- Primary Sponsor
- Session
- Regular Session 2022
- 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Act, established, adding, amending and renumbering numerous sections, Secs. 27-17A-2, 27-17A-17, 27-17A-45, 27-17A-57 repealed; Secs. 34-13-1, 34-13-2, 34-13-4, 34-13-7, 34-13-9, 34-13-11, 34-13-12, 34-13-20, 34-13-22, 34-13-23, 34-13-26, 34-13-27, 34-13-52, 34-13-53, 34-13-54,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
HB47 creates the Alabama Preneed Funeral and Cemetery Act of 2022, moving regulation of preneed contracts and endowment care from the Department of Insurance to the Alabama Board of Funeral Service and establishing new licensing, trust, and enforcement rules for preneed contracts and cemetery funds.
What This Bill Does
The bill establishes a new framework called the Alabama Preneed Funeral and Cemetery Act of 2022 and transfers regulatory authority for preneed contracts, endowment care funds, and preneed sales agents from the Department of Insurance to the Alabama Board of Funeral Service. It defines new terms, reorganizes the board and its duties, and sets licensing and trust requirements for preneed sellers and agents. It creates mandatory trust deposits for preneed contracts (funeral and cemetery), ongoing reporting, and penalties for violations, including criminal and civil remedies. It also authorizes temporary funding from the Department of Insurance to support the board’s administration and repeals conflicting laws or definitions.
Who It Affects
- Funeral establishments, funeral directors, embalmers, cemetery authorities, and preneed sales agents who must obtain certificates, be registered, or comply with new licensing, background checks, and trust requirements.
- Consumers and families purchasing preneed contracts or cemetery services, who gain new protections, rights to refunds, clearer disclosures, and assurances that funds are held in trust to fund future services.
Key Provisions
- Establishes the Alabama Preneed Funeral and Cemetery Act of 2022 and transfers regulation of endowment care, preneed sales contracts, and preneed sales agent licensing from the Department of Insurance to the Alabama Board of Funeral Service.
- Transfers funds and records related to preneed regulation from the Department of Insurance to the Board; existing license statuses continue under the board; board rules will govern administration.
- restructures the Board of Funeral Service membership and governance, including terms, qualifications, nomination, and removal processes, and expands board authority to regulate preneed contracts and related activities.
- Requires a Certificate of Authority to sell preneed contracts; mandates background checks for applicants; sets registration requirements and renewal processes for preneed sales agents; authorizes branch registrants and temporary certificates under specified rules.
- Imposes trust fund requirements for preneed contracts: funeral contracts require deposits into a funeral merchandise and services trust fund (with specified percentages of purchase prices), and cemetery contracts require deposits into a Cemetery Merchandise and Services Trust Fund with separate funding formulas.
- Outlines trustee powers, investment rules, valuations, and conditions for withdrawing from trusts; requires annual and periodic reporting to trustees and certificate holders; imposes penalties if funds are misused or if trust requirements are not met.
- Defines penalties for violations (criminal charges for improper collection or mismanagement of preneed funds, civil actions for damages, and board-imposed fines and license actions).
- Authorizes a quarterly transfer of up to $300,000 from the Department of Insurance to the Alabama State Funeral Service Fund to fund the act’s administration, with termination of this provision after the 2025 fiscal year unless extended.
- Repeals conflicting laws and definitions (including Section 27-17A-2) and clarifies that the act is exempt from certain constitutional expenditure requirements under Amendment 621.
- Specifies the act becomes effective on the first day of the first month after passage and governor’s approval.
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
