HB87 Alabama 2014 Session
Bill Summary
Under existing law, the Alabama Preneed Funeral and Cemetery Act provides for the regulation of the sale of preneed funeral or cemetery merchandise and services
This bill would strengthen consumer protection and eliminate ambiguity in the requirements for the proper handling of preneed and cemetery endowment care funds
This bill would provide further for the ability of the Commissioner of Insurance to deter violations and ensure compliance with the act
This bill would grant the commissioner jurisdiction over any person unlawfully writing, or suspected of unlawfully writing, preneed contracts and would clarify the penalties for violations
This bill would further clarify the requirement that any person selling funeral or cemetery merchandise or services on a preneed basis obtain a certificate of authority from the Department of Insurance
This bill would specify which violations related to preneed sales, trust deposits, and collections are felonies
This bill would increase, from a Class B to a Class A misdemeanor, all non-felony violations of the act
This bill would authorize the commissioner to bring a civil action against any person or company violating the act and increase the recovery of funds on behalf of consumers
This bill would clarify that a person who only sells preneed burial rights is not required to register as a preneed sales agent
This bill would revise the annual application and renewal dates for persons holding preneed certificates of authority and would waive the requirement of filing annual financial statements under certain circumstances and upon written request to the commissioner
This bill would require each certificate holder to file with the commissioner a quarterly report of all preneed contract and trust activity
This bill would clarify the amount of a bond used as an alternative to a trusting requirement
This bill would authorize the commissioner to use funds received from any source for purposes of enforcement
This bill would clarify that funds received for funeral and cemetery merchandise placed in storage prior to death need not be placed in trust
This bill would require certificate holders to satisfy additional requirements and to file with the commissioner a quarterly report of all preneed contract trust activity
This bill would subject endowment cemetery authorities to the act
This bill would require any person receiving funds from the sale of a preneed contract to contribute to a trust fund, life insurance contract, or annuity contract
This bill would require that preneed cemetery merchandise and services funds remain in trust until cancellation or fulfillment of a preneed contract
This bill would prohibit a person serving on a cemetery board of trustees from also serving as the trustee of an endowment care fund, with certain specified exceptions, and would require bonds on trustees, with certain specified exceptions
This bill would define net income for purposes of an endowment care fund
Amendment 621 of the Constitution of Alabama of 1901 prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of Amendment 621. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in Amendment 621
Relating to the Alabama Preneed Funeral and Cemetery Act; to amend Sections 27-17A-2, 27-17A-3, 27-17A-10, 27-17A-11, 27-17A-12, 27-17A-13, 27-17A-14, 27-17A-18, 27-17A-22, 27-17A-23, 27-17A-25, 27-17A-31, 27-17A-32, 27-17A-34, 27-17A-40, 27-17A-42, 27-17A-44, 27-17A-47, 27-17A-50, and 27-17A-55, Code of Alabama 1975, and to add Sections 27-17A-11.1 and 27-17A-57 to the Code of Alabama 1975, to strengthen consumer protection and eliminate ambiguity in the requirements for the proper handling of preneed and cemetery endowment care funds; to provide further for the ability of the Commissioner of Insurance to deter violations and ensure compliance with the act; to grant the commissioner jurisdiction over any person unlawfully writing, or suspected of unlawfully writing, preneed contracts and to clarify the penalties for violations; to further clarify the requirement that any person selling funeral or cemetery merchandise or services on a preneed basis obtain a certificate of authority from the Department of Insurance; to specify which violations related to preneed sales, trust deposits, and collections are felonies; to increase, from a Class B to a Class A misdemeanor, all non-felony violations of the act; to authorize the commissioner to bring a civil action against any person or company violating the act and increase the recovery of funds on behalf of consumers; to clarify that a person who only sells preneed burial rights is not required to register as a preneed sales agent; to revise the annual application and renewal dates for persons holding preneed certificates of authority and to waive the requirement of filing annual financial statements under certain circumstances and upon written request to the commissioner; to require each certificate holder to file with the commissioner a quarterly report of all preneed contract and trust activity; to clarify the amount of a bond used as an alternative to a trusting requirement; to authorize the commissioner to use funds received from any source for purposes of enforcement; to clarify that funds received for funeral and cemetery merchandise placed in storage prior to death need not be placed in trust; to require certificate holders to satisfy additional requirements and to file with the commissioner a quarterly report of all preneed contract trust activity; to subject endowment cemetery authorities to the act; to require any person receiving funds from the sale of a preneed contract to contribute to a trust fund, life insurance contract, or annuity contract; to require that preneed cemetery merchandise and services funds remain in trust until cancellation or fulfillment of a preneed contract; to prohibit a person serving on a cemetery board of trustees from also serving as the trustee of an endowment care fund, with certain specified exceptions, and to require bonds on trustees, with certain specified exceptions; to define net income for purposes of an endowment care fund; and in connection therewith to have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901.
Bill Actions
Action Date | Chamber | Action |
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February 20, 2014 | S | Insurance first Amendment Offered |
February 20, 2014 | S | Insurance second Amendment Offered |
February 20, 2014 | S | Read for the first time and referred to the Senate committee on Judiciary |
February 20, 2014 | H | Engrossed |
February 20, 2014 | H | Cosponsors Added |
February 20, 2014 | H | Motion to Read a Third Time and Pass adopted Roll Call 374 |
February 20, 2014 | H | Motion to Adopt adopted Roll Call 373 |
February 20, 2014 | H | Brown Amendment Offered |
February 20, 2014 | H | Motion to Adopt adopted Roll Call 372 |
February 20, 2014 | H | Insurance Amendment #2 Offered |
February 20, 2014 | H | Brown motion to Table adopted Roll Call 371 |
February 20, 2014 | H | Insurance Amendment #1 Offered |
February 20, 2014 | H | Motion to Adopt adopted Roll Call 370 |
February 20, 2014 | H | Insurance first Substitute Offered |
February 20, 2014 | H | Third Reading Passed |
January 14, 2014 | H | Read for the first time and referred to the House of Representatives committee on Insurance |
February 6, 2014 | H | Read for the second time and placed on the calendar with 1 substitute and 2 amendments |
Bill Text
Bill Votes
Bill Documents
Type | Link |
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Bill Text | HB87 Alabama 2014 Session - Engrossed |
Bill Text | HB87 Alabama 2014 Session - Introduced |