BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 180|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 180
          Author:   Bonilla (D), et al.
          Amended:  8/27/15 in Senate
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  9-0, 7/6/15
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/17/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  80-0, 6/1/15 - See last page for vote

           SUBJECT:   Cemetery and Funeral Bureau


          SOURCE:    Author

          DIGEST:   This bill requires the Cemetery and Funeral Bureau to  
          report to the appropriate policy committees of the Legislature,  
          before January 1, 2020, and conduct a review of endowment care  
          fund requirements, as specified, by January 1, 2018.

          Senate Floor Amendments of 8/27/15 address the date of the  
          merger of the State Funeral Directors and Embalmers Fund and the  
          Cemetery Fund, change the endowment care reporting deadline, and  
          make other various technical and clarifying changes.

          ANALYSIS: 
          
          Existing law:









                                                                     AB 180  
                                                                    Page  2


          1)Establishes the Funeral and Directors and Embalmers Law  
            (Funeral Law) which provides for the licensure and regulation  
            of funeral directors and embalmers, within the Department of  
            Consumer Affairs (DCA), and requires the director of the DCA  
            to administer and enforce the Funeral Law.  (Business and  
            Professions Code (BPC) § 7600 et seq.)

          2)Authorizes the Cemetery and Funeral Bureau (Bureau) to adopt  
            and enforce reasonably necessary rules and regulations  
            relating to: the practice of embalming; the business of a  
            funeral director; the sanitary conditions of places where such  
            practice or business is conducted; specifying conditions for  
            approval of funeral establishments for apprentices and  
            mortuary science programs; the scope of examination; and,  
            carrying out the provisions for the protection of the peace,  
            health, safety, welfare and morals of the public.  
          (BPC § 7606)

          3)Establishes the Cemetery Act which provides for the licensure  
            and regulation of cemetery salespersons, cemetery managers,  
            crematory managers, cemetery brokers, and cremated remains  
            disposers.  (BPC § 9600 et seq.)

          4)Authorizes the Bureau to establish necessary rules and  
            regulations for the administration and enforcement of the  
            Cemetery Act.  (BPC § 9630)

          This bill:

          1)Requires the powers and duties of the Bureau be reviewed by  
            the appropriate policy committees of the Legislature before  
            January 1, 2020.

          2)Requires the Bureau to conduct a study of endowment care funds  
            as specified, by January 1, 2018.

          3)Combines the Cemetery Fund and the Funeral Directors and  
            Embalmers Fund to create the Cemetery and Funeral Fund.

          4)Delays the date of merging the Cemetery Fund and the Funeral  
            Directors and Embalmers Fund to July 1, 2016, as specified.

          5)Merges the Funeral and Directors and Embalmers Law with the  
            Cemetery Act to create the Cemetery and Funeral Act.







                                                                     AB 180  
                                                                    Page  3



          6)Makes other technical and conforming changes.

          Background
          
          In 2015, the Senate Business, Professions and Economic  
          Development Committee and the Assembly Business and Professions  
          Committee (Committees) conducted joint oversight hearings to  
          review 12 regulatory entities including the Bureau.  This bill  
          is intended to implement legislative changes as recommended by  
          staff of the Committees reflected in a Background Paper on the  
          Bureau, as well as the discussion stemming from an oversight  
          hearing on the Bureau. 

          The Bureau licenses and regulates more than 11,000 licensees in  
          13 different licensing categories.  The Bureau does not license  
          or regulate cemeteries operated by religious organizations,  
          cities, counties, cemetery districts, the military, Native  
          American tribal organizations, or other groups.  The Bureau has  
          the oversight responsibility for both fiduciary and operational  
          activities of its licensing population and has the statutory  
          authority to enforce the licensing and practice acts in the BPC  
          along with jurisdiction over specified provisions of the Health  
          and Safety Code dealing specifically with human remains,  
          cemetery, and crematory provisions.  

          Endowment care funds.  The Background Paper discussed the annual  
          requirement for cemeteries to file a report regarding the amount  
          collected for endowment care funds and special care funds  
          (preneed cemetery merchandise and services), the manner of  
          investment of the funds, as well as other financial information  
          and related documents. The annual report must be submitted with  
          an audit report signed by a certified public accountant.  The  
          Bureau's audit unit reviews each of those annual reports and  
          assesses any potential risk to the funds.  In 2008, the Bureau  
          reported to the Legislature the results from its Endowment Care  
          Fund Survey, which addressed the need to increase endowment care  
          fund requirements. 

          While an increase in funding for endowment care was enacted in  
          2008, staff recommended in the background paper that the Bureau  
          conduct an updated study on endowment care fund requirements and  
          needs.  This bill will require the Bureau to conduct a study of  
          endowment care funds and report back to the Legislature by  







                                                                     AB 180  
                                                                    Page  4


          January 1, 2018.  

          Continuation of the Bureau.  This bill will authorize the  
          continued operation of the Bureau as it is currently functioning  
          under the DCA and request the Bureau to be reviewed by the  
          Legislature again in four years.  By continuing the functions of  
          the Bureau, this bill will allow the Bureau to continue in its  
          regulatory capacity for the protection of consumers and the  
          regulation of all aspects of the funeral and cemetery  
          industries.  

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   Yes


          According to the Senate Committee on Appropriations, this bill  
          will not result in any significant ongoing operational costs.




          SUPPORT:   (Verified8/31/15)


          None received


          OPPOSITION:   (Verified8/31/15)


          None received


          ASSEMBLY FLOOR:  80-0, 6/1/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,  







                                                                     AB 180  
                                                                    Page  5


            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

          Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
          8/31/15 15:59:52


                                   ****  END  ****