is informed pursuant to subdivision (a) shall notify the
7bureau by submitting the form within 30 days of being so informed.
8Failure of the cemetery manager, crematory manager, or cemetery
9broker to notify the bureau shall be a cause for a warning. A
10cemetery manager, crematory manager, or cemetery broker shall
11not be subject to a warning if his or her failure to notify the bureau
12is due to a false statement made by an employee.

13(c) Any person required to notify the cemetery manager,
14crematory manager, or cemetery broker under subdivision (a) who
15fails to do so or who makes a false statement on the required form
16shall be subject to disciplinary action if that person is a licensee
17of the bureau, or that failure or false statement shall be cause for
18denial of a license under Section 480.

19(d) For purposes of subdivision (a), the term “named on” applies
20to a person who was an owner, partner, or corporate officer of an
21entity that was licensed or registered under the act at the time that
22entity’s license or registration under the act was revoked,
23suspended, placed on probation, or surrendered.

24

7612.6.  

(a) Each cemetery authority shall file with the bureau
25annually, on or before June 1, or within five months after close of
26their fiscal year provided approval has been granted by the bureau
27as provided for in Section 7612.7, a written report in a form
28prescribed by the bureau setting forth the following:

29(1) The number of square feet of grave space and the number
30of crypts and niches sold or disposed of under endowment care by
31specific periods as set forth in the form prescribed.

32(2) The amount collected and deposited in both the general and
33special endowment care funds segregated as to the amounts for
34crypts, niches, and grave space by specific periods as set forth
35either on the accrual or cash basis at the option of the cemetery
36authority.

37(3) A statement showing separately the total amount of the
38general and special endowment care funds invested in each of the
39investments authorized by law and the amount of cash on hand
P14   1not invested, which statement shall actually show the financial
2condition of the funds.

3(4) A statement showing separately the location, description,
4and character of the investments in which the special endowment
5care funds are invested. The statement shall show the valuations
6of any securities held in the endowment care fund as valued
7pursuant to Section 7614.7.

8(5) A statement showing the transactions entered into between
9the corporation or any officer, employee, or stockholder thereof
10and the trustees of the endowment care funds with respect to those
11endowment care funds. The statement shall show the dates,
12amounts of the transactions, and shall contain a statement of the
13reasons for those transactions.

14(b) The report shall be verified by the president or vice president
15and one other officer of the cemetery corporation. The information
16submitted pursuant to paragraphs (2), (3), (4), and (5) of
17subdivision (a) shall be accompanied by an annual audit report of
18the endowment care fund and special care fund signed by a certified
19public accountant or public accountant. The scope of the audit
20shall include the inspection, review, and audit of the general
21purpose financial statements of the endowment care fund and
22special care fund, which shall include the balance sheet, the
23statement of revenues, expenditures, and changes in fund balance.

24(c) If a cemetery authority files a written request prior to the
25date the report is due, the bureau may, in its discretion, grant an
26additional 30 days within which to file the report.

27

7612.7.  

Each cemetery authority requesting a change of filing
28date of the endowment care fund report from a calendar year to a
29fiscal year or a change in fiscal year shall file a petition with the
30bureau prior to the close of the year of request. The bureau may
31approve such petition provided that no report shall be for a period
32of more than 12 months.

33

7612.8.  

The report shall state the name of the trustee or trustees
34of the endowment care fund. Any change of trustee shall be
35reported to the bureau within a period of 30 days after the change
36is made.

37

7612.9.  

A copy of each annual audit report shall be transmitted
38to the bureau and shall be a public record. It shall also be open for
39public inspection at the offices of the cemetery authority during
40normal business hours. If the cemetery authority does not maintain
P15   1offices in the county in which its cemetery is located, it shall file
2a copy of the annual audit report with the county clerk of the
3county, which shall be subject to public inspection.

4

7612.10.  

(a) Any cemetery authority that does not file its report
5within the time prescribed by Section 7612.6 may be assessed a
6fine by the bureau in an amount not to exceed four hundred dollars
7($400) per month for a maximum of five months. The amount of
8the fine shall be established by regulation in accordance with the
9Administrative Procedure Act (Chapter 3.5 (commencing with
10Section 11340) of Part 1 of Division 3 of Title 2 of the Government
11Code). Failure to pay the fine within 15 days after receipt of written
12notification of the assessment or, where a timely request for waiver
13or reduction of the fine has been filed, within 15 days after receipt
14of written notification of the bureau’s decision in the matter, shall
15be cause for disciplinary action.

16(b) A cemetery authority may request waiver or reduction of a
17fine by making a written request therefor. The request shall be
18postmarked within the time specified above for payment of the
19fine and shall be accompanied by a statement showing good cause
20for the request.

21(c) The bureau may waive or reduce the fine where a timely
22request is made and where it determines, in its discretion, that the
23cemetery authority has made a sufficient showing of good cause
24for the waiver or reduction.

25

7612.11.  

(a) The bureau shall conduct a study to obtain
26information to determine if the endowment care fund levels of
27each licensee’s cemetery are sufficient to cover the cost of future
28maintenance. The bureau shall also review the levels of endowment
29care funds that have previously been reported pursuant to this
30chapter by licensed cemeteries.

31(b) The bureau shall report its findings and recommendations
32to thebegin delete Senate Committee on Business, Professions and Economic
33Development and the Assembly Committee on Business and
34Profession by November 1, 2018end delete
begin insert appropriate policy committees
35of the Legislature by January 1, 2018end insert
.

36

7613.  

The bureau shall examine the reports filed with it as to
37their compliance with the requirements of the Health and Safety
38Code as to the amount of endowment care funds collected and as
39to the manner of investment of those funds.

P16   1

7613.1.  

The bureau shall examine the endowment care funds
2of a cemetery authority:

3(a) Whenever it deems necessary and at least once every five
4years.

5(b) Whenever the cemetery authority in charge of endowment
6care funds fails to file the report required by this article.

7(c) Whenever the accountant or auditor qualifies his or her
8certification of the report that is prepared and signed by a certified
9public accountant licensed in the state and prepared in accordance
10with Section 7612.6.

11(d) The reasonable and necessary cost of the examination
12performed under subdivision (b) or (c) shall be paid by the
13cemetery authority.

14(e) A certified copy of the actual costs, or a good faith estimate
15of the costs where actual costs are not available, signed by the
16director or his or her designee, shall be prima facie evidence of
17the reasonable and necessary costs of the examination.

18(f) The actual and necessary expense of the examination under
19subdivision (a) shall, in the discretion of the bureau, be paid by
20the cemetery authority whenever the examination requires more
21than one day and the need for continuing the examination is directly
22related to identified omissions and errors in the management of
23endowment care funds.

begin insert
24

begin insert7613.2.end insert  

(a) If any cemetery authority refuses to pay such
25expenses, the bureau shall refuse it a certificate of authority and
26shall revoke any existing certificate of authority. All examination
27expense moneys collected by the bureau shall be paid into the State
28Treasury to the credit of the Cemetery Fund.

29(b) This section shall remain in effect only until July 1, 2016,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before July 1, 2016, deletes or extends that date.

end insert
32

7613.2.  

begin insert(a)end insertbegin insertend insert If any cemetery authority refuses to pay such
33expenses, the bureau shall refuse it a certificate of authority and
34shall revoke any existing certificate of authority. All examination
35expense moneys collected by the bureau shall be paid into the State
36Treasury to the credit of the Cemetery and Funeral Fund.

begin insert

37(b) This section shall become operative on July 1, 2016.

end insert
38

7613.3.  

(a) In making the examination, the bureau:

P17   1(1) Shall have free access to the books and records relating to
2the trust funds, their collection and investment, and the number of
3graves, crypts, and niches under endowment care.

4(2) Shall inspect and examine the trust funds to determine their
5condition and the existence of the investments.

6(3) Shall ascertain if the cemetery corporation has complied
7with all the laws applicable to trust funds.

8(b) Upon request by the bureau, a cemetery authority shall
9provide records to substantiate the expenditures of the income of
10the trust funds. If a cemetery authority fails to reasonably comply
11with this request, the bureau may have access to books, records,
12and accounts of a cemetery authority for purposes of ascertaining
13compliance with applicable laws.

14

7613.4.  

(a) Subject to subdivision (b), a limited liability
15company certificated as a cemetery authority pursuant to Section
167018 of the Health and Safety Code may provide services of
17licensed cemetery brokers, cemetery salespersons, cemetery
18managers, funeral directors, embalmers, crematorium licensees,
19and any other person licensed under this code to provide services
20relating to cemeteries and funerals by employing one or more of
21these licensed persons.

22(b) At the time of certification, and at all times during which a
23limited liability company transacts intrastate business as a cemetery
24authority, the company shall be required to provide security for
25claims against it based upon acts, errors, or omissions of its
26licensed employees as described in subdivision (a) by complying
27with one, or a combination, of the following:

28(1) (A) Maintaining a policy or policies of insurance against
29liability imposed on or against it by law for damages arising out
30of claims. However, the total aggregate limit of liability under the
31policy or policies of insurance for a limited liability company that
32employs five or fewer licensed persons shall not be less than one
33million dollars ($1,000,000), and for a limited liability company
34that employs more than five licensees, an additional one hundred
35thousand dollars ($100,000) of insurance shall be obtained for
36each additional licensee except that the maximum amount of
37insurance is not required to exceed five million dollars ($5,000,000)
38in any one designated period, less amounts paid in defending,
39settling, or discharging claims as set forth in this paragraph. The
P18   1policy or policies may be issued on a claims-made or occurrence
2basis, and shall cover:

3(i) In the case of a claims-made policy, claims initially asserted
4in the designated period.

5(ii) In the case of an occurrence policy, occurrences during the
6designated period.

7(B) For purposes of this paragraph, “designated period” means
8a policy year or any other designated period in the policy that is
9not greater than 12 months.

10(C) The impairment or exhaustion of the aggregate limit of
11liability by amounts paid under the policy in connection with the
12settlement, discharge, or defense of claims applicable to a
13designated period shall not require the limited liability company
14to acquire additional insurance coverage for that designated period.
15The policy or policies of insurance may be in a form reasonably
16available in the commercial insurance market and may be subject
17to those terms, conditions, exclusions, and endorsements that are
18typically contained in those policies. A policy or policies of
19insurance maintained pursuant to this paragraph may be subject
20to a deductible or self-insured retention.

21(D) Upon the dissolution and winding up of the limited liability
22company, the company shall, with respect to any insurance policy
23or policies then maintained pursuant to this paragraph, maintain
24or obtain an extended reporting period endorsement or equivalent
25provision in the maximum aggregate limit of liability required to
26comply with this paragraph for a minimum of three years if
27reasonably available from the insurer.

28(2) Maintaining in trust or bank escrow, cash, bank certificates
29of deposit, United States Treasury obligations, bank letters of
30credit, or bonds of insurance or surety companies as security for
31payment of liabilities imposed by law for damages arising out of
32all claims. However, the maximum amount of security for a limited
33liability company that employs five or fewer licensed persons shall
34not be less than one million dollars ($1,000,000), and for a limited
35liability company that employs more than five licensees rendering
36professional services on behalf of the company, an additional one
37hundred thousand dollars ($100,000) of security shall be obtained
38for each additional licensee except that the maximum amount of
39security is not required to exceed five million dollars ($5,000,000).
40The limited liability company remains in compliance with this
P19   1section during a calendar year notwithstanding amounts paid during
2that calendar year from the accounts, funds, Treasury obligations,
3letters of credit, or bonds in defending, settling, or discharging
4claims of the type described in this paragraph, provided that the
5amount of those accounts, funds, Treasury obligations, letters of
6credit, or bonds was at least the amount specified in the preceding
7sentence as of the first business day of that calendar year.
8Notwithstanding the pendency of other claims against the limited
9liability company, it shall be deemed to be in compliance with this
10paragraph as to a claim if within 30 days after the time that a claim
11is initially asserted through service of a summons, complaint, or
12comparable pleading in a judicial or administrative proceeding,
13the limited liability company has provided the required amount of
14security by designating and segregating funds in compliance with
15the requirements of this paragraph.

