HB81 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

HB81 would rename the Alabama Board of Funeral Service to the Alabama Board of Funeral Services, create the Alabama Preneed Funeral and Cemetery Act of 2023, and shift regulation of preneed contracts from the Department of Insurance to the board, including new board divisions and trust fund rules.

What This Bill Does

It renames the regulatory board and adds the Alabama Preneed Funeral and Cemetery Act of 2023. It transfers regulation of preneed contracts, endowment care, and licensing of preneed sales agents from the Department of Insurance to the board, and creates two divisions (funeral and preneed) with dedicated professional and consumer members. It establishes two trust funds (Endowment Care Fund and Cemetery Merchandise and Services Trust Fund) with detailed rules for deposits, investments, distributions, audits, and reporting, and allows temporary funding from the Department of Insurance to cover startup costs; the measure notes a constitutional exception regarding local funds.

Who It Affects

• Funeral establishments, embalmers, funeral directors, cemetery authorities, and preneed sales agents would be regulated by the renamed board and governed under the new Preneed Act, including licensing and procedural requirements.
• Preneed contract purchasers and cemetery customers would be affected by the new trust fund requirements, deposit rules, investment governance, refunds/withdrawals procedures, and enhanced consumer protections embedded in the act.

Key Provisions

• Establishes the Alabama Preneed Funeral and Cemetery Act of 2023 and transfers regulation of preneed contracts, endowment care, and preneed licensing from the Department of Insurance to the Alabama Board of Funeral Services, including creating two divisions with specified professional and consumer membership.
• Creates two dedicated trust funds (Endowment Care Fund and Cemetery Merchandise and Services Trust Fund) with detailed funding, deposit, investment, withdrawal, reporting, and oversight rules, and authorizes temporary Department of Insurance funding to support board operations during the transition.

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