This law section states that funeral homes in California cannot collect money or securities for future services without putting those funds in a trust. This trust ensures that the money is used for the intended funeral services only when needed. The payment is released upon the person's death for whom the trust was set up. The trust's income can be used for administrative fees, but not more than the income posted in the previous 12 months. Additionally, taxes on trust earnings can be paid separately and are not part of administrative fees. The main portion of the trust cannot be used for commissions or expenses unrelated to the trust's administration.

This law requires that any contract for arranging funerals in advance (known as a preneed funeral arrangement) must clearly inform the customer if there are any restrictions or if the promised benefits are not available for any reason.

This section of the law defines key terms related to funeral service arrangements. 'Trustee' refers to a bank or trust company authorized by California, or a group of at least three people including potentially an employee of a funeral home, who manage trust funds. 'Trustor' is the person who pays for these arrangements in advance, 'beneficiary' is the person for whom the funeral is planned, and 'corpus of the trust' includes all the money and securities given by the trustor.

This law pertains to how money or securities entrusted for future funeral services are handled. Funeral homes must deposit the entrusted funds with a trustee within 30 days. These funds may be returned to the trustor before services are provided, subject to certain conditions and possible fees. Upon the death of the beneficiary, funds are released to the funeral home after proof of death and service provision. Funds that go unclaimed are turned over to the state. A funeral business must handle preneed funeral agreements responsibly, especially if it changes ownership or closes. If the funeral home is sold or closes, any unreturned funds should be given back to the original trustor or their representative unless they're transferred to another authorized business. Additionally, no fees are allowed for certain administrative tasks, except as part of regular trust administration. The law also outlines what happens when funds are unclaimed and emphasizes no further liability is on the trustee once funds are delivered to the appropriate parties.

This law details what a funeral home must do when it plans to go out of business by selling or closing, or if it faces revocation. If the business is transferring preneed funeral agreements to another licensed funeral home, it must notify both the beneficiaries and trustees 60 days before stopping operations. The notice has to tell them about the transfer and that they can cancel the agreement within 60 days. The shutting business must also tell the state bureau and provide proof to the new funeral business. If the agreements aren't going to another funeral home, the beneficiaries will get a notice saying that their agreements will be canceled unless they claim their funds within six months. Otherwise, the funds go to the state. These rules apply from January 1, 2023.

This law requires a government bureau to create and put certain forms on its website by January 1, 2023, as outlined in the previous section. Additionally, by the same date, the bureau must establish and post rules detailing what type of proof is needed for a funeral home that is stopping operations, as well as for the new licensed funeral home taking over. These regulations are meant to ensure proper notification and documentation processes are followed.

Funeral homes in California that mix preneed trust funds must have these funds audited every year by an independent certified financial auditor. A copy of the audit report needs to be sent to the state bureau within 120 days after the fund's fiscal year ends. If the audit finds that the funeral home isn't following the rules about these funds, this must be reported separately for the authorities to review and address. Both the audit and noncompliance report must be submitted at the same time.

This law allows a trustee, who manages funds or property for the benefit of others, to place the main assets of the trust into a credit union that is insured by the National Credit Union Share Insurance Fund.

This law states that a funeral home that also operates a cemetery cannot mix funds from preneed funeral arrangements with funds meant for endowment care of the cemetery. Similarly, funds meant for cemetery endowment care can't be placed into preneed funeral trusts. However, any investments that were legally made before the end of 1981 do not need to be changed or sold off because of this rule.

If someone intentionally breaks the rules in this article, they can face up to six months in county jail, a fine up to $500, or both. More serious punishment of up to three years in prison is also possible. If the violator owns a funeral home, they might also face additional discipline according to certain other laws.

This section gives the bureau the power to enforce rules and regulations related to trust funds to ensure they are managed properly. They can create new rules if they think it's needed to protect these funds.

This law requires funeral homes to pay a specific fee to the funeral services bureau when they file any reports about preneed trust funds, as mandated by the bureau's rules.

This law section states that the rules in this article do not apply to cemetery property, commodities, services, or goods that are delivered right after they are paid for.

This law states that any rules in this article do not affect arrangements, contracts, or plans related to the issuance of securities if they have already been approved, or will be approved, by the state's Commissioner of Financial Protection and Innovation.

Funeral homes must provide a copy of any pre-paid funeral agreement to the deceased's next of kin or the person responsible for funeral arrangements. This agreement can be delivered in person, by mail, or fax, depending on what is agreed upon. If the funeral home fails to do this knowingly, they could face a fine which is either three times the pre-paid amount or $1,000, whichever is larger.

This law requires funeral homes in California, which are either exempt from filing annual preneed trust reports or included in another combined report, to file a declaration of nonreporting status every year by May 1. This declaration must also be submitted if the business changes ownership or closes. It needs to be on a specific form from the bureau and include the reason for exemption and details about any special preneed arrangements. The document must be verified by a high-ranking person at the funeral home, like the owner or president.