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 ****