Cemetery and Funeral ActDefinitions and Regulation of Cemeteries
Section § 7611
This section states that any definitions provided within this article are used to interpret the terms in the act, unless there's a clear exception stated or implied.
Section § 7611.1
This section defines the term 'Act' specifically as referring to the Cemetery and Funeral Bureau Act.
Section § 7611.10
Endowment care or endowed care refers to funds meant to cover both general and specific maintenance or care needs.
Section § 7611.12
This law defines what a 'licensed hydrolysis facility' is and associates it with cemetery licenses for disciplinary actions. Essentially, it refers to businesses or individuals who are officially allowed to perform hydrolysis—a type of body disposition alternative to cremation. These facilities are subject to disciplinary actions similar to those applied to cemeteries. The law became effective on July 1, 2020.
Section § 7611.2
This law defines a 'cemetery broker' as someone who is involved in selling, buying, or managing transactions related to cemetery property or burial services, not just occasionally, but as part of their ongoing business, either for themselves or others.
Section § 7611.3
A cemetery salesperson is someone hired by a cemetery broker to conduct activities like selling, advertising, buying, leasing, or negotiating cemetery property or burial services, except for the occasional sale. This person does this for themselves or on behalf of someone else.
Section § 7611.4
This section defines what a 'cemetery manager' does in California. Basically, it includes anyone involved in running a licensed cemetery, which means taking care of the cemetery grounds, burying human remains, and keeping the property well-preserved and attractive. It also mentions that if you're licensed according to another specific section (7637.1), being a cemetery manager also includes additional activities listed under a different section (7637.2).
Section § 7611.5
A crematory manager is someone who operates or manages a crematory, which includes handling tasks related to the cremation of human remains.
Section § 7611.6
This section explains that the terms and definitions used in a specific part of the Health and Safety Code also apply to this act.
Section § 7611.7
Section § 7611.8
This law defines a 'crematory licensee' as any corporation, partnership, or individual that is licensed under a specific article related to crematories. For the purposes of disciplinary actions, these licensees are treated like cemetery licensees.
Section § 7611.9
This law defines a 'cremated remains disposer' as someone who scatters or offers to scatter cremated or hydrolyzed human remains over land or sea, either for themselves or others.
Note that this definition is only effective until January 1, 2027, after which it will be repealed.
Section § 7611.9
This law defines a 'cremated remains disposer' as anyone who handles the disposal of human ashes or hydrolyzed remains, either by scattering them over land or sea or by integrating them into the soil. This rule will start being enforced from January 1, 2027.
Section § 7612
This law defines an "occasional sale" as a one-time sale of cemetery property that wasn't bought to sell again or to make a profit. It clarifies that if you're frequently selling or reselling these properties, you're considered in the business of trading them, which isn't covered by this definition.
Section § 7612.1
Section § 7612.10
If a cemetery authority doesn't file its required report on time, they can be fined up to $400 per month for up to five months. This fine is based on regulations and must be paid within 15 days after they are notified. If a request for a waiver or reduction is made, it should also be submitted within that time frame, along with a reason for the request. The bureau can decide to waive or reduce the fine if there's a good enough reason.
Section § 7612.11
This law requires a bureau to study whether cemetery endowment care funds are enough to handle future maintenance. Cemeteries must report detailed land and sales information by January 1, 2028, including when they started collecting care fees, the size of sold and unsold land, and spaces contributing to care funds. The bureau must submit its study findings to the Legislature by January 1, 2029. This law is set to expire on January 1, 2033.
Section § 7612.12
The law requires creating a workgroup by July 1, 2027, to explore ways to maintain and care for abandoned cemeteries in California. This group will include people from the cemetery industry, county government, and other interested parties. They will consider having counties take over the abandoned cemeteries. A report detailing these discussions and any proposals must be submitted to the Legislature by January 1, 2028. This law is temporary and will expire on January 1, 2029.