16(3) Unless the limited liability company has satisfied paragraph
17(4), each member of a limited liability company certificated as a
18cemetery authority that provides professional services rendered
19by employees who are licensed professionals described in
20subdivision (a), by virtue of that person’s status as a member,
21thereby automatically guarantees payment of the difference
22between the maximum amount of security required for the limited
23liability company by this subdivision and the security otherwise
24provided in accordance with paragraphs (1) and (2), provided that
25the aggregate amount paid by all members under these guarantees
26shall not exceed the difference. Neither withdrawal by a member
27nor the dissolution and winding up of the limited liability company
28shall affect the rights or obligations of a member arising prior to
29withdrawal or dissolution and winding up, and the guarantee
30provided for in this paragraph shall apply only to conduct that
31occurred prior to the withdrawal or dissolution and winding up.
32Nothing contained in this subdivision shall affect or impair the
33rights or obligations of the members among themselves, or the
34limited liability company, including, but not limited to, rights of
35contribution, subrogation, or indemnification.

36(4) Confirming, pursuant to the procedure in subdivision (c) of
37Section 16956 of the Corporations Code, that, as of the most
38recently completed fiscal year of the limited liability company, it
39had a net worth equal to or exceeding ten million dollars
40($10,000,000). The limited liability company shall transmit
P20   1evidence of this paragraph to the bureau in a form similar to the
2form submitted by a limited liability partnership providing
3 alternative security provisions pursuant to subdivision (c) of
4Section 16956 of the Corporations Code.

5(c) (1) A limited liability company may aggregate the security
6required pursuant to paragraphs (1) to (4), inclusive, of subdivision
7(b).

8(2) For purposes of compliance with this section, the provisions
9of subdivision (d) of Section 16956 of the Corporations Code shall
10apply to a limited liability company certificated as a cemetery
11authority.

12

7613.5.  

(a) A person licensed under this code as a cemetery
13broker, cemetery salesperson, cemetery manager, funeral director,
14embalmer, crematorium licensee, or other person licensed to
15provide services related to cemeteries and funerals shall not have
16any ownership interest as a member in a limited liability company
17certificated as a cemetery authority pursuant to Section 7018 of
18the Health and Safety Code.

19(b) If a limited liability company admits, as a member with
20ownership interest, a licensed person described in subdivision (a),
21the limited liability company, by operation of law, shall be deemed
22in violation of subdivision (e) of Section 17701.04 of the
23Corporations Code, and the members shall be treated as partners
24with joint and several liability for claims made upon acts, errors,
25or omissions arising out of services provided by any licensed
26person described in subdivision (a).

27(c) If the bureau determines that a licensed cemetery broker,
28cemetery salesperson, cemetery manager, funeral director,
29embalmer, crematorium licensee, or other person licensed to
30provide services related to cemeteries and funerals has an
31ownership interest as a member in the limited liability company,
32the bureau shall suspend the limited liability company’s certificate
33of authority. The bureau shall reinstate the certificate of authority
34only upon finding that the licensed cemetery broker, cemetery
35salesperson, cemetery manager, funeral director, embalmer,
36crematorium licensee, or other person licensed to provide services
37related to cemeteries and funerals has been divested of his or her
38ownership interest in the limited liability company or has
39voluntarily surrendered his or her license.

P21   1

7613.6.  

The bureau may administer oaths and examine under
2oath any person relative to the endowment care fund. The
3examination shall be conducted in the principal office of the person
4or body in charge of the endowment care fund and shall be private.

5

7613.7.  

If any examination made by the bureau, or any report
6filed with it, shows that there has not been collected and deposited
7in the endowment care funds the minimum amounts required by
8the Health and Safety Code since September 19, 1939, the bureau
9shall require a cemetery corporation to comply with Sections 8743
10and 8744 of the Health and Safety Code.

11

7613.8.  

Whenever the bureau finds, after notice and hearing,
12that any endowment care funds have been invested in violation of
13the Health and Safety Code, it shall by written order mailed to the
14person or body in charge of the fund require the reinvestment of
15the funds in conformity to that code within a period which shall
16be not less than two years if the investment was made prior to
17October 1, 1949, not less than six months if the investment was
18made on or after October 1, 1949, and before the effective date of
19the amendment of this section by the 1969 Regular Session of the
20Legislature, and not less than 30 days if the investment is made
21on or after the effective date of the amendment. The period may
22be extended by the bureau in its discretion.

23

7613.9.  

The superior court of the county in which the principal
24office of the cemetery authority in charge of endowment care funds
25is located shall, upon the filing by the bureau of a verified
26application showing any of the following conditions hereinafter
27enumerated to exist, issue its order vesting title to any endowment
28care funds of a cemetery authority in the bureau, and directing the
29bureau forthwith to take possession of all necessary books, records,
30property, real and personal, and assets, and to conduct as
31conservator, the management of such endowment care funds, or
32so much thereof as to the bureau may seem appropriate:

33(a) That the cemetery authority has refused to submit its books,
34papers, accounts, or affairs to the reasonable examination of the
35bureau.

36(b) That the cemetery authority has neglected to observe an
37order of the bureau to make good within the time prescribed by
38law any deficiency in its investments of endowment care funds.

39(c) That the cemetery authority is found, after an examination,
40to be in such condition that its further management of its
P22   1endowment care funds will be hazardous to its members,
2plotholders, or to the public.

3(d) That the cemetery authority has violated its articles of
4incorporation or any law of the state.

5(e) That any officer, director, agent,begin delete servantend deletebegin insert servant,end insert or employee
6of the cemetery authority person refuses to be examined under
7oath relative to the endowment care funds thereof.

8(f) That any person has embezzled or otherwise wrongfully
9diverted any of the endowment care funds of the cemetery
10authority.

11(g) The order shall continue in force and effect until, on the
12application either of the bureau or of the cemetery authority, it
13shall, after a full hearing, appear to the court that the ground for
14the order does not exist or has been removed and that the cemetery
15authority can properly resume title and possession of its property
16and the management of its endowment care funds.

17

7613.10.  

When it has been alleged by verified petition pursuant
18to Section 7613.1 or when the bureau on its own investigation
19determines that there is probable cause to believe that any of the
20conditions set forth in Section 7613.9 exist or that irreparable loss
21and injury to the endowment care funds of a cemetery authority
22has occurred or may occur unless the bureau so acts immediately,
23the bureau, without notice and before applying to the court for any
24order, may take possession of the endowment care funds and the
25books, records, and accounts relating thereto of the cemetery
26authority, and retain possession subject to the order of the court.
27Any person having possession of and refusing to deliver any assets,
28begin delete booksend deletebegin insert books,end insert or records of a cemetery authority against which a
29seizure order has been issued by the bureau shall be guilty of a
30 misdemeanor and punishable by a fine not exceeding one thousand
31dollars ($1,000) or imprisonment not exceeding one year, or by
32both that fine and imprisonment.

33

7614.  

If any city, county, or city and county exercises its
34authority to address public health, safety, or welfare issues in
35connection with a cemetery within its jurisdiction and if the
36certificate of authority of the cemetery has been revoked or
37suspended or has not been renewed, and the bureau holds the
38endowment care fund of the certificate of authority under applicable
39provisions of this code, the costs of any action that constitutes
40care, maintenance, or embellishment of the cemetery within the
P23   1meaning of Section 8726 of the Health and Safety Code shall be
2eligible for reimbursement from available income from any
3endowment care fund in existence for the cemetery. For purposes
4of this section, local jurisdiction action may be based on charter,
5 ordinance, or inherent police powers. Any claim for money or
6damages for an act or omission by the local jurisdiction acting in
7accord with this section shall be subject to all otherwise applicable
8immunities contained in Division 3.6 (commencing with Section
9810) of Title 1 of the Government Code.

10

7614.1.  

Whenever the bureau makes any seizure as provided
11in Section 7613.10, it shall, on demand of the bureau, be the duty
12of the sheriff of any county of this state, and of the police
13department of any municipal corporation therein, to furnish the
14bureau with deputies,begin delete patrolmenend deletebegin insert patrolmen,end insert or officers as may be
15necessary to assist the bureau in making and enforcing that seizure.

16

7614.2.  

Immediately after effecting a seizure pursuant to
17Section 7613.10, the bureau shall institute a proceeding as provided
18for in Section 7613.9.

19

7614.3.  

Notwithstanding any other law, the bureau shall be the
20custodian of all moneys collected or surrendered pursuant to
21Sections 7613.9 and 7613.10. As custodian, the bureau may deposit
22those moneys, or any part thereof, without court approval, in any
23of the following: a bank or trust company legally authorized and
24empowered by the state to act as a trustee in the handling of trust
25funds; in a centralized State Treasury system bank account; or in
26funds administered by the State Treasurer.

27

7614.4.  

The bureau shall maintain, regulate, operate, and
28control the property situated in the County of Amador, referred to
29as the Elkin Property in Judicial Council Coordination Proceedings
30Nos. 1814 and 1817, Order Re Proposed Neptune Memorial,
31Disposition of the Elkin Property, and Order Re Final Disposition
32of Ashes of the Sacramento Superior Court, and legally described
33as “Parcel 16-B as shown on the certain Record or Survey for
34Eugene S. Lowrance, et ux, filed for record May 17, 1971, in Book
3517 of Maps and Plats at page 87, Amador Countybegin delete Records”.end delete
36begin insert Records.end insertbegin insertend insert The bureau shall administer and supervise endowment
37funds established by the court for the property. The bureau shall
38exercise the authority granted by this section for the sole purpose
39of protecting the human remains resting on the property and
40preserving the property in its natural state.

P24   1

7614.5.  

The bureau is authorized to bring action to enforce the
2provisions of the law subject to its jurisdiction, in which actions
3it shall be represented by the Attorney General.

4

7614.6.  

The bureau shall enforce and administer Part 1
5(commencing with Section 8100), Part 3 (commencing with Section
68250), and Part 5 (commencing with Section 9501) of Division 8
7of the Health and Safety Code.

8

7614.7.  

In any report to the bureau, all bonds, debentures, or
9other evidences of debt held by a cemetery corporation if amply
10secured and if not in default as to principal or interest may be
11valued as follows:

12(a) If purchased at par at the par value.

13(b) If purchased above or below par on the basis of the purchase
14price adjusted so as to bring the value to par at maturity and so as
15to yield the effective rate of interest on the basis at which the
16purchase was made.

17(c) In such valuation, the purchase price shall in no case be
18taken at a higher figure than the actual market value at the time of
19purchase.

20

7614.8.  

Any security or other evidence of debt if in default as
21to principal or interest or if not amply secured shall not be valued
22as an asset of the endowment care fund above its market value.

23

7614.9.  

