AB 2332 — Preneed funeral arrangements: unclaimed property.

Summary

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 regulation of cemeteries, crematoria, funeral establishments, and their personnel. Existing law requires all securities purchased by, and all money received from, the trustor, as defined, for deposit in trust to be placed in trust within 30 days of receipt by the funeral establishment pursuant to a trust agreement executed by the funeral establishment, the trustor, and the trustee. Existing law requires the trustee, upon the signature of a majority of the trustees, to deliver the corpus of the trust and any income accrued in trust, as specified. Existing law specifies that a willful violation of the act is a crime. Existing law, the Unclaimed Property Law, provides that all intangible personal property maintained in a deposit or account, and the income or increment on that property held in a fiduciary capacity for the benefit of another that has remained unclaimed by the owner for more than 3 years escheats to the state. Under existing law, a person who claims to have been the owner, as defined, of property paid or delivered to the Controller under that law may file a claim to the property or to the net proceeds from its sale. Existing law requires to Controller to consider each claim, as specified, to determine if the claimant is the owner. This bill, commencing January 1, 2022, would recast provisions of the Cemetery and Funeral Act to permit the corpus of the trust and any income accrued in the trust, including interest, dividends, and capital gains, to escheat to the state, in accordance with the Unclaimed Property Law, if for more than 3 years after the funds became payable and distributable, as defined, to the funeral establishment or the trustor, the beneficiary or trustor has not corresponded electronically or in writing concerning the property or otherwise indicated an interest. The bill would require a funeral establishment to report and pay or deliver all unclaimed preneed funeral trust funds, including the corpus of the trust, together with any income accrued, less a revocation fee, to the Controller, as specified. This bill would also specify that all funds maintained in a preneed funeral trust held by a trustee for a funeral establishment that has been dissolved, sold, closed, or had its license revoked shall be returned to the beneficiary, trustor, or the legal representative of either the beneficiary or trustor within 30 days of providing specified written notice to the trustee according to specified procedures, if the funeral establishment does not transfer its preneed funeral agreements, or within 30 days of the beneficiary, trustor, or legal representative canceling the preneed funeral agreement according to specified procedures, if the funeral establishment transfers its agreements. The bill would also provide that if that person cannot be located or, in the case of a funeral establishment that does not transfer its preneed funeral agreements, if that person does not provide written direction to the trustee to return the funds to them within 6 months of receiving specified notice, the funds escheat to the state in accordance with the Unclaimed Property Law, as specified. The bill would make other conforming changes. This bill would require, commencing January 1, 2022, a funeral establishment that intends to cease engaging in business operations pursuant to the act by reason of dissolution, closure, sale, or revocation to also send notices to the bureau, beneficiaries or trustors, or their legal representatives, and trustees of preneed funeral agreements, as provided. The bill would require the notices to include specified information depending on whether the funeral establishment plans to transfer or not transfer its agreements to a licensed successor funeral establishment. The bill would require the notices to be sent on forms developed by the bureau and would require the bureau to develop the forms by January 1, 2022. The bill would also require the bureau to adopt and post on their internet website, by January 1, 2022, regulations regarding the type of proof the funeral establishment ceasing operations and the licensed successor funeral establishment are required to retain or provide, as specified. Because this bill would change the definition of a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Amended 08/06/20 - Amended Senate Current pdf August 06, 2020
• Amended 07/23/20 - Amended Senate pdf July 23, 2020
• Amended 05/04/20 - Amended Assembly pdf May 04, 2020
• Introduced 02/14/20 - Introduced pdf February 14, 2020
• AB2332 View text html

Action History

1. August 20, 2020

   In committee: Held under submission.

2. August 13, 2020

   In committee: Referred to APPR. suspense file.

3. August 10, 2020

   From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (August 8). Re-referred to Com. on APPR.

4. August 06, 2020

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D.

5. July 23, 2020

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D.

6. July 01, 2020

   Referred to Com. on B., P. & E.D.

7. June 11, 2020

   In Senate. Read first time. To Com. on RLS. for assignment.

8. June 10, 2020

   Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4761.)

9. June 04, 2020

   Read second time. Ordered to third reading.

10. June 03, 2020

    From committee: Do pass. (Ayes 18. Noes 0.) (June 3).

11. June 02, 2020

    In committee: Set, first hearing. Referred to APPR. suspense file.

12. May 12, 2020

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 11). Re-referred to Com. on APPR.

13. May 05, 2020

    Re-referred to Com. on JUD.

14. May 04, 2020

    From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.

15. March 16, 2020

    In committee: Hearing postponed by committee.

16. March 02, 2020

    Referred to Coms. on JUD. and B. & P.

17. February 15, 2020

    From printer. May be heard in committee March 16.

18. February 14, 2020

    Read first time. To print.

Sponsors

• Ash Kalra · Primary
• McCarty · Cosponsor

Votes

Subjects