AZ HB2694

Transfers licensing authority for funeral escort vehicles and military escort vehicles from county sheriffs to the state board of funeral directors and embalmers.

Establishes new licensing requirements for drivers of funeral escort vehicles (must work for a funeral escort business) and military escort vehicles (must be affiliated with a nonprofit corporation providing military processions).

Permits nonprofit corporations operating military escort vehicles to use temporarily affixed red/blue lights instead of permanent lights, and allows drivers to wear reflective vests with markings instead of permanently marked vehicles.

Requires motor vehicle liability insurance policies for funeral escort businesses and nonprofits providing military processions to list the state board of funeral directors as the certificate holder.

Authorizes the state board to establish fees for licensing funeral and military escort vehicles and their drivers, and requires the board to adopt rules governing these licensing procedures.