Cemeteries., the official text

An act to amend Sections 7612.6 and 7612.7 of, and to add Sections 7604 and 7653.10 to, the Business and Professions Code, and to amend the heading of Chapter 7 (commencing with Section 8825) of Part 3 of Division 8 of, and to add Chapter 7.5 (commencing with Section 8830) to Part 3 of Division 8 of, the Health and Safety Code, relating to cemeteries.

LEGISLATIVE COUNSEL'S DIGEST

(1) Existing law, the Cemetery and Funeral Act, establishes the Cemetery and Funeral Bureau within the Department of Consumer Affairs and sets forth its powers and duties relating to the licensure and regulation of, among others, cemeteries and cemetery authorities.
Existing law authorizes the bureau to establish necessary rules and regulations for the administration and enforcement of the act and the laws subject to its jurisdiction and to prescribe the form of statements and reports provided for in the act.
This bill would authorize the bureau to establish an advisory committee to assist the bureau in engaging consumers and licensees in its regulatory activities. The bill would require the advisory committee, if established by the bureau, to include at least one member from licensed representatives of the death care industry, members of the public, and representatives of local governments.
Existing law authorizes a cemetery authority that maintains a cemetery to place its cemetery under endowment care and to establish, maintain, and operate an endowment care fund. Existing law requires each cemetery authority to file with the bureau annually, on or before June 1, or within 5 months after close of their fiscal year, as specified, a written report in a form prescribed by the bureau setting forth, among other things, the amount collected and deposited in both the general and special endowment care funds, as specified. Existing law requires certain information set forth in the report, including the information described above, to be accompanied by an annual audit report prepared in accordance with generally accepted accounting principles of the endowment care fund and special care fun, as specified.
This bill would require each cemetery authority to instead file the report with the bureau every 3 or 5 years, or within 5 months after close of their 3rd or 5th fiscal year, as specified. The bill would require the above-described information to instead be accompanied by an annual audit report for each year within that reporting period.
Existing law requires a cemetery authority requesting a change of filing date of the report from a calendar year to a fiscal year or a change in fiscal year to file a petition with the bureau prior to the close of the year of request, and authorizes the bureau to approve a petition provided that no report is for a period of more than 12 months.
This bill would remove the prohibition on the bureau from approving a petition for a report for a period of more than 12 months.
Existing law requires the bureau, 90 days following the cancellation, surrender, or revocation of a certificate of authority, to take title of any endowment care funds of the cemetery authority, take possession of all necessary books, records, property, and assets, and act as conservator of the management of the endowment care funds, as provided. Existing law authorizes a court, based upon a finding that a cemetery manager of a private cemetery has ceased to perform specified duties due to a lapse, suspension, surrender, abandonment, or revocation of their license, to appoint a temporary manager to manage the cemetery property and to service the prepaid interments of the private cemetery.
This bill would require a court to take specified actions with respect to a cemetery, including naming the bureau conservator, upon a finding that a certificate of authority of a cemetery for which a certificate of authority is required has lapsed or has been suspended, abandoned, or revoked. The bill would authorize the bureau to establish abbreviated requirements for the operation and maintenance of the property, as provided. The bill would provide that the new owner to which property is transferred and any individual serving as a temporary manager is not liable for debts, obligations, taxes, fines, or judgments of the previous owners. The bill would deem a certificate of authority as abandoned for these purposes if the court determines that for an extended and unreasonable period of time certain conditions have occurred, including the inability of the community to access and visit the property, and that the health, safety, comfort, or welfare of the public is threatened or endangered.
(2) Existing law generally regulates cemeteries, including private cemeteries. Existing law authorizes a city or county having a nonendowment care cemetery within its boundaries which threatens or endangers the health, safety, comfort, or welfare of the public to, by resolution of its governing board, as specified, declare the abandonment of the cemetery as a place of future interment. Existing law requires the city or county to permit interment therein of any person who, among other things, is an owner of a plot in the cemetery on the date of adoption of the resolution.
After the work which the governing body, in its discretion, finds necessary and practicable has been completed, existing law requires the governing body to immediately thereafter, by resolution containing a legal description of the cemetery, dedicate the abandoned cemetery as a pioneer memorial park, as specified. Existing law requires, upon recordation of the resolution with the county recorder of the county in which the cemetery is located, fee title to the cemetery to vest in the city or county, as specified. Existing law requires any county or city acquiring fee title to a cemetery under these provisions to only use the property for the purpose of establishing and maintaining a pioneer memorial park.
This bill would authorize a city, county, or city and county, by resolution of its governing board, to formally declare the abandonment of a cemetery that was formerly licensed under the Cemetery and Funeral Act and maintained an endowment fund if certain circumstances apply, including that the certificate of authority of the cemetery has been canceled, surrendered, abandoned, or revoked for at least one year, and the owner of the cemetery property is provided written notice, as specified. If the cemetery has been declared abandoned for more than one year, the bill would require the title of the abandoned endowment care cemetery to transfer to the city, county, or city and county that declared the cemetery abandoned and to be recorded with the county. The bill would require the city, county, or city and county to keep a record of and honor all prior and outstanding contracts for burial entered into by the prior cemetery authority. The bill would specify that the city, county, or city and county is not liable for, among other things, any debts, obligations, taxes, fines, or judgments of the previous owner, except as specified, and would prohibit the local government from being required to return the property to the prior owner of the cemetery property.
The bill would authorize the city, county, or city and county to transfer the care and management of an abandoned endowment care cemetery to certain entities, including a religious corporation, to be responsible for, among other things, the care, maintenance, and embellishment of the cemetery. The bill would require the entity to keep a record of and honor all prior and outstanding contracts for burial entered into by the prior cemetery authority. The bill would specify that the entity is not liable for any debts, obligations, taxes, fines, or judgments of the previous owner, except as described above.
The bill would authorize the city, county, or city and county to also transfer the care and management of an abandoned endowment care cemetery to a cemetery owner licensed under the Cemetery and Funeral Act, and provide the cemetery owner a period of 5 years to become compliant with the minimum maintenance standards described in the act.
The bill would authorize the endowment care fund of an abandoned endowment care cemetery to be disbursed to the person or entity caring for and managing the cemetery as described above for any care, maintenance, or embellishment performed, as specified. If a licensee or an entity described above does not assume ownership of an abandoned endowment care cemetery, the bill would provide the city, county, or city and county authority over the endowment care fund and require the city, county, or city and county to be responsible for ongoing care, maintenance, and embellishment of the cemetery and performance of any prepaid burial obligations.
Existing law, the Public Cemetery District Law, provides for the formation of public cemetery districts, and authorizes those districts to own, operate, improve, and maintain cemeteries and provide interment services within their boundaries.
This bill would authorize a person or entity caring for and managing an abandoned endowment care cemetery to initiate a petition to form a public cemetery district or join an existing public cemetery district pursuant to that law.

