AL
Alabama Senate Bill SB131

Alabama 2023 Regular Session

Alabama Senate Bill SB131 Compare Versions

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1-SB131ENROLLED
1+SB131INTRODUCED
22 Page 0
3-D78YTH-3
4-By Senators Figures, Gudger, Jones, Hatcher, Williams,
5-Sessions, Scofield, Butler, Barfoot, Singleton, Shelnutt,
6-Smitherman
3+D78YTH-1
4+By Senator Figures
75 RFD: Fiscal Responsibility and Economic Development
86 First Read: 22-Mar-23
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11+5 D78YTH-1 03/21/2023 KMS (L) cr 2023-1068
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17-Enrolled, An Act,
18-Relating to the Alabama Board of Funeral Service; to
19-amend Section 34-13-1, as amended by Act 2022-339, 2022
20-Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22,
21-Sections 34-13-23 and 34-13-27, as amended by Act 2022-339,
22-2022 Regular Session, Code of Alabama 1975, to rename the
23-Alabama Board of Funeral Service as the Alabama Board of
24-Funeral Services and to provide further for definitions and
25-the membership of the board; to add Article 5 to Chapter 13,
26-Title 34, Code of Alabama 1975, by amending and renumbering
27-Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25,
28-inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to
29-27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172,
30-inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to
31-34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive,
32-Code of Alabama 1975; to establish the Alabama Preneed Funeral
33-and Cemetery Act of 2023; to transfer the existing Preneed
34-Funeral and Cemetery Act, and the regulation of preneed
35-contracts, from the Commissioner and Department of Insurance
36-to the Alabama Board of Funeral Service; to authorize the
37-Department of Insurance to temporarily transfer certain funds
38-to the board to defray costs associated with the
39-administration and operation of the Alabama Preneed Funeral
40-and Cemetery Act of 2023; and in connection therewith would
41-have as its purpose or effect the requirement of a new or
42-increased expenditure of local funds within the meaning of
13+SYNOPSIS:
14+Under existing law, the Alabama Board of Funeral
15+Service licenses and regulates funeral establishments,
16+funeral directors, and embalmers.
17+This bill would provide further for definitions
18+and the membership of the board.
19+This bill would also establish the Alabama
20+Preneed Funeral and Cemetery Act of 2023 and would
21+transfer the regulation of preneed contracts pursuant
22+to the Preneed Funeral and Cemetery Act from the
23+Commissioner and the Department of Insurance to the
24+board.
25+This bill would authorize the Department of
26+Insurance to temporarily transfer certain funds to the
27+Alabama Board of Funeral Service to defray costs
28+associated with the administration and operation of the
29+Alabama Preneed Funeral and Cemetery Act of 2023.
30+Section 111.05 of the Constitution of Alabama of
31+2022, prohibits a general law whose purpose or effect
32+would be to require a new or increased expenditure of
33+local funds from becoming effective with regard to a
34+local governmental entity without enactment by a 2/3
35+vote unless: it comes within one of a number of
36+specified exceptions; it is approved by the affected
37+entity; or the Legislature appropriates funds, or
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72-Section 111.05 of the Constitution of Alabama of 2022.
73-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
74-Section 1. Sections 34-13-1, as amended by Act
75-2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21,
76-and 34-13-22, and Sections 34-13-23 and 34-13-27, as amended
77-by Act 2022-339, 2022 Regular Session, of the Code of Alabama
78-1975, are amended to read as follows:
79-"§34-13-1
80-(a) For purposes of this chapter, the following terms
81-have the following meanings:
82-(1) ACCREDITED SCHOOL or COLLEGE OF MORTUARY SCIENCE. A
83-school or college approved by the American Board of Funeral
84-Service Education, or a successor organization, which
85-maintains a course of instruction of not less than 48 calendar
86-weeks or four academic quarters or college terms and which
87-gives a course of instruction in the fundamental subjects
88-related to funeral service and mortuary science education as
89-approved by the American Board of Funeral Service Education,
90-or a successor organization, and other courses of instruction
91-in fundamental subjects as may be prescribed by the Alabama
92-Board of Funeral Service.
93-(2) ALKALINE HYDROLYSIS. The technical process that
94-reduces human remains to bone fragments using heat, water, and
95-chemical agents.
96-(3) ALTERNATIVE CONTAINER. A nonmetal receptacle or
97-enclosure, without ornamentation or a fixed interior lining,
98-which is designed for the encasement of human remains and
99-which is made of cardboard, pressed-wood, composition
67+provides a local source of revenue, to the entity for
68+the purpose.
69+The purpose or effect of this bill would be to
70+require a new or increased expenditure of local funds
71+within the meaning of the amendment. However, the bill
72+does not require approval of a local governmental
73+entity or enactment by a 2/3 vote to become effective
74+because it comes within one of the specified exceptions
75+contained in the amendment.
76+A BILL
77+TO BE ENTITLED
78+AN ACT
79+Relating to the Alabama Board of Funeral Service; to
80+amend Section 34-13-1, as amended by Act 2022-339, 2022
81+Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22,
82+Sections 34-13-23 and 34-13-27, as amended by Act 2022-339,
83+2022 Regular Session, Code of Alabama 1975, to rename the
84+Alabama Board of Funeral Service as the Alabama Board of
85+Funeral Services and to provide further for definitions and
86+the membership of the board; to add Article 5 to Chapter 13,
87+Title 34, Code of Alabama 1975, by amending and renumbering
88+Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25,
89+inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to
90+27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172,
91+inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to
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129-materials, with or without an outside covering, pouches of
130-canvas, or other materials.
131-(3)(4) AMERICAN BOARD OF FUNERAL SERVICE EDUCATION. The
132-national academic accreditation agency for college and
133-university programs in funeral service and mortuary science
134-education. The accrediting function of the American Board of
135-Funeral Service Education is recognized by the United States
136-Department of Education and the Council on Higher Education
137-Accreditation.
138-(4)(5) APPRENTICE EMBALMER or EMBALMER'S APPRENTICE.
139-Any person engaged in the study of the art of embalming under
140-the instructions and supervision of a licensed embalmer
141-practicing in this state.
142-(5)(6) APPRENTICE FUNERAL DIRECTOR or FUNERAL
143-DIRECTOR'S APPRENTICE. Any person operating under or in
144-association with a funeral director for the purpose of
145-learning the business or profession of funeral director, to
146-the end that he or she may become licensed under this chapter.
147-(7) AT NEED. At the time of death or immediately
148-following death.
149-(6)(8) AUTHORIZING AGENT. A person at least 18 years of
150-age, except in the case of a surviving spouse or parent, who
151-is legally entitled to order the cremation or final
152-disposition of particular human remains.
153-(9) BASIC SERVICES FEE. The fee for the professional
154-services of the funeral director and staff that is added to
155-the total cost of the funeral arrangements. The term includes
156-a charge for services performed in conducting the arrangements
121+34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive,
122+Code of Alabama 1975; to establish the Alabama Preneed Funeral
123+and Cemetery Act of 2023; to transfer the existing Preneed
124+Funeral and Cemetery Act, and the regulation of preneed
125+contracts, from the Commissioner and Department of Insurance
126+to the Alabama Board of Funeral Service; to authorize the
127+Department of Insurance to temporarily transfer certain funds
128+to the board to defray costs associated with the
129+administration and operation of the Alabama Preneed Funeral
130+and Cemetery Act of 2023; and in connection therewith would
131+have as its purpose or effect the requirement of a new or
132+increased expenditure of local funds within the meaning of
133+Section 111.05 of the Constitution of Alabama of 2022.
134+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
135+Section 1. Sections 34-13-1, as amended by Act
136+2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21,
137+and 34-13-22, and Sections 34-13-23 and 34-13-27, as amended
138+by Act 2022-339, 2022 Regular Session, of the Code of Alabama
139+1975, are amended to read as follows:
140+"§34-13-1
141+(a) For purposes of this chapter, the following terms
142+have the following meanings:
143+(1) ACCREDITED SCHOOL or COLLEGE OF MORTUARY SCIENCE. A
144+school or college approved by the American Board of Funeral
145+Service Education, or a successor organization, which
146+maintains a course of instruction of not less than 48 calendar
147+weeks or four academic quarters or college terms and which
148+gives a course of instruction in the fundamental subjects
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186-conference, planning the funeral, securing the necessary
187-permits, preparing the notices, and coordinating the cemetery
188-or crematory arrangements.
189-(10) BELOW-GROUND CRYPT. A preplaced enclosed chamber,
190-usually constructed of reinforced concrete, poured in place or
191-a precast unit installed in quantity, either side-by-side or
192-multiple depth, and covered by earth or sod and known also as
193-a lawn crypt or turf-top crypt.
194-(11) BENEFICIARY. One who benefits from an act, such as
195-one for whom a preneed contract is entered into or the
196-successor-in-interest of a life insurance policy.
197-(7)(12) BOARD. The Alabama Board of Funeral Service.
198-(13) BRANCH. Any person or entity that is part of a
199-common business enterprise that has a certificate of authority
200-issued pursuant to Article 5 and elects to operate under a
201-name other than that of the common business enterprise.
202-(14) BURIAL. The placement of human remains in a grave
203-space or lawn crypt.
204-(8)(15) CASH ADVANCE ITEMS. Any item of service or
205-merchandise described to a purchaser using the term cash
206-advance, accommodation, cash disbursement, or similar term. A
207-cash advance item is also any item obtained from a third party
208-and paid for by a funeral provider on behalf of a purchaser.
209-Cash advance items include, but are not limited to, all of the
210-following:
211-a. Cemetery or crematory services.
212-b. Pallbearers.
213-c. Public or other transportation.
178+related to funeral service and mortuary science education as
179+approved by the American Board of Funeral Service Education,
180+or a successor organization, and other courses of instruction
181+in fundamental subjects as may be prescribed by the Alabama
182+Board of Funeral Service.
183+(2) ALKALINE HYDROLYSIS. The technical process that
184+reduces human remains to bone fragments using heat, water, and
185+chemical agents.
186+(3) ALTERNATIVE CONTAINER. A nonmetal receptacle or
187+enclosure, without ornamentation or a fixed interior lining,
188+which is designed for the encasement of human remains and
189+which is made of cardboard, pressed-wood, composition
190+materials, with or without an outside covering, pouches of
191+canvas, or other materials.
192+(3)(4) AMERICAN BOARD OF FUNERAL SERVICE EDUCATION. The
193+national academic accreditation agency for college and
194+university programs in funeral service and mortuary science
195+education. The accrediting function of the American Board of
196+Funeral Service Education is recognized by the United States
197+Department of Education and the Council on Higher Education
198+Accreditation.
199+(4)(5) APPRENTICE EMBALMER or EMBALMER'S APPRENTICE.
200+Any person engaged in the study of the art of embalming under
201+the instructions and supervision of a licensed embalmer
202+practicing in this state.
203+(5)(6) APPRENTICE FUNERAL DIRECTOR or FUNERAL
204+DIRECTOR'S APPRENTICE. Any person operating under or in
205+association with a funeral director for the purpose of
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243-d. Clergy honoraria.
244-e. Flowers.
245-f. Musicians or singers.
246-g. Nurses.
247-h. Obituary notices.
248-i. Funeral programs.
249-j. Gratuities.
250-k. Death certificates.
251-l. Outer burial containers.
252-m. Cemetery plots.
253-n. Escorts.
254-(9)(16) CASKET. A rigid container designed for the
255-encasement of human remains which is usually constructed of
256-wood, metal, or similar material and ornamented and lined with
257-fabric.
258-(10)(17) CEMETERY. A place established, maintained,
259-managed, operated, or improved which is dedicated to and used
260-or intended to be used for the permanent interment of human
261-remains and their memorialization . It may be either land or
262-earth interment; a columbarium; a mausoleum for vault or crypt
263-entombment; a structure or place used or intended to be used
264-for the interment of cremated remains; cryogenic storage; or
265-any combination of one or more thereof.
266-(11)(18) CEMETERY AUTHORITY. Any individual, person,
267-firm, profit or nonprofit corporation, trustee, partnership,
268-society, religious society, church association or
269-denomination, municipality, or other group or entity, however
270-organized, insofar as they or any of them may now or hereafter
235+learning the business or profession of funeral director, to
236+the end that he or she may become licensed under this chapter.
237+(7) AT NEED. At the time of death or immediately
238+following death.
239+(6)(8) AUTHORIZING AGENT. A person at least 18 years of
240+age, except in the case of a surviving spouse or parent, who
241+is legally entitled to order the cremation or final
242+disposition of particular human remains.
243+(9) BASIC SERVICES FEE. The fee for the professional
244+services of the funeral director and staff that is added to
245+the total cost of the funeral arrangements. The term includes
246+a charge for services performed in conducting the arrangements
247+conference, planning the funeral, securing the necessary
248+permits, preparing the notices, and coordinating the cemetery
249+or crematory arrangements.
250+(10) BELOW-GROUND CRYPT. A preplaced enclosed chamber,
251+usually constructed of reinforced concrete, poured in place or
252+a precast unit installed in quantity, either side-by-side or
253+multiple depth, and covered by earth or sod and known also as
254+a lawn crypt or turf-top crypt.
255+(11) BENEFICIARY. One who benefits from an act, such as
256+one for whom a preneed contract is entered into or the
257+successor-in-interest of a life insurance policy.
258+(7)(12) BOARD. The Alabama Board of Funeral Service.
259+(13) BRANCH. Any person or entity that is part of a
260+common business enterprise that has a certificate of authority
261+issued pursuant to Article 5 and elects to operate under a
262+name other than that of the common business enterprise.
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300-establish, own, operate, lease, control, or manage one or more
301-cemeteries, burial parks, mausoleums, columbariums, or any
302-combination or variation thereof, or hold lands or structures
303-for burial grounds or burial purposes in this state and engage
304-in the operation of a cemetery, including any one or more of
305-the following: The care and maintenance of a cemetery; the
306-interment, entombment, and memorialization of the human dead
307-in a cemetery; the sale, installation, care, maintenance, or
308-any combination thereof, with respect of monuments, markers,
309-foundations, memorials, burial vaults, urns, crypts,
310-mausoleums, columbariums, flower vases, floral arrangements,
311-and other cemetery accessories for installation or use within
312-a cemetery; and the supervision and conduct of funeral and
313-burial services within the bounds of the cemetery.
314-(19) CEMETERY MERCHANDISE. Any personal property
315-offered for sale, contracted for sale, or sold for use in
316-connection with the burial, final disposition,
317-memorialization, interment, entombment, or inurnment of human
318-remains by a cemetery authority. The term specifically
319-includes, but is not limited to, the casket, the alternative
320-container, the outer burial container, and the memorial , and
321-interment rights .
322-(20) CEMETERY SERVICES. At need or preneed services
323-provided by a cemetery authority for interment, entombment,
324-inurnment, and installation of cemetery merchandise.
325-(21) CERTIFICATE HOLDER. A funeral establishment,
326-cemetery authority, third-party seller, or any other person to
327-whom a valid certificate of authority to sell preneed
292+(14) BURIAL. The placement of human remains in a grave
293+space or lawn crypt.
294+(8)(15) CASH ADVANCE ITEMS. Any item of service or
295+merchandise described to a purchaser using the term cash
296+advance, accommodation, cash disbursement, or similar term. A
297+cash advance item is also any item obtained from a third party
298+and paid for by a funeral provider on behalf of a purchaser.
299+Cash advance items include, but are not limited to, all of the
300+following:
301+a. Cemetery or crematory services.
302+b. Pallbearers.
303+c. Public or other transportation.
304+d. Clergy honoraria.
305+e. Flowers.
306+f. Musicians or singers.
307+g. Nurses.
308+h. Obituary notices.
309+i. Funeral programs.
310+j. Gratuities.
311+k. Death certificates.
312+l. Outer burial containers.
313+m. Cemetery plots.
314+n. Escorts.
315+(9)(16) CASKET. A rigid container designed for the
316+encasement of human remains which is usually constructed of
317+wood, metal, or similar material and ornamented and lined with
318+fabric.
319+(10)(17) CEMETERY. A place established, maintained,
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357-contracts has been granted by the board.
358-(22) COLUMBARIUM. A structure or room or space in a
359-building or structure used or intended to be used for the
360-inurnment of cremated remains.
361-(12)(23) CONVICTION. The entry of a plea of guilty or a
362-guilty verdict rendered by any court of competent
363-jurisdiction, excluding traffic violations.
364-(13)(24) CREMATED REMAINS. Human remains recovered
365-after the completion of the cremation process, including
366-pulverization, which leaves only bone fragments reduced to
367-unidentifiable dimensions, and the residue of any foreign
368-materials that were cremated with the human remains.
369-(25) CREMATED REMAINS CONTAINER. A receptacle in which
370-cremated remains are placed.
371-(14)(26) CREMATION. The technical irreversible process,
372-using heat, flames, or chemical agents, that reduces human
373-remains to bone fragments. The reduction takes place through
374-heat and evaporation. Cremation shall include the processing,
375-and may include the pulverization, of the bone fragments.
376-Cremation is a process and is a method of final disposition.
377-(15)(27) CREMATIONIST. A person licensed by the board
378-to perform the procedure of cremation.
379-(16)(28) CREMATION CHAMBER. The retort or vessel used
380-to reduce human remains to bone fragments.
381-(17)(29) CREMATION CONTAINER. The container in which
382-human remains are transported to a crematory, in which human
383-remains are placed upon arrival at a crematory, or for storage
384-and placement in a cremation chamber for cremation.
349+managed, operated, or improved which is dedicated to and used
350+or intended to be used for the permanent interment of human
351+remains and their memorialization . It may be either land or
352+earth interment; a columbarium; a mausoleum for vault or crypt
353+entombment; a structure or place used or intended to be used
354+for the interment of cremated remains; cryogenic storage; or
355+any combination of one or more thereof.
356+(11)(18) CEMETERY AUTHORITY. Any individual, person,
357+firm, profit or nonprofit corporation, trustee, partnership,
358+society, religious society, church association or
359+denomination, municipality, or other group or entity, however
360+organized, insofar as they or any of them may now or hereafter
361+establish, own, operate, lease, control, or manage one or more
362+cemeteries, burial parks, mausoleums, columbariums, or any
363+combination or variation thereof, or hold lands or structures
364+for burial grounds or burial purposes in this state and engage
365+in the operation of a cemetery, including any one or more of
366+the following: The care and maintenance of a cemetery; the
367+interment, entombment, and memorialization of the human dead
368+in a cemetery; the sale, installation, care, maintenance, or
369+any combination thereof, with respect of monuments, markers,
370+foundations, memorials, burial vaults, urns, crypts,
371+mausoleums, columbariums, flower vases, floral arrangements,
372+and other cemetery accessories for installation or use within
373+a cemetery; and the supervision and conduct of funeral and
374+burial services within the bounds of the cemetery.
375+(19) CEMETERY MERCHANDISE. Any property offered for
376+sale, contracted for sale, or sold for use in connection with
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414-(18)(30) CREMATORY. A building or portion of a building
415-that houses a cremation chamber and that may house a holding
416-facility for purposes of cremation and as part of a funeral
417-establishment.
418-(31) CREMATORY AUTHORITY. Any person who owns or
419-controls a crematory.
420-(32) DEATH CERTIFICATE. A legal document containing
421-vital statistics pertaining to the life and death of the
422-deceased.
423-(33) DECEASED or DECEDENT. One who is no longer living.
424-(19)(34) EMBALMER. Any person engaged, or holding
425-himself or herself out as engaged, in the business, practice,
426-science, or profession of embalming, whether on his or her own
427-behalf or in the employ of a registered and licensed funeral
428-director.
429-(20)(35) EMBALMING. The practice, science, or
430-profession, as commonly practiced, of preserving,
431-disinfecting, and preparing by application of chemicals or
432-other effectual methods, human dead for burial, cremation, or
433-transportation.
434-(36) ENCASEMENT. The placement of human remains in a
435-rigid container including, but not limited to, a casket or
436-urn.
437-(37) ENDOWMENT CARE. The maintenance and repair of all
438-places in a cemetery, subject to the rules of the cemetery
439-authority. The term may also be referred to as endowed care,
440-perpetual care, improvement care, or permanent care.
441-(38) ENDOWMENT CARE TRUST FUND. An irrevocable trust
406+the burial, final disposition, memorialization, interment,
407+entombment, or inurnment of human remains by a cemetery
408+authority. The term specifically includes, but is not limited
409+to, the casket, the alternative container, the outer burial
410+container, the memorial, and interment rights.
411+(20) CEMETERY SERVICES. At need or preneed services
412+provided by a cemetery authority for interment, entombment,
413+inurnment, and installation of cemetery merchandise.
414+(21) CERTIFICATE HOLDER. A funeral establishment,
415+cemetery authority, third-party seller, or any other person to
416+whom a valid certificate of authority to sell preneed
417+contracts has been granted by the board.
418+(22) COLUMBARIUM. A structure or room or space in a
419+building or structure used or intended to be used for the
420+inurnment of cremated remains.
421+(12)(23) CONVICTION. The entry of a plea of guilty or a
422+guilty verdict rendered by any court of competent
423+jurisdiction, excluding traffic violations.
424+(13)(24) CREMATED REMAINS. Human remains recovered
425+after the completion of the cremation process, including
426+pulverization, which leaves only bone fragments reduced to
427+unidentifiable dimensions, and the residue of any foreign
428+materials that were cremated with the human remains.
429+(25) CREMATED REMAINS CONTAINER. A receptacle in which
430+cremated remains are placed.
431+(14)(26) CREMATION. The technical irreversible process,
432+using heat, flames, or chemical agents, that reduces human
433+remains to bone fragments. The reduction takes place through
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471-fund set aside by law with a trustee, along with the income
472-therefrom, to provide for the endowment care of a cemetery.
473-(39) ENTOMBMENT. The act of placing human remains in a
474-mausoleum crypt.
475-(40) FINAL DISPOSITION. The lawful disposal of human
476-remains whether by interment, cremation, or other method.
477-(21)(41) FUNERAL. A ceremony for celebrating,
478-sanctifying, or remembering the life of a person who has died.
479-A funeral may be divided into the following two parts:
480-a. The funeral service, which may take place at a
481-funeral home, church, or other place.
482-b. The committal service or disposition, which may take
483-place by the grave, tomb, mausoleum, or crematory where the
484-body of the decedent is to be buried or cremated.
485-(22)(42) FUNERAL ARRANGEMENTS. The completing of
486-funeral service arrangements, cremation arrangements, and the
487-financial details of a funeral at the time of death. The term
488-includes the collection of vital statistic information, death
489-certificate information, obituary and funeral notice
490-completion, the completion of a statement of funeral goods and
491-services selected, organizing of funeral and memorial services
492-for families, and the ordering of cash advance items.
493-(43) FUNERAL BENEFICIARY. The person or persons who
494-will receive the benefit of the funeral and cemetery goods and
495-services to be delivered under a preneed contract at the time
496-of his, her, or their death.
497-(23)(44) FUNERAL DIRECTING. The practice of directing
498-or supervising funerals, the practice of preparing dead human
463+heat and evaporation. Cremation shall include the processing,
464+and may include the pulverization, of the bone fragments.
465+Cremation is a process and is a method of final disposition.
466+(15)(27) CREMATIONIST. A person licensed by the board
467+to perform the procedure of cremation.
468+(16)(28) CREMATION CHAMBER. The retort or vessel used
469+to reduce human remains to bone fragments.
470+(17)(29) CREMATION CONTAINER. The container in which
471+human remains are transported to a crematory, in which human
472+remains are placed upon arrival at a crematory, or for storage
473+and placement in a cremation chamber for cremation.
474+(18)(30) CREMATORY. A building or portion of a building
475+that houses a cremation chamber and that may house a holding
476+facility for purposes of cremation and as part of a funeral
477+establishment.
478+(31) CREMATORY AUTHORITY. Any person who owns or
479+controls a crematory.
480+(32) DEATH CERTIFICATE. A legal document containing
481+vital statistics pertaining to the life and death of the
482+deceased.
483+(33) DECEASED or DECEDENT. One who is no longer living.
484+(19)(34) EMBALMER. Any person engaged, or holding
485+himself or herself out as engaged, in the business, practice,
486+science, or profession of embalming, whether on his or her own
487+behalf or in the employ of a registered and licensed funeral
488+director.
489+(20)(35) EMBALMING. The practice, science, or
490+profession, as commonly practiced, of preserving,
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528-bodies for burial by means other than embalming, or the
529-preparation for the final disposition of dead human bodies;
530-the making of funeral arrangements or providing for funeral
531-services or the making of financial arrangements for the
532-rendering of these services; the provision or maintenance of a
533-place for the preparation for final disposition of dead human
534-bodies; the use of the terms funeral director, undertaker,
535-mortician, funeral parlor, or any other term from which can be
536-implied the practice of funeral directing; or the holding out
537-to the public that one is a funeral director or engaged in a
538-practice described in this subdivision.
539-(24)(45) FUNERAL DIRECTOR. A person required to be
540-licensed to practice the profession of funeral directing under
541-the laws of this state, who consults with the public, who
542-plans details of funeral services with members of the family
543-and minister or any other person responsible for such
544-planning, or who directs, is in charge, or apparent charge of,
545-and supervises funeral service in a funeral home, church, or
546-other place; who enters into the making, negotiation, or
547-completion of financial arrangements for funeral services, or
548-who uses in connection with the profession of funeral
549-directing the terms funeral director, undertaker, funeral
550-counselor, mortician, or any other term or picture or
551-combination thereof when considered in context in which used,
552-from which can be implied the practicing of the profession of
553-funeral directing or that the person using such term or
554-picture can be implied to be holding himself or herself out to
555-the public as being engaged in the profession of funeral
520+disinfecting, and preparing by application of chemicals or
521+other effectual methods, human dead for burial, cremation, or
522+transportation.
523+(36) ENCASEMENT. The placement of human remains in a
524+rigid container including, but not limited to, a casket or
525+urn.
526+(37) ENDOWMENT CARE. The maintenance and repair of all
527+places in a cemetery, subject to the rules of the cemetery
528+authority. The term may also be referred to as endowed care,
529+perpetual care, improvement care, or permanent care.
530+(38) ENDOWMENT CARE TRUST FUND. An irrevocable trust
531+fund set aside by law with a trustee, along with the income
532+therefrom, to provide for the endowment care of a cemetery.
533+(39) ENTOMBMENT. The act of placing human remains in a
534+mausoleum crypt.
535+(40) FINAL DISPOSITION. The lawful disposal of human
536+remains whether by interment, cremation, or other method.
537+(21)(41) FUNERAL. A ceremony for celebrating,
538+sanctifying, or remembering the life of a person who has died.
539+A funeral may be divided into the following two parts:
540+a. The funeral service, which may take place at a
541+funeral home, church, or other place.
542+b. The committal service or disposition, which may take
543+place by the grave, tomb, mausoleum, or crematory where the
544+body of the decedent is to be buried or cremated.
545+(22)(42) FUNERAL ARRANGEMENTS. The completing of
546+funeral service arrangements, cremation arrangements, and the
547+financial details of a funeral at the time of death. The term
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585-directing; and for all purposes under Alabama law, a funeral
586-director is considered a professional. For the purposes of
587-this chapter, the term does not include any cemetery
588-authority.
589-(25)(46) FUNERAL ESTABLISHMENTS. The term includes any
590-funeral home or mortuary service located at a specific street
591-address where the profession of funeral directing, embalming,
592-or cremation is practiced in the care, planning, and
593-preparation for burial, cremation, or transportation of human
594-dead. A funeral establishment shall consist of and maintain
595-all of the following facilities:
596-a. A preparation room equipped with sanitary nonporous
597-floor and wall and necessary drainage and ventilation, and
598-containing operating embalming equipment, necessary approved
599-tables, instruments, hot and cold running water, containers or
600-receptacles for soiled linen or clothing, and supplies for the
601-preparation and embalming of dead human bodies for burial,
602-cremation, and transportation.
603-b. A display room containing a stock of adult caskets
604-and funeral supplies displayed in full size, cuts,
605-photographs, or electronic images. At no time shall less than
606-eight different adult size caskets be on the premises.
607-c. At least one operating funeral coach or hearse
608-properly licensed and equipped for transporting human remains
609-in a casket or urn.
610-d. If engaged in the practice of cremation, the
611-establishment shall satisfy all crematory requirements
612-provided in this chapter and have on site an adequate supply
577+includes the collection of vital statistic information, death
578+certificate information, obituary and funeral notice
579+completion, the completion of a statement of funeral goods and
580+services selected, organizing of funeral and memorial services
581+for families, and the ordering of cash advance items.
582+(43) FUNERAL BENEFICIARY. The person or persons who
583+will receive the benefit of the funeral and cemetery goods and
584+services to be delivered under a preneed contract at the time
585+of his, her, or their death.
586+(23)(44) FUNERAL DIRECTING. The practice of directing
587+or supervising funerals, the practice of preparing dead human
588+bodies for burial by means other than embalming, or the
589+preparation for the final disposition of dead human bodies;
590+the making of funeral arrangements or providing for funeral
591+services or the making of financial arrangements for the
592+rendering of these services; the provision or maintenance of a
593+place for the preparation for final disposition of dead human
594+bodies; the use of the terms funeral director, undertaker,
595+mortician, funeral parlor, or any other term from which can be
596+implied the practice of funeral directing; or the holding out
597+to the public that one is a funeral director or engaged in a
598+practice described in this subdivision.
599+(24)(45) FUNERAL DIRECTOR. A person required to be
600+licensed to practice the profession of funeral directing under
601+the laws of this state, who consults with the public, who
602+plans details of funeral services with members of the family
603+and minister or any other person responsible for such
604+planning, or who directs, is in charge, or apparent charge of,
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642-of urns for display and sale.
643-e. A room suitable for public viewing or other funeral
644-services that is a minimum of 1,000 square feet.
645-f. An office for holding arrangement conferences with
646-relatives or authorizing agents.
647-(47) FUNERAL SERVICE. At need or preneed services
648-provided by a funeral establishment in connection with funeral
649-directing, final disposition of human remains, or installation
650-of memorials.
651-(26)(48) FUNERAL SUPPLIES or FUNERAL MERCHANDISE. Any
652-item offered for sale, contracted for sale, or sold for use in
653-connection with funeral directing or funeral services when
654-sold by a funeral director including, but not limited to,
655-caskets, alternative containers, outer burial containers,
656-urns, memorials, clothing used to dress human dead when sold
657-by a funeral director, and all equipment and accoutrements
658-normally required for the preparation for burial or funeral
659-and other disposition of human dead.
660-(49) GRAVE SPACE. A space of ground in a cemetery that
661-is used or intended to be used for in-ground burial.
662-(27)(50) GROSS IMMORALITY. Willful, flagrant, or
663-shameful immorality or showing a moral indifference to the
664-opinions of the good and respectable members of the community
665-and to the just obligations of the position held by the
666-offender.
667-(28)(51) HOLDING ROOM. Either of the following:
668-a. A room within a funeral establishment that satisfies
669-the requirements of a branch location as provided in this
634+and supervises funeral service in a funeral home, church, or
635+other place; who enters into the making, negotiation, or
636+completion of financial arrangements for funeral services, or
637+who uses in connection with the profession of funeral
638+directing the terms funeral director, undertaker, funeral
639+counselor, mortician, or any other term or picture or
640+combination thereof when considered in context in which used,
641+from which can be implied the practicing of the profession of
642+funeral directing or that the person using such term or
643+picture can be implied to be holding himself or herself out to
644+the public as being engaged in the profession of funeral
645+directing; and for all purposes under Alabama law, a funeral
646+director is considered a professional. For the purposes of
647+this chapter, the term does not include any cemetery
648+authority.
649+(25)(46) FUNERAL ESTABLISHMENTS. The term includes any
650+funeral home or mortuary service located at a specific street
651+address where the profession of funeral directing, embalming,
652+or cremation is practiced in the care, planning, and
653+preparation for burial, cremation, or transportation of human
654+dead. A funeral establishment shall consist of and maintain
655+all of the following facilities:
656+a. A preparation room equipped with sanitary nonporous
657+floor and wall and necessary drainage and ventilation, and
658+containing operating embalming equipment, necessary approved
659+tables, instruments, hot and cold running water, containers or
660+receptacles for soiled linen or clothing, and supplies for the
661+preparation and embalming of dead human bodies for burial,
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699-chapter or board rule, for the retention of human remains
700-before final disposition.
701-b. A room within a crematory facility, designated for
702-the retention of human remains before and after cremation,
703-that is not accessible to the public.