Notwithstanding any other law, every cemetery
24authority shall present to the survivor of the deceased who is
25handling the burial or cremation arrangements or the responsible
26party a copy of any preneed agreement that has been signed and
27paid in full, or in part, by or on behalf of the deceased and is in
28the possession of the cemetery authority. The copy may be
29presented in person, by certified mail, or by facsimile transmission,
30as agreed upon by the survivor of the deceased or the responsible
31party. A cemetery authority who knowingly fails to present the
32preneed agreement to the survivor of the deceased or the
33responsible party shall be liable for a civil fine equal to three times
34the cost of the preneed agreement, or one thousand dollars ($1,000),
35 whichever is greater.

36

begin deleteSEC. 12.end delete
37begin insertSEC. 14.end insert  

Section 7619.2 of the Business and Professions Code
38 is repealed.

P25   1

begin deleteSEC. 13.end delete
2begin insertSEC. 15.end insert  

Section 7620 of the Business and Professions Code
3 is repealed.

4

begin deleteSEC. 14.end delete
5begin insertSEC. 16.end insert  

Section 7621 of the Business and Professions Code
6 is repealed.

7

begin deleteSEC. 15.end delete
8begin insertSEC. 17.end insert  

Section 7622.2 of the Business and Professions Code
9 is amended to read:

10

7622.2.  

A person shall not open or maintain a place or
11establishment at which to engage in or conduct, or hold himself,
12herself, or itself out as engaging in or conducting, the activities of
13a funeral director without a license.

14

begin deleteSEC. 16.end delete
15begin insertSEC. 18.end insert  

Article 2.5 (commencing with Section 7637) is added
16to Chapter 12 of Division 3 of the Business and Professions Code,
17to read:

18 

19Article 2.5.  Cemetery Brokerage Regulations
20

 

21

7637.  

This article does not apply to the following cases or to
22the following persons:

23(a) A person acting with reference to an occasional sale of his
24or her own property.

25(b) The regular officers of a cemetery corporation holding a
26certificate of authority acting with reference to the corporation’s
27property when they receive no special compensation therefor.

28(c) Persons making an occasional sale under a duly executed
29power of attorney from others.

30(d) The services rendered by an attorney at law in performing
31his or her duties in that capacity.

32(e) A receiver, trustee in bankruptcy, any person acting under
33orders of any court, or a trustee selling under a deed of trust.

34(f) A real estate broker or real estate salesperson, acting in that
35capacity in connection with the sale, lease, or exchange of real
36property, or interest therein, when the transfer of cemetery property
37is purely incidental to the sale, lease, or exchange of real property.

38

7637.1.  

A person shall not engage in the business of, act in the
39capacity of,begin insert orend insert advertise or assume to act as, a cemetery broker or
P26   1cemetery salesperson in this state without first obtaining a license
2from the bureau.

3

7637.2.  

Any act other than an occasional sale of buying or
4selling, leasing, or exchanging cemetery property or interment
5services of or for another or on his or her own account, or offering
6for another or for his or her own account to buy or sell, lease, or
7exchange cemetery property or interment services, or negotiating
8the purchase or sale, lease, or exchange of cemetery property or
9interment services, or negotiating the purchase or sale, lease, or
10exchange, or listing or soliciting, or negotiating a loan on or leasing
11of cemetery property or interment services constitutes the person
12making such offer, sale or purchase, lease, or exchange, or
13negotiating the loan, or listing or soliciting, a cemetery broker or
14cemetery salesperson.

15

7637.3.  

A person engaged in the business or acting in the
16capacity of abegin insert cemeteryend insert broker or abegin insert cemeteryend insert salesperson within
17this state shall not bring or maintain any action in the courts of
18this state for the collection of compensation for the performance
19of any of the acts mentioned in this article without alleging and
20proving that he or she was a duly licensed cemetery broker or
21cemetery salesperson at the time the alleged cause of action arose.

22

7637.4.  

(a) A cemetery broker shall not employ or compensate,
23directly or indirectly, any person for performing any of the acts
24within the scope of this article who is not a licensed cemetery
25broker, or a cemetery salesperson licensed under the cemetery
26broker employing or compensating him or her. A cemetery
27salesperson shall not be employed by or accept compensation from
28any person other than the cemetery broker under whom he or she
29is at the time licensed.

30(b) A salesperson shall not pay any compensation for performing
31any of the acts within the scope of this article to any licensee except
32through the cemetery broker under whom he or she is at the time
33licensed.

34(c) For a violation of any of the provisions of this section, the
35bureau may temporarily suspend or permanently revoke the license
36of the cemetery licensee in accordance with the provisions of this
37act relating to disciplinary proceedings.

38

7637.5.  

(a) It is a misdemeanor, punishable by a fine not
39exceeding one hundred dollars ($100) for each offense, for any
40person, whether obligor, escrowholder, or otherwise, to pay or
P27   1deliver to anyone a compensation for performing any of the acts
2within the scope of this article who is not known to be or who does
3not present evidence to such payer that he or she is a licensed
4cemetery broker at the time compensation is earned.

5(b) For violation of any of the provisions of this section, the
6bureau may temporarily suspend or permanently revoke the license
7of the cemetery licensee in accordance with the provisions of this
8act relating to disciplinary proceedings.

9

7637.6.  

Any person acting as a cemetery broker or cemetery
10salesperson without a license, or who advertises so as to indicate
11he or she is a cemetery broker without being so licensed, is guilty
12of a misdemeanor. If that person is a corporation, it shall be
13punished by a finebegin delete ofend delete not to exceed five thousand dollars ($5,000).

14

7637.7.  

(a) Any cemetery salesperson or cemetery broker who
15sells, causes to be sold, or offers for sale any cemetery property
16upon the promise, guarantee, or representation to the purchaser
17that the same may be resold or repurchased at a financial profit is
18guilty of a misdemeanor.

19(b) For violation of any of the provisions of this section, the
20bureau may temporarily suspend or permanently revoke the license
21of the cemetery salesperson or cemetery broker in accordance with
22the provisions of this act relating to disciplinary proceedings.

23(c) No violation of any of the provisions of this section by any
24cemetery salesperson or employee of any licensed cemetery broker
25shall cause the suspension or revocation of the license of the
26employer of the salesperson or employee unless it appears upon a
27hearing by the bureau that the employer had guilty knowledge of
28the violation.

29

7637.8.  

Every officer, agent, or employee of any company,
30and every other person who knowingly authorizes, directs, or aids
31in the publication, advertisement, distribution, orbegin delete circularizationend delete
32begin insert circulationend insert of any false statement or representation concerning
33any cemetery or cemetery brokerage business and every person
34who, with knowledge that any advertisement, pamphlet, prospectus,
35or letter concerning any cemetery brokerage business or any written
36statement that is false or fraudulent, issues, circulates, publishes,
37or distributes the same, or causes it to be issued, circulated,
38published, or distributed, or who in any other respect willfully
39violates or fails, omits, or neglects to obey, observe, or comply
40with any order, permit, decision, demand, or requirement of the
P28   1bureau under the provisions of this act relating to cemetery
2brokerage, is guilty of a misdemeanor, and, if a cemetery licensee,
3he or she shall be held to trial by the bureau for a suspension or
4revocation ofbegin delete thisend deletebegin insert his or herend insert cemetery license, as provided in the
5provisions of this act relating to disciplinary proceedings.

6

7637.9.  

Each cemetery broker, other than a cemetery
7corporation holding a certificate of authority, and each cemetery
8salesperson shall include in any advertising a statement that he or
9she is acting as a cemetery broker or cemetery salesperson.

10

7637.10.  

For violation of any of the provisions of Section
117637.9, the bureau may temporarily suspend or permanently revoke
12the license of the cemetery licensee in accordance with the
13provisions of this act relating to disciplinary proceedings.

14

7638.  

Any person, other than a person making an occasional
15sale, who advertises cemetery property for sale or exchange,
16without being duly licensed as a cemetery broker or a cemetery
17salesperson, or without possessing a certificate of authority as a
18cemetery corporation, is guilty of a misdemeanor. If such person
19is a corporation, it shall be punished by a fine of not to exceed five
20thousand dollars ($5,000).

21

begin deleteSEC. 17.end delete
22begin insertSEC. 19.end insert  

Article 3.5 (commencing with Section 7651) is added
23to Chapter 12 of Division 3 of the Business and Professions Code,
24to read:

25 

26Article 3.5.  Licenses and Certificates of Authority
27

 

28

7651.  

Application for license as a cemetery broker shall be
29made in writing on the form prescribed by the bureau and filed at
30the principal office of the bureau. The application shall be
31accompanied by the original cemetery broker’s license fee.

32

7651.1.  

The bureau shall not grant an original cemetery
33broker’s license to any person who is not a resident of this state.
34Change of residence to another state shall terminate the license.

35

7651.2.  

The bureau shall not grant an original cemetery
36broker’s license to any person who has not held a cemetery
37salesperson’s license for at least two years prior to the date of his
38or her application for the broker’s license, and during that time
39was not actively engaged in the business of a cemetery salesperson
40except that if an applicant for a cemetery broker’s license having
P29   1at least the equivalent of two years’ general cemetery experience
2files a written petition with the bureau setting forth his or her
3qualifications and experience and the bureau approves, he or she
4may be issued a cemetery broker’s license immediately upon
5passing the appropriate examinations and satisfying the other
6requirements of this article.

7

7651.3.  

Application for license as a cemetery salesperson shall
8be made in writing on the form prescribed by the bureau and filed
9at the principal office of the bureau. The application shall be signed
10by the applicant, and shall be accompanied by the cemetery
11salesperson’s license fee.

12

7651.4.  

Notwithstanding any other provision of this chapter,
13Section 7651.7 does not apply to an applicant for a cemetery
14salesperson’s license.

15

7651.5.  

The bureau shall investigate the qualifications of the
16applicants. Except as otherwise prescribed in this article, it may
17issue the license applied for to an applicant on a showing
18satisfactory to it that the following facts exist:

19(a) The applicant is properly qualified to perform the duties of
20a cemetery broker or salesperson.

21(b) Granting the license will not be against public interest.

22(c) The applicant intends actively and in good faith to carry on
23the business of a cemetery broker or a cemetery salesperson.

24(d) In the case of a corporate applicant, the articles of
25incorporation permit it to act as a cemetery broker.

26(e) In the case of an association or copartnership applying for
27such a license, its articles of association or agreement of partnership
28authorize it to act as a cemetery broker.

29(f) The license is not being secured for the purpose of permitting
30the applicant to advertise as a cemetery broker or salesperson
31without actually engaging in such business.

32(g) The applicant has not committed acts or crimes constituting
33grounds for denial of licensure under Section 480.

34

7651.6.  

All cemetery brokers who do not possess a certificate
35of authority shall, in addition to the requirements of this chapter,
36file with the bureau a satisfactory bond to the people of the State
37of California, duly executed by a sufficient surety or sureties to
38be approved by the bureau, in the amount of ten thousand dollars
39($10,000). That bond shall be conditioned for the honest and
40faithful performance by such broker and his or her salespersons
P30   1and employees of any undertaking as a licensed cemetery broker
2or salesperson or employee of said broker at any time when
3licensed under this chapter, and the strict compliance with the
4provisions of this chapter and of Division 8 (commencing with
5Section 8100) of the Health and Safety Code, relating to cemeteries,
6and the honest and faithful application of all funds received. That
7 bond shall be further conditioned upon the payment of all damages
8suffered by any person damaged or defrauded by reason of the
9violation of any of the provisions of this chapter or of Division 8
10(commencing with Section 8100) of the Health and Safety Code
11relating to cemeteries, or by reason of the violation of the obligation
12of such broker as an agent, as such obligations are laid down by
13the Civil Code, or by reason of any fraud connected with or
14growing out of any transactions contemplated by this chapter or
15Division 8 (commencing with Section 8100) of the Health and
16Safety Code.

