SB306 Alabama 2021 Session

Summary

Primary Sponsor

Vivian Davis FiguresSenator

Democrat

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Act, established, adding, amending and renumbering numerous sections, Secs. 27-17A-2, 27-17A-17, 27-17A-45, 27-17A-57 repealed; Secs. 34-13-1, 34-13-2, 34-13-4, 34-13-7, 34-13-9, 34-13-11, 34-13-12, 34-13-20, 34-13-22, 34-13-23, 34-13-26, 34-13-27, 34-13-52, 34-13-53, 34-13-54,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

SB306 creates the Alabama Preneed Funeral and Cemetery Act of 2021, moving regulation of preneed contracts and cemeteries to the Alabama Board of Funeral Service and establishing new oversight and licensing for cemetery authorities and related services.

What This Bill Does

It transfers regulation of preneed contracts, endowment care, and related licensing from the Department of Insurance to the Alabama Board of Funeral Service and creates the Alabama Preneed Funeral and Cemetery Act of 2021. It authorizes the board to license and regulate cemetery authorities and cemeteries, add new license categories (preneed sales agents, cemetery sales agents, general managers), require background checks, and set renewal and enforcement rules. It establishes funding and oversight rules for endowment care and cemetery trust funds, outlines investment and reporting requirements, and creates a Preneed Funeral and Cemetery Oversight Committee to administer certain preneed-related activities. It also adds compliance and penalty provisions, requires consumer protections, and sets an effective date with a note about local-funds requirements exemptions.

Who It Affects

• Funeral service professionals and cemetery operators (funeral directors, embalmers, cremationists, funeral establishments, cemetery authorities, preneed and cemetery sales agents, and general managers) who would be licensed, regulated, and subject to background checks, inspections, and new compliance rules.
• Consumers and families who use preneed contracts, cemetery services, or endowment care funds, who would gain strengthened protections, clearer disclosures, refunds, and board oversight to ensure funds and services are available as promised.

Key Provisions

• Establishes the Alabama Preneed Funeral and Cemetery Act of 2021 and transfers regulation of preneed contracts, endowment care, and preneed sales agents from the Department of Insurance to the Alabama Board of Funeral Service.
• Creates new Article 5 (Preneed) and Article 6 (Cemeteries) with amended/renumbered Code sections to regulate cemeteries, preneed contracts, and cemetery endowment/cemetery trust funds, and repeals certain prior provisions.
• Forms the Preneed Funeral and Cemetery Oversight Committee (34-13-171) to oversee preneed sales agents, cemetery authorities, and cemetery services, with appointed members and defined duties.
• Adds licensing categories and requirements including preneed sales agents, cemetery sales agents, and cemetery general managers; requires background checks, licenses, registrations, annual renewals, and related fees.
• Imposes deposits into endowment care funds and cemetery trust funds for preneed contracts and cemetery merchandise/services, with ongoing investment, valuation, reporting, and transfer rules to protect contract purchasers.
• Authorizes the board to inspect, audit, and enforce compliance; allows fines, suspensions, revocations, public hearings, and injunctive relief for violations.
• Provides for refunds, cancellations, and default remedies for preneed contracts, including timelines for refunds and circumstances permitting transfer of obligations.
• Publicly discloses licenses and charges; requires transparent schedules of charges and public accessibility of cemetery and preneed information.
• Authorizes supervision, inspections, and enforcement related to cemetery operations, with penalties for mismanagement, improper investments, or failure to file required reports.
• Effective date: the act becomes law on the first day of the month after approval, with a note that certain provisions are exempt from Amendment 621 local-funds voting requirements.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Funeral Service, Board of