704-(52) HUMAN REMAINS. The body of a decedent in any stage
705-of decomposition, including cremated remains.
706-(53) INTERMENT. The final disposition of human remains
707-by burial, burial at sea, entombment, or inurnment.
708-(54) INTERMENT RIGHT. The right to inter human remains
709-in a particular interment space in a cemetery.
710-(55) INTERMENT SPACE. A space intended for the final
711-disposition of human remains including, but not limited to, a
712-grave space, mausoleum crypt, niche, and below-ground crypt.
713-(56) INURNMENT. The act of placing cremated remains in
714-a receptacle including, but not limited to, an urn and
715-depositing it in a niche.
716-(57) LICENSEE. Any individual, firm, corporation,
717-partnership, joint venture, or limited liability company which
718-obtains a license, certificate, or registration in accordance
719-with this chapter.
720-(29)(58) MANAGING CREMATIONIST. A licensed funeral
721-director and cremationist who has full charge, control, and
722-supervision of all activities involving cremation at a funeral
723-establishment or crematory.
724-(30)(59) MANAGING EMBALMER. A licensed embalmer who has
725-full charge, control, and supervision of all activities
726-involving the preparation room and embalming.
691+cremation, and transportation.
692+b. A display room containing a stock of adult caskets
693+and funeral supplies displayed in full size, cuts,
694+photographs, or electronic images. At no time shall less than
695+eight different adult size caskets be on the premises.
696+c. At least one operating funeral coach or hearse
697+properly licensed and equipped for transporting human remains
698+in a casket or urn.
699+d. If engaged in the practice of cremation, the
700+establishment shall satisfy all crematory requirements
701+provided in this chapter and have on site an adequate supply
702+of urns for display and sale.
703+e. A room suitable for public viewing or other funeral
704+services that is a minimum of 1,000 square feet.
705+f. An office for holding arrangement conferences with
706+relatives or authorizing agents.
707+(47) FUNERAL SERVICE. At need or preneed services
708+provided by a funeral establishment in connection with funeral
709+directing, final disposition of human remains, or installation
710+of memorials.
711+(26)(48) FUNERAL SUPPLIES or FUNERAL MERCHANDISE. Any
712+item offered for sale, contracted for sale, or sold for use in
713+connection with funeral directing or funeral services when
714+sold by a funeral director including, but not limited to,
715+caskets, alternative containers, outer burial containers,
716+urns, memorials, clothing used to dress human dead when sold
717+by a funeral director, and all equipment and accoutrements
718+normally required for the preparation for burial or funeral
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756-(31)(60) MANAGING FUNERAL DIRECTOR. A licensed funeral
757-director who has full charge, control, and supervision of all
758-activities involving funeral directing for a funeral
759-establishment.
760-(61) MAUSOLEUM. A chamber or structure used or intended
761-to be used for entombment.
762-(62) MAUSOLEUM CRYPT. A chamber of a mausoleum of
763-sufficient size for entombment of human remains.
764-(63) MEMORIAL. Any product, other than a mausoleum or
765-columbarium, used for identifying an interment space or for
766-commemoration of the life, deeds, or career of some decedent
767-including, but not limited to, a monument, marker, niche
768-plate, urn garden plaque, crypt plate, cenotaph, marker bench,
769-and vase.
770-(64) MEMORIAL RETAILER. Any person offering or selling
771-memorials at retail to the public.
772-(65) MEMORIALIZATION. Any permanent system designed to
773-mark or record the names and other data pertaining to a
774-decedent.
775-(32)(66) MORAL TURPITUDE. Any unlawful sexual or
776-violent act, or any act involving theft, theft of services,
777-theft by deception, extortion, receiving stolen property,
778-identity theft, forgery, fraud, tampering with records,
779-bribery, perjury, or any similar act in any jurisdiction.
780-(33)(67) MORTUARY SCIENCE. The scientific,
781-professional, and practical aspects, with due consideration
782-given to accepted practices, covering the care, preparation
783-for burial, or transportation of dead human bodies, which
748+and other disposition of human dead.
749+(49) GRAVE SPACE. A space of ground in a cemetery that
750+is used or intended to be used for in-ground burial.
751+(27)(50) GROSS IMMORALITY. Willful, flagrant, or
752+shameful immorality or showing a moral indifference to the
753+opinions of the good and respectable members of the community
754+and to the just obligations of the position held by the
755+offender.
756+(28)(51) HOLDING ROOM. Either of the following:
757+a. A room within a funeral establishment that satisfies
758+the requirements of a branch location as provided in this
759+chapter or board rule, for the retention of human remains
760+before final disposition.
761+b. A room within a crematory facility, designated for
762+the retention of human remains before and after cremation,
763+that is not accessible to the public.
764+(52) HUMAN REMAINS. The body of a decedent in any stage
765+of decomposition, including cremated remains.
766+(53) INTERMENT. The final disposition of human remains
767+by burial, burial at sea, entombment, or inurnment.
768+(54) INTERMENT RIGHT. The right to inter human remains
769+in a particular interment space in a cemetery.
770+(55) INTERMENT SPACE. A space intended for the final
771+disposition of human remains including, but not limited to, a
772+grave space, mausoleum crypt, niche, and below-ground crypt.
773+(56) INURNMENT. The act of placing cremated remains in
774+a receptacle including, but not limited to, an urn and
775+depositing it in a niche.
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813-shall include the preservation and sanitation of the bodies
814-and restorative art and those aspects related to public
815-health, jurisprudence, and good business administration.
816-(34)(68) MORTUARY SERVICE. A location with a specific
817-street address where embalming or cremation, or both, is
818-practiced for a licensed funeral establishment and where no
819-services or merchandise are sold directly or at retail to the
820-public. A mortuary service shall consist of and maintain all
821-of the following facilities:
822-a. A preparation room equipped with sanitary nonporous
823-floor and walls, operating embalming equipment, and necessary
824-drainage and ventilation and containing necessary approved
825-tables, instruments, hot and cold running water, containers or
826-receptacles for soiled linen or clothing, and supplies for the
827-preparation and embalming of dead human bodies for burial,
828-cremation, and transportation.
829-b. At least one operating motor vehicle properly
830-licensed and equipped for transporting human remains in a
831-casket or urn.
832-c. If engaged in the practice of cremation, the
833-establishment shall satisfy all requirements for a crematory
834-provided in this chapter.
835-(69) NICHE. A space usually within a columbarium used
836-or intended to be used for inurnment of cremated remains.
837-(35)(70) OPERATOR. A person, corporation, firm, legal
838-representative, managing funeral director, general manager, or
839-other organization owning or operating a funeral establishment
840-or cemetery.
805+(57) LICENSEE. Any individual, firm, corporation,
806+partnership, joint venture, or limited liability company which
807+obtains a license, certificate, or registration in accordance
808+with this chapter.
809+(29)(58) MANAGING CREMATIONIST. A licensed funeral
810+director and cremationist who has full charge, control, and
811+supervision of all activities involving cremation at a funeral
812+establishment or crematory.
813+(30)(59) MANAGING EMBALMER. A licensed embalmer who has
814+full charge, control, and supervision of all activities
815+involving the preparation room and embalming.
816+(31)(60) MANAGING FUNERAL DIRECTOR. A licensed funeral
817+director who has full charge, control, and supervision of all
818+activities involving funeral directing for a funeral
819+establishment.
820+(61) MAUSOLEUM. A chamber or structure used or intended
821+to be used for entombment.
822+(62) MAUSOLEUM CRYPT. A chamber of a mausoleum of
823+sufficient size for entombment of human remains.
824+(63) MEMORIAL. Any product, other than a mausoleum or
825+columbarium, used for identifying an interment space or for
826+commemoration of the life, deeds, or career of some decedent
827+including, but not limited to, a monument, marker, niche
828+plate, urn garden plaque, crypt plate, cenotaph, marker bench,
829+and vase.
830+(64) MEMORIAL RETAILER. Any person offering or selling
831+memorials at retail to the public.
832+(65) MEMORIALIZATION. Any permanent system designed to
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870-(71) OUTER BURIAL CONTAINER. A rigid container that is
871-designed for placement in the grave space around the casket or
872-the urn including, but not limited to, containers commonly
873-known as burial vaults, grave boxes, and grave liners.
874-(72) PERSON. Any individual, firm, corporation,
875-partnership, joint venture, limited liability company,
876-association, trustee, government or governmental subdivision,
877-agency, or other entity, or any combination thereof.
878-(36)(73) PRACTICAL EMBALMER. Any person who has been
879-actively and continuously engaged or employed in the practice
880-of embalming under the supervision of a licensed embalmer for
881-four consecutive years immediately preceding May 1, 1975, and
882-has been issued a license as a practical embalmer under the
883-grandfather provisions of this chapter.
884-(74) PREARRANGEMENT. The term applied to completing the
885-details for selection of merchandise or services on a preneed
886-basis, which may or may not include prefunding or prepayment.
887-(75) PREDEVELOPED. Designated areas or buildings within
888-a cemetery that have been mapped and planned for future
889-construction but are not yet completed.
890-(76) PREDEVELOPED INTERMENT SPACE. An interment space
891-that is planned for future construction but is not yet
892-completed.
893-(77) PREFUND. The term applied to completing the
894-financial details of a prearrangement, which include
895-prefunding or prepayment.
896-(78) PRENEED. Any time prior to death.
897-(79) PRENEED CONTRACT. A written contract to purchase
862+mark or record the names and other data pertaining to a
863+decedent.
864+(32)(66) MORAL TURPITUDE. Any unlawful sexual or
865+violent act, or any act involving theft, theft of services,
866+theft by deception, extortion, receiving stolen property,
867+identity theft, forgery, fraud, tampering with records,
868+bribery, perjury, or any similar act in any jurisdiction.
869+(33)(67) MORTUARY SCIENCE. The scientific,
870+professional, and practical aspects, with due consideration
871+given to accepted practices, covering the care, preparation
872+for burial, or transportation of dead human bodies, which
873+shall include the preservation and sanitation of the bodies
874+and restorative art and those aspects related to public
875+health, jurisprudence, and good business administration.
876+(34)(68) MORTUARY SERVICE. A location with a specific
877+street address where embalming or cremation, or both, is
878+practiced for a licensed funeral establishment and where no
879+services or merchandise are sold directly or at retail to the
880+public. A mortuary service shall consist of and maintain all
881+of the following facilities:
882+a. A preparation room equipped with sanitary nonporous
883+floor and walls, operating embalming equipment, and necessary
884+drainage and ventilation and containing necessary approved
885+tables, instruments, hot and cold running water, containers or
886+receptacles for soiled linen or clothing, and supplies for the
887+preparation and embalming of dead human bodies for burial,
888+cremation, and transportation.
889+b. At least one operating motor vehicle properly
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927-funeral merchandise, funeral services, cemetery merchandise,
928-or cemetery services from the seller on a preneed basis.
929-(80) PRENEED CONTRACT TRUST FUND. The funds received
930-pursuant to a preneed contract which are required by law to be
931-held in trust until the merchandise or services purchased
932-pursuant to the contract are delivered or provided or until
933-otherwise lawfully withdrawn.
934-(81) PRENEED SALES AGENT. A person who is in the
935-business of selling preneed contracts.
936-(37)(82) PROCESSING or PULVERIZATION. The reduction of
937-identifiable bone fragments after the completion of the
938-cremation process to unidentifiable bone fragments or
939-granulated particles by manual or mechanical means.
940-(83) PROVIDER. The person, who may or may not be the
941-seller, who actually provides merchandise and services under
942-the terms of a preneed contract.
943-(84) PURCHASE PRICE. The amount paid by the purchaser
944-for merchandise and services purchased under a preneed
945-contract, exclusive of finance charges, sales tax, charges
946-relating to interment rights, arrangement conference fees, or
947-charges for credit life insurance.
948-(85) PURCHASER. The person who purchases a preneed
949-contract either on his or her behalf or on behalf of a
950-third-party beneficiary.
951-(86) RELIGIOUS INSTITUTION. An organization formed
952-primarily for religious purposes which has applied and
953-qualified for exemption from federal income tax as an exempt
954-organization under Section 501(c)(3) of the Internal Revenue
919+licensed and equipped for transporting human remains in a
920+casket or urn.
921+c. If engaged in the practice of cremation, the
922+establishment shall satisfy all requirements for a crematory
923+provided in this chapter.
924+(69) NICHE. A space usually within a columbarium used
925+or intended to be used for inurnment of cremated remains.
926+(35)(70) OPERATOR. A person, corporation, firm, legal
927+representative, managing funeral director, general manager, or
928+other organization owning or operating a funeral establishment
929+or cemetery.
930+(71) OUTER BURIAL CONTAINER. A rigid container that is
931+designed for placement in the grave space around the casket or
932+the urn including, but not limited to, containers commonly
933+known as burial vaults, grave boxes, and grave liners.
934+(72) PERSON. Any individual, firm, corporation,
935+partnership, joint venture, limited liability company,
936+association, trustee, government or governmental subdivision,
937+agency, or other entity, or any combination thereof.
938+(36)(73) PRACTICAL EMBALMER. Any person who has been
939+actively and continuously engaged or employed in the practice
940+of embalming under the supervision of a licensed embalmer for
941+four consecutive years immediately preceding May 1, 1975, and
942+has been issued a license as a practical embalmer under the
943+grandfather provisions of this chapter.
944+(74) PREARRANGEMENT. The term applied to completing the
945+details for selection of merchandise or services on a preneed
946+basis, which may or may not include prefunding or prepayment.
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984-Code of 1986, as amended.
985-(87) SCATTERING. The lawful dispersion of cremated
986-remains.
987-(88) SELLER. Any person offering or selling merchandise
988-or services on a preneed basis including, but not limited to,
989-funeral establishments, cemetery authorities, crematory
990-authorities, and memorial retailers.
991-(89) SPECIAL CARE. Any care provided, or to be
992-provided, that is supplemental to, or in excess of, endowment
993-care, in accordance with the specific directions of any donor
994-of funds for those purposes.
995-(90) SUCCESSOR-IN-INTEREST. A person who lawfully
996-follows another in ownership or control of property or rights.
997-(38)(91) TEMPORARY CONTAINER. A receptacle for cremated
998-remains, usually composed of cardboard, plastic, or similar
999-material, that can be closed in a manner that prevents the
1000-leakage or spillage of the cremated remains or the entrance of
1001-foreign material, and is a single container of sufficient size
1002-to hold the cremated remains until an urn is acquired or the
1003-cremated remains are scattered or buried.
1004-(92) THIRD-PARTY SELLER. Any person, who is not a
1005-funeral establishment or a cemetery authority, engaged in the
1006-sale of preneed funeral merchandise or cemetery merchandise.
1007-(93) TRUSTEE. Any person, state or national bank, trust
1008-company, or federally insured savings and loan association
1009-lawfully appointed as fiduciary over funds deposited by one or
1010-more purchasers of a preneed contract or deposited pursuant to
1011-an endowment care trust fund. The term does not refer to a
976+(75) PREDEVELOPED. Designated areas or buildings within
977+a cemetery that have been mapped and planned for future
978+construction but are not yet completed.
979+(76) PREDEVELOPED INTERMENT SPACE. An interment space
980+that is planned for future construction but is not yet
981+completed.
982+(77) PREFUND. The term applied to completing the
983+financial details of a prearrangement, which include
984+prefunding or prepayment.
985+(78) PRENEED. Any time prior to death.
986+(79) PRENEED CONTRACT. A written contract to purchase
987+funeral merchandise, funeral services, cemetery merchandise,
988+or cemetery services from the seller on a preneed basis.
989+(80) PRENEED CONTRACT TRUST FUND. The funds received
990+pursuant to a preneed contract which are required by law to be
991+held in trust until the merchandise or services purchased
992+pursuant to the contract are delivered or provided or until
993+otherwise lawfully withdrawn.
994+(81) PRENEED SALES AGENT. A person who is in the
995+business of selling preneed contracts.
996+(37)(82) PROCESSING or PULVERIZATION. The reduction of
997+identifiable bone fragments after the completion of the
998+cremation process to unidentifiable bone fragments or
999+granulated particles by manual or mechanical means.
1000+(83) PROVIDER. The person, who may or may not be the
1001+seller, who actually provides merchandise and services under
1002+the terms of a preneed contract.
1003+(84) PURCHASE PRICE. The amount paid by the purchaser
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1041-board of trustees.
1042-(39)(94) URN. A receptacle designed to encase cremated
1033+for merchandise and services purchased under a preneed
1034+contract, exclusive of finance charges, sales tax, charges
1035+relating to interment rights, arrangement conference fees, or
1036+charges for credit life insurance.
1037+(85) PURCHASER. The person who purchases a preneed
1038+contract either on his or her behalf or on behalf of a
1039+third-party beneficiary.
1040+(86) RELIGIOUS INSTITUTION. An organization formed
1041+primarily for religious purposes which has applied and
1042+qualified for exemption from federal income tax as an exempt
1043+organization under Section 501(c)(3) of the Internal Revenue
1044+Code of 1986, as amended.
1045+(87) SCATTERING. The lawful dispersion of cremated
10431046 remains.
1044-(b) Nothing in this chapter shall require a funeral
1045-director or funeral establishment to have or provide a chapel
1046-or to restrict the conduct of funeral services from a church
1047-or chapel."
1048-"§34-13-20
1049-(a) There is established the Alabama Board of Funeral
1050-Service Services, consisting of nine 14 members, each of whom
1051-shall be citizens of the United States and residents of the
1052-State of Alabama. The membership of the board shall be divided
1053-into two distinct divisions, the funeral division and the
1054-preneed division, with each division having jurisdiction over
1055-their respective areas of service.
1056-(b) The appointing authorities shall coordinate their
1057-appointments to assure board membership is inclusive and
1058-reflects the racial, gender, geographic, urban/rural urban,
1059-rural, and economic diversity of the state.
1060-(c)(1) Commencing on January 1, 2019, as the terms of
1061-the members serving on the board on August 1, 2017, expire,
1062-the membership of the funeral division of the board shall be
1063-reconstituted to consist of seven professional members and two
1064-consumer members.
1065-(1) Each professional member of the funeral division of
1066-the board shall be a citizen of the United States, a resident
1067-of Alabama, and licensed and in good standing with the board
1068-as an embalmer or funeral director at the time of appointment
1047+(88) SELLER. Any person offering or selling merchandise
1048+or services on a preneed basis including, but not limited to,
1049+funeral establishments, cemetery authorities, crematory
1050+authorities, and memorial retailers.
1051+(89) SPECIAL CARE. Any care provided, or to be
1052+provided, that is supplemental to, or in excess of, endowment
1053+care, in accordance with the specific directions of any donor
1054+of funds for those purposes.
1055+(90) SUCCESSOR-IN-INTEREST. A person who lawfully
1056+follows another in ownership or control of property or rights.
1057+(38)(91) TEMPORARY CONTAINER. A receptacle for cremated
1058+remains, usually composed of cardboard, plastic, or similar
1059+material, that can be closed in a manner that prevents the
1060+leakage or spillage of the cremated remains or the entrance of
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1098-and during the entire term of office. Professional members of
1099-the board shall be appointed by the Governor pursuant to
1100-subsection (e). As the terms of the members serving on the
1101-board on October 1, 2023, expire, the professional membership
1102-of the board shall be appointed to reflect the following:
1103-a. Four Three of the professional members of the board
1104-shall hold a current license from the board to practice
1105-embalming in the state, shall have been actively practicing
1106-embalming in the state for the last 10 consecutive years
1107-immediately preceding appointment, and shall be engaged in the
1108-practice of embalming at the time of appointment to the board.
1109-b. Three Four of the professional members of the board
1110-shall hold a current license from the board to practice
1111-funeral directing in the state, shall have been actively
1112-engaged in funeral directing in the state for the last 10
1113-consecutive years immediately preceding appointment, and shall
1114-be the operator of a funeral establishment in this state at
1115-the time of appointment to the board.
1116-(2) Commencing on October 1, 2023, the preneed division
1117-of the board shall be created to consist of four professional
1118-members and one consumer member. Two professional members
1119-shall be licensed funeral directors and two professional
1120-members shall be licensed preneed sales agents employed by a
1121-cemetery. Each professional member of the preneed division of
1122-the board shall hold a current license from the board to
1123-practice as a preneed sales agent, shall have been actively
1124-engaged in preneed sales or direct management of preneed sales
1125-in the state for the last five consecutive years immediately
1090+foreign material, and is a single container of sufficient size
1091+to hold the cremated remains until an urn is acquired or the
1092+cremated remains are scattered or buried.
1093+(92) THIRD-PARTY SELLER. Any person, who is not a
1094+funeral establishment or a cemetery authority, engaged in the
1095+sale of preneed funeral merchandise or cemetery merchandise.
1096+(93) TRUSTEE. Any person, state or national bank, trust
1097+company, or federally insured savings and loan association
1098+lawfully appointed as fiduciary over funds deposited by one or
1099+more purchasers of a preneed contract or deposited pursuant to
1100+an endowment care trust fund. The term does not refer to a
1101+board of trustees.
1102+(39)(94) URN. A receptacle designed to encase cremated
1103+remains.
1104+(b) Nothing in this chapter shall require a funeral
1105+director or funeral establishment to have or provide a chapel
1106+or to restrict the conduct of funeral services from a church
1107+or chapel."
1108+"§34-13-20
1109+(a) There is established the Alabama Board of Funeral
1110+Service Services, consisting of nine 14 members, each of whom
1111+shall be citizens of the United States and residents of the
1112+State of Alabama. The membership of the board shall be divided
1113+into two distinct divisions, the funeral division and the
1114+preneed division, with each division having jurisdiction over
1115+their respective areas of service.
1116+(b) The appointing authorities shall coordinate their
1117+appointments to assure board membership is inclusive and
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1155-preceding appointment, and shall be employed by a certificate
1156-of authority license holder in this state at the time of
1157-appointment to the board. Two of these professional members
1158-shall also hold a current certificate of authority to sell
1159-preneed services and merchandise. The initial appointment of
1160-two of the preneed sales agents appointed pursuant to this
1161-paragraph shall expire on December 31, 2025, and for the other
1162-two, shall expire on December 31, 2026. Thereafter, the
1163-preneed sales agent members shall serve pursuant to subsection
1164-(e). Professional members of the board shall be appointed by
1165-the Governor pursuant to subsection (e).
1166-(2)(3) Each consumer member of the board shall
1167-represent the public in general and shall have been a citizen
1168-of the United States and a resident of Alabama for the last 10
1169-consecutive years immediately preceding appointment and during
1170-the entire term of office. A consumer member of the board may
1171-not have held, nor currently hold, a license or certification
1172-issued by the board, be employed at any time by, or
1173-professionally or financially associated with, the holder of a
1174-license or certificate issued by the board, or be related
1175-within the third degree of consanguinity or affinity to the
1176-holder of a license or certificate issued by the board. One
1177-Two consumer member members of the board shall be appointed by
1178-the Lieutenant Governor and one consumer member shall be
1179-appointed by the Speaker of the House of Representatives
1180-pursuant to a procedure adopted by rule of the board.
1181-(d) Commencing in October of 2018, and each October
1182-thereafter of a year where at least one professional member
1147+reflects the racial, gender, geographic, urban/rural urban,
1148+rural, and economic diversity of the state.
1149+(c)(1) Commencing on January 1, 2019, as the terms of
1150+the members serving on the board on August 1, 2017, expire,
1151+the membership of the funeral division of the board shall be
1152+reconstituted to consist of seven professional members and two
1153+consumer members.
1154+(1) Each professional member of the funeral division of
1155+the board shall be a citizen of the United States, a resident
1156+of Alabama, and licensed and in good standing with the board
1157+as an embalmer or funeral director at the time of appointment
1158+and during the entire term of office. Professional members of
1159+the board shall be appointed by the Governor pursuant to
1160+subsection (e). As the terms of the members serving on the
1161+board on October 1, 2023, expire, the professional membership
1162+of the board shall be appointed to reflect the following:
1163+a. Four Three of the professional members of the board
1164+shall hold a current license from the board to practice
1165+embalming in the state, shall have been actively practicing
1166+embalming in the state for the last 10 consecutive years
1167+immediately preceding appointment, and shall be engaged in the
1168+practice of embalming at the time of appointment to the board.
1169+b. Three Four of the professional members of the board
1170+shall hold a current license from the board to practice
1171+funeral directing in the state, shall have been actively
1172+engaged in funeral directing in the state for the last 10
1173+consecutive years immediately preceding appointment, and shall
1174+be the operator of a funeral establishment in this state at
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1212-term on either division of the board has expired, or is vacant
1213-for any reason, all licensed funeral directors and licensed
1214-embalmers for a funeral division member, and all licensed
1215-preneed sales agents for a preneed division member, shall meet
1216-in Montgomery, at a time and place fixed by the respective
1217-division of the board, for the purpose of nominating and
1218-submitting the names of three licensed persons for each
1219-position on the board to the Governor. The Governor shall
1220-promptly appoint one of the three persons so nominated to
1221-serve as a professional member of the board.
1222-(e)(1) Professional and consumer members of the board
1223-shall serve staggered terms of four years each to provide
1224-continuity of service on the board. If an appointment is not
1225-made before the expiration of a term, the board member then
1226-serving may continue to serve until a successor has been
1227-appointed. A board member may not serve more than two full
1228-consecutive terms on the board.
1229-(2) A board member who is appointed to fill a vacancy
1230-which occurs before the expiration of the term of the vacating
1231-member shall serve the remaining portion of the term to which
1232-the former member was appointed. A vacancy on the board for
1233-any reason shall be filled by appointment of the Governor for
1234-the unexpired term. The appointee shall serve until his or her
1235-successor is nominated and appointed pursuant to subsection
1236-(d). If a member is appointed to fill an unexpired term of
1237-less than two years, the time may not be counted toward the
1238-maximum eight years of service.
1239-(3) Not more than Only one professional funeral
1204+the time of appointment to the board.
1205+(2) Commencing on October 1, 2023, the preneed division
1206+of the board shall be created to consist of four professional
1207+members and one consumer member. Two professional members
1208+shall be licensed funeral directors and two professional
1209+members shall be licensed preneed sales agents employed by a
1210+cemetery. Each professional member of the preneed division of
1211+the board shall hold a current license from the board to
1212+practice as a preneed sales agent, shall have been actively
1213+engaged in preneed sales or direct management of preneed sales
1214+in the state for the last five consecutive years immediately
1215+preceding appointment, and shall be employed by a certificate
1216+of authority license holder in this state at the time of
1217+appointment to the board. Two of these professional members
1218+shall also hold a current certificate of authority to sell
1219+preneed services and merchandise. The initial appointment of
1220+two of the preneed sales agents appointed pursuant to this
1221+paragraph shall expire on December 31, 2025, and for the other
1222+two, shall expire on December 31, 2026. Thereafter, the
1223+preneed sales agent members shall serve pursuant to subsection
1224+(e). Professional members of the board shall be appointed by
1225+the Governor pursuant to subsection (e).
1226+(2)(3) Each consumer member of the board shall
1227+represent the public in general and shall have been a citizen
1228+of the United States and a resident of Alabama for the last 10
1229+consecutive years immediately preceding appointment and during
1230+the entire term of office. A consumer member of the board may
1231+not have held, nor currently hold, a license or certification
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1269-division member and one professional preneed division member
1270-of the board a division may reside in the sameeach district
1271-as created by Section 34-13-21.
1272-(4) At each meeting where nominations are made for the
1273-professional members of the funeral division of the board,
1274-only one licensed funeral director or licensed embalmer
1275-employed by the same funeral establishment may vote. At each
1276-meeting where nominations are made for the professional
1277-members of the preneed division of the board, only one
1278-licensed preneed sales agent employed by the same certificate
1279-of authority holder may vote.
1280-(f)(1) In accordance with applicable law, in addition
1281-to a board member resigning from the board in writing, a board
1282-member may be removed from the board for any of the following
1283-grounds:
1284-a. The refusal or inability to perform board duties in
1285-an efficient, responsible, or professional manner.
1286-b. The misuse of his or her position on the board to
1287-obtain financial gain or seek personal advantage for himself,
1288-herself, or another person.
1289-c. A final adjudication or determination of guilt by
1290-any lawful authority of the board member or sanction of the
1291-board member for the violation of any law the board determines
1292-is substantially related to any practice governed by this
1293-chapter.
1294-d. The revocation or suspension of the license of a
1295-professional member of the board.
1296-(2) Any board member who fails to qualify after
1261+issued by the board, be employed at any time by, or
1262+professionally or financially associated with, the holder of a
1263+license or certificate issued by the board, or be related
1264+within the third degree of consanguinity or affinity to the
1265+holder of a license or certificate issued by the board. One
1266+Two consumer member members of the board shall be appointed by
1267+the Lieutenant Governor and one consumer member shall be
1268+appointed by the Speaker of the House of Representatives
1269+pursuant to a procedure adopted by rule of the board.
1270+(d) Commencing in October of 2018, and each October
1271+thereafter of a year where at least one professional member
1272+term on either division of the board has expired, or is vacant
1273+for any reason, all licensed funeral directors and licensed
1274+embalmers for a funeral division member, and all licensed
1275+preneed sales agents for a preneed division member, shall meet
1276+in Montgomery, at a time and place fixed by the respective
1277+division of the board, for the purpose of nominating and
1278+submitting the names of three licensed persons for each
1279+position on the board to the Governor. The Governor shall
1280+promptly appoint one of the three persons so nominated to
1281+serve as a professional member of the board.
1282+(e)(1) Professional and consumer members of the board
1283+shall serve staggered terms of four years each to provide
1284+continuity of service on the board. If an appointment is not
1285+made before the expiration of a term, the board member then
1286+serving may continue to serve until a successor has been
1287+appointed. A board member may not serve more than two full
1288+consecutive terms on the board.
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1326-appointment shall automatically become ineligible to serve as
1327-a member of the board and a new member, properly qualified,
1328-shall be appointed in the same manner as the original
1329-appointment and shall serve the remainder of the term of the
1330-vacating board member.
1331-(3) If a consumer board member fails to attend two or
1332-more meetings within a year, without a valid excuse as
1333-determined by the board, he or she shall be removed from the
1334-board. A new consumer board member shall be appointed in the
1335-same manner as the original appointment and shall serve the
1336-remainder of the term.
1337-(g)(1) The status of any person or entity properly
1338-licensed by the Alabama Board of Funeral Service on the
1339-effective date of this act shall continue under the Alabama
1340-Board of Funeral Services.
1341-(2) All the rights, duties, property, real or personal,
1342-and all other effects existing in the name of the Alabama
1343-Board of Funeral Service shall be transferred to the Alabama
1344-Board of Funeral Services. Any reference to the Alabama Board
1345-of Funeral Service in any existing law, contract, or other
1346-instrument, shall be deemed a reference to the Alabama Board
1347-of Funeral Services.
1348-(3) A reasonable transition period for the name change
1349-shall be allowed to permit an orderly and cost-effective
1350-transition, relating particularly to the use of equipment and
1351-supplies, all letterhead, business cards, forms, and any other
1352-materials in use by the board containing the name Alabama
1353-Board of Funeral Service shall continue to be used by the
1318+(2) A board member who is appointed to fill a vacancy
1319+which occurs before the expiration of the term of the vacating
1320+member shall serve the remaining portion of the term to which
1321+the former member was appointed. A vacancy on the board for
1322+any reason shall be filled by appointment of the Governor for
1323+the unexpired term. The appointee shall serve until his or her
1324+successor is nominated and appointed pursuant to subsection
1325+(d). If a member is appointed to fill an unexpired term of
1326+less than two years, the time may not be counted toward the
1327+maximum eight years of service.
1328+(3) Not more than Only one professional funeral
1329+division member and one professional preneed division member
1330+of the board a division may reside in the sameeach district
1331+as created by Section 34-13-21.
1332+(4) At each meeting where nominations are made for the
1333+professional members of the funeral division of the board,
1334+only one licensed funeral director or licensed embalmer
1335+employed by the same funeral establishment may vote. At each
1336+meeting where nominations are made for the professional
1337+members of the preneed division of the board, only one
1338+licensed preneed sales agent employed by the same certificate
1339+of authority holder may vote.
1340+(f)(1) In accordance with applicable law, in addition
1341+to a board member resigning from the board in writing, a board
1342+member may be removed from the board for any of the following
1343+grounds:
1344+a. The refusal or inability to perform board duties in
1345+an efficient, responsible, or professional manner.
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1383-Alabama Board of Funeral Services until the supplies are
1384-exhausted. Replacement supplies shall contain the name of the
1385-Alabama Board of Funeral Services.