17

7651.7.  

The bureau shall ascertain by written examination that
18the applicant, and, in case of a copartnership or corporation
19applicant for a cemetery broker’s license, that each officer,begin delete agentend delete
20begin insert agent,end insert or member thereof through whom it proposes to act as a
21cemetery licensee has:

22(a) Appropriate knowledge of the English language, including
23reading,begin delete writingend deletebegin insert writing,end insert and spelling, and of elementary arithmetic.

24(b) A fair understanding of:

25(1) Cemetery associations, cemetery corporations, and duties
26of directors.

27(2) Plot ownership, deeds, certificates of ownership, contracts
28of sale, liens, and leases.

29(3) Establishing, dedicating, maintaining, managing, operating,
30improving, and conducting a cemetery.

31(4) The care, preservation, and embellishment of cemetery
32property.

33(5) The care and preservation of endowment care funds, trust
34funds, and the investment thereof.

35(c) A general and fair understanding of the obligations between
36principal and agent, of the principles of cemetery brokerage
37practice and the business ethics pertaining thereto, as well as of
38the provisions of this act relating to cemetery brokerage.

39

7651.8.  

The bureau may, in its discretion, waive the
40examination of any applicant for a cemetery broker’s license who
P31   1held an unrevoked or unsuspended cemetery license on June 30
2of the preceding fiscal year as an individual broker, an officer of
3a corporation, or member of a copartnership.

4

7651.9.  

An application on the form prescribed by the bureau
5for the renewal of any unrevoked and unsuspended license filed
6before midnight of June 30 of the year for which such unrevoked
7and unsuspended license was issued, accompanied by the
8applicable renewal fee, entitles the applicant to continue operating
9under his or her existing license after its usual expiration date, if
10not previously suspended or revoked, and until such date as he or
11she is notified in writing that the application has been granted or
12denied.

13

7651.10.  

A cemetery license does not give authority to do any
14act specified in this act to any person other than the person to whom
15the license is issued.

16

7652.  

When a cemetery brokerage license is issued to a
17cemetery brokerage corporation, if it desires any of its officers
18other than the officer through whom it is already licensed to act
19under its license as a cemetery broker, it shall procure an additional
20license for each such officer. When a cemetery brokerage license
21is granted to cemetery brokerage copartnership, if it desires any
22of its members other than the one through whom it is already
23licensed to act as a cemetery broker, it shall procure an additional
24license for each such member.

25

7652.1.  

Each officer of a corporation through whom it is
26licensed to act as a cemetery broker, and each member of a
27copartnership through whom it is licensed to act as a cemetery
28broker, is, while so employed under such license, a licensed
29cemetery broker, but licensed only to act as such for and on behalf
30of the corporation or the copartnership, as officer or member,
31respectively.

32

7652.2.  

The cemetery licenses of both broker and salesperson
33shall be prominently displayed in the office of the broker.

34The cemetery salesperson’s license shall remain in the possession
35of the licensed cemetery broker employer until canceled or until
36the salesperson leaves the employ of the broker.

37

7652.3.  

Immediately upon the salesperson’s withdrawal from
38the employ of the broker, the broker shall return the salesperson’s
39license to the bureau for cancellation. A license canceled but not
40suspended or revoked may be reinstated within the fiscal year upon
P32   1receipt of application therefor and the fee for the reinstatement of
2the license.

3

7652.4.  

(a) Every licensed cemetery broker shall have and
4maintain a definite place of business in this state which shall serve
5as his or her office for the transaction of business.

6(b) No cemetery license authorizes the licensee to do business
7except from the location for which the cemetery license was issued.

8(c) Notice in writing shall be given the bureau of change of
9business location of a cemetery broker, whereupon the bureau shall
10issue a new cemetery license for the unexpired period. The change
11or abandonment of business location without notification to the
12bureau shall automatically cancel the license theretofore issued.

13

7652.5.  

(a) If the applicant for a cemetery broker’s license
14maintains more than one place of business within the state, he or
15she shall apply for and procure an additional license for each branch
16office so maintained. Every such application shall state the name
17of the person and the location of the place of business for which
18such license is desired.

19(b) The bureau may determine whether or not a broker is doing
20a cemetery brokerage business at or from any particular location
21which requires him or her to have a branch office license.

22

7652.6.  

Each cemetery broker shall erect and maintain a sign
23in a conspicuous place on the premises to indicate that he or she
24is a licensed cemetery broker and his or her name shall be clearly
25shown thereon. The size and place of the sign shall conform to
26regulations that may be adopted by the bureau.

27

7652.7.  

For a violation of any of the provisions of Sections
287652.2, 7652.3, 7652.4, and 7652.6, the bureau may temporarily
29suspend or permanently revoke the license of the cemetery licensee
30in accordance with the provisions of this act relating to disciplinary
31proceedings.

32

7652.8.  

Application for a certificate of authority shall be made
33in writing on the form prescribed by the bureau and filed at the
34principal office of the bureau. The application shall be accompanied
35by the fee provided for in this act and shall show that the cemetery
36authority owns or is actively operating a cemetery in this state
37which is subject to the provisions of the act or that the applicant
38is in a position to commence operating a cemetery.

39

7652.9.  

Each cemetery for which a certificate of authority is
40required shall be operated under the supervision of a manager who
P33   1is qualified in accordance with the regulations adopted by the
2bureau. Each cemetery manager shall be required to successfully
3pass a written examination evidencing an understanding of the
4applicable provisions of this code and of the Health and Safety
5Code. A person shall not engage in the business of, act in the
6capacity of, or advertise or assume to act as, a cemetery manager
7without first obtaining a license from the bureau.

8

7652.10.  

The bureau may require such proof as it deems
9advisable concerning the compliance by such applicant to all the
10laws, rules, regulations, ordinances and orders applicable.

begin insert
11

begin insert7653.end insert  

(a) The bureau shall adopt, and may from time to time
12amend, rules and regulations prescribing standards of knowledge
13and experience and financial responsibility for applicants for
14certificates of authority. In reviewing an application for a
15certificate of authority, the bureau may consider acts of
16incorporators, officers, directors, and stockholders of the applicant,
17which shall constitute grounds for the denial of a certificate of
18authority under Division 1.5 (commencing with Section 475).

19(b) Upon receipt of an application for a certificate of authority,
20the bureau may cause an investigation to be made of the physical
21status, plans, specifications, and financing of the proposed
22cemetery, and any other qualifications required of the applicant
23under this act, and for this purpose may subpoena witnesses,
24administer oaths, and take testimony.

25(c) At the time of the filing of the application required by this
26section, the applicant shall pay to the Cemetery Fund the sum fixed
27by the bureau at not in excess of four hundred dollars ($400) to
28defray the expenses of investigation. In the event the sum shall be
29insufficient to defray all of the expenses, the applicant shall within
30five days after request therefor deposit an additional sum sufficient
31to defray such expenses, provided that the total sum shall not
32exceed nine hundred dollars ($900).

33(d) This section shall remain in effect only until July 1, 2016,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before July 1, 2016, deletes or extends that date.

end insert
36

7653.  

(a) The bureau shall adopt, and may from time to time
37amend, rules and regulations prescribing standards of knowledge
38and experience and financial responsibility for applicants for
39certificates of authority. In reviewing an application for a certificate
40of authority, the bureau may consider acts of incorporators, officers,
P34   1directors, and stockholders of the applicant, which shall constitute
2grounds for the denial of a certificate of authority under Division
31.5 (commencing with Section 475).

4(b) Upon receipt of an application for a certificate of authority,
5the bureau may cause an investigation to be made of the physical
6status, plans,begin delete specificationsend deletebegin insert specifications,end insert and financing of the
7proposed cemetery, and any other qualifications required of the
8applicant under this act, and for this purpose may subpoena
9witnesses, administer oaths, and take testimony.

10(c) At the time of the filing of the application required by this
11section, the applicant shall pay to the Cemetery and Funeral Fund
12the sum fixed by the bureau at not in excess of four hundred dollars
13($400) to defray the expenses of investigation. In the event the
14sum shall be insufficient to defray all of the expenses, the applicant
15shall, within five days after request, deposit an additional sum
16sufficient to defray those expenses, provided that the total sum
17shall not exceedbegin delete the sum ofend delete nine hundred dollars ($900).

begin insert

18(d) This section shall become operative on July 1, 2016.

end insert
19

7653.1.  

(a) The bureau may, in accordance with its rules and
20regulations, authorize interments in cemeteries for which there is
21no currently valid certificate of authority outstanding if the bureau
22finds that rights to interment therein will otherwise be impaired.
23However, nothing in this section authorizes sales of lots, vaults,
24or niches by cemeteries for which there is no currently valid
25certificate of authority. Interments permitted under this section
26shall be conducted by persons authorized by the bureau in
27accordance with its regulations, and Section 7731.2 shall not be
28applicable to such interments.

29(b) The bureau or its representative shall be entitled to inspect
30and copy any cemetery records necessary to the performance of
31interments under this section, and any person having custody of
32those records shall permit inspection and copying thereof for that
33purpose. The bureau may apply to the superior court for the county
34in which the cemetery is located for an order temporarily
35transferring custody of cemetery records to it for purposes of this
36section.

37

7653.2.  

The bureau shall inspect the books, records, and
38premises of any crematory licensed under this chapter. In making
39those inspections, the bureau shall have access to all books and
40records, the crematory building, the cremation chambers or
P35   1furnaces, and the storage areas for human remains before and after
2cremation, during regular office hours or the hours the crematory
3is in operation. No prior notification of the inspection is required
4to be given to the crematory licensee. If any crematory licensee
5fails to allow that inspection or any part thereof, it shall be grounds
6for the suspension or revocation of a license or other disciplinary
7action against the licensee. All proceedings under this section shall
8be conducted in accordance with the provisions of this chapter
9relating to disciplinary proceedings.

10

7653.3.  

The bureau shall annually conduct a minimum of one
11unannounced inspection of each licensed crematory.

12

7653.4.  

The bureau shall inspect the books, records, and
13premises of any cemetery where a certificate of authority is
14required under this chapter. In making the inspections, the bureau
15shall have access to all books and records, buildings, mausoleums,
16columbariums, storage areas, including storage areas for human
17remains, during regular office hours or the hours the cemetery is
18in operation. No prior notification of the inspection is required to
19be given to the holder of the certificate of authority. If any
20certificate holder fails to allow the inspection or any part thereof,
21disciplinarybegin delete actionend deletebegin insert action,end insert including, but not limited to, revocation
22or suspension may be taken against the certificate of authority. All
23disciplinary proceedings shall be conducted in accordance with
24this chapter.

25

7653.5.  

The bureau shall annually conduct a minimum of one
26unannounced inspection of each cemetery for which a certificate
27of authority is required.

28

7653.6.  

A cemetery licensed under this chapter shall at all times
29employ a licensed cemetery manager to manage, supervise, and
30direct its operations. Notwithstanding any other provision of this
31chapter, licensed cemeteries within close geographical proximity
32of each other may request the bureau to allow a licensed cemetery
33manager to manage, supervise, and direct the business or profession
34of more than one facility.

35(a) Every cemetery shall designate a licensed cemetery manager
36to manage the cemetery, and shall report the designation to the
37bureau within 10 days of the effective date. Any change in the
38designated manager shall be reported to the bureau within 10 days.

