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AL HB81
Bill
Status
3/7/2023
Primary Sponsor
Steve Clouse
Click for details
AI Summary
HB81 Summary
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Renames the Alabama Board of Funeral Service to the Alabama Board of Funeral Services and expands board membership from 9 to 14 members, with seven members on the funeral division and seven on a new preneed division established October 1, 2023.
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Establishes the Alabama Preneed Funeral and Cemetery Act of 2023 by consolidating and renumbering existing preneed contract regulations from Title 27 into Title 34, Chapter 13 of Alabama Code.
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Transfers regulation of preneed funeral and cemetery contracts from the Department of Insurance Commissioner to the Alabama Board of Funeral Services, including licensing of preneed sales agents and oversight of trust funds.
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Authorizes the Department of Insurance to transfer up to $300,000 per fiscal year to the board beginning in fiscal year 2024 through fiscal year 2027 to cover administrative costs of the preneed regulation program.
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Becomes effective October 1, 2023, and maintains extensive definitions and requirements for preneed contracts, trust funds, cemetery endowment care, and criminal penalties for unlicensed preneed sales.
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.
Last Action
Introduced and Referred to House Insurance
3/7/2023