1386-(4) The Code Commissioner, pursuant to Section 29-7-8,
1387-at times determined appropriate, shall implement this
1388-statutory name change in applicable sections of this code. "
1389-"§34-13-21
1390-There are created, for the purpose of this chapter,
1391-seven geographical districts which shall be identical with the
1392-seven congressional districts as fixed and established by
1393-Section 17-14-70, as may be amended. It is the purpose and
1394-intention of this section to provide that not more than one
1395-professional member of each division of the board shall be
1396-selected from each district and that three nominees to the
1397-Governor for appointment to the board shall be made from each
1398-district. The two three consumer members of the board may not
1399-reside in the same congressional district."
1400-"§34-13-22
1401-(a) The Alabama Board of Funeral Service Services shall
1402-hold not less than one joint meeting of both divisions
1403-quarterly, such meeting for the purpose of reviewing
1404-financial, budgetary, and employment matters. The quarterly
1405-meetings to be held at such a time and place as the board may
1406-determine after notice of such the meeting has been given in
1407-the manner prescribed herein at least 15 days prior to such
1408-the meeting. The board may hold such other meetings as it the
1409-board may deem necessary. A majority of the appointed members
1410-shall constitute a quorum authorized to transact general
1375+b. The misuse of his or her position on the board to
1376+obtain financial gain or seek personal advantage for himself,
1377+herself, or another person.
1378+c. A final adjudication or determination of guilt by
1379+any lawful authority of the board member or sanction of the
1380+board member for the violation of any law the board determines
1381+is substantially related to any practice governed by this
1382+chapter.
1383+d. The revocation or suspension of the license of a
1384+professional member of the board.
1385+(2) Any board member who fails to qualify after
1386+appointment shall automatically become ineligible to serve as
1387+a member of the board and a new member, properly qualified,
1388+shall be appointed in the same manner as the original
1389+appointment and shall serve the remainder of the term of the
1390+vacating board member.
1391+(3) If a consumer board member fails to attend two or
1392+more meetings within a year, without a valid excuse as
1393+determined by the board, he or she shall be removed from the
1394+board. A new consumer board member shall be appointed in the
1395+same manner as the original appointment and shall serve the
1396+remainder of the term.
1397+(g)(1) The status of any person or entity properly
1398+licensed by the Alabama Board of Funeral Service on the
1399+effective date of this act shall continue under the Alabama
1400+Board of Funeral Services.
1401+(2) All the rights, duties, property, real or personal,
1402+and all other effects existing in the name of the Alabama
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1440-business in the name of the board. The board shall not meet on
1441-the premises of any embalming school or college of mortuary
1442-science; and, if any such meeting is held, all the proceedings
1443-of such meeting shall be void Upon the executive director
1444-serving on the effective date of the act amending this
1445-subsection leaving office, two-thirds of the appointed members
1446-of each division shall constitute a quorum for the purposes of
1447-selecting an executive director and establishing fees .
1448-(b) Additionally, each division of the board shall hold
1449-at least one division meeting quarterly. "
1450-"§34-13-23
1451-(a)(1) The board appointed under this chapter and each
1452-successor thereto may shall select from its own membership a
1453-chair and to adopt rules for the transaction of its business
1454-and for the betterment and promotion of the standards of
1455-service and practice to be followed in the death care industry
1456-in the State of Alabama as the board may deem expedient and
1457-consistent with the laws of this state and for the public
1458-good.
1459-(2) The chair shall preside at all meetings of the
1460-board unless otherwise ordered, and he or she shall exercise
1461-and perform all duties and functions incident to the office of
1462-chair.
1463-(3) The board may also select from its own membership a
1464-vice chair, a secretary, and a treasurer. No two offices shall
1465-be held by the same person.
1466-(b) The treasurer shall give bond to the State of
1467-Alabama in the sum of ten thousand dollars ($10,000), and any
1432+Board of Funeral Service shall be transferred to the Alabama
1433+Board of Funeral Services. Any reference to the Alabama Board
1434+of Funeral Service in any existing law, contract, or other
1435+instrument, shall be deemed a reference to the Alabama Board
1436+of Funeral Services.
1437+(3) A reasonable transition period for the name change
1438+shall be allowed to permit an orderly and cost-effective
1439+transition, relating particularly to the use of equipment and
1440+supplies, all letterhead, business cards, forms, and any other
1441+materials in use by the board containing the name Alabama
1442+Board of Funeral Service shall continue to be used by the
1443+Alabama Board of Funeral Services until the supplies are
1444+exhausted. Replacement supplies shall contain the name of the
1445+Alabama Board of Funeral Services.
1446+(4) The Code Commissioner, pursuant to Section 29-7-8,
1447+at times determined appropriate, shall implement this
1448+statutory name change in applicable sections of this code. "
1449+"§34-13-21
1450+There are created, for the purpose of this chapter,
1451+seven geographical districts which shall be identical with the
1452+seven congressional districts as fixed and established by
1453+Section 17-14-70, as may be amended. It is the purpose and
1454+intention of this section to provide that not more than one
1455+professional member of each division of the board shall be
1456+selected from each district and that three nominees to the
1457+Governor for appointment to the board shall be made from each
1458+district. The two three consumer members of the board may not
1459+reside in the same congressional district."
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1497-premium payable for the bond shall be paid from the funds of
1498-the board. The bond shall be deposited with the Treasurer of
1499-the State of Alabama.
1500-(c) A board member shall be reimbursed for necessary
1501-travel expenses, per diem, and the necessary expenses incident
1502-to his or her attendance upon the business of the board, and,
1503-in addition thereto, shall receive compensation in the amount
1504-of seventy-five dollars ($75) for every day not to exceed 20
1505-days per year actually spent by the member upon the business
1506-of the board. The board may employ in the unclassified service
1507-an executive director and up to four associate executive
1508-directors who shall each receive and be paid an annual salary
1509-to be fixed by the board pursuant to Section 36-6-6. The
1510-salary shall be paid on a semimonthly basis. In addition, the
1511-executive director and associate executive directors shall
1512-each receive his or her necessary travel and other incidental
1513-expenses as are incurred in the performance of duties, and all
1514-expenses, per diem, and compensation shall be paid out of the
1515-receipts of the board. At no time shall the operation of the
1516-board be an expense to the state.
1517-(d) The executive director of the board shall have
1518-complete supervision and be held responsible for the direction
1519-of the office of the board, shall have supervision over
1520-employees, field inspections, audits examinations, and
1521-enforcement of this chapter, and shall be responsible and
1522-answerable to the board. The associate executive directors
1523-shall assist the executive director and perform such other
1524-duties as may be assigned to him or her by the executive
1489+"§34-13-22
1490+(a) The Alabama Board of Funeral Service Services shall
1491+hold not less than one joint meeting of both divisions
1492+quarterly, such meeting for the purpose of reviewing
1493+financial, budgetary, and employment matters. The quarterly
1494+meetings to be held at such a time and place as the board may
1495+determine after notice of such the meeting has been given in
1496+the manner prescribed herein at least 15 days prior to such
1497+the meeting. The board may hold such other meetings as it the
1498+board may deem necessary. A majority of the appointed members
1499+shall constitute a quorum authorized to transact general
1500+business in the name of the board. The board shall not meet on
1501+the premises of any embalming school or college of mortuary
1502+science; and, if any such meeting is held, all the proceedings
1503+of such meeting shall be void Upon the executive director
1504+serving on the effective date of the act amending this
1505+subsection leaving office, two-thirds of the appointed members
1506+of each division shall constitute a quorum for the purposes of
1507+selecting an executive director and establishing fees .
1508+(b) Additionally, each division of the board shall hold
1509+at least one division meeting quarterly. "
1510+"§34-13-23
1511+(a)(1) The board appointed under this chapter and each
1512+successor thereto may shall select from its own membership a
1513+chair and to adopt rules for the transaction of its business
1514+and for the betterment and promotion of the standards of
1515+service and practice to be followed in the death care industry
1516+in the State of Alabama as the board may deem expedient and
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1554-director.
1555-(e) The executive director shall keep a record in which
1556-shall be registered the name and business address of every
1557-person to whom licenses have been granted in accordance with
1558-this chapter, the number and date of the license and the date
1559-of each renewal. Upon request to do so, the executive director
1560-shall supply a list of all persons and establishments holding
1561-a license under this chapter, then in force, giving the names
1562-of the persons, their business addresses, and the numbers of
1563-their licenses.
1564-(f) It shall be the duty of the executive director to
1565-prepare under the direction of the board and cause to be
1566-printed all forms required by this chapter to be prescribed by
1567-the board. All notices required to be mailed by this chapter
1568-shall be directed to the last known address of the party to
1569-whom the notice is sent.
1570-(g) The executive director shall serve at the pleasure
1571-of the board and shall perform duties as may be necessary for
1572-the proper functioning of the board as the board may determine
1573-or as may be prescribed in this chapter. During the employment
1574-of the executive director, he or she may not be employed by
1575-any funeral establishment.
1576-(h) All fees and fines received under this chapter
1577-shall be paid into a special fund in the State Treasury to be
1578-known as the Alabama State Funeral Service Fund, which is
1579-hereby created, for the necessary and proper expenses of the
1580-board, and for a reasonable reserve for future use by the
1581-board. All monies in the fund are hereby appropriated, as a
1546+consistent with the laws of this state and for the public
1547+good.
1548+(2) The chair shall preside at all meetings of the
1549+board unless otherwise ordered, and he or she shall exercise
1550+and perform all duties and functions incident to the office of
1551+chair.
1552+(3) The board may also select from its own membership a
1553+vice chair, a secretary, and a treasurer. No two offices shall
1554+be held by the same person.
1555+(b) The treasurer shall give bond to the State of
1556+Alabama in the sum of ten thousand dollars ($10,000), and any
1557+premium payable for the bond shall be paid from the funds of
1558+the board. The bond shall be deposited with the Treasurer of
1559+the State of Alabama.
1560+(c) A board member shall be reimbursed for necessary
1561+travel expenses, per diem, and the necessary expenses incident
1562+to his or her attendance upon the business of the board, and,
1563+in addition thereto, shall receive compensation in the amount
1564+of seventy-five dollars ($75) for every day not to exceed 20
1565+days per year actually spent by the member upon the business
1566+of the board. The board may employ in the unclassified service
1567+an executive director and up to four associate executive
1568+directors who shall each receive and be paid an annual salary
1569+to be fixed by the board pursuant to Section 36-6-6. The
1570+salary shall be paid on a semimonthly basis. In addition, the
1571+executive director and associate executive directors shall
1572+each receive his or her necessary travel and other incidental
1573+expenses as are incurred in the performance of duties, and all
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1611-continuing appropriation, to the board to be used for carrying
1612-out this chapter. Commencing on October 1, 2023, the name of
1613-the fund shall be changed to the Alabama Board of Funeral
1614-Services Fund.
1615-(i) Each member of the board, the executive director,
1616-the associate executive directors, designated employees, and
1617-independent contractors of the board appropriately identified
1618-are authorized at any given time to enter the office,
1619-premises, establishment, or place of business where any
1620-practice or activity regulated by this chapter is carried on,
1621-or advertised as being carried on, to investigate complaints
1622-or perform audits examinations or inspections. Each on-site
1623-inspection shall include an inspection of the license,
1624-certification, and registration of each licensee and
1625-apprentice trainee operating therein.
1626-(j) All members of the board or designated employees of
1627-the board may serve and execute any process issued by any
1628-court under this chapter and execute any papers, orders, or
1629-process issued by the board or any officer or member of the
1630-board under this chapter.
1631-(k) The board may employ clerical assistants and
1632-employees as necessary to carry out this chapter, and the
1633-terms and conditions of employment shall be determined by the
1634-board. The board may establish and equip an office from which
1635-this chapter may be carried out.
1636-(l)(1) The board may acquire and hold, in its own name,
1637-real property by purchase, gift, lease, lease with the option
1638-to purchase, or other lawful means, except eminent domain,
1603+expenses, per diem, and compensation shall be paid out of the
1604+receipts of the board. At no time shall the operation of the
1605+board be an expense to the state.
1606+(d) The executive director of the board shall have
1607+complete supervision and be held responsible for the direction
1608+of the office of the board, shall have supervision over
1609+employees, field inspections, audits examinations, and
1610+enforcement of this chapter, and shall be responsible and
1611+answerable to the board. The associate executive directors
1612+shall assist the executive director and perform such other
1613+duties as may be assigned to him or her by the executive
1614+director.
1615+(e) The executive director shall keep a record in which
1616+shall be registered the name and business address of every
1617+person to whom licenses have been granted in accordance with
1618+this chapter, the number and date of the license and the date
1619+of each renewal. Upon request to do so, the executive director
1620+shall supply a list of all persons and establishments holding
1621+a license under this chapter, then in force, giving the names
1622+of the persons, their business addresses, and the numbers of
1623+their licenses.
1624+(f) It shall be the duty of the executive director to
1625+prepare under the direction of the board and cause to be
1626+printed all forms required by this chapter to be prescribed by
1627+the board. All notices required to be mailed by this chapter
1628+shall be directed to the last known address of the party to
1629+whom the notice is sent.
1630+(g) The executive director shall serve at the pleasure
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1668-which real property may be used by the board to carry out its
1669-responsibilities. The board may also transfer, sell, convey,
1670-or cause to be conveyed real property and any improvements
1671-thereon, subject to the requirements of this section. In
1672-purchasing any real property, maintaining real property, or
1673-making improvements thereto, the board may expend any funds
1674-contained in the Funeral Board Property Acquisition Fund
1675-established in subdivision (2), and any obligations created in
1676-connection with the purchase or improvement of the real
1677-property shall not create debts, obligations, or liabilities
1678-of the state. As used in this subsection, real property shall
1679-include land, lots, and all things and interests, including
1680-leasehold interests, pertaining thereto, and all other things
1681-annexed or attached to the land which would pass to a vendee
1682-by conveyance of the land or lot, including mineral, gas, and
1683-oil interests. All sales or leases made by the board of any
1684-real property owned or held by the board shall be subject to
1685-the requirements of Article 3, Chapter 15, Title 9.
1686-Notwithstanding the foregoing, the proceeds from the sale of
1687-real property owned by the board which are distributed
1688-pursuant to Section 9-15-83 shall be paid to the board and
1689-deposited into the property acquisition fund.
1690-(2) There is established the Funeral Board Property
1691-Acquisition Fund within the State Treasury. Any funds received
1692-by the board pursuant to this section shall be deposited into
1693-the property acquisition fund and shall be held by the board
1694-in trust for carrying out the purposes of the property
1695-acquisition fund. Amounts in the property acquisition fund
1660+of the board and shall perform duties as may be necessary for
1661+the proper functioning of the board as the board may determine
1662+or as may be prescribed in this chapter. During the employment
1663+of the executive director, he or she may not be employed by
1664+any funeral establishment.
1665+(h) All fees and fines received under this chapter
1666+shall be paid into a special fund in the State Treasury to be
1667+known as the Alabama State Funeral Service Fund, which is
1668+hereby created, for the necessary and proper expenses of the
1669+board, and for a reasonable reserve for future use by the
1670+board. All monies in the fund are hereby appropriated, as a
1671+continuing appropriation, to the board to be used for carrying
1672+out this chapter. Commencing on October 1, 2023, the name of
1673+the fund shall be changed to the Alabama Board of Funeral
1674+Services Fund.
1675+(i) Each member of the board, the executive director,
1676+the associate executive directors, designated employees, and
1677+independent contractors of the board appropriately identified
1678+are authorized at any given time to enter the office,
1679+premises, establishment, or place of business where any
1680+practice or activity regulated by this chapter is carried on,
1681+or advertised as being carried on, to investigate complaints
1682+or perform audits examinations or inspections. Each on-site
1683+inspection shall include an inspection of the license,
1684+certification, and registration of each licensee and
1685+apprentice trainee operating therein.
1686+(j) All members of the board or designated employees of
1687+the board may serve and execute any process issued by any
16961688 813
16971689 814
16981690 815
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17091701 826
17101702 827
17111703 828
17121704 829
17131705 830
17141706 831
17151707 832
17161708 833
17171709 834
17181710 835
17191711 836
17201712 837
17211713 838
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17241716 Page 31
1725-shall be budgeted and allotted in accordance with Sections
1726-41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12.
1727-Not later than May 1, 2022, the executive director shall
1728-transfer from the Alabama State Funeral Service Fund to the
1729-property acquisition fund an amount determined by vote of the
1730-board for the purchase of real property. Thereafter, the board
1731-shall annually, during the month of October, transfer an
1732-amount between two percent and seven percent of the receipts
1733-of the board from the previous fiscal year to the property
1734-acquisition fund.
1735-(3) At the end of each fiscal year, any unencumbered
1736-and unexpended balance in the property acquisition fund shall
1737-not revert to the State General Fund but shall carry over to
1738-the next fiscal year."
1739-"§34-13-27
1740-(a) The board shall adopt a common seal, which may be
1741-altered as often as the board may desire, and the funeral
1742-division of the board may adopt and enforce, for the
1743-protection of the public health, safety, and welfare,
1744-reasonable rules relating to all of the following:
1745-(1) The practice of the profession of embalming,
1746-including, but not limited to, solicitation of business.
1747-(2) The practice of the profession of funeral
1748-directing, including, but not limited to, solicitation of
1749-business.
1750-(3) The sanitary condition and physical facilities of
1751-funeral homes, mortuaries, and funeral establishments where
1752-the profession of embalming and funeral directing is carried
1717+court under this chapter and execute any papers, orders, or
1718+process issued by the board or any officer or member of the
1719+board under this chapter.
1720+(k) The board may employ clerical assistants and
1721+employees as necessary to carry out this chapter, and the
1722+terms and conditions of employment shall be determined by the
1723+board. The board may establish and equip an office from which
1724+this chapter may be carried out.
1725+(l)(1) The board may acquire and hold, in its own name,
1726+real property by purchase, gift, lease, lease with the option
1727+to purchase, or other lawful means, except eminent domain,
1728+which real property may be used by the board to carry out its
1729+responsibilities. The board may also transfer, sell, convey,
1730+or cause to be conveyed real property and any improvements
1731+thereon, subject to the requirements of this section. In
1732+purchasing any real property, maintaining real property, or
1733+making improvements thereto, the board may expend any funds
1734+contained in the Funeral Board Property Acquisition Fund
1735+established in subdivision (2), and any obligations created in
1736+connection with the purchase or improvement of the real
1737+property shall not create debts, obligations, or liabilities
1738+of the state. As used in this subsection, real property shall
1739+include land, lots, and all things and interests, including
1740+leasehold interests, pertaining thereto, and all other things
1741+annexed or attached to the land which would pass to a vendee
1742+by conveyance of the land or lot, including mineral, gas, and
1743+oil interests. All sales or leases made by the board of any
1744+real property owned or held by the board shall be subject to
17531745 841
17541746 842
17551747 843
17561748 844
17571749 845
17581750 846
17591751 847
17601752 848
17611753 849
17621754 850
17631755 851
17641756 852
17651757 853
17661758 854
17671759 855
17681760 856
17691761 857
17701762 858
17711763 859
17721764 860
17731765 861
17741766 862
17751767 863
17761768 864
17771769 865
17781770 866
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1782-on, with particular regard to plumbing, sewage, disinfecting,
1783-ventilation, and equipment.
1784-(4) Carrying out generally the various provisions of
1785-this chapter for the protection of the peace, health, safety,
1786-and welfare of the public.
1787-(5) Carrying out a program for training of apprentice
1788-embalmers and apprentice funeral directors.
1789-(6) The sale of goods, services, and merchandise and
1790-the operation of entities and establishments regulated by the
1791-board.
1792-(b) The preneed division of the board may adopt and
1793-enforce, for the protection of the public health, safety, and
1794-welfare, reasonable rules relating to the sale of preneed
1795-merchandise and services. "
1796-Section 2. The following heading is added to Division
1797-1, commencing with Section 34-13-170, of Article 5, Chapter
1798-13, Title 34, Code of Alabama 1975:
1799-"Article 5. Alabama Preneed Funeral and Cemetery Act of
1800-2023.
1801-"Division 1. General Provisions."
1802-Section 3. Sections 27-17A-1, 27-17A-3, and 27-17A-4 of
1803-the Code of Alabama 1975, are amended and renumbered as
1804-Division 1 of Article 5 of Chapter 13 of Title 34, Code of
1805-Alabama 1975, to read as follows:
1806-"§27-17A-1§34-13-170
1807-(a) This chapter article shall be known and may be
1808-cited as the Alabama Preneed Funeral and Cemetery Act of 2023.
1809-(b)(1) The Alabama Board of Funeral Services succeeds
1774+the requirements of Article 3, Chapter 15, Title 9.
1775+Notwithstanding the foregoing, the proceeds from the sale of
1776+real property owned by the board which are distributed
1777+pursuant to Section 9-15-83 shall be paid to the board and
1778+deposited into the property acquisition fund.
1779+(2) There is established the Funeral Board Property
1780+Acquisition Fund within the State Treasury. Any funds received
1781+by the board pursuant to this section shall be deposited into
1782+the property acquisition fund and shall be held by the board
1783+in trust for carrying out the purposes of the property
1784+acquisition fund. Amounts in the property acquisition fund
1785+shall be budgeted and allotted in accordance with Sections
1786+41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12.
1787+Not later than May 1, 2022, the executive director shall
1788+transfer from the Alabama State Funeral Service Fund to the
1789+property acquisition fund an amount determined by vote of the
1790+board for the purchase of real property. Thereafter, the board
1791+shall annually, during the month of October, transfer an
1792+amount between two percent and seven percent of the receipts
1793+of the board from the previous fiscal year to the property
1794+acquisition fund.
1795+(3) At the end of each fiscal year, any unencumbered
1796+and unexpended balance in the property acquisition fund shall
1797+not revert to the State General Fund but shall carry over to
1798+the next fiscal year."
1799+"§34-13-27
1800+(a) The board shall adopt a common seal, which may be
1801+altered as often as the board may desire, and the funeral
18101802 869
18111803 870
18121804 871
18131805 872
18141806 873
18151807 874
18161808 875
18171809 876
18181810 877
18191811 878
18201812 879
18211813 880
18221814 881
18231815 882
18241816 883
18251817 884
18261818 885
18271819 886
18281820 887
18291821 888
18301822 889
18311823 890
18321824 891
18331825 892
18341826 893
18351827 894
18361828 895
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1839-to and is vested with the powers, duties, and functions of the
1840-Department of Insurance relating to the regulation of
1841-endowment care, preneed sales contracts, and the licensing of
1842-preneed sales agents.
1843-(2) All records of the Department of Insurance relating
1844-to the regulation of preneed sales contracts, endowment care,
1845-and the licensing of preneed sales agents are transferred to
1846-the board.
1847-(3) The status of any person properly licensed by the
1848-Department of Insurance under the former Chapter 17A of Title
1849-27, on the effective date of the act adding this subdivision,
1850-shall continue under the board.
1851-(4) The administrative rules of the Department of
1852-Insurance existing on the effective date of the act adding
1853-this subdivision shall remain in effect as administrative
1854-rules of the board until added, amended, or repealed by the
1831+division of the board may adopt and enforce, for the
1832+protection of the public health, safety, and welfare,
1833+reasonable rules relating to all of the following:
1834+(1) The practice of the profession of embalming,
1835+including, but not limited to, solicitation of business.
1836+(2) The practice of the profession of funeral
1837+directing, including, but not limited to, solicitation of
1838+business.
1839+(3) The sanitary condition and physical facilities of
1840+funeral homes, mortuaries, and funeral establishments where
1841+the profession of embalming and funeral directing is carried
1842+on, with particular regard to plumbing, sewage, disinfecting,
1843+ventilation, and equipment.
1844+(4) Carrying out generally the various provisions of
1845+this chapter for the protection of the peace, health, safety,
1846+and welfare of the public.
1847+(5) Carrying out a program for training of apprentice
1848+embalmers and apprentice funeral directors.
1849+(6) The sale of goods, services, and merchandise and
1850+the operation of entities and establishments regulated by the
18551851 board.
1856-(5) The existence and functioning of the Alabama
1857-Preneed Funeral and Cemetery Act, created and functioning
1858-pursuant to Sections 27-17A-1 to 27-17A-57, inclusive, is
1859-continued as the Alabama Preneed Funeral and Cemetery Act of
1860-2023, under this article. All rights, duties, and obligations
1861-existing in the name of the Department of Insurance, relating
1862-to endowment care, preneed sales contracts, and preneed sales
1863-agent licenses, shall continue under the board. Any reference
1864-to the Department of Insurance in any existing law, contract,
1865-or other instrument relating to endowment care, preneed sales
1866-contracts, and preneed sales agent licenses, shall be deemed a
1852+(b) The preneed division of the board may adopt and
1853+enforce, for the protection of the public health, safety, and
1854+welfare, reasonable rules relating to the sale of preneed
1855+merchandise and services. "
1856+Section 2. The following heading is added to Division
1857+1, commencing with Section 34-13-170, of Article 5, Chapter
1858+13, Title 34, Code of Alabama 1975:
18671859 897
18681860 898
18691861 899
18701862 900
18711863 901
18721864 902
18731865 903
18741866 904
18751867 905
18761868 906
18771869 907
18781870 908
18791871 909
18801872 910
18811873 911
18821874 912
18831875 913
18841876 914
18851877 915
18861878 916
18871879 917
18881880 918
18891881 919
18901882 920
18911883 921
18921884 922
18931885 923
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18951887 Page 34
1896-reference to the board.
1897-(6) The transfer of the regulation of preneed contracts
1898-and the licensing of preneed sales agents from the Department
1899-of Insurance to the board shall not affect the rights of any
1900-person held before the effective date of the act adding this
1901-subdivision, as those rights relate to any preneed trust
1902-funds, endowment care trust funds, or any other funds held in
1903-trust pursuant to the Alabama Preneed Funeral and Cemetery
1904-Act."
1905-"§27-17A-3§34-13-171
1906-(a) Nothing in this chapter shall be construed to
1907-prohibit the funding of preneed contracts with multiple
1908-insurance or annuity contracts. Life insurance and annuity
1909-contracts used to fund preneed contracts shall conform with
1910-the provisions of this title Title 27 as they relate to life
1911-insurance and annuities and shall cover not less than the
1912-initial retail price of the preneed contract.
1913-(b) The initial premium payment for a life insurance
1914-policy or annuity contract shall be made payable to the
1915-issuing insurance company and the preneed seller shall remit
1916-the payment to the insurance company within 10 business days
1917-after the insurance application is signed by the parties. If a
1918-preneed contract provides for installment payments, each
1919-premium payment shall be made payable to the insurance company
1920-and, if collected by the preneed seller, shall be remitted to
1921-the insurance company within 10 business days after receipt by
1922-the preneed seller.
1923-(c) Nothing in this chapter shall prohibit a seller, or
1888+"Article 5. Alabama Preneed Funeral and Cemetery Act of
1889+2023.
1890+"Division 1. General Provisions."
1891+Section 3. Sections 27-17A-1, 27-17A-3, and 27-17A-4 of
1892+the Code of Alabama 1975, are amended and renumbered as
1893+Division 1 of Article 5 of Chapter 13 of Title 34, Code of
1894+Alabama 1975, to read as follows:
1895+"§27-17A-1§34-13-170
1896+(a) This chapter article shall be known and may be
1897+cited as the Alabama Preneed Funeral and Cemetery Act of 2023.
1898+(b)(1) The Alabama Board of Funeral Services succeeds
1899+to and is vested with the powers, duties, and functions of the
1900+Department of Insurance relating to the regulation of
1901+endowment care, preneed sales contracts, and the licensing of
1902+preneed sales agents.
1903+(2) All records of the Department of Insurance relating
1904+to the regulation of preneed sales contracts, endowment care,
1905+and the licensing of preneed sales agents are transferred to
1906+the board.
1907+(3) The status of any person properly licensed by the
1908+Department of Insurance under the former Chapter 17A of Title
1909+27, on the effective date of the act adding this subdivision,
1910+shall continue under the board.
1911+(4) The administrative rules of the Department of
1912+Insurance existing on the effective date of the act adding
1913+this subdivision shall remain in effect as administrative
1914+rules of the board until added, amended, or repealed by the
1915+board.
19241916 925
19251917 926
19261918 927
19271919 928
19281920 929
19291921 930
19301922 931
19311923 932
19321924 933
19331925 934
19341926 935
19351927 936
19361928 937
19371929 938
19381930 939
19391931 940
19401932 941
19411933 942
19421934 943
19431935 944
19441936 945
19451937 946
19461938 947
19471939 948
19481940 949
19491941 950
19501942 951
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19521944 Page 35
1953-any other person, from receiving commissions earned and
1954-payable in regard to funding preneed contracts with life
1955-insurance or annuity contracts, provided the seller or other
1956-person holds a valid insurance producer license in this state
1957-and is appointed by the insurance company paying the
1958-commission.
1959-(d) A preneed seller may be identified as the
1960-beneficiary or assignee of the death benefit proceeds of a
1961-life insurance policy or annuity contract sold as a future
1962-funding mechanism for a preneed contract, but may not be the
1963-owner of the policy or annuity contract or exercise any
1964-ownership rights in the policy or annuity. If the preneed
1965-contract is cancelled before or after the death of the funeral
1966-beneficiary, the preneed seller shall cancel and relinquish
1967-any assignment of benefits or beneficiary status under the
1968-policy or annuity contract, and deliver the policy or
1969-contract, if in the custody of the preneed seller, to the
1970-policy owner or his or her legal representative."
1971-"§27-17A-4§34-13-172
1972-Nothing in this chapter shall be construed to prohibit
1973-cemetery authorities from selling funeral merchandise, funeral
1974-establishments from selling cemetery merchandise, or
1975-third-party sellers from selling either funeral merchandise or
1976-cemetery merchandise, or both. Provided, the required amount
1977-of the purchase price to be placed into trust shall be
1978-governed by the appropriate section of this chapter."
1979-Section 4. The following heading is added to Division
1980-2, commencing with Section 34-13-190, of Article 5, Chapter
1945+(5) The existence and functioning of the Alabama
1946+Preneed Funeral and Cemetery Act, created and functioning
1947+pursuant to Sections 27-17A-1 to 27-17A-57, inclusive, is
1948+continued as the Alabama Preneed Funeral and Cemetery Act of
1949+2023, under this article. All rights, duties, and obligations
1950+existing in the name of the Department of Insurance, relating
1951+to endowment care, preneed sales contracts, and preneed sales
1952+agent licenses, shall continue under the board. Any reference
1953+to the Department of Insurance in any existing law, contract,
1954+or other instrument relating to endowment care, preneed sales
1955+contracts, and preneed sales agent licenses, shall be deemed a
1956+reference to the board.
1957+(6) The transfer of the regulation of preneed contracts
1958+and the licensing of preneed sales agents from the Department
1959+of Insurance to the board shall not affect the rights of any
1960+person held before the effective date of the act adding this
1961+subdivision, as those rights relate to any preneed trust
1962+funds, endowment care trust funds, or any other funds held in
1963+trust pursuant to the Alabama Preneed Funeral and Cemetery
1964+Act."
1965+"§27-17A-3§34-13-171
1966+(a) Nothing in this chapter shall be construed to
1967+prohibit the funding of preneed contracts with multiple
1968+insurance or annuity contracts. Life insurance and annuity
1969+contracts used to fund preneed contracts shall conform with
1970+the provisions of this title Title 27 as they relate to life
1971+insurance and annuities and shall cover not less than the
1972+initial retail price of the preneed contract.
19811973 953
19821974 954
19831975 955
19841976 956
19851977 957
19861978 958
19871979 959
19881980 960
19891981 961
19901982 962
19911983 963
19921984 964
19931985 965
19941986 966
19951987 967
19961988 968
19971989 969
19981990 970
19991991 971
20001992 972
20011993 973
20021994 974
20031995 975
20041996 976
20051997 977
20061998 978
20071999 979
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20092001 Page 36
2010-13, Title 34, Code of Alabama 1975:
2011-"Division 2. Certificate of Authority."
2012-Section 5. Sections 27-17A-10, 27-17A-11, 27-17A-11.1,
2013-27-17A-12, 27-17A-13, 27-17A-14, 27-17A-15, 27-17A-16,
2014-27-17A-17, 27-17A-18, 27-17A-19, 27-17A-20, 27-17A-21,
2015-27-17A-22, 27-17A-23, 27-17A-24, and 27-17A-25 of the Code of
2016-Alabama 1975, are amended and renumbered as Division 2 of
2017-Article 5 of Chapter 13 of Title 34, Code of Alabama 1975, to
2018-read as follows:
2019-"§27-17A-10§34-13-190
2020-(a) No person may sell a preneed contract without first
2021-having a valid certificate of authority.