39(b) The designated cemetery manager shall be responsible for
40exercising direct supervision and control over the operations,
P36   1employees, and agents of the cemetery as is necessary to ensure
2full compliance with the applicable provisions of this code, the
3Health and Safety Code, and any regulations adopted thereto.
4Failure of the designated cemetery manager or the licensed
5cemetery to exercise that supervision or control shall constitute a
6ground for disciplinary action.

7(c) A cemetery may employ, in addition to the designated
8cemetery manager, additional licensed cemetery managers.
9However, only one licensed cemetery manager may be appointed
10as the designated cemetery manager of the cemetery.

11

7653.7.  

(a) Application for a cemetery manager license shall
12be made in writing on the form provided by the bureau, verified
13by the applicant, and filed at the principal office of the bureau.
14The application shall be accompanied by the fee fixed by this
15chapter.

16(b) The applicant for a cemetery manager license shall be at
17least 18 years of age, possess a high school diploma or its
18equivalent, shall not have committed acts or crimes constituting
19grounds for denial of licensure under Section 480, shall
20demonstrate compliance with the training and experience
21requirements established by the bureau, and shall be a resident of
22this state.

23(c) The bureau shall grant a cemetery manager license to any
24applicant who meets the requirements of this chapter and who has
25successfully passed the cemetery manager examination
26administered by the bureau.

27

7653.8.  

(a) A person shall not engage in or conduct, or hold
28himself or herself out as engaging in or conducting, the activities
29of a cemetery manager without holding a valid, unexpired cemetery
30manager license issued by the bureau.

31(b) A licensed cemetery manager shall not engage in or conduct,
32or hold himself or herself out as engaging in or conducting, the
33activities of a cemetery manager without being employed by, or
34without being a corporate officer of a licensed cemetery.

35

7653.9.  

(a) Notwithstanding any other law, based upon a
36finding by a court of competent jurisdiction that a cemetery
37manager of a private cemetery has ceased to perform his or her
38duties, as described in subdivision (a) of Section 7611.4, due to a
39lapse, suspension, surrender, abandonment, or revocation of his
40or her license, the court may appoint a temporary manager to
P37   1manage the cemetery property and to service the prepaid interments
2of the private cemetery. The court shall appoint a licensed cemetery
3manager as the temporary manager.

4(b) The appointed temporary manager shall have the same
5powers over the care and maintenance of the private cemetery as
6a licensed cemetery manager, as described in subdivision (a) of
7Section 7611.4. The temporary manager shall serve for a limited
8term not to exceed six months, or until a new licensed manager
9has been hired, at which time the court shall terminate the
10appointment of the temporary manager.

11(c) The court may authorize the payment of reasonable
12compensation for the temporary manager’s services, which shall
13be paid by the trustees from available income from the cemetery.
14In exercising its discretion pursuant to this subdivision, the court
15shall give due consideration to the ability of the cemetery income
16to otherwise pay for care and maintenance of the cemetery.

17

begin deleteSEC. 18.end delete
18begin insertSEC. 20.end insert  

Article 4.5 (commencing with Section 7672) is added
19to Chapter 12 of Division 3 of the Business and Professions Code,
20to read:

21 

22Article 4.5.  Cremated Remains Disposer
23

 

24

7672.  

A person shall not dispose of or offer to dispose of any
25cremated human remains unless registered as a cremated remains
26disposer by the bureau. This article shall not apply to any person,
27partnership, or corporation holding a certificate of authority as a
28cemetery, crematory license, cemetery broker’s license, cemetery
29salesperson’s license, or funeral director’s license, nor shall this
30article apply to any person having the right to control the
31disposition of the cremated remains of any person or that person’s
32designee if the person does not dispose of or offer to dispose of
33more than 10 cremated human remains within any calendar year.

34

7672.1.  

(a) Registration shall be on the form prescribed by the
35bureau and shall include, but not be limited to, the full name of
36the registrant, business and residence addresses, description and
37identification of aircraft or boats which may be used in dispensing
38cremated human remains, and the area to be served. Each
39registration application shall be accompanied by the cremated
40remains disposer fee.

P38   1(b) Every registered cremated remains disposer who dispenses
2human remains by air shall post a copy of his or her current pilot’s
3license, and the address of the cremated remains storage area at
4his or her place of business. Every registered cremated remains
5disposer who dispenses human remains by boat shall post a copy
6of his or her current boating license and the address of the cremated
7remains storage area at his or her place of business.

8

7672.2.  

The bureau shall prepare and deliver to each registered
9cremated remains disposer a booklet that includes, but is not limited
10to, the following information: details about the registration and
11renewal requirements for cremated remains disposers; requirements
12for obtaining state permits to dispose of cremated human remains;
13state storage requirements, if any; statutory duties pursuant to this
14article, and other applicable state laws.

15

7672.3.  

All aircraft used for the scattering of cremated human
16remains shall be validly certified by the Federal Aviation
17Administration. All boats or vessels used for the scattering of
18cremated human remains shall be registered with the Department
19of Motor Vehicles or documented by a federal agency, as
20appropriate. The certification or registration shall be available for
21inspection by the bureau.

22

7672.4.  

A cremated remains disposer who scatters any cremated
23human remains without specific written instructions from the
24person having the right to control the disposition of the remains
25or who scatters any remains in a manner not in accordance with
26those instructions shall be subject to disciplinary action.

27

7672.5.  

Each cremated remains disposer shall provide the
28person with the right to control the disposition of the remains under
29Section 7100 of the Health and Safety Code with a copy of the
30completed permit for disposition of human remains pursuant to
31Chapter 8 (commencing with Section 103050) of Part 1 of Division
32102 of the Health and Safety Code within 30 days of the date of
33the scattering.

34

7672.6.  

(a) Every cremated remains disposer shall do both of
35the following:

36(1) Dispose of cremated remains within 60 days of the receipt
37of those remains, unless a written signed reason for a delay is
38presented to the person with the right to control the disposition of
39the remains under Section 7100 of the Health and Safety Code.

P39   1(2) Provide the bureau with the address and telephone number
2of any storage facility being used by the registrant to store cremated
3remains. Cremated remains shall be stored in a place free from
4exposure to the elements, and shall be responsibly maintained until
5disposal. The bureau and its representatives shall conduct, on an
6annual basis, random inspections of the operations of 5 to 10
7percent of the registered cremated remains disposers, and is
8authorized to inspect any place used by a cremated remains
9disposer for the storage of cremated remains without notice to the
10cremated remains disposer.

11(b) A violation of the requirements of this section is grounds
12for disciplinary action.

13

7672.7.  

(a) Each cremated remains disposer shall file, and
14thereafter maintain an updated copy of, an annual report on a form
15prescribed by the bureau. The report shall include, but not be
16limited to, the names of the deceased persons whose cremated
17remains were disposed of, the dates of receipt of the cremated
18remains, the names and addresses of the persons who authorized
19disposal of those remains, the dates and locations of disposal of
20those remains, and the means and manner of disposition. The report
21shall cover the fiscal year ending on June 30 and shall be filed
22with the bureau no later than September 30 of each year.

23(b) Any cremated remains disposer that makes a willful and
24 material false statement regarding the disposal of cremated remains
25in the annual report filed or updated pursuant to subdivision (a)
26shall be subject to disciplinary action.

27(c) Any cremated remains disposer that makes a willful and
28material false statement in the annual report filed or updated
29pursuant to subdivision (a) shall be guilty of a misdemeanor.

30

7672.8.  

All cremated remains disposer registrations shall expire
31atbegin delete 12end delete midnight on September 30 of each year. A person desiring
32to renew his or her registration shall file an application for renewal
33on a form prescribed by the bureau accompanied by the required
34fee. A registration that has expired may be renewed within five
35years of its expiration upon payment of all accrued and unpaid
36renewal fees. The bureau shall not renew the registration of any
37person who has not filed the required annual report until he or she
38has filed a complete annual report with the department.

39

7672.9.  

If a person fails to apply for renewal of his or her
40cremated remains disposer registration prior to midnight of
P40   1September 30 of the year for which the registration was issued, no
2renewal shall be issued except upon payment of the delinquent
3renewal fee required under Section 7729.2.

4

7672.10.  

Any person who scatters cremated human remains
5without a valid registration and who is not otherwise exempt from
6this article shall be guilty of a misdemeanor. The remains of each
7person scattered shall constitute a separate violation.

8

7673.  

Any person who scatters any cremated human remains
9without specific written instructions from the person having the
10right to control the disposition of the remains or who scatters any
11remains in a manner not in accordance with those instructions shall
12be guilty of a misdemeanor.

13

7673.1.  

Any cremated remains disposer who stores cremated
14remains in a reckless manner that results in either of the following
15is guilty of a public offense punishable by imprisonment in a
16county jail not exceeding one year or by a fine not to exceed five
17thousand dollars ($5,000), or by both that fine and imprisonment:

18(a) Loss of all or part of the cremated remains.

19(b) Inability to individually identify the cremated remains.

20

7673.2.  

A cremated remains disposer shall be subject to and
21shall be disciplined by the bureau in accordance with Article 6
22(commencing with Section 7686). Any violation of this article
23shall also be grounds for disciplinary action.

24

begin deleteSEC. 19.end delete
25begin insertSEC. 21.end insert  

Section 7685.3 of the Business and Professions Code
26 is amended to read:

27

7685.3.  

The current address, telephone number, and name of
28the Department of Consumer Affairs, Cemetery and Funeral Bureau
29shall appear on the first page of any contract for goods and services
30offered by a licensee. At a minimum, the information shall be in
318-point boldface type and make this statement:
32


33“FOR MORE INFORMATION ON FUNERAL, CEMETERY,
34AND CREMATION MATTERS, CONTACT: DEPARTMENT
35OF CONSUMER AFFAIRS, CEMETERY AND FUNERAL
36BUREAU (ADDRESS), (TELEPHONE NUMBER).”
37


38

begin deleteSEC. 20.end delete
39begin insertSEC. 22.end insert  

Section 7685.5 of the Business and Professions Code
40 is amended to read:

P41   1

7685.5.  

(a) The bureau shall make available to funeral
2establishments and cemetery authorities a copy of a consumer
3guide for funeral and cemetery purchases for purposes of
4reproduction and distribution. The funeral and cemetery guide that
5is approved by the bureau, in consultation with the funeral and
6cemetery industries and any other interested parties, shall be made
7available in printed form and electronically through the Internet.

8(b) A licensee shall prominently display and make available to
9any individual who, in person, inquires about funeral or cemetery
10purchases, a copy of the consumer guide for funeral and cemetery
11purchases, reproduced as specified in subdivision (a).

12(c) Prior to the drafting of a contract for services, the licensee
13shall provide, for retention, the consumer with a copy of the
14consumer guide for funeral and cemetery purchases described in
15subdivisions (a) and (b).

16

begin deleteSEC. 21.end delete
17begin insertSEC. 23.end insert  

Section begin delete7700.1end deletebegin insert7711.1end insert is added to the Business and
18Professions Code
, to read:

19

begin delete7700.1.end delete
20begin insert7711.1.end insert  

Unprofessional conduct by any licensee or registrant
21or by any agent or employee of a licensee or registrant constitutes
22grounds for disciplinary action. Unprofessional conduct includes,
23but is not limited to, the following:

24(a) Violating or attempting to violate, directly or indirectly, or
25assisting in or abetting the violation of this chapter and any
26regulation adopted thereunder, or of any federal or state law or
27regulation governing the disposition of human remains, operation
28of cemeteries or crematories, the sale of cemetery property, or the
29sale of crematory services or commodities.