Section § 7612.2
This law outlines specific exceptions where certain cemeteries aren't subject to the rules of the article. These exceptions include religious organizations and churches, public cemeteries, and some small private or fraternal burial parks established before a certain date. However, if these cemeteries collect deposits for care or set up burial trusts, they must follow certain regulations.
Section § 7612.3
This law requires the bureau to post online specific details about cemeteries they oversee. They need to share the cemetery's name, the owner's name, the owner's business address, and the cemetery's physical location.
Section § 7612.4
This law requires regulations to be set for maintaining endowment care cemeteries to protect consumers. The rules will vary based on the cemetery's size, location, and other factors, and they must take into account available funds for maintenance. These standards cannot replace any existing higher standards of care.
Section § 7612.5
If you've had a professional license or registration revoked, suspended, probated, or surrendered in the past 10 years and want to work for a cemetery, crematory, or cemetery broker, you must inform your potential employer using a specific form. The employer must then notify the responsible bureau within 30 days or risk a warning, unless they were misled by false information from you. If you fail to disclose or lie on the form, you could face disciplinary action or be denied a future license. This rule also applies if you were an owner or officer of a company that lost its license.
Section § 7612.6
Cemeteries in California must submit an annual report to a regulatory bureau detailing the sale of grave spaces and how funds for endowment care have been handled. The report, verified by top officials of the cemetery, should include information on investments and transactions related to these funds. It must also be accompanied by an annual audit from a certified accountant to ensure accuracy. If needed, an extension of up to nine months to file this report may be requested.
Section § 7612.7
If a cemetery wants to change how they report their endowment care fund from using a calendar year to using a fiscal year, or vice versa, they must submit a request to the relevant bureau before the year ends. The bureau can approve the change as long as the report doesn't cover more than 12 months.
Section § 7612.8
This law requires that the name of the trustee managing an endowment care fund be included in a report. If there is a change in who the trustee is, that change must be reported to the relevant bureau within 30 days.
Section § 7612.9
This law ensures that annual audit reports from cemetery authorities are accessible to the public. These reports should be sent to the bureau and must be available for public viewing at the cemetery authority's offices during regular hours. If there's no office in the same county as the cemetery, a copy should be filed with the county clerk for public access.
Section § 7613
Section § 7613.1
This law requires that the state's bureau regularly checks on the endowment care funds managed by cemetery authorities. The bureau must do this at least every five years, but more often if the cemetery fails to report, an accountant raises concerns, or if there's a valid complaint about financial wrongdoing. If the bureau finds mistakes requiring more investigation, the cemetery might have to cover the costs of this examination if it takes more than a day.
Section § 7613.10
If there's a valid concern that a cemetery's endowment funds are being mismanaged or could be lost, the bureau can quickly step in, without prior warning or court approval, to take control of those funds and related documents. This is to prevent further harm. Anyone who refuses to hand over these documents once the bureau steps in could be fined up to $1,000 or face up to a year in jail, or both.
Section § 7613.11
This law explains what happens to a cemetery's endowment care funds and property if its operating certificate is canceled, surrendered, or revoked. After 90 days, the bureau takes control of the funds and assets, appoints a bank or trust company to manage them, and acts as a conservator. However, if the cemetery changes ownership within those 90 days, this process does not apply.
Section § 7613.2
If a cemetery business doesn't pay the required inspection fees, the state will not allow it to operate, and any existing permits will be taken away. The fees collected go into a government fund for cemetery and funeral services. This rule has been in effect since July 1, 2016.
Section § 7613.3
This law states that an examining bureau has the right to access and review the books and records related to cemetery trust funds, including their collection and investment and how many burial options are under endowment care. They will check the trust funds' condition, investments, and whether cemetery corporations are following the laws related to these funds. If the bureau asks for proof of how the trust fund income is spent and the cemetery authority doesn't comply, the bureau can access the records to ensure laws are being followed.
