HB476 Alabama 2021 Session

Summary

Primary Sponsor

K.L. Brown

Republican

Co-Sponsor

Mike Ball

Session

Regular Session 2021

Title

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Act, established, adding, amending and renumbering numerous sections, Secs. 27-17A-2, 27-17A-17, 27-17A-45, 27-17A-57 repealed; Secs. 34-13-1, 34-13-2, 34-13-4, 34-13-7, 34-13-9, 34-13-11, 34-13-12, 34-13-20, 34-13-22, 34-13-23, 34-13-26, 34-13-27, 34-13-52, 34-13-53, 34-13-54,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.

Summary

HB476 creates the Alabama Preneed Funeral and Cemetery Act of 2021, moving preneed contract regulation to the Alabama Board of Funeral Service and adding licensing and oversight for cemeteries, with new trust funds and consumer protections.

What This Bill Does

It transfers regulation of preneed contracts from the Department of Insurance to the Board of Funeral Service and establishes the Alabama Preneed Funeral and Cemetery Act of 2021. It adds licensing and regulation of cemetery authorities and cemeteries, creates endowment care and cemetery trust funds, and establishes a Preneed Funeral and Cemetery Oversight Committee to oversee preneed sales agents and cemetery-related licensees. It sets up funding rules, reporting, enforcement powers, and consumer protections for preneed contracts and cemetery services, including cancellation rights and trust fund requirements.

Who It Affects

• Funeral service professionals and cemetery-related entities (funeral directors, embalmers, cremationists, preneed sales agents, cemetery sales agents, cemetery authorities, and general managers) who will be licensed, regulated, and overseen by the board and who must meet new background check, reporting, and funding requirements.
• Consumers and contract buyers (purchasers of preneed contracts and cemetery services) who gain updated protections, including funding through trusts or bonds, clear refunds and cancellation rights, and more oversight of how funds are managed and delivered.

Key Provisions

• Establishes the Alabama Preneed Funeral and Cemetery Act of 2021, transferring regulation of preneed contracts to the Alabama Board of Funeral Service and adding cemetery authorities and cemeteries to board regulation.
• Creates the Preneed Funeral and Cemetery Oversight Committee to oversee preneed sales agents, cemetery authorities, and cemetery-related activities, with a defined membership and rules for appointment.
• Requires new licenses and registrations: cemetery establishment license, endowment care cemetery license, general manager license, cemetery sales agent license, and preneed sales agent registration, all with background checks and annual/biennial fees.
• Substitutes transfer of preneed contract regulation from the Department of Insurance to the board; sets funding, reporting, and auditing requirements for preneed contracts, with penalties for noncompliance.
• Creates Endowment Care Funds and Cemetery Merchandise and Services Trust Funds for cemeteries and preneed providers, including defined contribution formulas, investment rules, trustee duties, annual reporting, and protections for contract purchasers.
• Allows funding of preneed contracts through life insurance or annuities, subject to specified rules, and requires proper ownership, tracing, and reporting of such funding mechanisms.
• Imposes consumer protections such as cancellation rights (30-day and post-30-day refunds for preneed contracts), procedures for default, and rules governing transfers when a contract is irrevocable or needs to be reassigned.
• Empowers the board to enforce via inspections, audits, injunctive relief, and fines; authorizes the board to suspend or revoke licenses and establish penalties for violations, including unlawful practices and failure to maintain required funds.
• Authorizes a Funeral Board Property Acquisition Fund to purchase real property, with annual transfers of a portion of receipts, and directs that funds be held in trust to support board operations.
• Repeals certain existing sections related to definitions, dissolution of certificate holders, endowment care funds, and the Department of Insurance’s preneed regulatory jurisdiction, consolidating these under the new Act and board structure.
• Provides that the bill’s enactment would not require a local government 2/3 vote approval due to constitutional exceptions, and specifies the act becomes law after the Governor signs it, with an effective date tied to passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Funeral Service, Board of