HB212 Alabama 2023 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2023

Title

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.

Summary

HB212 renames the Alabama Board of Funeral Service to the Alabama Board of Funeral Services, creates the Alabama Preneed Funeral and Cemetery Act of 2023, and moves regulation of preneed contracts and related funds from the Department of Insurance to the board.

What This Bill Does

It establishes a new legal framework for preneed contracts and cemetery trusts, transfers regulatory authority from the Department of Insurance to the board, and sets up a four-division structure (General Provisions, Certificate of Authority, Funeral Merchandise and Services Trust Fund, and Cemetery Merchandise and Services Trust Fund) to oversee preneed contracts, endowment care, and cemetery merchandise. It creates licensing, background-check, and registration requirements for preneed sales agents and certificate holders; mandates funds deposited in trust for preneed and cemetery programs; requires regular reporting and audits; provides enforcement tools and penalties; and creates funding mechanisms to support the board’s operations, including a temporary transfer of DoI funds and an annual state fund allocation, with a sunset in 2027. It also adds consumer protections, including a statewide preneed contract database and refund/cancellation rules for preneed contracts.

Who It Affects

• Funeral establishments, embalmers, funeral directors, cemetery authorities, and preneed sales agents will face new licensing, registration, and regulatory oversight by the Alabama Board of Funeral Services, along with trust-fund and reporting requirements.
• Consumers and families who purchase preneed contracts or endowment care will gain protections such as mandatory trust funding, defined cancellation and refund rights, and access to a statewide preneed contract database (with opt-out options).

Key Provisions

• Renames the Alabama Board of Funeral Service to the Alabama Board of Funeral Services and creates the Alabama Preneed Funeral and Cemetery Act of 2023.
• Transfers regulation of endowment care, preneed contracts, and licensing of preneed sales agents from the Department of Insurance to the Alabama Board of Funeral Services.
• Creates four divisions under Article 5 of Chapter 13, Title 34: General Provisions; Certificate of Authority; Funeral Merchandise and Services Trust Fund; Cemetery Merchandise and Services Trust Fund.
• Establishes a Certificate of Authority regime for preneed contracts requiring licensure, background checks, and annual renewals for preneed sales agents and certificate holders.
• Authorizes temporary transfer of Department of Insurance funds to the board to defray costs of administering the Alabama Preneed Funeral and Cemetery Act of 2023, and creates the Alabama Board of Funeral Services Fund to support board operations.
• Sets up Endowment Care Fund and Cemetery endowment/merchandise trust funds with specified deposit, investment, valuation, and distribution rules, plus trustee duties and annual reporting.
• Requires a statewide preneed contract database with privacy protections and an opt-out option for consumers.
• Adds penalties and enforcement tools for violations, including fines, license actions, and potential removal of board members, with enforcement authority vested in the board and state courts.

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

Subjects

Alabama Preneed Funeral and Cemetery Act of 2023