Title 040 | Chapter 012 | Regulation 120REG
PROPOSED
This document is not yet current.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:120.Preneed funeral and burial contract sellers.
Section 1.
Preneed Funeral and Burial Contract Seller License Application.(1)
The Attorney General must approve a preneed funeral and burial contract seller license application before a seller may make sales to Commonwealth of Kentucky residents. A preneed funeral and burial contract seller shall submit an online license application using the "Preneed Funeral and Burial Contract Seller License Application portal" available at https://www.ag.ky.gov/AG%20Business%20Forms/1Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit an online application, an applicant shall complete and submit a Preneed Funeral and Burial Contract Seller License Application, Form PNBL-1, to the Attorney General's office, and submit:(a)
Payment of the $50.00 registration fee;(b)
The applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky; and(c)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Registration Application, Form CPN-1, as incorporated by reference in 40 KAR 12:110, when the applicant intends to operate a cemetery company business or sell preneed cemetery merchandise.(3)
Applicants shall complete or submit additional information or documents for their application within thirty (30) days of any request by the Attorney General. The Attorney General may deny any application if an Applicant fails to timely complete the application by not paying the application fee or provide requested missing information or required documents.Section 2.
Preneed Funeral and Burial Contract Seller Monthly Reports.(1)
A licensed preneed funeral and burial contract seller shall submit a monthly report to the Attorney General each month by the 15th day of the month following the reported month. A licensed preneed funeral and burial contract seller shall submit its monthly report online using the "Preneed Funeral and Burial Contract Seller Monthly Report portal" available at available at https://www.ag.ky.gov/AG%20Business%20Forms/Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit an online monthly report, a licensed preneed funeral and burial contract seller shall complete and submit Preneed Funeral and Burial Contract Seller Monthly Report, Form PNBL-2, to the Attorney General's office, and submit:(a)
Payment of the $5.00 administrative fee for each reported contract; and(b)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Monthly Report, Form CPN-2, as incorporated by reference in 40 KAR 12:110, when the licensee is also registered as a cemetery company and preneed cemetery merchandise seller.Section 3.
Preneed Funeral and Burial Contract Seller Yearly Reports.(1)
A licensed preneed funeral and burial contract seller shall submit an annual report to the Attorney General for every calendar year by March 31st of the year following the reported year. A licensed preneed funeral and burial contract seller shall submit its yearly report online using the "Preneed Funeral and Burial Contract Seller Annual Report portal" available at available at https://www.ag.ky.gov/AG%20Business%20Forms/Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit a yearly report online, a licensed preneed funeral and burial contract seller shall complete and submit a Preneed Funeral and Burial Contract Seller Annual Report, Form PNBL-3, to the Attorney General's office, and submit:(a)
Payment of the $10.00 annual report fee;(b)
A completed Appendix A to the Preneed Funeral and Burial Contract Seller Licensee Annual Report, Form PNBL-3, or computer spreadsheets containing required information therein;(c)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Annual Report, Form CPN-3, as incorporated by reference in 40 KAR 12:110, when the licensee is also registered as a cemetery company and preneed cemetery merchandise seller.Section 4.
Irrevocable Funeral Trust Agreements. A licensed preneed funeral and burial contract seller shall complete and retain an Irrevocable Funeral Trust Agreement, Form PBNL-4, when establishing an irrevocable trust under KRS 367.937.Section 5.
Record Requests. A licensed preneed funeral and burial contract seller shall make requested records, documents and information readily available to the Attorney General for inspection and copying upon request.Section 6.
