Georgia CommonsHouse · Passed · 2025-2026 Regular Session
HB 1234: State Employees' Assurance Department; assignment of certain group term life insurance benefits to pay for funeral services of a deceased individual who was a member of certain retirement systems; provisions
Last action July 1, 2026 · Effective Date
House Bill 1234 lets the beneficiary of a deceased state employee's group term life insurance benefit assign part of that payout directly to a funeral home to cover funeral costs.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.
In plain language
Georgia's State Employees' Assurance Department manages group term life insurance for members of the Employees' Retirement System of Georgia, the Georgia Legislative Retirement System, and the Georgia Judicial Retirement System. Currently, when a member dies, the insurance benefit goes to the named beneficiary, who is then responsible for paying any funeral home out of pocket or through other arrangements. This bill adds a new Code section (O.C.G.A. § 47-19-11) letting a named beneficiary assign part of that insurance payout directly to a licensed funeral director or embalmer to cover funeral costs. To do this, the beneficiary must fill out a form set by the department's board of directors, attach a notarized copy of their contract with the funeral provider, and include a copy of the deceased member's death certificate. The department will then pay the assigned amount according to the funeral contract, but only up to what is actually owed to the funeral provider.
What the bill does
- Creates a new legal option letting a life insurance beneficiary assign part of the payout straight to a funeral home instead of paying out of pocket first.
- Defines 'funeral services' to cover transportation, embalming, cremation, and burial arrangements for the deceased.
- Requires the beneficiary to submit a notarized funeral contract copy and the deceased's death certificate along with a state-prescribed assignment form.
- Limits the department's payment to funeral providers to only the amount actually owed under the funeral contract, not the full insurance benefit.
- Applies specifically to insurance funds tied to the Employees' Retirement System, Georgia Legislative Retirement System, and Georgia Judicial Retirement System.
Who it affects
This affects beneficiaries of deceased members of Georgia's Employees' Retirement System, Legislative Retirement System, and Judicial Retirement System, along with licensed funeral directors and embalmers who could receive direct payment, and the State Employees' Assurance Department, which administers the process.
Why it matters
Families dealing with a state employee's or retiree's death would gain a way to pay for funeral services directly from the life insurance payout, potentially avoiding upfront costs or delays while waiting for the full benefit to be processed and distributed.
Key provisions
- Section 1 adds new O.C.G.A. § 47-19-11 to Chapter 19 of Title 47, covering the State Employees' Assurance Department.
- Subsection (a) defines 'funeral services' to include transportation, embalming, cremation, and interment of a deceased person's body.
- Subsection (b) allows a named beneficiary to assign group term life insurance benefits from the retired and vested inactive members trust fund or the active members fund to a licensed funeral director or embalmer.
- Subsection (c) requires a written, board-prescribed assignment form, a notarized copy of the funeral services contract, and a copy of the deceased member's death certificate.
- Subsection (d) limits the department's payment to the amount owed under the funeral contract, paid according to the contract's specified method.
- Section 2 repeals any conflicting laws.
From the bill
“Group term life insurance benefit payments due from the retired and vested inactive members trust fund or the active members fund established by subsection (b) of Code Section 47-19-10 to a named beneficiary shall be assignable by such named beneficiary to a person licensed by the State Board of Funeral Service to practice embalming or funeral directing solely in order to pay the cost of funeral services for the deceased individual who granted such right or benefit to such named beneficiary.”
“The State Employees' Assurance Department shall pay or cause to be paid any sum assigned in accordance with this Code section in the method or manner provided for in the contract for funeral services but only to the extent that such sums are owed to the person who completed the assignment.”
Discussed in meetings (14)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Retirement Committee, February 24, 2026
From 1:03:13 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1234 would let beneficiaries assign state retiree life insurance benefits to pay funeral expenses, but not other debts. The sponsor said unpaid funeral bills became a particular problem after COVID, and families could have difficulty arranging services when funeral homes would not accept the insurance. In the sponsor’s example, a $15,000 policy covering a $10,000 funeral would produce separate payments to the funeral home and beneficiaries. Asked about funeral industry support, the sponsor said the funeral home caucus supported the bill. Another member asked whether objections raised when similar legislation previously reached the governor had been resolved. The sponsor said those objections involved a misunderstanding and had been cleared up. The committee voted unanimously to recommend passage.
