Read the full stored bill text
SB107 ENROLLED
Page 0
SB107
ARLZUQ7-3
By Senators Figures, Gudger
RFD: State Governmental Affairs
First Read: 13-Jan-26
1
2
3
4
5
SB107 Enrolled
Page 1
First Read: 13-Jan-26
Enrolled, An Act,
Relating to the Alabama Board of Funeral Services; to
amend Sections 34-13-30.1, 34-13-191, 34-13-192, and
34-13-199, Code of Alabama 1975; to authorize the board to
impose an administrative fee on each funeral establishment for
each funeral arranged; to increase the initial application,
renewal, branch registration, and transfer fees relating to a
certificate of authority; to require a certificate holder to
file an annual statement of preneed activities conducted; to
require a certificate holder to file an annual report relating
to preneed contract activities and authorize the board to
require the filing of additional reports as needed; and to
increase the initial application and renewal fees for
registration as a preneed sales agent
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 34-13-30.1, 34-13-191, 34-13-192,
and 34-13-199 of the Code of Alabama 1975, are amended to read
as follows:
"§34-13-30.1
(a) Beginning with the 2024 fiscal year, the Department
of Insurance may transfer to the board quarterly, for deposit
by the board into the Alabama Board of Funeral Services Fund,
the total amount of three hundred thousand dollars ($300,000)
per fiscal year, to defray costs associated with the
administration and operation of the Alabama Preneed Funeral
and Cemetery Act of 2023 by the board.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
SB107 Enrolled
Page 2
and Cemetery Act of 2023 by the board.
(b) Unless extended by an act of the Legislature, this
section shall be repealed at the end of the 2027 fiscal year
subsection (a) and this subsection shall have no further
effect .
(c) Beginning June 1, 2026, upon each final disposition
for which a funeral establishment makes funeral arrangements
or otherwise renders services regulated by this chapter, the
board may require each funeral establishment to pay an
administrative fee, not to exceed thirty dollars ($30), to the
board for deposit by the board into the Alabama Board of
Funeral Services Fund. The board, by rule, may provide
procedures for assessing and collecting the fee. "
"§34-13-191
(a) An application to the board for a certificate of
authority shall be accompanied by the statement and other
matters described in this section in the form prescribed by
the board. Annually thereafter, or within an extension of time
therefor, as the board for good cause may grant, the person
authorized to engage in the sale of preneed contracts shall
file with the board a full and true statement of his or her
financial condition, transactions, and affairs , prepared on a
basis as adopted by a rule of the board, as of the preceding
fiscal period or at such other time or times as the board may
provide by rule, together with information and data which may
be required by the board.
(b) The statement shall include all of the following:
(1) The types of preneed contracts proposed to be
written and the type of funding vehicles to be used.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
SB107 Enrolled
Page 3
written and the type of funding vehicles to be used.
(2) The name and address of the place of business of
the person offering to write preneed contracts.
(3) Evidence that the person offering the statement has
all of the following qualifications:
a. Has the The ability to discharge his or her preneed
liabilities as they become due in the normal course of
business and has sufficient funds available during the
calendar year to perform his or her obligations under the
contract.
b. Has complied Compliance with the trust requirements
for the funds received under contracts issued by himself or
herself as hereinafter described.
c. Has disbursed Compliance with the disbursement
requirements for interest, dividends, or accretions earned by
trust funds, in accordance with this chapter and rules adopted
hereunder pursuant to this chapter .
d. Has complied Compliance with this chapter and any
rules of the board.
(4) Any other information considered necessary by the
board to meet the board's responsibilities under this chapter.
(c) If the person is an individual, the statement shall
be sworn to by him or her; if a firm or association, by all
members thereof; or, if a corporation, by any officer of the
corporation.
(d)(1) An application to the board for an initial
certificate of authority shall be accompanied by an
application fee in an amount to be determined by the board ,
not to exceed one hundred ninety-eight dollars ($198) five
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
SB107 Enrolled
Page 4
not to exceed one hundred ninety-eight dollars ($198) five
hundred dollars ($500) . Thereafter, each annual application
for renewal of a certificate of authority shall be accompanied
by the appropriate fee as determined by the board not to
exceed ninety-nine dollars ($99) five hundred dollars ($500) .
(2) Any person or entity that is part of a common
business enterprise that has a certificate of authority issued
pursuant to this chapter and elects to operate under a name
other than that of the common business enterprise shall submit
an application on a form prescribed by the board to become a
branch registrant. Upon the approval of the board that the
entity qualifies to sell preneed contracts under this chapter ,
except for the requirements of paragraph a. of subdivision (3)
of subsection (b)(3)a., and if the certificate holder meets
the requirements of paragraph (b)(3) a., a branch registration
shall be issued. Each branch registrant may operate under the
certificate of authority of the common business enterprise
upon the payment of a fee established by the board not to
exceed one hundred ninety-eight dollars ($198) accompanying
the application on September 1 annually five hundred dollars
($500). Thereafter, each annual application for renewal of a
branch registration shall be accompanied by the appropriate
fee, as determined by the board, not to exceed five hundred
dollars ($500) .