Material Changes in Application and Reports. A licensed preneed funeral and burial contract seller shall notify the Attorney General in writing within fourteen (14) days of any material change relating to the information provided in their applications or reports.Section 7.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Preneed Funeral and Burial Contract Seller License Application", Form PNBL-1, Sept. 2025;(b)
"Preneed Funeral and Burial Contract Seller Monthly Report", Form PNBL-2, Sept. 2025;(c)
"Preneed Funeral and Burial Contract Seller Annual Report with Appendix A", Form PNBL-3, Sept. 2025;(d)
"Irrevocable Funeral Trust Agreement", Form PNBL-4, Sept. 2025;(e)
"Preneed Funeral and Burial Contract Seller License Application portal", Sept. 2025;(f)
"Preneed Funeral and Burial Contract Seller Monthly Report portal", Sept. 2025; and(g)
"Preneed Funeral and Burial Contract Seller Annual Report portal", Sept. 2025;(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General, Capital Complex East, 1024 Capital Center Drive, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the Attorney General's website, https://ag.ky.gov/Pages/default.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: October 14, 2025
FILED WITH LRC: October 15, 2025 at 8:30 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 23, 2025, at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Attorney General in writing at least five (5) working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on December 31, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress Phone Number: 502-696-5481 Email: steve.humphress@ky.gov
Subject Headings:
Attorney General, Embalmers and Funeral Directors; Cremation and Embalming; Cemeteries and Burials
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation prescribes the license application form, reporting forms and other forms to be used by preneed funeral and burial contract sellers, and provides or online application, reporting, and payment processes.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide the methods by which the Office of Attorney General ("Attorney General"), may perform its statutory mandates. The regulation is needed so that preneed funeral and burial contract sellers can comply with statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law by law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 367.972 authorizes the Attorney General to promulgate administrative regulations for the enforcement of KRS 367.932 to 367.974. KRS 367.937 and 367.940 require the Attorney General to promulgate an administrative regulation to establish application forms, reporting forms, and trust forms relating to preneed funeral and burial contract sellers.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation prescribes the license application forms, reporting forms, and trust form relating to preneed funeral and burial contract sellers. This administrative regulation also provides for online application, submission, and payment processes.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
no
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The administrative regulation affects approximately four hundred and forty-five (445) licensed preneed funeral and burial contract sellers, the Attorney General, and unknown future applicants. (5) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
Future applicants will be required to use either the online application processes or the new application form incorporated into this regulation. Licensed preneed funeral and burial contract sellers will be required to use the online reporting processes or new forms incorporated into this regulation. Attorney General staff will review and process the new online submissions and new forms for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
Licensed preneed funeral and burial contract sellers will bear no additional costs as they will be able use online application and reporting processes, or download the forms from the Attorney General’s website, at no cost. The Attorney General will have no additional costs to review the new online submissions or new forms.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The online application, reporting, and payment processes, and the new forms incorporated by this regulation are intended to make it easier for applicants and regulated entities to apply and provide required reports and documentation. In addition, it is intended that the regulation will result in saved administrative resources and time and provide quicker processing time by Attorney General staff.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation, so no funding is needed.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to implement this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This regulation applies equally to all preneed funeral and burial contract sellers.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 367.972(2), 367.937, 367.940.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation was expressly authorized by 1960 Ky. Acts ch. 68, Art. II, sec. 1, effective March 17, 1960; 1972 Ky. Acts ch. 4, sec. 4; and 1984 Ky. Acts ch. 116, sec. 23.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies. (b) Estimate the following for each affected state unit, part, or division in (3)(a):
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation in subsequent years.
2. Revenues:
For the first year:
The administrative regulation will generate no revenues to the Attorney General in the first year. Application and other fees referenced in this regulation were established by statute.
For subsequent years:
The administrative regulation will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the Attorney General will have cost savings through adopted online application and reporting processes in the regulation which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
In subsequent years, the Attorney General will have cost savings through adopted online application and reporting processes which are difficult to estimate at this time but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation in subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Applicants and licensed preneed funeral and burial contract sellers will be affected by this administrative regulation.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause applicants and applicants and licensed preneed funeral and burial contract sellers to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation will not cause applicants and applicants and licensed preneed funeral and burial contract sellers to have any additional expenditures for the first year.
2. Revenues:
For the first year:
Applicants and licensed preneed funeral and burial contract sellers will not receive any revenues from this administrative regulation for the first year.
For subsequent years:
Applicants and licensed preneed funeral and burial contract sellers will not receive any revenues from this administrative regulation for the first year.
3. Cost Savings:
For the first year:
For the first year, applicants and licensed preneed funeral and burial contract sellers will receive cost savings from online application and reporting processes provided by this administrative regulation which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
For subsequent years, applicants and licensed preneed funeral and burial contract sellers will receive cost savings from online application and reporting processes provided by this administrative regulation which are difficult to estimate at this time but estimated to be de minimis.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation will have no fiscal impact. The regulation updates forms and creates online application, reporting, and payment processes for businesses. The regulation does not affect other governmental agencies or local governments. The registration and other fees received by the Attorney General under this regulation are established by statute, not the regulation amendment. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:120.Preneed funeral and burial contract sellers.
Section 1.
