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AL HB47
Bill
Status
3/17/2022
Primary Sponsor
K.L. Brown
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AI Summary
HB47 Summary: Alabama Preneed Funeral and Cemetery Act of 2022
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Transfers regulatory authority of preneed funeral and cemetery contracts from the Department of Insurance to the Alabama Board of Funeral Service, establishing the Alabama Preneed Funeral and Cemetery Act of 2022.
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Expands board membership from nine to seven professional members (licensed embalmers and funeral directors) and two consumer members, with specific requirements for licensing and appointment procedures.
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Establishes trust fund requirements for preneed contracts, including specific percentages of purchase prices that must be deposited in trust (75% for funeral services/merchandise, 60% for outer burial containers, 110% of wholesale cost for memorials, 100% for cash advance items).
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Authorizes Department of Insurance to transfer up to $300,000 annually to the Board of Funeral Service (fiscal years 2022-2025) to cover administrative costs of the new regulatory structure.
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Adds extensive definitions and regulations governing cemetery authorities, preneed sales agents, trust requirements, endowment care funds, contract cancellation rights, and criminal penalties for violations.
Legislative Description
Funeral Service Board, licensing and regulation of cemetery authorities and cemeteries, Alabama Preneed Funeral and Cemetery Act, established, adding, amending and renumbering numerous sections, Secs. 27-17A-2, 27-17A-17, 27-17A-45, 27-17A-57 repealed; Secs. 34-13-1, 34-13-2, 34-13-4, 34-13-7, 34-13-9, 34-13-11, 34-13-12, 34-13-20, 34-13-22, 34-13-23, 34-13-26, 34-13-27, 34-13-52, 34-13-53, 34-13-54, 34-13-55, 34-13-56, 34-13-56.1, 34-13-111, 34-13-113 am'd.
Funeral Service, Board of
Last Action
Pending third reading on day 29 Favorable from Judiciary
4/6/2022