House Rules Committee, March 2, 2026
From 1:20:31 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1234 would allow a funeral home to accept an assignment of a deceased state retiree's life insurance benefits for funeral expenses only, with any remaining proceeds paid directly to the beneficiary. The sponsor said clarification had been made following Retirement Committee requests. No questions or decision followed.
House floor session, March 4, 2026 (legislative day 27, PM, part 1)
From 2:50:31 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1914
Summary by Georgia Commons: The sponsor said the bill would let beneficiaries of state retiree life insurance assign benefits directly to funeral homes for actual funeral expenses. The sponsor said the program currently prohibits such assignments, despite their availability under many other life insurance policies, and described problems with funeral homes not being paid, particularly during COVID. Addressing earlier concerns about other creditors, the sponsor said assignments would be limited to funeral costs and remaining funds would go to the beneficiary. No questions were asked. The House passed the bill 166-2.
House Rules Committee, March 4, 2026
From 0:35:09 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1881
Summary by Georgia Commons: The committee added HB 1234 to the day's supplemental calendar under modified structured rules without stated opposition. No provisions were discussed.
Senate Retirement Committee, March 10, 2026
From 0:38:30 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1234 would allow beneficiaries of the state retiree life insurance program to assign benefits directly to funeral homes, solely for actual funeral expenses. The sponsor said unpaid funeral bills, especially during COVID, had threatened access to funeral services. Addressing earlier concerns about other creditors claiming benefits, the sponsor said the assignment would be limited to funeral expenses and any remaining benefit would go to the policy's listed beneficiaries. A committee member supported the proposal, citing concerns that nonpayment could reduce funeral services for retirees. After a motion and second, the chair declared the motion carried by voice vote. However, the motion named HB 124 rather than HB 1234, so the transcript does not clearly establish which bill the vote covered.
Senate Rules Committee, March 16, 2026
From 0:33:13 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1234 would allow beneficiaries of the state retiree life insurance program to assign benefits to funeral homes for funeral expenses and related costs. The sponsor said the current plan does not allow this common insurance practice and described unpaid funeral bills, particularly after COVID, as a concern for funeral homes and retirees. The sponsor said the bill's restrictions addressed earlier department concerns about other creditors seeking benefits. There were no questions or vote.
Senate Rules Committee, March 18, 2026
From 0:17:40 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1234 would let retirees assign life insurance benefits to funeral homes to pay funeral expenses. The sponsor said these policies did not currently allow such assignments, unlike most insurance products. There were no substantive questions. The chair later added the bill to the proposed floor calendar, and the committee unanimously approved the ten-measure calendar.
Senate floor session, March 19, 2026 (legislative day 34)
From 4:27:20 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)
Summary by Georgia Commons: The sponsor said the bill would let beneficiaries of group term life insurance through the state employee, legislative and judicial retirement systems assign benefits directly to a funeral home or embalmer. The sponsor explained that the state would pay funeral expenses directly and send any remaining benefit to the beneficiary. No questions or opposition were offered. The Senate passed the bill 46-0.
- Read aloud: House floor session, February 9, 2026 (legislative day 15), 0:24:00
- Read aloud: House floor session, February 10, 2026 (legislative day 16), 0:43:28
- Read aloud: House floor session, February 25, 2026 (legislative day 24), 0:46:06
- Read aloud: Senate floor session, March 6, 2026 (legislative day 28, part 1), 0:40:00
- Read aloud: Senate floor session, March 12, 2026 (legislative day 31), 0:26:53
- Read aloud: Senate floor session, March 16, 2026 (legislative day 32), 0:30:35
Status timeline
- Effective Date
- Act 631
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
Show full history (15 actions)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Darlene Taylor (R, HD-173)
- Lauren McDonald III (R, HD-26)
- Danny Mathis (R, HD-133)
- Mary Ann Santos (D, HD-117)
- Patty Marie Stinson (D, HD-150)
- Rick Williams (R, SD-25)
Votes
- House voteMarch 4, 2026
166 yea, 2 nay (6 not voting, 3 excused)
- Senate voteMarch 19, 2026
46 yea, 0 nay (3 not voting, 5 excused)
Topics
- state employee benefits
- life insurance
- funeral services
- retirement systems
- insurance law