30(b) Negligence in performing any act related to the operation
31of a cemetery or crematory.

32

begin deleteSEC. 22.end delete
33begin insertSEC. 24.end insert  

Section 7711.2 is added to the Business and
34Professions Code
, to read:

35

7711.2.  

The bureau may, upon its own motion, and shall, upon
36the verified complaint in writing of any person, investigate the
37actions of any person engaged in the business or acting in the
38capacity of a cemetery licensee, and may temporarily suspend or
39permanently revoke a license at any time where the licensee, within
40the immediately preceding three years, while a cemetery licensee
P42   1in performing or attempting to perform any of the acts specified
2in this act, has been guilty of any of the following:

3(a) Making any substantial misrepresentation.

4(b) Making any false statement of a character likely to influence
5or persuade.

6(c) A continued and flagrant course of misrepresentation or
7making of false promises through cemetery agents or salespersons.

8(d) Acting for more than one party in a transaction without the
9knowledge or consent of all parties thereto.

10(e) Commingling the money or other property of his or her
11principal with his or her own.

12(f) The practice of claiming or demanding a fee,begin delete compensationend delete
13begin insert compensation,end insert or commission under any exclusive agreement
14authorizing or employing a licensee to sell, buy, or exchange
15cemetery property for compensation or commission where such
16agreement does not contain a definite, specified date of final and
17complete termination.

18(g) The claiming or taking by a licensee of any secret or
19undisclosed amount of compensation, commission, or profit or the
20failure of a licensee to reveal to the employer of such licensee the
21full amount of such licensee’s compensation, commission, or profit
22under any agreement authorizing or employing such licensee to
23sell, buy, or exchange cemetery property for compensation or
24commission prior to or coincident with the signing of such
25agreement evidencing the meeting of the minds of the contracting
26parties, regardless of the form of such agreement, whether
27evidenced by documents in an escrow or by any other or different
28procedure.

29(h) The use by a licensee of any provision allowing the licensee
30an option to purchase in an agreement authorizing or employing
31such licensee to sell, buy, or exchange cemetery property for
32compensation or commission, except when such licensee prior to
33or coincident with election to exercise such option to purchase
34reveals in writing to the employer the full amount ofbegin insert theend insert licensee’s
35profit and obtains the written consent of the employer approving
36the amount of such profit.

37(i) Any other conduct, whether of the same or a different
38character than specified in this section, which constitutes fraud or
39dishonest dealing.

P43   1(j) The misrepresentations and false statements mentioned in
2this section begin delete include alsoend delete begin insert also includeend insert misrepresentation and false
3statements as to other property than that which the cemetery
4licensee may be selling or attempting to sell.

5

begin deleteSEC. 23.end delete
6begin insertSEC. 25.end insert  

Section 7711.3 is added to the Business and
7Professions Code
, to read:

8

7711.3.  

The bureau may suspend or revoke the license of any
9cemetery licensee who, within the immediately preceding three
10years, has done any of the following:

11(a) Been convicted of a crime substantially related to the
12qualifications, functions, and duties of such licensee. The record
13of conviction, or a certified copy thereof, shall be conclusive
14evidence of such conviction.

15(b) Knowingly authorized, directed, connivedbegin delete atend deletebegin insert at,end insert or aided in
16the publication, advertisement, distribution, or circulation of any
17material false statement or representation concerning his or her
18business or any cemetery property offered for sale.

19(c) Willfully disregarded or violated any of the provisions of
20this act relating to cemetery brokerage.

21(d) Acted or conducted himself or herself in a manner which
22would have warranted the denial of his or her application for a
23cemetery license, or for a renewal thereof.

24

begin deleteSEC. 24.end delete
25begin insertSEC. 26.end insert  

Section 7711.4 is added to the Business and
26Professions Code
, to read:

27

7711.4.  

When any salesperson is discharged by his or her
28employer for a violation of any of the provisions of this article
29prescribing a ground for disciplinary action, a verified written
30statement of the facts with reference thereto shall be filed forthwith
31with the bureau by the employer and, if the employer fails to notify
32the bureau as required by this section, the bureau may temporarily
33suspend or permanently revoke the cemetery license of the
34employer in accordance with the provisions of this act.

35

begin deleteSEC. 25.end delete
36begin insertSEC. 27.end insert  

Section 7711.5 is added to the Business and
37Professions Code
, to read:

38

7711.5.  

The bureau may deny, suspend, or revoke the cemetery
39license of a corporation as to any officer or agent acting under its
40cemetery license, and the cemetery license of a copartnership as
P44   1to any member acting under its cemetery license, without revoking
2the cemetery license of the corporation or of the copartnership.

3

begin deleteSEC. 26.end delete
4begin insertSEC. 28.end insert  

Section 7711.6 is added to the Business and
5Professions Code
, to read:

6

7711.6.  

The fees for cemetery licenses at all periods of the
7fiscal year is the same as provided in this article. All cemetery
8license fees are payable in advance of issuing the licenses and at
9the time of filing the application. All licenses shall be issued for
10the fiscal year and shall expire on June 30 of each fiscal year at
11midnight.

12

begin deleteSEC. 27.end delete
13begin insertSEC. 29.end insert  

Section 7711.7 is added to the Business and
14Professions Code
, to read:

15

7711.7.  

(a) If a person fails to apply for a license renewal, no
16renewal license shall be issued except upon payment of the
17delinquent renewal fee required under Section 7729.2.

18(b) A person who fails to renew his or her license within one
19year of the expiration date shall not engage in any of the activities
20authorized by a license unless he or she first files the application
21required for an original license, pays the original license fee, and
22otherwise complies with all of the provisions of this act pertaining
23to the issuance of an original license.

24

begin deleteSEC. 28.end delete
25begin insertSEC. 30.end insert  

Section 7711.8 is added to the Business and
26Professions Code
, to read:

27

7711.8.  

The definitions contained in this article are solely for
28the purposes of this article.

29

begin deleteSEC. 29.end delete
30begin insertSEC. 31.end insert  

Section 7711.9 is added to the Business and
31Professions Code
, to read:

32

7711.9.  

An original cemetery broker’s license is a cemetery
33license issued to a person who did not have a cemetery broker’s
34license on June 30 of the fiscal year previous to the fiscal year for
35which the license is issued.

36

begin deleteSEC. 30.end delete
37begin insertSEC. 32.end insert  

Section 7711.10 is added to the Business and
38Professions Code
, to read:

39

7711.10.  

A renewal cemetery broker’s license is a cemetery
40license issued to a person who had a cemetery broker’s license
P45   1unrevoked and unsuspended on June 30 of the fiscal year previous
2to the fiscal year for which the renewal cemetery license is issued.

3

begin deleteSEC. 31.end delete
4begin insertSEC. 33.end insert  

Section 7711.11 is added to the Business and
5Professions Code
, to read:

6

7711.11.  

An original cemetery salesperson’s license is a
7cemetery license issued to a person who did not have a cemetery
8salesperson’s or a broker’s license either individually or as an
9officer of a corporation, or as a member of a copartnership, on
10June 30 of the fiscal year previous to the fiscal year for which the
11salesperson’s license is issued.

12

begin deleteSEC. 32.end delete
13begin insertSEC. 34.end insert  

Section 7711.12 is added to the Business and
14Professions Code
, to read:

15

7711.12.  

A renewal cemetery salesperson’s license is a
16cemetery license issued to a person who had a cemetery
17salesperson’s or a broker’s license either individually or as an
18officer of a corporation, or as a member of a copartnership, on
19June 30 of the fiscal year previous to the fiscal year for which the
20salesperson’s license is issued.

21

begin deleteSEC. 33.end delete
22begin insertSEC. 35.end insert  

Article 6.5 (commencing with Section 7712) is added
23to Chapter 12 of Division 3 of the Business and Professions Code,
24to read:

25 

26Article 6.5.  Crematories
27

 

28

7712.  

A crematory established, operated, or maintained, may
29be operated by a corporation, partnership, or natural person,
30provided that a valid crematory license shall have been issued by
31the bureau.

32

7712.1.  

Any change in the ownership of a crematory shall be
33reported to the bureau. Any transfer in a single transaction or a
34related series of transactions of more than 50 percent of the
35equitable interest in a licensed crematory shall constitute a change
36of ownership. When a change of ownership in a crematory occurs,
37the existing crematory license shall lapse and the new owner shall
38obtain a new license from the bureau as otherwise provided in this
39act. The bureau shall not require an applicant under this section to
P46   1obtain any new permit or license from any other governmental
2agency when the existing permit or license is valid.

3

7712.2.  

Application for a crematory license shall be made in
4writing on the form prescribed by the bureau and filed at the
5principal office of the bureau. The application shall be accompanied
6by the fee provided for in this article and shall show that the
7applicant owns or is actively operating a crematory in this state or
8that the applicant is in a position to commence operating such a
9crematory.

10

7712.3.  

The provisions of Article 5 (commencing with Section
118341) of Chapter 2 of Part 3 of Division 8 of the Health and Safety
12Code shall apply to crematories licensed under this chapter.

13

7712.4.  

The bureau may require such proof as it deems
14advisable concerning the compliance by such applicant with all
15the laws, rules, regulations, ordinances, and orders applicable to
16the applicant and shall not issue such crematory license until it has
17satisfied itself that the public interest will be served by such
18applicant.

begin insert
19

begin insert7712.5.end insert  

(a) The bureau shall adopt, and may from time to time
20amend, rules and regulations prescribing standards of knowledge
21and experience and financial responsibility for applicants for a
22crematory license. In reviewing an application for a crematory
23license, the bureau may consider acts of the applicant, including
24acts of incorporators, officers, directors, and stockholders of the
25applicant, which shall constitute grounds for the denial of a
26crematory license under Division 1.5 (commencing with Section
27475).

28(b) Upon receipt of an application for a crematory license, the
29bureau may cause an investigation to be made of the physical
30status, plans, specifications, and financing of the proposed
31crematory, the character of the applicant, including, if applicable,
32its officers, directors, shareholders, or members, and any other
33qualifications required of the applicant under this article, and for
34this purpose may subpoena witnesses, administer oaths, and take
35testimony.

36(c) At the time of the filing of the application required by this
37article, the applicant shall pay to the Cemetery Fund the sum fixed
38by the bureau at not in excess of four hundred dollars ($400) to
39defray the expenses of investigation. In the event the sum shall be
40insufficient to defray all of the expenses, the applicant shall within
P47   1five days after request therefor deposit an additional sum sufficient
2to defray such expenses, provided that the total sum shall not
3exceed nine hundred dollars ($900).

4(d) This section shall remain in effect only until July 1, 2016,
5and as of that date is repealed, unless a later enacted statute, that
6 is enacted before July 1, 2016, deletes or extends that date.

end insert
7

7712.5.  

(a) The bureau shall adopt, and may from time to time
8amend, rules and regulations prescribing standards of knowledge
9and experience and financial responsibility for applicants for a
10crematory license. In reviewing an application for a crematory
11license, the bureau may consider acts of the applicant, including
12acts of incorporators, officers, directors, and stockholders of the
13applicant, which shall constitute grounds for the denial of a
14crematory license under Division 1.5 (commencing with Section
15475).