(e) Upon the board being satisfied that the statement
and matters that accompany the statement meet the requirements
of this chapter and of its rules, the board shall issue or
renew the certificate of authority.
(f) The certificate of authority shall expire annually
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
SB107 Enrolled
Page 5
(f) The certificate of authority shall expire annually
on October 1 , unless renewed, or at such other time or times
as the board may provide by rule.
(g) On or before a date adopted by the board each year,
the certificate holder shall file with the board in the form
prescribed by the board a full and true statement as to the
any preneed activities of any trust established by it pursuant
to this chapter for the preceding calendar year.
(h) In addition to any other penalty that may be
provided for under this chapter, the board may levy a fine not
to exceed fifty dollars ($50) per day for each day the
certificate holder fails to file its annual statement, and the
board may levy a fine not to exceed fifty dollars ($50) per
day for each day the certificate holder fails to file the
statement of activities of the trust. Upon notice to the
certificate holder by the board that the certificate holder
has failed to file the annual statement or the statement of
activities of the trust, the certificate holder's authority to
sell preneed contracts shall cease while the default
continues.
(i) To facilitate uniformity in financial statements
and to facilitate analysis, the board, by rule, may adopt a
form for financial statements. The holder of a certificate of
authority may submit a written request to the board to exempt
the holder from filing financial statements at renewal. The
board may waive the requirement for filing a financial
statement at renewal if all of the following are satisfied:
(1) No valid complaint has been filed since the last
audit.
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
SB107 Enrolled
Page 6
audit.
(2) No administrative action against the preneed entity
has been instituted since the last audit.
(3) The certificate holder certifies that all
outstanding preneed contracts written by the holder since
April 30, 2002, are fully funded in accordance with this
chapter.
(4) The certificate holder certifies that it will fully
fund all preneed contracts with life insurance , or annuity, or
will deposit 100 percent of all funds collected on all preneed
contracts in trust within 30 days after the end of the
calendar month in which the funds are collected.
(5) The preneed entity has provided to the board in a
timely manner all required and requested records.
(6) The preneed entity agrees to file reports of its
preneed activity on a form, in a format, and as often as
prescribed by the board.
(j) The board may authorize the transfer of
certificates of authority and establish fees for the transfer
in an amount not to exceed one hundred thirty-two dollars
($132) five hundred dollars ($500) . Upon receipt of an
application for transfer, the board may grant a temporary
certificate of authority to the proposed transferee, based
upon criteria established by the board , by rule , which . The
criteria shall promote the purposes of this chapter in
protecting the consumer. A temporary certificate of authority
shall expire 60 days after issuance unless renewed by the
board."
"§34-13-192
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
SB107 Enrolled
Page 7
"§34-13-192
(a) On or before July 1, each Each year, the
certificate holder shall file a report one or more reports of
its preneed contract activity on a form or in a format
prescribed by the board and as often as deemed necessary by
the board . The information reported shall include the total
number of preneed contracts in force at the end of the
previous calendar year, the total number of preneed contracts
sold during the previous calendar year, the total number of
preneed contracts fulfilled during the previous calendar year,
the total number of preneed contracts in force at the end of
the previous calendar year, and such other information as may
be required by the board. The report shall be organized by
type of funding, including life insurance, annuity, trust,
letter of credit, or surety bond. The report shall also
provide a certification by the trustee of the amount of assets
held by the trust at the beginning of the reporting period and
at the end of the reporting period, together with the amount
of deposits and withdrawals during the reporting period. If a
certificate holder twice defaults in complying with the
requirements of this subsection, the board may require that
the certificate holder thereafter submit the report within 45
days after the end of each calendar quarter and shall continue
so reporting for a time to be determined by the board.
(b) The certificate holder shall maintain a written log
of preneed sales. The log shall be on a form or in a format
prescribed by the board, shall detail all information required
by the board, and shall be available for inspection at any
time by the board.
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
SB107 Enrolled
Page 8
time by the board.
(c) Each cemetery authority shall maintain a written
log of the sale of cemetery interment rights. The log shall be
on a form or in a format prescribed by the board and shall
detail all information required by the board.
(d) The board may maintain a statewide database of
preneed contracts reported to the board pursuant to subsection
(a). The board may make information in this database
searchable by the public by means of unique identifiers, or
any other means , that the board determines respects the
privacy of those involved while also protecting consumers from
financial waste by allowing families to determine if a
deceased loved one has an existing preneed contract. Any
preneed consumer who does not wish for his or her information
to appear in this searchable database may opt out by following
a process established by the board."