Section § 7613.4
This law outlines the requirements for limited liability companies (LLCs) certified as cemetery authorities to provide certain professional cemetery and funeral services. Such LLCs must employ licensed professionals like cemetery brokers and funeral directors. They are required to have financial security in place to cover potential claims related to employees' actions. This security can be insurance, financial reserves, guarantees by LLC members, or verification of sufficient net worth. Insurance or financial reserves must range from one to five million dollars depending on the number of licensed employees. Additionally, if dissolved, the company must maintain coverage for a period of up to three years. The law permits these LLCs to use different combinations of these methods to meet the security requirements.
Section § 7613.5
This law states that anyone licensed to work with cemeteries or funerals, like a cemetery manager or funeral director, cannot have ownership in a company that runs a cemetery. If they do, the company will be breaking the law, and its members will face personal legal responsibility for any mistakes or problems. If a licensed person does own part of such a company, the cemetery authority's operation certificate will be suspended until that person gives up their ownership or license.
Section § 7613.6
This law allows the bureau to require people involved with the endowment care fund to swear an oath and answer questions about it. These interviews happen privately at the main office managing the fund.
Section § 7613.7
This law requires cemetery corporations to follow specific rules if an inspection or report shows they haven't put enough money into their endowment care funds, as required since 1939. If they fall short, they must comply with certain sections of the Health and Safety Code.
Section § 7613.8
This law says that if the bureau discovers that endowment care funds are invested improperly, according to the Health and Safety Code, they must issue a written order to fix it. Depending on when the bad investment occurred, the fund manager must reinvest the money correctly within a period that ranges from at least 30 days to two years. The bureau can extend this deadline if it chooses to.
Section § 7613.9
Section § 7614
If a city or county needs to take care of a cemetery due to health, safety, or welfare issues, and the cemetery's operating license is revoked or expired, they can be reimbursed for their costs. This reimbursement would come from any available income in the cemetery's specific endowment care fund. Cities can act under local rules or general powers, and they're protected from certain lawsuits when they do.
Section § 7614.1
This law requires local law enforcement, like county sheriffs and city police, to help the bureau when it seizes something according to a specific legal process. If the bureau asks for assistance, these officers must provide support to carry out and enforce the seizure.
Section § 7614.2
Right after making a seizure based on Section 7613.10, the bureau must start a legal process according to the rules in Section 7613.9.
Section § 7614.3
This law states that the bureau is in charge of managing the money collected under certain sections. The bureau can deposit this money without needing a court's approval in several authorized places: banks or trust companies that can handle trust funds, a state treasury account, or funds managed by the State Treasurer.
Section § 7614.4
Section § 7614.5
This law allows the bureau to take legal action to ensure people or organizations are following the rules under its authority, and the Attorney General will act as its lawyer in these cases.
Section § 7614.6
This section states that the bureau is responsible for overseeing and applying specific parts of the Health and Safety Code, specifically starting at Sections 8100, 8250, and 9501 within Division 8.
Section § 7614.7
This section explains how cemetery corporations should report the value of any debts they hold, like bonds or debentures, in their reports to the bureau. If the corporation purchased these debts at face value (par), they're valued at that same amount. If bought at a different price, the value should be adjusted to account for their maturity and interest rate. However, the value should never be reported higher than what they were worth in the market when purchased.
Section § 7614.8
This law says that if a security or debt is in default or isn't well-secured, it can only be counted at its market value as an asset in an endowment care fund. You can't inflate its value beyond what it's currently worth in the market.
Section § 7614.9
This law requires cemetery authorities to provide the person in charge of the burial or cremation with a copy of any pre-arranged burial or cremation contract that was fully or partially paid for by the deceased. This copy should be sent in a way both parties agree on, like in person, by certified mail, or by fax. If the cemetery authority knowingly fails to do this, they can be fined either three times the contract's cost or $1,000, whichever is greater.