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AL HB212
Bill
Status
3/23/2023
Primary Sponsor
Steve Clouse
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AI Summary
HB212 Summary
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Renames the Alabama Board of Funeral Service to the Alabama Board of Funeral Services and expands board membership from nine to 14 members, creating separate funeral and preneed divisions with specific professional and consumer representation requirements.
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Establishes the Alabama Preneed Funeral and Cemetery Act of 2023, transferring regulation of preneed contracts from the Department of Insurance Commissioner to the Alabama Board of Funeral Services, including authority over certificate holders, preneed sales agents, and trust fund requirements.
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Reorganizes preneed contract regulations into four divisions covering general provisions, certificates of authority, funeral merchandise and services trust funds, and cemetery merchandise and services trust funds with specific deposit requirements.
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Authorizes the Department of Insurance to transfer up to $300,000 per fiscal year to the Board of Funeral Services for administration and operation costs of preneed contract regulation, with authorization expiring at the end of fiscal year 2027 unless extended.
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Becomes effective October 1, 2023, and defines new criminal penalties for unlicensed preneed contract sales and misappropriation of preneed funds, ranging from Class A misdemeanors to Class B felonies based on amounts involved.
Legislative Description
Relating to the Alabama Board of Funeral Service; to amend Section 34-13-1, as amended by Act 2022-339, 2022 Regular Session, Sections 34-13-20, 34-13-21, and 34-13-22, Sections 34-13-23 and 34-13-27, as amended by Act 2022-339, 2022 Regular Session, Code of Alabama 1975, to rename the Alabama Board of Funeral Service as the Alabama Board of Funeral Services and to provide further for definitions and the membership of the board; to add Article 5 to Chapter 13, Title 34, Code of Alabama 1975, by amending and renumbering Sections 27-17A-1, 27-17A-3, 27-17A-4, 27-17A-10 to 27-17A-25, inclusive, 27-17A-30 to 27-17A-34, inclusive, and 27-17A-40 to 27-17A-57, inclusive, as Sections 34-13-170 to 34-13-172, inclusive, 34-13-190 to 34-13-206, inclusive, 34-13-230 to 34-13-234, inclusive, and 34-13-260 to 34-13-277, inclusive, Code of Alabama 1975; to establish the Alabama Preneed Funeral and Cemetery Act of 2023; to transfer the existing Preneed Funeral and Cemetery Act, and the regulation of preneed contracts, from the Commissioner and Department of Insurance to the Alabama Board of Funeral Service; to authorize the Department of Insurance to temporarily transfer certain funds to the board to defray costs associated with the administration and operation of the Alabama Preneed Funeral and Cemetery Act of 2023; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.
Alabama Preneed Funeral and Cemetery Act of 2023
Last Action
Indefinitely Postpone
5/31/2023