"§34-13-199
(a) All individuals who offer preneed contracts to the
public, or who execute preneed contracts on behalf of a
certificate holder, shall be registered with the board as
preneed sales agents, pursuant to this chapter.
(b) All preneed sales agents and funeral directors
acting as preneed sales agents shall be affiliated with the
certificate holder that they are representing.
(c) A certificate holder shall be responsible for the
activities of all preneed sales agents and all funeral
directors acting as preneed sales agents who are affiliated
with the certificate holder and who perform any type of
preneed-related activity on behalf of the certificate holder.
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
SB107 Enrolled
Page 9
preneed-related activity on behalf of the certificate holder.
In addition to the preneed sales agents and funeral directors
acting as preneed sales agents, each certificate holder shall
also be subject to discipline if its preneed sales agents or
funeral directors acting as preneed sales agents violate this
chapter.
(d) A preneed sales agent and a funeral director acting
as a preneed sales agent may sell, offer, and execute preneed
contracts on behalf of all properly licensed entities owned or
operated by the sponsoring certificate holder.
(e) An individual may begin operating as a preneed
sales agent as soon as a completed application for
registration, as set forth in subsection (g), is approved by
the board.
(f)(1) The qualifications for a preneed sales agent are
as follows:
a. The applicant must be at least 18 years of age.
b. The applicant must be in good standing with the
board.
c. The applicant may not have any felony or misdemeanor
convictions that relate to any activity regulated by this
chapter or a crime involving moral turpitude, as defined by
this chapter.
d. The applicant shall be of good moral character and
submit to a criminal history background check pursuant to
subdivision (2).
(2) An applicant for licensure as a preneed sales agent
shall submit to the board, on a form sworn to by the
applicant, his or her name, date of birth, Social Security
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
SB107 Enrolled
Page 10
applicant, his or her name, date of birth, Social Security
number, and two complete sets of fingerprints for completion
of a criminal history background check. The board shall submit
the fingerprints to the Alabama State Law Enforcement Agency
for a state criminal history background check. The
fingerprints shall be forwarded by the agency to the Federal
Bureau of Investigation for a national criminal history
background check. Costs associated with conducting a criminal
history background check shall be paid by the applicant. The
board shall keep information received pursuant to this
subdivision confidential, except that information received and
relied upon in denying the issuance of a certificate of
authority may be disclosed if necessary to support the denial.
All character information, including the information obtained
through the criminal history background checks, shall be
considered in licensure decisions to the extent permissible by
all applicable laws.
(g) An application for registration as a preneed sales
agent shall be submitted to the board with an application fee
determined by the board , but not to exceed thirty-three
dollars ($33) two hundred dollars ($200) , by the certificate
holder in a form that has been prescribed by board rule. The
application shall contain, at a minimum, all of the following:
(1) The name, address, Social Security number, and date
of birth of the applicant and any other information as the
board may reasonably require of the applicant.
(2) The name, address, and license number of the
sponsoring certificate holder.
(3) A representation, signed by the applicant, that the
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
SB107 Enrolled
Page 11
(3) A representation, signed by the applicant, that the
applicant meets the requirements set forth in subsection (f).
(4) A representation, signed by the certificate holder,
that the applicant is authorized to offer, sell, and sign
preneed contracts on behalf of the certificate holder and that
the certificate holder has trained the applicant in this
chapter relating to preneed sales, the provisions of the
certificate holder's preneed contract, and the nature of the
merchandise, services, or burial rights sold by the
certificate holder.
(5) A statement indicating whether the applicant has
any type of working or agency relationship with any other
certificate holder or insurance company.
(h) An individual may be registered as a preneed sales
agent on behalf of more than one certificate holder, provided
that the individual has received the written consent of all
certificate holders.
(i) A certificate holder who has registered a preneed
sales agent shall notify the board within 30 days after the
individual's status as a preneed sales agent has been
terminated.
(j) Upon approval of an application that complies with
all of the requirements of subsection (g), the board shall
register the applicant. The board, in accordance with this
chapter, shall provide for annual renewal of registration upon
receipt of a renewal application and a renewal fee not to
exceed thirty-three dollars ($33) two hundred dollars ($200)
as set by the board."
Section 2. This act shall become effective on June 1,
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
SB107 Enrolled
Page 12
Section 2. This act shall become effective on June 1,
2026.309
SB107 Enrolled
Page 13
2026.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB107
Senate 12-Mar-26
I hereby certify that the within Act originated in and passed
the Senate, as amended.
Patrick Harris,
Secretary.
House of Representatives
Passed: 08-Apr-26
By: Senator Figures
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342