2022-(b)(1) No person may receive any funds for payment on a
2023-preneed contract who does not hold a valid certificate of
2024-authority.
2025-(2) Any preneed transaction in which a buyer pays to
2026-the seller before need, in whole or in part, a purchase price
2027-for funeral or cemetery merchandise and services, and in which
2028-the seller is not obligated to deliver the contracted for
2029-merchandise or to perform the services until need, in whole or
2030-in part, shall be evidenced by a written preneed contract
2031-satisfying the requirements of this chapter and signed by the
2032-seller and the purchaser. No person may receive or accept any
2033-form of consideration in such a transaction without a fully
2034-signed written preneed contract. A transaction not evidenced
2035-by a signed written preneed contract shall be voidable at the
2036-election of the buyer and, if such election is made, the
2037-seller shall refund to the buyer the entire amount paid by the
2002+(b) The initial premium payment for a life insurance
2003+policy or annuity contract shall be made payable to the
2004+issuing insurance company and the preneed seller shall remit
2005+the payment to the insurance company within 10 business days
2006+after the insurance application is signed by the parties. If a
2007+preneed contract provides for installment payments, each
2008+premium payment shall be made payable to the insurance company
2009+and, if collected by the preneed seller, shall be remitted to
2010+the insurance company within 10 business days after receipt by
2011+the preneed seller.
2012+(c) Nothing in this chapter shall prohibit a seller, or
2013+any other person, from receiving commissions earned and
2014+payable in regard to funding preneed contracts with life
2015+insurance or annuity contracts, provided the seller or other
2016+person holds a valid insurance producer license in this state
2017+and is appointed by the insurance company paying the
2018+commission.
2019+(d) A preneed seller may be identified as the
2020+beneficiary or assignee of the death benefit proceeds of a
2021+life insurance policy or annuity contract sold as a future
2022+funding mechanism for a preneed contract, but may not be the
2023+owner of the policy or annuity contract or exercise any
2024+ownership rights in the policy or annuity. If the preneed
2025+contract is cancelled before or after the death of the funeral
2026+beneficiary, the preneed seller shall cancel and relinquish
2027+any assignment of benefits or beneficiary status under the
2028+policy or annuity contract, and deliver the policy or
2029+contract, if in the custody of the preneed seller, to the
20382030 981
20392031 982
20402032 983
20412033 984
20422034 985
20432035 986
20442036 987
20452037 988
20462038 989
20472039 990
20482040 991
20492041 992
20502042 993
20512043 994
20522044 995
20532045 996
20542046 997
20552047 998
20562048 999
20572049 1000
20582050 1001
20592051 1002
20602052 1003
20612053 1004
20622054 1005
20632055 1006
20642056 1007
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2057+1008 SB131 INTRODUCEDSB131 INTRODUCED
20662058 Page 37
2067-buyer together with interest thereon at the legal rate within
2068-30 days after notice to the seller.
2069-(3) The provisions of subdivision (1) do not apply to
2070-the purchase of a life insurance policy or annuity, the
2071-benefits of which are assigned to a funeral home and/or or
2072-cemetery authority, or the benefits of which are to be paid to
2073-a funeral home and/or or cemetery authority named as
2074-beneficiary of the policy or annuity, as long as the purchaser
2075-and funeral home and/or or cemetery authority acknowledge in
2076-writing that no preneed contract is entered as a result of the
2077-purchase or assignment of the life insurance policy or annuity
2078-at the time the policy or annuity is purchased. Benefits from
2079-a life insurance policy or annuity issued under this
2080-subdivision shall only be paid to a funeral home and/or or
2081-cemetery authority which provides funeral or cemetery
2082-merchandise and services at the death of the insured whether
2083-or not such funeral home and/or or cemetery has been named as
2084-an assignee or the beneficiary of the policy or annuity. If
2085-the amount of the policy or annuity proceeds shall exceed the
2086-actual funeral costs at the time of need, such the excess
2087-amount must shall be paid to a designated beneficiary, other
2088-than a funeral home and/or or cemetery authority, or to the
2089-estate of the insured or annuitant.
2090-(4) The provisions of subdivision Subdivision (1) do
2091-does not apply to any legal reserve insurance company or to
2092-any trust company or to any national or state bank or savings
2093-and loan association having trust powers which company, bank,
2094-or association receives any money in trust pursuant to the
2059+policy owner or his or her legal representative."
2060+"§27-17A-4§34-13-172
2061+Nothing in this chapter shall be construed to prohibit
2062+cemetery authorities from selling funeral merchandise, funeral
2063+establishments from selling cemetery merchandise, or
2064+third-party sellers from selling either funeral merchandise or
2065+cemetery merchandise, or both. Provided, the required amount
2066+of the purchase price to be placed into trust shall be
2067+governed by the appropriate section of this chapter."
2068+Section 4. The following heading is added to Division
2069+2, commencing with Section 34-13-190, of Article 5, Chapter
2070+13, Title 34, Code of Alabama 1975:
2071+"Division 2. Certificate of Authority."
2072+Section 5. Sections 27-17A-10, 27-17A-11, 27-17A-11.1,
2073+27-17A-12, 27-17A-13, 27-17A-14, 27-17A-15, 27-17A-16,
2074+27-17A-17, 27-17A-18, 27-17A-19, 27-17A-20, 27-17A-21,
2075+27-17A-22, 27-17A-23, 27-17A-24, and 27-17A-25 of the Code of
2076+Alabama 1975, are amended and renumbered as Division 2 of
2077+Article 5 of Chapter 13 of Title 34, Code of Alabama 1975, to
2078+read as follows:
2079+"§27-17A-10§34-13-190
2080+(a) No person may sell a preneed contract without first
2081+having a valid certificate of authority.
2082+(b)(1) No person may receive any funds for payment on a
2083+preneed contract who does not hold a valid certificate of
2084+authority.
2085+(2) Any preneed transaction in which a buyer pays to
2086+the seller before need, in whole or in part, a purchase price
20952087 1009
20962088 1010
20972089 1011
20982090 1012
20992091 1013
21002092 1014
21012093 1015
21022094 1016
21032095 1017
21042096 1018
21052097 1019
21062098 1020
21072099 1021
21082100 1022
21092101 1023
21102102 1024
21112103 1025
21122104 1026
21132105 1027
21142106 1028
21152107 1029
21162108 1030
21172109 1031
21182110 1032
21192111 1033
21202112 1034
21212113 1035
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2114+1036 SB131 INTRODUCEDSB131 INTRODUCED
21232115 Page 38
2124-sale of a preneed contract.
2125-(c)(1) No person may obtain a certificate of authority
2126-under this article chapter for the preneed sale of funeral
2127-services or cemetery services unless the person or its agent,
2128-in the case of a corporate entity, holds a license as a
2129-funeral director or a funeral establishment, or is a cemetery
2130-authority. and qualifies as an applicant for a certificate of
2131-authority pursuant to the following standards and
2132-qualifications:
2133-a. The applicant shall be at least the legal age of
2134-majority in this state.
2135-b. The applicant shall be in good standing with the
2136-board.
2137-c. The applicant may not have any felony or misdemeanor
2138-convictions that relate to any activity regulated by this
2139-chapter or a crime involving moral turpitude, as defined by
2140-this chapter.
2141-d. The applicant shall be of good moral character and
2142-submit to a criminal history background check pursuant to
2143-subdivision (2).
2144-(2) An applicant for a certificate of authority shall
2145-submit to the board, on a form sworn to by the applicant, his
2146-or her name, date of birth, Social Security number, and two
2147-complete sets of fingerprints for completion of a criminal
2148-history background check. The board shall submit the
2149-fingerprints to the Alabama State Law Enforcement Agency for a
2150-state criminal history background check. The fingerprints
2151-shall be forwarded by the agency to the Federal Bureau of
2116+for funeral or cemetery merchandise and services, and in which
2117+the seller is not obligated to deliver the contracted for
2118+merchandise or to perform the services until need, in whole or
2119+in part, shall be evidenced by a written preneed contract
2120+satisfying the requirements of this chapter and signed by the
2121+seller and the purchaser. No person may receive or accept any
2122+form of consideration in such a transaction without a fully
2123+signed written preneed contract. A transaction not evidenced
2124+by a signed written preneed contract shall be voidable at the
2125+election of the buyer and, if such election is made, the
2126+seller shall refund to the buyer the entire amount paid by the
2127+buyer together with interest thereon at the legal rate within
2128+30 days after notice to the seller.
2129+(3) The provisions of subdivision (1) do not apply to
2130+the purchase of a life insurance policy or annuity, the
2131+benefits of which are assigned to a funeral home and/or or
2132+cemetery authority, or the benefits of which are to be paid to
2133+a funeral home and/or or cemetery authority named as
2134+beneficiary of the policy or annuity, as long as the purchaser
2135+and funeral home and/or or cemetery authority acknowledge in
2136+writing that no preneed contract is entered as a result of the
2137+purchase or assignment of the life insurance policy or annuity
2138+at the time the policy or annuity is purchased. Benefits from
2139+a life insurance policy or annuity issued under this
2140+subdivision shall only be paid to a funeral home and/or or
2141+cemetery authority which provides funeral or cemetery
2142+merchandise and services at the death of the insured whether
2143+or not such funeral home and/or or cemetery has been named as
21522144 1037
21532145 1038
21542146 1039
21552147 1040
21562148 1041
21572149 1042
21582150 1043
21592151 1044
21602152 1045
21612153 1046
21622154 1047
21632155 1048
21642156 1049
21652157 1050
21662158 1051
21672159 1052
21682160 1053
21692161 1054
21702162 1055
21712163 1056
21722164 1057
21732165 1058
21742166 1059
21752167 1060
21762168 1061
21772169 1062
21782170 1063
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21802172 Page 39
2181-Investigation for a national criminal history background
2182-check. Costs associated with conducting a criminal history
2183-background check shall be paid by the applicant. The board
2184-shall keep information received pursuant to this subdivision
2185-confidential, except that information received and relied upon
2186-in denying the issuance of a certificate of authority may be
2187-disclosed if necessary to support the denial. All character
2188-information, including the information obtained through the
2189-criminal history background checks, shall be considered in
2190-licensure decisions to the extent permissible by all
2191-applicable laws.
2192-(d) The provisions of this This section do does not
2193-apply to a cemetery authority owned or operated by a
2194-governmental agency or a religious institution or to those
2195-cemeteries that do not charge fees or sell plots, interment
2196-rights, or any related cemetery merchandise ."
2197-"§27-17A-11§34-13-191
2198-(a) An application to the commissioner board for a
2199-certificate of authority shall be accompanied by the statement
2200-and other matters described in this section in the form
2201-prescribed by the commissioner board. Annually thereafter,
2202-within six months after the end of its fiscal period, or
2203-within an extension of time therefor, as the commissioner
2204-board for good cause may grant, the person authorized to
2205-engage in the sale of preneed contracts shall file with the
2206-commissioner board a full and true statement of his or her
2207-financial condition, transactions, and affairs, prepared on a
2208-basis as adopted by a rule of the commissioner board, as of
2173+an assignee or the beneficiary of the policy or annuity. If
2174+the amount of the policy or annuity proceeds shall exceed the
2175+actual funeral costs at the time of need, such the excess
2176+amount must shall be paid to a designated beneficiary, other
2177+than a funeral home and/or or cemetery authority, or to the
2178+estate of the insured or annuitant.
2179+(4) The provisions of subdivision Subdivision (1) do
2180+does not apply to any legal reserve insurance company or to
2181+any trust company or to any national or state bank or savings
2182+and loan association having trust powers which company, bank,
2183+or association receives any money in trust pursuant to the
2184+sale of a preneed contract.
2185+(c)(1) No person may obtain a certificate of authority
2186+under this article chapter for the preneed sale of funeral
2187+services or cemetery services unless the person or its agent,
2188+in the case of a corporate entity, holds a license as a
2189+funeral director or a funeral establishment, or is a cemetery
2190+authority. and qualifies as an applicant for a certificate of
2191+authority pursuant to the following standards and
2192+qualifications:
2193+a. The applicant shall be at least the legal age of
2194+majority in this state.
2195+b. The applicant shall be in good standing with the
2196+board.
2197+c. The applicant may not have any felony or misdemeanor
2198+convictions that relate to any activity regulated by this
2199+chapter or a crime involving moral turpitude, as defined by
2200+this chapter.
22092201 1065
22102202 1066
22112203 1067
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22132205 1069
22142206 1070
22152207 1071
22162208 1072
22172209 1073
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22202212 1076
22212213 1077
22222214 1078
22232215 1079
22242216 1080
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22282220 1084
22292221 1085
22302222 1086
22312223 1087
22322224 1088
22332225 1089
22342226 1090
22352227 1091
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22372229 Page 40
2238-the preceding fiscal period or at such other time or times as
2239-the commissioner board may provide by rule, together with
2240-information and data which may be required by the commissioner
2241-board.
2242-(b) The statement shall include all of the following:
2243-(1) The types of preneed contracts proposed to be
2244-written and the type of funding vehicle vehicles to be used.
2245-(2) The name and address of the place of business of
2246-the person offering to write preneed contracts.
2247-(3) Evidence that the person offering the statement has
2248-the following qualifications:
2249-a. Has the ability to discharge his or her preneed
2250-liabilities as they become due in the normal course of
2251-business and has sufficient funds available during the
2252-calendar year to perform his or her obligations under the
2253-contract.
2254-b. Has complied with the trust requirements for the
2255-funds received under contracts issued by himself or herself as
2256-hereinafter described.
2257-c. Has disbursed interest, dividends, or accretions
2258-earned by trust funds, in accordance with this article chapter
2259-and rules promulgated adopted hereunder.
2260-d. Has complied with this chapter and any rules of the
2261-commissioner board.
2262-(4) Any other information considered necessary by the
2263-commissioner board to meet the commissioner's board's
2264-responsibilities under this chapter.
2265-(c) If the person is an individual, the statement shall
2230+d. The applicant shall be of good moral character and
2231+submit to a criminal history background check pursuant to
2232+subdivision (2).
2233+(2) An applicant for a certificate of authority shall
2234+submit to the board, on a form sworn to by the applicant, his
2235+or her name, date of birth, Social Security number, and two
2236+complete sets of fingerprints for completion of a criminal
2237+history background check. The board shall submit the
2238+fingerprints to the Alabama State Law Enforcement Agency for a
2239+state criminal history background check. The fingerprints
2240+shall be forwarded by the agency to the Federal Bureau of
2241+Investigation for a national criminal history background
2242+check. Costs associated with conducting a criminal history
2243+background check shall be paid by the applicant. The board
2244+shall keep information received pursuant to this subdivision
2245+confidential, except that information received and relied upon
2246+in denying the issuance of a certificate of authority may be
2247+disclosed if necessary to support the denial. All character
2248+information, including the information obtained through the
2249+criminal history background checks, shall be considered in
2250+licensure decisions to the extent permissible by all
2251+applicable laws.
2252+(d) The provisions of this This section do does not
2253+apply to a cemetery authority owned or operated by a
2254+governmental agency or a religious institution or to those
2255+cemeteries that do not charge fees or sell plots, interment
2256+rights, or any related cemetery merchandise ."
2257+"§27-17A-11§34-13-191
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22852277 1112
22862278 1113
22872279 1114
22882280 1115
22892281 1116
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22922284 1119
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2285+1120 SB131 INTRODUCEDSB131 INTRODUCED
22942286 Page 41
2295-be sworn by him or her; if a firm or association, by all
2296-members thereof; or, if a corporation, by any officer of the
2297-corporation.
2298-(d)(1) An application to the commissioner board for an
2299-initial certificate of authority shall be accompanied by an
2300-application fee in an amount to be determined by the
2301-commissioner board, not to exceed one hundred fifty dollars
2302-($150) one hundred ninety-eight dollars ($198) . Thereafter,
2303-each annual application for renewal of a certificate of
2304-authority shall be accompanied by the appropriate fee as
2305-determined by the commissioner board not to exceed
2306-seventy-five dollars ($75) ninety-nine dollars ($99) .
2307-(2) Any person or entity that is part of a common
2308-business enterprise that has a certificate of authority issued
2309-pursuant to this article chapter and elects to operate under a
2310-name other than that of the common business enterprise shall
2311-submit an application on a form adopted prescribed by the
2312-commissioner board to become a branch registrant. Upon the
2313-approval of the commissioner board that the entity qualifies
2314-to sell preneed contracts under this article chapter except
2315-for the requirements of subparagraph 1., of paragraph a. of
2316-subdivision (3) of subsection (b) and if the certificate
2317-holder meets the requirements of paragraph a. subparagraph 1. ,
2318-a branch registration shall be issued. Each branch registrant
2319-may operate under the certificate of authority of the common
2320-business enterprise upon the payment of a fee established by
2321-the commissioner board not to exceed one hundred fifty dollars
2322-($150) one hundred ninety-eight dollars ($198) accompanying
2287+(a) An application to the commissioner board for a
2288+certificate of authority shall be accompanied by the statement
2289+and other matters described in this section in the form
2290+prescribed by the commissioner board. Annually thereafter,
2291+within six months after the end of its fiscal period, or
2292+within an extension of time therefor, as the commissioner
2293+board for good cause may grant, the person authorized to
2294+engage in the sale of preneed contracts shall file with the
2295+commissioner board a full and true statement of his or her
2296+financial condition, transactions, and affairs, prepared on a
2297+basis as adopted by a rule of the commissioner board, as of
2298+the preceding fiscal period or at such other time or times as
2299+the commissioner board may provide by rule, together with
2300+information and data which may be required by the commissioner
2301+board.
2302+(b) The statement shall include all of the following:
2303+(1) The types of preneed contracts proposed to be
2304+written and the type of funding vehicle vehicles to be used.
2305+(2) The name and address of the place of business of
2306+the person offering to write preneed contracts.
2307+(3) Evidence that the person offering the statement has
2308+the following qualifications:
2309+a. Has the ability to discharge his or her preneed
2310+liabilities as they become due in the normal course of
2311+business and has sufficient funds available during the
2312+calendar year to perform his or her obligations under the
2313+contract.
2314+b. Has complied with the trust requirements for the
23232315 1121
23242316 1122
23252317 1123
23262318 1124
23272319 1125
23282320 1126
23292321 1127
23302322 1128
23312323 1129
23322324 1130
23332325 1131
23342326 1132
23352327 1133
23362328 1134
23372329 1135
23382330 1136
23392331 1137
23402332 1138
23412333 1139
23422334 1140
23432335 1141
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23452337 1143
23462338 1144
23472339 1145
23482340 1146
23492341 1147
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2342+1148 SB131 INTRODUCEDSB131 INTRODUCED
23512343 Page 42
2352-the application on July September 1 annually.
2353-(e) Upon the commissioner board being satisfied that
2354-the statement and matters which may accompany it the statement
2355-meet the requirements of this article chapter and of its
2356-rules, the commissioner board shall issue or renew the
2357-certificate of authority.
2358-(f) The certificate of authority shall expire annually
2359-on September October 1, unless renewed, or at such other time
2360-or times as the commissioner board may provide by rule.
2361-(g) On or before July 1 of a date adopted by the board
2362-each year, the certificate holder shall file with the
2363-commissioner board in the form prescribed by the commissioner
2364-board a full and true statement as to the activities of any
2365-trust established by it pursuant to this article chapter for
2366-the preceding calendar year.
2367-(h) In addition to any other penalty that may be
2368-provided for under this article chapter, the commissioner
2369-board may levy a fine not to exceed fifty dollars ($50) per
2370-day for each day the certificate holder fails to file its
2371-annual statement, and the commissioner board may levy a fine
2372-not to exceed fifty dollars ($50) per day for each day the
2373-certificate holder fails to file the statement of activities
2374-of the trust. Upon notice to the certificate holder by the
2375-commissioner board that the certificate holder has failed to
2376-file the annual statement or the statement of activities of
2377-the trust, the certificate holder's authority to sell preneed
2378-contracts shall cease while the default continues.
2379-(i) To facilitate uniformity in financial statements
2344+funds received under contracts issued by himself or herself as
2345+hereinafter described.
2346+c. Has disbursed interest, dividends, or accretions
2347+earned by trust funds, in accordance with this article chapter
2348+and rules promulgated adopted hereunder.
2349+d. Has complied with this chapter and any rules of the
2350+commissioner board.
2351+(4) Any other information considered necessary by the
2352+commissioner board to meet the commissioner's board's
2353+responsibilities under this chapter.
2354+(c) If the person is an individual, the statement shall
2355+be sworn by him or her; if a firm or association, by all
2356+members thereof; or, if a corporation, by any officer of the
2357+corporation.
2358+(d)(1) An application to the commissioner board for an
2359+initial certificate of authority shall be accompanied by an
2360+application fee in an amount to be determined by the
2361+commissioner board, not to exceed one hundred fifty dollars
2362+($150) one hundred ninety-eight dollars ($198) . Thereafter,
2363+each annual application for renewal of a certificate of
2364+authority shall be accompanied by the appropriate fee as
2365+determined by the commissioner board not to exceed
2366+seventy-five dollars ($75) ninety-nine dollars ($99) .
2367+(2) Any person or entity that is part of a common
2368+business enterprise that has a certificate of authority issued
2369+pursuant to this article chapter and elects to operate under a
2370+name other than that of the common business enterprise shall
2371+submit an application on a form adopted prescribed by the
23802372 1149
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23872379 1156
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23902382 1159
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23932385 1162
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23972389 1166
23982390 1167
23992391 1168
24002392 1169
24012393 1170
24022394 1171
24032395 1172
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24052397 1174
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24082400 Page 43
2409-and to facilitate analysis, the commissioner board may by rule
2410-adopt a form for financial statements. The holder of a
2411-certificate of authority may submit a written request to the
2412-commissioner board to exempt the holder from filing financial
2413-statements at renewal. The commissioner board may waive the
2414-requirement for filing a financial statement at renewal if all
2415-of the following are satisfied:
2416-(1) No valid complaint has been filed since the last
2417-examination audit.
2418-(2) No administrative action against the preneed entity
2419-has been instituted since the last examination audit.
2420-(3) The certificate holder certifies that all
2421-outstanding preneed contracts written by the holder since
2422-April 30, 2002, are fully funded in accordance with this
2423-chapter.
2424-(4) The certificate holder certifies that it will fully
2425-fund all preneed contracts with life insurance, annuity, or
2426-will deposit 100 percent of all funds collected on all preneed
2427-contracts in trust within 30 days after the end of the
2428-calendar month in which the funds are collected.
2429-(5) The preneed entity has provided to the department
2430-board in a timely manner all required and requested records.
2431-(6) The preneed entity agrees to file quarterly reports
2432-of its preneed activity on a form or, in a format, and as
2433-often as prescribed by the commissioner board.
2434-(j) The commissioner board may authorize the transfer
2435-of certificates of authority and establish fees for the
2436-transfer in an amount not to exceed one hundred dollars ($100)
2401+commissioner board to become a branch registrant. Upon the
2402+approval of the commissioner board that the entity qualifies
2403+to sell preneed contracts under this article chapter except
2404+for the requirements of subparagraph 1., of paragraph a. of
2405+subdivision (3) of subsection (b) and if the certificate
2406+holder meets the requirements of paragraph a. subparagraph 1. ,
2407+a branch registration shall be issued. Each branch registrant
2408+may operate under the certificate of authority of the common
2409+business enterprise upon the payment of a fee established by
2410+the commissioner board not to exceed one hundred fifty dollars
2411+($150) one hundred ninety-eight dollars ($198) accompanying
2412+the application on July September 1 annually.
2413+(e) Upon the commissioner board being satisfied that
2414+the statement and matters which may accompany it the statement
2415+meet the requirements of this article chapter and of its
2416+rules, the commissioner board shall issue or renew the
2417+certificate of authority.
2418+(f) The certificate of authority shall expire annually
2419+on September October 1, unless renewed, or at such other time
2420+or times as the commissioner board may provide by rule.
2421+(g) On or before July 1 of a date adopted by the board
2422+each year, the certificate holder shall file with the
2423+commissioner board in the form prescribed by the commissioner
2424+board a full and true statement as to the activities of any
2425+trust established by it pursuant to this article chapter for
2426+the preceding calendar year.
2427+(h) In addition to any other penalty that may be
2428+provided for under this article chapter, the commissioner
24372429 1177
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24592451 1199
24602452 1200
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2464-1204 SB131 EnrolledSB131 Enrolled
2456+1204 SB131 INTRODUCEDSB131 INTRODUCED
24652457 Page 44
2466-one hundred thirty-two dollars ($132) . Upon receipt of an
2467-application for transfer, the commissioner board may grant a
2468-temporary certificate of authority to the proposed transferee,
2469-based upon criteria established by the commissioner board by
2470-rule, which criteria shall promote the purposes of this
2471-article chapter in protecting the consumer. A temporary
2472-certificate of authority shall expire 60 days after issuance
2473-unless renewed by the commissioner board."
2474-"§27-17A-11.1§34-13-192
2475-(a) On a semi-annual basis, within 45 days after the
2476-end of each second calendar reporting period or before July 1,
2477-each year, the certificate holder shall file a report of its
2478-preneed contract activity on a form or in a format prescribed
2479-by the commissioner board. The information reported shall
2480-include the total number of preneed contracts in force at the
2481-end of the previous reporting period calendar year, the total
2482-number of preneed contracts sold during the reporting period
2483-previous calendar year , the total number of preneed contracts
2484-fulfilled during the reporting period previous calendar year ,
2485-the total number of preneed contracts in force at the end of
2486-the reporting period previous calendar year , and such other
2487-information as may be required by the commissioner board. The
2488-report shall be organized by type of funding including, life
2489-insurance, annuity, trust, letter of credit, or surety bond.
2490-The report shall also provide a certification by the trustee
2491-of the amount of assets held by the trust at the beginning of
2492-the reporting period and at the end of the reporting period,
2493-together with the amount of deposits and withdrawals during
2458+board may levy a fine not to exceed fifty dollars ($50) per
2459+day for each day the certificate holder fails to file its
2460+annual statement, and the commissioner board may levy a fine
2461+not to exceed fifty dollars ($50) per day for each day the
2462+certificate holder fails to file the statement of activities
2463+of the trust. Upon notice to the certificate holder by the
2464+commissioner board that the certificate holder has failed to
2465+file the annual statement or the statement of activities of
2466+the trust, the certificate holder's authority to sell preneed
2467+contracts shall cease while the default continues.
2468+(i) To facilitate uniformity in financial statements
2469+and to facilitate analysis, the commissioner board may by rule
2470+adopt a form for financial statements. The holder of a
2471+certificate of authority may submit a written request to the
2472+commissioner board to exempt the holder from filing financial
2473+statements at renewal. The commissioner board may waive the
2474+requirement for filing a financial statement at renewal if all
2475+of the following are satisfied:
2476+(1) No valid complaint has been filed since the last
2477+examination audit.
2478+(2) No administrative action against the preneed entity
2479+has been instituted since the last examination audit.
2480+(3) The certificate holder certifies that all
2481+outstanding preneed contracts written by the holder since
2482+April 30, 2002, are fully funded in accordance with this
2483+chapter.
2484+(4) The certificate holder certifies that it will fully
2485+fund all preneed contracts with life insurance, annuity, or
24942486 1205
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25112503 1222
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25132505 1224
25142506 1225
25152507 1226
25162508 1227
25172509 1228
25182510 1229
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25222514 Page 45
2523-the reporting period. If a certificate holder shall twice
2524-default in complying with the requirements of this subsection,
2525-the commissioner board may require that the certificate holder
2526-thereafter submit the report within 45 days after the end of
2527-each calendar quarter and shall continue so reporting for a
2528-time to be determined by the commissioner board.
2529-(b) The certificate holder shall maintain a written log
2530-of preneed sales. The log shall be on a form or in a format
2531-prescribed by the commissioner board, shall detail all
2532-information required by the commissioner board, and shall be
2533-available for inspection at any time by the commissioner
2534-board.
2535-(c) Each cemetery authority shall maintain a written
2536-log of the sale of cemetery interment rights. The log shall be
2537-on a form or in a format prescribed by the commissioner board
2538-and shall detail all information required by the commissioner
2539-board.
2540-(d) The board may maintain a statewide database of
2541-preneed contracts reported to the board pursuant to subsection
2542-(a). The board may make information in this database
2543-searchable by the public by means of unique identifiers, or
2544-any other means, that the board determines respects the
2545-privacy of those involved while also protecting consumers from
2546-financial waste by allowing families to determine if a
2547-deceased loved one has an existing preneed contract. Any
2548-preneed consumer who does not wish for his or her information
2549-to appear in this searchable database may opt out by following
2550-a process established by the board. "
2515+will deposit 100 percent of all funds collected on all preneed
2516+contracts in trust within 30 days after the end of the
2517+calendar month in which the funds are collected.
2518+(5) The preneed entity has provided to the department
2519+board in a timely manner all required and requested records.
2520+(6) The preneed entity agrees to file quarterly reports
2521+of its preneed activity on a form or, in a format, and as
2522+often as prescribed by the commissioner board.
2523+(j) The commissioner board may authorize the transfer
2524+of certificates of authority and establish fees for the
2525+transfer in an amount not to exceed one hundred dollars ($100)
2526+one hundred thirty-two dollars ($132) . Upon receipt of an
2527+application for transfer, the commissioner board may grant a
2528+temporary certificate of authority to the proposed transferee,
2529+based upon criteria established by the commissioner board by
2530+rule, which criteria shall promote the purposes of this
2531+article chapter in protecting the consumer. A temporary
2532+certificate of authority shall expire 60 days after issuance
2533+unless renewed by the commissioner board."
2534+"§27-17A-11.1§34-13-192
2535+(a) On a semi-annual basis, within 45 days after the
2536+end of each second calendar reporting period or before July 1,
2537+each year, the certificate holder shall file a report of its
2538+preneed contract activity on a form or in a format prescribed
2539+by the commissioner board. The information reported shall
2540+include the total number of preneed contracts in force at the
2541+end of the previous reporting period calendar year, the total
2542+number of preneed contracts sold during the reporting period
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25522544 1234
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25562548 1238
25572549 1239
25582550 1240
25592551 1241
25602552 1242
25612553 1243
25622554 1244
25632555 1245
25642556 1246
25652557 1247
25662558 1248
25672559 1249
25682560 1250
25692561 1251
25702562 1252
25712563 1253
25722564 1254
25732565 1255
25742566 1256
25752567 1257
25762568 1258
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25792571 Page 46
2580-"§27-17A-12§34-13-193
2581-(a) Preneed contract forms and related forms shall be
2582-filed with and approved by the commissioner board.
2583-(b) Specific disclosure regarding whether, consistent
2584-with the requirements of this chapter, the certificate holder
2585-is placing certain preneed funds received with the contract in
2586-trust, in an annuity, or in insurance, is required in the
2587-preneed contract.
2588-(c) Preneed contracts which have been submitted to the
2589-commissioner board shall be deemed to have been approved by
2590-the commissioner board in the event that the commissioner
2591-board fails to notify the certificate holder that approval has
2592-been denied within 30 days following submission to the
2593-commissioner board."
2594-"§27-17A-13§34-13-194
2595-(a) Except as provided in Sections 27-17A-3 and
2596-27-17A-14 34-13-171 and 34-13-195 , every preneed contract
2597-shall require the monies paid to the seller or trustee to be
2598-placed in trust in accordance with Article 3 Division 3, for
2599-funeral merchandise and services sold by funeral
2600-establishments or third party sellers, or Article 4 Division
2601-4, for cemetery merchandise and services sold by cemetery
2602-authorities.
2603-(b) Although this chapter does not apply to preneed
2604-contracts entered into prior to May 1, 2002, a preneed
2605-provider which contends that a preneed trust fund which was in
2606-effect prior to May 1, 2002, complies with this chapter with
2607-respect to the contracts entered into prior to May 1, 2002,
2572+previous calendar year , the total number of preneed contracts
2573+fulfilled during the reporting period previous calendar year ,
2574+the total number of preneed contracts in force at the end of
2575+the reporting period previous calendar year , and such other
2576+information as may be required by the commissioner board. The
2577+report shall be organized by type of funding including, life
2578+insurance, annuity, trust, letter of credit, or surety bond.
