Amid allegations that Planned Parenthood was selling aborted baby parts to medical researchers, Indiana Gov. Mike Pence signed a bill into law on Monday that provides rules on the proper disposal of aborted remains.

Pence signed Senate Bill 329, which gives the pregnant woman the right to determine the final disposition of the remains of her aborted baby.

The new law also requires the Indiana Department of Health to adopt rules on the disposal of aborted remains by health-care facilities, including abortion clinics.

"This law creates rules for how to appropriately dispose of aborted foetal remains," said bill author State Senator Liz Brown. "Establishing standards brings respect to the woman, abortion staff and the aborted child. These standards require the facility to dispose of the baby's remains properly, unless the woman chooses to bury her baby. Hoosiers want their government to ensure the bodies of aborted babies are treated with dignity and this law accomplishes that."

Beginning January next year, a pregnant woman will have to inform the abortion clinic or healthcare facility in writing and on a form issued by the state about her decision on the final disposition of the aborted foetus before the latter is discharged from the facility.

If the pregnant woman is a minor, the abortion clinic should obtain a parental consent in the disposition of the aborted remains unless she has a waiver of parental consent. This applies to aborted foetus with a gestational age of at least 20 weeks.

For foetus with less than 20 weeks of age, the pregnant woman may decide to cremate or inter it.

Last month, Pence ordered the Indiana Health Department to investigate Planned Parenthood facilities in the state to ensure compliance with the law after the videos of the purported sale of foetal remains surfaced.

Betty Cockrum, president and CEO of Planned Parenthood of Indiana and Kentucky, said the facility does not participate in tissue donation programme.

"And of course, we hold compliance with all applicable federal and state laws and regulations as an imperative. Tissue donation is a standard practice in the medical community in the interest of research to advance the practice of medicine," she said.