Preneed Funeral and Burial Contract Seller License Application.(1)
The Attorney General must approve a preneed funeral and burial contract seller license application before a seller may make sales to Commonwealth of Kentucky residents. A preneed funeral and burial contract seller shall submit an online license application using the "Preneed Funeral and Burial Contract Seller License Application portal" available at https://www.ag.ky.gov/AG%20Business%20Forms/1Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit an online application, an applicant shall complete and submit a Preneed Funeral and Burial Contract Seller License Application, Form PNBL-1, to the Attorney General's office, and submit:(a)
Payment of the $50.00 registration fee;(b)
The applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky; and(c)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Registration Application, Form CPN-1, as incorporated by reference in 40 KAR 12:110, when the applicant intends to operate a cemetery company business or sell preneed cemetery merchandise.(3)
Applicants shall complete or submit additional information or documents for their application within thirty (30) days of any request by the Attorney General. The Attorney General may deny any application if an Applicant fails to timely complete the application by not paying the application fee or provide requested missing information or required documents.Section 2.
Preneed Funeral and Burial Contract Seller Monthly Reports.(1)
A licensed preneed funeral and burial contract seller shall submit a monthly report to the Attorney General each month by the 15th day of the month following the reported month. A licensed preneed funeral and burial contract seller shall submit its monthly report online using the "Preneed Funeral and Burial Contract Seller Monthly Report portal" available at available at https://www.ag.ky.gov/AG%20Business%20Forms/Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit an online monthly report, a licensed preneed funeral and burial contract seller shall complete and submit Preneed Funeral and Burial Contract Seller Monthly Report, Form PNBL-2, to the Attorney General's office, and submit:(a)
Payment of the $5.00 administrative fee for each reported contract; and(b)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Monthly Report, Form CPN-2, as incorporated by reference in 40 KAR 12:110, when the licensee is also registered as a cemetery company and preneed cemetery merchandise seller.Section 3.
Preneed Funeral and Burial Contract Seller Yearly Reports.(1)
A licensed preneed funeral and burial contract seller shall submit an annual report to the Attorney General for every calendar year by March 31st of the year following the reported year. A licensed preneed funeral and burial contract seller shall submit its yearly report online using the "Preneed Funeral and Burial Contract Seller Annual Report portal" available at available at https://www.ag.ky.gov/AG%20Business%20Forms/Online%20Forms%20for%20Cemeteries,%20Funeral%20Homes,%20and%20Crematories.pdf.(2)
If unable to submit a yearly report online, a licensed preneed funeral and burial contract seller shall complete and submit a Preneed Funeral and Burial Contract Seller Annual Report, Form PNBL-3, to the Attorney General's office, and submit:(a)
Payment of the $10.00 annual report fee;(b)
A completed Appendix A to the Preneed Funeral and Burial Contract Seller Licensee Annual Report, Form PNBL-3, or computer spreadsheets containing required information therein;(c)
A completed Cemetery Company and Preneed Cemetery Merchandise Seller Annual Report, Form CPN-3, as incorporated by reference in 40 KAR 12:110, when the licensee is also registered as a cemetery company and preneed cemetery merchandise seller.Section 4.
Irrevocable Funeral Trust Agreements. A licensed preneed funeral and burial contract seller shall complete and retain an Irrevocable Funeral Trust Agreement, Form PBNL-4, when establishing an irrevocable trust under KRS 367.937.Section 5.
Record Requests. A licensed preneed funeral and burial contract seller shall make requested records, documents and information readily available to the Attorney General for inspection and copying upon request.Section 6.