2579+The report shall also provide a certification by the trustee
2580+of the amount of assets held by the trust at the beginning of
2581+the reporting period and at the end of the reporting period,
2582+together with the amount of deposits and withdrawals during
2583+the reporting period. If a certificate holder shall twice
2584+default in complying with the requirements of this subsection,
2585+the commissioner board may require that the certificate holder
2586+thereafter submit the report within 45 days after the end of
2587+each calendar quarter and shall continue so reporting for a
2588+time to be determined by the commissioner board.
2589+(b) The certificate holder shall maintain a written log
2590+of preneed sales. The log shall be on a form or in a format
2591+prescribed by the commissioner board, shall detail all
2592+information required by the commissioner board, and shall be
2593+available for inspection at any time by the commissioner
2594+board.
2595+(c) Each cemetery authority shall maintain a written
2596+log of the sale of cemetery interment rights. The log shall be
2597+on a form or in a format prescribed by the commissioner board
2598+and shall detail all information required by the commissioner
2599+board.
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26122604 1265
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26142606 1267
26152607 1268
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26172609 1270
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26212613 1274
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2637-may provide to the commissioner board documentary proof
2638-thereof. Upon the commissioner board determining that
2639-compliance has been established, the pre-existing preneed
2640-trust fund assets may be merged with or into the trust fund
2641-required under this chapter or continued as the trust fund and
2642-that determination by the commissioner board shall be noted on
2643-the certificate of authority, and thereafter all preneed
2644-contracts covered by the trust fund, including those entered
2645-into prior to May 1, 2002, shall be subject to this chapter."
2646-"§27-17A-14§34-13-195
2647-(a) As an alternative to the trust requirement of
2648-Section 27-17A-13 34-13-194, the details of which are set
2649-forth in Articles 3 and 4 Divisions 3 and 4 , a preneed
2650-provider may, withthe prior approval of the commissioner
2651-board, may purchase a surety bond in an amount not less than
2652-the aggregate value of outstanding liabilities on undelivered
2653-preneed contracts for merchandise, services, and cash
2654-advances. For the purposes of this section, the term
2655-outstanding liabilities means the original retail amount of
2656-services and cash advances and the actual cost to the entity
2657-to provide the undelivered merchandise sold on each contract
2658-written after April 30, 2002. The surety bond shall be in an
2659-amount sufficient to cover the outstanding liability at the
2660-time each contract is executed.
2661-(b) The bond shall be made payable to the State of
2662-Alabama for the benefit of the commissioner board and of all
2663-purchasers of preneed merchandise, services, and cash
2664-advances. The bond shall be issued by an insurance company
2629+(d) The board may maintain a statewide database of
2630+preneed contracts reported to the board pursuant to subsection
2631+(a). The board may make information in this database
2632+searchable by the public by means of unique identifiers, or
2633+any other means, that the board determines respects the
2634+privacy of those involved while also protecting consumers from
2635+financial waste by allowing families to determine if a
2636+deceased loved one has an existing preneed contract. Any
2637+preneed consumer who does not wish for his or her information
2638+to appear in this searchable database may opt out by following
2639+a process established by the board. "
2640+"§27-17A-12§34-13-193
2641+(a) Preneed contract forms and related forms shall be
2642+filed with and approved by the commissioner board.
2643+(b) Specific disclosure regarding whether, consistent
2644+with the requirements of this chapter, the certificate holder
2645+is placing certain preneed funds received with the contract in
2646+trust, in an annuity, or in insurance, is required in the
2647+preneed contract.
2648+(c) Preneed contracts which have been submitted to the
2649+commissioner board shall be deemed to have been approved by
2650+the commissioner board in the event that the commissioner
2651+board fails to notify the certificate holder that approval has
2652+been denied within 30 days following submission to the
2653+commissioner board."
2654+"§27-17A-13§34-13-194
2655+(a) Except as provided in Sections 27-17A-3 and
2656+27-17A-14 34-13-171 and 34-13-195 , every preneed contract
26652657 1289
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2694-licensed in the State of Alabama and authorized to issue
2695-surety bonds and approved by the commissioner board.
2696-(c) The amount of the bond shall be based on a report
2697-documenting the outstanding liabilities of the preneed
2698-provider for the previous calendar quarter and the projected
2699-liability for the immediately following quarter, shall be
2700-prepared by the preneed provider using generally accepted
2701-accounting principles, and shall be signed by the chief
2702-executive officer or chief financial officer of the preneed
2703-provider. The report shall be compiled as of the end of the
2704-preneed provider's fiscal year and updated quarterly.
2705-(d) The amount of the bond shall be increased or
2706-decreased as necessary to correlate with changes in the
2707-outstanding liabilities. Further, the commissioner board may
2708-order the bond to be increased as necessary to correlate with
2709-changes in the outstanding liabilities of bonded contracts due
2710-to increases in the consumer price index.
2711-(e) If the preneed provider fails to maintain a bond
2712-pursuant to this section the preneed provider shall cease the
2713-offering for sale and sale of preneed merchandise, services,
2714-and cash advances as provided by rule of the board .
2715-(f) No surety bond used to comply with this section
2716-shall be canceled or subject to cancellation unless at least
2717-60 days' advance notice thereof, in writing, is filed with the
2718-commissioner, board by the surety company. The cancellation of
2719-the bond shall not relieve the obligation of the surety
2720-company for claims arising out of contracts issued or
2721-otherwise covered before cancellation of the bond. In the
2686+shall require the monies paid to the seller or trustee to be
2687+placed in trust in accordance with Article 3 Division 3, for
2688+funeral merchandise and services sold by funeral
2689+establishments or third party sellers, or Article 4 Division
2690+4, for cemetery merchandise and services sold by cemetery
2691+authorities.
2692+(b) Although this chapter does not apply to preneed
2693+contracts entered into prior to May 1, 2002, a preneed
2694+provider which contends that a preneed trust fund which was in
2695+effect prior to May 1, 2002, complies with this chapter with
2696+respect to the contracts entered into prior to May 1, 2002,
2697+may provide to the commissioner board documentary proof
2698+thereof. Upon the commissioner board determining that
2699+compliance has been established, the pre-existing preneed
2700+trust fund assets may be merged with or into the trust fund
2701+required under this chapter or continued as the trust fund and
2702+that determination by the commissioner board shall be noted on
2703+the certificate of authority, and thereafter all preneed
2704+contracts covered by the trust fund, including those entered
2705+into prior to May 1, 2002, shall be subject to this chapter."
2706+"§27-17A-14§34-13-195
2707+(a) As an alternative to the trust requirement of
2708+Section 27-17A-13 34-13-194, the details of which are set
2709+forth in Articles 3 and 4 Divisions 3 and 4 , a preneed
2710+provider may, withthe prior approval of the commissioner
2711+board, may purchase a surety bond in an amount not less than
2712+the aggregate value of outstanding liabilities on undelivered
2713+preneed contracts for merchandise, services, and cash
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2751-event that notice of termination of the bond is filed with the
2752-commissioner board, the certificate holder insured thereunder
2753-shall, within 30 days of the filing of the notice of
2754-termination with the commissioner board, shall provide the
2755-commissioner board with a replacement bond or with evidence
2756-which is satisfactory to the commissioner board demonstrating
2757-that the provisions of this chapter have has been fully
2758-complied with. If within 30 days of filing of the notice of
2759-termination with the commissioner board no replacement bond
2760-acceptable to the commissioner board or no evidence
2761-satisfactory to the commissioner board demonstrating that the
2762-provisions of this chapter have has been complied with is
2763-filed with the commissioner board, the commissioner board
2764-shall suspend the license of the certificate holder until the
2765-certificate holder files a replacement bond acceptable to the
2766-commissioner board or demonstrates to the satisfaction of the
2767-commissioner board that it has complied with the provisions of
2768-this chapter.
2769-(g) Upon prior approval by the commissioner board, the
2770-preneed provider may file with the commissioner board a letter
2771-of credit in the amount of the outstanding liabilities in lieu
2772-of a surety bond, in the form and subject to the terms and
2773-conditions evidencing the financial responsibility of the
2774-party or parties issuing the letter of credit, and otherwise,
2775-as may be prescribed by the commissioner board."
2776-"§27-17A-15§34-13-196
2777-(a) The commissioner shall board, as often as he or she
2778-may deem deemed necessary, examine shall examine the business
2743+advances. For the purposes of this section, the term
2744+outstanding liabilities means the original retail amount of
2745+services and cash advances and the actual cost to the entity
2746+to provide the undelivered merchandise sold on each contract
2747+written after April 30, 2002. The surety bond shall be in an
2748+amount sufficient to cover the outstanding liability at the
2749+time each contract is executed.
2750+(b) The bond shall be made payable to the State of
2751+Alabama for the benefit of the commissioner board and of all
2752+purchasers of preneed merchandise, services, and cash
2753+advances. The bond shall be issued by an insurance company
2754+licensed in the State of Alabama and authorized to issue
2755+surety bonds and approved by the commissioner board.
2756+(c) The amount of the bond shall be based on a report
2757+documenting the outstanding liabilities of the preneed
2758+provider for the previous calendar quarter and the projected
2759+liability for the immediately following quarter, shall be
2760+prepared by the preneed provider using generally accepted
2761+accounting principles, and shall be signed by the chief
2762+executive officer or chief financial officer of the preneed
2763+provider. The report shall be compiled as of the end of the
2764+preneed provider's fiscal year and updated quarterly.
2765+(d) The amount of the bond shall be increased or
2766+decreased as necessary to correlate with changes in the
2767+outstanding liabilities. Further, the commissioner board may
2768+order the bond to be increased as necessary to correlate with
2769+changes in the outstanding liabilities of bonded contracts due
2770+to increases in the consumer price index.
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28072799 Page 50
2808-of any person writing , or holding himself or herself out to be
2809-writing, preneed contracts under this chapter to the extent
2810-applicable. The examination shall be made by designated
2811-representatives employed or examiners of the Department of
2812-Insurance contracted by the board .
2813-(b) The written report of each examination, when
2814-completed, shall be filed in the office of the commissioner
2815-board and, when so filed, shall not constitute a public
2816-record.
2817-(c) Any person being examined shall produce, upon
2818-request, all records of the person. The designated
2819-representative of the commissioner board may at any time
2820-examine the records and affairs of the person, whether in
2821-connection with a formal examination or not.
2822-(d) The commissioner may board shall waive the
2823-examination requirements of this section if the certificate
2824-holder submits audited financial statements. Upon receipt of a
2825-verifiable complaint, the board may perform a target market
2826-conduct examination as a part of an investigation.
2827-(e) The person examined shall pay the examination
2828-expenses, travel expense , and per diem subsistence allowance
2829-provided for examiners and incurred by the commissioner's
2830-board's representatives or examiners in connection with an
2831-examination in accordance with Section 27-2-25 as prescribed
2832-by rule of the board .
2833-(f) Whenever any special examination of the premises,
2834-facilities, books, or records of a licensee is necessary based
2835-on the failure of the licensee to comply with this chapter or
2800+(e) If the preneed provider fails to maintain a bond
2801+pursuant to this section the preneed provider shall cease the
2802+offering for sale and sale of preneed merchandise, services,
2803+and cash advances as provided by rule of the board .
2804+(f) No surety bond used to comply with this section
2805+shall be canceled or subject to cancellation unless at least
2806+60 days' advance notice thereof, in writing, is filed with the
2807+commissioner, board by the surety company. The cancellation of
2808+the bond shall not relieve the obligation of the surety
2809+company for claims arising out of contracts issued or
2810+otherwise covered before cancellation of the bond. In the
2811+event that notice of termination of the bond is filed with the
2812+commissioner board, the certificate holder insured thereunder
2813+shall, within 30 days of the filing of the notice of
2814+termination with the commissioner board, shall provide the
2815+commissioner board with a replacement bond or with evidence
2816+which is satisfactory to the commissioner board demonstrating
2817+that the provisions of this chapter have has been fully
2818+complied with. If within 30 days of filing of the notice of
2819+termination with the commissioner board no replacement bond
2820+acceptable to the commissioner board or no evidence
2821+satisfactory to the commissioner board demonstrating that the
2822+provisions of this chapter have has been complied with is
2823+filed with the commissioner board, the commissioner board
2824+shall suspend the license of the certificate holder until the
2825+certificate holder files a replacement bond acceptable to the
2826+commissioner board or demonstrates to the satisfaction of the
2827+commissioner board that it has complied with the provisions of
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28642856 Page 51
2865-rule adopted by the board, the board shall charge a fee based
2866-on the cost of the special examination including, but not
2867-limited to, the prorated compensation of board employees
2868-involved in the special examination and any expenses incurred.
2869-(g) If the board finds that a certificate of authority
2870-holder or licensee has failed to operate in accordance with
2871-this chapter and, by their action, has created a deficit of
2872-preneed funds entrusted to them by the consumer, then the
2873-board may:
2874-(1) Bring an action for injunctive relief against the
2875-responsible licensee or the holder of the certificate of
2876-authority in the Circuit Court of Montgomery County.
2877-(2) Issue an emergency suspension of all licenses held
2878-by the holder of the certificate of authority, and its
2879-associated personnel, in accordance with the Administrative
2880-Procedure Act.
2881-(3) Take any other disciplinary action authorized by
2882-this chapter."
2883-"§27-17A-16§34-13-197
2884-(a) A certificate holder shall be considered inactive
2885-upon the acceptance of the surrender of its license by the
2886-commissioner board or upon the nonreceipt by the commissioner
2887-board of the certificate of authority renewal application and
2888-fees.
2889-(b) A certificate holder shall cease all preneed sales
2890-to the public upon becoming inactive. The certificate holder
2891-shall collect and deposit into trust all of the funds paid
2892-toward preneed contracts sold prior to becoming inactive.
2857+this chapter.
2858+(g) Upon prior approval by the commissioner board, the
2859+preneed provider may file with the commissioner board a letter
2860+of credit in the amount of the outstanding liabilities in lieu
2861+of a surety bond, in the form and subject to the terms and
2862+conditions evidencing the financial responsibility of the
2863+party or parties issuing the letter of credit, and otherwise,
2864+as may be prescribed by the commissioner board."
2865+"§27-17A-15§34-13-196
2866+(a) The commissioner shall board, as often as he or she
2867+may deem deemed necessary, examine shall examine the business
2868+of any person writing , or holding himself or herself out to be
2869+writing, preneed contracts under this chapter to the extent
2870+applicable. The examination shall be made by designated
2871+representatives employed or examiners of the Department of
2872+Insurance contracted by the board .
2873+(b) The written report of each examination, when
2874+completed, shall be filed in the office of the commissioner
2875+board and, when so filed, shall not constitute a public
2876+record.
2877+(c) Any person being examined shall produce, upon
2878+request, all records of the person. The designated
2879+representative of the commissioner board may at any time
2880+examine the records and affairs of the person, whether in
2881+connection with a formal examination or not.
2882+(d) The commissioner may board shall waive the
2883+examination requirements of this section if the certificate
2884+holder submits audited financial statements. Upon receipt of a
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2922-(c) Any certificate holder desiring to surrender its
2923-license to the commissioner board shall first do all of the
2924-following:
2925-(1) File notice with the commissioner board.
2926-(2) Submit copies of its existing trust agreements.
2927-(3) Submit a sample copy of each type of preneed
2928-contract sold.
2929-(4) Resolve to the commissioner's satisfaction of the
2930-board all findings and violations resulting from the last
2931-examination conducted.
2932-(5) Pay all outstanding fines and invoices due the
2933-commissioner board.
2934-(6) Submit its current certificate of authority.
2935-(d) Upon receipt of the notice, the commissioner board
2936-shall review the certificate holder's trust funds, trust
2937-agreements, and evidence of all outstanding preneed contracts.
2938-(e) After a review to the commissioner's satisfaction
2939-of the board, the commissioner board shall terminate the
2940-certificate of authority by an order which shall set forth the
2941-conditions of termination established by the commissioner
2942-board to ensure that the preneed funds will be available for
2943-their intended purpose.
2944-(f) The trust fund of the certificate holder shall be
2945-held intact and in trust after the certificate holder has
2946-become inactive, and the funds in that trust shall be
2947-disbursed in accordance with the requirements of the written
2948-contracts until the funds have been exhausted.
2949-(g) The commissioner board shall continue to have
2914+verifiable complaint, the board may perform a target market
2915+conduct examination as a part of an investigation.
2916+(e) The person examined shall pay the examination
2917+expenses, travel expense , and per diem subsistence allowance
2918+provided for examiners and incurred by the commissioner's
2919+board's representatives or examiners in connection with an
2920+examination in accordance with Section 27-2-25 as prescribed
2921+by rule of the board .
2922+(f) Whenever any special examination of the premises,
2923+facilities, books, or records of a licensee is necessary based
2924+on the failure of the licensee to comply with this chapter or
2925+rule adopted by the board, the board shall charge a fee based
2926+on the cost of the special examination including, but not
2927+limited to, the prorated compensation of board employees
2928+involved in the special examination and any expenses incurred.
2929+(g) If the board finds that a certificate of authority
2930+holder or licensee has failed to operate in accordance with
2931+this chapter and, by their action, has created a deficit of
2932+preneed funds entrusted to them by the consumer, then the
2933+board may:
2934+(1) Bring an action for injunctive relief against the
2935+responsible licensee or the holder of the certificate of
2936+authority in the Circuit Court of Montgomery County.
2937+(2) Issue an emergency suspension of all licenses held
2938+by the holder of the certificate of authority, and its
2939+associated personnel, in accordance with the Administrative
2940+Procedure Act.
2941+(3) Take any other disciplinary action authorized by
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2979-jurisdiction over the inactive certificate holder as if the
2980-certificate were active and to require the reports and inspect
2981-the records as the commissioner board deems appropriate so
2982-long as there are funds in trust or preneed contracts that are
2983-not fulfilled.
2984-(h) In addition to any other Other terms of revocation
2985-or suspension ordered pursuant to Chapter 13 of Title 34, the
2986-provisions of this chapter may also apply."
2987-"§27-17A-17§34-13-198
2988-(a) Any dissolution or liquidation of a certificate
2989-holder shall be deemed to be the liquidation of an insurance
2990-company and shall be conducted under the supervision of the
2991-commissioner, who shall have all powers with respect thereto
2992-granted to the commissioner under Chapter 32 with respect to
2993-the liquidation of insurance companies.
2994-(b) The commissioner may apply for an order directing
2995-the commissioner to liquidate a certificate holder upon any
2996-one or more grounds set out in Section 27-32-6 or when, in the
2997-commissioner's opinion, the continued operation of the
2998-certificate holder would be hazardous either to purchasers,
2999-beneficiaries, or to the people of this state.
3000-The board may fine and revoke, suspend, or place on
3001-probation the certificate of authority and the establishment
3002-license of a certificate holder on any of the following
3003-grounds:
3004-(1) The certificate holder is impaired or insolvent.
3005-(2) The certificate holder has refused to submit, or
3006-has withheld, any of its books, records, accounts, or affairs
2971+this chapter."
2972+"§27-17A-16§34-13-197
2973+(a) A certificate holder shall be considered inactive
2974+upon the acceptance of the surrender of its license by the
2975+commissioner board or upon the nonreceipt by the commissioner
2976+board of the certificate of authority renewal application and
2977+fees.
2978+(b) A certificate holder shall cease all preneed sales
2979+to the public upon becoming inactive. The certificate holder
2980+shall collect and deposit into trust all of the funds paid
2981+toward preneed contracts sold prior to becoming inactive.
2982+(c) Any certificate holder desiring to surrender its
2983+license to the commissioner board shall first do all of the
2984+following:
2985+(1) File notice with the commissioner board.
2986+(2) Submit copies of its existing trust agreements.
2987+(3) Submit a sample copy of each type of preneed
2988+contract sold.
2989+(4) Resolve to the commissioner's satisfaction of the
2990+board all findings and violations resulting from the last
2991+examination conducted.
2992+(5) Pay all outstanding fines and invoices due the
2993+commissioner board.
2994+(6) Submit its current certificate of authority.
2995+(d) Upon receipt of the notice, the commissioner board
2996+shall review the certificate holder's trust funds, trust
2997+agreements, and evidence of all outstanding preneed contracts.
2998+(e) After a review to the commissioner's satisfaction
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3036-to examination by the board.
3037-(3) The certificate holder has concealed or removed
3038-records or preneed assets, or both.
3039-(4) The certificate holder has failed to comply with an
3040-order of the board.
3041-(5) The certificate holder has transferred, or
3042-attempted to transfer, substantially its entire property or
3043-business, or has entered into any transaction the effect of
3044-which is to merge substantially its entire property or
3045-business with that of any other certificate holder, person,
3046-corporation, or entity without first having obtained the
3047-written approval of the board.
3048-(6) The certificate holder has willfully violated its
3049-articles of incorporation or any law of this state, including
3050-any rule of the board.
3051-(7) The certificate holder has an officer, director, or
3052-manager who has refused to be examined under oath concerning
3053-the affairs of the certificate holder.
3054-(8) If the board determines that the continued preneed
3055-sales of the certificate holder would be hazardous to
3056-purchasers, beneficiaries, or residents of this state. "
3057-"§27-17A-18§34-13-199
3058-(a) All individuals who offer preneed contracts to the
3059-public, or who execute preneed contracts on behalf of a
3060-certificate holder, shall be registered with the commissioner
3061-board as preneed sales agents, pursuant to this article
3062-chapter.
3063-(b) All preneed sales agents and funeral directors
3028+of the board, the commissioner board shall terminate the
3029+certificate of authority by an order which shall set forth the
3030+conditions of termination established by the commissioner
3031+board to ensure that the preneed funds will be available for
3032+their intended purpose.
3033+(f) The trust fund of the certificate holder shall be
3034+held intact and in trust after the certificate holder has
3035+become inactive, and the funds in that trust shall be
3036+disbursed in accordance with the requirements of the written
3037+contracts until the funds have been exhausted.
3038+(g) The commissioner board shall continue to have
3039+jurisdiction over the inactive certificate holder as if the
3040+certificate were active and to require the reports and inspect
3041+the records as the commissioner board deems appropriate so
3042+long as there are funds in trust or preneed contracts that are
3043+not fulfilled.
3044+(h) In addition to any other Other terms of revocation
3045+or suspension ordered pursuant to Chapter 13 of Title 34, the
3046+provisions of this chapter may also apply."
3047+"§27-17A-17§34-13-198
3048+(a) Any dissolution or liquidation of a certificate
3049+holder shall be deemed to be the liquidation of an insurance
3050+company and shall be conducted under the supervision of the
3051+commissioner, who shall have all powers with respect thereto
3052+granted to the commissioner under Chapter 32 with respect to
3053+the liquidation of insurance companies.
3054+(b) The commissioner may apply for an order directing
3055+the commissioner to liquidate a certificate holder upon any
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30923084 Page 55
3093-acting as preneed sales agents shall be affiliated with the
3094-certificate holder that they are representing.
3095-(c) A certificate holder shall be responsible for the
3096-activities of all preneed sales agents and all funeral
3097-directors acting as preneed sales agents, who are affiliated
3098-with the certificate holder and who perform any type of
3099-preneed-related activity on behalf of the certificate holder.
3100-In addition to the preneed sales agents and funeral directors
3101-acting as preneed sales agents, each certificate holder shall
3102-also be subject to discipline if its preneed sales agents or
3103-funeral directors acting as preneed sales agents violate any
3104-provision of this article chapter.
3105-(d) A preneed sales agent and a funeral director acting
3106-as a preneed sales agent shall be authorized to may sell,
3107-offer, and execute preneed contracts on behalf of all properly
3108-licensed entities owned or operated by the sponsoring
3109-certificate holder.
3110-(e) An individual may begin functioning operating as a
3111-preneed sales agent as soon as a completed application for
3112-registration, as set forth in subsection (g), is sent to the
3113-commissioner approved by the board .
3114-(f)(1) The qualifications for a preneed sales agent are
3115-as follows:
3116-(1)a. The applicant must be at least 18 years of age.
3117-(2)b. The applicant must be in good standing with the
3118-commissioner board.
3119-(3)c. The applicant must may not have any felony or
3120-misdemeanor convictions that relate to any activity regulated
3085+one or more grounds set out in Section 27-32-6 or when, in the
3086+commissioner's opinion, the continued operation of the
3087+certificate holder would be hazardous either to purchasers,
3088+beneficiaries, or to the people of this state.
3089+The board may fine and revoke, suspend, or place on
3090+probation the certificate of authority and the establishment
3091+license of a certificate holder on any of the following
3092+grounds:
3093+(1) The certificate holder is impaired or insolvent.
3094+(2) The certificate holder has refused to submit, or
3095+has withheld, any of its books, records, accounts, or affairs
3096+to examination by the board.
3097+(3) The certificate holder has concealed or removed
3098+records or preneed assets, or both.
3099+(4) The certificate holder has failed to comply with an
3100+order of the board.
3101+(5) The certificate holder has transferred, or
3102+attempted to transfer, substantially its entire property or
3103+business, or has entered into any transaction the effect of
3104+which is to merge substantially its entire property or
3105+business with that of any other certificate holder, person,
3106+corporation, or entity without first having obtained the
3107+written approval of the board.
3108+(6) The certificate holder has willfully violated its
3109+articles of incorporation or any law of this state, including
3110+any rule of the board.
3111+(7) The certificate holder has an officer, director, or
3112+manager who has refused to be examined under oath concerning
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31493141 Page 56
3150-by this chapter or a crime involving moral turpitude, as
3151-defined by this chapter .
3152-d. The applicant shall be of good moral character and
3153-submit to a criminal history background check pursuant to
3154-subdivision (2).
3155-(2) An applicant for licensure as a preneed sales agent
3156-shall submit to the board, on a form sworn to by the
3157-applicant, his or her name, date of birth, Social Security
3158-number, and two complete sets of fingerprints for completion
3159-of a criminal history background check. The board shall submit
3160-the fingerprints to the Alabama State Law Enforcement Agency
3161-for a state criminal history background check. The
3162-fingerprints shall be forwarded by the agency to the Federal
3163-Bureau of Investigation for a national criminal history
3164-background check. Costs associated with conducting a criminal
3165-history background check shall be paid by the applicant. The
3166-board shall keep information received pursuant to this
3167-subdivision confidential, except that information received and
3168-relied upon in denying the issuance of a certificate of
3169-authority may be disclosed if necessary to support the denial.
3170-All character information, including the information obtained
3171-through the criminal history background checks, shall be
3172-considered in licensure decisions to the extent permissible by
3173-all applicable laws.
3174-(g) An application for registration as a preneed sales
3175-agent shall be submitted to the commissioner board with an
3176-application fee determined by the commissioner board, but not
3177-to exceed twenty-five dollars ($25) thirty-three dollars
3142+the affairs of the certificate holder.
3143+(8) If the board determines that the continued preneed
3144+sales of the certificate holder would be hazardous to
3145+purchasers, beneficiaries, or residents of this state. "
3146+"§27-17A-18§34-13-199
3147+(a) All individuals who offer preneed contracts to the
3148+public, or who execute preneed contracts on behalf of a
3149+certificate holder, shall be registered with the commissioner
3150+board as preneed sales agents, pursuant to this article
3151+chapter.
3152+(b) All preneed sales agents and funeral directors
3153+acting as preneed sales agents shall be affiliated with the
3154+certificate holder that they are representing.
3155+(c) A certificate holder shall be responsible for the
3156+activities of all preneed sales agents and all funeral
3157+directors acting as preneed sales agents, who are affiliated
3158+with the certificate holder and who perform any type of
3159+preneed-related activity on behalf of the certificate holder.
3160+In addition to the preneed sales agents and funeral directors
3161+acting as preneed sales agents, each certificate holder shall
3162+also be subject to discipline if its preneed sales agents or
3163+funeral directors acting as preneed sales agents violate any
3164+provision of this article chapter.
3165+(d) A preneed sales agent and a funeral director acting
3166+as a preneed sales agent shall be authorized to may sell,
3167+offer, and execute preneed contracts on behalf of all properly
3168+licensed entities owned or operated by the sponsoring
3169+certificate holder.
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32063198 Page 57
3207-($33), by the certificate holder in a form that has been
3208-prescribed by commissioner board rule and approved by the
3209-commissioner. The application shall contain, at a minimum, all
3210-of the following:
3211-(1) The name, address, Social Security number, and date
3212-of birth of the applicant and any other information as the
3213-commissioner board may reasonably require of the applicant.
3214-(2) The name, address, and license number of the
3215-sponsoring certificate holder.
3216-(3) A representation, signed by the applicant, that the
3217-applicant meets the requirements set forth in subsection (f).
3218-(4) A representation, signed by the certificate holder,
3219-that the applicant is authorized to offer, sell, and sign
3220-preneed contracts on behalf of the certificate holder, and
3221-that the certificate holder has trained the applicant in the
3222-provisions of this article chapter relating to preneed sales,
3223-the provisions of the certificate holder's preneed contract,
3224-and the nature of the merchandise, services, or burial rights
3225-sold by the certificate holder.
3226-(5) A statement indicating whether the applicant has
3227-any type of working or agency relationship with any other
3228-certificate holder or insurance company.
3229-(h) An individual may be registered as a preneed sales
3230-agent on behalf of more than one certificate holder, provided
3231-that the individual has received the written consent of all
3232-certificate holders.
3233-(i) A certificate holder who has registered a preneed
3234-sales agent shall notify the commissioner board within 30 days
3199+(e) An individual may begin functioning operating as a
3200+preneed sales agent as soon as a completed application for
3201+registration, as set forth in subsection (g), is sent to the
3202+commissioner approved by the board .
3203+(f)(1) The qualifications for a preneed sales agent are
3204+as follows:
3205+(1)a. The applicant must be at least 18 years of age.
3206+(2)b. The applicant must be in good standing with the
3207+commissioner board.
3208+(3)c. The applicant must may not have any felony or
3209+misdemeanor convictions that relate to any activity regulated
3210+by this chapter or a crime involving moral turpitude, as
3211+defined by this chapter .
3212+d. The applicant shall be of good moral character and
3213+submit to a criminal history background check pursuant to
3214+subdivision (2).
3215+(2) An applicant for licensure as a preneed sales agent
3216+shall submit to the board, on a form sworn to by the
3217+applicant, his or her name, date of birth, Social Security
3218+number, and two complete sets of fingerprints for completion
3219+of a criminal history background check. The board shall submit
3220+the fingerprints to the Alabama State Law Enforcement Agency
3221+for a state criminal history background check. The
3222+fingerprints shall be forwarded by the agency to the Federal
3223+Bureau of Investigation for a national criminal history
3224+background check. Costs associated with conducting a criminal
3225+history background check shall be paid by the applicant. The
3226+board shall keep information received pursuant to this
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3264-after the individual's status as a preneed sales agent has
3265-been terminated.
3266-(j) Upon receipt approval of an application that
3267-complies with all of the requirements of subsection (g), the
3268-commissioner board shall register the applicant. The
3269-commissioner shall by rule board, in accordance with this
3270-chapter, shall provide for annual renewal of registration upon
3271-receipt of a renewal application and a renewal fee not to
3272-exceed twenty-five dollars ($25) thirty-three dollars ($33) as
3273-set by the commissioner board."
3274-"§27-17A-19§34-13-200
3275-No person shall engage in this state in any trade
3276-practice which is addressed in the Alabama Deceptive Trade
3277-Practices Act (Section 8-19-1 et seq.) Chapter 19 of Title 8 ,
3278-or as determined pursuant to this chapter to be, an unfair
3279-method of competition or an unfair or deceptive act or
3280-practice."
3281-"§27-17A-20§34-13-201
3282-(a) Whenever the commissioner board has reason to
3283-believe that any person has engaged, or is engaging, in this
3284-state in any unfair method of competition or any unfair or
3285-deceptive act or practice as defined in this article chapter,
3286-or is engaging in the sale of preneed contracts without being
3287-properly licensed as required by this article chapter, or is
3288-otherwise acting in violation of this chapter, and that a
3289-proceeding by the commissioner board in respect thereto would
3290-be in the interest of the public, the commissioner board shall
3291-institute a proceeding in accordance with this section.
3256+subdivision confidential, except that information received and
3257+relied upon in denying the issuance of a certificate of
3258+authority may be disclosed if necessary to support the denial.
3259+All character information, including the information obtained
3260+through the criminal history background checks, shall be
3261+considered in licensure decisions to the extent permissible by
3262+all applicable laws.
