SB1312 - Cemeteries.

Amended IN Assembly August 21, 2026 Amended IN Assembly August 13, 2026 Amended IN Assembly June 18, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1312 Introduced by Senator Richardson February 20, 2026 An act to amend Sections 7612.2 and 7612.6 of, and to add Sections 7604 and 7653.10 to, of the Business and Professions Code, and to amend Section 8250 of, 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 SB 1312, as amended, Richardson. Cemeteries. (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. (2) Existing Existing law defines specified terms for purposes of the Cemetery and Funeral Act and the general regulation of cemeteries, but provides, however, that these definitions do not apply if expressly stated otherwise. Existing law states that the definitions and specified provisions that regulate cemeteries are inapplicable to religious corporations, a public cemetery, or any private or fraternal burial park, as specified. This bill would also make the definitions and regulation of cemeteries described above inapplicable to any California nonprofit public benefit corporation that manages the continued care and maintenance of an abandoned endowment care cemetery that oversees or performs interments pursuant to prepaid burial contracts and does not enter into any new contracts for the sale of new burial spaces to consumers, as specified. (3) (2) 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 fund, as specified. This 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 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. (4) (3) Existing law generally regulates cemeteries, including private cemeteries. Existing law, however, makes provisions that regulate private cemeteries inapplicable to any religious corporations, public cemeteries, or private or fraternal burial parks, as specified. This bill would also make provisions that regulate private cemeteries inapplicable to any California nonprofit public benefit corporation that manages the continued care and maintenance of an abandoned endowment care cemetery that oversees or performs interments pursuant to prepaid burial contracts, and does not enter into any new contracts for the sale of new burial spaces to consumers, as specified. (5) (4) Existing law authorizes a city or county having a nonendowment care cemetery within its boundaries that 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 that 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 define “abandoned endowment care cemetery” to mean a cemetery that was formerly licensed, as specified, that meets other specified criteria, including that the bureau has conserved the endowment care fund and the property is negatively impacting the public health, safety, or welfare, as specified. The bill would require a county, if it determines that an endowment care cemetery has been abandoned, to provide the owner of the property 90 days’ written notice to correct the health, safety, or welfare concerns it has identified. If, after 90 days, those concerns have not been corrected, the bill would require the county to declare the property an abandoned endowment care cemetery and ownership of the real property may be transferred to the county and promptly be recorded in the records of the county. This bill would require that, within 3 years of the transfer of title, the county take title to any remaining endowment care funds of the prior cemetery authority held by the bureau, and of all necessary books, records, property, and assets, which shall be placed in a special fund within the county treasury and only be expended on care, maintenance, or embellishment of the abandoned endowment care cemetery. The bill would authorize the county to transfer the care and management of an abandoned endowment care cemetery to a California nonprofit public benefit corporation, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text 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 1. Section 7612.2 of the Business and Professions Code is amended to read: 7612.2. This article does not apply to any of the following: (a) A religious corporation, church, religious society or denomination, a corporation sole administering temporalities of any church or religious society or denomination, or any cemetery organized, controlled, and operated by any of them. (b) A public cemetery. (c) Any private or fraternal burial park not exceeding 10 acres in area, established prior to September 19, 1939; however, (1) those cemeteries shall be subject to the cemetery brokerage provisions of this act, and (2) any cemetery shall be subject to all of the provisions of this act if it collects a care, maintenance, or embellishment deposit or sets up a trust for burial purposes pursuant to Section 8775 of the Health and Safety Code, including funeral services such as mortuary, cremation, or other commodities or services furnished at the time of and in connection with that funeral or cremation. (d) Any California nonprofit public benefit corporation that manages the continued care and maintenance of an abandoned endowment care cemetery pursuant to Section 8833 of the Health and Safety Code, that oversees or performs interments pursuant to prepaid burial contracts, and does not enter into any new contracts for the sale of new burial spaces to consumers. SEC. 3. 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 annually, on or before June 1, or within five months after close of their 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. 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) Pursue a mutually agreed upon 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 t [Text truncated for display. Full text available on Congress.gov.]