Alabama House Bill HB81

Alabama 2023 Regular Session

• Introduced: 3/7/23
• Refer: 3/7/23

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 impact of HB 81 on Alabama laws is significant as it facilitates a reorganization of how funeral services are regulated. By consolidating responsibilities under the Alabama Board of Funeral Services, the bill aims to improve the efficiency of oversight concerning preneed sales contracts and ensure better consumer protection. The legislation includes provisions for managing financial aspects associated with preneed trusts, which are essential for safeguarding the interests of consumers who enter into such contracts.

Summary

House Bill 81 aims to amend existing regulations concerning funeral services in Alabama by establishing the Alabama Preneed Funeral and Cemetery Act of 2023. This legislation intends to transfer the regulation of preneed contracts from the Department of Insurance to the Alabama Board of Funeral Services. This move is designed to streamline the management of preneed contracts and related funeral services, thereby enhancing oversight and ensuring compliance with state laws. The bill also includes provisions to rename the existing board to reflect these new responsibilities and add clarity to its regulatory framework.

Contention

Despite its positive framework, the bill has faced criticism from various stakeholders. Concerns have been raised regarding the potential for increased costs associated with the transition of regulatory authority, particularly the financial implications for the local governmental entities involved. Opponents argue that the lack of approval requirements for local funding increases could lead to unanticipated financial burdens. Furthermore, there are discussions regarding how this regulatory shift might affect smaller funeral service providers and their ability to remain competitive in the market.