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

SECTION 1.
Section 7604 is added to the Business and Professions Code, to read:
7604.
The bureau may establish an advisory committee to assist the bureau in engaging consumers and licensees in its regulatory activities. If the bureau establishes an advisory committee, the advisory committee shall include at least one member from each of the following groups:
(a) Licensed representatives of the death care industry.
(b) Members of the public.
(c) Representatives of local governments.

SEC. 2.
Section 7612.6 of the Business and Professions Code is amended to read:
7612.6.
(a) Each cemetery authority shall file with the bureau every three or five years, on or before June 1, or within five months after close of their third or fifth fiscal year provided approval has been granted by the bureau as provided for in Section 7612.7, a written report in a form prescribed by the bureau setting forth the following:
(1) The number of square feet of grave space and the number of crypts and niches sold or disposed of under endowment care by specific periods as set forth in the form prescribed.
(2) The amount collected and deposited in both the general and special endowment care funds segregated as to the amounts for crypts, niches, and grave space by specific periods as set forth either on the accrual or cash basis at the option of the cemetery authority.
(3) A statement showing separately the total amount of the general and special endowment care funds invested in each of the investments authorized by law and the amount of cash on hand not invested, which statement shall actually show the financial condition of the funds.
(4) A statement showing separately the location, description, and character of the investments in which the special endowment care funds are invested. The statement shall show the valuations of any securities held in the endowment care fund as valued pursuant to Section 7614.7.
(5) A statement showing the transactions entered into between the corporation or any officer, employee, or stockholder thereof and the trustees of the endowment care funds with respect to those endowment care funds. The statement shall show the dates, amounts of the transactions, and shall contain a statement of the reasons for those transactions.
(b) The report shall be verified by the president or vice president and one other officer of the cemetery corporation. The information submitted pursuant to paragraphs (2), (3), (4), and (5) of subdivision (a) shall be accompanied by an annual audit report for each year within the reporting period described in subdivision (a) prepared in accordance with generally accepted accounting principles, of the endowment care fund and special care fund signed by a certified public accountant or public accountant. The scope of the audit shall include the inspection, review, and audit of the general purpose financial statements of the endowment care fund and special care fund, which shall include the balance sheet, the statement of revenues, expenditures, and changes in fund balance.
(c) If a cemetery authority files a written request prior to the date the report is due, the bureau may, in its discretion, grant an extension for no more than an additional nine months within which to file the report.

