California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 12 - Cemetery and Funeral Bureau › Article 8 - Preneed Funds and Disclosure of Preneed Agreements › Section 1269 - Reporting of Pre-Need Funeral Trust Funds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each licensed funeral establishment and
				licensed funeral director who enters into any pre-need arrangements, contracts
				or plans described in and subject to the provisions of Article 9, Chapter 12,
				Division 3 of the Business and Professions Code shall file with the bureau
				annually on or before May 1 of each year and upon transfer of license or
				cessation of business, a written, verified or audited report, on form 21 P-4A
				(1/94) prescribed and furnished by the bureau, pertaining to funds received and
				held under such arrangements, contracts or plans. Firms utilizing a fiscal year
				accounting system may request permission, in writing to the bureau chief to
				file said report on a fiscal year basis and, if permission is granted, said
				report shall then be filed with the bureau no later than one hundred twenty
				(120) days from the date of the close of said fiscal year.
(b) The report required under this Article
				shall accompany the forms of assignment or transfer of a funeral establishment
				license. The report required hereunder upon cessation of business as a licensed
				funeral establishment shall be submitted thirty (30) days prior to such
				cessation of business.
(c) In cases
				where trust corpus is deposited in individual savings accounts, and not
				commingled for investment purposes, the bureau may require a verified report.
				Said requirement of verification shall be deemed complied with by a
				verification under penalty of perjury by the owner, partners, or, in the case
				of a corporation, by the president or vice-president and one (1) other officer
				thereof and, in addition thereto, all reports must contain a verification under
				penalty of perjury executed by at least two (2) trustees not employed by the
				funeral establishment and, in the case of a banking institution or trust
				company legally authorized to act as a trustee within the meaning of Section
				7736 of Article 9, Chapter 12,
				Division 3, of the Business and Professions Code, a verification under penalty
				of perjury on behalf of such trustee by an authorized representative of said
				trustee.
(d) In cases where trust
				funds have been commingled for purposes of investment, the bureau may require,
				in addition to the written report required by subsection (a) of this section,
				an independent audit report prepared and signed by a Certified Public
				Accountant or Public Accountant, currently licensed in the State of California,
				which certifies compliance with the provisions of Article 9, Chapter 12,
				Division 3 of the Business and Professions Code and the provisions of this
				Article.
(e) All written reports
				required under this section shall include, but are not limited to, a statement
				setting forth:
(1) Amounts collected pursuant
				to pre-need arrangements, contracts or plans, or any agreements collateral
				thereto;
(2) Amounts deposited with
				the trustee and held in trust;
(3)
				Amounts of authorized expenditures of income allocable to individual accounts,
				itemized as to the nature of expenditures;
(4) Amount of authorized expenditures of
				income paid, itemized as to the nature of expenditure; and
(5) Separately, the total amount of such
				trust funds invested in each of the investments authorized by law and the
				amount of cash on hand not invested which statement actually show the financial
				condition of the trust funds.