Material Changes in Application and Reports. A licensed preneed funeral and burial contract seller shall notify the Attorney General in writing within fourteen (14) days of any material change relating to the information provided in their applications or reports.Section 7.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Preneed Funeral and Burial Contract Seller License Application", Form PNBL-1, Sept. 2025;(b)
"Preneed Funeral and Burial Contract Seller Monthly Report", Form PNBL-2, Sept. 2025;(c)
"Preneed Funeral and Burial Contract Seller Annual Report with Appendix A", Form PNBL-3, Sept. 2025;(d)
"Irrevocable Funeral Trust Agreement", Form PNBL-4, Sept. 2025;(e)
"Preneed Funeral and Burial Contract Seller License Application portal", Sept. 2025;(f)
"Preneed Funeral and Burial Contract Seller Monthly Report portal", Sept. 2025; and(g)
"Preneed Funeral and Burial Contract Seller Annual Report portal", Sept. 2025;(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General, Capital Complex East, 1024 Capital Center Drive, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on the Attorney General's website, https://ag.ky.gov/Pages/default.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: October 14, 2025
FILED WITH LRC: October 15, 2025 at 8:30 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 23, 2025, at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Attorney General in writing at least five (5) working days prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on December 31, 2025. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress Phone Number: 502-696-5481 Email: steve.humphress@ky.gov
Subject Headings:
Attorney General, Embalmers and Funeral Directors; Cremation and Embalming; Cemeteries and Burials
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation prescribes the license application form, reporting forms and other forms to be used by preneed funeral and burial contract sellers, and provides or online application, reporting, and payment processes.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide the methods by which the Office of Attorney General ("Attorney General"), may perform its statutory mandates. The regulation is needed so that preneed funeral and burial contract sellers can comply with statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law by law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 367.972 authorizes the Attorney General to promulgate administrative regulations for the enforcement of KRS 367.932 to 367.974. KRS 367.937 and 367.940 require the Attorney General to promulgate an administrative regulation to establish application forms, reporting forms, and trust forms relating to preneed funeral and burial contract sellers.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation prescribes the license application forms, reporting forms, and trust form relating to preneed funeral and burial contract sellers. This administrative regulation also provides for online application, submission, and payment processes.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
no
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The administrative regulation affects approximately four hundred and forty-five (445) licensed preneed funeral and burial contract sellers, the Attorney General, and unknown future applicants. (5) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
Future applicants will be required to use either the online application processes or the new application form incorporated into this regulation. Licensed preneed funeral and burial contract sellers will be required to use the online reporting processes or new forms incorporated into this regulation. Attorney General staff will review and process the new online submissions and new forms for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
Licensed preneed funeral and burial contract sellers will bear no additional costs as they will be able use online application and reporting processes, or download the forms from the Attorney General’s website, at no cost. The Attorney General will have no additional costs to review the new online submissions or new forms.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The online application, reporting, and payment processes, and the new forms incorporated by this regulation are intended to make it easier for applicants and regulated entities to apply and provide required reports and documentation. In addition, it is intended that the regulation will result in saved administrative resources and time and provide quicker processing time by Attorney General staff.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation, so no funding is needed.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to implement this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This regulation applies equally to all preneed funeral and burial contract sellers.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 367.972(2), 367.937, 367.940.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation was expressly authorized by 1960 Ky. Acts ch. 68, Art. II, sec. 1, effective March 17, 1960; 1972 Ky. Acts ch. 4, sec. 4; and 1984 Ky. Acts ch. 116, sec. 23.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies. (b) Estimate the following for each affected state unit, part, or division in (3)(a):
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation in subsequent years.
2. Revenues:
For the first year:
The administrative regulation will generate no revenues to the Attorney General in the first year. Application and other fees referenced in this regulation were established by statute.
For subsequent years:
The administrative regulation will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the Attorney General will have cost savings through adopted online application and reporting processes in the regulation which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
In subsequent years, the Attorney General will have cost savings through adopted online application and reporting processes which are difficult to estimate at this time but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation in subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Applicants and licensed preneed funeral and burial contract sellers will be affected by this administrative regulation.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause applicants and applicants and licensed preneed funeral and burial contract sellers to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation will not cause applicants and applicants and licensed preneed funeral and burial contract sellers to have any additional expenditures for the first year.
2. Revenues:
For the first year:
Applicants and licensed preneed funeral and burial contract sellers will not receive any revenues from this administrative regulation for the first year.
For subsequent years:
Applicants and licensed preneed funeral and burial contract sellers will not receive any revenues from this administrative regulation for the first year.
3. Cost Savings:
For the first year:
For the first year, applicants and licensed preneed funeral and burial contract sellers will receive cost savings from online application and reporting processes provided by this administrative regulation which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
For subsequent years, applicants and licensed preneed funeral and burial contract sellers will receive cost savings from online application and reporting processes provided by this administrative regulation which are difficult to estimate at this time but estimated to be de minimis.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation will have no fiscal impact. The regulation updates forms and creates online application, reporting, and payment processes for businesses. The regulation does not affect other governmental agencies or local governments. The registration and other fees received by the Attorney General under this regulation are established by statute, not the regulation amendment. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.