COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         5594-02

Bill No.:          HB 2594

Subject:           Contracts and Contractors; Funeral and Funeral Directors; Insurance Dept.

Type:              Original

Date:               April 30, 2008

Bill Summary:           Changes the laws regarding preneed funeral contracts.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator assume the proposal will have no fiscal impact on their organization.

Officials from the Office of Attorney General assume any potential costs arising from this proposal can be absorbed with existing resources.

Officials from the Office of Administration (COA) - Administrative Hearing Commission anticipate this legislation will not significantly alter its caseload. However, if other similar bills also pass, there are more cases, or the cases are more complex, there could be a fiscal impact.

Officials from the Office of Secretary of State (SOS) state the fiscal impact for this proposal for Administrative Rules is less than $2,500. The SOS does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the SOS can sustain within its core budget. Therefore, the SOS reserves the right to request funding for the costs of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the Governor.

Officials from the Department of Insurance, Financial Institutions and Professional Registration (DIFP) state this legislation amends Chapter 436 relating to preneed funeral contracts; allows the board to randomly audit preneed providers and sellers; and authorizes the board to promulgate rules related to Chapter 436.

The board does not expect that additional FTE will be required to implement this proposal. However, should additional reporting requirements or fiscal analysis of preneed contracts be required, additional FTE may be requested. Additional appropriation authority may be requested to allow for the assessment of charges related to inspections, investigations, examinations, or audits. Therefore, the board reserves the right to request additional FTE and appropriation authority should the need arise based on a review of the finally approved bill signed by the Governor.

FISCAL IMPACT - Small Business

The proposal may impact small business sellers of preneed funeral contracts.

FISCAL DESCRIPTION

The proposed legislation appears to have no fiscal impact.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of Attorney General

Office of Administration -

            Administrative Hearing Commission

Office of State Courts Administrator

Department of Insurance, Financial Institutions and Professional Registration

Office of Secretary of State

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 30, 2008