16(b) Upon receipt of an application for a crematory license, the
17bureau may cause an investigation to be made of the physical
18status, plans, specifications, and financing of the proposed
19crematory, the character of the applicant, including, if applicable,
20its officers, directors, shareholders, or members, and any other
21qualifications required of the applicant under this article, and for
22this purpose may subpoena witnesses, administer oaths, and take
23testimony.

24(c)  At the time of the filing of the application required by this
25article, the applicant shall pay to the Cemetery and Funeral Fund
26the sum fixed by the bureau at not in excess of four hundred dollars
27($400) to defray the expenses of investigation. In the event the
28sum shall be insufficient to defray all of the expenses, the applicant
29shall, within five days after request therefor, deposit an additional
30sum sufficient to defray such expenses, provided that the total sum
31shall not exceedbegin delete the sum ofend delete nine hundred dollars ($900).

begin insert

32(d) This section shall become operative on July 1, 2016.

end insert
33

7712.6.  

A crematory licensee under this article shall not
34conduct any cremations:

35(a) Unless the licensee has a written contract with the person
36or persons entitled to custody of the remains clearly stating the
37location, manner, and time of disposition to be made of the remains,
38agreeing to pay the regular fees of the licensee for cremation,
39disposition, and other services rendered, and any other contractual
40provisions as may be required by the bureau.

P48   1(b) Of any remains more than 24 hours after delivery of the
2remains, unless the remains have been preserved in the interim by
3refrigeration or embalming.

4(c) Unless the licensee has a contractual relationship with a
5licensed cemetery authority for final disposition of cremated human
6remains by burial, entombment, or inurnment of any and all
7remains which are not lawfully disposed of or which are not called
8for or accepted by the person or persons entitled to the custody
9and control of the disposition thereof within 90 days of the date
10of death.

11

7712.7.  

Every crematory licensee, who prohibits relatives or
12the responsible party from viewing the cremation process, shall
13disclose this fact in writing to the person or persons entitled to
14custody of the remains prior to the signing of any contract.

15

7712.8.  

Each crematory licensee shall keep such records as
16may be required by the bureau tobegin delete assureend deletebegin insert ensureend insert compliance with
17all laws relating to the disposition of cremated human remains and
18shall file annually with the bureau, a report in the form prescribed
19by the bureau, describing the operations of the licensee, including
20the number of cremations made, the disposition thereof, and any
21other information as the bureau may, from time to time, require.

begin insert
22

begin insert7712.9.end insert  

(a) Every crematory licensee operating a crematory
23pursuant to a license issued in compliance with this article shall
24pay an annual regulatory charge for each crematory, to be fixed
25by the bureau at not more than four hundred dollars ($400). In
26addition to an annual regulatory charge for each crematory, every
27licensee operating a crematory pursuant to a license issued
28pursuant to this article shall pay an additional charge to be fixed
29by the bureau at not more than eight dollars and fifty cents ($8.50)
30per cremation made during the preceding quarter, which charges
31shall be deposited in the Cemetery Fund.

32(b) This section shall remain in effect only until July 1, 2016,
33and as of that date is repealed, unless a later enacted statute, that
34is enacted before July 1, 2016, deletes or extends that date.

end insert
35

7712.9.  

begin insert(a)end insertbegin insertend insert Every crematory licensee operating a crematory
36pursuant to a license issued in compliance with this article shall
37pay an annual regulatory charge for each crematory, to be fixed
38by the bureau at not more than four hundred dollars ($400). In
39addition to an annual regulatory charge for each crematory, every
40licensee operating a crematory pursuant to a license issued pursuant
P49   1to this article shall pay an additional charge to be fixed by the
2bureau at not more than eight dollars and fifty cents ($8.50) per
3cremation made during the preceding quarter, which charges shall
4be deposited in the Cemetery and Funeral Fund.

begin insert

5(b) This section shall become operative on July 1, 2016.

end insert
6

7712.10.  

(a) Each crematory for which a crematory license is
7required shall be operated under the supervision of a manager
8qualified in accordance with rules adopted by the bureau. Each
9manager shall be required to successfully pass a written
10examination evidencing an understanding of the applicable
11provisions of this code and of the Health and Safety Code.

12(b) A person shall not engage in the business of, act in the
13capacity of, or advertise or assume to act as, a crematory manager
14without first obtaining a license from the bureau.

15

7713.  

A crematory shall at all times employ a licensed
16crematory manager to manage, supervise, and direct its operations.

17(a) Every crematory shall designate a licensed crematory
18manager to manage the crematory, and shall report the designation
19to the bureau within 10 days of the effective date. Any change in
20the designated manager shall be reported to the bureau within 10
21days.

22(b) The designated crematory manager shall be responsible for
23exercising direct supervision and control over the operations,
24employees, and agents of the crematory as is necessary to ensure
25full compliance with the applicable provisions of this code, the
26Health and Safety Code, and any regulations adopted thereto.
27Failure of the designated crematory manager or the licensed
28crematory to exercise that supervision or control shall constitute
29 a ground for disciplinary action.

30(c) A crematory may employ, in addition to the designated
31crematory manager, additional licensed crematory managers.
32However, only one licensed crematory manager may be appointed
33as the designated crematory manager of the crematory.

34

7713.1.  

(a) Application for a crematory manager license shall
35be made in writing on the form provided by the bureau, verified
36by the applicant and filed at the principal office of the bureau. The
37application shall be accompanied by the fee fixed by this chapter.

38(b) The applicant for a crematory manager license shall be at
39least 18 years of age, possess a high school diploma or its
40equivalent, shall not have committed acts or crimes constituting
P50   1grounds for denial of licensure under Section 480, shall
2demonstrate compliance with the training and experience
3requirements established by the bureau, and shall be a resident of
4 this state.

5(c) The bureau shall grant a crematory manager license to any
6applicant who meets the requirements of this chapter and who has
7successfully passed the crematory manager examination
8administered by the bureau.

9

7713.2.  

(a) A person shall not engage in or conduct, or hold
10himself or herself out as engaging in or conducting, the activities
11of a crematory manager without holding a valid, unexpired
12crematory manager license issued by the bureau.

13(b) A licensed crematory manager shall not engage in or
14conduct, or hold himself or herself out as engaging in or
15conducting, the activities of a crematory manager without being
16employed by, or without being a sole proprietor, partner, or
17corporate officer of, a licensed crematory.

18

7713.3.  

It is a misdemeanor for any person, firm, or corporation
19to cremate human remains or to engage in the disposition thereof
20without a valid, unexpired crematory license. Each cremation shall
21be a separate violation.

22

7713.4.  

A crematory licensee shall be subject to and shall be
23disciplined by the bureau in accordance with Article 6
24(commencing with Section 7686).

25

begin deleteSEC. 34.end delete
26begin insertSEC. 36.end insert  

Section 7725.2 of the Business and Professions Code
27 is amended to read:

28

7725.2.  

Except as otherwise provided in this chapter, a license
29that has expired may be renewed at any time within five years after
30its expiration on filing of an application for renewal on a form
31prescribed by the bureau and payment of all accrued and unpaid
32renewal fees. If the license is not renewed within 30 days after its
33expiration the licensee, as a condition precedent to renewal, shall
34also pay the delinquency fee prescribed by this chapter. Renewal
35under this section shall be effective on the date on which the
36application is filed, on the date on which all renewal fees are paid,
37or on the date on which the delinquency fee, if any, is paid,
38whichever last occurs. If so renewed, the license shall continue in
39effect through the date provided in Section 7725 that next occurs
P51   1after the effective date of the renewal, when it shall expire if it is
2not again renewed.

3If a license is not renewed within one year following its
4expiration, the bureau may require as a condition of renewal that
5the holder of the license pass an examination on the appropriate
6subjects provided by this chapter.

begin delete7

SEC. 35.  

Section 7727 of the Business and Professions Code
8 is amended to read:

9

7727.  

On or before the 10th day of each month, the department
10shall pay into the State Treasury and report to the State Controller
11all the fees received for the bureau. The fees shall be received by
12the State Treasurer and placed in the Cemetery and Funeral Fund,
13which fund is available for expenditures necessary for the proper
14administration of this chapter.

end delete
15begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 7727 of the end insertbegin insertBusiness and Professions Codeend insert
16begin insert is amended to read:end insert

17

7727.  

begin insert(a)end insertbegin insertend insert On or before the 10th day of each month, the
18department shall pay into the State Treasury and report to the State
19Controller all the fees received for the bureaubegin insert relating to funeral
20directors and embalmersend insert
. The fees shall be received by the State
21Treasurer and placed in the State Funeral Directors and Embalmers
22Fund, which fund is available for expenditures necessary for the
23proper administration ofbegin insert those provisions ofend insert this chapterbegin insert governing
24funeral directors and embalmersend insert
.

begin insert

25(b) This section shall remain in effect only until July 1, 2016,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before July 1, 2016, deletes or extends that date.

end insert
28begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 7727 is added to the end insertbegin insertBusiness and Professions
29Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert7727.end insert  

(a) On or before the 10th day of each month, the
31department shall pay into the State Treasury and report to the
32State Controller all the fees received for the bureau. The fees shall
33be received by the State Treasurer and placed in the Cemetery and
34Funeral Fund, which fund is available for expenditures necessary
35for the proper administration of this chapter.

36(b) This section shall become operative on July 1, 2016.

end insert
37

begin deleteSEC. 36.end delete
38begin insertSEC. 39.end insert  

Section 7729.1 is added to the Business and
39Professions Code
, to read:

P52   1

7729.1.  

The amount of fees prescribed for a license or
2certificate of authority under this act is that fixed by the following
3provisions of this article. Any license or certificate of authority
4provided under this act that has expired may be renewed within
5five years of its expiration upon payment of all accrued and unpaid
6renewal and regulatory fees.

7

begin deleteSEC. 37.end delete
8begin insertSEC. 40.end insert  

Section 7729.2 is added to the Business and
9Professions Code
, to read:

10

7729.2.  

The delinquent renewal fee for a license, registration,
11or certificate of authority under this chapter shall be 150 percent
12of the timely fee, but not less than the renewal fee plus twenty-five
13dollars ($25).

14

begin deleteSEC. 38.end delete
15begin insertSEC. 41.end insert  

Section 7729.3 is added to the Business and
16Professions Code
, to read:

17

7729.3.  

The original cemetery broker’s license fee shall be
18fixed by the bureau at not more than four hundred dollars ($400).

19

begin deleteSEC. 39.end delete
20begin insertSEC. 42.end insert  

Section 7729.4 is added to the Business and
21Professions Code
, to read:

22

7729.4.  

(a) The original cemetery broker’s license fee is
23payable at the time of the filing of an application for an original
24cemetery broker’s license.

25(b) If the applicant fails the required written examination, he or
26she may be permitted to take another examination upon the filing
27of an application for reexamination and the payment of a
28reexamination fee. This reexamination fee shall be fixed by the
29bureau at not more than one hundred dollars ($100).

30(c) No part of any original cemetery broker’s license fee or
31reexamination fee is refundable. It is deemed earned upon receipt
32by the bureau, whether the accompanying application for a license
33is complete or incomplete.

34

begin deleteSEC. 40.end delete
35begin insertSEC. 43.end insert  

Section 7729.5 is added to the Business and
36Professions Code
, to read:

37

7729.5.  

The annual renewal fee for a cemetery broker’s license
38shall be fixed by the bureau at not more than three hundred dollars
39($300).

P53   1

begin deleteSEC. 41.end delete
2begin insertSEC. 44.end insert  

Section 7729.6 is added to the Business and
3Professions Code
, to read:

4

7729.6.  

