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FISCAL NOTE
Senate Bill 131
Committee: Fiscal Responsibility and Economic DevelopentSponsor: Senator Vivian Figures
Analyst: Tiffany Weaver Date: 04/05/2023
Senate Bill 131 as introduced would (1) decrease the administrative obligations of the
Department of Insurance by transitioningthe powers, duties, and functions of the Department
relating to the regulation of endowment care, preneed sales contracts, and the licensing of
preneed sales agents to the Alabama Board of Funeral Service and; (2) decrease receipts to the
Insurance Department Fund by an estimated $230,000 annually from receipts for preneed
service fees and audit revenues. This bill will also decrease potential receipts to the State
General Fund from fines levied by the Department. For fiscal years 2018-2022, the average
amount collected from fines related to preneed services and deposited annually into the State
General Fund was $25,000.
In addition, this bill will increase the administrative and financial obligations of the Board by a
board-estimated: (1) $830,000 annually for the regulation of endowment care, preened sales
contracts and the licensing of preneed sales agents; (2) $10,000 to update the Board's current
database system to allow the public to search for preneed contracts and; (3) $8,500 annually to
increase the board membership by five additional members.
The increase in obligations of the Board may be offset, wholly or in part, by; (1) $300,000
transferred annually by the Department to defray cost associated with the administration and
operations of the provisions of this bill for fiscal years 2024-2027 unless extended by the
Legislature; (2) initial and renewal application fees and other fees authorized or revised by this
bill, which range from a minimum of $33 annually to a maximum of $198 by an undetermined
amount dependent upon the level at which the Board establishes each application fee and the
number of licensees or applicants and; (2) fees for special audits, charged by the Board as
authorized by this bill, by an undetermined amount dependent upon the cost of the audit and the
prorated compensation of board employees involved in the audit. FN-W3SR9E-1
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Also, this bill could increase receipts to the State General Fund and municipal general funds
from fines; increase receipts to the State General Fund, county general funds, municipal general
funds, and other funds to which court costs are deposited; and could increase the obligations of
the State General Fund, local jails, the district attorneys, the Department of Corrections, Bureau
of Pardons and Paroles, and community corrections programs by an undetermined amount
dependent upon the number of persons charged with and convicted of the offenses provided by
this bill and the penalties imposed.