SB131 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Vivian Davis FiguresSenator
Democrat
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: SB131 renames and reorganizes Alabama’s funeral oversight, creates the Alabama Preneed Funeral and Cemetery Act of 2023, and shifts regulation of preneed contracts and related funds from the Department of Insurance to the Board of Funeral Services.
What This Bill Does
It renames the existing board to the Alabama Board of Funeral Services and adds Article 5 to create a two-division board (funeral and preneed) with district-based representation. It transfers regulation of preneed contracts, endowment care, and licensure of preneed sales agents from the Department of Insurance to the board, with authority for temporary funding from the Department of Insurance to help operate the act. It establishes new funds and trust structures (Endowment Care Fund, Cemetery Merchandise and Services Trust Fund, Cemetery Endowment Trust, Property Acquisition Fund) with detailed funding, investment, and reporting requirements, and creates enforcement powers and penalties for violations. It also includes transition provisions, a defined effective date, and funding mechanisms to support implementation.

Who It Affects
Funeral establishments, funeral directors, embalmers, cemetery authorities, and preneed sales entities are subject to new board governance, licensing standards, reporting, and enforcement under the Alabama Board of Funeral Services.
Consumers and preneed contract purchasers gain enhanced protections through required trust funding, structured refunds on cancellations, and public access to certain trust information and annual reporting.

Key Provisions
Renames the board as the Alabama Board of Funeral Services and creates Alabama Preneed Funeral and Cemetery Act of 2023, transferring authority over preneed contracts, endowment care, and preneed licenses from the Department of Insurance to the Board.
Creates two board divisions (funeral and preneed) with district-based representation; requires staggered four-year terms; establishes consumer and professional member seats; and sets nomination/appointment processes with district requirements.
Transfers and centralizes regulation of preneed contracts, endowment care, preneed sales agents licensing, and related records from the Department of Insurance to the Board, including transition of records and rules; authorizes temporary funding to aid implementation.
Institutes distinct funds and trusts (Endowment Care Fund, Cemetery Merchandise and Services Trust Fund, Cemetery Endowment Trust, Property Acquisition Fund) with specified funding deposits, investment rules, annual valuations, and reporting to trustees and the board.
Imposes licensure requirements for certificates of authority, background checks (federal/state fingerprint checks), fees, and renewal procedures for preneed sales and related entities; includes branch registrations and training requirements for certificate holders.
Sets rigorous enforcement provisions, including suspension, revocation, fines, emergency actions, and the board’s ability to seek injunctive relief for violations; establishes penalties for fraudulent practices and deception in preneed activities.
Authorizes quarterly funding to the board from the Department of Insurance (starting 2024) to cover administration and operation costs related to the Act, with a sunset/renewal mechanism to extend funding as needed.
Provides for an Oct. 1, 2023 effective date, with transitional naming and branding adjustments and transitional rules for existing licensees and records.

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