Alabama House Bill HB212

Alabama 2023 Regular Session

• Introduced: 3/23/23
• Refer: 3/23/23
• Report Pass: 4/5/23

Caption

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.

Impact

The bill will significantly impact state laws governing the funeral service industry by enhancing transparency and accountability in the handling of preneed contracts. With the Alabama Board of Funeral Services taking over the regulatory responsibilities, there will be clearer governance and oversight of how preneed contracts are managed. This change is expected to simplify the process for consumers and contractors alike by having a central authority responsible for regulations that directly affect them.

Summary

House Bill 212, introduced in Alabama, seeks to amend existing laws related to the regulation of funeral services by transferring the oversight of preneed contracts from the Department of Insurance to the Alabama Board of Funeral Services. This bill aims to streamline the regulation of funeral establishments and related services by updating provisions regarding the licensing of funeral directors, preneed sales agents, and the management of preneed contracts and funds. It also includes provisions to establish the Alabama Preneed Funeral and Cemetery Act of 2023.

Contention

Notable points of contention surrounding HB212 include concerns about potential costs to local governments due to the regulation changes, as the bill will require local funds for implementation. Critics fear that this could lead to increased fees for services as funeral establishments adapt to the new regulatory framework. Supporters argue that the bill will ultimately protect consumers by ensuring that preneed contracts are managed in a trustworthy manner, but the financial implications present a significant concern that may spark further discussions among legislators.