AlabamaAlabama directs service contract provider registration fees into examination fund
Effective October 1, 2026, Alabama’s law directs service contract provider registration fees and unused, uncommitted money from the service contract fund into the Special Examination Revolving Fund.
What it does
Registration fees from providers required to register to sell service contracts in Alabama go into the Special Examination Revolving Fund under the law effective October 1, 2026.
The law requires unused, uncommitted money remaining in the Service Contract Revolving Fund on October 1, 2026, to be transferred to the Special Examination Revolving Fund.
Argument forPutting registration fees and remaining money in one fund could simplify Alabama’s management of money collected from service contract providers.
Argument againstCombining this money with another fund could make fees collected from service contract providers harder to track separately.
More detail
The state deposits service contract provider registration fees into the Special Examination Revolving Fund. This rule covers fees paid by providers required to register to sell service contracts in Alabama. The annual registration fee is $200, or an amount adjusted under Section 41-1-11. The act describes these adjustments as tied to the Consumer Price Index, a measure of inflation. The fee destination rule takes effect on October 1, 2026.
The state must transfer the covered balance to the Special Examination Revolving Fund. The transfer covers money remaining in the Service Contract Revolving Fund. Only money that remains unused and is not already committed must be transferred. The requirement applies to the balance remaining on October 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9EnactedBecame Law
- Apr 2Third Reading in Second House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1178. Result: pass.Lower
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Apr 2Motion to Read a Third Time and Pass - Adopted Roll Call 1178Passed House
- Apr 2Ready to Enroll
- Apr 2EnrolledTo Governor
- Apr 2Signature Requested
- Apr 2Delivered to GovernorMinor
- Mar 5Read for the Second Time and placed on the Calendar (Insurance)Minor
- Mar 4Reported Out of Committee Second House
- Feb 26Read for the first time and referred to the House Committee on InsuranceMinor
- Feb 26Pending Committee Action in Second House (Insurance)
- Feb 25Third Reading in House of Origin
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 616. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Feb 25Motion to Read a Third Time and Pass - Adopted Roll Call 616Passed Senate
- Feb 5Read for the Second Time and placed on the Calendar (Banking and Insurance)Minor
- Feb 4Reported Out of Committee House of Origin
- Jan 29Read for the first time and referred to the Senate Committee on Banking and InsuranceMinor
- Jan 29Pending Committee Action in House of Origin (Banking and Insurance)Introduced
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