3263+(g) An application for registration as a preneed sales
3264+agent shall be submitted to the commissioner board with an
3265+application fee determined by the commissioner board, but not
3266+to exceed twenty-five dollars ($25) thirty-three dollars
3267+($33), by the certificate holder in a form that has been
3268+prescribed by commissioner board rule and approved by the
3269+commissioner. The application shall contain, at a minimum, all
3270+of the following:
3271+(1) The name, address, Social Security number, and date
3272+of birth of the applicant and any other information as the
3273+commissioner board may reasonably require of the applicant.
3274+(2) The name, address, and license number of the
3275+sponsoring certificate holder.
3276+(3) A representation, signed by the applicant, that the
3277+applicant meets the requirements set forth in subsection (f).
3278+(4) A representation, signed by the certificate holder,
3279+that the applicant is authorized to offer, sell, and sign
3280+preneed contracts on behalf of the certificate holder, and
3281+that the certificate holder has trained the applicant in the
3282+provisions of this article chapter relating to preneed sales,
3283+the provisions of the certificate holder's preneed contract,
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3321-(b) A statement of charges, notice, or order or other
3322-process under this chapter may be served by anyone duly
3323-authorized by the commissioner board. Service may be made
3324-either in the manner provided by law for service of process in
3325-civil actions or by certifying and mailing a copy of the
3326-statement to the person affected by the statement, notice, or
3327-order or other process at his or her or its residence or
3328-principal office or place of business. The verified return by
3329-the person so serving the statement, notice, or order or other
3330-process, setting forth the manner of the service, shall be
3331-proof of the service; and the return postcard receipt for the
3332-statement, notice, or order or other process, certified and
3333-mailed as provided in this subsection, shall be proof of
3334-service of the statement, notice, or order or other process.
3335-(c) The commissioner board shall conduct or cause to
3336-have conducted a hearing in accordance with Article 1 of
3337-Chapter 2 this chapter, and shall, during the conduct of the
3338-hearing, have those powers necessary to enforce this chapter
3339-and rules of the board ; however, the penalties for failure to
3340-comply with a subpoena or with an order directing discovery
3341-shall be limited to a fine not to exceed one thousand dollars
3342-($1,000) per violation. In accordance with Section 36-12-40,
3343-evidence introduced and presented in a hearing conducted under
3344-this chapter shall be deemed a public writing. "
3345-"§27-17A-21§34-13-202
3346-(a) If the commissioner board finds that one or more
3347-grounds exist for the discretionary suspension or revocation
3348-of a certificate of authority or establishment license issued
3313+and the nature of the merchandise, services, or burial rights
3314+sold by the certificate holder.
3315+(5) A statement indicating whether the applicant has
3316+any type of working or agency relationship with any other
3317+certificate holder or insurance company.
3318+(h) An individual may be registered as a preneed sales
3319+agent on behalf of more than one certificate holder, provided
3320+that the individual has received the written consent of all
3321+certificate holders.
3322+(i) A certificate holder who has registered a preneed
3323+sales agent shall notify the commissioner board within 30 days
3324+after the individual's status as a preneed sales agent has
3325+been terminated.
3326+(j) Upon receipt approval of an application that
3327+complies with all of the requirements of subsection (g), the
3328+commissioner board shall register the applicant. The
3329+commissioner shall by rule board, in accordance with this
3330+chapter, shall provide for annual renewal of registration upon
3331+receipt of a renewal application and a renewal fee not to
3332+exceed twenty-five dollars ($25) thirty-three dollars ($33) as
3333+set by the commissioner board."
3334+"§27-17A-19§34-13-200
3335+No person shall engage in this state in any trade
3336+practice which is addressed in the Alabama Deceptive Trade
3337+Practices Act (Section 8-19-1 et seq.) Chapter 19 of Title 8 ,
3338+or as determined pursuant to this chapter to be, an unfair
3339+method of competition or an unfair or deceptive act or
3340+practice."
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3378-under this article chapter, the commissioner may board, in
3379-lieu of the suspension or revocation, may impose a fine upon
3380-the certificate holder in an amount not to exceed one thousand
3381-dollars ($1,000) for each nonwillful violation and in an
3382-amount not to exceed ten thousand dollars ($10,000) for each
3383-willful violation.
3384-(b) The commissioner board may grant not more than 30
3385-days from the date of the order for the payment of any fine."
3386-"§27-17A-22§34-13-203
3387-(a)(1) A person who knowingly receives payments for a
3388-preneed contract without having a valid certificate of
3389-authority:
3390-a. Commits a Class B felony , punishable as provided by
3391-law, as to each contract on which the payments collected equal
3392-or exceed, in the aggregate, two thousand five hundred dollars
3393-($2,500).
3394-b. Commits a Class C felony , punishable as provided by
3395-law, as to each contract on which the payments collected are
3396-between, in the aggregate, five hundred dollars ($500) and two
3397-thousand five hundred dollars ($2,500).
3398-c. Commits a Class A misdemeanor , punishable as
3399-provided by law, as to each contract on which the payments
3400-collected do not exceed, in the aggregate, five hundred
3401-dollars ($500).
3402-(2) In addition to the criminal penalty imposed under
3403-subdivision (1), upon conviction of an offense under
3404-subdivision (1), a person may not thereafter obtain a
3405-certificate of authority or register as a preneed sales agent.
3370+"§27-17A-20§34-13-201
3371+(a) Whenever the commissioner board has reason to
3372+believe that any person has engaged, or is engaging, in this
3373+state in any unfair method of competition or any unfair or
3374+deceptive act or practice as defined in this article chapter,
3375+or is engaging in the sale of preneed contracts without being
3376+properly licensed as required by this article chapter, or is
3377+otherwise acting in violation of this chapter, and that a
3378+proceeding by the commissioner board in respect thereto would
3379+be in the interest of the public, the commissioner board shall
3380+institute a proceeding in accordance with this section.
3381+(b) A statement of charges, notice, or order or other
3382+process under this chapter may be served by anyone duly
3383+authorized by the commissioner board. Service may be made
3384+either in the manner provided by law for service of process in
3385+civil actions or by certifying and mailing a copy of the
3386+statement to the person affected by the statement, notice, or
3387+order or other process at his or her or its residence or
3388+principal office or place of business. The verified return by
3389+the person so serving the statement, notice, or order or other
3390+process, setting forth the manner of the service, shall be
3391+proof of the service; and the return postcard receipt for the
3392+statement, notice, or order or other process, certified and
3393+mailed as provided in this subsection, shall be proof of
3394+service of the statement, notice, or order or other process.
3395+(c) The commissioner board shall conduct or cause to
3396+have conducted a hearing in accordance with Article 1 of
3397+Chapter 2 this chapter, and shall, during the conduct of the
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3435-(b)(1) A person who willfully fails to timely deposit
3436-the amount required to be so deposited under this chapter in a
3437-preneed merchandise and services trust or endowment care
3438-trust:
3427+hearing, have those powers necessary to enforce this chapter
3428+and rules of the board ; however, the penalties for failure to
3429+comply with a subpoena or with an order directing discovery
3430+shall be limited to a fine not to exceed one thousand dollars
3431+($1,000) per violation. In accordance with Section 36-12-40,
3432+evidence introduced and presented in a hearing conducted under
3433+this chapter shall be deemed a public writing. "
3434+"§27-17A-21§34-13-202
3435+(a) If the commissioner board finds that one or more
3436+grounds exist for the discretionary suspension or revocation
3437+of a certificate of authority or establishment license issued
3438+under this article chapter, the commissioner may board, in
3439+lieu of the suspension or revocation, may impose a fine upon
3440+the certificate holder in an amount not to exceed one thousand
3441+dollars ($1,000) for each nonwillful violation and in an
3442+amount not to exceed ten thousand dollars ($10,000) for each
3443+willful violation.
3444+(b) The commissioner board may grant not more than 30
3445+days from the date of the order for the payment of any fine."
3446+"§27-17A-22§34-13-203
3447+(a)(1) A person who knowingly receives payments for a
3448+preneed contract without having a valid certificate of
3449+authority:
34393450 a. Commits a Class B felony , punishable as provided by
3440-law, as to each contract on which the amount due for deposit
3441-in trust equals or exceeds, in the aggregate, two thousand
3442-five hundred dollars ($2,500).
3451+law, as to each contract on which the payments collected equal
3452+or exceed, in the aggregate, two thousand five hundred dollars
3453+($2,500).
34433454 b. Commits a Class C felony , punishable as provided by
3444-law, as to each contract on which the amount due for deposit
3445-in trust is less than, in the aggregate, two thousand five
3446-hundred dollars ($2,500).
3447-(2) In addition to the criminal penalty imposed under
3448-subdivision (1), upon conviction of an offense under
3449-subdivision (1), the certificate of authority or preneed sales
3450-agent registration held by the person shall be automatically
3451-revoked and the person may not thereafter obtain a certificate
3452-of authority or register as a preneed sales agent.
3453-(c)(1) A person who knowingly withdraws funds or assets
3454-from a preneed merchandise and services trust or endowment
3455-care trust in a manner or under circumstances not authorized
3456-by this chapter or rule of the board :
3457-a. Commits a Class B felony , punishable as provided by
3458-law, if the aggregate amount withdrawn in any single
3459-transaction or series of related transactions equals or
3460-exceeds two thousand five hundred dollars ($2,500).
3461-b. Commits a Class C felony , punishable as provided by
3462-law, if the aggregate amount withdrawn in any single
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3492-transaction or series of related transactions is less than two
3484+law, as to each contract on which the payments collected are
3485+between, in the aggregate, five hundred dollars ($500) and two
34933486 thousand five hundred dollars ($2,500).
3487+c. Commits a Class A misdemeanor , punishable as
3488+provided by law, as to each contract on which the payments
3489+collected do not exceed, in the aggregate, five hundred
3490+dollars ($500).
3491+(2) In addition to the criminal penalty imposed under
3492+subdivision (1), upon conviction of an offense under
3493+subdivision (1), a person may not thereafter obtain a
3494+certificate of authority or register as a preneed sales agent.
3495+(b)(1) A person who willfully fails to timely deposit
3496+the amount required to be so deposited under this chapter in a
3497+preneed merchandise and services trust or endowment care
3498+trust:
3499+a. Commits a Class B felony , punishable as provided by
3500+law, as to each contract on which the amount due for deposit
3501+in trust equals or exceeds, in the aggregate, two thousand
3502+five hundred dollars ($2,500).
3503+b. Commits a Class C felony , punishable as provided by
3504+law, as to each contract on which the amount due for deposit
3505+in trust is less than, in the aggregate, two thousand five
3506+hundred dollars ($2,500).
34943507 (2) In addition to the criminal penalty imposed under
34953508 subdivision (1), upon conviction of an offense under
34963509 subdivision (1), the certificate of authority or preneed sales
34973510 agent registration held by the person shall be automatically
34983511 revoked and the person may not thereafter obtain a certificate
3499-of authority or register as a preneed sales agent.
3500-(d) A person commits a Class C felony , punishable as
3501-provided by law, if any of the following occur:
3502-(1) The person knowingly delivers to the commissioner
3503-board any official form, report, record, data, or other
3504-document required by the commissioner board containing a false
3505-statement or false information concerning a matter material to
3506-the commissioner board in the exercise of his or her its
3507-authority to administer and enforce this chapter.
3508-(2) Incident to, or during the course of, an
3509-examination, inspection, investigation, or other inquiry
3510-authorized by this chapter, the person knowingly makes
3511-available to a representative of the commissioner board any
3512-official form, report, record, data, or other document
3513-required by the commissioner board containing a false
3514-statement or false information concerning a matter material to
3515-the purpose of the examination, inspection, investigation, or
3516-inquiry.
3517-(3) With respect to the business records of a person
3518-engaging in, or who has at any time engaged in, the sale of a
3519-preneed contract, a person, with a purpose to use deception as
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35483540 Page 63
3549-defined in subdivision (1) of Section 13A-8-1, makes false
3550-entries in such the records or alters, erases, obliterates,
3551-deletes, or removes a correct entry in such the records, fails
3552-to make a correct entry in such the records, or prevents the
3553-making of a correct entry, or causes the omission of a correct
3554-entry in such the records.
3555-(e) Except as otherwise provided in this section
3556-chapter, the willful violation of this chapter is a Class A
3557-misdemeanor, punishable as provided by law .
3558-(f) The duties and authority of the insurance fraud
3559-unit created under Section 27-12A-40, including the powers of
3560-the unit’s investigators, shall extend to investigations into
3561-violations of this section. "
3562-"§27-17A-23§34-13-204
3563-The commissioner board, the Attorney General, or any
3564-person may bring a civil action against a person or company
3565-violating this chapter or rule of the board in Montgomery
3566-County or the appropriate court of the county in which the
3567-alleged violator resides or has his or her or its principal
3568-place of business or in the county wherein the alleged
3569-violation occurred. Upon adverse adjudication, the defendant
3570-shall be liable for actual damages caused by the violation.
3571-The court, as provided by common law, may award punitive
3572-damages and may provide equitable relief as it deems proper or
3573-necessary, including enjoining the defendant from further
3574-violation of this chapter or rule of the board ."
3575-"§27-17A-24§34-13-205
3576-The provisions of this chapter are cumulative to rights
3541+of authority or register as a preneed sales agent.
3542+(c)(1) A person who knowingly withdraws funds or assets
3543+from a preneed merchandise and services trust or endowment
3544+care trust in a manner or under circumstances not authorized
3545+by this chapter or rule of the board :
3546+a. Commits a Class B felony , punishable as provided by
3547+law, if the aggregate amount withdrawn in any single
3548+transaction or series of related transactions equals or
3549+exceeds two thousand five hundred dollars ($2,500).
3550+b. Commits a Class C felony , punishable as provided by
3551+law, if the aggregate amount withdrawn in any single
3552+transaction or series of related transactions is less than two
3553+thousand five hundred dollars ($2,500).
3554+(2) In addition to the criminal penalty imposed under
3555+subdivision (1), upon conviction of an offense under
3556+subdivision (1), the certificate of authority or preneed sales
3557+agent registration held by the person shall be automatically
3558+revoked and the person may not thereafter obtain a certificate
3559+of authority or register as a preneed sales agent.
3560+(d) A person commits a Class C felony , punishable as
3561+provided by law, if any of the following occur:
3562+(1) The person knowingly delivers to the commissioner
3563+board any official form, report, record, data, or other
3564+document required by the commissioner board containing a false
3565+statement or false information concerning a matter material to
3566+the commissioner board in the exercise of his or her its
3567+authority to administer and enforce this chapter.
3568+(2) Incident to, or during the course of, an
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3606-under the general civil and common law, and no action of the
3607-commissioner board may abrogate the rights to damages or other
3608-relief in any court."
3609-"§27-17A-25§34-13-206
3610-(a) All fees collected by the commissioner board
3611-pursuant to this chapter shall be deposited into the State
3612-Treasury to the credit of the Insurance Department Alabama
3613-State Funeral Service Fund.
3614-(b) All fines collected by the commissioner board
3615-pursuant to this chapter shall be deposited into the State
3616-Treasury to the credit of the State General Alabama State
3617-Funeral Service Fund.
3618-(c) The commissioner board may use funds available from
3619-any source including, but not limited to, grants,
3620-appropriations, and gifts, for any purpose in the enforcement
3621-of this chapter."
3622-Section 6. The following heading is added to Division
3623-3, commencing with Section 34-13-230, of Article 5, Chapter
3624-13, Title 34, Code of Alabama 1975:
3625-"Division 3. Funeral Merchandise and Services Trust
3626-Fund."
3627-Section 7. Sections 27-17A-30, 27-17A-31, 27-17A-32,
3628-27-17A-33, and 27-17A-34 of the Code of Alabama 1975, are
3629-amended and renumbered as Division 3 of Article 5 of Chapter
3630-13 of Title 34, Code of Alabama 1975, to read as follows:
3631-"§27-17A-30§34-13-230
3632-To comply with the trust requirement of subsection (a)
3633-of Section 27-17A-13 34-13-194, all certificate holders
3598+examination, inspection, investigation, or other inquiry
3599+authorized by this chapter, the person knowingly makes
3600+available to a representative of the commissioner board any
3601+official form, report, record, data, or other document
3602+required by the commissioner board containing a false
3603+statement or false information concerning a matter material to
3604+the purpose of the examination, inspection, investigation, or
3605+inquiry.
3606+(3) With respect to the business records of a person
3607+engaging in, or who has at any time engaged in, the sale of a
3608+preneed contract, a person, with a purpose to use deception as
3609+defined in subdivision (1) of Section 13A-8-1, makes false
3610+entries in such the records or alters, erases, obliterates,
3611+deletes, or removes a correct entry in such the records, fails
3612+to make a correct entry in such the records, or prevents the
3613+making of a correct entry, or causes the omission of a correct
3614+entry in such the records.
3615+(e) Except as otherwise provided in this section
3616+chapter, the willful violation of this chapter is a Class A
3617+misdemeanor, punishable as provided by law .
3618+(f) The duties and authority of the insurance fraud
3619+unit created under Section 27-12A-40, including the powers of
3620+the unit’s investigators, shall extend to investigations into
3621+violations of this section. "
3622+"§27-17A-23§34-13-204
3623+The commissioner board, the Attorney General, or any
3624+person may bring a civil action against a person or company
3625+violating this chapter or rule of the board in Montgomery
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3663-providing preneed contracts for funeral services or funeral
3664-merchandise shall be subject to this article chapter."
3665-"§27-17A-31§34-13-231
3666-(a) Any person who is paid, collects, or receives funds
3667-under a preneed contract for funeral services or funeral
3668-merchandise to be funded by trust shall deposit in trust an
3669-amount at least equal to the sum of 75 percent of the amount
3670-collected on the purchase price for all funeral services and
3671-funeral merchandise sold, transportation, and facilities
3672-rented other than outer burial containers, 60 percent of the
3673-amount collected on the purchase price for outer burial
3674-containers, 110 percent of the wholesale cost of memorials
3675-from the amount collected on the purchase price of memorials,
3676-and 100 percent of the amount collected on the purchase price
3677-for all cash advance items sold.
3678-(b) All deposits shall be made within 30 days after the
3679-end of the calendar month in which the preneed contract is
3680-paid in full, unless, prior to that time, all liabilities of
3681-the seller under the preneed contract to deliver the specific
3682-funeral merchandise or funeral services, or both, or the
3683-specific cash advances, identified by the preneed provider as
3684-properly allocated to the payment, have been satisfied, or the
3685-preneed contract is validly cancelled.
3686-(c) The trustee shall take title to the property
3687-conveyed to the trust for the purpose of investing,
3688-protecting, and conserving it for the certificate holder;
3689-collecting income; and distributing the principal and income
3690-as prescribed in this article chapter.
3655+County or the appropriate court of the county in which the
3656+alleged violator resides or has his or her or its principal
3657+place of business or in the county wherein the alleged
3658+violation occurred. Upon adverse adjudication, the defendant
3659+shall be liable for actual damages caused by the violation.
3660+The court, as provided by common law, may award punitive
3661+damages and may provide equitable relief as it deems proper or
3662+necessary, including enjoining the defendant from further
3663+violation of this chapter or rule of the board ."
3664+"§27-17A-24§34-13-205
3665+The provisions of this chapter are cumulative to rights
3666+under the general civil and common law, and no action of the
3667+commissioner board may abrogate the rights to damages or other
3668+relief in any court."
3669+"§27-17A-25§34-13-206
3670+(a) All fees collected by the commissioner board
3671+pursuant to this chapter shall be deposited into the State
3672+Treasury to the credit of the Insurance Department Alabama
3673+State Funeral Service Fund.
3674+(b) All fines collected by the commissioner board
3675+pursuant to this chapter shall be deposited into the State
3676+Treasury to the credit of the State General Alabama State
3677+Funeral Service Fund.
3678+(c) The commissioner board may use funds available from
3679+any source including, but not limited to, grants,
3680+appropriations, and gifts, for any purpose in the enforcement
3681+of this chapter."
3682+Section 6. The following heading is added to Division
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3720-(d) The certificate holder is prohibited from sharing
3721-in the discharge of these responsibilities, except that the
3722-certificate holder may appoint an adviser to the trustee or
3723-elect tax free investments. Nothing in this chapter shall
3724-prohibit a trustee from electing the qualified funeral trust
3725-option under the Internal Revenue Code.
3726-(e) The trust agreement shall be submitted to the
3727-commissioner board for approval and filing.
3728-(f) The funds shall be held in trust, both as to
3729-principal and income earned thereon, and shall remain intact,
3730-except that the cost of the operation of the trust or trust
3731-account authorized by this section may be deducted from the
3732-income earned thereon.
3733-(g) The contract purchaser shall have no interest
3734-whatsoever in, or power whatsoever over, funds deposited in
3735-trust pursuant to this section.
3736-(h) In no event may such the funds be loaned to a
3737-certificate holder, an affiliate of a certificate holder, or
3738-any person directly or indirectly engaged in the burial,
3739-funeral home, or cemetery business. Furthermore, the
3740-certificate holder's interest in the trust shall not be
3741-pledged as collateral for any loans, debts, or liabilities of
3742-the certificate holder and shall not be transferred to any
3743-person without the prior written approval from the
3744-commissioner board and the trustee. Even though the
3745-certificate holder shall be deemed and treated as the settlor
3746-and beneficiary of the trust for all purposes, all of the
3747-trust funds are exempt from all claims of creditors of the
3712+3, commencing with Section 34-13-230, of Article 5, Chapter
3713+13, Title 34, Code of Alabama 1975:
3714+"Division 3. Funeral Merchandise and Services Trust
3715+Fund."
3716+Section 7. Sections 27-17A-30, 27-17A-31, 27-17A-32,
3717+27-17A-33, and 27-17A-34 of the Code of Alabama 1975, are
3718+amended and renumbered as Division 3 of Article 5 of Chapter
3719+13 of Title 34, Code of Alabama 1975, to read as follows:
3720+"§27-17A-30§34-13-230
3721+To comply with the trust requirement of subsection (a)
3722+of Section 27-17A-13 34-13-194, all certificate holders
3723+providing preneed contracts for funeral services or funeral
3724+merchandise shall be subject to this article chapter."
3725+"§27-17A-31§34-13-231
3726+(a) Any person who is paid, collects, or receives funds
3727+under a preneed contract for funeral services or funeral
3728+merchandise to be funded by trust shall deposit in trust an
3729+amount at least equal to the sum of 75 percent of the amount
3730+collected on the purchase price for all funeral services and
3731+funeral merchandise sold, transportation, and facilities
3732+rented other than outer burial containers, 60 percent of the
3733+amount collected on the purchase price for outer burial
3734+containers, 110 percent of the wholesale cost of memorials
3735+from the amount collected on the purchase price of memorials,
3736+and 100 percent of the amount collected on the purchase price
3737+for all cash advance items sold.
3738+(b) All deposits shall be made within 30 days after the
3739+end of the calendar month in which the preneed contract is
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3777-certificate holder except as to the claims of the contract
3778-purchaser, his or her representative, or the commissioner
3779-board.
3780-(i) For all preneed contracts written or entered into
3781-on or after January 1, 2015, all required deposits in trust
3782-shall commence not later than 30 days after the end of the
3783-calendar month in which the sum of the monies collected on the
3784-preneed contract exceeds the amount that is not required to be
3785-deposited in trust as determined under subsection (a) unless,
3786-prior to that time, all liabilities of the preneed seller
3787-under the preneed contract have been satisfied, or the preneed
3788-contract is validly cancelled. Further required deposits on
3789-the contract shall thereafter be made not later than 30 days
3790-after the end of the calendar month in which each contract
3791-payment is collected by the seller."
3792-"§27-17A-32§34-13-232
3793-(a) If amounts paid by the purchaser under a preneed
3794-contract for funeral merchandise have previously been
3795-deposited in trust, the seller may withdraw the principal
3796-amount and trust appreciation attributable to the delivered
3797-item at such time as the funeral merchandise is delivered or
3798-installed or, if comprised of materials designed to withstand
3799-prolonged, protected storage without deterioration, the
3800-merchandise is placed in storage with a responsible third
3801-party bonded and insured for the wholesale value thereof and
3802-evidenced by a receipt specifically identifying the item, the
3803-specific preneed contract, the location of the item, and the
3804-identity and address of the bonding and insuring parties. For
3769+paid in full, unless, prior to that time, all liabilities of
3770+the seller under the preneed contract to deliver the specific
3771+funeral merchandise or funeral services, or both, or the
3772+specific cash advances, identified by the preneed provider as
3773+properly allocated to the payment, have been satisfied, or the
3774+preneed contract is validly cancelled.
3775+(c) The trustee shall take title to the property
3776+conveyed to the trust for the purpose of investing,
3777+protecting, and conserving it for the certificate holder;
3778+collecting income; and distributing the principal and income
3779+as prescribed in this article chapter.
3780+(d) The certificate holder is prohibited from sharing
3781+in the discharge of these responsibilities, except that the
3782+certificate holder may appoint an adviser to the trustee or
3783+elect tax free investments. Nothing in this chapter shall
3784+prohibit a trustee from electing the qualified funeral trust
3785+option under the Internal Revenue Code.
3786+(e) The trust agreement shall be submitted to the
3787+commissioner board for approval and filing.
3788+(f) The funds shall be held in trust, both as to
3789+principal and income earned thereon, and shall remain intact,
3790+except that the cost of the operation of the trust or trust
3791+account authorized by this section may be deducted from the
3792+income earned thereon.
3793+(g) The contract purchaser shall have no interest
3794+whatsoever in, or power whatsoever over, funds deposited in
3795+trust pursuant to this section.
3796+(h) In no event may such the funds be loaned to a
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3834-purposes of this subsection only, caskets and alternative
3835-containers may not be held in storage by the seller or a third
3836-party storage facility prior to the death of the funeral
3837-beneficiary.
3838-(b) The trustee shall make regular valuations of the
3839-assets it holds in trust and provide a report of the
3840-valuations to the certificate holder at least quarterly. At
3841-all times, the certificate holder shall be able to determine
3842-the amount held in trust attributable to each contract holder.
3843-For all contracts effective on or after January 1, 2015, the
3844-determination shall be based upon the fair market value of the
3845-trust at the time and the proportionate share of the fair
3846-market value attributable to each contract holder. For all
3847-contracts in effect before January 1, 2015, the valuation of
3848-each contract may be calculated using any valuation method
3849-that had been previously approved by the commissioner or the
3850-department Commissioner or the Department of Insurance before
3851-January 1, 2015. Any person who withdraws appreciation in the
3852-value of trust, other than the pro rata portion of such the
3853-appreciation which may be withdrawn upon the death of a
3854-contract's funeral beneficiary or upon cancellation of a
3855-preneed contract, shall be required to make additional
3856-deposits from his or her own funds to restore the aggregate
3857-value of assets to the value of funds deposited in trust, but
3858-excluding from the funds deposited those funds paid out upon
3859-preneed contracts which the person has fully performed or
3860-which have been otherwise withdrawn, as provided in this
3861-article chapter. The certificate holder shall be liable to
3826+certificate holder, an affiliate of a certificate holder, or
3827+any person directly or indirectly engaged in the burial,
3828+funeral home, or cemetery business. Furthermore, the
3829+certificate holder's interest in the trust shall not be
3830+pledged as collateral for any loans, debts, or liabilities of
3831+the certificate holder and shall not be transferred to any
3832+person without the prior written approval from the
3833+commissioner board and the trustee. Even though the
3834+certificate holder shall be deemed and treated as the settlor
3835+and beneficiary of the trust for all purposes, all of the
3836+trust funds are exempt from all claims of creditors of the
3837+certificate holder except as to the claims of the contract
3838+purchaser, his or her representative, or the commissioner
3839+board.
3840+(i) For all preneed contracts written or entered into
3841+on or after January 1, 2015, all required deposits in trust
3842+shall commence not later than 30 days after the end of the
3843+calendar month in which the sum of the monies collected on the
3844+preneed contract exceeds the amount that is not required to be
3845+deposited in trust as determined under subsection (a) unless,
3846+prior to that time, all liabilities of the preneed seller
3847+under the preneed contract have been satisfied, or the preneed
3848+contract is validly cancelled. Further required deposits on
3849+the contract shall thereafter be made not later than 30 days
3850+after the end of the calendar month in which each contract
3851+payment is collected by the seller."
3852+"§27-17A-32§34-13-232
3853+(a) If amounts paid by the purchaser under a preneed
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3891-third parties to the extent that income from the trust is not
3892-sufficient to pay the expenses of the trust.
3893-(c) The trustee of the trust established pursuant to
3894-this article chapter shall have all of the following powers:
3895-(1) Make investments and exercise necessary investment
3896-powers, provided that the commissioner board may by order
3897-require the trustee to liquidate or dispose of any investment
3898-within 30 days after the order.
3899-(2) Commingle the property of the trust with the
3900-property of any other preneed funeral, preneed cemetery, or
3901-endowment care trust established pursuant to this article
3902-chapter and make corresponding allocations and divisions of
3903-assets, liabilities, income, and expenses.
3904-(d) Notwithstanding the provisions of Section 19-3-125,
3905-the trustee may, subject to compliance with the requirements
3906-set forth below, may invest any portion or all of the funds
3907-received under preneed contracts and deposited in trust in
3908-life insurance contracts or annuities issued on the lives of
3909-preneed contract purchasers or preneed contract beneficiaries,
3910-hereinafter, the insured or annuitant, without any obligation
3911-to cover at a minimum the retail amount of the preneed
3912-contract at the time of purchase of the life insurance
3913-contracts or annuities as set forth in Section 27-17A-3
3914-34-13-171.
3915-(1) Trust funds shall not be invested by the trustee in
3916-life insurance contracts or annuities unless the following
3917-requirements are met:
3918-a. The company issuing the life insurance contracts or
3883+contract for funeral merchandise have previously been
3884+deposited in trust, the seller may withdraw the principal
3885+amount and trust appreciation attributable to the delivered
3886+item at such time as the funeral merchandise is delivered or
3887+installed or, if comprised of materials designed to withstand
3888+prolonged, protected storage without deterioration, the
3889+merchandise is placed in storage with a responsible third
3890+party bonded and insured for the wholesale value thereof and
3891+evidenced by a receipt specifically identifying the item, the
3892+specific preneed contract, the location of the item, and the
3893+identity and address of the bonding and insuring parties. For
3894+purposes of this subsection only, caskets and alternative
3895+containers may not be held in storage by the seller or a third
3896+party storage facility prior to the death of the funeral
3897+beneficiary.
3898+(b) The trustee shall make regular valuations of the
3899+assets it holds in trust and provide a report of the
3900+valuations to the certificate holder at least quarterly. At
3901+all times, the certificate holder shall be able to determine
3902+the amount held in trust attributable to each contract holder.
3903+For all contracts effective on or after January 1, 2015, the
3904+determination shall be based upon the fair market value of the
3905+trust at the time and the proportionate share of the fair
3906+market value attributable to each contract holder. For all
3907+contracts in effect before January 1, 2015, the valuation of
3908+each contract may be calculated using any valuation method
3909+that had been previously approved by the commissioner or the
3910+department Commissioner or the Department of Insurance before
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3948-annuities is licensed by the Department of Insurance and the
3949-insurance producer or annuity seller is properly licensed
3950-within its domiciliary jurisdiction.
3951-b. Prior to the investment, the insured or annuitant
3952-consents, in writing, to the investment in life insurance
3953-contracts or annuities.
3954-c. For life insurance contracts or annuities issued
3955-prior to May 6, 2008, and currently in force, such contracts
3956-shall be construed to have been an authorized investment by
3957-the trustee under this chapter if the insured or annuitant is
3958-notified in writing of the existence of any such contract and
3959-provided with a copy of the contract.
3960-(2) Upon request, the insured or annuitant shall be
3961-provided with a copy of any life insurance contract or annuity
3962-issued to a preened trustee at no expense to the insured or
3963-annuitant.
3964-(3) Any life insurance contract or annuity issued in
3965-accordance with this subsection and otherwise in compliance
3966-therewith shall be valid and in full force according to the
3967-terms and conditions thereof.
3968-(4) A trustee that invests all or any portion of the
3969-funds received under preneed contracts and deposited in trust
3970-in life insurance contracts or annuities issued by one company
3971-licensed by the department State Department of Insurance shall
3972-be considered to satisfy the standards and requirements of
3973-Section 19-3-120.2 and Chapter 3B of Title 19.
