The bill also details various procedures that sellers must follow in retaining and depositing payments in trusts and redesignating providers of funeral services. The substitute changes the Endowed Care Cemetery Audit Fund to the Endowed Care Cemetery and Preneed Audit Fund and makes these funds available to the division to implement the provisions of the substitute. The substitute also establishes the Missouri Preneed Fund to support the operations of the state board. The state board is directed to deposit in the Preneed Fund all fees associated with preneed funeral contracts and any funds transferred from the Endowed Care Cemetery and Preneed Audit Fund. Violations of provisions of the substitute related to trust funds and irrevocable contract cancellation waivers are established as a class D felony and violations of all other provisions as a class C misdemeanor.
Supporters say that the current law contains many ambiguities and is subject to misrepresentation.
There are loopholes which allow unscrupulous individuals to take advantage of consumers. The legislation would clean up the industry and make it better for the consumer. Supporters also feel the need to bring the continuing education requirements for embalmers up to standards recommended by the industry and would also like to put Missouri in line with other states in regards to license reciprocation. There was no opposition voiced to the committee. This bill makes numerous changes in the regulation of preneed funeral contracts.