Substitute House Bill No. 5381, also known as Public Act No. 26-57, introduces new regulations aimed at preventing unlawful funeral service practices and establishes a "funeral service guaranty account" to provide restitution to victims of fraudulent activities related to funeral service contracts. The bill defines essential terms such as "funeral service contract," "beneficiary," "purchaser," and "eligible person," and outlines the funding sources for the guaranty account, which will be managed by the Department of Consumer Protection. Starting July 1, 2027, the Commissioner of Consumer Protection will utilize this account to offer restitution to eligible individuals who have incurred losses due to unlawful practices, detailing specific procedures for claims and limitations on restitution amounts.

Furthermore, the bill amends existing laws governing funeral service contracts by repealing certain provisions and instituting new requirements. These include mandates for written contracts that specify the names and contact information of beneficiaries and purchasers, a detailed list of services, payment information, and an acknowledgment of deposit by the escrow agent. It also requires that purchasers receive a notice from the escrow agent within twenty-five days of their deposit and a signed statement confirming receipt of a fact sheet on funeral service contracts prior to signing. Additionally, the bill establishes a working group to enhance consumer protections for purchasers of these contracts, with specific guidelines for membership, reporting, and operational timelines.