3974-(5) It is the intention of the Legislature that this
3975-subsection shall be retroactive and shall apply to all life
3940+January 1, 2015. Any person who withdraws appreciation in the
3941+value of trust, other than the pro rata portion of such the
3942+appreciation which may be withdrawn upon the death of a
3943+contract's funeral beneficiary or upon cancellation of a
3944+preneed contract, shall be required to make additional
3945+deposits from his or her own funds to restore the aggregate
3946+value of assets to the value of funds deposited in trust, but
3947+excluding from the funds deposited those funds paid out upon
3948+preneed contracts which the person has fully performed or
3949+which have been otherwise withdrawn, as provided in this
3950+article chapter. The certificate holder shall be liable to
3951+third parties to the extent that income from the trust is not
3952+sufficient to pay the expenses of the trust.
3953+(c) The trustee of the trust established pursuant to
3954+this article chapter shall have all of the following powers:
3955+(1) Make investments and exercise necessary investment
3956+powers, provided that the commissioner board may by order
3957+require the trustee to liquidate or dispose of any investment
3958+within 30 days after the order.
3959+(2) Commingle the property of the trust with the
3960+property of any other preneed funeral, preneed cemetery, or
3961+endowment care trust established pursuant to this article
3962+chapter and make corresponding allocations and divisions of
3963+assets, liabilities, income, and expenses.
3964+(d) Notwithstanding the provisions of Section 19-3-125,
3965+the trustee may, subject to compliance with the requirements
3966+set forth below, may invest any portion or all of the funds
3967+received under preneed contracts and deposited in trust in
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4005-insurance contracts or annuities issued prior to May 6, 2008."
4006-"§27-17A-33§34-13-233
4007-(a) A purchaser, by providing written notice to the
4008-certificate holder, may cancel a preneed contract within 30
4009-days of the date that the contract was executed provided that
4010-the funeral merchandise and funeral services have not yet been
4011-used. Upon providing the notice, the purchaser shall be
4012-entitled to a complete refund of the amount paid, except for
4013-the amount allocable to any funeral merchandise or funeral
4014-services that have been used, and shall be released from all
4015-obligations under the contract. This subsection shall apply to
4016-all items that are purchased as part of a preneed contract.
4017-(b) After 30 days from the date the preneed contract
4018-was executed, a purchaser, by providing written notice to the
4019-certificate holder, may cancel the funeral services, funeral
4020-merchandise, facilities, and cash advance items portions of a
4021-preneed contract at any time, and shall be entitled to the
4022-refund defined in the preneed contract allocable to those
4023-items. Any accumulated earnings allocable to the preneed
4024-contract shall be paid to the certificate holder upon the
4025-cancellation.
4026-(c) Upon breach of contract or failure of the
4027-certificate holder to provide funeral merchandise or services
4028-under a preneed contract, the contract purchaser shall be
4029-entitled to a refund of 100 percent of all money paid on the
4030-contract. The refund shall be made within 30 days after
4031-receipt by the certificate holder of the contract purchaser's
4032-written request for refund.
3997+life insurance contracts or annuities issued on the lives of
3998+preneed contract purchasers or preneed contract beneficiaries,
3999+hereinafter, the insured or annuitant, without any obligation
4000+to cover at a minimum the retail amount of the preneed
4001+contract at the time of purchase of the life insurance
4002+contracts or annuities as set forth in Section 27-17A-3
4003+34-13-171.
4004+(1) Trust funds shall not be invested by the trustee in
4005+life insurance contracts or annuities unless the following
4006+requirements are met:
4007+a. The company issuing the life insurance contracts or
4008+annuities is licensed by the Department of Insurance and the
4009+insurance producer or annuity seller is properly licensed
4010+within its domiciliary jurisdiction.
4011+b. Prior to the investment, the insured or annuitant
4012+consents, in writing, to the investment in life insurance
4013+contracts or annuities.
4014+c. For life insurance contracts or annuities issued
4015+prior to May 6, 2008, and currently in force, such contracts
4016+shall be construed to have been an authorized investment by
4017+the trustee under this chapter if the insured or annuitant is
4018+notified in writing of the existence of any such contract and
4019+provided with a copy of the contract.
4020+(2) Upon request, the insured or annuitant shall be
4021+provided with a copy of any life insurance contract or annuity
4022+issued to a preened trustee at no expense to the insured or
4023+annuitant.
4024+(3) Any life insurance contract or annuity issued in
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4062-(d) If a purchaser is 90 days past due in making
4063-payments on a preneed contract, the contract shall be
4064-considered to be in default, and the certificate holder shall
4065-be entitled to cancel the contract and withdraw all funds in
4066-trust. Upon making the withdrawal, the certificate holder
4067-shall refund to the purchaser the amount defined in the
4068-preneed contract in the event of default of the purchaser,
4069-provided that the certificate holder has provided the
4070-purchaser with 30 days' written notice of its intention to
4071-exercise any of its rights under this provision.
4072-(e) All preneed contracts are cancelable and revocable
4073-as provided in this section during the lifetime of the
4074-purchaser, provided that a preneed contract does not restrict
4075-any contract purchaser who is a qualified applicant for, or a
4076-recipient of, supplemental security income, temporary cash
4077-assistance, or Medicaid from making his or her contract
4078-irrevocable.
4079-(f) In the event that the preneed contract is made
4080-irrevocable pursuant to subsection (e), the purchaser or the
4081-authorizing agent shall have the right to appoint a provider
4082-other than the seller of the preneed contract. In the event
4083-that a provider is appointed pursuant to this subsection, the
4084-seller shall transfer to the appointed provider the amount
4085-paid by the purchaser to the seller and those amounts
4086-deposited into trust, less a reasonable transfer fee
4087-determined by the seller board. In the event the preneed
4088-contract was funded by an insurance or annuity policy, the
4089-seller shall cancel and relinquish any assignment of benefits
4054+accordance with this subsection and otherwise in compliance
4055+therewith shall be valid and in full force according to the
4056+terms and conditions thereof.
4057+(4) A trustee that invests all or any portion of the
4058+funds received under preneed contracts and deposited in trust
4059+in life insurance contracts or annuities issued by one company
4060+licensed by the department State Department of Insurance shall
4061+be considered to satisfy the standards and requirements of
4062+Section 19-3-120.2 and Chapter 3B of Title 19.
4063+(5) It is the intention of the Legislature that this
4064+subsection shall be retroactive and shall apply to all life
4065+insurance contracts or annuities issued prior to May 6, 2008."
4066+"§27-17A-33§34-13-233
4067+(a) A purchaser, by providing written notice to the
4068+certificate holder, may cancel a preneed contract within 30
4069+days of the date that the contract was executed provided that
4070+the funeral merchandise and funeral services have not yet been
4071+used. Upon providing the notice, the purchaser shall be
4072+entitled to a complete refund of the amount paid, except for
4073+the amount allocable to any funeral merchandise or funeral
4074+services that have been used, and shall be released from all
4075+obligations under the contract. This subsection shall apply to
4076+all items that are purchased as part of a preneed contract.
4077+(b) After 30 days from the date the preneed contract
4078+was executed, a purchaser, by providing written notice to the
4079+certificate holder, may cancel the funeral services, funeral
4080+merchandise, facilities, and cash advance items portions of a
4081+preneed contract at any time, and shall be entitled to the
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4119-or beneficiary status under the policy or annuity contract,
4120-and deliver the policy, if in the custody of the preneed
4121-seller, to the policy owner or his or her legal
4122-representative, and the seller may collect a reasonable
4123-transfer fee as determined by rule of the board . No transfer
4124-hereunder shall occur without the acceptance of the appointed
4125-provider.
4126-(g) All refunds required to be made under this section
4127-to a purchaser who has canceled a contract must be made within
4128-30 days after the date the written notice of cancellation is
4129-received by the certificate holder."
4130-"§27-17A-34§34-13-234
4131-(a) Disbursement of funds discharging any preneed
4132-contract for funeral services or funeral merchandise fulfilled
4133-after May 1, 2002, shall be made by the trustee to the
4134-certificate holder upon receipt by the trustee of a
4135-certification of the certificate holder that the preneed
4136-contract has been performed in whole or in part or the preneed
4137-contract has been cancelled. Before the trustee may disburse
4138-any trust funds, the certificate holder shall provide to the
4139-trustee a death certificate or other valid proof of death, a
4140-letter from the preneed contract holder cancelling the preneed
4141-contract or valid proof the contract has been cancelled in
4142-accordance with Section 27-17A-33 34-13-233, or valid proof
4143-the merchandise has been delivered and installed, and services
4144-have been performed. Any trustee accepting preneed contract
4145-proceeds under this article chapter may rely upon the
4146-certification of the certificate holder accompanied by the
4111+refund defined in the preneed contract allocable to those
4112+items. Any accumulated earnings allocable to the preneed
4113+contract shall be paid to the certificate holder upon the
4114+cancellation.
4115+(c) Upon breach of contract or failure of the
4116+certificate holder to provide funeral merchandise or services
4117+under a preneed contract, the contract purchaser shall be
4118+entitled to a refund of 100 percent of all money paid on the
4119+contract. The refund shall be made within 30 days after
4120+receipt by the certificate holder of the contract purchaser's
4121+written request for refund.
4122+(d) If a purchaser is 90 days past due in making
4123+payments on a preneed contract, the contract shall be
4124+considered to be in default, and the certificate holder shall
4125+be entitled to cancel the contract and withdraw all funds in
4126+trust. Upon making the withdrawal, the certificate holder
4127+shall refund to the purchaser the amount defined in the
4128+preneed contract in the event of default of the purchaser,
4129+provided that the certificate holder has provided the
4130+purchaser with 30 days' written notice of its intention to
4131+exercise any of its rights under this provision.
4132+(e) All preneed contracts are cancelable and revocable
4133+as provided in this section during the lifetime of the
4134+purchaser, provided that a preneed contract does not restrict
4135+any contract purchaser who is a qualified applicant for, or a
4136+recipient of, supplemental security income, temporary cash
4137+assistance, or Medicaid from making his or her contract
4138+irrevocable.
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4176-required proof, and shall not be liable to anyone for such
4177-reliance. If the contract is only partially performed, the
4178-disbursement shall only cover that portion of the contract
4179-performed. In the event of any contract default by the
4180-contract purchaser, or in the event that the funeral
4181-merchandise or funeral service contracted for is not provided,
4182-the trustee shall return, within 30 days after its receipt of
4183-a written request therefor, 100 percent of the funds deposited
4184-into the trust on the contract and the income and accretion
4185-thereon to the certificate holder or to its assigns, subject
4186-to Section 27-17A-33 34-13-233.
4187-(b) For all contracts effective on or after January 1,
4188-2015, the amount that may be withdrawn from the trust upon
4189-fulfillment or cancellation of any particular preneed contract
4190-may not exceed the amount attributable to that preneed
4191-contract in proportion to the total amount held in trust for
4192-all preneed contracts as of the date of withdrawal. For all
4193-contracts in effect before January 1, 2015, the valuation of
4194-each contract and the amount that may be withdrawn from the
4195-trust may be calculated using any valuation method that had
4196-been approved by the commissioner or the department
4197-Commissioner or the Department of Insurance before January 1,
4198-2015."
4199-Section 8. The following heading is added to Division
4200-4, commencing with Section 34-13-260, of Article 5, Chapter
4201-13, Title 34, Code of Alabama 1975:
4202-"Division 4. Cemetery Merchandise and Services Trust
4203-Fund."
4168+(f) In the event that the preneed contract is made
4169+irrevocable pursuant to subsection (e), the purchaser or the
4170+authorizing agent shall have the right to appoint a provider
4171+other than the seller of the preneed contract. In the event
4172+that a provider is appointed pursuant to this subsection, the
4173+seller shall transfer to the appointed provider the amount
4174+paid by the purchaser to the seller and those amounts
4175+deposited into trust, less a reasonable transfer fee
4176+determined by the seller board. In the event the preneed
4177+contract was funded by an insurance or annuity policy, the
4178+seller shall cancel and relinquish any assignment of benefits
4179+or beneficiary status under the policy or annuity contract,
4180+and deliver the policy, if in the custody of the preneed
4181+seller, to the policy owner or his or her legal
4182+representative, and the seller may collect a reasonable
4183+transfer fee as determined by rule of the board . No transfer
4184+hereunder shall occur without the acceptance of the appointed
4185+provider.
4186+(g) All refunds required to be made under this section
4187+to a purchaser who has canceled a contract must be made within
4188+30 days after the date the written notice of cancellation is
4189+received by the certificate holder."
4190+"§27-17A-34§34-13-234
4191+(a) Disbursement of funds discharging any preneed
4192+contract for funeral services or funeral merchandise fulfilled
4193+after May 1, 2002, shall be made by the trustee to the
4194+certificate holder upon receipt by the trustee of a
4195+certification of the certificate holder that the preneed
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4231-2072 SB131 EnrolledSB131 Enrolled
4223+2072 SB131 INTRODUCEDSB131 INTRODUCED
42324224 Page 75
4233-Section 9. Sections 27-17A-40, 27-17A-41, 27-17A-42,
4234-27-17A-43, 27-17A-44, 27-17A-45, 27-17A-46, 27-17A-47,
4235-27-17A-48, 27-17A-49, 27-17A-50, 27-17A-51, 27-17A-52,
4236-27-17A-53, 27-17A-54, 27-17A-55, 27-17A-56, and 27-17A-57 of
4237-the Code of Alabama 1975, are amended and renumbered as
4238-Division 4 of Article 5 of Chapter 13 of Title 34, Code of
4239-Alabama 1975, to read as follows:
4240-"§27-17A-40§34-13-260
4241-To comply with the trust requirement of subsection (a)
4242-of Section 27-17A-13 34-13-194, all certificate holders who
4243-are cemetery authorities providing preneed contracts for
4244-cemetery services or cemetery merchandise shall be subject to
4245-this article chapter."
4246-"§27-17A-41§34-13-261
4247-(a) Any person who receives or collects any funds on
4248-account of a preneed contract in this state for cemetery
4249-services or cemetery merchandise, or both, entered into after
4250-May 1, 2002, shall have the obligation to pay over and
4251-contribute into a trust fund as hereinafter described, those
4252-amounts or proportions of the funds as hereinafter provided.
4253-(b) Whether or not the preneed contract provides for
4254-cemetery merchandise or cemetery services, or any combination
4255-thereof, the trust fund shall be referred to in this section
4256-as the Cemetery Merchandise and Services Trust Fund.
4257-(c) The trustee of the Cemetery Merchandise and
4258-Services Trust Fund shall be qualified as such within the
4259-definition of the trustee.
4260-(d) The trustee shall take title to the property
4225+contract has been performed in whole or in part or the preneed
4226+contract has been cancelled. Before the trustee may disburse
4227+any trust funds, the certificate holder shall provide to the
4228+trustee a death certificate or other valid proof of death, a
4229+letter from the preneed contract holder cancelling the preneed
4230+contract or valid proof the contract has been cancelled in
4231+accordance with Section 27-17A-33 34-13-233, or valid proof
4232+the merchandise has been delivered and installed, and services
4233+have been performed. Any trustee accepting preneed contract
4234+proceeds under this article chapter may rely upon the
4235+certification of the certificate holder accompanied by the
4236+required proof, and shall not be liable to anyone for such
4237+reliance. If the contract is only partially performed, the
4238+disbursement shall only cover that portion of the contract
4239+performed. In the event of any contract default by the
4240+contract purchaser, or in the event that the funeral
4241+merchandise or funeral service contracted for is not provided,
4242+the trustee shall return, within 30 days after its receipt of
4243+a written request therefor, 100 percent of the funds deposited
4244+into the trust on the contract and the income and accretion
4245+thereon to the certificate holder or to its assigns, subject
4246+to Section 27-17A-33 34-13-233.
4247+(b) For all contracts effective on or after January 1,
4248+2015, the amount that may be withdrawn from the trust upon
4249+fulfillment or cancellation of any particular preneed contract
4250+may not exceed the amount attributable to that preneed
4251+contract in proportion to the total amount held in trust for
4252+all preneed contracts as of the date of withdrawal. For all
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4288-2100 SB131 EnrolledSB131 Enrolled
4280+2100 SB131 INTRODUCEDSB131 INTRODUCED
42894281 Page 76
4290-conveyed to the Cemetery Merchandise and Services Trust Fund
4291-subject to this section.
4292-(e) The contract purchaser shall have no interest
4293-whatsoever in, or power whatsoever over, the funds deposited
4294-in the Cemetery Merchandise and Services Trust Fund.
4295-(f) The party contracting to deliver the cemetery
4296-merchandise or cemetery services or cash advances, whether or
4297-not a preneed provider, shall be referred to in this section
4298-as the "seller."
4299-(g) The seller shall be the beneficiary of the Cemetery
4300-Merchandise and Services Trust Fund."
4301-"§27-17A-42§34-13-262
4302-(a) The obligation of the seller under a preneed
4303-contract shall be to make contributions into the Cemetery
4304-Merchandise and Services Trust Fund in accordance with the
4305-following formulae:
4306-(1) With respect to all cemetery merchandise, 110
4307-percent of wholesale cost.
4308-(2) With respect to outer burial containers, 60 percent
4309-of the purchase price specified in the preneed contract.
4310-(3) With respect to cemetery services, 60 percent of
4311-the purchase price specified in the preneed contract.
4312-(4) With respect to all cash advance items sold, 100
4313-percent of the purchase price specified for the same in the
4314-preneed contract.
4315-(5) With respect to caskets, 75 percent of the purchase
4316-price.
4317-(b) All contributions shall be made within 30 days
4282+contracts in effect before January 1, 2015, the valuation of
4283+each contract and the amount that may be withdrawn from the
4284+trust may be calculated using any valuation method that had
4285+been approved by the commissioner or the department
4286+Commissioner or the Department of Insurance before January 1,
4287+2015."
4288+Section 8. The following heading is added to Division
4289+4, commencing with Section 34-13-260, of Article 5, Chapter
4290+13, Title 34, Code of Alabama 1975:
4291+"Division 4. Cemetery Merchandise and Services Trust
4292+Fund."
4293+Section 9. Sections 27-17A-40, 27-17A-41, 27-17A-42,
4294+27-17A-43, 27-17A-44, 27-17A-45, 27-17A-46, 27-17A-47,
4295+27-17A-48, 27-17A-49, 27-17A-50, 27-17A-51, 27-17A-52,
4296+27-17A-53, 27-17A-54, 27-17A-55, 27-17A-56, and 27-17A-57 of
4297+the Code of Alabama 1975, are amended and renumbered as
4298+Division 4 of Article 5 of Chapter 13 of Title 34, Code of
4299+Alabama 1975, to read as follows:
4300+"§27-17A-40§34-13-260
4301+To comply with the trust requirement of subsection (a)
4302+of Section 27-17A-13 34-13-194, all certificate holders who
4303+are cemetery authorities providing preneed contracts for
4304+cemetery services or cemetery merchandise shall be subject to
4305+this article chapter."
4306+"§27-17A-41§34-13-261
4307+(a) Any person who receives or collects any funds on
4308+account of a preneed contract in this state for cemetery
4309+services or cemetery merchandise, or both, entered into after
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4337+2128 SB131 INTRODUCEDSB131 INTRODUCED
43464338 Page 77
4347-after the end of the calendar month in which the preneed
4348-contract is paid in full, unless, prior to that time, all
4349-liabilities of the seller under the preneed contract to
4350-deliver the specific cemetery merchandise or cemetery
4351-services, or both, or the specific cash advances, identified
4352-by the preneed provider as properly allocated to the payment,
4353-have been satisfied, or the preneed contract is validly
4354-cancelled.
4355-(c) For all preneed contracts entered into on or after
4356-January 1, 2015, all contributions shall be made not later
4357-than 30 days after the end of the calendar month in which the
4358-sum of the monies collected on the preneed contract exceeds
4359-the amount that is not required to be contributed as
4360-determined under subsection (a), unless, prior to that time,
4361-all liabilities of the seller under the preneed contract have
4362-been satisfied, or the preneed contract is validly cancelled.
4363-Further required trust contributions on the contract shall
4364-thereafter be made not later than 30 days after the end of the
4365-calendar month in which each contract payment is collected by
4366-the seller.
4367-(d) The trustee shall invest and reinvest the Cemetery
4368-Merchandise and Services Trust Fund.
4369-(e) The trustee shall make regular evaluations of the
4370-fair market value of assets held in and liabilities, if any,
4371-of the Cemetery Merchandise and Services Trust Fund and
4372-provide a report of the evaluations to the seller at least
4373-quarterly. Upon receipt of each quarterly report, the seller
4374-may submit to the trustee a written and detailed analysis
4339+May 1, 2002, shall have the obligation to pay over and
4340+contribute into a trust fund as hereinafter described, those
4341+amounts or proportions of the funds as hereinafter provided.
4342+(b) Whether or not the preneed contract provides for
4343+cemetery merchandise or cemetery services, or any combination
4344+thereof, the trust fund shall be referred to in this section
4345+as the Cemetery Merchandise and Services Trust Fund.
4346+(c) The trustee of the Cemetery Merchandise and
4347+Services Trust Fund shall be qualified as such within the
4348+definition of the trustee.
4349+(d) The trustee shall take title to the property
4350+conveyed to the Cemetery Merchandise and Services Trust Fund
4351+subject to this section.
4352+(e) The contract purchaser shall have no interest
4353+whatsoever in, or power whatsoever over, the funds deposited
4354+in the Cemetery Merchandise and Services Trust Fund.
4355+(f) The party contracting to deliver the cemetery
4356+merchandise or cemetery services or cash advances, whether or
4357+not a preneed provider, shall be referred to in this section
4358+as the "seller."
4359+(g) The seller shall be the beneficiary of the Cemetery
4360+Merchandise and Services Trust Fund."
4361+"§27-17A-42§34-13-262
4362+(a) The obligation of the seller under a preneed
4363+contract shall be to make contributions into the Cemetery
4364+Merchandise and Services Trust Fund in accordance with the
4365+following formulae:
4366+(1) With respect to all cemetery merchandise, 110
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4402-2156 SB131 EnrolledSB131 Enrolled
4394+2156 SB131 INTRODUCEDSB131 INTRODUCED
44034395 Page 78
4404-concerning the balance of funds in the Cemetery Merchandise
4405-and Services Trust Fund, certified under oath as being true
4406-and correct upon information and belief by a responsible
4407-officer of the seller.
4408-(f) While the obligation of the seller to make
4409-contributions to the Cemetery Merchandise and Services Trust
4410-Fund is set forth in this section, the obligation of the
4411-seller at the time of making certain withdrawals from the
4412-Cemetery Merchandise and Services Trust Fund as herein
4413-provided for shall be calculated with respect to the current
4414-wholesale cost of cemetery merchandise and current retail
4415-price of cemetery services and cash advances at the time of
4416-withdrawal. If the fair market value as reported by the
4417-trustee exceeds 110 percent of the total of the following, the
4418-seller shall be entitled to withdraw and retain from the
4419-merchandise trust fund, the excess funds therein: 110 percent
4420-of the current wholesale cost of the liability to deliver all
4421-cemetery merchandise, 60 percent of the current retail price
4422-for all cemetery services, 60 percent of the current retail
4423-price of outer burial containers, 75 percent of the current
4424-retail price of caskets, and 100 percent of the current retail
4425-price of all cash advances, for the total of all preneed
4426-contracts for which the purchasers have paid in full, all
4427-calculated as of the time of withdrawal; and concerning the
4428-total of all preneed contracts for which the purchasers have
4429-not paid in full, 25 percent of the total of the following:
4430-110 percent of the current wholesale cost of the liability to
4431-deliver all cemetery merchandise, 60 percent of the current
4396+percent of wholesale cost.
4397+(2) With respect to outer burial containers, 60 percent
4398+of the purchase price specified in the preneed contract.
4399+(3) With respect to cemetery services, 60 percent of
4400+the purchase price specified in the preneed contract.
4401+(4) With respect to all cash advance items sold, 100
4402+percent of the purchase price specified for the same in the
4403+preneed contract.
4404+(5) With respect to caskets, 75 percent of the purchase
4405+price.
4406+(b) All contributions shall be made within 30 days
4407+after the end of the calendar month in which the preneed
4408+contract is paid in full, unless, prior to that time, all
4409+liabilities of the seller under the preneed contract to
4410+deliver the specific cemetery merchandise or cemetery
4411+services, or both, or the specific cash advances, identified
4412+by the preneed provider as properly allocated to the payment,
4413+have been satisfied, or the preneed contract is validly
4414+cancelled.
4415+(c) For all preneed contracts entered into on or after
4416+January 1, 2015, all contributions shall be made not later
4417+than 30 days after the end of the calendar month in which the
4418+sum of the monies collected on the preneed contract exceeds
4419+the amount that is not required to be contributed as
4420+determined under subsection (a), unless, prior to that time,
4421+all liabilities of the seller under the preneed contract have
4422+been satisfied, or the preneed contract is validly cancelled.
4423+Further required trust contributions on the contract shall
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4459-2184 SB131 EnrolledSB131 Enrolled
4451+2184 SB131 INTRODUCEDSB131 INTRODUCED
44604452 Page 79
4461-retail price for all cemetery services, and 100 percent of the
4462-current retail price of all cash advances, all calculated as
4463-of the time of withdrawal.
4464-(g) At least annually the seller shall make the
4465-aforesaid analysis and certification and provide the same to
4466-the trustee. If the certification discloses that the fair
4467-market value of the Cemetery Merchandise and Services Trust
4468-Fund is less than 100 percent of the aggregate calculated
4469-amount the seller shall from its own funds contribute to the
4470-Cemetery Merchandise and Services Trust Fund within the 12
4471-months succeeding the annual computation the amount necessary
4472-to restore the trust fund to an amount equal to not less than
4473-100 percent of the aggregate amount so calculated."
4474-"§27-17A-43§34-13-263
4475-(a) Upon cancellation of a preneed contract by mutual
4476-agreement between the seller and purchaser, or upon unilateral
4477-cancellation of a preneed contract by the seller by reason of
4478-default on the part of the purchaser, or other valid
4479-cancellation by reason of transfers to another seller or
4480-otherwise, the seller may, upon submission of a certification
4481-under oath by a responsible officer of the seller to the
4482-trustee, may withdraw from the Cemetery Merchandise and
4483-Services Trust Fund and retain an amount equal to the amount
4484-of all funds contributed to the trust fund with respect to the
4485-preneed contract. Any trustee accepting preneed contract
4486-proceeds under this article chapter may rely on the seller's
4487-certification under oath as required herein to be made, and
4488-shall not be liable to anyone for such reliance.
4453+thereafter be made not later than 30 days after the end of the
4454+calendar month in which each contract payment is collected by
4455+the seller.
4456+(d) The trustee shall invest and reinvest the Cemetery
4457+Merchandise and Services Trust Fund.
4458+(e) The trustee shall make regular evaluations of the
4459+fair market value of assets held in and liabilities, if any,
4460+of the Cemetery Merchandise and Services Trust Fund and
4461+provide a report of the evaluations to the seller at least
4462+quarterly. Upon receipt of each quarterly report, the seller
4463+may submit to the trustee a written and detailed analysis
4464+concerning the balance of funds in the Cemetery Merchandise
4465+and Services Trust Fund, certified under oath as being true
4466+and correct upon information and belief by a responsible
4467+officer of the seller.
4468+(f) While the obligation of the seller to make
4469+contributions to the Cemetery Merchandise and Services Trust
4470+Fund is set forth in this section, the obligation of the
4471+seller at the time of making certain withdrawals from the
4472+Cemetery Merchandise and Services Trust Fund as herein
4473+provided for shall be calculated with respect to the current
4474+wholesale cost of cemetery merchandise and current retail
4475+price of cemetery services and cash advances at the time of
4476+withdrawal. If the fair market value as reported by the
4477+trustee exceeds 110 percent of the total of the following, the
4478+seller shall be entitled to withdraw and retain from the
4479+merchandise trust fund, the excess funds therein: 110 percent
4480+of the current wholesale cost of the liability to deliver all
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4516-2212 SB131 EnrolledSB131 Enrolled
4508+2212 SB131 INTRODUCEDSB131 INTRODUCED
45174509 Page 80
4518-(b) At such time as the seller undertakes to perform
4519-its obligations under a preneed contract by delivery or
4520-installation, or both, of cemetery merchandise and the
4521-provision of cemetery services and disbursement on account of
4522-cash advances, or otherwise, upon certification to the trustee
4523-under oath by a responsible officer of the seller that the
4524-obligations of the seller under the contract have been
4525-completely fulfilled, the seller may withdraw from the
4526-Cemetery Merchandise and Services Trust Fund and retain an
4527-amount equal to the current wholesale cost to the fund with
4528-respect to the preneed contract.
4529-(c) At such time as the seller has fulfilled all of its
4530-obligations under all preneed contracts with respect to which
4531-funds have been contributed to the trust fund, and
4532-certification under oath to the trustee by a responsible
4533-officer of the seller of those facts, the seller may withdraw
4534-from the trust fund and retain all of the remaining assets
4535-thereof."
4536-"§27-17A-44§34-13-264
4537-If the amounts paid by the purchaser under a preneed
4538-contract for cemetery merchandise have previously been
4539-deposited in trust, the seller may withdraw the principal
4540-amount there, at such time as the cemetery merchandise is
4541-delivered or installed or, if comprised of materials designed
4542-to withstand prolonged, protected storage without
4543-deterioration, the merchandise is placed in storage with a
4544-responsible third party bonded and insured for the wholesale
4545-value thereof and evidenced by a receipt specifically
4510+cemetery merchandise, 60 percent of the current retail price
4511+for all cemetery services, 60 percent of the current retail
4512+price of outer burial containers, 75 percent of the current
4513+retail price of caskets, and 100 percent of the current retail
4514+price of all cash advances, for the total of all preneed
4515+contracts for which the purchasers have paid in full, all
4516+calculated as of the time of withdrawal; and concerning the
4517+total of all preneed contracts for which the purchasers have
4518+not paid in full, 25 percent of the total of the following:
4519+110 percent of the current wholesale cost of the liability to
4520+deliver all cemetery merchandise, 60 percent of the current
4521+retail price for all cemetery services, and 100 percent of the
4522+current retail price of all cash advances, all calculated as
4523+of the time of withdrawal.
4524+(g) At least annually the seller shall make the
4525+aforesaid analysis and certification and provide the same to
4526+the trustee. If the certification discloses that the fair
4527+market value of the Cemetery Merchandise and Services Trust
4528+Fund is less than 100 percent of the aggregate calculated
4529+amount the seller shall from its own funds contribute to the
4530+Cemetery Merchandise and Services Trust Fund within the 12
4531+months succeeding the annual computation the amount necessary
4532+to restore the trust fund to an amount equal to not less than
4533+100 percent of the aggregate amount so calculated."
4534+"§27-17A-43§34-13-263
4535+(a) Upon cancellation of a preneed contract by mutual
4536+agreement between the seller and purchaser, or upon unilateral
4537+cancellation of a preneed contract by the seller by reason of
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4573-2240 SB131 EnrolledSB131 Enrolled
4565+2240 SB131 INTRODUCEDSB131 INTRODUCED
45744566 Page 81
4575-identifying the item, the specific preneed contract, the
4576-location of the item, and the identity and address of the
4577-bonding and insuring parties. For purposes of this section
4578-only, caskets and alternative containers may not be held in
4579-storage by the seller or a third party storage facility prior
4580-to the death of the funeral beneficiary."
4581-"§27-17A-45§34-13-265
4582-An endowment care fund and all payments or
4583-contributions to it are expressly permitted as and for
4584-charitable and eleemosynary purposes. No payment, gift, grant,
4585-bequest, or other contribution for endowment care is invalid
4586-by reason of any indefiniteness or uncertainty of the persons
4587-designated as beneficiaries in the instruments creating the
4588-fund, nor is the fund or any contributions to it invalid as
4589-violating any law against perpetuities, or the suspension of
4590-the power of alienation of title to property."
4591-"§27-17A-46§34-13-266
4592-Any cemetery now existing or hereafter established,
4593-excluding those operated by governmental agencies or religious
4594-institutions, shall be may be qualified as an endowment care
4595-cemetery, except those cemeteries which do not charge fees or
4596-sell plots, interment rights, or any related cemetery ."
4597-"§27-17A-47§34-13-267
4598-(a) Every cemetery authority operating an endowment
4599-care cemetery shall establish an endowment care fund which
4600-shall be placed with and held by a bank, trust company,
4601-savings and loan association, or other financial institution
4602-authorized to provide trust services under Title 5, as
4567+default on the part of the purchaser, or other valid
4568+cancellation by reason of transfers to another seller or
4569+otherwise, the seller may, upon submission of a certification
4570+under oath by a responsible officer of the seller to the
4571+trustee, may withdraw from the Cemetery Merchandise and
4572+Services Trust Fund and retain an amount equal to the amount
4573+of all funds contributed to the trust fund with respect to the
4574+preneed contract. Any trustee accepting preneed contract
4575+proceeds under this article chapter may rely on the seller's
4576+certification under oath as required herein to be made, and
4577+shall not be liable to anyone for such reliance.
