Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 81 of the Regular Session
 1   State of Arkansas
 2   94th General Assembly                        A Bill
 3   Regular Session, 2023                                                               SENATE BILL 98
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 5   By: Senator D. Wallace
 6   By: Representative Rye
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 8                                     For An Act To Be Entitled
 9                  AN ACT TO AMEND THE CERTIFICATE FOR BENEFITS FOR
10                  BURIAL ASSOCIATIONS; TO CLARIFY THE PERCENTAGE
11                  PAYABLE TO SUBSTITUTE SERVICE-PROVIDING FUNERAL HOMES
12                  BASED ON MEMBERSHIP DATA AND PROXIMITY TO THE
13                  CONTRACT FUNERAL HOME; AND FOR OTHER PURPOSES.
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16                                                 Subtitle
17                           TO AMEND THE CERTIFICATE FOR BENEFITS FOR
18                           BURIAL ASSOCIATIONS; AND TO CLARIFY THE
19                           PERCENTAGE PAYABLE TO SUBSTITUTE SERVICE-
20                           PROVIDING FUNERAL HOMES BASED ON
21                           MEMBERSHIP DATA AND PROXIMITY TO THE
22                           CONTRACT FUNERAL HOME.
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25   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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27          SECTION 1.        Arkansas Code § 23-78-112(b), concerning the percentage
28   payable under a certificate for benefits to a funeral home other than the
29   contract funeral home, is amended to read as follows:
30          (b)    If For memberships issued on or after July 19, 1987, if other than
31   the contract funeral home performs the funeral service, the benefit shall be
32   paid to that licensed, servicing funeral home on the basis of one hundred
33   percent (100%) of the face amount of the certificate, in cash.
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35          SECTION 2.        Arkansas Code § 23-78-112, concerning certificates for
36   benefits applicable to burial associations, is amended to add additional
     *ANS043*                                                                 01/19/2023 03:21:31 PM ANS043
                                                                                    SB98
 1   subsections to read as follows:
 2        (c)(1)     For memberships issued before July 1, 1967, if a licensed
 3   funeral home other than the contract funeral home performs the funeral
 4   service, the benefit shall be paid to that licensed, servicing funeral home
 5   according to the agreement contained in the certificate of membership between
 6   the member and the burial association.
 7                 (2)   For memberships issued between July 1, 1967, through August
 8   5, 1976, if a licensed funeral home other than the contract funeral home
 9   performs the funeral service and the service occurs outside of the burial
10   association’s service area, as established by the certificate of membership,
11   then the benefit shall be paid to the licensed, servicing funeral home at a
12   minimum rate of seventy percent (70%) of the certificate for benefit face
13   amount or seventy percent (70%) of the amount credited on the at-need or
14   final billing statement, whichever is higher.
15                 (3)   For memberships issued between August 5, 1976, through July
16   19, 1987, if a licensed funeral home other than the contract funeral home
17   performs the funeral service and the service occurs outside of the burial
18   association’s service area, as established by the certificate of membership,
19   then the benefit shall be paid to the licensed, servicing funeral home at a
20   minimum rate of eighty percent (80%) of the certificate for benefit face
21   amount or eighty percent (80%) of the amount credited on the at-need or final
22   billing statement, whichever is higher.
23        (d)   If a licensed funeral home other than the contract funeral home
24   performs the funeral service and the licensed, servicing funeral home’s at-
25   need or final billing statement reflects a credit for the full burial
26   association certificate for benefit amount, then:
27                 (1)   A burial association member is considered to have been made
28   whole by the licensed, servicing funeral home and the family or responsible
29   party of the deceased member is not entitled to receive any additional funds,
30   reimbursement, or refund of any paid-in dues, or other compensation, cash or
31   merchandise, on the deceased burial association member’s certificate of
32   membership; and
33                 (2)(A)   If the contract funeral home administering the burial
34   association’s business renders payment to the licensed, servicing funeral
35   home, based on the percentages in subsection (b) of this section and
36   subdivisions (c)(1) and (2) of this section, then it is at the discretion of
                                           2            01/19/2023 03:21:31 PM ANS043
                                                                                  SB98
 1   the licensed, servicing funeral home whether or not to retain the disbursed
 2   burial association funds or to return the funds to the family or responsible
 3   party of the deceased member.
 4                    (B)   Any payment to the family or responsible party is to
 5   be made by the licensed, servicing funeral home, and not the burial
 6   association or the burial association’s contract funeral home.
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 9                                   APPROVED: 2/17/23
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Statutes affected: 
SB 98: 23-78-112(b), 23-78-112
Act 81: 23-78-112(b), 23-78-112