SEC. 3.
Section 7612.7 of the Business and Professions Code is amended to read:
7612.7.
Each cemetery authority requesting a change of filing date of the endowment care fund report from a calendar year to a fiscal year or a change in fiscal year shall file a petition with the bureau prior to the close of the year of request.

SEC. 4.
Section 7653.10 is added to the Business and Professions Code, to read:
7653.10.
(a) In addition to any other remedies provided by law, upon a finding by a court of competent jurisdiction that a certificate of authority of a cemetery for which a certificate of authority is required has lapsed or has been suspended, surrendered, abandoned, or revoked, the court shall do all of the following with respect to the cemetery:
(1) Name the bureau conservator to conserve the endowment care fund and special care fund.
(2) Take actions as it deems appropriate pursuant to Sections 7613.11, 7653.1, and 7653.9.
(3) Authorize interments for decedents who have a right of interment through a preneed contract.
(4) Take actions as it deems appropriate to ensure the continued care, maintenance, and embellishment of the property.
(5) Pursue the transfer of the entirety or portions of the property ownership to one or more nonprofit, business, or governmental entities.
(b) The bureau may establish abbreviated requirements for the operation and maintenance of the property or portions of the property as it deems appropriate for its planned use and in recognition of the limited financial viability of the property.
(c) The new owner to which the property is transferred and any individual serving as a temporary manager shall not be liable for the debts, obligations, taxes, fines, or judgments of the previous owner.
(d) For purposes of this section, a certificate of authority is abandoned if the court determines that for an extended and unreasonable period of time one or more of the following has occurred and that the health, safety, comfort, or welfare of the public is threatened or endangered:
(1) Unresponsiveness to the public.
(2) Inability of the community to access and visit the property.
(3) Failure to perform authorized interments.
(4) Nonpayment of property taxes.
(5) Serious violation of the maintenance standards.
(6) A city or county declaration of abandonment as provided in Section 8825 of the Health and Safety Code.
(7) Unavailability of special care or endowment care funds for the purposes set forth in this chapter.

SEC. 5.
The heading of Chapter 7 (commencing with Section 8825) of Part 3 of Division 8 of the Health and Safety Code is amended to read:
7.
Abandonment of a nonendowment care cemetery

SEC. 6.
Chapter 7.5 (commencing with Section 8830) is added to Part 3 of Division 8 of the Health and Safety Code, to read:
7.5.
Abandonment of an Endowment Care Cemetery8830.
For purposes of this section, the following definitions apply:
(a) “Abandoned endowment care cemetery” means a cemetery that was formerly licensed under Chapter 12 (commencing with section 7600) of Division 3 of the Business and Professions Code, maintained an endowment care fund, and is declared abandoned pursuant to Section 8831.
(b) “Bureau” means the Cemetery and Funeral Bureau.
(c) “Endowment care fund” means an endowment care fund described in Section 8725.