4578+(b) At such time as the seller undertakes to perform
4579+its obligations under a preneed contract by delivery or
4580+installation, or both, of cemetery merchandise and the
4581+provision of cemetery services and disbursement on account of
4582+cash advances, or otherwise, upon certification to the trustee
4583+under oath by a responsible officer of the seller that the
4584+obligations of the seller under the contract have been
4585+completely fulfilled, the seller may withdraw from the
4586+Cemetery Merchandise and Services Trust Fund and retain an
4587+amount equal to the current wholesale cost to the fund with
4588+respect to the preneed contract.
4589+(c) At such time as the seller has fulfilled all of its
4590+obligations under all preneed contracts with respect to which
4591+funds have been contributed to the trust fund, and
4592+certification under oath to the trustee by a responsible
4593+officer of the seller of those facts, the seller may withdraw
4594+from the trust fund and retain all of the remaining assets
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46314623 Page 82
4632-amended, or under the applicable laws of the United States or
4633-any other state, or a board of trustees, consisting of at
4634-least three members, who shall reside in the State of Alabama,
4635-one of whom is engaged in outside cemetery management, and
4636-each of whom shall be bonded to honestly perform the duties of
4637-trustee under a formal trust agreement.
4638-(b) Except as specifically provided in this subsection,
4639-commencing on July 1, 2014, a person serving on a board of
4640-trustees or cemetery authority may not also serve as a trustee
4641-of an endowment care fund for the cemetery authority. A board
4642-of trustees in existence on July 1, 2014, may continue to
4643-serve as the trustee of an endowment care fund if the board of
4644-trustees otherwise complies with this subsection. Unless
4645-exempted by the commissioner board pursuant to this
4646-subsection, on or before January 1, 2015, each member of a
4647-board of trustees in existence on July 1, 2014, shall furnish
4648-the bond required by subsection (a) in the greater of one
4649-hundred thousand dollars ($100,000) or the amount in each
4650-endowment care fund for which the board of trustees acts as
4651-trustee as of December 31, 2014. Thereafter, the amount of the
4652-bonds shall be increased on January 1 of each succeeding year
4653-to equal the amount in each endowment care fund as of the
4654-immediately preceding December 31. The commissioner board
4655-shall exempt a board of trustees from the bond requirement if
4656-the board of trustees provides to the commissioner board an
4657-annual audit report that satisfies all of the following
4658-criteria:
4659-(1) The report is prepared by a certified public
4624+thereof."
4625+"§27-17A-44§34-13-264
4626+If the amounts paid by the purchaser under a preneed
4627+contract for cemetery merchandise have previously been
4628+deposited in trust, the seller may withdraw the principal
4629+amount there, at such time as the cemetery merchandise is
4630+delivered or installed or, if comprised of materials designed
4631+to withstand prolonged, protected storage without
4632+deterioration, the merchandise is placed in storage with a
4633+responsible third party bonded and insured for the wholesale
4634+value thereof and evidenced by a receipt specifically
4635+identifying the item, the specific preneed contract, the
4636+location of the item, and the identity and address of the
4637+bonding and insuring parties. For purposes of this section
4638+only, caskets and alternative containers may not be held in
4639+storage by the seller or a third party storage facility prior
4640+to the death of the funeral beneficiary."
4641+"§27-17A-45§34-13-265
4642+An endowment care fund and all payments or
4643+contributions to it are expressly permitted as and for
4644+charitable and eleemosynary purposes. No payment, gift, grant,
4645+bequest, or other contribution for endowment care is invalid
4646+by reason of any indefiniteness or uncertainty of the persons
4647+designated as beneficiaries in the instruments creating the
4648+fund, nor is the fund or any contributions to it invalid as
4649+violating any law against perpetuities, or the suspension of
4650+the power of alienation of title to property."
4651+"§27-17A-46§34-13-266
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46884680 Page 83
4689-accountant authorized to practice in Alabama.
4690-(2) The report evidences that the review made the
4691-subject of the report by the accountant encompasses each
4692-endowment care fund for which the board of trustees acts as
4693-trustee.
4694-(3) The report notes relating to the endowment care
4695-fund or funds are in a form that is reasonably acceptable to
4696-the commissioner board.
4697-(4) The report does not evidence any material violation
4698-of or noncompliance with this chapter relating to an endowment
4699-care fund.
4700-(c) The corporate trustee or board of trustees shall be
4701-referred to as a qualified trustee. Unless otherwise specified
4702-in this article chapter or in the terms of the trust
4703-instrument, the trustee of any trust established under or
4704-pursuant to this article chapter shall have all powers granted
4705-to trustees under Article 14 of Chapter 3 of Title 19. The
4706-incorporation herein of such powers shall not be deemed to
4707-imply any duties of trustees of trusts established under or
4708-pursuant to this article chapter not expressly delineated in
4709-this article chapter.
4710-(d) The cemetery authority may employ a person to
4711-advise the trustee in the management of the fund.
4712-(e) The cemetery authority may enter into a contract
4713-with the qualified trustee for the management and investment
4714-of the endowment care fund, which contract may provide for the
4715-payment of income from the fund of reasonable fees or
4716-commissions to the trustee, and its reasonable expenses for
4681+Any cemetery now existing or hereafter established,
4682+excluding those operated by governmental agencies or religious
4683+institutions, shall be may be qualified as an endowment care
4684+cemetery, except those cemeteries which do not charge fees or
4685+sell plots, interment rights, or any related cemetery ."
4686+"§27-17A-47§34-13-267
4687+(a) Every cemetery authority operating an endowment
4688+care cemetery shall establish an endowment care fund which
4689+shall be placed with and held by a bank, trust company,
4690+savings and loan association, or other financial institution
4691+authorized to provide trust services under Title 5, as
4692+amended, or under the applicable laws of the United States or
4693+any other state, or a board of trustees, consisting of at
4694+least three members, who shall reside in the State of Alabama,
4695+one of whom is engaged in outside cemetery management, and
4696+each of whom shall be bonded to honestly perform the duties of
4697+trustee under a formal trust agreement.
4698+(b) Except as specifically provided in this subsection,
4699+commencing on July 1, 2014, a person serving on a board of
4700+trustees or cemetery authority may not also serve as a trustee
4701+of an endowment care fund for the cemetery authority. A board
4702+of trustees in existence on July 1, 2014, may continue to
4703+serve as the trustee of an endowment care fund if the board of
4704+trustees otherwise complies with this subsection. Unless
4705+exempted by the commissioner board pursuant to this
4706+subsection, on or before January 1, 2015, each member of a
4707+board of trustees in existence on July 1, 2014, shall furnish
4708+the bond required by subsection (a) in the greater of one
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47454737 Page 84
4746-administering the trust.
4747-(f) As often as he or she the board may deem necessary,
4748-the commissioner board may examine the records or facilities,
4749-or both, of any cemetery authority operating an endowment care
4750-cemetery."
4751-"§27-17A-48§34-13-268
4752-(a) Each cemetery authority shall comply with this
4753-chapter and maintain at each place of business a list of the
4754-names and addresses of its owners and directors, which shall
4755-be available to the public.
4756-(b) Each cemetery authority shall maintain a record of
4757-all property interment space owners by name and last known
4758-address with a description of merchandise and location of
4759-burial lots, crypts, or niches and the records shall be on a
4760-form or in a format prescribed by the board and shall detail
4761-all information required by the board . A plat map shall be
4762-maintained for each cemetery location at the cemetery business
4763-office. A book or file shall be kept as to the date, location
4764-by lot, and space number of each person interred or entombed
4765-in the cemetery. A written copy of the cemetery rules and
4766-regulations shall be maintained at each location and made
4767-available to the public upon request. "
4768-"§27-17A-49§34-13-269
4769-(a) From the sale price of each plot, crypt, or niche
4770-sold by the cemetery authority, of an endowment care cemetery,
4771-it shall pay an amount, not less than as determined in
4772-accordance with the following schedule, to the trustee of the
4773-endowment care fund, which payment shall be paid over to the
4738+hundred thousand dollars ($100,000) or the amount in each
4739+endowment care fund for which the board of trustees acts as
4740+trustee as of December 31, 2014. Thereafter, the amount of the
4741+bonds shall be increased on January 1 of each succeeding year
4742+to equal the amount in each endowment care fund as of the
4743+immediately preceding December 31. The commissioner board
4744+shall exempt a board of trustees from the bond requirement if
4745+the board of trustees provides to the commissioner board an
4746+annual audit report that satisfies all of the following
4747+criteria:
4748+(1) The report is prepared by a certified public
4749+accountant authorized to practice in Alabama.
4750+(2) The report evidences that the review made the
4751+subject of the report by the accountant encompasses each
4752+endowment care fund for which the board of trustees acts as
4753+trustee.
4754+(3) The report notes relating to the endowment care
4755+fund or funds are in a form that is reasonably acceptable to
4756+the commissioner board.
4757+(4) The report does not evidence any material violation
4758+of or noncompliance with this chapter relating to an endowment
4759+care fund.
4760+(c) The corporate trustee or board of trustees shall be
4761+referred to as a qualified trustee. Unless otherwise specified
4762+in this article chapter or in the terms of the trust
4763+instrument, the trustee of any trust established under or
4764+pursuant to this article chapter shall have all powers granted
4765+to trustees under Article 14 of Chapter 3 of Title 19. The
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4793+2352 SB131 INTRODUCEDSB131 INTRODUCED
48024794 Page 85
4803-trustee not more than four months after the close of the month
4804-in which the total or final payment on the sale has been
4805-received:
4806-(1) Fifteen percent of the sale net sales price of each
4807-grave or lawn crypt space.
4808-(2) Five percent of the sale net sales price of each
4809-mausoleum crypt or niche.
4810-(3) If a cemetery donates or gives a free space,
4811-mausoleum, or niche, a minimum of fifty dollars ($50) shall be
4812-paid to the endowment care fund.
4813-(3)(4) The amount received for special care funds,
4814-gifts, grants, contribution devises, or bequests made with
4815-respect to the separate or special care of a particular lot,
4816-grave, crypt, niche, mausoleum, monument, or marker or that of
4817-a particular family, as distinguished from the general endowed
4818-care of a cemetery or of a garden.
4819-(b) In addition to subsection (a), a cemetery authority
4820-may receive, and transfer to the trustee, as a part of or
4821-incident to the endowment care fund, any property, real,
4822-personal, or mixed, bequeathed, devised, given, or otherwise
4823-contributed to it for endowment care purposes. Any contractual
4824-endowment care deposits shall fall under this article chapter.
4825-(c) Any cemetery authority which is organized and
4826-engaged in business prior to May 1, 2002, shall qualify as an
4827-endowment care cemetery if the following occur:
4828-(1) Not already placed, it shall within 90 days of May
4829-1, 2002, have placed the entire principal of any endowment
4830-care fund in its possession, custody, or control, into the
4795+incorporation herein of such powers shall not be deemed to
4796+imply any duties of trustees of trusts established under or
4797+pursuant to this article chapter not expressly delineated in
4798+this article chapter.
4799+(d) The cemetery authority may employ a person to
4800+advise the trustee in the management of the fund.
4801+(e) The cemetery authority may enter into a contract
4802+with the qualified trustee for the management and investment
4803+of the endowment care fund, which contract may provide for the
4804+payment of income from the fund of reasonable fees or
4805+commissions to the trustee, and its reasonable expenses for
4806+administering the trust.
4807+(f) As often as he or she the board may deem necessary,
4808+the commissioner board may examine the records or facilities,
4809+or both, of any cemetery authority operating an endowment care
4810+cemetery."
4811+"§27-17A-48§34-13-268
4812+(a) Each cemetery authority shall comply with this
4813+chapter and maintain at each place of business a list of the
4814+names and addresses of its owners and directors, which shall
4815+be available to the public.
4816+(b) Each cemetery authority shall maintain a record of
4817+all property interment space owners by name and last known
4818+address with a description of merchandise and location of
4819+burial lots, crypts, or niches and the records shall be on a
4820+form or in a format prescribed by the board and shall detail
4821+all information required by the board . A plat map shall be
4822+maintained for each cemetery location at the cemetery business
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4850+2380 SB131 INTRODUCEDSB131 INTRODUCED
48594851 Page 86
4860-hands of a qualified trustee designated by it, to be
4861-administered as set forth in this article chapter; and
4862-principal of its endowment care fund, or the aggregate
4863-principal of its endowment care funds, if more than one, shall
4864-have a fair market value on either May 1, 2002, or on the date
4865-of transfer to the trustee of not less than twenty-five
4866-thousand dollars ($25,000); or it shall substitute 25 percent
4867-for each percentage of each sale for the next five years or
4868-five thousand dollars ($5,000) per year, whichever is greater,
4869-until the balance of twenty-five thousand dollars ($25,000) is
4870-reached. In such case, the entire amount of twenty-five
4871-thousand dollars ($25,000) shall be paid into the fund before
4872-the end of the fifth year, and no interest may be removed from
4873-the fund until the twenty-five thousand dollars ($25,000)
4874-minimum has been reached.
4875-(2) It shall at all times after May 1, 2002, comply
4876-with the minimum requirements for payments to the trustee for
4877-endowment care.
4878-(d) Any cemetery authority organizing a cemetery after
4879-May 1, 2002, whether it be by incorporation, association,
4880-individually, or by any other means, or having its first
4881-burial after May 1, 2002, before disposing of any burial lot
4882-or right or making any sale thereof or making its first
4883-burial, or both, shall cause to be deposited with a qualified
4884-trustee, in cash, the sum of twenty-five thousand dollars
4885-($25,000) in the endowment care fund.
4886-(e) When a cemetery authority has placed with a
4887-trustee, pursuant to this article chapter, a sum of money in
4852+office. A book or file shall be kept as to the date, location
4853+by lot, and space number of each person interred or entombed
4854+in the cemetery. A written copy of the cemetery rules and
4855+regulations shall be maintained at each location and made
4856+available to the public upon request. "
4857+"§27-17A-49§34-13-269
4858+(a) From the sale price of each plot, crypt, or niche
4859+sold by the cemetery authority, of an endowment care cemetery,
4860+it shall pay an amount, not less than as determined in
4861+accordance with the following schedule, to the trustee of the
4862+endowment care fund, which payment shall be paid over to the
4863+trustee not more than four months after the close of the month
4864+in which the total or final payment on the sale has been
4865+received:
4866+(1) Fifteen percent of the sale net sales price of each
4867+grave or lawn crypt space.
4868+(2) Five percent of the sale net sales price of each
4869+mausoleum crypt or niche.
4870+(3) If a cemetery donates or gives a free space,
4871+mausoleum, or niche, a minimum of fifty dollars ($50) shall be
4872+paid to the endowment care fund.
4873+(3)(4) The amount received for special care funds,
4874+gifts, grants, contribution devises, or bequests made with
4875+respect to the separate or special care of a particular lot,
4876+grave, crypt, niche, mausoleum, monument, or marker or that of
4877+a particular family, as distinguished from the general endowed
4878+care of a cemetery or of a garden.
4879+(b) In addition to subsection (a), a cemetery authority
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4907+2408 SB131 INTRODUCEDSB131 INTRODUCED
49164908 Page 87
4917-excess of the aggregate which would be required only under
4918-subsection (a), the cemetery authority shall not be required
4919-under this article chapter to make further payments to the
4920-trustee until such time thereafter as, taking into account all
4921-sales of plots, crypts, and niches in the cemetery property
4922-since the first of the sales, the aggregate of payments to the
4923-trustee if made in accordance with subsection (a) would equal
4924-the applicable minimum amount paid to the trustee under
4925-subdivision (1) of subsection (c) , or subsection (d) of this
4926-section.
4927-(f) Any deposit previously made, or represented to be
4928-made to an existing endowment care fund which exceeds 10
4929-percent of the gross selling price of all plots, crypts, and
4930-niches sold since representation of endowment care shall be
4931-made a permanent part of the endowment care fund and
4932-transferred to the qualified trustee under this article
4933-chapter."
4934-"§27-17A-50§34-13-270
4935-(a) No cemetery authority may directly or indirectly
4936-require or direct the investment, reinvestment, or retention
4937-by a qualified trustee of any part of an endowment care trust
4938-in any asset or business in which the cemetery authority or
4939-any officer, director, owner, partner, or employee of the
4940-cemetery authority has a financial interest. Nothing contained
4941-in this subsection shall prevent the trustee, subject to the
4942-provisions regarding investment and reinvestment of the trust
4943-estate as are contained in the governing instrument creating
4944-the trust, from investing, reinvesting, or retaining any asset
4909+may receive, and transfer to the trustee, as a part of or
4910+incident to the endowment care fund, any property, real,
4911+personal, or mixed, bequeathed, devised, given, or otherwise
4912+contributed to it for endowment care purposes. Any contractual
4913+endowment care deposits shall fall under this article chapter.
4914+(c) Any cemetery authority which is organized and
4915+engaged in business prior to May 1, 2002, shall qualify as an
4916+endowment care cemetery if the following occur:
4917+(1) Not already placed, it shall within 90 days of May
4918+1, 2002, have placed the entire principal of any endowment
4919+care fund in its possession, custody, or control, into the
4920+hands of a qualified trustee designated by it, to be
4921+administered as set forth in this article chapter; and
4922+principal of its endowment care fund, or the aggregate
4923+principal of its endowment care funds, if more than one, shall
4924+have a fair market value on either May 1, 2002, or on the date
4925+of transfer to the trustee of not less than twenty-five
4926+thousand dollars ($25,000); or it shall substitute 25 percent
4927+for each percentage of each sale for the next five years or
4928+five thousand dollars ($5,000) per year, whichever is greater,
4929+until the balance of twenty-five thousand dollars ($25,000) is
4930+reached. In such case, the entire amount of twenty-five
4931+thousand dollars ($25,000) shall be paid into the fund before
4932+the end of the fifth year, and no interest may be removed from
4933+the fund until the twenty-five thousand dollars ($25,000)
4934+minimum has been reached.
4935+(2) It shall at all times after May 1, 2002, comply
4936+with the minimum requirements for payments to the trustee for
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4974-or business in which the cemetery authority or any officer,
4975-director, owner, partner, or employee of the cemetery
4976-authority has an insubstantial or nonmaterial financial
4977-interest, provided that the trustee, in the exercise of the
4978-trustee's discretion, deems the investment, reinvestment, or
4979-retention to be for the best interest of the trust estate.
4980-(b) The net income from the endowment care fund, to the
4981-extent that the same is distributed from the fund, shall be
4982-used exclusively for covering the costs of endowment care of
4983-the cemetery.
4984-(c) For the purposes of this section, net income does
4985-not include realized or unrealized capital gains or losses.
4986-All realized capital gains and losses shall be recorded to
4987-corpus, which is the sum of deposits made by a cemetery
4988-authority into an endowment care fund, pursuant to Section
4989-27-17A-49 34-13-269, and all realized capital gains or losses.
4990-Capital gains taxes, if any, may be paid from the corpus.
4991-Unrealized capital gains and losses, if any, shall be recorded
4992-as an adjustment to the fair market value of the endowment
4993-care fund."
4994-"§27-17A-51§34-13-271
4995-The trustee shall not be required to inquire into the
4996-propriety of the expenditures made by the cemetery authority
4997-in connection with endowment care of the cemetery, and it
4998-shall not be held responsible in any manner whatsoever for and
4999-on account of payments of the income from the endowment care
5000-fund made to the cemetery authority."
5001-"§27-17A-52§34-13-272
4966+endowment care.
4967+(d) Any cemetery authority organizing a cemetery after
4968+May 1, 2002, whether it be by incorporation, association,
4969+individually, or by any other means, or having its first
4970+burial after May 1, 2002, before disposing of any burial lot
4971+or right or making any sale thereof or making its first
4972+burial, or both, shall cause to be deposited with a qualified
4973+trustee, in cash, the sum of twenty-five thousand dollars
4974+($25,000) in the endowment care fund.
4975+(e) When a cemetery authority has placed with a
4976+trustee, pursuant to this article chapter, a sum of money in
4977+excess of the aggregate which would be required only under
4978+subsection (a), the cemetery authority shall not be required
4979+under this article chapter to make further payments to the
4980+trustee until such time thereafter as, taking into account all
4981+sales of plots, crypts, and niches in the cemetery property
4982+since the first of the sales, the aggregate of payments to the
4983+trustee if made in accordance with subsection (a) would equal
4984+the applicable minimum amount paid to the trustee under
4985+subdivision (1) of subsection (c) , or subsection (d) of this
4986+section.
4987+(f) Any deposit previously made, or represented to be
4988+made to an existing endowment care fund which exceeds 10
4989+percent of the gross selling price of all plots, crypts, and
4990+niches sold since representation of endowment care shall be
4991+made a permanent part of the endowment care fund and
4992+transferred to the qualified trustee under this article
4993+chapter."
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5031-The trustee shall, not less than annually, shall file
5032-with the cemetery authority an account which shall include a
5033-complete disclosure of all activity since the previous account
5034-and a statement detailing fund investments."
5035-"§27-17A-53§34-13-273
5036-To the extent that any endowment care trust existing on
5037-May 1, 2002, includes investments or assets, the retention of
5038-which the trustee in the free exercise of its discretion deems
5039-not in the best interest of the trust estate, the trustee
5040-shall dispose of the investments or assets as soon as
5041-practicable without undue sacrifice to the trust estate, and
5042-in any event within two years after May 1, 2002."
5043-"§27-17A-54§34-13-274
5044-An annual report of the endowment care fund shall be
5045-made to the commissioner board by each cemetery authority
5046-within 90 days of the close of each calendar year. This report
5047-shall include the qualified trustee's name or names, the bond
5048-numbers if individual trustees or the name and address of the
5049-financial institution in which the fund is maintained, and the
5050-affidavit of the cemetery authority affirming compliance with
5051-this article chapter. Prior to the sale or transfer of a
5052-cemetery, the cemetery authority shall report and document to
5053-the commissioner board that the endowment care fund is
5054-currently funded in accordance with this article chapter."
5055-"§27-17A-55§34-13-275
5056-A cemetery authority shall start construction of that
5057-section of a mausoleum or bank of below-ground crypts in which
5058-sales, contracts for sale, reservations for sale, or
5023+"§27-17A-50§34-13-270
5024+(a) No cemetery authority may directly or indirectly
5025+require or direct the investment, reinvestment, or retention
5026+by a qualified trustee of any part of an endowment care trust
5027+in any asset or business in which the cemetery authority or
5028+any officer, director, owner, partner, or employee of the
5029+cemetery authority has a financial interest. Nothing contained
5030+in this subsection shall prevent the trustee, subject to the
5031+provisions regarding investment and reinvestment of the trust
5032+estate as are contained in the governing instrument creating
5033+the trust, from investing, reinvesting, or retaining any asset
5034+or business in which the cemetery authority or any officer,
5035+director, owner, partner, or employee of the cemetery
5036+authority has an insubstantial or nonmaterial financial
5037+interest, provided that the trustee, in the exercise of the
5038+trustee's discretion, deems the investment, reinvestment, or
5039+retention to be for the best interest of the trust estate.
5040+(b) The net income from the endowment care fund, to the
5041+extent that the same is distributed from the fund, shall be
5042+used exclusively for covering the costs of endowment care of
5043+the cemetery.
5044+(c) For the purposes of this section, net income does
5045+not include realized or unrealized capital gains or losses.
5046+All realized capital gains and losses shall be recorded to
5047+corpus, which is the sum of deposits made by a cemetery
5048+authority into an endowment care fund, pursuant to Section
5049+27-17A-49 34-13-269, and all realized capital gains or losses.
5050+Capital gains taxes, if any, may be paid from the corpus.
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50875079 Page 90
5088-agreements for sale are being made, within five years after
5089-the date of the first sale or when 75 percent of the mausoleum
5090-or below-ground crypts have been sold and the purchase price
5091-has been received, whichever occurs first. The construction
5092-shall be completed within six years after the date of the
5093-first sale made. Extensions for completion, not to exceed one
5094-year, may be granted by the commissioner board for good cause
5095-shown. If the units have not been completely constructed at
5096-the time of need or the time specified herein, unless
5097-otherwise specified in the preneed contract, all monies paid
5098-shall be refunded upon request, plus interest earned thereon
5099-if deposited by the cemetery authority in an escrow or trust
5100-fund, and if not so deposited in an escrow or trust fund
5101-earning interest, then plus interest in an amount equal to the
5102-interest or discount which would have been earned thereon had
5103-the funds been invested in United States Treasury Bills having
5104-a 90-day maturity."
5105-"§27-17A-56§34-13-276
5106-(a) Cemetery Each cemetery shall adopt rules and
5107-regulations are adopted for the mutual protection of the
5108-cemetery owners and the owners of interment rights in the
5109-cemetery. All owners of interment rights and other persons
5110-within the cemetery shall be subject to these rules and
5111-regulations as they now exist and as they may be amended or
5112-altered by the cemetery. The cemetery authority has the right
5113-to shall enforce these rules and regulations . The cemetery
5114-authority expressly reserves the right and, at any time and
5115-without prior notice to any owners, to may adopt new rules and
5080+Unrealized capital gains and losses, if any, shall be recorded
5081+as an adjustment to the fair market value of the endowment
5082+care fund."
5083+"§27-17A-51§34-13-271
5084+The trustee shall not be required to inquire into the
5085+propriety of the expenditures made by the cemetery authority
5086+in connection with endowment care of the cemetery, and it
5087+shall not be held responsible in any manner whatsoever for and
5088+on account of payments of the income from the endowment care
5089+fund made to the cemetery authority."
5090+"§27-17A-52§34-13-272
5091+The trustee shall, not less than annually, shall file
5092+with the cemetery authority an account which shall include a
5093+complete disclosure of all activity since the previous account
5094+and a statement detailing fund investments."
5095+"§27-17A-53§34-13-273
5096+To the extent that any endowment care trust existing on
5097+May 1, 2002, includes investments or assets, the retention of
5098+which the trustee in the free exercise of its discretion deems
5099+not in the best interest of the trust estate, the trustee
5100+shall dispose of the investments or assets as soon as
5101+practicable without undue sacrifice to the trust estate, and
5102+in any event within two years after May 1, 2002."
5103+"§27-17A-54§34-13-274
5104+An annual report of the endowment care fund shall be
5105+made to the commissioner board by each cemetery authority
5106+within 90 days of the close of each calendar year. This report
5107+shall include the qualified trustee's name or names, the bond
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5135+2520 SB131 INTRODUCEDSB131 INTRODUCED
51445136 Page 91
5145-regulations or to amend, modify, or repeal any section,
5146-paragraph, or sentence of these rules and regulations.
5147-(b) This section shall not apply to the officers,
5148-directors, shareholders, partners, employees, agents, or
5149-representatives of a cemetery authority who intentionally
5150-commit an act of vandalism or other illegal act. "
5151-"§27-17A-57§34-13-277
5152-The commissioner board shall have the same jurisdiction
5153-over funeral establishments, funeral directors, cemetery
5154-authorities, or third party sellers who sell preneed contracts
5155-without a preneed certificate of authority as he or she the
5156-board has over those preneed sellers who possess a preneed
5157-certificate of authority."
5158-Section 10. Beginning with the 2024 fiscal year, the
5159-Department of Insurance may transfer to the Alabama Board of
5160-Funeral Service and Cemetery Service quarterly, for deposit by
5161-the board into the Alabama Board of Funeral Services Fund, the
5162-total amount of three hundred thousand dollars ($300,000) per
5163-fiscal year, to defray costs associated with the
5164-administration and operation of the Alabama Preneed Funeral
5165-and Cemetery Act of 2023 by the board. Unless extended by an
5166-act of the Legislature, this section shall be repealed at the
5167-end of the 2027 fiscal year.
5168-Section 11. Although this bill would have as its
5169-purpose or effect the requirement of a new or increased
5170-expenditure of local funds, the bill is excluded from further
5171-requirements and application under Section 111.05 of the
5172-Constitution of Alabama of 2022, because the bill defines a
5137+numbers if individual trustees or the name and address of the
5138+financial institution in which the fund is maintained, and the
5139+affidavit of the cemetery authority affirming compliance with
5140+this article chapter. Prior to the sale or transfer of a
5141+cemetery, the cemetery authority shall report and document to
5142+the commissioner board that the endowment care fund is
5143+currently funded in accordance with this article chapter."
5144+"§27-17A-55§34-13-275
5145+A cemetery authority shall start construction of that
5146+section of a mausoleum or bank of below-ground crypts in which
5147+sales, contracts for sale, reservations for sale, or
5148+agreements for sale are being made, within five years after
5149+the date of the first sale or when 75 percent of the mausoleum
5150+or below-ground crypts have been sold and the purchase price
5151+has been received, whichever occurs first. The construction
5152+shall be completed within six years after the date of the
5153+first sale made. Extensions for completion, not to exceed one
5154+year, may be granted by the commissioner board for good cause
5155+shown. If the units have not been completely constructed at
5156+the time of need or the time specified herein, unless
5157+otherwise specified in the preneed contract, all monies paid
5158+shall be refunded upon request, plus interest earned thereon
5159+if deposited by the cemetery authority in an escrow or trust
5160+fund, and if not so deposited in an escrow or trust fund
5161+earning interest, then plus interest in an amount equal to the
5162+interest or discount which would have been earned thereon had
5163+the funds been invested in United States Treasury Bills having
5164+a 90-day maturity."
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5192+2548 SB131 INTRODUCEDSB131 INTRODUCED
52015193 Page 92
5202-new crime or amends the definition of an existing crime.
5203-Section 12. This act shall become effective on the
5204-October 1, 2023, following its passage and approval by the
5205-Governor, or its otherwise becoming law.
5194+"§27-17A-56§34-13-276
5195+(a) Cemetery Each cemetery shall adopt rules and
5196+regulations are adopted for the mutual protection of the
5197+cemetery owners and the owners of interment rights in the
5198+cemetery. All owners of interment rights and other persons
5199+within the cemetery shall be subject to these rules and
5200+regulations as they now exist and as they may be amended or
5201+altered by the cemetery. The cemetery authority has the right
5202+to shall enforce these rules and regulations . The cemetery
5203+authority expressly reserves the right and, at any time and
5204+without prior notice to any owners, to may adopt new rules and
5205+regulations or to amend, modify, or repeal any section,
5206+paragraph, or sentence of these rules and regulations.
5207+(b) This section shall not apply to the officers,
5208+directors, shareholders, partners, employees, agents, or
5209+representatives of a cemetery authority who intentionally
5210+commit an act of vandalism or other illegal act. "
5211+"§27-17A-57§34-13-277
5212+The commissioner board shall have the same jurisdiction
5213+over funeral establishments, funeral directors, cemetery
5214+authorities, or third party sellers who sell preneed contracts
5215+without a preneed certificate of authority as he or she the
5216+board has over those preneed sellers who possess a preneed
5217+certificate of authority."
5218+Section 10. Beginning with the 2024 fiscal year, the
5219+Department of Insurance may transfer to the Alabama Board of
5220+Funeral Service and Cemetery Service quarterly, for deposit by
5221+the board into the Alabama Board of Funeral Services Fund, the
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5210-________________________________________________
5211-President and Presiding Officer of the Senate
5212-________________________________________________
5213-Speaker of the House of Representatives
5214-SB131
5215-Senate 06-Apr-23
5216-I hereby certify that the within Act originated in and passed
5217-the Senate, as amended.
5218-Patrick Harris,
5219-Secretary.
5220-House of Representatives
5221-Amended and passed: 18-Apr-23
5222-Senate concurred in House amendment 20-Apr-23
5223-By: Senator Figures
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5250+Page 93
5251+total amount of three hundred thousand dollars ($300,000) per
5252+fiscal year, to defray costs associated with the
5253+administration and operation of the Alabama Preneed Funeral
5254+and Cemetery Act of 2023 by the board. Unless extended by an
5255+act of the Legislature, this section shall be repealed at the
5256+end of the 2027 fiscal year.
5257+Section 11. Although this bill would have as its
5258+purpose or effect the requirement of a new or increased
5259+expenditure of local funds, the bill is excluded from further
5260+requirements and application under Section 111.05 of the
5261+Constitution of Alabama of 2022, because the bill defines a
5262+new crime or amends the definition of an existing crime.
5263+Section 12. This act shall become effective on the
5264+October 1, 2023, following its passage and approval by the
5265+Governor, or its otherwise becoming law.
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