AB 293 — 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, 2023, 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 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. In the case of a funeral establishment that does not transfer its preneed funeral agreements, the bill would provide that if that person cannot be located or 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, 2023, a funeral establishment that intends to cease engaging in business operations 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, 2023. The bill would require the bureau to adopt and post on its internet website, by January 1, 2023, regulations regarding the type of proof the funeral establishment ceasing operations and the licensed successor funeral establishment are required to retain or provide. 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

• Chaptered 10/05/21 - Chaptered Current pdf October 05, 2021
• Enrolled 09/08/21 - Enrolled pdf September 08, 2021
• Introduced 01/21/21 - Introduced pdf January 21, 2021
• AB293 View text html

Action History

1. October 05, 2021

   Chaptered by Secretary of State - Chapter 514, Statutes of 2021.

2. October 05, 2021

   Approved by the Governor.

3. September 10, 2021

   Enrolled and presented to the Governor at 4 p.m.

4. September 03, 2021

   In Assembly. Ordered to Engrossing and Enrolling.

5. September 03, 2021

   Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2389.).

6. August 31, 2021

   Ordered to special consent calendar.

7. August 26, 2021

   Read second time. Ordered to third reading.

8. August 26, 2021

   From committee: Do pass. (Ayes 7. Noes 0.) (August 26).

9. August 16, 2021

   In committee: Referred to suspense file.

10. July 07, 2021

    From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (July 6). Re-referred to Com. on APPR.

11. June 21, 2021

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0.) (June 21). Re-referred to Com. on JUD.

12. June 09, 2021

    Referred to Coms. on B., P. & E.D. and JUD.

13. May 28, 2021

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

14. May 27, 2021

    Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1626.)

15. May 24, 2021

    Read second time. Ordered to third reading.

16. May 20, 2021

    From committee: Do pass. (Ayes 16. Noes 0.) (May 20).

17. April 21, 2021

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

18. April 14, 2021

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (April 13). Re-referred to Com. on APPR.

19. March 23, 2021

    From committee: Do pass and re-refer to Com. on B. & P. with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (March 23). Re-referred to Com. on B. & P.

20. January 28, 2021

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

21. January 22, 2021

    From printer. May be heard in committee February 21.

22. January 21, 2021

    Read first time. To print.

Sponsors

• McCarty · Cosponsor
• Ash Kalra · Primary

Votes

Subjects