8831.
A city, county, or city and county may, by resolution of its governing board, formally declare the abandonment of a cemetery for purposes of this chapter if the circumstances in subdivision (a) apply and the owner of the cemetery property is provided written notice pursuant to subdivision (b), as follows:
(a) (1) The city, county, or city and county may declare a cemetery abandoned pursuant to this section if all of the following circumstances have occurred:
(A) The certificate of authority of the cemetery has been canceled, surrendered, abandoned, or revoked for at least one year.
(B) The bureau has conserved the endowment care fund.
(C) In addition to subparagraphs (A) and (B), at least one of the following circumstances are met:
(i) The bureau has imposed citations or disciplinary actions for maintenance deficiencies or mismanagement of the endowment care fund of the cemetery.
(ii) Local authorities have imposed citations or notices.
(iii) Nonpayment of property taxes have resulted in a lien on the cemetery property.
(iv) Local authorities have performed maintenance on the cemetery property to protect public health, safety, or welfare.
(v) There has been limited access or no access to the cemetery property for families and visitors.
(vi) The owner of the cemetery property has voluntarily abandoned the property. Notwithstanding any other requirement of this section, a finding of this circumstance alone shall be sufficient to declare a cemetery abandoned pursuant to this section.
(2) Any of the following circumstances may have occurred:
(A) The cemetery has not made any sales for at least one year.
(B) There has not been any interments for at least one year.
(C) There is little to no remaining inventory or cemetery plots.
(b) (1) Written notice shall be provided to the owner of the cemetery property 90 days prior to, and upon, declaration of abandonment.
(2) Written notice to the owner of the cemetery property shall, at a minimum, identify the record owner or possessor of property, set forth the last known address of the record owner or possessor, set forth the date that the city, county, or city and county began the process to declare abandonment, and include a description of the real property subject to abandonment.

8832.
If the cemetery has been declared abandoned pursuant to Section 8830 for more than one year, the title of the abandoned endowment care cemetery shall transfer to the city, county, or city and county that declared the cemetery abandoned and shall be recorded with the county.
(a) The city, county, or city and county shall keep a record of and honor all prior and outstanding contracts for burial entered into by the prior cemetery authority.
(b) The city, county, or city and county shall not be liable for any of the following:
(1) Except as provided in subdivision (a), any debts, obligations, taxes, fines, or judgments of the previous owner.
(2) Harm, loss, or damages for any actions performed by the prior owner of the cemetery property for a period of three years while the property is returned to a safe condition.
(3) Failure to provide any missing paperwork or contracts.
(c) The city, county, or city and county shall not be required to return the property to the prior owner of the cemetery property.

8833.
The city, county, or city and county may transfer the care and management of an abandoned endowment care cemetery to an entity described in Section 7612.2 of the Business and Professions Code to be responsible for the care, maintenance, and embellishment the cemetery and working with licensees under the Cemetery and Funeral Act (Chapter 12 (commencing with Section 7600) of Division 3 of the Business and Professions Code) to perform burials for any graves in the cemetery previously sold.
(a) The entity shall keep a record of and honor all prior and outstanding contracts for burial entered into by the prior cemetery authority.
(b) Except as provided in subdivision (a), the entity shall not be liable for any debts, obligations, taxes, fines, or judgments of the previous owner.

8834.
(a) The city, county, or city and county may transfer the care and management of an abandoned endowment care cemetery to a cemetery owner licensed under the Cemetery and Funeral Act (Chapter 12 (commencing with Section 7600) of Division 3 of the Business and Professions Code).
(b) The cemetery owner shall have a period of five years to become compliant with the minimum maintenance standards described in the Cemetery and Funeral Act (Chapter 12 (commencing with Section 7600) of Division 3 of the Business and Professions Code).

8835.
(a) The endowment care fund of an abandoned endowment care cemetery may be disbursed to the person or entity caring for and managing the cemetery, as described in this chapter, to conserve and protect the fund.
(b) If a licensee under the Cemetery and Funeral Act (Chapter 12 (commencing with Section 7600) of Division 3 of the Business and Professions Code) or an entity described in Section 7612.2 of the Business and Professions Code does not assume ownership of an abandoned endowment care cemetery, the city, county, or city and county shall have authority over the endowment care fund and shall be responsible for ongoing care, maintenance, and embellishment of the cemetery and performance of any prepaid burial obligations.

8836.
The person or entity caring for and managing an abandoned endowment care cemetery may initiate a petition to form a public cemetery district or join an existing public cemetery district pursuant to the Public Cemetery District Law (Chapter 1 (commencing with Section 9000) of Part 4 of Division 8 of the Health and Safety Code).