2023 California Code › Business and Professions Code - BPC › DIVISION 3 - PROFESSIONS AND VOCATIONS GENERALLY › CHAPTER 12 - Cemetery and Funeral Act › ARTICLE 9 - Preneed Funeral Arrangements › Section 7737.1.

7737.1. (a) (1) For purposes of Section 7737, a funeral establishment that intends to cease engaging in business operations, as authorized under this chapter, by reason of dissolution, closure, sale, or revocation and that intends to transfer its preneed funeral agreements to a licensed successor funeral establishment, pursuant to subdivision (c) of Section 7737, shall provide written notice, as described in paragraph (2), at least 60 days prior to the cessation of operations to both of the following:
(A) The beneficiaries or trustors, or legal representatives of the beneficiaries or trustors, of the preneed funeral agreements associated with the funeral establishment ceasing business operations.
(B) The trustees holding the preneed funeral trusts associated with the preneed funeral agreements.
(2) The notice provided pursuant to paragraph (1) shall meet all of the following requirements:
(A) The notice shall be on a form created by the bureau pursuant to Section 7737.2.
(B) The notice shall inform the recipients that their preneed funeral agreements will be transferred and fulfilled by the licensed successor funeral establishment.
(C) The notice shall inform the beneficiaries or trustees, or their legal representatives, that they may cancel their agreement up to 60 days after receipt of the notice by contacting the trustee, the funeral establishment ceasing business operations, or the licensed successor funeral establishment.
(3) The funeral establishment ceasing business operations shall provide the bureau with a copy of the notice provided pursuant to this paragraph and with a list of all preneed funeral agreements transferred to the licensed successor funeral establishment prior to the cessation of business operations.
(4) (A) The funeral establishment ceasing business operations shall provide the licensed successor funeral establishment with a copy of the notice provided, and proof that the notice was provided, to the beneficiaries or trustees, or their legal representatives, prior to the cessation of business operations.
(B) The licensed successor funeral establishment shall retain a copy of the notice provided, and proof that the notice was provided, to the beneficiaries or trustors, or their legal representatives, and provide a copy of both to the bureau upon the bureau’s request.
(C) The proof required by this paragraph shall be in compliance with the regulations adopted by the bureau pursuant to Section 7737.2.
(b) (1) For purposes of Section 7737, a funeral establishment that intends to cease engaging in business operations, as authorized under this chapter, by reason of dissolution, closure, sale, or revocation without a transfer of the preneed funeral agreements to a licensed, successor funeral establishment shall give written notice, as described in paragraph (2), at least 60 days prior to the cessation of operations to all of the following:
(A) The bureau.
(B) The beneficiaries or trustors of the preneed funeral agreements associated with the original funeral establishment.
(C) The trustees holding the preneed funeral trusts associated with the preneed funeral agreements.
(2) The notice provided pursuant to paragraph (1) shall meet all of the following requirements:
(A) The notice shall be on a form created by the bureau pursuant to Section 7737.2.
(B) The notice shall inform the recipients that their preneed funeral agreements will be canceled and the funds, including the accrued income, will be escheated to the state unless the beneficiary or trustor informs the trustee in writing within six months of receiving the notice that they wish those funds to be returned to them.
(c) This section shall become operative on January 1, 2023.
(Added by Stats. 2021, Ch. 514, Sec. 3. (AB 293) Effective January 1, 2022. Operative January 1, 2023, by its own provisions.)