AI-assisted research summary: This provision makes several preneed-related actions criminal offenses and sets felony or misdemeanor penalties depending on the conduct and amount involved.
(a)(1) A person who knowingly receives payments for a preneed contract without having a valid certificate of authority: a. Commits a Class B felony as to each contract on which the payments collected equal or exceed, in the aggregate, two thousand five hundred dollars ($2,500). b. Commits a Class C felony as to each contract on which the payments collected are between, in the aggregate, five hundred dollars ($500) and two thousand five hundred dollars ($2,500). c. Commits a Class A misdemeanor as to each contract on which the payments collected do not exceed, in the aggregate, five hundred dollars ($500). (2) In addition to the criminal penalty imposed under subdivision (1), upon conviction of an offense under subdivision (1), a person may not thereafter obtain a certificate of authority or register as a preneed sales agent. (b)(1) A person who willfully fails to timely deposit the amount required to be so deposited under this chapter in a preneed merchandise and services trust or endowment care trust: a. Commits a Class B felony as to each contract on which the amount due for deposit in trust equals or exceeds, in the aggregate, two thousand five hundred dollars ($2,500). b. Commits a Class C felony as to each contract on which the amount due for deposit in trust is less than, in the aggregate, two thousand five hundred dollars ($2,500). (2) In addition to the criminal penalty imposed under subdivision (1), upon conviction of an offense under subdivision (1), the certificate of authority or preneed sales agent registration held by the person shall be automatically revoked and the person may not thereafter obtain a certificate of authority or register as a preneed sales agent. (c)(1) A person who knowingly withdraws funds or assets from a preneed merchandise and services trust or endowment care trust in a manner or under circumstances not authorized by this chapter or rule of the board : a. Commits a Class B felony if the aggregate amount withdrawn in any single transaction or series of related transactions equals or exceeds two thousand five hundred dollars ($2,500). b. Commits a Class C felony if the aggregate amount withdrawn in any single transaction or series of related transactions is less than two thousand five hundred dollars ($2,500). (2) In addition to the criminal penalty imposed under subdivision (1), upon conviction of an offense under subdivision (1), the certificate of authority or preneed sales agent registration held by the person shall be automatically revoked and the person may not thereafter obtain a certificate of authority or register as a preneed sales agent. (d) A person commits a Class C felony if any of the following occur: (1) The person knowingly delivers to the board any official form, report, record, data, or other document required by the board containing a false statement or false information concerning a matter material to the board in the exercise of its authority to administer and enforce this chapter. (2) Incident to, or during the course of, an examination, inspection, investigation, or other inquiry authorized by this chapter, the person knowingly makes available to a representative of the board any official form, report, record, data, or other document required by the board containing a false statement or false information concerning a matter material to the purpose of the examination, inspection, investigation, or inquiry. (3) With respect to the business records of a person engaging in, or who has at any time engaged in, the sale of a preneed contract, a person, with a purpose to use deception as defined in Section 13A-8-1, makes false entries in the records or alters, erases, obliterates, deletes, or removes a correct entry in the records, fails to make a correct entry in the records, or prevents the making of a correct entry, or causes the omission of a correct entry in the records. (e) Except as otherwise provided in this chapter , the willful violation of this chapter is a Class A misdemeanor .