If the licensee is a cemetery brokerage corporation,
5the license issued to it entitles one officer only, on behalf of the
6corporation, to engage in the business of a cemetery broker without
7the payment of a further fee, that officer to be designated in the
8application of the corporation for a license. For each other officer
9of a licensed cemetery brokerage corporation, through whom it
10engages in the business of a cemetery broker, the annual renewal
11fee, in addition to the fee paid by the corporation, shall be fixed
12by the bureau at not more than one hundred dollars ($100).

13

begin deleteSEC. 42.end delete
14begin insertSEC. 45.end insert  

Section 7729.7 is added to the Business and
15Professions Code
, to read:

16

7729.7.  

If the licensee is a cemetery brokerage copartnership,
17the license issued to it entitles one member only of the
18copartnership to engage on behalf of the copartnership in the
19business of a cemetery broker, which member shall be designated
20in the application of the copartnership for a license. For each other
21member of the copartnership who on behalf of the copartnership
22engages in the business of a cemetery broker, the annual renewal
23fee, in addition to the fee paid by the copartnership, shall be fixed
24by the bureau at not more than one hundred dollars ($100).

25

begin deleteSEC. 43.end delete
26begin insertSEC. 46.end insert  

Section 7729.8 is added to the Business and
27Professions Code
, to read:

28

7729.8.  

The cemetery salesperson’s license fee shall be fixed
29by the bureau at not more than thirty dollars ($30).

30

begin deleteSEC. 44.end delete
31begin insertSEC. 47.end insert  

Section 7729.9 is added to the Business and
32Professions Code
, to read:

33

7729.9.  

A cemetery salesperson’s license fee is payable on
34each filing of an application for a cemetery salesperson’s license.

35

begin deleteSEC. 45.end delete
36begin insertSEC. 48.end insert  

Section 7729.10 is added to the Business and
37Professions Code
, to read:

38

7729.10.  

The annual renewal fee for a cemetery salesperson’s
39license shall be fixed by the bureau at not more than twenty-five
40dollars ($25).

P54   1

begin deleteSEC. 46.end delete
2begin insertSEC. 49.end insert  

Section 7730 is added to the Business and Professions
3Code
, to read:

4

7730.  

For a branch office broker’s license, the fee shall be fixed
5by the bureau at not more than one hundred dollars ($100).

6

begin deleteSEC. 47.end delete
7begin insertSEC. 50.end insert  

Section 7730.1 is added to the Business and
8Professions Code
, to read:

9

7730.1.  

The cremated remains disposer registration fee shall
10be one hundred dollars ($100).

11

begin deleteSEC. 48.end delete
12begin insertSEC. 51.end insert  

Section 7730.2 is added to the Business and
13Professions Code
, to read:

14

7730.2.  

The renewal fee for a cremated remains disposer
15registration shall be fifty dollars ($50).

16

begin deleteSEC. 49.end delete
17begin insertSEC. 52.end insert  

Section 7730.3 is added to the Business and
18Professions Code
, to read:

19

7730.3.  

For change of name or of address of licensee on the
20records of the bureau, the fee shall be fixed by the bureau at not
21more than twenty-five dollars ($25).

22

begin deleteSEC. 50.end delete
23begin insertSEC. 53.end insert  

Section 7730.4 is added to the Business and
24Professions Code
, to read:

25

7730.4.  

For transfer of a salesperson’s license on change of
26employer, the fee shall be fixed by the bureau at not more than
27twenty-five dollars ($25).

28

begin deleteSEC. 51.end delete
29begin insertSEC. 54.end insert  

Section 7730.5 is added to the Business and
30Professions Code
, to read:

31

7730.5.  

For a duplicate license the fee shall be fixed by the
32bureau at not more than twenty-five dollars ($25).

33

begin deleteSEC. 52.end delete
34begin insertSEC. 55.end insert  

Section 7730.6 is added to the Business and
35Professions Code
, to read:

36

7730.6.  

(a) For reinstatement of a license within the fiscal
37year, the fee shall be fixed by the bureau at not more than
38twenty-five dollars ($25).

39(b) As used in this section, “reinstatement of a license” means
40the reissuance of a canceled cemetery broker’s license, or a
P55   1cemetery salesperson’s license which was canceled during the year
2for which it was issued upon the salesperson’s withdrawal from
3the employ of a cemetery broker.

4

begin deleteSEC. 53.end delete
5begin insertSEC. 56.end insert  

Section 7730.7 is added to the Business and
6Professions Code
, to read:

7

7730.7.  

(a) The fee for a crematory manager examination and
8reexamination may not exceed five hundred dollars ($500).

9(b) The license fee to obtain a crematory manager license may
10not exceed one hundred dollars ($100).

11(c) The renewal fee for a crematory manager license may not
12exceed one hundred dollars ($100).

13

begin deleteSEC. 54.end delete
14begin insertSEC. 57.end insert  

Section 7730.8 is added to the Business and
15Professions Code
, to read:

16

7730.8.  

(a) The fee for a cemetery manager examination and
17reexamination may not exceed nine hundred dollars ($900).

18(b) The license fee to obtain a cemetery manager license may
19not exceed one hundred dollars ($100).

20(c) The renewal fee for a cemetery manager license may not
21exceed one hundred dollars ($100).

22

begin deleteSEC. 55.end delete
23begin insertSEC. 58.end insert  

Section 7730.9 is added to the Business and
24Professions Code
, to read:

25

7730.9.  

The fee for filing a report of a change of designated
26manager or a request for approval to share a designated cemetery
27manager shall not exceed fifty dollars ($50).

28begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 7730.10 is added to the end insertbegin insertBusiness and
29Professions Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert7730.10.end insert  

(a) Every cemetery authority operating a cemetery
31shall pay an annual regulatory charge for each cemetery to be
32fixed by the bureau at not more than four hundred dollars ($400).
33In addition to an annual regulatory charge for each cemetery, an
34additional quarterly charge to be fixed by the bureau at not more
35than eight dollars and fifty cents ($8.50) for each burial,
36entombment, or inurnment made during the preceding quarter
37shall be paid to the bureau and these charges shall be deposited
38in the Cemetery Fund. If the cemetery authority performs a burial,
39entombment, or inurnment, and the cremation was performed at
40a crematory located on the grounds of the cemetery and under
P56   1common ownership with the cemetery authority, the total of all
2additional charges shall be not more than eight dollars and fifty
3 cents ($8.50).

4(b) This section shall remain in effect only until July 1, 2016,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before July 1, 2016, deletes or extends that date.

end insert
7

begin deleteSEC. 56.end delete
8begin insertSEC. 60.end insert  

Section 7730.10 is added to the Business and
9Professions Code
, to read:

10

7730.10.  

begin insert(aend insertbegin insert)end insertbegin insertend insertEvery cemetery authority operating a cemetery
11shall pay an annual regulatory charge for each cemetery to be fixed
12by the bureau at not more than four hundred dollars ($400). In
13addition to an annual regulatory charge for each cemetery, an
14additional quarterly charge to be fixed by the bureau at not more
15than eight dollars and fifty cents ($8.50) for each burial,
16entombment, or inurnment made during the preceding quarter shall
17be paid to the bureau and these charges shall be deposited in the
18Cemetery and Funeral Fund. If the cemetery authority performs a
19burial, entombment, or inurnment, and the cremation was
20performed at a crematory located on the grounds of the cemetery
21and under common ownership with the cemetery authority, the
22total of all additional charges shall be not more than eight dollars
23and fifty cents ($8.50).

begin insert

24(b) This section shall become operative on July 1, 2016.

end insert
25

begin deleteSEC. 57.end delete
26begin insertSEC. 61.end insert  

Section 7731 is added to the Business and Professions
27Code
, to read:

28

7731.  

Upon payment of the charges set forth, the bureau shall
29issue a renewal of the certificate of authority to the cemetery
30authority.

31

begin deleteSEC. 58.end delete
32begin insertSEC. 62.end insert  

Section 7731.1 is added to the Business and
33Professions Code
, to read:

34

7731.1.  

Failure to pay the charges set forth by Section 7730.10
35prior to February 1 for each year shall be cause for suspension of
36the certificate of authority. The certificate may be restored upon
37payment to the bureau of the prescribed charges.

38

begin deleteSEC. 59.end delete
39begin insertSEC. 63.end insert  

Section 7731.2 is added to the Business and
40Professions Code
, to read:

P57   1

7731.2.  

It is a misdemeanor for any cemetery corporation to
2make any interments without a valid certificate of authority. Each
3interment shall be a separate violation.

4begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 7731.3 is added to the end insertbegin insertBusiness and
5Professions Code
end insert
begin insert, to read:end insert

begin insert
6

begin insert7731.3.end insert  

(a) All moneys received by the bureau under the
7provisions of this chapter relating to cemetery regulation shall be
8accounted for and reported by detailed statements furnished by
9the bureau to the Controller at least once a month, and at the same
10time these moneys shall be remitted to the Treasurer, and, upon
11order of the Controller, shall be deposited in the Cemetery Fund
12in the State Treasury, which fund is hereby created.

13(b) This section shall remain in effect only until July 1, 2016,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before July 1, 2016, deletes or extends that date.

end insert
16

begin deleteSEC. 60.end delete
17begin insertSEC. 65.end insert  

Section 7731.3 is added to the Business and
18Professions Code
, to read:

19

7731.3.  

begin insert(a)end insertbegin insertend insert All moneys received by the bureau under the
20provisions of this chapter shall be accounted for and reported by
21detailed statements furnished by the bureau to the Controller at
22least once a month, and at the same time these moneys shall be
23remitted to the Treasurer, and, upon order of the Controller, shall
24be deposited in the Cemetery and Funeral Fund in the State
25Treasury, which fund is hereby created.

begin insert

26(b) This section shall become operative on July 1, 2016.

end insert
27begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 7731.4 is added to the end insertbegin insertBusiness and
28Professions Code
end insert
begin insert, to read:end insert

begin insert
29

begin insert7731.4.end insert  

(a) All moneys paid into the State Treasury and
30credited to the Cemetery Fund shall be expended in accordance
31with law for the payment of all actual and necessary expenses
32incurred in carrying out the provisions of this act.

33(b) This section shall remain in effect only until July 1, 2016,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before July 1, 2016, deletes or extends that date.

end insert
36

begin deleteSEC. 61.end delete
37begin insertSEC. 67.end insert  

Section 7731.4 is added to the Business and
38Professions Code
, to read:

39

7731.4.  

begin insert(a)end insertbegin insertend insert Allbegin delete moneyend deletebegin insert moneysend insert paid into the State Treasury
40and credited to the Cemetery and Funeral Fund shall be expended
P58   1in accordance with law for the payment of all actual and necessary
2expenses incurred in carrying out the provisions of this act.

begin insert

3(b) This section shall become operative on July 1, 2016.

end insert
4

begin deleteSEC. 62.end delete
5begin insertSEC. 68.end insert  

Chapter 19 (commencing with Section 9600) of
6Division 3 of the Business and Professions Code is repealed.

7

begin deleteSEC. 63.end delete
8begin insertSEC. 69.end insert  

No reimbursement is required by this act pursuant to
9Section 6 of Article XIII B of the California Constitution because
10 the only costs that may be incurred by a local agency or school
11district will be incurred because this act creates a new crime or
12infraction, eliminates a crime or infraction, or changes the penalty
13for a crime or infraction, within the meaning of Section 17556 of
14the Government Code, or changes the definition of a crime within
15the meaning of Section 6 of Article XIII B of the California
16Constitution.



O

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