The bill SB131 proposes significant changes to the governance and regulation of funeral services in Alabama, including renaming the Alabama Board of Funeral Service to the Alabama Board of Funeral Services. It introduces the Alabama Preneed Funeral and Cemetery Act of 2023, which transfers the regulation of preneed contracts from the Department of Insurance to the newly renamed board. Key insertions include new definitions related to funeral services, such as "alternative container," "basic services fee," and "endowment care trust fund," while existing terms are updated for clarity. The bill also increases the board's membership from nine to fourteen members, establishing two divisions—funeral and preneed—each with specific responsibilities.

Additionally, the bill outlines the operational framework for preneed contracts, including requirements for documentation, financial management, and consumer protections. It mandates that preneed contracts be filed with the board for approval and specifies penalties for noncompliance. The bill also allows for the temporary transfer of funds from the Department of Insurance to support the board's operations and establishes a Cemetery Merchandise and Services Trust Fund. Overall, SB131 aims to modernize the regulatory framework governing funeral and cemetery services, enhance consumer protections, and ensure the proper management of funds related to preneed contracts, with an effective date of October 1, 2023.

Statutes affected:
Introduced: 34-13-1, 34-13-20, 34-13-21, 34-13-22, 34-13-23, 34-13-27
Engrossed: 34-13-1, 34-13-20, 34-13-21, 34-13-22, 34-13-23, 34-13-27
Enrolled: 34-13-1, 34-13-20, 34-13-21, 34-13-22, 34-13-23, 34-13-27