2022 Summary of Regulations

California Code of Regulations Section 2334 (Adopted)

Section 2334 was adopted to set forth the timeframe, required contents of, and documents required to be submitted with a "Unitrust Conversion Application," and incorporates the form by reference. It also provides a process for applicants to use when relevant trust documents are not available, and allows the Bureau discretion to condition approval on the applicant's provision of the relevant trust documents within a certain timeframe and revoke the conditional approval after notice and potential hearing. It also requires a completed application to be submitted at least 90 days prior to the beginning of the cemetery authority's reporting year for which the conversion is requested.

California Code of Regulations Section 2334 (Amended)

Section 2334 was amended to modify the application question regarding the requirement for the applicant to possess work experience investing and managing an endowment care fund under the unitrust distribution method, and instead to only require the applicant to possess work experience investing and managing an endowment care fund in Section C of the application.

California Code of Regulations Section 2334.1 (Adopted)

Section 2334.1 was adopted to establish the requirement for cemeteries to obtain prior approval for, and specify the timing of, the endowment care fund conversion to the unitrust distribution method.

California Code of Regulations Section 2334.2 (Adopted)

Section 2334.2 was adopted to establish the denial, written notice, and appeal process for the endowment care fund conversion to the unitrust distribution method, including opportunities for an informal office conference and informal hearing.

California Code of Regulations Section 2334.3 (Adopted)

Section 2334.3 was adopted to establish the abandonment date for unitrust conversion applications that are returned as incomplete. In addition, this section provides that an applicant who abandons an application must submit a new application and documents to obtain the Bureau's approval.

California Code of Regulations Section 2334.4 (Adopted)

Section 2334.4 was adopted to establish the process for requiring a cemetery authority to revert an endowment care fund to the net income distribution method, including options for the effective date of reversion. It set standards for notifying the cemetery authority of the requirement to revert and specifies what the Bureau determines is "satisfactory proof" of reversion, as well as the response date for providing the Bureau such proof. It establishes that it constitutes unprofessional conduct to fail to comply with the Bureau's notice requiring the cemetery authority to revert, or to refuse to provide the "satisfactory proof" of reversion as specified by this section. Finally, it specifies that a cemetery authority that has reverted to net income distribution and seeks to reconvert its endowment care fund to the unitrust method shall submit a new application and receive Bureau approval prior to conversion.

California Code of Regulations Section 2350 (Amended)

Section 2350 was amended to separate it into two subdivisions to clarify existing regulatory language. Subdivision (a) corrects the terminology and citations of the existing regulation which pertains to the annual report requirements pursuant to BPC section 7612.6(b) and includes other technical and grammatical clean-up. It added a requirement for the audit report to be signed by a licensed independent certified public accountant or public accountant and added text to clarify that the report must fully and accurately disclose the financial position of the endowment care fund. It also replaced the language pertaining to disclaimers or qualifications affecting the rendering of an opinion in the report from "independent" to "unmodified".

Subdivision (b) lists the additional information that must be provided with the endowment care fund report when the cemetery authority is using the unitrust distribution method including any information that has been created, updated, or changed since the Bureau's approval. It also replaces outdated codes.