Section 2334.4 - Reversion to Net Income Distribution Method(a) The bureau shall require, after sixty (60) days' notice, that a cemetery authority that has converted its endowment care fund from a net income distribution method to a unitrust distribution method to revert to the net income distribution method for any of the reasons set forth in Section 8726.2(e)(3) of the Health and Safety Code.(b) Written notice of the bureau's requirement that the cemetery authority revert to the net income distribution method will be mailed to the cemetery authority licensee's address of record and will include the reasons for the requirement to revert to the net income distribution method and the effective date of the reversion. The effective date of reversion may be in the current or the subsequent calendar year or a fiscal year that has been approved by the bureau as set forth in Section 7612.7 of the Code.(c) After the 60-day time period set forth in subsection (a) has passed, the bureau may require a cemetery authority to show satisfactory proof of reversion. Proof of reversion must be provided within fourteen (14) days of the date of the bureau's written request for such proof. For the purposes of this section, "satisfactory proof" means the documents or other written information, including a new proposed trust instrument, or amendment(s) thereto, showing the cemetery authority's endowment care fund reversion to the net income distribution method.(d) It shall constitute unprofessional conduct under Section 7711.1 of the Code for a cemetery authority to fail to comply with the bureau's notice requiring the cemetery authority to revert to the use of the net income distribution method or to refuse to provide the satisfactory proof of reversion required by this section.(e) A cemetery authority that reverts to the net income distribution method and seeks to reconvert its endowment care fund to the unitrust distribution method shall submit a new application pursuant to Section 2334 and receive approval from the bureau as provided in Section 2334.1 prior to conversion.Cal. Code Regs. Tit. 16, § 2334.4
1. New section filed 1-5-2022; operative 1-5-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 1). Note: Authority cited: Section 7606, Business and Professions Code. Reference: Sections 7612.6, 7613.9 and 7711.1, Business and Professions Code; and Sections 8726.2 and 8736, Health and Safety Code.
1. New section filed 1-5-2022; operative 1/5/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 1).